New York CANCELS Offshore Wind

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Biden set to block millions of acres in Alaska from oil, gas drilling in Earth Day action

Highlights of the Podcast

00:00 – Intro

01:30 – Biden set to block millions of acres in Alaska from oil, gas drilling in Earth Day action

04:50 – 3 offshore wind projects nixed in New York

07:42 – Biden administration considers scrapping its cutting-edge proposal to slash power plant pollution

10:17 – Former UN staffer offers view on why sanctions on Moscow failed

13:33 – Oman LNG signs 10-year gas supply agreement with Turkey’s Botas Petroleum

16:45 – Markets Update

20:43  -Outro

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Video Transcription edited for grammar. We disavow any errors unless they make us look better or smarter.

Michael Tanner: [00:00:14] What’s going on, everybody? Welcome into the April 22nd, 2024 edition of the Daily Energy News Beat stand up. Here are today’s top headlines. First up, Biden said to block millions of acres in Alaska from oil gas drilling in Earth Day action. Dun dun dun. That’s the big kind of the big story of the week. And next up, 3 offshore wind projects nixed in New York. Back over to the Biden administration. They are considering scrapping its cutting edge proposal to slash power plant pollution. Very interesting article. Next up, former UN. Staffer offers. A view on why sanctions on Moscow failed. Super interesting breakdown there. And then we’ll end this first news segment with Oman LNG signing a ten year gas supply agreement with Turkey’s Botas Petroleum. Stu, will then toss it over to me. I will quickly cover what happened in the oil and gas markets over the weekend, and mainly talk a little bit about what we might see in this upcoming week. We will cover all that and a bag of chips, guys. As always, I am Michael Tanner, joined by Stuart Turley. Go ahead and kick us off. Let’s do this. [00:01:29][74.6]

Stuart Turley: [00:01:30] Hey. Happy earth day Michael. Yes. Happy Earth day. Oh my goodness. Biden is ready to try to appease somebody since I believe he was raised by the Puerto Ricans in a Honduras factory where his uncle was eaten by a cannibal. I don’t know what to even where to start with, Earth Day. This is where he’s stirring Biden. This set the millions of acres in Alaska from oil, from drilling an Earth Day action. This has second order and third order magnitude and is unbelievable, quote unquote. Listen to this, Michael. With climate change warming in the Arctic, more than twice is the rest of the planet. We must do everything within our power to control, to meet the highest standards of care, to protect this fragile ecosystems, says interior Secretary Helen. As previously said, President Biden is delivering the most ambitious climate and conservative and, conservation agenda in history. This is hogwash. The climate is not having a serious issue in the Arctic. I’ve talked to a few folks on this, even some penguins called, just getting. But the regulations have received support from Democrats and the environmentalists. This is not a environmental move. This is a location. Or how do you want a placeholder for his activists? Yeah, it’s really not. It’s nothing more than that going to hurt the oil and gas, and it’s going to hurt Alaska. [00:03:07][97.6]

Michael Tanner: [00:03:08] Oh, it is because Alaska is one of the few states talk about universal basic income. They have a little bit of UBI specifically because of so much excess oil and gas going on there. Yeah, I mean, I find it interesting when you’re right, this, this this looks exactly like an activist push towards the end of the campaign to rile up the other side because you’ve got, you know, both senators, they are Republicans, but also Democratic representatives who sent a letter early this February. And this is I’m reading now from the bottom of the article, urging to consider the perspectives of Native Alaskans, many of whom who support oil and gas development in the NPR, which is the National Petroleum Reserve. Now, there is a carve out for the Willow project, so that still that ConocoPhillips project is still moving forward. But it doesn’t that. [00:03:59][50.8]

Stuart Turley: [00:03:59] Down to less than a fourth of what it was. [00:04:02][2.4]

Michael Tanner: [00:04:02] Yeah, it’s what it matters. It doesn’t touch what was already pre-approved. But this is a a great example of how they’re not really looking out for the best energy development. They’re they’re looking to score political points. And this is an easy way to probably kick the can down the road. If they win, they’ll repeal it. If they lose, Trump will repeal it. So do I think this will actually end up this way? No. This is, as you said, just kind of a carrot in front of the camera. [00:04:28][26.0]

Stuart Turley: [00:04:29] That’s right. It’s kind of like, look, I’m trying to be climate warming. And hey, as a shout out, we will have been filmed, here at 8:00 on Monday morning, climate Earth Day, celebration with David Blackmon. Irene is long, and my name is in me, so this will be covered on that as well. [00:04:48][19.2]

Michael Tanner: [00:04:49] Nice, nice. [00:04:49][0.4]

Stuart Turley: [00:04:50] Hey, Mike, let’s go to the next one. Three offshore wind projects. Next in New York. That’s a total of six that were canceled. Michael. Three were rebid out at double the price. So I went to LSU. But is the same amount of money being stolen from the people? I’m just kidding. No. Three wind offshore next. And this is kind of. Funny. The new heavy blow to the offshore in a major setback for the climate ambitions. These projects would have delivered four gigawatts to offshore wind, amounting the most of the New York’s 2035 goal. It’s all about cost. Given these developments, there’s no final awards will be made or the, the news. Blah, blah blah. Kathy Hochul is all upset. Oh, what. [00:05:41][50.2]

Michael Tanner: [00:05:41] It comes down to is really what happened here was they couldn’t come to the the maker of these turbines decided not to big a turbine, build a big enough turbine to fit what the, you know, the the retrofit, what these offshore wind farms was going to do. So instead, you would have to use smaller turbines, which means more of them, which means more expense. And like everything, when you try something new, wind energy is fairly new. It’s only been around for ten years. We’ve been developing oil and gas for over 100 years now. Things always in the front end cost more. It’s why investing in hardware. I’m a big fan of the, the All In podcast. These guys, we’re talking about this little, apple, this this new company right now that raised $250 million to build a little pin. It’s their version of Google Glass, but it’s on your pin. New one of $50 million. They built a product that didn’t work. Why? Investing in hardware costs so much money. So to think that we’re just going to come into this in the first try, get it right, is ridiculous. It applies to anything. So, that’s why you’re seeing all these cost overruns. It’s absolutely insane. [00:06:47][66.5]

Stuart Turley: [00:06:48] Well, and what’s going to happen is, the as I’ve talked about with several different other folks on podcast, the cost overruns have now caught up to them. And you’ve mentioned this before, is that the wind industry is now catching up, that they can’t constantly go get more money, constantly going to get more money. And it’s now to a serious point, GE Renova is the spin off that you’re talking about. Okay. [00:07:16][27.5]

Michael Tanner: [00:07:16] Yeah. This and I mean, to give you an idea, this was originally going to supply power to to 10 million homes by 2030. Whether or not you believe that number or not I mean, that’s a pretty lofty goal. [00:07:26][9.3]

Stuart Turley: [00:07:26] It’s extremely lofty, but the part of the problem is that, we won’t have any whale population by then. That’s perfect. Yeah. Okay, Matt, make your day. Hey, it’s celebration Earth day. Let’s get rid of the whales. [00:07:39][12.4]

Michael Tanner: [00:07:39] Exactly. They’re killing the environment. [00:07:40][0.8]

Stuart Turley: [00:07:41] Yeah. That’s right. All right. Hey, let’s go to Biden administration. Consider scrapping its cutting edge proposal to slash power plant pollution. David Blackman has been all over this, whole topic. Very well. And, Michael, this article actually came from CNN. That’s when I, when I was reading this, I was kind of like. Even CNN is out there going the, is the scrapping its really, really most impactful power plant rules, are important. The EPA is going after them because they’ve got hydrogen buried into the language as well, so that they can use hydrogen along with the coal. And now their lawsuits coming out saying that hydrogen is more polluting than what is, allowed out there. So they’re trying to separate it out a little bit and slow it down. Hydrogen is not as clean as they say it is. So they’re trying to allow a little bit of two year fund room so that they can extend some of the, coal plants out two years, which is actually brilliant. [00:08:53][72.1]

Michael Tanner: [00:08:54] Yeah. I mean, hydrogen is not here yet. It’s hydrogen is not ready to be injected into my car. I’m not sure if I want to be putting hydrogen into my car and turning it into a weapon, but that’s just me. Okay. [00:09:06][11.8]

Stuart Turley: [00:09:07] Well, the the rule, this whole these rules are all about carbon capture and stemming. And I agree that if you could do carbon cleaning or carbon scrubbing, you could get it down to enough so that it would be less impact on the environment to run a coal plant than to run a wind turbine. Just by doing scrubbing, you don’t have to do the carbon capture. So the EPA is, delay the rulemaking, on the existing plants which have been covered. Here is a quote from oh, boy. One thing we can all count on is the EPA will be sued by aggressive party. Under this rule, no matter what, there will be lawsuits. So I have to hand it to the Biden administration for at least stepping back, taking a cup of tea, holding their their pinky out like their English and going, we’re going to get sued. Let’s at least take a look at a rule. This is the first time I’ve heard that in years, Michael. I was pretty pleased. [00:10:07][60.2]

Michael Tanner: [00:10:08] I mean, we’ve had scrubbers around for years, though, so the fact that, like, people are resistant to, oh, maybe we shouldn’t try to make them better. Is kind of crazy, but you did a great job. What’s next? [00:10:16][8.6]

Stuart Turley: [00:10:17] Hey, Michael, the former U.N. staffer offers view on why sanctions on Moscow failed. This is really, really funny. Do you know why they failed, Michael? [00:10:27][9.8]

Michael Tanner: [00:10:28] No. That’s why we read this article. [00:10:29][1.3]

Stuart Turley: [00:10:30] Yeah, yeah, they got ahead. They got ready before, and they learned from Iran. That’s not what’s in the article. We beat this not out of Iran for years that you and I have talked about for years. Iran goes a burden. Here’s how you do it. And then Putin called him up and said, hey, here’s how we did it. Now listen to this. In its latest economic outlook, World Economic Outlook, published Tuesday by the IMF, projected that Russia’s economy would grow 3.2% in 2024, expecting the forecasted growth rates for the U.S., UK, Germany and France. Wow. Yeah, they did that because, you’re going to get it. You’re going to throw up the dirt, flee Iran telling them how they meet all the sanctions, and then Putin going, hey, here’s some other things. Oil is the number one way to do it. And this dovetails into now LNG is coming around the corner as also being able to avoid this. One of the key paragraphs in this article is in the bottom one, Michael. India has repeatedly stressed its resolve to maintain strong ties with Moscow despite Western objections, including criticisms of India’s purchase of oil and Russian oil. This is important because we are losing our allies India, Japan, Asia. All of these are happening because we have weaponized oil and the anybody that we sanction, we are gearing up on more sanctions in Iran, but yet we’ve given them $100 billion. Unbelievable. [00:12:19][108.9]

Michael Tanner: [00:12:21] Yeah. No, absolutely, absolutely. I do find it super, super fascinating. You know, that they obviously that they knew it was coming. I mean, obviously, maybe to someone like, like you. That makes sense. But what what’s interesting is that this article clearly points out that without India and China, none of this bypassing of sanctions would be possible. So it it is, you know, it shows it can be done. And I love the stat that you brought up that, the Russian economy is growing 3.2%, which is more than the US, UK, Germany and Russia. That’s funny. [00:12:54][33.1]

Stuart Turley: [00:12:55] It is. But, Russia is. It was several years ago. Energy exports. Listen to this. This is critical. Energy exports for Russia was about 35% of their GDP. And then that that was with, natural gas pipelines. After sanctions, it has increased with the Nord Stream being blown up. It is now in 37 to 39% GDP. Wow. [00:13:26][30.4]

Michael Tanner: [00:13:28] Kind of crazy. Kind of crazy. Speaking of LNG, let’s go to the next one. [00:13:32][4.7]

Stuart Turley: [00:13:33] Oman LNG signs a ten year gas supply agreement with Turkey’s Botas petroleum. Michael, this is critical because it dovetails into the previous discussion. And that is with Oman LNG announced Friday. the Turkey’s Botas petroleum will supply Michael 1 million metric tons per year of LNG for ten years. This is huge. this is also a subcontract a way around saying Turkey in there is a map that I’m going to take a look at you take a look at Turkey’s key infrastructure pipelines that are now in place. It now has its LNG import facility. You can now get into a lot of areas and get Russian LNG gas through this agreement through Oman. Oman and Russia have agreements. [00:14:32][58.9]

Michael Tanner: [00:14:36] Yeah. No, this is I mean, LNG is becoming the big leverage point around the world. We’ve seen this is the latest in a string of LNG agreements that Tar has done. Saudi Arabia has done so. There’s a continuing reliance. And and if here at home we have an export ban. If not it’s not an export ban. But we have a ban on building new facilities. If the world is going in the opposite direction, if the world is zigging, we’re zagging. And I like that. I love a good zig when you’re with someone else zigzagging. But I actually think in this case, the world is right and we’re going wrong. [00:15:12][36.0]

Stuart Turley: [00:15:13] It’s going to. It’s going to really set the world back. I mean, the U.S. back hugely. I just found this very, all these threads go together because last week we talked about Turkey becoming the, you know, energy thread is big because last week we talked about Turkey becoming the natural gas hub. This week this comes out. I mean, it’s all in threaded in with all sudden. Oh wait a minute. It also means that Russia is now has a better GDP growth than the EU. [00:15:47][34.2]

Michael Tanner: [00:15:49] Yeah. Very interesting. It’s it. [00:15:50][1.6]

Stuart Turley: [00:15:51] Oh my gosh. Welcome to Earth Day. [00:15:53][1.8]

Michael Tanner: [00:15:53] Earth day 2024. What else you got? [00:15:56][2.6]

Stuart Turley: [00:15:58] I’m ready to hit the bar already. [00:15:59][1.3]

Michael Tanner: [00:16:00] Yeah. No kidding. Well, we’ll we’ll quickly cover what went on in the oil and gas markets. But first we got to pay the bills here. Guys, as always, thank you for checking out energynewsbeat.com The best place for all your energy and oil and gas news. All the news and analysis you just heard is brought to you by that website. We appreciate everybody. Who’s reached out. Stu in the team do a tremendous job making sure that website is up to speed. Everything you need to know to be the tip of the spear when it comes to the energy in the oil and gas business, hit the description below. You can see all of the timestamps links to the articles and You can also check us out. Dashboard.EnergyNewsBeat.com the best place for all your data news combo. Got a lot of really cool stuff coming along with that, so please, please, please check us out there. [00:16:44][43.7]

Michael Tanner: [00:16:45] I mean it, this weekend was really quiet. Shoot. But I really want to go back to, you know, where we’re off on Friday. But Friday was really when we saw, the Israel response to Iran’s drone attack. And we saw in the morning we saw prices fly up from around $82 to just above did just below, excuse me, $86. Even in what I thought was going to be a continued. And I think what a lot of people thought was a continued going to be run up. Instead, sentiment completely turns on the other side. Oil goes ahead and drops well below $82 until rebounding to its basic court position. Where it stands here as we actually record this Sunday night, at about 80 to 11, with markets set to open here shortly. First off, I want I’m going to move it back to obviously oil this. The move in oil price was a showed that the market did not think whatever Israel did was too crazy of extraordinary response or was crazy enough because what this would show is nothing really happened. It was up and it was down. Talk us through what actually happened between Israel and Iran, because I think that’s going to give us a better sentiment or a better feel of what this crazy price action really hap did. [00:18:00][74.9]

Stuart Turley: [00:18:01] A the Iran, telegraphed and says, oh, we’re going to respond. They did. The US intercepted 75 of the ballpark, 300 and 25 missiles that were thrown at it. The iron, the Israeli Iron Dome got 1%, of the missiles got through. One child was hurt. Two Iranians were hurt in Iran when a a missile misfired in, in Iran and blew up. So the only Iranians in the strike against Israel, in retaliation, two Iranians killed from a misfired Israel attack. And everybody was worried. Are they going to attack the, Iranian oil, infrastructure, which Michael, they are doing about 400, 4.5 million barrels per day, 4 million barrels per day production in Iran. Are they going to take that out? Well, are they going to take out their nuclear facilities? Are they going to take out you know, they’re about four main target. Turns out Israel, Israel did do an attack and they attack their nuclear capabilities on their, their stuff. I have not seen a damage report like I would be expecting. So it’s kind of like everybody’s telegraphed attacks, and it’s kind of like two dogs that open the gate and start yelling at each other, and then the gate closes and then they really I don’t know what’s going on, dude. 1 or 2 things have been hit and they’ve been nuclear, and that’s it. [00:19:44][102.5]

Michael Tanner: [00:19:44] I mean, you hear the word nuclear. It scares me. That’s why I wanted you to kind of give a quick overview, because you’re right. From from an oil price perspective, nothing really happened. Overall, markets didn’t do much better. On Friday, we saw the S&P 500 drop about 8/10 of a percentage point. Nasdaq down over 2.2.05 percentage points, mainly because Tesla had to recall all of their cyber trucks because of a pedal issue. So that’s really dragging down, that I saw that ExxonMobil and Tesla now have the same market cap. Oh, how the turntables have come. [00:20:12][27.4]

Stuart Turley: [00:20:12] Isn’t that wild? [00:20:13][0.5]

Michael Tanner: [00:20:14] Very wild. Very wild. Ten year yields fall, 2/10 of a percentage point. Two year yields stay pretty steady. As I mentioned, crude oil, sitting just above $82. Brant oil, 87 and 31 price action, you know, looks to be a little bit soft here as the markets are about to open. So we will cover, get you covered, on Tuesday. Exactly. What happened? I mean, Stu, I it was pretty quiet from an oil price. From an oil market standpoint, other than kind of just the crazy price action. What else should people be worried about coming up this week? [00:20:45][30.9]

Stuart Turley: [00:20:45] You know, I used to think I would have an idea, but, I did not have Biden’s uncle getting eaten by cannibals on my bingo card this week, so anything was wide open, dude. [00:20:56][10.7]

Michael Tanner: [00:20:57] Yeah. No. Absolutely crazy. All right, guys, well, with that, we’ll let you get out of here. Get back to work. Appreciate everybody checking us out. Energy’s beat podcast. World’s greatest website energy news b.com. We’ll see you tomorrow, folks. [00:20:57][0.0][1205.6]

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