Blackrock LOVES Oil Now?

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Replacing a Talen Energy coal-fired power plant with battery storage is infeasible: PJM

Highlights of the Podcast

00:00 – Intro

01:15 – Replacing a Talen Energy coal-fired power plant with battery storage is infeasible: PJM

03:28 – GREGORY WRIGHTSTONE: Scientific Report Pours Cold Water On Major Talking Point Of Climate Activists

05:34 – Biden Administration Bans Fossil Fuels in Federal Buildings

07:22 – Surprise! The World’s biggest bankers are suddenly energy pragmatists

10:04 –  Oil steadies as ceasefire eludes Hamas, Israel

11:14 – Saudi Arabia’s Price Increase Could Indicate Oil Price Floor

14:04 – 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 Tuesday, May 7th, 2024 edition of the Daily Energy News Beat stand up. Here are today’s top headlines. First up, replacing a Talen Energy coal fired power plant with battery storage is infeasible, according to PJM. Unbelievable. Next up, friend of the show, Gregory writes Stone scientific report pours cold water on major talking points of climate activists. Next up, Biden administration bans fossil fuels in federal buildings. Unbelievable. Finally, in the news segment, surprised the world’s biggest bankers are suddenly energy pragmatists. Stu, Then toss it over to me. I will quickly cover what happened in the oil and gas markets today and cover what happened mainly with Saudi Arabia’s price increase, which, according to the article that we will cover, might indicate an oil price floor. We will cover all that and a bag of chips. Guys, as always, I am Michael Tanner, joined by Stuart Turley. Let’s kick it off. [00:01:14][60.1]

Stuart Turley: [00:01:15] Hey, let’s start with this one here. Replacing Talen Energy coal fired power plant with battery storage is infeasible. PJM. Well, let me read you this quote from BDM. While a large battery could reduce the severity and reliability concerns in the Baltimore Gas and Electric system following the eventual retirement of the Brandon Shores and Wagner units, the battery concept would not replace the needs for a reliability, run agreement or address the system reliable the needs in the near or longer term. Bottom line is it comes down in here and says it is highly unlikely that a battery system could be built by June 1st, 2025, when they’ve taken these out. You know, Holy smokes Michael, that is like it would also caused $1 billion to build a 600 megawatt, four hour battery system, more than the planned transmission upgrades and proposed battery storage. None of this is fiscal responsibility for PJM. [00:02:26][71.3]

Michael Tanner: [00:02:28] No, I mean, if you think shocker renewables are fiscally responsible, could have told you that. [00:02:33][4.7]

Stuart Turley: [00:02:33] Yeah. The, RFP, RC, approved and $796 million package of transmission projects to address the plant’s retirement. That doesn’t cover a cause. A fourth of what they need. [00:02:48][14.3]

Michael Tanner: [00:02:49] What I what I can’t figure out is why the Sierra Club’s got their fingerprints all over this. Aren’t they an environmental organization? [00:02:53][4.7]

Stuart Turley: [00:02:54] They’re supposed to, but they don’t realize that natural gas will have. Actually, if they allow natural gas instead of the battery to come in, it would actually save the planet and kids. [00:03:04][10.2]

Michael Tanner: [00:03:05] It would it it it it. [00:03:07][2.0]

Stuart Turley: [00:03:08] You know, the Sierra Club is is actually funded. I would like to go check if anybody is listening in the podcast. If George Soros is funding the Sierra Club, please send us a note. I would like to send them an invite to come on the podcast, because I think this is a despicable. [00:03:24][15.9]

Michael Tanner: [00:03:25] Yeah, absolutely. All right. What’s next? [00:03:27][1.7]

Stuart Turley: [00:03:28] Well, let’s go to our buddy over there, Gregory. Right. Stone, who’s the director over the CO2, coalition, is scientific report or is cold water a major talking point of climate activist? And, Mr. Producer, if you could bring up, our, Miss Greta there. I can’t pronounce that. Michael. Hi. In Texas, how would you say Jokic. look. You know I you know. [00:03:52][24.3]

Michael Tanner: [00:03:52] High school crass I don’t know I. [00:03:54][1.7]

Stuart Turley: [00:03:54] Don’t I don’t know. But anyway the purveyors of climate doom will not tolerate the good news of our planet thriving because of modest warming. This is actually pretty funny. Here’s a quote, from, The Lancet. Chan, public health. He says, the the potential health consequences are large, given that there’s already billions of people around the world who don’t get enough protein, vitamins, or other nutrients in their daily diet, concluded the, New York Times. Apocalypse ever. Yeah, it it’s unbelievable. It is so called greenhouse effect of carbon dioxide, perversely exaggerated to support climate fearmongering is a life saving temperature and moderator that keeps Earth from freezing over. The obvious benefits of CO2 is an embarrassment to the large and profitable movement to save the planet from carbon pollution, writes the authors. Of CO2 greatly benefits agriculture and forestry and has a small, benign effort on climate. It’s not a pollutant. [00:05:02][68.4]

Michael Tanner: [00:05:04] But I mean, we’ve been working and we were working with Gregory right Stone years ago when he was one of the first people to this he. Originally wrote a book. Then he came over and is now leading the CO2 college. He was one of the first people ahead of the game on this one. [00:05:19][14.7]

Stuart Turley: [00:05:19] Oh he is, and I yeah, I’ve already reached back out to him and said, hey, dude, it’s time to get you back on because we’re going to get him on the energy realities as well too. It’s a hoot. I got to give him a shout out for this one. [00:05:32][12.4]

Michael Tanner: [00:05:32] Yeah, absolutely. What’s next? [00:05:33][1.0]

Stuart Turley: [00:05:34] Speaking of fools, fossil fuels, Biden administration bans fossil fuels, in federal buildings. I’d like to read change that to the Turley administration. Bans fossil fuel. F o o l s. Anyway, the the the rule mandated by the Energy Independence and Security Act of 2007 required federal buildings to phase out fossil fuel by 2030. Cleaner energy. It means nothing. It just means that when they try to do a building, the Department of Energy is faced delays in implementing the rule due to opposition from natural gas utilities concerned about potentially business losses. The American National Gas Association criticizes the final rule. This is not about rule. It’s about the, utilities are not able to keep the lights on. Yeah. [00:06:36][62.2]

Michael Tanner: [00:06:37] It well, it’s I think this they’re going to end up obviously kicking the can down the road on this. It’s one of those things where they propose it. They’ll probably have an implementation period. And then when that implementation period comes up they’ll do kick the can down the road. [00:06:51][14.2]

Stuart Turley: [00:06:52] Oh yeah. But I really want to just say I have this story on here Michael. Just so I can say banned fossil fuels, not fuels. Absolutely. [00:07:00][8.0]

Michael Tanner: [00:07:01] And I love how Executive Order 1407 five and other for famous sustainability plans. The new rules aimed at goal giving net zero emissions by 2045. What happened to. I thought it was 2030? [00:07:12][11.5]

Stuart Turley: [00:07:14] They’re kicking the. Can they just put they launched it in a 105 millimeter and so on. All right. Hey, let’s go to the last one here. From a surprise, the world’s biggest bankers are suddenly energy pragmatics. I’ll tell you. JP Morgan, Blackrock are out of the climate banker cabal and admit net zero transition is delayed. I’ll tell you what. I think this is pretty amazing. Three of the four largest financial houses in February left the financial cabal called the climate 100. The fourth one left a year ago. Blackrock, JP Morgan and State Street all parted ways with the billionaire club. It’s pretty amazing. It’s coming apart. And now they’re saying, oh, wait a minute. We you and I talked about this for a year. They were classically kind of like sneaking in and doing closet investing in oil and gas. Now they’re pretty well. [00:08:13][59.3]

Michael Tanner: [00:08:14] BlackRock’s always done that. We know BlackRock’s always plausibly invest in oil and gas, but they’ve been hard on the ESG side. The interesting part is, you know, Jamie Dimon has sort of been on the forefront of a lot of this stuff. He’s come out. We saw him battling in front of the House. Committee. Was it last year when he said, you know, it’d be the road to hell in America if we if we ended up just sticking, and getting rid of oil and gas. So he’s always been on the forefront of some of this stuff. [00:08:43][29.0]

Stuart Turley: [00:08:44] Well, I do want to. I want to question Jamie Diamond. I’m either I’m hot and cold on Jamie. One day he’s. I’m over there rooting at him. That he’s standing up for what’s right. The next day, last Thursday, I saw him interviewed and he said, oh, by the way, the American consumers are still fine. They’re still living on their Covid money. How much money in Covid did you get? $2,400 two years ago? [00:09:15][31.4]

Michael Tanner: [00:09:15] Yeah. No one’s still living on their cold. [00:09:17][1.2]

Stuart Turley: [00:09:17] No, no. I was like, dude, what are you smoking anyway? So then you have Blackrock and, I just love this article. So anyway, thanks for letting me rant today. [00:09:28][10.9]

Michael Tanner: [00:09:29] Yeah. No, we’ll go ahead and pop over to finance here. Before we do that. Guys will pay the bills around here. As always, check us out. World’s greatest website www.energynewsbeat.com. All the news and analysis that you hear is brought to you by that website. Again Energy News Beat.com suing 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. You can also hit the description below links to all the articles and timestamps. If you are on Spotify and YouTube, you can also check us out. Dashboard.energynewsbeat.com [00:10:01][32.2]

Michael Tanner: [00:10:04] You know, in terms of the markets today, we saw about a one and a half, 1% increase in the S&P 500. Nasdaq up 1.1 percentage. We saw two and ten year yields. How pretty much flat. Dollar index basically flat. We saw Bitcoin drop about $500.60 $3,466. That’s off the having that happened last week. Crude oil saw modest gains were up to 7848 as the markets closed here. As we record this on Monday afternoon, it was up about four or 0.47 percentage points. So just shy of about a half a percentage point, mainly as as you know, it comes down to there’s there’s a couple things pulling on this. As we’ve talked about, there’s a lot of stuff pulling on the supply and demand projections. A lot of this being what’s going on in Gaza right now. It looks like the cease fire that was going to happen that they had maybe agreed upon seemed to have have pulled back a little bit. And that may or may not happen now, at least the market sentiment that way. So we did see a little bit of reversal after really what was three straight weeks of of of oil and gas prices actually getting pounded, you know, to kind of that ties in with what prices are doing. Saudi Arabia’s price increase could indicate an oil price floor. This is the next article I want to cover over the weekend to the state owned. And I’m reading straight from the article here. State owned Saudi Aramco raised the June official selling price of the Arab Light crude for customers in Asia by $0.90 to $2.90 a barrel, above the regional Oman Dubai benchmark. And this, according to Bloomberg. That compares with an increase of $0.60 forecasted in a Bloomberg survey of six refiners prices. If we can go and, drop that, table right there, you can see the other price changes for all of the the other grades from super light all the way down to heavy. The interesting part is, is what this shows and what they’re, they’re, they’re, they’re keeping that is that. And this is kind of against driven article. The hike highlights Saudi Arabia’s efforts to keep the market tight amid the fading war risk in the Middle East, which has helped drive oil prices lower. Most traders, analysts predict. And this is the key that OPEC and the signal of these raising the official selling price, and that is that OPEC in the Petro, OPEC and its allies will extend their cuts potentially to the end of the year. And, you know, this is a I’m trying to find the guy’s name here. Bloomberg Markets Live reporter Garfield Reynolds. He says that there’s a decent chance it’s busy finding a new floor rather than settling for its sustain declines, and notes that the Israel-hamas agree on a truce. This would likely set off a rapid fresh drop in the short term for crude. So Saudi Arabia, possibly by raising this official selling price, he’s trying to set a floor on where oil prices could be, whether that 70 or $75. It’s going to be interesting. You know, obviously the war in Gaza will eventually come to a conclusion one way or the other. At least we hope so. So the question is, is Saudi and what is OPEC doing in the short term. Do you tend to support that. It looks like they may come out and go ahead and extend these cuts through the end of the year. But but that that’s going to be interesting. And how that plays in with the overall economy has remains to be seen. So I think it’s interesting, stew, and I do think that, as we continue to roll and learn more information every day, we’re learning more information about where prices might go. It’s it’s it’s getting spicy out there. And I think. [00:13:26][201.6]

Stuart Turley: [00:13:26] It is and I think that, Saudi Aramco another article Michael came out and Saudi Aramco talks in talks to buy shell gas stations in Malaysia. So what we’re seeing is some of the big oil companies like total like Saudi Aramco with state owned Saudi Aramco buying other downstream asset in order to help offset some of their business so that they can still bring profits in. [00:13:55][28.9]

Michael Tanner: [00:13:56] Yeah, it it it really does. And you know it I think the answer remains to be seen. And as always we’ll continue to learn more information. kind of short for us. Do you got anything else? [00:14:06][10.3]

Stuart Turley: [00:14:07] No. Buckle up. It’s going to be entertaining. [00:14:08][1.6]

Michael Tanner: [00:14:09] That it will. So we’ll let you guys get out of here on a short show. Appreciate everybody checking us out here on the world’s greatest podcast Energy News Beat. Thanks for checking out as always www,energynewsbeat.com. Until tomorrow folks. We’ll see you then. [00:14:09][0.0][809.5]

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