It's the first time the company has used EVs in any of its upstream sites, including the Permian Basin. Photo via exxonmobil.com

ExxonMobil has upgraded its Permian Basin fleet of trucks with sustainability in mind.

The Houston-headquartered company announced a new pilot program last week, rolling out 10 new all-electric pickup trucks at its Cowboy Central Delivery Point in southeast New Mexico. It's the first time the company has used EVs in any of its upstream sites, including the Permian Basin.

“We expect these EV trucks will require less maintenance, which will help reduce cost, while also contributing to our plan to achieve net zero Scope 1 and 2 emissions in our Permian operations by 2030," Kartik Garg, ExxonMobil's New Mexico production manager, says in a news release.

ExxonMobil has already deployed EV trucks at its facilities in Baytown, Beaumont, and Baton Rouge, but the Permian Basin, which accounts for about half of ExxonMobil's total U.S. oil production, is a larger site. The company reports that "a typical vehicle there can log 30,000 miles a year."

The EV rollout comes after the company announced last year that it plans to be a major supplier of lithium for EV battery technology.

At the end of last year, ExxonMobil increased its financial commitment to implementing more sustainable solutions. The company reported that it is pursuing more than $20 billion of lower-emissions opportunities through 2027.

Cowboys and the EVs of the Permian Basin | ExxonMobilyoutu.be

A new list from EV Charger Reviews puts Texas in the No. 2 position among the worst states for owning an EV. Photo via Getty Images

Texas ranked as among the worst states for EV drivers

yikes

You’d think that producing tens of thousands of Teslas might help drive up Texas’ standing among the best states for owning an electric vehicle. To the contrary, Texas ranks among the worst states to be an EV owner.

A new list from EV Charger Reviews puts Texas in the No. 2 position among the worst states for owning an EV. Washington leads the pack of the worst EV states. Topping the list of the best states for EV owners is Maine, followed by Colorado and Vermont.

The ranking judged each state on these factors:

  • Number of registered EVs
  • Number of EVs per charging port
  • Ratio of one square mile per charging port
  • Cost of electricity
  • Annual cost savings for EV owners
  • Number of EVs per service center
  • EV tax credits

“Texas has cheaper electricity but a bad ratio of EVs registered to charging ports and service centers. The annual savings on gas money is only about $1,000, and there are no tax incentives,” says EV Charger Reviews.

Texas’ ranking stands in contrast to the presence in Austin of Tesla’s headquarters and a Tesla factory. The more than 10 million-square-foot, 25,000-acre factory serves as the U.S. manufacturing hub for Tesla’s electric-powered Model Y car and Cybertruck.

While thousands of Texans are driving Teslas and other EVs, they’re definitely in the minority.

Survey findings released in November 2023 by the University of Houston and Texas Southern University showed that only five percent of Texas motorists who were questioned drove an electric-powered car, truck, or SUV.

Nearly 60 percent of those who didn’t drive EVs said they wouldn’t consider buying one. Almost half (46 percent) cited the lack of charging stations as their chief reason for not wanting to own an EV.

“With such a small percentage of Texans currently owning electric vehicles, it looks like Texans will hold tight to their gas engines for the foreseeable future. Government incentives … have yet to make a difference among the state’s vehicle buyers,” according to a UH news release about the survey.

“But as charging stations grow in number, costs of operation decrease and — most important, the technology allows longer driving ranges — perhaps electric vehicles will start to earn their place in the garages of Texans.”

A Texas law that took effect in 2023 requires an EV owner to pay an extra $200 fee when they renew their vehicle registration or an extra $400 fee for their initial two-year registration.

While Houston isn't known as the coldest of climates, you still might want to review this myth-busting guest column. Photo via Pexels

Guest column: Cold weather and electric vehicles — separating fact from fiction

EVs in winter

Winter range loss is fueling this season’s heated debate around the viability of electric vehicles, but some important context is needed. Gasoline cars, just like their electric counterparts, lose a significant amount of range in cold weather too.

According to the Department of Energy, the average internal combustion engine’s fuel economy is 15 percent lower at 20° Fahrenheit than it would be at 77° Fahrenheit, and can drop as much as 24 percent for short drives.

As the world grapples with the implications of climate change and shifts toward sustainable technologies, it's important to put the pros and cons of EVs and traditional gas vehicles in perspective. And while Houston isn't known as the coldest of climates, you still might want to review this information.

The Semantics of Energy Consumption Hide the Real Issue: Cost

First, let's talk about the language. When discussing gas vehicles in cold climates, the conversation often centers around "fuel efficiency." It sounds less threatening, doesn't it? But in reality, this is just a euphemism for range loss, something for which EVs are frequently criticized.

Why does that matter? Because for most drivers who travel less than 40 miles a day, what range loss really means is higher fueling costs. When a gas vehicle loses range, it costs a lot more than the same range loss in an EV. For example, at $3.50 a gallon, a car that gets 30 MPG in warm weather and costs $46.67 to go 400 miles suddenly costs $8.24 more to drive the same distance. By contrast, an EV plugging in at $0.13 per kWh usually costs $13 to go 400 miles and bumps up to a piddly $16.25 even if it loses 20 percent efficiency when the temperature drops.

Some EV models lose 40 percent in extreme cold. OK, tack on another $3. That still leaves almost $30 in the driver’s pocket. Over the course of a year, those savings pile up.

Let’s Call It What It Is: Fear Mongering

Any seismic shift in technology comes with consumer hesitancy and media skepticism. Remember when everyone was afraid to stand in front of microwaves and thought the waves would make the food unsafe to eat? Or how, just a decade or so back everyone was talking about how cell phones could spontaneously explode?

Fear of new technology is a natural psychological response and to be expected. But it takes the media machine to turn consumer hesitation into a frenzy. Any way you slice it, 2023 was one big platform for expressing fears around EVs. Headline-grabbing tales of EV woes often lacked context or understanding of the technology. In a highly partisan landscape where EVs have been dubbed liberal leftist technology, what should be seen as a miraculous pro-American, pro-clean-air, pro-energy independence, pro-cost saving advancement is getting a beating in the press. In this environment, every bit of “bad EV news” spirals out into an echo-chamber of confirmation bias.

For example, Tesla’s recent software update was hyped as a 2 million vehicle “recall” even though the software was updated over the air without a single car needing to leave the driveway. Hertz's recent decision to reduce its Tesla fleet was seen by many as a referendum on the cars’ quality but was actually a decision based on Hertz’s miscalculations around repair costs and a mismatch in their projections of consumer demand for EV rentals.

While the cost of repairs might be higher, maintenance and fuel costs are still much lower than gas vehicles. EVs are better daily-use cars than rentals because while our country’s public charging infrastructure is still lagging, home charging is a huge benefit of EV ownership. Instead, the Hertz move and the negative coverage are further spooking the public.

The Truth About EVs

Despite the challenges, it's crucial to acknowledge the environmental advantages of EVs. For instance, EVs produce zero direct emissions, which significantly reduces air pollution and greenhouse gasses. According to the U.S. Environmental Protection Agency, EVs are far more energy efficient than gas-powered cars, converting more than 77 percent of electrical energy from the grid to power, compared to 12-30 percent for gasoline vehicles.

This efficiency translates to a cleaner, more sustainable mode of transportation. And stories of EVs stranded in Chicago aside, generally they perform well in cold weather, as clearly demonstrated in Norway. In Norway, the average temperature hovers a solid 10 degrees lower than in the U.S. Yet 93 percent of new cars sold there are electric. The first-ever drive from the north to the south pole was also completed by an electric vehicle. The success story of EVs in Norway and demonstration projects in harsh winter climates serve as a powerful counterargument to the notion that EVs are ineffective in cold weather.

So where does this leave us? The discourse around EVs and gasoline vehicles in cold weather needs a more balanced and factual approach. The range loss in gasoline vehicles is a significant issue that mirrors the challenges faced by EVs. By acknowledging this and understanding the broader context, we can have a more informed and equitable discussion about the future of automotive technology and its impact on our environment.

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Kate L. Harrison is the co-founder and head of marketing at MoveEV, an AI-backed EV transition company that helps organizations convert fleet and employee-owned gas vehicles to electric, and reimburse for charging at home.

In M&A news, a decarbonization-focused firm has acquired only producer in the Western Hemisphere of electric-vehicle-grade permanent magnets. Photo via arapartners.com

Houston private equity firm acquires German magnetic materials producer

M&A moves

Houston-based private equity firm Ara Partners has purchased Germany’s Vacuumschmelze (VAC), a producer of magnetic materials for products such as electric vehicles, from funds overseen by asset manager Apollo. The purchase price wasn’t disclosed.

VAC is the only producer in the Western Hemisphere of electric-vehicle-grade permanent magnets. It also makes magnetic materials for the industrial, aerospace, medical, and renewable energy sectors.

Earlier this year, VAC announced a deal with automotive giant General Motors to build a North American factory for the production of magnets for the electric motors of GM-made EVs. The factory, set to open in 2025, will initially product enough magnets to supply 1 million EVs each year. The magnets will be made of alloys of rare-earth elements.

GM forecasts it will manufacture 1 million EVs per year in North America by 2025.

“We believe the demand for VAC’s differentiated, customized products will continue to grow rapidly as companies around the world decarbonize their industrial processes and the electrification of mobility advances, and we look forward to leveraging our expertise to further enable VAC’s continued success,” Tuan Tran, a partner at Ara Partners, says in a news release.

Ara Partners specializes in investments in the decarbonization sector.

Founded in 1923, VAC was owned by technology conglomerate Siemens for more than 65 years. Ohio’s OM Group acquired VAC in 2011. Four years later, Apollo purchased OM Group for more than $1 billion, putting VAC in the hands of the asset manager.

As of June 30, Ara Partners had about $4.4 billion in assets under management, while Apollo had $617 billion in assets under management.

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3 Houston sustainability startups score prizes at Rice University pitch competition

seeing green

A group of Rice University student-founded companies shared $100,000 of cash prizes at an annual startup competition — and three of those winning companies are focused on sustainable solutions.

Liu Idea Lab for Innovation and Entrepreneurship's H. Albert Napier Rice Launch Challenge, hosted by Rice earlier this month, named its winners for 2024. HEXASpec, a company that's created a new material to improve heat management for the semiconductor industry, won the top prize and $50,000 cash.

Founded by Rice Ph.D. candidates Tianshu Zhai and Chen-Yang Lin, who are a part of Lilie’s 2024 Innovation Fellows program, HEXASpec is improving efficiency and sustainability within the semiconductor industry, which usually consumes millions of gallons of water used to cool data centers. According to Rice's news release, HEXASpec's "next-generation chip packaging offer 20 times higher thermal conductivity and improved protection performance, cooling the chips faster and reducing the operational surface temperature."

A few other sustainability-focused startups won prizes, too. CoFlux Purification, a company that has a technology that breaks down PFAS using a novel absorbent for chemical-free water, won second place and $25,000, as well as the Audience Choice Award, which came with an additional $2,000.

Solidec, a company that's working on a platform to produce chemicals from captured carbon, and HEXASpec won Outstanding Achievement in Climate Solutions Prizes, which came with $1,000.

The NRLC, open to Rice students, is Lilie's hallmark event. Last year's winner was fashion tech startup, Goldie.

“We are the home of everything entrepreneurship, innovation and research commercialization for the entire Rice student, faculty and alumni communities,” Kyle Judah, executive director at Lilie, says in a news release. “We’re a place for you to immerse yourself in a problem you care about, to experiment, to try and fail and keep trying and trying and trying again amongst a community of fellow rebels, coloring outside the lines of convention."

This year, the competition started with 100 student venture teams before being whittled down to the final five at the championship. The program is supported by Lilie’s mentor team, Frank Liu and the Liu Family Foundation, Rice Business, Rice’s Office of Innovation, and other donors

“The heart and soul of what we’re doing to really take it to the next level with entrepreneurship here at Rice is this fantastic team,” Peter Rodriguez, dean of Rice Business, adds. “And they’re doing an outstanding job every year, reaching further, bringing in more students. My understanding is we had more than 100 teams submit applications. It’s an extraordinarily high number. It tells you a lot about what we have at Rice and what this team has been cooking and making happen here at Rice for a long, long time.”

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This article originally ran on InnovationMap.

ExxonMobil's $60B acquisition gets FTC clearance — with one condition

M&A moves

ExxonMobil's $60 billion deal to buy Pioneer Natural Resources on Thursday received clearance from the Federal Trade Commission, but the former CEO of Pioneer was barred from joining the new company's board of directors.

The FTC said Thursday that Scott Sheffield, who founded Pioneer in 1997, colluded with OPEC and OPEC+ to potentially raise crude oil prices. Sheffield retired from the company in 2016, but he returned as president and CEO in 2019, served as CEO from 2021 to 2023, and continues to serve on the board. Since Jan. 1, he has served as special adviser to the company’s chief executive.

“Through public statements, text messages, in-person meetings, WhatsApp conversations and other communications while at Pioneer, Sheffield sought to align oil production across the Permian Basin in West Texas and New Mexico with OPEC+,” according to the FTC. It proposed a consent order that Exxon won't appoint any Pioneer employee, with a few exceptions, to its board.

Dallas-based Pioneer said in a statement it disagreed with the allegations but would not impede closing of the merger, which was announced in October 2023.

“Sheffield and Pioneer believe that the FTC’s complaint reflects a fundamental misunderstanding of the U.S. and global oil markets and misreads the nature and intent of Mr. Sheffield’s actions,” the company said.

Senate Majority Leader Chuck Schumer, D-N.Y., said it was “disappointing that FTC is making the same mistake they made 25 years ago when I warned about the Exxon and Mobil merger in 1999.”

Schumer and 22 other Democratic senators had urged the FTC to investigate the deal and a separate merger between Chevron and Hess, saying they could lead to higher prices, hurt competition and force families to pay more at the pump.

The deal with Pioneer vastly expands Exxon’s presence in the Permian Basin, a huge oilfield that straddles the border between Texas and New Mexico. Pioneer’s more than 850,000 net acres in the Midland Basin will be combined with Exxon’s 570,000 net acres in the Delaware and Midland Basin, nearly contiguous fields that will allow the combined company to trim costs.