Daily Standup Top Stories
Manufacturers Leaving China Find a Home With Indian Startups
BENGALURU, India— In early 2020, as the pandemic was shutting down global commerce, a Pennsylvania company was having trouble getting its usual steel parts out of China. It stumbled on another possible option—in India. Zetwerk, […]
Germany Is Losing Its Mojo. Finding It Again Won’t Be Easy.
BERLIN—Two decades ago, Germany revived its moribund economy and became a manufacturing powerhouse of an era of globalization. Times changed. Germany didn’t keep up. Now Europe’s biggest economy has to reinvent itself again. But its […]
Poland is filing a lawsuit against “authoritarian” EU climate policy
The EU Commission is increasingly trying to transform the EU into a centralized federal state and to establish itself as an authoritarian central government. In doing so, they are apparently hanging on the leading strings of […]
Power grids are using more natural gas as wind power fails in summer heat
ENB Pub Note: This article is from Ed Ireland’s Substack. Please subscribe to his substack and support his writing efforts HERE: “If we are facing more extreme weather due to climate change, it would be […]
There’s a Vast Source of Clean Energy Beneath Our Feet. And a Race to Tap It.
In a sagebrush valley full of wind turbines and solar panels in western Utah, Tim Latimer gazed up at a very different device he believes could be just as powerful for fighting climate change — […]
Highlights of the Podcast
00:00 – Intro03:04 – China Manufacturers leaving China. Find a home with an Indian start ups05:57 – Germany, because this coal coincides with this one and Germany is losing its mojo.07:42 – Poland is filing a lawsuit against authoritarian EU climate policy.11:31 – Power grids are using more natural gas as wind power fails in summer heat14:18 – There’s a vast source of clean energy beneath our feet and a race to tap it.16:01 – Market Updates17:29 – 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 is going on. Everybody, welcome into another edition of the Daily Energy News Beat Stand up here on this gorgeous Wednesday, August 30th, 2023. As always, I’m your humble correspondent, Michael Tanner, comedy from an undisclosed location here in Dallas, Texas, joined by the executive producer of the show, the purveyor of the show and the director and publisher of the world’s greatest website, energynewsbeat.com, Stuart Turley, my man, how are we doing today? [00:00:39][24.1]
Stuart Turley: [00:00:39] It’s a bit of an eight eight written mean for a weekend already. [00:00:42][2.5]
Michael Tanner: [00:00:42] I know it is slowly creeping there, guys. You’re halfway through the week. We appreciate you. Stick it to us. We have an absolutely great show lined up for you per usual. First up on the major manufacturers leaving China. Find a home with Indian start ups. To follow that up, we’ll cover a nice opinion piece. Germany is losing its mojo. Finding it again won’t be easy. We’ll stay over in the EU and talk about Poland is filing a lawsuit against the, quote, authoritarian EU climate policy. Well, then come home and talk about power grids here in the US are using more natural gas as wind power fails in summer heat. Who would have saw that coming? News flash energy news be dead. So Stu will cover where we were right there. And then finally, there’s a vast source of clean energy beneath our feet and a race to tap it. Very interested to find that he will then kick it over to me. I will quickly cover what’s going on in the oil and gas markets. We saw a nice oil up to $81 after seeing 79 today. So two interesting things of note, high API, large API drug you saw before the show. Holy smokes. And then we saw a little softer dollar based on some comments of what’s going on in Jackson Hole. We will cover all that in a bag of chips, folks. But first, before we do all that, every story and piece of analysis you’re about to hear is brought to you and sponsored by the world’s greatest website, www.energynewsbeat.com The best place for all of your energy news. Check out the description below for all the timestamps and links to the articles. We appreciate that. Guys. Subscribe to it. You can listen to us on Apple Podcasts, Spotify, subscribe on YouTube. We appreciate it. Great interview right now with Doomberg going off on our YouTube right now. So guys, highly go recommend checking this out of energy Newbies go watch Doomberg Great interview Well we’ll do a we’ll do a quick plug here for that one great interview you had with do he’s he’s he’s a character. [00:02:27][105.0]
Stuart Turley: [00:02:28] He’s met and I think he met his man. He was he said at the end of it, you know, a little little inside baseball, you are funny. [00:02:35][6.7]
Michael Tanner: [00:02:36] This will pay off later. We’ll pay him. We still get to pay his fee. I’m not just kidding. [00:02:42][5.3]
Stuart Turley: [00:02:42] Oh, smack. [00:02:43][0.8]
Michael Tanner: [00:02:44] Just kidding. No, I’m just kidding. But I see he’s got to pay me to laugh at his jokes all the time, so check it out, guys. All that should be said. Check us out on YouTube, email us, interact with the show. Questionsatenergynewsbeat.com DashboardEnergyNewsBeat.com Data News Energy Combo hard at work at V2. Let’s go and kick this thing off. Stu, Where do you want to begin? [00:03:02][17.9]
Stuart Turley: [00:03:03] Hey, let’s start flapping our wings around China Manufacturers leaving China. Find a home with an Indian start ups. I’ll tell you, Michael, China has really shot themselves in the foot ankle and then the blast cart. BIDEN Actually, when you sit back and take a look in the 2020 pandemic was shutting down Commerce Pennsylvania company was having hard parts and hard time getting out of China. Sanctions don’t work. We’re sanctioning China, Russia, you know, everybody on the planet India is now picking up a lot of their manufacturing. And it goes with that chart that you sent out this morning, Michael, and that is low cost energy. There are no populations, no countries around the world that have expensive energy that are even profitable. I mean, so there is a correlation between GDP and low cost energy. So it is pretty important to think that China’s energy policies are forcing the supply chains out to India. I mean, give you some stats. We see funding has slowed down in 2023. In business to business, the supply chain shocks were life threatening. Is a rail tenure partner for Lightspeed, which made around three similar investments in India. Founder saw this trend early enough we believe. Why should I not leverage this tailwind? This goes along and hand-in-hand with is India the next China for manufacturing? I don’t think India has the AKP’s opinions of going in, and it’s either our way or the highway. The Indian culture is not anything like the CCP. What do you think about them? [00:04:50][107.6]
Michael Tanner: [00:04:51] Yeah, I think I said, I just said our producer, the image of of it’s tied electricity and income. You could throw it up on the screen right now if you’re listening on YouTube, if you’re listening on podcast guys, this is an insane image. Basically what it’s showing is it’s showing per capita. And then and I’ve got a pulled up right here. So if you look on the x axis, you’ve got GDP, and on the Y axis you have electrical consumption in. Basically what you have is you have this straight line vertically, which means as you increase GDP, you’re increasing the electrical assumption. What is this saying is to say there’s no such thing as a low energy rich company or a country. If you’re rich, it’s because you have an insane electrical need. And so what’s that going to do? What does this mean to India? They’re going to continue and continue to require more and more energy. And if they do become this new powerhouse of China or this new manufacturing powerhouse, then they’re going to continue to overtake China as the biggest consumers of energy, which is really interesting. Yeah, it’s very confusing. [00:05:52][61.9]
Stuart Turley: [00:05:53] It is. And let me throw this next article in here is Germany, because this coal coincides with this one and Germany is losing its mojo. Finding its way again won’t be easy. This is really an opinion piece, but it folds in with about three or four different conversations. Yesterday, I talked a little bit about BASF. They closed their fertilizer plant last month in Germany because they don’t have enough natural gas again. Volkswagen has shut down a lot of their facilities. Their manufacturing is going away. They’re looking at moving the plants to the United States because of lower cost energies. Their steel has shut down, all because their energy costs are too high. You can’t plug renewables into the grid without having standby energy. They can’t do their natural gas. Because yesterday I covered on the average price is 1142 compared to the 265 in the U.S. That’s natural gas comparisons. That’s weird. I mean, you can’t run a plant at that $11 range if you can get it. And then your government is shutting it down and they’re not letting you use coal and then you’re having to pay import fees if you’re buying it from France or Norway or anyone else. So the bottom line is that chart that you mentioned is more important because it also says not only are your GDP, you need energy, you need low cost energy. So there’s we ought to put another line in there showing the lower cost energy in there as well, too. So you did good finding that that chart. I thought that was. [00:07:37][103.4]
Michael Tanner: [00:07:37] Sometimes I do decent research. What’s next? [00:07:39][1.9]
Stuart Turley: [00:07:39] Let’s go to Poland, flapping our wings over to Poland. We are. Poland is filing a lawsuit against authoritarian EU climate policy. About time. We’re going to have to do the same thing, Michael. You know, you and I are going to fly over and talk to Charles. Was it Klaus Schwab and let him know as well, too. The EU Commission is increasingly trying to transform the EU into a centralized federal state to establish itself as an authoritarian central government. They’re just leaning on the lobbyists. They are just yanking them around as far as that goes. However, Eastern Europe is fighting back, Poland and Hungary, and there’s a big movement right now. People are retiring from Germany into Hungary. I was like, Whoa, get out of town! Because Hungary has still has a high Christian value in their society. They don’t have a immigration. They have a very strong immigration policy. In other words, you don’t immigrate there unless you apply very stable. The woke don’t even bother to go there to die as as Governor, DeSantis would say. So when you sit back and take a look at all this, Poland is now filed for lawsuits against the EU. Climate policy says it will not allow Brussels dictate. I’m sorry, I got tickled at that. And I had to publish a story just for that dig that. I mean, is that a tick tat or is that a dig that. I don’t know. [00:09:11][91.3]
Michael Tanner: [00:09:11] It was go with the first one, the tic TAC. [00:09:13][1.9]
Stuart Turley: [00:09:13] Yeah, that was okay. So anyway, I applaud both Hungary and Poland for standing up and saying, wait a minute, this is Poland first, or This is Hungary first. The U.S. has got to be first in order to protect our own people. We’ve lost that. [00:09:31][17.8]
Michael Tanner: [00:09:31] Yeah. No, I mean, I was going to I’m going to echo exactly what you said. I think this is good for Poland standing up. I mean, I love this article, twisted as the current national conservative government. You know, they try to twist it in that, you know, they they’re not going to they’re going to give it a fair shake in there. But no, I completely agree with what’s going on and what they’re doing in Poland. Shout out to them. It’s a shame they’re going to have to go. You know, we covered it last year, Stu, you’re going to go back. They’re going to go back to burning shoes. [00:09:56][24.5]
Stuart Turley: [00:09:57] Oh, they are. And it’s bad energy policies, are it? Hey, I just want to give you a shout out. Klaus Schwab just called me. Oh, he said that? Oh, yeah. He said today we need to strike the right balance between the necessity necessary rebuilding of national. Social contracts, at the same time strengthening our multilateral system to address issues such as the terrorism and migration. I’m aware that your strong leadership is open to misconceptions and biased interpretations so far. It’s essential for us to you to listen directly to you. Donald Trump walks up on stage right after that and he says, I’m here to represent the interests of the American people. I’m here to deliver a simple message. There’s never been a better time to build and invest in the U.S. Believe me, there are an electorate, bigger, unelected bureaucrats that we have, and they are all over the place. They’re imposed, crushing, anti-business, anti-worker regulations on our citizens with no vote, no legislative debate, and no real accountability in America. He says further on that says regulations are an UN voted tax. I kind of like that. So Schwab doesn’t like Trump. The U.S. half the U.S. doesn’t like Trump yet. So we’re going to sit down and say, you got to have America first, no matter if you’re Biden or Trump or anyone else, you got to go America first. [00:11:26][89.4]
Michael Tanner: [00:11:27] Completely agree. Speaking of America, let’s come back home here and talk about power grids. [00:11:30][3.1]
Stuart Turley: [00:11:31] Let’s go to power grids, Baby America first. And we need America first, especially in this power grid and Ireland. I got to give a shout out to Ed Ireland. I was trading emails with him today. This is out of his substack. We’re facing more extreme. This is out of this Robert Bryce who is on our podcast as well. If we’re facing more extreme weather due to climate change, it would be insane to make our most critical infrastructure dependent on the weather. We need energy and power systems that are weather resilient, not weather dependent. Robert Bryce That’s a great quote. ERCOT As Ed Ireland brings out in his Substack everybody’s kind of looking to the Texas ERCOT because we have the largest wind in the United States. We have a ton of solar, we have a ton of natural gas, we have nuclear, we have coal. We got it all. We’re bigger, we’re better. We’re better looking in Texas than anywhere else. Here’s the gadget. Let’s go down to the chart, Michael, The fuel mix. Take a look at that mix. Michael, I want you to go through that here. It’s solar 12 megawatts, wind ten megawatts, Hydro 478 megawatt, 10,000, excuse me, 10,000 megawatts, 78 power storage, 447 other is that people riding their bicycles Are that squirrels? Squirrels. Thank you. I know what a windmill natural gas, 53,000 coal and ignite 14,000 nuclear 5000. So you sit back and kind of go, Oh, wait a minute, If you eliminated natural gas and coal, we’d be screwed. [00:13:08][97.8]
Michael Tanner: [00:13:09] We of course. I mean, you would obviously increase your solar and wind. It just goes to show that having dispatchable backup is critical when you don’t have solar, wind or hydro or other, when the when the squirrels start running. I haven’t necessarily there’s I will admit, Eric Huntsman. Okay. This summer, even in some of the hotter days, I mean, there have been some there have been some minor issues going on, but not as bad as we would think. [00:13:33][23.8]
Stuart Turley: [00:13:33] No. Let me throw these numbers out at you, Michael. I think Ed Ireland did a great job. Total power generation across lower 48 states declined by 21% from the same period. A generation from natural gas climbed by over 10%. Whiting Gases Lead is the main country that’s in the country. Power generation crust lower Start didn’t decline by 22.1% on the renewables. So when you take a look at where it where we have gas, Marcellus and the Permian man, we had to take advantage of every drop we can. [00:14:13][39.6]
Michael Tanner: [00:14:13] Yeah, no, we do. All right. What’s next year? [00:14:16][2.1]
Stuart Turley: [00:14:16] Okay. Last one coming around the corner, there’s a vast source of clean energy beneath our feet and a race to tap it. I thought this was interesting from the standpoint that I love me some geothermal. You got to have geothermal. This is out of Colorado I thought again are wonderful MP operators. Let’s use them. Cindy Taaffe, who worked at Shell for 36 years before Sage Go Systems. Everybody knows about cost declines for wind and solar, but we also saw steep cost declines for oil and gas drilling. The shale revolution, if we can bring that to geo thermal, the growth would be huge. Just leave it to our MP operators. They’ll get it down in a heartbeat. Absolutely. Get it now. Great article. [00:15:02][45.5]
Michael Tanner: [00:15:02] Yeah, no, it’s a great article. Geothermal, you know, we see we’ve see it successfully being used in Saudi Arabia right now. We’ve we’ve seen it successfully been used out in California doing some re conversions over there. On the Nevada border. I’m very interested to see who does what big oil company decides to deploy theirs at scale. Chevron has done a little bit of work with it. We know Exxon’s done a little bit of work. We know in this latest Gulf of Mexico auction. Both Chevron and Exxon swooped up for carbon capture. Could that be could there be some contiguous of that? I don’t know. I’m just throwing it out there. [00:15:35][32.9]
Stuart Turley: [00:15:35] Oh, I agree. Let’s take oxy. We love Oxy from the standpoint that they did jump into the carbon capture. Whether or not you like carbon capture or not, they went after the market. Not whether or not it’s carbon capture. They’re going after the market. Same thing here with geothermal. It’s going to be open season for federal dollars because it’s renewable. Kidneys. [00:15:57][21.5]
Michael Tanner: [00:15:58] Absolutely. So. [00:15:59][0.8]
Stuart Turley: [00:15:59] Back to you, dude. [00:16:00][0.5]
Michael Tanner: [00:16:00] All right. Well, we’ll quickly shift to finance, guys. It was a pretty dismal day up until the last hour, hour and a half of trading. We saw oil go from about 79, 50 all the way up to where currently sits, 8137. As we record this a little before 6:00 here on the 29th. Well, we saw that 1% rise mainly off the fact of, again, we have a little bit of a hurricane hit coming. I’m in Florida right now. It’s not going to take off as much as you would think. There’s a few Chevron rigs that have been evacuated. We did see a little bit of a softer dollar API. Crude oil inventories do came out today or yesterday. As you’re listening to this at 2:00, 11.4 million barrel draw, which is absolutely insane. The EIA will confirm or deny those numbers at 930 Central Time. So be on the lookout for that. We’ll cover those numbers in tomorrow’s show. But lots going on in the in the numbers day to game. Very little in the news. We just saw earth stone get snatched up here recently for an M&A action. Crescent Point going ahead and throwing out their North Dakota assets. So lots going on here in the data world. News is a little bit slow here, Stu, So we’re kind of on the Matty here. I wonder what M&A action is, is is is in the works right now. I think with you’re seeing sustained $80 oil, it makes it a little bit more attractive use of bank finding. So I’m interested to see if is as we move through this by closing out this third quarter, if there’s not one more deal out there to be made. But but so far, all quiet on the Western Front. [00:17:24][84.1]
Stuart Turley: [00:17:25] Oh, you bet. I think you’re going to see more, right? [00:17:27][1.9]
Michael Tanner: [00:17:27] I think you will. So. Well, you got anything else? Do well at these fine folks. Get out of here. If so, if not. [00:17:32][4.8]
Stuart Turley: [00:17:33] Yet, buckle up. It’s going to be fun. [00:17:34][1.3]
Michael Tanner: [00:17:35] Pile up. It will be fun, guys. So thanks for checking this out for Stuart Turley, I’m Michael Tanner. We’ll see you guys tomorrow. Thanks. [00:17:35][0.0][1021.6]
Energy News Beat