COP28 climate action plans discussed at UAE Majlis

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NewBase Energy News 07 November 2023 No. 1671 Senior Editor Eng. Khaled Al Awadi
NewBase for discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
'COP28 is a huge moment for the world': Economic
Secretary to UK Treasury
(WAM) – Andrew Griffith, Economic Secretary to the UK Treasury, said, the UAE and the United
Kingdom have always enjoyed a long history of close cooperation, noting that “many very strong
UK firms have been based here since the very founding of the Emirates.”
In statements to the Emirates News Agency (WAM), Griffith said, “We're working in lots of the same
areas. The COP28 is a huge moment for the world and for the UAE. The whole world's eyes will be
here," adding that sustainable finance will be central to the global event. He in this regard hailed the
UAE's COP28 Presidency and Leadership.
He noted that the UAE and UK have lots of similarities.
“They're both very open economies. The UAE, just like the
United Kingdom, relies upon, you know, a much broader
set of markets and opportunities just in its own domestic
economy. So they're both open, both very internationally
looking.”
Highlighting the UAE's economic diversification efforts,
Griffith said: “The UAE itself has significantly diversified its
ww.linkedin.com/in/khaled-al-awadi-80201019/

sources of revenue. So I think in many cases, you know, you're a great example of what the world
needs to emulate… I wish the organisers of the COP 28 all the best success.”
He stressed that the world is facing challenges of geopolitics: “How do we overcome those
challenges? By working more closely together, having good quality regulatory standards, making
sure that we explore new opportunities, areas that are really fast-growing, like fintech, artificial
intelligence, and allowing the free flow of capital around the world.”
Griffith added that the UK itself has been a leader in the past in "sustainable finance and as the
world comes together, one of the important opportunities is to try and reach common standards…
It could be common international sustainability standards framework so that when companies and
firms have to disclose what their impact on the environment is, we do so on the basis of a common
standard.”
COP28 Changemakers Majlis brings together climate experts
The first in a series of eight national Majlis sessions being held in the run-up to COP28 began today
at the Oberoi Resort in Ajman, in a session organised by the UAE Ministry of Climate Change and
Environment and supported by the Salama Bint Hamdan Al Nahyan Foundation.
With COP28 now just 24 days away, the event represented the chance to explore the strong
connection between local government – municipalities – and their vital work in enabling climate
change action.

UAE municipalities are at the vanguard of efforts to mitigate climate change and create sustainable
cities. They employ a multifaceted human-centric approach including sustainable urban planning,
green building standards, renewable energy adoption and public transportation improvements, for
example.
They also hold responsibility for waste management, water conservation, green spaces, public
awareness campaigns and international partnerships. These initiatives collectively contribute to
reducing carbon emissions and promoting a more sustainable, liveable urban environment in the
UAE.
The Ajman event focused on discussion around how municipalities can take action to further the
UAE’s climate goals, under the title: “Municipal Climate Action to Embed Sustainability.”
Invited attendees at the inaugural event included UAE government entities and municipal leaders,
youth, representatives from national universities, business leaders, policy leaders, , funders,
inventors, climate experts and NGOs.
This exciting new government-led initiative demonstrates the UAE’s model of present, open
leadership as an approach to problem solving, and underlines the goals of COP28, to be an inclusive
platform for strong, collaborative and collective action.
The Changemakers Majlis concept is firmly rooted in UAE tradition, paying homage to the
widespread culture of majlises as a discussion forum, as they remain a common way to gather the
community to discuss and find solutions to pressing challenges.
The session was chaired by UAE Minister of Climate Change and Environment, Mariam bint
Mohammed Almheiri, who said: “Municipalities hold the power to create real tangible change in
cities, that helps us mitigate some of the most noticeable effects of climate change – such as waste
management, public transport and water conservation. But ahead of COP28, we ensure that our
municipalities are working together, sharing knowledge and creating synergies and partnerships for
the greater good of the nation.
“Urban initiatives like afforestation efforts and creating walkable cities are essential for addressing
environmental and sustainability challenges in rapidly urbanising regions like the UAE. Such
initiatives enhance citizens’ quality of life, reduce environmental impacts, and promote a more
sustainable, liveable urban environment.
“Today is a chance for us to discuss how to unify municipal action in addressing environmental
issues and implementing global agreements.”
She updated the attendees on the progress of the UAE’s plan to plant 100 million mangrove trees
by 2030, and spotlighted municipal-level climate mitigation efforts, from plans to create more
walkable cities to waste-to-energy projects across the emirates which will help provide sustainable
energy for the future.
She also discussed growing plans for a circular economy, and how the UAE is working towards
achieving integrated waste management through innovative new waste policies and legislation.
The Majlis was attended by several leaders from the Ministry of Climate Change and Environment,
namely Mohammed Saeed Al Nuaimi, Acting Undersecretary, Eng Mohammed Mousa Alameeri,
Assistant Undersecretary of the Food Diversity Sector, Dr. Mohammed Salman Al Hammadi,
Assistant Undersecretary for Biodiversity and Marine Life Sector, Eng. Othaibah Saeed AlQaydi,
Acting Assistant Undersecretary of Sustainable Communities Sector, and Shaikha Ahmed Salem
Al Ali, Acting Assistant Undersecretary for the Regions Sector.

HAbdulrahman Mohammed Al Nuaimi, Director General of Ajman Municipality and Planning
Department, Eng Mohamed Saif Al-Afkham, Director General of Fujairah Municipality, Dr. Sulaiman
Abdallah Bin Sarhan Al Zaabi, Chairman of Municipal Affairs Department in Sharjah, and Dr. Salem
Khalfan Al Kaabi, Director General of The Center of Waste Management - Abu Dhabi, were among
the attendees too.
During the Majlis, Abdulrahman Mohammed Al Nuaimi, Director General of Ajman Municipality and
Planning Department, reviewed Ajman’s initiatives, its projects and strategic plans, and the launch
of a wastewater treatment plant, as well as leveraging its products in fertilizers and irrigation.
Eng Mohamed Saif Al-Afkham, Director General of Fujairah Municipality, touched on the vital role
of Fujairah in municipal affairs, highlighting some of the projects developed in partnership with
ADNOC. These projects involve injecting CO2 captured from the air, dissolved in seawater, and
then injected into peridotite formations deep underground, where it will mineralize. This process is
carried out using new tech solutions, and will have financial returns as well as address
environmental aspects.
Dr. Sulaiman Abdallah Bin Sarhan Al Zaabi, Chairman of the Municipal Affairs Department in
Sharjah, discussed the emirate’s efforts and the projects it adopts, in addition efforts in afforestation
and increasing green spaces through planting external roads, gardens, and local streets in
residential neighbourhoods. He also underscored the importance of such steps in reducing carbon
emissions, and improving the quality of life for the community.
Dr. Salem Khalfan Al Kaabi, Director General of The Center of Waste Management - Abu Dhabi,
spoke about specific projects related to infrastructure and urban planning in Abu Dhabi 2040. He
also talked about reviewing and re-studying this planning in line with the UAE’s net-zero targets,
and Abu Dhabi’s vision regarding environmental and municipal affairs.
Private sector companies participating in the Majlis addressed several topics, including the life cycle
of products and leveraging that to create an economic value. This greatly contributes to spotlighting
the importance of such transformation in supporting the UAE Net Zero by 2050 strategic initiative.
The highly focused session posed four questions to attendees, to help drive the conversation and
climate action.
They were asked to consider what policies, programs and initiatives are in place at municipal level
that address climate change and advance sustainability.
Next, the gathering focused attention on the challenges that exist at municipal level for advancing
Net Zero and sustainability - and what action they need to take to overcome these challenges?
The third question asked what attendees might commit to today to support deeper cross-sector
partnerships, that will advance climate mitigation and sustainability across UAE cities, and the final
discussion revolved around answering what actions are needed to support municipalities’ outcomes
toward Net Zero.
The COP28 UAE Changemakers Majlis series is a high level, aspirational, action-oriented
conversation focusing on realising the UAE’s bold ambitions of advancing innovative climate
solutions.
The Majlis will take place in every Emirate over the coming weeks, as part of the COP28 Presidency
team’s efforts to ensure inclusivity at the crucial talks, which begin in just 24 days.
Hosting a curated group of influential local leaders, the events represent the chance to discuss
specific climate change challenges, and co-design clear, actionable solutions.

The objective of the UAE Changemakers Majlis stream is to bring together local climate leaders and
innovators, in a way that creates new pathways for them to discuss climate, sustainability, and Net
Zero opportunities, challenges, and partnerships, while highlighting the role they each play in
advancing domestic climate goals leading up to, during, and after COP28.
COP28 Presidency and operationalisation of Loss and Damage Fund
COP28 President Dr. Sultan Al Jaber heralded the successful conclusion of a vital United Nations
Framework Convention on Climate Change (UNFCCC) meeting on the implementation of the Loss
and Damage Fund, held in Abu Dhabi, as a vital step towards a successful outcome on the road to
COP28.
Once up and running the fund would provide particularly vulnerable countries, many at extreme risk
from climate change, with funding to support recovery from the impacts of climate change.
Dr. Al Jaber said: “As we have shown in Abu Dhabi, Multilateralism works.
The Transitional Committee has broken deadlocks and and found common ground to deliverclear
recommendations- Parties must seal the deal in Dubai and fulfill our obligations on the Loss and
Damage Fund.”
The recommendation, if adopted by consensus at COP28 has the potential to impact “billions of
people, lives and livelihoods who are vulnerable to the effects of climate change.” They, Dr. Al Jaber
said, “depend upon the adoption of this recommended approach at COP28.”
The Fifth Meeting of the Transitional Committee on Loss and Damage, held on 3 and 4 November
in Abu Dhabi, has produced recommendations including the provision of much-needed, grant-based
support to countries particularly impacted by climate and loss. At COP28 Parties will now be
responsible for operationalizing the fund.

“I welcome the agreement reached in Abu Dhabi by the Transitional Committee,” Dr. Al Jaber said
in a statement. “This clear and strong recommendation to operationalize the Loss and Damage
Fund and funding arrangements, paves the way for agreement at COP28.”
The agreement to establish a Loss and Damage fund was heralded as a key breakthrough at
COP27 held in Sharm El Sheikh.
“There is still more work to do but I would like to thank the Transitional Committee, including co-
chairs Outi Honkatukia of Finland and Richard Sherman of South Africa, for all their long days in
getting to this stage. We have sent a clear message, unity won the day,” said Dr. Al Jaber.
The COP28 Presidency hosted the meeting after the previous session ended without conclusion.
The Transitional Committee was established after COP27 to make recommendations for
consideration and adoption at COP28, which is starting in 25 days, in Dubai. The UNFCCC
managed the Committee meeting.
The agreed recommendations will now be socialized with national governments ahead of COP28,
so the fund can be activated and capitalized.
The COP28 Presidency has repeatedly advocated for the operationalization of the fund and funding
arrangements, with Dr. Al Jaber stating at last month’s Pre-COP event that Parties “must deliver”
on the fund. Progress in loss and damage represents “taking action for the world’s most climate
vulnerable people,” he told delegates during the event.

China's Sinopec Signs 27-year LNG Supply Deal with QatarEnergy
Asharq Al Awsat + NewBase
The state-owned Chinese company Sinopec said it had concluded a new 27-year agreement with
QatarEnergy to supply and purchase liquefied natural gas (LNG). Under the agreement, the two
companies will cooperate in the second phase of the North Field expansion project, which will supply
3 million tons annually of LNG to Sinopec.
Sinopec also said it would obtain a 5 percent stake in the second phase of the joint project.
The deal, signed at the China International Import Expo in Shanghai, is the third long-term supply
deal between Sinopec and Qatar Energy, the world's top LNG supplier.
The two parties signed a 10-year agreement to buy and sell liquefied natural gas in 2021 and a 27-
year agreement last year. The North Field is part of the world's largest gas field, which Qatar shares
with Iran, which calls its part the South Pars Field.
Recently, QatarEnergy signed multiple agreements with foreign and Western companies to sell LNG
in light of the energy crisis, scarcity of supply, and uncertainty surrounding the global economic
scene.
On Oct. 23, QatarEnergy signed a deal to supply Italy's Eni with gas for 27 years, following similar
sales this month to supply the Netherlands via Shell and France through TotalEnergies.
Qatar signed 27-year deals to supply 3.5 mtpa from 2026 to Shell and TotalEnergies, its largest and
most extended European gas supply deals.
Under the two agreements, gas shipments will be delivered to the Gate LNG receiving terminal in
the Dutch port of Rotterdam starting in 2026 for 27 years.

Notably, Emir of Qatar Sheikh Tamim bin Hamad Al Thani laid the foundation stone for the North
Field expansion project last October, raising the country's LNG annual production capacity from 77
million tons to 126 million tons annually in 2026.
The project includes six giant production lines, each with a production capacity of 8 million tons per
year, four of which are in the North-East Field Expansion Project and two in the North-South Field
Expansion Project.
The major expansion will add 48 million tons annually to global LNG supplies.
It will produce 6,500 tons per day of ethane gas, which will be used as a raw material in the local
petrochemical industries.
The project will also produce approximately 200,000 barrels per day of liquefied petroleum gas
(propane and butane) and about 450,000 barrels per day of condensates, in addition to large
quantities of helium and pure sulfur gas.
Al-Kaabi highlights Qatar, China shared sustainable commitments
Saad Sherida Al-Kaabi, the Minister of State for Energy Affairs, the President and CEO of
QatarEnergy, hailed the growing relationship between the State of Qatar and the People’s Republic
of China in the field of energy, highlighting the significance of recently signed North Field expansion
project partnerships and LNG sales agreements.
In a keynote speech at the Sinopec Forum in Shanghai, Minister Al-Kaabi underscored the strong
fundamentals of energy demand growth in Asia, mainly powered by China’s economic growth and
said: “The State of Qatar has firmly supported the role of natural gas as a central component of any
energy mix on the road to a realistic energy transition.

We are providing the world with the cleanest hydrocarbon source of energy, which enjoys both
economic and environmental qualities to support sustainable growth and a better future. In fact, by
2029, about 40% of all new LNG supplies will be provided by Qatar.
Therefore, we believe that a stronger relationship between the world’s largest LNG producer and
the world’s largest energy consumer is a natural development of the realities shaping the energy
map today.” He placed great emphasis on QatarEnergy’s commitment to protecting our planet and
our existence.
He said: “We believe that energy transition is one of the most pressing challenges of our time. It is
not just about the environment, but also about the future of energy that touches the lives of every
individual on this planet, and transcends borders, economies, and cultures. It is about a reasonable
and realistic shift to cleaner alternatives to power our economies, while at the same time balancing
energy security, affordability, and sustainability.
“The transition to a cleaner, more sustainable energy future cannot be achieved in isolation. It
requires open cooperation among nations, industries, and stakeholders towards a common goal,”
His Excellency added.
The Sinopec Forum which was held on the sidelines of the China International Import Expo, was
organised and hosted by China Petrochemical Corporation (Sinopec) with the participation of Dr Ma
Yongsheng, Chairman of Sinopec Group and Chairman of Sinopec, and the attendance of senior
Chinese and international energy executives.
Qatar’s move to sanction the $30 billion North Field Expansion (NFE) project puts the country on
track to return as the world’s largest LNG producer by 2030, according to a Rystad Energy report
based on operational and sanctioned projects so far. Qatar’s liquefaction capacity will rise to 110
million tonnes/year (tpy), or 18% of the global total, which is for now estimated at 600 million tpy at
the end of the decade. Still, more projects are expected to be sanctioned as LNG demand will grow
faster than supply.

U.S. Rise oil production increased natural gas production by 9%
US. EIA
In 2022, annual production of associated-dissolved natural gas (or associated natural gas)
increased 9% to 15.5 billion cubic feet per day (Bcf/d) in the major U.S. onshore crude oil-producing
regions, mostly due to an 8% increase in crude oil production.
Associated natural gas accounted for more than a third of total natural gas production in the
Permian, Bakken, Eagle Ford, Niobrara, and Anadarko regions and 14% of all U.S. natural gas
production.
Note: Major crude oil-producing regions include the Permian, Bakken, Eagle Ford, Niobrara, and
Anadarko regions, which make up almost all U.S. associated natural gas production; information
on EIA's classification of oil and natural gas wells is available in our Drilling Productivity Report
Supplement.
Associated natural gas refers to natural gas that is dissolved in crude oil under the pressure of a
geologic formation and is then released when the pressure on the crude oil is relieved by bringing
it to the surface.
Increasing crude oil production in the Permian region, which spans parts of western Texas and
southeastern New Mexico, is driving the growth in associated natural gas production. Currently
more oil is produced in the Permian region, the largest of the five major U.S. crude oil-producing
regions, than in the other four regions combined.
In 2022, production of crude oil increased in the Permian region by 12%. Associated natural gas
production increased by 15% in the Permian region to average 10.2 Bcf/d for the year, and it
accounted for 56% of all U.S. associated natural gas production. In recent years, new pipeline
takeaway capacity additions have facilitated associated natural gas production growth.

Associat ed natural gas contains higher ratios of natural gas plant liquids (NGPLs) such as ethane,
propane, normal butane, isobutane, and natural gasoline than non-associated natural gas. NGPLs
are used as fuel for heating and transportation and as feedstocks to produce plastics, resins, and
other petrochemicals.
Like associated natural gas production, NGPL production has set several consecutive annual
records, rising to an annual average of 5.9 million barrels per day in 2022. The Texas Inland region,
which includes much of the Permian region, accounted for 53% of total U.S. ethane production and
49% of total NGPL production in 2022, up from 51% of ethane production and 46% of NGPL
production in 2021, according to our Petroleum Supply Monthly.

Italy” Eni and Saipem sign agreement to develop new biorefineries
Source: Eni
Eni and Saipem have signed an agreement for the development of biorefining. It was signed today
by Giuseppe Ricci, Chief Operating Officer for Energy Evolution at Eni, and Alessandro Puliti, Chief
Executive Officer at Saipem, to support the transformation path of traditional refineries and the
development of new Eni biorefineries.
The agreement is in line with the decarbonization goals of Eni and Saipem, and it focuses on the
study for and subsequent potential construction of plants for the production of biojet, a sustainable
aviation fuel, and of the biofuel HVO diesel, produced from 100% renewable raw materials (pursuant
to EU Directive 2018/2001 "REDII").
HVO diesel is on sale at Enilive service stations under the name HVOlution and can be used across
road, naval and rail transport.
The agreement involves the application of Eni's proprietary Ecofining™ technology for both the
development of new biorefineries and the conversion of traditional refineries, combining Eni's
extensive technological and operational experience with Saipem's distinctive expertise in the design
and construction of this type of plants.
Eni was the first company in the world to convert two traditional refineries into biorefineries, in Venice
Porto Marghera and Gela, Sicily, for the processing of waste feedstocks, such as used cooking oil,
animal fats, agro-food industry residues and vegetable oils, using Ecofining™ technology. Saipem
provided support on both projects.
Eni plans to expand its biorefining capacity from the current 1.65 million tons/year to over 5 million
tons/year by 2030.

Norway: Equinor makes gas discovery by the Gina Krog field in
the North Sea Source: Equinor
Equinor has made a commercially viable gas discovery by the Gina Krog field in the North Sea. The
discovery is small, but gas production can start as early as 2023.
The recoverable volumes are estimated to be between 5 and 16 million barrels of oil equivalent.
The well was drilled by the Noble Lloyd Noble rig. Equinor is the operator with KUFPEC and PGNiG
as partners.
The discovery is considered commercially viable, partly because it can make use of existing
infrastructure by the Gina Krog platform. The well has been drilled as a development well with
exploration target, and the plan is to put the well into production during the fourth quarter of 2023.
Preparations have already been carried out on Gina Krog so that the well can quickly start
production.
The Gina Krog field in the North Sea (Photo: Ole Jørgen Bratland / Equinor)
'The discovery will help extend the lifetime and strengthen the profitability of Gina Krog and is
important for the entire Sleipner area. It will quickly bring new gas to Europe with good profitability
and low CO2 emissions from production. Gina Krog is already electrified and has spare capacity.
This shows how important it is to explore in mature areas on the Norwegian continental
shelf,' says Camilla Salthe, senior vice president for field life extension in Equinor.
When the energy crisis hit in 2021, there was close collaboration with Norwegian authorities to
deliver the maximum amount of gas to Europe. The Gina Krog partnership significantly increased
its gas export by exporting gas previously used for injection for oil extraction. At the same time, it
triggered a need to accelerate projects that can extend the lifetime of the field. Together with the
Eirin development, the discovery is an important part of this work.
Equinor is the operator (58.7%) with KUFPEC Norway AS (30%) and PGNiG Upstream Norway
AS (11.3%) as partners. This is the first commercial discovery in the Gina Krog license since 2011.

NewBase November 07 -2023 Khaled Al Awadi
NewBase for discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
Oil prices ease as mixed China trade data offset supply cuts
Reuters + NewBase
Oil prices eased on Tuesday, giving up most of Monday's gains as mixed economic data from the
world's second largest oil consumer China and winter demand worries offset the impact of Saudi
Arabia and Russia extending output cuts.
Brent crude futures slipped 60 cents, or 0.65%, to $84.58 a barrel by 0731 GMT while U.S. West
Texas Intermediate crude was at $80.31 a barrel, down 51 cents, or 0.63%.
Both benchmarks gained about 30 cents on Monday after top exporters Saudi Arabia and Russia
reaffirmed their commitment to extra voluntary oil supply cuts until the end of the year.
While China's crude oil imports showed robust growth both year on year and month on month in
October, the country's total exports still contracted at a quicker pace than expected.
"China's export data could be seen to be worse than expected, but domestic demand may be picking
up," said CMC Markets' Shanghai-based analyst Leon Li.
Oil price special
coverage

The weak trend in exports reflects downward pressure on the global economy that emerged in the
fourth quarter, he added.
Expectations of crude run reductions by China-based refiners between November and December
may limit oil demand and exacerbate price declines.
Some analysts also say that the extension of these output cuts mean markets are still cautious on
demand drivers, which may put further pressure on prices.
"The production curbs, in light of the limited impact on oil supply of the Israel-Hamas war, suggests
they (Saudi Arabia) are still concerned about demand," said ANZ analysts in a note.
Saudi Arabia to continue 1 million bpd cut in December
Saudi Ministry of Energy has announced that the kingdom will continue the voluntary cut of one
million barrels per day, which went into implementation as per Opec Plus decision in July and was
later extended until the end of December 2023, reported SPA.
This will take the kingdom’s total production for the month of December to approximately 9 million
barrels per day, said a report citing a source.
The source stated that this voluntary cut decision will be reviewed next month to consider extending
the cut, deepening the cut, or increasing production.
This cut is in addition to the voluntary cut previously announced by the kingdom in April 2023, which
extends until the end of December 2024, stated the report.
The source confirmed that this additional voluntary cut comes to reinforce the precautionary efforts
made by Opec Plus countries with the aim of supporting the stability and balance of oil markets, it
added.

NewBase Specual Coverage
The Energy world –November 07 -2023
CLEAN ENERGY
Cooling EV Sales Have Tesla, GM and Ford Rethinking Investments
David Welch, Bloomberg News
(Bloomberg) -- After years of pumping cash into the sizzling electric-vehicle market, Tesla Inc. and
other major automakers are facing a new dilemma: what to do when demand chills.
While the battery-powered vehicle market is still expanding, the pace of growth has slowed
considerably. As a result, Tesla, the world’s EV leader, and legacy automakers that had been
spending at breakneck speeds to build their electric car businesses, are now taking a more cautious
approach to investments.
Companies have collectively committed about $100 billion across North America to create electric
cars that don’t just appeal to luxury buyers and early adopters, but to the mass market. But high
inflation and interest rates are making vehicle purchases difficult for everyday people, meaning it’s
hard for EV makers to win their business. Auto executives have said they’re worried many
consumers have hit their limit.
“A large number of people are living paycheck to paycheck, and with a lot of debt, they have got
credit card debt, mortgage debt,” Tesla Chief Executive Officer Elon Musk said on an Oct. 18 third-
quarter results call. “We have to make our cars more affordable.”
Consider what consumers are seeing on the dealer lot. A Ford F-150 Lightning starts at about
$50,000, before federal tax credits of $7,500. A base model gasoline-powered version starts at less

than $37,000. General Motors Co.’s Chevrolet Blazer starts at around $37,000, but the electric
version costs a minimum $56,000 before tax credits.
The batteries that power EVs are more expensive than internal combustion engines, and it will be
at least another three years before these prices are comparable, according the Bloomberg BNEF
research.
This makes it hard for even Tesla, the only US carmaker with a profitable EV business, to make its
vehicles cheaper. It cut prices drastically this year, in some cases as much as 30%, to protect its
sales volumes, pushing others to try to keep pace. In September, the average price paid for an
electric vehicle in the US was $50,683, down from $52,212 in August and much lower than the
$65,000 companies charged a year ago, according to data compiled by researcher Cox Automotive.
Those discounts eat into companies’ bottoms lines. Tesla’s automotive revenue growth was 51%
last year but just 5% in the third quarter of this year. Automotive gross margin tumbled to to 16.3%
in the quarter, the lowest in more than four years.
Expansions on Hold
Musk said he may put off plans for a new $1 billion plant in Mexico — a stark turnaround from its
March investor day when he bragged about last year’s 50% growth rate.
GM has delayed plans to expand its electric pickup truck production at a plant in suburban Detroit.
That factory, located in Orion Township, was supposed to start making the electric version of the
Chevrolet Silverado and GMC Sierra pickups next year.
Now it won’t start until late 2025. GM will make the two trucks alongside its electric Hummer at a
plant in Detroit, but the company said it won’t expand production until it gets a better read on EV
demand and makes changes to the truck that will lower manufacturing costs.
Ford Motor Co. has already said it will delay $12 billion of its planned $15 billion in EV-related
investments. Chief Financial Officer John Lawler said on Oct. 27 the company is pushing back a
second battery plant in Kentucky with South Korean partner SK ON Co. Ford also is reducing
production of the electric Mustang Mach-E at a plant in Mexico that was expanded earlier this year.
Ford’s struggles in its nascent electric vehicle unit, known as Model e, resulted in an operating loss
of $1.3 billion in the last quarter and more than $4 billion this year. The automaker projects it will
lose $4.5 billion on EVs this year.

“While Ford and GM’s move to adjust production plans to lower demand and save capital are
pragmatically positive for margins and free cash flow in the short-term, they also raise deeper
concerns around their ability to make a successful transition to EV longer term,” Deutsche Bank
wrote in a report on Oct. 31.
The slower pace of EV deliveries is also impacting a number of other global automakers, including
Mercedes-Benz Group AG and Sweden’s Volvo Car AB, and rippling through the auto parts supply
chain. Lithium-ion battery maker LG Energy Solution Ltd. Chief Financial Officer Chang Sil Lee on
an Oct. 24 conference call lamented lower sales expectations next year.
Growing Pains
To be sure, there’s not yet evidence for an actual market meltdown. EV sales are still growing,
though volume expanded just 6% sequentially in the third quarter after a 14% jump in the prior three-
month period, according to researcher Kelley Blue Book.

Sales in the US are up almost 50% in the first nine months of the year over last year — and in two
years battery-powered cars have more than doubled their market share in EV leader California —
but the pace of growth is declining.
There normally are aches and pains associated with technological change, according to Stephanie
Valdez Streaty, director industry insights at Cox. “Anytime there is new tech, the adoption is hard,”
she said.
It’s just not clear when those difficulties end. As more companies debut long-planned EVs into a
less-receptive marketplace, inventory is piling up. At the end of September, automakers had 88
days’ worth of EV inventory, compared to 56 days for conventional models, according to data from
Cox.
“It’s concerning,” Valdez said. “Last year, they didn’t have to cut prices and there was a waiting list
for these vehicles. Now there’s more inventory.”
They might not be able to rely as much on corporate buyers and rental car fleets, either. Hertz
Global Holdings Inc. CEO Stephen Scherr said the rental company will slow the pace of EV
purchases after lower resale prices left the company eating higher depreciation costs.
Mass Market
GM could reach the mass market next year when the lower-priced version of its Chevrolet Equinox
EV goes on sale, and in 2025 with a new Chevy Bolt that will sell for even less. Chevy originally
said they would see the Equinox for around $30,000 with around 250 miles of range on a full charge.
But with consumers sweating the lack of charging infrastructure, GM upped the range and price to
$35,000 for a car that can go 319 miles on a charge.
Even as US automakers weigh how best to catch up to Tesla, Musk says his company has to watch
the global economy before greenlighting the Mexico plant. He also said Tesla will keep growing but
added that said the company’s 50% growth rates are a thing of the past. Even marketing won’t help,
he said.
“Informing people of a car that is great, but if they cannot afford it, it doesn’t really help,” Musk said.
“Really the thing that must be solved is to make the car affordable.”

NewBase Energy News 07-November - Issue No. 1671 call on +971504822502, UAE
The Editor:” Khaled Al Awadi” Your partner in Energy Services
NewBase energy news is produced Twice a week and sponsored by Hawk Energy Service – Dubai, UAE.
For additional free subscriptions, please email us.
About: Khaled Malallah Al Awadi,
Energy Consultant
MS & BS Mechanical Engineering (HON), USA
Emarat member since 1990
ASME member since 1995
Hawk Energy member 2010
www.linkedin.com/in/khaled-al-awadi-38b995b
Mobile: +971504822502
khdmohd@hawkenergy.net or khdmohd@hotmail.com
Khaled Al Awadi is a UAE National with over 30 years of experience in the Oil & Gas
sector. Has Mechanical Engineering BSc. & MSc. Degrees from leading U.S.
Universities. Currently working as self leading external Energy consultant for the
GCC area via many leading Energy Services companies. Khaled is the Founder of
the NewBase Energy news articles issues, Khaled is an international consultant,
advisor, ecopreneur and journalist with expertise in Gas & Oil pipeline Networks,
waste management, waste-to-energy, renewable energy, environment protection
and sustainable development. His geographical areas of focus include Middle East,
Africa and Asia. Khaled has successfully accomplished a wide range of projects in
the areas of Gas & Oil with extensive works on Gas Pipeline Network Facilities & gas
compressor stations. Executed projects in the designing & constructing of gas pipelines, gas metering &
regulating stations and in the engineering of gas/oil supply routes.
Has drafted & finalized many contracts/agreements in products sale, transportation, operation &
maintenance agreements. Along with many MOUs & JVs for organizations & governments authorities.
Currently dealing for biomass energy, biogas, waste-to-energy, recycling and waste management. He has
participated in numerous conferences and workshops as chairman, session chair, keynote speaker and
panelist.
Khaled is the Editor-in-Chief of NewBase Energy News and is a professional environmental writer with over
1400 popular articles to his credit. He is proactively engaged in creating mass awareness on renewable
energy, waste management, plant Automation IA and environmental sustainability in different parts of the
world. Khaled has become a reference for many of the Oil & Gas Conferences and for many Energy program
broadcasted internationally, via GCC leading satellite Channels. Khaled can be reached at any time, see
contact details above.

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