Tesla Shock Means Global Gasoline Demand Has All But Peaked

After fueling the 20 th century automobile culture that reshaped cities and defined modern life, gasoline has had its day.

The International Energy Agency forecasts that global gasoline intake has all but peaked as more efficient cars and the advent of electric vehicles from new players such as Tesla Motors Inc. halt demand growth in the next 25 years. That change will have profound outcomes for the oil-refining industry because gasoline accounts for one in four barrels consumed worldwide.

Electric automobiles are happening, IEA Executive Director Fatih Birol said in an interview in London, adding that their number will rise from little more than 1 million last year to more than 150 million by 2040.

The cresting of gasoline demand shows how rapidly the oil scenery is changing, casting a shadow over an industry that usually forecasts decades of growth ahead. Royal Dutch Shell Plc, the worlds second-biggest energy company by market value, shocked rivals this month when a senior executive said overall oil demand could peak in as little as five years.

The IEA doesnt share Shells pessimism. While the agency foresees a gasoline peak, it still forecasts overall oil demand growing for several decades because of higher intake of diesel, fuel oil and jet fuel by the shipping, trucking, aviation and petrochemical industries.

For Philip Verleger, president of the consultant PKVerleger LLC in Colorado and a veteran oil-market analyst, the IEAs outlook is one of the most optimistic outcomes for the global industry.

Refiners across the globe can only hope that this forecast turns out to be right — because all the shows are today that consumption is going to begin falling not in 2030, but probably in 2020, told Verleger. Its the best news a dying patient is to be able to get.

The projections are part of the analysis the Paris-based IEA did for its World Energy Outlook 2016 flagship report. The agency forecast that gasoline demand will fell to 22.8 million barrels a day by 2020 from 23 million barrels a day last year. By 2030, consumption will rebound slightly, reaching a peak of 23.1 million barrels a day, before falling again toward 2040.

The forecast is more pessimistic than the one released a year ago, when the IEA ensure robust demand growth from now until 2030.

Gasoline has been the worlds selection to power automobiles. From the 1950 s onward, when Henry Fords dream that every middle-class American could own a car became reality, gas station jump up next to drive-through restaurants and strip mall and transformed the landscape of America and economies across the globe.

Now, however, vehicle companies — most obviously Tesla, but also incumbents such as General Motor Co ., BMW AG and Nissan Motor Co. — are putting their money, and reputations, behind electric vehicles. With technology improving — especially for batteries — prices are falling. Tax breaks, particularly in China, are helping sales.

Global gasoline demand grew by virtually 20 percent between 1990 and 2015 despite competition from diesel in Europe, where the ga benefited from tax breaks. In the next 25 years, gasoline intake will fell 0.2 percent, according to the new IEA computations. While the number of passenger vehicles will double to 2 billion by 2040, the amount of oil we use for autoes will be lower than today, Birol said.

The biggest victim is likely to be refiners, which have spent billions of dollars over the last two decades to maximize gasoline output at the expense of other fuels. Birol said the changes in fuel-demand growth over the next 25 years will have major implications for the industry, which are likely are gonna have to re-tool their plants.

Diesel Ascendant

Demand for gasoline is likely to be much more affected than heavier gasolines — the refineries configuration will be affected, ” he said.

As gasoline demand sputters in advanced economies, middle distillates, gasolines used to power trucks and planes, will continue to see growth in the next decade as economies expand. And new international rules will require that the heavy, dirty fuels currently used for marine transit be replaced with lower-sulfur diesel in 2020.

Refiners would be wise to target distillates such as diesel in lieu of gasoline as they grapple with fading intake, told Michael Wojciechowski, vice president of Americas oil and refining marketplaces research at Wood Mackenzie Ltd. in Houston.

“Diesel seems to be almost like a utility fuel going forward, Wojciechowski told. Its got its ability to meet a lot of strategic objectives for refiners.

Read more: www.bloomberg.com

GM is recollecting 4 million vehicles for air purses defect

Chevrolet and Buick automobiles are among those recollected

Image: Photo by Scott Olson/ Getty Images

General Motors Co. is recollecting more than 4 million vehicles, most of them in the U.S ., to fix an air pouch software defect that has been linked to one death.

The vehicles involved in the recall are all from the 2014 -2 017 model years and include models from Buick, Chevrolet, GMC and Cadillac.

The company is recalling 4.28 million vehicles worldwide, including 3.6 million in the U.S.

GM said Friday that in rare cases, the car’s sensing and diagnostic module a tiny computer that senses what the vehicle is doing and controls air pouch deployment can go into test mode.

If that happens, the front air containers won’t inflate in a crash and the seat belt pre-tensioners may not tighten up around occupants to help prevent injuries.

GM says the defect is linked to at least one death and three injuries.

GM tells the defect is linked to at the least one death and three injuries.

The company learned of their own problems in May when a 2014 Chevrolet Silverado crashed and its air purses didn’t deploy. GM advised Delphi Corp ., the supplier that attained the module. The two companies tested the modules and decided to recall the vehicles last week.

The National Highway Traffic Safety Administration announced the remember Friday. General Motors Co. will notify customers and update the software for free. GM says dealers already have access to the software update so they should be able to repair the vehicles quickly.

The recall involves 3.6 million vehicles. They are 😛 TAGEND

2014-2016 Buick LaCrosse, Chevrolet SS, Chevrolet Spark EV

2014-2017 Buick Encore, GMC Sierra 1500, Chevrolet Corvette, Chevrolet Trax, Chevrolet Caprice police car and Chevrolet Silverado 1500

2015-2017 Chevrolet Tahoe, Chervrolet Suburban, Chevrolet Silverado HD, GMC Yukon, GMC Yukon XL, GMC Sierra HD, Cadillac Escalade and Cadillac Escalade ESV

Apple delivers its most direct clue that it may be working on a self-driving auto

Image: AP Photo/Paul Sancya

The Apple rumormongers simply won’t let talk of an Apple Car die.

Just months after reports indicated that there was, in fact, no Apple Car on the way, now a new document is sure to stoke the fires of Apple fans’ hopes that the company’s logo will grace an automobile in coming years.

A letter Apple sent to the U.S. National Highway Traffic Safety Administration (NHTSA) in November, surfaced by Venturebeat on Friday, includes passages that indicate the company is interested in being a part of the autonomous automobile movement.

Addressing the NHTSA’s proposed Federal Automated Vehicles Policy, Steve Kenner, Apples director of product integrity, wrote, “Apple uses machine learning to make its products and services smarter, more intuitive, and more personal. The company is investing heavily in the study of machine learning and automation, and is excited about the potential of automated systems in many areas, including transportation.”

That last line is the money phrase: including transportation.

Although a number of reports have told of a secret Apple Car project and automobile industry hires by the company that may or may not have to do with the creation of an Apple car, this is the most direct phrasing from the company indicating an interest beyond dashboard systems like Apple’s CarPlay.

“[Apple] is excited about the potential of automated systems in many areas, including transportation.”

Later in the letter, Apple makes a number of comments related to automated car safety, innovation and rule making, areas that would seem to go far beyond CarPlay. Sure, Apple has a stake in the automated car industry even it it doesn’t make its own vehicle, but such a detailed document, addressing such specific areas makes it difficult to believe that Apple doesn’t at least have some ambitions of one day rolling out its own vehicle.

“Apple commends the Department of Transportation and NHTSA for facilitating a national conversation about the safe and ethical development and deployment of automated vehicles,” the letter continues.

“Apple looks forward to collaborating with NHTSA and other stakeholders so that the significant societal benefits of automated vehicles can be realized safely, responsibly, and expeditiously.”

In a statement to the Financial Times, addressing the letter, an Apple spokesperson doubled down on the car talk.

“We’ve provided comments to NHTSA because Apple is investing heavily in machine learning and autonomous systems,” Apple’s spokesperson told the paper on Saturday. “There are many potential applications for these technologies, including the future of transportation, so we want to work with NHTSA to help define the best practices for the industry.”

If these combined statements aren’t about a future Apple Car, Apple sure is working hard to sound like it’s working on one.

As Apple completes work on its new campus with its 20,000-car, solar panel-laden car garage, it’s possible that an Apple prototype electric vehicle might already be parked there.

So now, let the Apple Car rumors begin anew as we count the months and years Tesla enjoys before having to compete with Apple or, maybe, being acquired by the most valuable tech company on the planet.

BONUS: Jaguar could become Tesla’s closest competitor with this fancy, all-electric SUV

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Michigan’s roads could soon be filled with self-driving Chevy Bolts

Image: General Motor

In light of the recent passageway of the most lax autonomous vehicle statutes in the U.S ., the streets of Michigan will likely soon be the among the most common places to test self-driving cars.

First up: GM, which announced that it will instantly begin testing its line of autonomous Chevy Bolt EVs on the state’s public roads.

Testing on the private roads in GMs Technical Center campus in Warren was already underway before the passage of the legislation, which is known as the SAVE Act. Now that the automaker has the go-ahead from the nation, the operation will expand to include roadways around metro Detroit in the coming months. In those areas, trials will focus on the autonomous tech’s development in winter weather conditions.

Revolutionizing transportation for our clients while improving safety on roads is the goal of our autonomous vehicle technology, and todays proclamation get us one step closer to making this vision a reality, told General Motors Chairman and CEO Mary Barra in the official statement. Our autonomous technology will be dependable and safe, as customers have come to expect from any of our vehicles.

GM had announced the formation of an autonomous vehicle engineering squad back in January, along with its $500 million investment in Lyft. GM’s acquisition of Cruise Automation in March pushed the project ahead even further.

The automaker has been testing the self-driving Bolts on public roads in San Francisco and Scottsdale since June, with more than 40 autonomous vehicles logging miles in the two cities.

Michigan’s self-driving statutes have one very concrete caveat: Merely technology produced by automobile producers are allowable.

That means that if Uber, for example, were explore a pilot testing program, it would run into some of the same issues it recently faced in San Francisco. There, the state challenged the company’s legal right to have its tech on public streets without “re going through” the proper DMV channels. Notably, GM Cruise LLC is one of the 20 entities to which the California DMV has issued a permit.

With Google set up in the country and other automakers rearing to hone their own self-driving tech, Michigan could once again become the center of innovation in the automotive world. This time around, the automation steering the industry forward won’t just be on the assembly lines it’ll be right out on the streets.

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First Shelby Cobra sells for record-setting $13.75 million

There’s a new reigning ruler for the most expensive American car ever sold at auction. And it’s a modified British sports car with a Ford V8 for the purposes of the hood. Run figure.

The roundish blue shape you see above is the 1962 Shelby 260 Cobra “CSX 2000” a.k.a the first Cobra from lionized car designer Carroll Shelby. It only fetched $13.75 million ($ 12.5 -million bid plus fees) this weekend. That induces it the most expensive American car ever sold at auction.

Though Shelby didn’t know it at the time, this little mod-job would go on to change American sports cars eternally. Now it’s altered the trajectory of American-car values forever, too. Talk about influence.

When this Cobra was first constructed, to make it seem like he’d built more than one, Shelby and his crew repainted it before handing it over to a automobile magazine for review. As a result, the unrestored body athletics dents and chips that disclose different paint colourings beneath the final blue paint job.

Onlookers might glimpse at what appears to be a well-worn sports car and wonder why it’s worth $13.75 million. Its seems don’t impart the car’s significance, though. Without this automobile, and the racing victory of its successors, Shelby would never have been given the chance to give his know-how to the automotive industry.

1962 Shelby 260 Cobra “CSX 2000 “

Image: RM Sotheby’s

That means no GT350 and GT500 Mustangs. Likely, in turn, that entails no vehicles like the Corvette Grand Sport or Camaro Z2 8 from Chevrolet to compete with Ford. Heck, the American muscle wars started in the 1960 s that continues to this day may not have been erupted at all without this car.

So, is it worth $13.75 million? Yeah, I’d say so.

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