Source: ENB
Daily Standup Top Stories
Why BP’s Elimination Of 2030 Oil Reduction Target Is No Real Surprise
British oil giant BP continued efforts to adjust its business plans to make itself more competitive with peer companies Monday, announcing it will abandon a goal of reducing its equity oil production by 2030. Originally […]
Top Kazakh oil field hits record output amid tensions with OPEC+, sources say
MOSCOW, Oct 9 (Reuters) – Kazakhstan’s biggest oil field Tengiz, operated by U.S. major Chevron (CVX.N),, boosted output to a record high in October, sources told Reuters, potentially complicating the country’s future efforts to comply with […]
Projected Supply Deficits For Key Energy Transition Metals
The demand for clean energy metals will grow by more than 400% by 2030, according to the Energy Transitions Commission (ETC). Supply, however, is not on track to keep up with this surging demand. […]
Chevron Sends Letter to CA Legislature Lambasting Newsom’s Oil/Gas Proposal
Chevron President Andy Walz sent a letter Tuesday condemning Gov. Gavin Newsom’s proposal to decrease the state’s gas supply, which will clearly result in even higher gas prices at the pump, saying he seeks to […]
Kamala Says She Won’t Enforce an EV Mandate After Years Of Pushing For One
Whatever Harris is saying to Michiganders, the Biden-Harris admin is telling you that your choice in cars is going to be constrained. Kamala Harris is an automotive libertarian, or so she maintains. [emphasis, links added] […]
Highlights of the Podcast
00:00 – Intro
01:29 – Why BP’s Elimination Of 2030 Oil Reduction Target Is No Real Surprise
04:58 – Top Kazakh oil field hits record output amid tensions with OPEC+, sources say
06:25 – Projected Supply Deficits For Key Energy Transition Metals
08:38 – Chevron Sends Letter to CA Legislature Lambasting Newsom’s Oil/Gas Proposal
10:48 – Kamala Says She Won’t Enforce an EV Mandate After Years Of Pushing For One
15:21 – Markets Update
16:49 – Crude oil inventory
19:45 – 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. Including the Thursday, October 10th, 2024, edition of the Daily Energy News Beat Stand. Here are today’s top headlines. First up, why BP’s elimination of 2030 oil reduction target is no real surprise. Next up, Haziq Hasakah. I don’t know what that means, but top field in the Middle East. Top oil field hits record output amid tensions with OPEC. Sources say that’s in what states that is that in a second. So we’re causing time there. So I love it. Next up, projected supply deficits for key energy transition metals. If you’ve been listening to the show for three years, we told you that. Next on Chevron sends letter to California legislator lambasting Newsom’s oil and gas proposal, our favorite state. And then finally, Kamala says she won’t enforce an EV mandate after years of pushing for one flip flop. Flip flop, as we always know. We’ll dive into all of that stool, then toss it to me. I will quickly cover what happened in the oil and gas markets and lightly touch on some of the stuff we heard from the EIA. Otherwise was really quiet on the finance front. So we will cover all that and a bag of chips, guys. As always, I am Michael Tanner, joined by
Where do you want to begin? [00:01:28][78.1]
Stuart Turley: [00:01:29] And let’s ramble over here to why BP’s elimination of 2030 oil reduction target is no real surprise. This is from our buddy over there, David Blackman, on his substack. British oil giant continues efforts to adjust its business plan to make itself more compatible with peer companies. Translation they need to keep up with Texas and Chevron and excellent. They miss the boat. Elimination of the targeted production cuts allows for a series of moves earlier in 2024. I think what they did is they actually also said peak oil is not going to happen in their big BP output. This is a follow along to that to no one’s real surprise Reaction to BP’s latest move from the anti fossil fuel activist community was swift and aggressive. The Guardian quotes Greenpeace UK senior climate manager Philip Evans as saying, quote, This is yet further proof we cannot leave the future of our planet in the hands of fossil fuel bosses. It’s clear that BP CEO Murray Akin’s class has hell bent on prioritizing company profits and shareholder wealth above all else, as extreme floods and wildfires rack up billions of dollars in damages, destroying homes and lives all over the world. Oil companies cannot be trusted to curtail their further destruction of the planet, unquote. [00:02:56][87.0]
Michael Tanner: [00:02:56] What I find hilarious is that these are the same guys that do the BP energy outlook. And basically every year it’s doom and gloom for oil and gas. Yet the CEO of the same call, this guy Murray Atchison, used to be the CFO, is paying all of the bills for this oil outlook report and they don’t follow a darn sentence of it, which I find just hilarious if it goes to show you. You know, what you say over here isn’t necessarily what you do over here. It’s unbelievable. I mean, again, as the title said, no real surprise, especially where oil prices are relative to where BP’s acreage is. I mean, they talk about getting back into the Gulf of Mexico. They talk about diving in with BP and maybe getting a little bit more into the Permian. I mean, why would you not? So it just it cracks me up. [00:03:48][51.3]
Stuart Turley: [00:03:48] That they just sold off a bunch of stuff there when assets and stuff and they’re bailing out of renewable energy to go back to their core. [00:03:57][8.4]
Michael Tanner: [00:03:57] Yeah, I mean they obviously they still have about ten U.S. onshore wind operations through its subsidiary, BP wind energy. He also did you know this this Marine auction close also did go ahead and say they’re looking at acquiring the remaining 50% of that joint venture they have. That’s called Lightsource BP. So they’re not it’s not an outright abandonment. Obviously, they’re in the UK. They can’t quite abandon it. You’re going to got to keep yourselves as an arm. You’re going to got to keep yourself at least an arm’s reach away from it. You always pull it in is out. We got a little bit. We got a little bit, yeah. We’re also going to spend $1 billion in the Gulf of Mexico and we’re going to go buy a couple million dollars worth of Permian stuff. So it’s just it’s funny, but hey, I give them credit for for, you know, what is it, the Star Wars, what you do, what must be done. Sometimes you got got to do. [00:04:41][43.8]
Stuart Turley: [00:04:42] And I’ll tell you what they they learn from Exxon and Chevron and and that is they got to get back to the money and their shareholders and the UK is going to force them out of the UK. Just watch what happens. [00:04:54][12.4]
Michael Tanner: [00:04:55] Well welcome with open arms here. What’s next? Well, let’s. [00:04:57][2.6]
Stuart Turley: [00:04:58] Go to the next story, Michael. Top Kazakhstan oilfield hits record output amid tensions with OPEC. Plus, sources say this is out of Moscow, Reuters, Reuters, as we said. Kazakhstan’s biggest oilfield tank is operated by us. Speaking of Chevron, operator boosted output to a record high in October and they are the not as OPEC plus’s named top ten global oil producer Kazakh because Kazakhstan with Iraq and Russia as countries that have repeatedly failed to comply with its pledges to curb co-production. If you take a look at the numbers, they’re pretty big. They’re actually going to go from 699,000 to another 850,000 is where they’re gonna go. They’re going to produce what they can to make money. Yeah. [00:05:45][47.8]
Michael Tanner: [00:05:46] And I mean, who owns 50% of that project? Chevron. Who owns another 25% Exxon. So you can’t all these companies, you know, they’re signaling something over here. But what they’re doing over here and trust me, they’re not worried about emissions over in Kazakhstan. I promise you that much. No. [00:06:04][17.8]
Stuart Turley: [00:06:04] I think it’s pretty funny. OPEC has lost the ability to control its members. But it’s. [00:06:10][5.7]
Michael Tanner: [00:06:10] Bit crazy. They expect, you know, Chevron came and said inspect 850,000 barrels of oil per day out of this prospect. I mean, that’s huge. [00:06:17][7.2]
Stuart Turley: [00:06:19] Huge. [00:06:19][0.0]
Michael Tanner: [00:06:19] Bigger than Guyana. It’s bigger than it’s more than what God is doing right now. Now, maybe not for long, but still. [00:06:24][4.4]
Stuart Turley: [00:06:24] I think it’s great. Pump all the oil they can project and supply deficits for key energy transmissions metals. This is an amazing from the visual capitalists. Look at these numbers, Michael. Cobalt and graphite is $85 billion deficit that we need just to mine those. We’re down $120 billion in investments in order to get the lithium. We’re down $80 billion in nickel. And for a school of mines finance guy, this reeks of like, holy smokes, Batman. There’s going to be some high priced minerals coming around the corner, don’t you think? [00:07:11][47.1]
Michael Tanner: [00:07:12] Well, yeah, I mean, we we’ve got a white paper on this three years ago talking specifically about this stuff. As you know, you can’t get this stuff out of the ground fast enough considering this is what people need. So pretty, you know, again, not not not to shout out our own research, mines, mineral models, some white papers. We’re an energy news beat.com. But there is some absolutely great great stuff in that stuff. And basically what we do is we explain this. We basically if you’re, you know, not to get nerdy, but we run your traditional capital asset model over this and say, wait a second, there is a massive one under investment in these metals considering the fact that the supply is about to shoot upward. So, you know, as always, the government screwed up when they came to prioritizing this stuff. They are spending all their time trying to make sure we have wind and solar when wind and solar rely on the metals. And you should have been funding the mines and then maybe the wind and solar farms might have had a better chance of being economical. [00:08:08][56.0]
Stuart Turley: [00:08:08] And, you know, you know, China went after the mines first. They got their supply chains done. They got their battery cost. That half of where we are are by doing the supply line. First they pulled a Exxon Chevron on the U.S. They did. [00:08:24][15.8]
Michael Tanner: [00:08:24] They did a willow bait and switch on us. We love it. But if you want access to that white paper, that capital asset pricing model to shoot me a message LinkedIn or shoot me an email links in the description, but we’ll get that to you. Speaking of Chevron, let’s go to California, our favorite state. [00:08:37][13.0]
Stuart Turley: [00:08:38] My goodness. Wait a minute. I think this is Newsom. He’s about to take a bath. Don’t take a bath, Governor Newsom, We do not need an oil slick. Chevron sends letter and California legislator lambasting Newsom’s oil and gas proposal. He single handedly could solve the oil crisis. You know, that is just amazing. California’s own Chevron Oil company announced August their corporate relocation to Houston, which is absolutely another blow for taxes. Billions of dollars is going to be lost in that. Here’s where it gets. Newsom accused Chevron and the claim refiners did not adequately prepare for maintenance events by increasing inventories. Imports. We do not speak for other refineries. We believe this to be uniform. Governor’s proposal will give the California Energy Commission more authority to impose new mandates for oil storage requirements on oil refineries in California, even as California is on the verge of an energy crisis. That’s all they need. [00:09:44][66.1]
Michael Tanner: [00:09:45] I can’t get my mind off of Newsom jumping in a bath. That’s that’s killin me. [00:09:49][4.1]
Stuart Turley: [00:09:50] Talk about a dirty bathtub ring. Holy smokes, That’d be perma oil. I want to. [00:09:56][6.3]
Michael Tanner: [00:09:56] Hear the call. That’s truly oil based drilling, right? [00:09:59][3.0]
Stuart Turley: [00:10:01] Snap. [00:10:01][0.0]
Michael Tanner: [00:10:02] Yeah. Again, you know, in all seriousness, it’s all a dog and pony show over there in California. They’re just talk, talk, talk big. Oil stocks, big oil stocks. Know, is this actually going to happen? No, it’s not going to there’s nothing is going to come of this. [00:10:14][12.3]
Stuart Turley: [00:10:15] No. And then they import oil from Iran, Kazakhstan, you know, China. And they don’t have very good ecological stuff. So they’re doing more harm to the environment by importing from all these bad players around the world. [00:10:30][15.2]
Michael Tanner: [00:10:31] Why are there gas prices so high tax? And because of price gouging? It’s because of the record. They have the highest gas tax in the country. [00:10:39][8.4]
Stuart Turley: [00:10:40] Yes. Hey, when you got that kind of hair, you got the tax for it. You got the tax. This is the tax. Look right here. Yeah. Let’s go to Kamala here. Speaking of taxing. Kamala says she won’t enforce an EV mandate after years of pushing for one. Holy smokes, Batman. Quote, Contrary to what my opponent is suggesting, I will never tell you what kind of car you are to drive, said the vice president at a campaign stop in Michigan. She will, however, favor regulations to drastically change the mix of gas powered electric cars that are manufactured in the United States. This goes to her her methodology of the Harris Biden administration currently under right now, and that is legislation through regulatory action. And they she can say what she wants. She just tells her DOJ and EPA to go do this and they’re going to mandate this crap to happen. [00:11:36][56.1]
Michael Tanner: [00:11:36] Again, I come back to what I always say You are allowed to change your mind. I actually think people should change their mind because that means you’re less wrong today as you were yesterday. The what I have an issue with is just flip flopping for political purposes. Yeah, I’m not going to go out and I can’t get into VP Harris’s mind and figure out which one it is. But I have a I do believe I have a slight inkling that it’s the latter and not the former, meaning probably it’s for political purposes, but who knows? Again, you’re allowed to change your mind. I change my mind all the time, and I like to think that makes me smart because it means I’m, again, new as I was yesterday. The question I’m. [00:12:15][39.2]
Stuart Turley: [00:12:16] Going to just give you this, Michael. Here’s a little feedback from an old guy to a young guy. You change your mind only when you see facts and you analyze the data and you do that extremely well. You’ve also got testosterone running through your veins at a very nice level. You are not female. My wife changes her mind every 15 minutes. Dude, thank God you are not my wife. [00:12:44][27.6]
Michael Tanner: [00:12:45] And. [00:12:45][0.0]
Stuart Turley: [00:12:45] You change your mind based off logical reasons. And that justified if she just came out and said, Here’s why I’m changing my mind, you and I might be inclined to listen. [00:12:57][11.4]
Michael Tanner: [00:12:57] Well, yeah. And again, I think most of this is politics, but yes, thank goodness I’m not your wife. [00:13:02][4.4]
Stuart Turley: [00:13:02] My work wife, maybe, but not my wife. [00:13:04][1.7]
Michael Tanner: [00:13:05] Yeah. No, she’s she’s in a she is an angel because she’s got to be married to you. Holy smokes. [00:13:10][5.2]
Stuart Turley: [00:13:11] I meant to give you a compliment that came out like a backhanded. Holy smokes, Batman. [00:13:14][3.3]
Michael Tanner: [00:13:15] Is what happens when you do a show for three, four years running. You go ahead, say something stupid. But is that it? What else you got? [00:13:22][7.0]
Stuart Turley: [00:13:22] That’s it for me right now. [00:13:23][0.8]
Michael Tanner: [00:13:24] I will go ahead and jump over into the finance section, guys. But as always, we need to pay the bills. They are checking us out on the world’s greatest website. www.Energy News Beat the best place for all your energy and oil and gas news. Stu and the team do a tremendous job making sure this 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 the description below. Floor links the timestamps, links to the articles and hit us up on substack. The Energy news Beat.Substack .com It is tax season, folks. If you need a tax deduction, if you need a little portfolio diversification or mainly if you’ve always wanted to go out with your friends and say, Hey, I’m an oil man, I own working interest, boy, do we have a great, great prospect for you. Go ahead and go to invest in oil dot energy news beat.com to get access to the executive summary. And we will make sure we get you all the information you need. Again, there’s nothing cooler than me to show up to your friends, your hey, would you do this? We you know, I just. I did some spreadsheets. I photocopied some stuff. I bought some working interest. I’m an oil man, Colby. Scott Sheffield. That’s what you get a say that there’s some upside to that. But seriously, guys, it’s tax season. If you get. [00:14:31][67.4]
Stuart Turley: [00:14:32] The mailbox money, my crew. [00:14:34][2.1]
Michael Tanner: [00:14:34] We will ask you to go work on the wells. So just be prepared. We will ask you to go do we will drive the trucks or we’ll go pull casing. We’ll ask you to do everything. So you will have to we have to do a lot of work. I’m kidding. I’m kidding. This is now. [00:14:47][12.4]
Stuart Turley: [00:14:47] But if you want to see the. Well, we want to show you the wells. [00:14:50][2.7]
Michael Tanner: [00:14:50] Well, absolutely. Absolutely. So point is, guys, it’s tax season, it’s portfolio diversification season and it’s passive income season. Hit the link below. Invest in oil dot energy news because my mom my mom got mad at me because I apparently yesterday on the show I said if you pay more, I basically call people who don’t invest in oil idiots. So I. Paul. So anybody got a. [00:15:10][19.4]
Stuart Turley: [00:15:10] Nice well done. [00:15:11][1.0]
Michael Tanner: [00:15:11] And have a right to a solo show. [00:15:13][1.5]
Stuart Turley: [00:15:14] And everybody finally here, this is only the first time you’ve offended anybody. [00:15:18][3.8]
Michael Tanner: [00:15:18] Well, I’m at least one person listening to the show. Let’s move on. It’s the quick finance section. Guys who go run over top line numbers. S&P 500 up about 6/10 of a percentage point. Nasdaq was up about 7/10 of a percentage point. Threw in ten year yields, up 1.4 and 1.2 percentage points, respectively. Dollar index up about 4/10 of a percentage point. A Bitcoin down about one seventh or 1.7 percentage points, just above 60 at 61,064. Crude oil basically flat for the day, 7349. Brant was actually up about 2/10 of a percentage point 7691. Natural gas down another three percentage points, mainly due to what’s going on with Milton in Hurricane Milton. And first off, as I say, this one, everyone who’s still recovering from Hurricane Helene. Thoughts and prayers go out to you guys, whoever is on the Tampa and that west coast of Florida. Our thoughts and prayers are with you. It’s about to be it’s going to be wild. Stewart’s going to want to hit a Cat five tonight or is it for. [00:16:14][55.3]
Stuart Turley: [00:16:14] The Cat five? And it’s it’s going to heat up. I’ve seen some horrific projections coming around the corner. [00:16:20][5.9]
Michael Tanner: [00:16:21] Yeah, it’s it’s not going to be great. Hopefully everyone is evacuated. And for all of our listeners who are there, we hope you are safe and we’ll try to keep you up to speed. But that’s really the reason I think we’re seeing a lot of oil, oil and gas price volatility on the downside, mainly due to the fact that nothing new in the Middle East has come out. You know, obviously, the word on the street is there’s an imminent, imminent attack from Israel specifically that could end up on the oil fields. But I think a lot of that is being tempered by some of the shut in production that we’re seeing from Hurricane Milton. We also did see the EIA crude oil inventory numbers come out, 5.8 million barrel, a rise in crude oil per hour of crude oil inventories. That was compared to about a 10.9 million estimate by the EIA or the IE API. So there’s a little bit of a delta there. Reuters saw about a 2 million barrel rise. So above whatever rude or stop at way below whatever API thought we’ve got. You know basically gasoline stocks did did did lower or did rise a little bit. But that mainly has to do with what’s going on with with the Halloween that happened. Obviously Milton is coming. You know, basically Florida’s out of gasoline, which is kind of crazy. That’s also sort of what’s helped crude oil prices. There is some stuff, you know, obviously, you know, if you read our friends over at Routers, they’ll tell you that the macro situation over in China isn’t isn’t looking good. You know, there was a quote Tuesday out of China that said it was, quote, fully confident achieving its full year growth target, but refrained from introducing a stronger fiscal steps. Disappointing investors who had banked on more support for the economy, a.k.a. they want rates low, baby. I mean, if you if you haven’t seen what’s going on every investor want rates low. Why Because it means it’s cheap money. They get more money to invest. So I’m not even saying I’m mad at that. Just understand the game about what’s going on here. That’s really it. Those. Do I want to talk? What’s going on? Give me give me two minutes on the Middle East right now. What’s happening? That is really kind of the outstanding question mark we have right now when it comes to oil prices will give us a 30,000 foot view. [00:18:18][117.0]
Stuart Turley: [00:18:18] 30,000. And I Doctor, I apologize. I got to get his name right. But he I follow him on X, he just put out 55 minutes ago. Conclusion From today’s events and statements, the White House convinced the Israelis not to hit Iran’s oil export facilities. I wonder how much it cost the United States taxpayers to pay him not to hit the oil and take him out. I don’t know. I’m glad they didn’t. I don’t think it’s good for anybody. I think that they should have control them through peaceful means. But so I don’t know that we’re going to see an attack imminent. Well, well, that’s good. [00:18:57][38.5]
Michael Tanner: [00:18:57] You know, it’s you know, our good friend, friend of the show who we’ve never met, John killed Cliff. He’s over there at again Capital again. Again. He claims that speculation of a strike on an Iran is worth about $5 a barrel. So you know do it that what you put but that’s really all I got to do is pretty pretty quiet day not much not too much M&A action, which probably means there’s some stuff coming up. The pipeline earnings is coming up. So buckle up. It’s going to get busy. [00:19:23][25.8]
Stuart Turley: [00:19:23] It’s going to get dicey. And when the Hurricane Milton hits the other side of Florida and hits the Gulf Stream going north, it is warmer, expected to gain speed and head north. Retro. [00:19:37][13.4]
Michael Tanner: [00:19:37] Yeah, no, not good. So, again, thoughts and prayers with everybody who’s there down in Florida and who is still recovering there from Halloween. But with that, guys, we’re going to let you get out of here, get back to work, finish up your week. We will be off. We’re not off tomorrow. You’ll hear. Who are you interviewing? What are you what Drop What interview drops tomorrow? [00:19:54][16.3]
Stuart Turley: [00:19:54] I believe I’ve got another one with Wachovia. Want this angle? [00:19:58][3.6]
Michael Tanner: [00:19:59] We love loss. If we love our friends over at Samara Partners you know. Absolutely love them. Love what they’re doing in the minerals and physical commodity space. So I would have hopefully every. But he goes listens to that one. We will be back in the chair Saturday for our weekly recap. Take Sunday off and be back in your ear bright and early Monday morning. So appreciate that, guys. Well, we’ll let you get out of here with that. Stuart Turley, I’m Michael Tanner. I will see you on Saturday, folks. [00:19:59][0.0][1156.6]
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