Americans Spending Big Bucks On SUVs, High-End EVs -- January 6, 2016; Book On Shale Revolution Is Now Amazon's #1 Bestselling Book In Four (4) Categories

Active rigs:

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RBN Energy:

Energy market volatility in 2015 was neither the result of random market fluctuations nor geopolitical orchestration.  The market pressures had been building for years, as one market event triggered another, leading inexorably to the carnage of Q4 2015.  

In fact, there were thirty such market events, which are represented by dominos in the new book by Rusty Braziel, titled The Domino Effect now Amazon’s #1 bestselling book in four categories. 

More dominoes will topple in 2016 and the years beyond.  This book is about understanding how and why the dominos have and will continue to fall based on an analysis of energy market fundamentals: prices, flows, infrastructure, value, and economics.  Today’s blog, an advertorial for the book, highlights some of the key aspects of The Domino Effect.

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SUVs and EVs

Two articles.

First, from The Wall Street Journal:

Three years ago, Lili Rodriguez gambled when she transferred from General Motors Co. ’s small-car factory in Lordstown, Ohio, to GM’s plant in north Texas making full-size sport-utility vehicles.

As the U.S. auto industry was on the mend after a near-financial collapse in 2009, low-cost passenger cars like Lordstown’s compact Chevrolet Cruze were driving its recovery. With the national average for a gallon of gasoline costing about $3.50 at the time of Mr. Rodriguez’s move, sales of Arlington’s full-size SUVs were declining.

The tables have turned for the U.S. auto industry and Arlington is among the biggest winners. GM is committing $1.4 billion to upgrade the factory, part of tens of billions in U.S. capacity investments planned for the next several years by Volvo Car Corp., Ford Motor Co. , Daimler AG and other car makers.

Light-vehicle sales are on track to hit a record in 2015, and an increasing bulk of those units are hulking highly-profitable models like the Chevrolet Suburbans, Tahoes, Cadillac Escalades and GMC Yukons that roll off an Arlington assembly line running six days a week, building 16.5% more vehicles through the first 11 months in 2015 than in the same period a year ago. GM posted record profit in the third quarter; with its SUV plant—one of the most profitable auto factories in the world—contributing much of the earnings.

Second, the scorecard on EVs. The numbers are incredibly small, but the trend is quite clear. Note the surge in BMW EVs that are being sold, month-over-month at this link.  BMW i3 sales doubled and BWM i8 went from around 100 vehicles to well over 600 vehicles sold.