Source: ENB
Daily Standup Top Stories
The DOE Is Stonewalling On Residential Energy Costs And Its Electrify Everything Push
In 2022, the Biden administration held an “electrification summit” at the White House. The goal of the meeting, which included top White House officials, as well as leaders of various NGOs, including the American Federation […]
Republicans Most Trusted on Energy Policy as U.S. Election Nears—But Barely
Energy has become a hot-button issue as voters prepare to head to the polls, with Republicans gaining a narrow upperhand. According to a recent Rasmussen poll, 82% of likely U.S. voters see energy policy as an important […]
Highlights of the Podcast
00:00 – Intro
01:15 – The DOE Is Stonewalling On Residential Energy Costs And Its Electrify Everything Push
04:18 – Republicans Most Trusted on Energy Policy as U.S. Election Nears—But Barely
06:48 – Markets Update
08:50 – U.S. API Weekly Crude Oil Stock
09:20 – Chevron Announces US$6.5 bn Sale of Its Interests in the Athabasca Oil Sands Project and Duvernay Shale
10:42 – Outro
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Video Transcription edited for grammar. We disavow any errors unless they make us look better or smarter.
Michael Tanner: [00:00:10] What’s going on, everybody? Welcome in to the Wednesday, October 9th, 2024, edition of the Daily Energy News. Beat Stand up. Here are today’s top headlines. First up from our good friend of the show, Robert Bryce. The DOJ is stonewalling on residential energy costs and it’s electrify everything. Push really, really great in-depth article here. Next up, Republicans most trusted on energy policy as U.S. election year but barely super interesting overview will then jump over and quickly cover what happened in the oil and gas markets today. Crude on a massive swing on a bunch of geopolitical news going on right now. We’ll try to keep you up to speed with that. API crude oil inventories show a huge, huge build. And then finally, Chevron yesterday actually announced that they’re selling down about $6.5 billion worth of oil sands and DuVernay Shale over to Canadian natural Resources. So we will cover all of that. And a bag of chips, guys. Stu is out on assignment, so I am rocking a solo show today. Let’s go ahead and kick it off. [00:01:14][64.3]
Michael Tanner: [00:01:15] First up from our good friend Robert Bryce. The Dow is stonewalling on residential energy costs and it’s electrify everything. It’s pretty, pretty crazy here. So basically what this article goes on to say. One is that they’re rolling out a bunch of new rules on, you know, go forward electrification. They just the EPA and the Department of Energy just released the new definition of zero emission buildings. And what that basically means is that the buildings need to be free of on site emissions from energy use. And I love this little quote from the article. It doesn’t take a mechanical engineer to understand that the definition precludes using a boiler or furnace that burns hydrocarbons. You know, the agency did push back a little bit and said that this is not a regulatory standard. But they do go on to note, however, that eight major green building facility certifications have been agreed and that they, quote, embed or align the exceeded the zero emission definition within their certification. Basically what that means is that the Doe has adopted this definition that really isn’t a regulation, but will basically force companies and force people to use those green use that non regulation as a regulation. It’s another example of Stew always likes to talk about legislation you let through regulation I think discharge really interesting. Ms. Producer we don’t mind throwing this up. Electrify everything. Who pays? This is according to the Doe, the energy equivalent residential energy cost from August 2023. Natural gas is the lowest of $14. Heating oil the second lowest at 28. Propane is at 33, kerosene is at 34 and electricity is at $46. This is obviously on a per amp BTU basis. And basically what he goes on to say here is that they haven’t released the 2024 numbers and, you know, 2020, you know, basically going back all the way to 2011, these were released sometime in March and April. Last year was the first time it wasn’t published until August. And we just saw that little chart here. It doesn’t look good for electricity. And basically they haven’t released it this year. It’s October 8th and they haven’t heard anything. It’s pretty unbelievable. They keep saying, it’s imminent, it’s imminent, intimate. And basically the assumption that Roberts saying here that I agree with this, you know, they don’t want to release this because it’s not going to look good. Electrifying. Everything is going to cost more. It’s going to be driving cars up and we’re in an election. So they don’t necessarily want to make the vice president, Kamala Harris, look worse than it already is. And this is I love this here. The unfortunate punchline here is obviously the Doe has politicized its legally required reporting requirements. Who refuses to publish the residential energy price data Because the numbers will be embarrassing for the Doe and the Biden administration at the very moment Vice President Harris is vying to be the next president. And I love that he always ends with this. I may be mistaken about this, but until the Doe he proves me wrong, I will remain convinced that the agency is stonewalling. And you know what? They’re probably right. Okay. He’s got nothing there. [00:04:17][182.6]
Michael Tanner: [00:04:18] Let’s go ahead and move to the next one. Republicans most Trusted on Energy Policy as U.S. Election Nears, but barely. As we all know, energy has become a huge hot button issue as as we all head to the polls here in September. You know, it’s really crazy to think about 82% of people agree that energy is an important factor, yet it’s split basically down the middle 50. And I don’t know who this undecided 12% are. You know, they probably you know, they’re undecided on everything. I can’t figure out what they’re going to eat for dinner tonight, let alone who they’re going to vote for or they care about from an energy policy standpoint. But it goes to show how divided really this is. And I think it’s really interesting, You know, people will latch on to whatever their preconceived notions are and and just kind of go there. I think, you know, from my perspective, my bias is I’m going to it’s I’m going to lean way right on this, I believe. That energy affordability, energy security are the two reasons why we need to invest more in fossil fuels. We’re seeing that right now. If you really want to drive the cost down of energy, go back to what we talked about in the last article with Robert Bryce. The cheapest on a ambito basis is straight natural gas, not necessary electricity. So it’s energy is an important part of this election. It’s going to be very interesting to see how it all all shakes out. [00:05:36][78.1]
Michael Tanner: [00:05:36] Let’s go ahead and jump over into finance, guys. Before we do that, we have to pay the bills, as always. Thank you for checking us out on the world’s greatest website. www.Energy news beat.com Stu and the team do a tremendous job making sure that website stays up to speed. Everything you need to know to be the tip of the spear when it comes to the energy and the oil and gas business. Go ahead and hit that description below for all links to the timestamps. Links to the articles. Check us out on substack and if you are interested in getting involved in our direct working interest project. If you’ve always wanted to become an oil man, if you’ve always wanted to invest in oil or gas, but more importantly, you’ve always wanted a little extra income on the side. And if you’ve all and if you have a tax burden, please check out invest in oil dot energy newsbeat.com. That’s invest in oil energy news beat.com is a great way again if you have a tax burden you are dumb for not looking at oil and gas is a way to offset your income. You’re stupid. I’m telling you that right now. If you have a tax problem and you haven’t looked at oil and gas as a way to offset your taxable income, you’re an idiot. Check it out. Go to energy news. Invest in oil. That energy news because we will get you all the information you need to know to lower your tax burden, make a little bit of cash, and more importantly, become an oil man. [00:06:47][71.0]
Michael Tanner: [00:06:48] Pretty crazy day on the markets here, guys. We’ll just run through the top line numbers here. S&P 500 was up about a full percentage point. Nasdaq was up about 1.5 percentage points to a ten year yield’s. Basically flat dollar index, again, basically flat. Bitcoin basically flat, still at $62,000. We did see crude oil. I mean, talk about it. Talk about a heck of a day, folks. We started above $78 only this year. More and more sort of, you know, calming geopolitical news drive us down to at one point below 73, we’re currently sitting at 73, 92, kind of bouncing around that $74 mark. Natural gas fairly flat today. It’s only down about three quarters of a percentage point. Most a big drop occurred a few days ago. As everybody is prepping for Milton, I want to say that right away. If anybody listening to this is in the pathway of Milton, our thoughts and our prayers are with you. Obviously, with the devastation that happened with Helene that just happened with Helene, it’s it’s going to be a pretty back to back is never never good. And we will and and we really, really hope that all things stay solid there and and again everybody and introduce our thoughts and prayers are with you but again from 4% on the day a lot of that has to do with the Hezbollah Israel ceasefire negotiations that are going down right now. There there may or may not be a cease fire there, though, on the kind of counter that Israel is talking about, maybe bombing some Iranian oil infrastructure, which which could be absolutely crazy. Another article I didn’t talk about on the show, but that we ran on energy use, which specifically had to do with the fact that there’s still oil coming out of the car export terminal, which is that big island there in in Iran, which they send a lot of stuff on. Girl John Kilduff, he’s a partner of it again capital again name that movie again Miracle great movie will continue to be very headline dependent. This morning we heard about a general cease fire then we got indication targets are being dialed in and the energy targets are in the mix. I mean, pretty you know. Wow. Just a just it’s such a deep quote. Thanks, John. I mean, just deep, deep intellectual insight there. So thank you, John, for wasting all of our times with that one. [00:08:49][121.4]
Michael Tanner: [00:08:50] We did see the API crude oil inventory numbers come out. Their guesstimate of what the EIA will produce the day on Wednesday. As you listeners, they claim a 10.9 million barrel build. Unbelievable relative to what the forecast was, about 2 million barrels. A lot of that has to do with the stuff that happened from the hurricane. It’s hard to get crude oil out. And, you know, a lot of crude gets stored up if we can’t necessarily ship it to the East Coast and or Florida. So that number a little bit may be more inflated than it needs to be, but pretty wild number. [00:09:19][29.4]
Michael Tanner: [00:09:20] The other interesting thing, I saw this actually happen on Monday as you guys are. Listen to this. On Wednesday, Chevron announced a $6.5 billion sale of its interest in the oil sands up there in Alaska and their non-operated 20 and their 7% their 70% operated interest in a due Renee Shale along with some other related interest, all located in the great province of Alberta, the last sane province in Canada. And they sold that to the Canadian Natural Resources Company. It’s an all cash transaction of $6.5 billion and effective date of September 1st and theoretically should close sometime in the fourth quarter, subject subject to a bunch of regulatory approvals. You know, the assets that are in this agreement contribute about 84,000 BOE of production outside of royalties. That’s what Chevron made off of that in 2012. Pretty substantial project there. This basically goes along with what Chevron has already announced, which is somewhere in that 10 to $15 billion divestiture range as their quote unquote attempt to optimize its global energy portfolio with means. They’re just trying to double down on stuff they like, probably some offshore stuff, probably some real estate in the Permian. Obviously, with their potential acquisition of Hess trying to get access to Guyana. So, you know, they continue to kind of play the courts. You know, obviously what’s happening in the background is this Hess deal. Maybe this was a little bit of a sale to get some cash for that deal. Right,. [00:10:41][81.7]
Michael Tanner: [00:10:42] Guys, That’s really all I got. Nothing too crazy. Appreciate everybody checking us out here on the world’s greatest podcast. For Stuart Turley, I’m Michael Tanner. We will see you tomorrow, folks. [00:10:42][0.0][628.3]
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