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From: Douglas Grandt answerthecall@me.

com
Subject:S.1460 ignores petrol-powered car bans' crippling the oil market
Date:September 13, 2017 at 1:09 PM
To:Colin Hayes (Senate ENR Ctee) Colin_Hayes@energy.senate.gov, Angela Becker-Dippmann (Senate ENR Ctee)
Angela_Becker-Dippmann@energy.senate.gov, Michaeleen Crowell (Sen. Sanders) Michaeleen_Crowell@sanders.senate.gov,
Katie Thomas Katie_Thomas@sanders.senate.gov
Cc: William (Bill) M. Colton William.M.Colton@ExxonMobil.com, Jeffrey J. Woodbury jeff.j.woodbury@exxonmobil.com,
Darren W. Woods Darren.W.Woods@ExxonMobil.com, Suzanne M. McCarron Suzanne.M.McCarron@ExxonMobil.com,
Susan K. Avery, PhD savery@whoi.edu, Max Schulz max.schulz@exxonmobil.com

Dear Colin and Angela,

This week, there is yet another report that undermines S.1460 fundamental assumption:
Oil and gas: business-as-usual, laissez-faire. (Bit.ly/OilPrice12Sep17)

S.1460 give zero consideration for the eventuality that demand for gasoline and diesel
guzzling vehicles is about to crash because metropolitan areas are prohibiting their
intrusion for health reasons, and people who drive are shifting their paradigm to EVs
(electric vehicles)the wave is breaking.

Will the petroleum industry die gracefully with a responsible plan to manage their demise
in a steady and predictable smooth landing"?

Will Congress have to insist that CEOs and Boards of Directors make final arrangements
in the Public Interest and National Interest? Will Congress take control of how the oil and
gas companies exercise their fiduciary duty in the face of debt default, insolvency and
bankruptcy, or allow laissez-faire self-interest to threaten U.S. economic and social
stability?

S.1460 is a precursor to the latter.

Retract S.1460 and go back to the drawing board with in-depth testimony of the oil
companies. Make them commit to a socially responsible course of action with
contingency plans.

Sincerely yours,

Doug Grandt
Chinas Petrol-Powered Car Ban Could Cripple The Oil Market
By Jon LeSage | Sep 12, 2017, 1:00 PM CDT | Bit.ly/OilPrice12Sep17
China is joining the UK, France, and Norway in banning vehicles powered by fossil fuels.
If China, the worlds largest new vehicle market with sales of 28.03 million units last year,
were to ban gasoline and diesel vehicles in the market, the impact on petroleum would be
huge. But how pervasive is the fossil-fuel ban in global markets key to new vehicle sales
and petroleum consumption?
During an automotive forum over the weekend in Tianjin, Xin Guobin, the vice minister of
industry and information technology, said the government is working on a timetable to
end production and sales of fossil-fuel powered vehicles.
The national government has been headed in this direction for a few years, issuing
generous new energy vehicle subsidies to automakers to build electric vehicles and for
consumers to buy them. The subsidies are being cut back this year and the government
is expected to adopt a zero-emission vehicle mandate similar to Californias where
automakers would be mandated to manufacture a set percentage of electric and fuel cell
vehicles in the short term.
China is open to direction from other countries as it deals with increasingly crowded
cities, booming auto sales, and air pollution in growing metro areas. The country had
already committed to cap its carbon emissions by 2030.
European nations are dealing with backlash from the Volkswagen diesel emissions
cheating scandal that started two years ago, with more investigation and pressure
coming from nations and the European Union. Diesel-powered cars make up about half
the market in Europe with consumers looking for alternatives since the scandal broke.
Strict carbon emissions policies are also leading toward banning fossil-fuel powered
vehicles.
German chancellor Angela Merkel has suggested that Germany may follow its European
neighbors on the fossil-fuel vehicle ban. Seeking her fourth term as chancellor in the
Sept. 24 election, Merkel has been facing criticism from her opponent for being too tied to
German automakers to enforce strict emissions policies. The German government has
become tougher, investigating several automakers since the VW scandal broke in 2015.
A new think piece by a Bloomberg columnist sees the impact of Chinas expected
decision to have a huge impact on the sale of new vehicles and petroleum in the future.
A chart shows that nearly 80 percent of the global auto market is pushing toward a
phase-out of petroleum cars and adoption of electric vehicles. If that comes to be,
demand for gasoline and diesel would drop dramatically.
However, there are few major hurdles that must be crossed before this will come
anywhere near adoption on a mass scale.
One of them is that the U.S., the worlds largest economy ahead of China, may see its
fuel economy and emissions targets softened soon by the federal government. Soon after
taking over the White House this year, President Donald Trump announced he would be
reconsidering the Obama administrations mandates over the next year. White House
comments indicate the rules will be lightened up.
Trumps June 1 decision to leave the Paris climate accord also suggests that the federal
Trumps June 1 decision to leave the Paris climate accord also suggests that the federal
government is backing off the plan Obama negotiated with automakers a few years ago.
Japan is another country that has yet to ban fossil fuel vehicles. The government has
been taking a more cautious approach, supporting efforts by Japanese automakers to
embrace hydrogen fuel cell vehicles. But sales of these vehicles have been quite small
so far.
The chart shows that so far, Brazil, Canada, Russia, Mexico, and Italy have no significant
plans in place toward banning fossil-fuel vehicles. These markets are dependent on oil
production and overseas shipment, and may be less inclined to impact the industry
through national fossil-fuel mandates.
India has tentative phase-out plans. If the government does issue a mandate, it will have
a major impact on the nation thats expected to soon surpass China in population and
that has been seeing new vehicle sales grow in recent years.
For now, the odds are against governments wanting to see fossil-fuel vehicles disappear.
Bloomberg New Energy Finance reports that last year, there were about 695,000 electric
vehicles sold versus 84 million new vehicles sold worldwide. There are about a billion
petroleum-powered vehicles owned around the world. Getting rid of them will take quite a
while.

http://oilprice.com/Alternative-Energy/Renewable-Energy/Chinas-Petrol-Powered-Car-
Ban-Could-Cripple-The-Oil-Market.html