Highlights of the Podcast
00:00 – Intro
01:23 – Sinopec, PetroChina Hit Hard by China’s Slowing Oil Demand
02:42 – Oil Steady After EIA Confirms Draw in Crude, Gasoline Inventories
03:41 – What Are Russia And Iran Cooking Up In Their Recent Flurry Of High-Level Meeting
05:12 – Ford Lost Another $58K For Every EV Sold In Third Quarter, Or $1.2 Billion
07:04 – California Targets ExxonMobil’s Plastic Recycling Claims In Latest Lawfare Against Big Oil
07:58 – Outro
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Video Transcription edited for grammar. We disavow any errors unless they make us look better or smarter.
Stuart Turley: [00:00:10] Hello, everybody. Welcome. The Energy News Beat daily. Stand up. Today is Halloween. Welcome And buckle up. We’ve got a show lined up for you guys. Let’s start with sinopec Petro China. Hit hard by China’s slow growing oil demand. Next came around the corner. We have oil steady after EIA confirms drop down in crude and gasoline inventories. So seasonal or just good economy? I don’t know. What are Russia and Iran cooking up in their recent flurry of high level meetings? Buckle up. You can’t beat a good TV story. Ford lost another 58,000 additional for every TV sold in the third quarter or $1.2 billion. Man let’s keep going on the lawfare here. Let’s take a look at California targets. ExxonMobil’s plastic recycling claims in its latest lawfare against big oil. Do not do business in California. Leave the state now. [00:01:23][72.7]
Stuart Turley: [00:01:23] Let’s go to Sinopec. Our first story here. Sinopec Petro China hit hard by China’s oil demand. China’s two largest refiners, Synoptic and Petro China, have reported steep declines in refining output as domestic oil demand weakened further in the third quarter. This goes along with the EIA story as well. Lower refining and chemicals demand contributed to a sharp drop in the third quarter profit 1.3 billion from a year ago year on year. That’s a lot of yarn. Petro China, whose parent company, China National Petroleum, is the country’s largest upstream producer. China’s oil demand fell 264,000 barrels per day to 15.52 million barrels per day during the quarter versus the previous three months and was 362,000 barrels per day lower on year on year. That’s pretty wild. Diesel has also cut diesel cut production by 14.2% from a year ago. Now I see that is a very big deal. But I also see that as they’re still buying all the oil they can and packing it wherever they can. [00:02:42][78.5]
Stuart Turley: [00:02:42] So oil is steady, though, after EIA confirms a draw in crude gasoline inventories. At the time of the writing, Brant was at 68 with WTI at 6829 and Brant was trading at 7225. The change in oil stocks compared with a build of 5.5 million barrels for the previous week, which pressured oil prices at additional. The American Petroleum Institute, meanwhile, on Tuesday reported estimated inventory draws across crude and fuels, helping prices move higher for a time as gasoline stocks shed 27 million barrels on the week of October 25th, with production at 9.7 million barrels per day. This is from my Arrhenius lab over at Oil Price, fantastic publication, as well as Irina Lovi Arena. Talk to her on Monday. [00:03:40][57.9]
Stuart Turley: [00:03:41] Let’s go to the next story. What are Russia and Iran cooking up with the recent flurry of high level meetings? This one I really like, Simon Watkins. He is also writing for Oilprice.com. When you take a look at the three big bullet points of this article, Russia and Iran recently held high level meetings to strengthen their 20 year cooperation treaty. Both countries aim to reduce reliance on the U.S. dollar in international trade, especially with key partners like China. And a proposed landbridge through the Middle East would enable Russia and Iran to expand their influence in transport routes. This is critical. I’ve been talking to George Macmillan and others around the world about the geopolitical structure going on around the world and pipelines and oil and assignment really hit it out of the park in this article. The unbelievable Iran and Russia are working together now. Israel did take out much of their air defenses in this past week. So they’re, I’m sure, going to be getting some more of that equipment in from Russia as well. But as I said, bookmark this podcast because we will see an end to the Ukraine war. We will see the EU buying Russian gas in 2025. So but. We’re going to see an end to the war before that so that they can get it done. [00:05:11][90.4]
Stuart Turley: [00:05:12] Let’s keep rolling on here. Ford lost another 58 K for every V sold and in the third quarter or $1.2 billion. You can’t buy this kind of entertainment. The 1.2 billion Q three loss brings its 2024 hit to $3.7 billion loss. Holy smokes. Demand struggles, high cost and charging issues. Still dodging the EV push. I think that Tesla and Elon are going to be the last man standing in the eve if we market in the U.S.. We need to go to. I’ll tell you what. We have got to go. Instead of like Thelma and Louise off a cliff. We need to go to the first one that comes out with a good truck. A hybrid model will be the winner in the EV market. I guarantee it, because I consider hybrids pretty close to EVs. And I think that that’s going to be a big difference. The $3.7 billion loss is equal to the gross profit. Ford calls it e b I’d short for earnings before interest and taxes. It made on for blue the division that makes internal combustion cars. So internal combustion cars, everything was wiped out by the EV side. Holy smokes, that man. I do want a cybertruck. I just want to go on record because I think everybody needs a bulletproof car. So take a Ford three 350 internal combustion and make it bulletproof. Or buy a Cybertruck. I don’t know. I think I’m going to buy a Ford 250 and then buy a cybertruck and be at the same price point. That way I get two vehicles. I feel good for helping the environment. [00:07:03][111.8]
Stuart Turley: [00:07:04] Let’s go to California’s targets, ExxonMobil’s plastic recycling claims and its lawfare against big oil. You can’t buy this kind of stuff. Exxon knew the battle cry was inflamed, inspired climate activist for decades since the 1970s. They allege Exxon knew the human caused climate change was real but lied about it. And there was a war and a crisis and kept marking this planet. Killing fuels and petrochemicals feedstocks. What a bunch of malarkey. And this is nothing more than placating their voter base in California. My advice to Exxon. Leave the state. Let them suffer. They’re going to end up buying all their petroleum products and their oil and their gas from China. Mark my words. [00:07:58][53.9]
Stuart Turley: [00:07:58] So with that, like subscribe share. Read this too. Your pets hug your kids. But more importantly, also, if you are coming up into the tax season and you’re afraid of paying our government, which I don’t like paying our government, I like getting a K-1. We are partnered with Pecos operating partners and my return on my investments are getting about 32% right now. That’s not bad. I like having a cash flow, a monthly check from production of oil and gas. Oil and gas is here to stay for a while and give us a call. The contact information is in the show notes. I have an absolutely fantastic day and we will talk to you guys soon. [00:07:58][0.0][465.2]
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