American Oil and Gas Reporter - September 2019 - 104

Study Downplays EV Emission Benefit
MUNICH, GERMANY-Government
regulators describe a Tesla Model 3 as a
zero-emissions vehicle, but a German
think tank study says the car emits more
carbon dioxide during its life cycle than
a comparable diesel-powered vehicle. It
concludes that battery-powered vehicles
emit 10-25% more CO2 than a conventional diesel-fueled automobile.
"Considering Germany's current energy
mix and the amount of energy used in
battery production, the CO2 emissions of
battery-electric vehicles (EVs) are, in the
best case, slightly higher than those of a
diesel engine, and are otherwise much
higher," the ifo Institute for Economic
Research says in its study, written by
former institute president Hans-Werner
Sinn, ifo energy expert Hans-Dieter Long
and physics professor Christoph Buchal.
"The researchers carried out their detailed calculations using the concrete examples of a modern electric car and a
modern diesel vehicle," the institute describes. "In addition to CO2 emissions
from battery production, they looked at
alternative energy sources for electricity
in order to calculate the impact EVs have
on CO2 emissions. They show that even

with today's technology, total emissions
from a combustion engine powered by
natural gas already are almost one-third
lower than those of a diesel engine."
In its study, ifo compared the emissions
footprint of the Tesla with a Mercedes
220d diesel-powered car and a Mercedes
C Class model converted from gasoline to
liquefied natural gas. The analysis looked
at the cars' entire life cycle emissions-
from construction through their final miles,
arbitrarily setting the distance driven as
150,000 kilometers (93,206 miles).
Cutting CO2
As part of its drive to reduce the continent's car fleet emissions below 95
grams of CO2 per kilometer by 2021, the
European Commission counts electric
cars as "zero-emission vehicles." Media
reports note another reduction of 35% is
planned for the following decade, dropping
CO2 emissions to 59 g/km.
According to the ifo, their study's authors criticize the fact that European
Union legislation allows EVs to be considered as not generating any emissions.
"The reality is that, in addition to the
CO2 emissions generated in the production

of EVs, almost all EU countries generate
significant CO2 emissions from charging
the vehicles' batteries using their national
energy production mix," the study says.
The ifo study challenges that "zeroemission" classification, asserting EVs
are neither emissions-free nor are the
government's goals achievable without
falsifying the data. According to the authors, carbon emission data-especially
on the upstream contribution during the
manufacturing process-is weak, but they
say the available information on CO2
emissions during manufacturing, battery
and fuel production, as well as electricity
generation, already suggests the Tesla 3
vehicle has the largest carbon footprint
of the three models studied.
Manufacturing an EV and a conventional
combustion-engine car both create about
8.6 tons of CO2 a car, the study says, with
4.9 tons needed for producing the body
and 1.9 tons emitted in the assembly process.
The institute points out diesel motor production causes 0.8 tons of additional emissions over electric motor production, but
the Tesla 3's additional components account
for another 1.5 tons of CO2 a car, more
than the Mercedes 220D's 1.0 tons.
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KC Federal Reserve Sees Tariff Troubles
KANSAS CITY, MO.-Overall oil and
gas industry services activity increased
in August, and expectations for future
growth expanded, the Federal Reserve
Bank of Kansas City's Tenth District survey indicates. Most input and selling
price indexes eased down somewhat, it
reports, with month-over-month selling
prices turning negative for the first time
since October 2016. However, the Federal
Reserve says expectations for future
selling prices rose in August.
The month-over-month services composite index, a weighted average of the
revenue/sales, employment, and inventory
indexes, was 17 in August, up from -1 in
July and 1 in June, the survey says.
Month-over-month indexes were somewhat mixed in August but mostly positive,
the Federal Reserve assesses. The general
revenue/sales index rebounded significantly, and the capital expenditures index
expanded, while the employment and
wages and benefits indexes edged lower.
Increases in transportation, restaurants,
professional and business activity, and
other services drove the jump in general
revenue/sales index, the analysis states.
Year-over-year services indexes dipped

slightly compared with last month's numbers,
falling from 17 to 15. The Federal Reserve
says expectations for the services composite
index increased from 14 to 18 as the future
revenue/sales, inventory, capital expenditures
and access to credit indexes rose.
Even so, more than 57% of business
contacts in the Federal Reserve Bank of
Kansas City's Tenth District expect the
latest round of announced tariffs on Chinese goods to negatively impact their
businesses, while fewer than 3% expect
a positive impact. In the manufacturing
sector, the survey says activity declined
in August while expectations for future
activity edged higher.
The Federal Reserve's August services
survey says more than 44% of firms
expect trade tensions to persist for between
six and 12 months, and nearly 29% see
tensions lingering for two years. However,
the analysis says 11% of surveyed firms
expect trade tensions to subside within
six months, while 16% predict trade tensions will last more than two years.
Manufacturing
Across the Tenth District, the Federal
Reserve says, month-over-month price in-

104 THE AMERICAN OIL & GAS REPORTER

dexes for raw materials and finished products
decreased, turning negative for the first
time since 2016. Firms continue to expect
prices to climb during the next six months.
The month-over-month composite index, the average of the production, new
orders, employment, supplier delivery
time and raw materials inventory indexes,
was -6 in August, down from -1 in July
and 0 in June, and the lowest reading
since March 2016, the survey says.
According to the Federal Reserve, the
decline in manufacturing activity was
driven by declines at both durable and
nondurable plants but especially from
drops in primary metal, electrical equipment, appliances, paper, printing and
chemical manufacturing.
All the year-over-year factory indexes
declined in August, and the composite
index fell from 11 to -1. According to
the survey, the future composite index
edged higher from 9 to 11, as expectations
for shipments, order backlog, employment
and new orders for exports grew slightly.
Of the surveyed companies, more than
55% expect announced tariffs on Chinese
goods will negatively impact them, while
fewer than 6% expect a benefit.
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American Oil and Gas Reporter - September 2019

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