Daily Energy Standup Episode #224 – Weekly Recap: BlackRock’s Losses, UK’s EV Delay, China’s Demand, and Climate Concerns

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No Energy Transition Unless Tech Can Make It Cost Competitive: BlackRock

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Video Transcription edited for grammar. We disavow any errors unless they make us look better or smarter.

Stuart Turley: [00:00:15] Hello everybody welcome the energy newsbeat daily standup today is just as the fantastic day. It is Saturday, it is October seven. And I’ll tell you what, I hope you have a fantastic weekend. We have had an action packed show this entire week. It has been bonkers. The staff has been working overtime, getting stories done. We’ve had fantastic interviews. I mean, I got to interview Tucker Perkins. He is the CEO of the Propane Council. And I mean, he is worldwide. He is phenomenal. A humanitarian, talking about net zero. Absolutely wonderful. And also got to talk to Congressman Andy Ogles, the staff who knocked it out of the park, turned it around in one day. And I mean, it is a fabulous podcast. And then we have also the staff has got ready and their van tastic podcast. This one is with Steve Gorham. He is bringing energy. It is a wonderful book that he has written is a great one is it came out yesterday on Friday. So again, listen to all the stories. It has been awhile. We’ve lost $10 in the oil market. We’re getting it more coming back. We’ve got more things coming around next week. Hang tight. We’re going to get legislators on the podcast. We have other big CEOs and Michael and I are getting ready to rumble for a lot of new things rolling out on the Energy News beat, energy news, beat website. Subscribe like share. Tell your friends, Tell your animals and go save somebody today. Give them a hug. All you have to do is have a great day. See you later. [00:02:09][113.5]

Stuart Turley: [00:02:09] Hey, let’s start with my buddy Frank. I’ll tell you, I’m not a Black Rock fan. And let’s start here. No energy transition unless tech can make it cost competitive. Black Rock. Michael, I’m going to get into this story here, but let’s set the stage for folks that have never heard of Black Rock. Black Rock biggest fund manager in the world. Last year for first half of the year, they lost $1.7 trillion because of their energy investing, their ESG investing into renewables. And they’ve lost it now toward the end of 2022. We’ve seen the ESG investors. Michael, you have hit on this financially hard, and that is the fact that investors are wanting their money back. So we’re seeing an end to the ESG investment because they’re tired of not getting their money. [00:03:06][56.7]

Michael Tanner: [00:03:07] All right. It’s become just a huge capital expense, much like the shale revolution. For all the good that it did, it lit a lot of money on fire. It’s always been the same thing. [00:03:18][11.3]

Stuart Turley: [00:03:19] That’s right. And so Larry Fink stood up there and made me airsick a lot espousing non-humanitarian things. Okay. Here’s what he just talked about. Let’s dive into this article, quote unquote, for a mr. Larry Fink. He told Bloomberg’s Danny Berger, we are not going to have an energy transition unless we can find technologies to bring down the competitive cost of renewables. We cannot do that, Fink said, adding that BlackRock conducted a survey showing 57% of their global investors are planning to put more money into decarbonization technologies. Here’s another one quote We saw what happened with elevated energy prices just two years ago in Germany and Europe. You can’t have a transition, he said, arguing that when energy prices go up, emerging nations use more coal because life is more important than the future. [00:04:19][60.1]

Michael Tanner: [00:04:20] Wow. I agree with all of that. Then his next quote quote, We need to reimagine finance. We’ll do that just in a shimmy down my spine because Larry Fink is no friend of ours. Remember, this guy sits on the board of directors of the World Economic Forum’s like you. So you should talk to him about the next board meeting and say you were right up until you said we need to re-imagine finance. Because you know what that sounds like They want more. Just give it all to me. [00:04:47][27.6]

Stuart Turley: [00:04:48] Oh, yeah. See there. They’re now doing a little bit of a lean back in here. And this is going to tie into a couple of our other stories and that he has he’s got a I’m going to give you investors. You know, he’s hanging out with Putin, too. I’m going to give you investors a little bit of food crumbs. I’m going to invest in energy and oil and gas and my hands. Exploding with this hypocrisy that this knucklehead has got going on? [00:05:15][26.8]

Michael Tanner: [00:05:15] Well, no, I think he’s. I think he’s he’s he’s clearly understands that. Oh, my goodness. [00:05:20][5.0]

Stuart Turley: [00:05:21] If he’s understood energy well. [00:05:23][2.1]

Michael Tanner: [00:05:24] Let’s just say let’s give them the benefit of the doubt. At least now they’re recognizing and they’re not just pouring more. I mean, it only took them two years to figure. It took it took shell companies ten years to figure it out. It’s kind of funny. So, you know, it only took them about two years of bad returns. Let’s course correct here. So all I’m saying is I’m a little spooked out when I hear guys like Larry Fink telling me we need to re-imagine finance. We just need to get a little bit of give you a little bit less control so that the actual competitive markets can go about bringing down the cost of renewables, which is exactly right. We have to encourage the competitive environment in order to make things. I mean, there’s a reason why, as he said, when energy prices go up, emerging nations use more coal. Well, why? Because it’s cheaper. So this guy, up until the point where he creeps me out with his reimagining finance. [00:06:15][50.8]

Stuart Turley: [00:06:16] Okay. Germany. Germany, I guess, is an emerging nation now because they’ve been losing all of their business since they’ve gotten rid of all of their nuclear reactors and they have no reliable when they are now an emerging nation because they’re using more coal. Subak’s family firm signed $1,000,000,000 deal with BP before PGM opened new North Sea licenses. Okay, I’m going to set this article up and then we’re going to do a deep dive into the article. Prime Minister Rishi Sunak. Last week, Michael, this was huge news. He stood up and then the rest of the world had dominoes going. He stood up and said, We’re going to delay the EV, the cars, the EV, the net zero by five years. And then, Michael, you and I laughed about it on our podcast last week. Boom, boom, boom, boom, boom. Snap, snap, snap, snap, snap. All the green heads just popping. Pop, pop, pop, pop out around the world. Right? And then you had Shell come out and say, well, you know, we’re going to back off and we’re going to start drilling oil. And then everybody I mean, it was a snowball around the world. Then this article came out this morning and it says In May, The Times of India reported that emphasis bagged a huge deal from the global energy company, which thought to be the second largest in their history. The Indian IT company is owned by the prime minister’s wife, the family, although Sunak insisted the matter is of no legitimate public interest. Okay, you write. [00:07:54][98.1]

Michael Tanner: [00:07:56] Ee ee ee ee ee ee. I mean, you know, it’s also come to light that they’ve been involved with that. That same I.T. giant has been involved with £172, million pounds worth of public sector contracts in the UK. [00:08:12][16.2]

Stuart Turley: [00:08:13] EE ee. Okay, here’s this, here’s a quote down in there for him. You know, even though the prime minister did great things in his trying to do what’s right. Graft is graft. And it’s you know, we don’t have anybody in politics anymore. The PM said even the UK would still need oil and gas for 25% of its energy needs, with the PM saying that power to Britain from Britain rather than the UK relying on foreign dictators for its energy supplies. I applaud the Prime Minister for that and he goes on to further say in another quote, If we’re going to need it, far better to have it here at home than shipping it from halfway around the world with two, three, four times the amount of carbon emissions versus the oil and gas we have here at home. Way to go, Prime Minister. I applaud him for that and at least he needs to learn from the Biden administration, said King. [00:09:13][60.3]

Michael Tanner: [00:09:14] Hang on. You go talk to Hunter. [00:09:16][1.7]

Stuart Turley: [00:09:16] Go talk to Hunter, man. Set up 30 or 40 shell companies from your wife to you. Or you can learn from Kerry when they said your plane is emitting carbon emissions for cars. And he goes, I don’t have no plane. My wife own plane. Not me. My wife claims that plane. [00:09:39][22.9]

Michael Tanner: [00:09:40] Right. Don’t leave your laptop and any random store. Make sure to take that with you. [00:09:46][6.3]

Stuart Turley: [00:09:47] Okay. Oh, what a show. I had about 6 hours and you had a boom amount because I just brewed wine. [00:09:53][5.9]

Michael Tanner: [00:09:53] Let’s talk about China. [00:09:54][0.6]

Stuart Turley: [00:09:55] We got a lot of us from China. China And demand for oil and copper is booming, says Goldman Sachs. Hey, did they call you and ask to have you come back in as their China representative? [00:10:07][12.6]

Michael Tanner: [00:10:08] No, they haven’t interviewed me for. For Jeff Currie’s old job, I was a little too bearish on my outlook. It was really good. One question Where do you see oil in 2024? And I didn’t put 250, so I don’t know what will be getting the job. [00:10:22][13.8]

Stuart Turley: [00:10:22] Yeah, well, we’re having to really work on that. China’s demand for many major commodities has been growing at quote unquote robust rate, according to Goldman Sachs. That could be very, very high since they love $250 oil. Is that what you’re in? Their strength in demand is largely been tied to a combination of strong growth from the green economy and grid and property completions. Now, Michael, the green economy, as defined by China, is making all of the green components for the other SAP’s. I mean, excuse me, the other countries in the world to install. They’re making hand over fist on making all the components. So now Goldman Sachs is also saying in here on the critical minerals, the most significant strength has come on the renewables side where copper demand is up. Michael, 130% year on year man. Anybody with a business degree loves 130% increase year on year. [00:11:29][66.9]

Michael Tanner: [00:11:30] Yeah, it is going to mean that your prices are going to go up. And you know, this isn’t a surprise if you’ve been following the podcast or following what’s going on in China, they’re clearly using and stockpiling oil and stockpiling really critical minerals in order to really take themselves and allow them to do this quote unquote, energy transition at the speed at which makes sense for them, which could be interesting. Again, Goldman Sachs, I don’t think, is jumping out here on a limb and saying something too crazy. The question is, where does this demand what does this do to prices? Clearly didn’t have any effect today because we saw prices down about two and a half percent today. So, again, yes, we’re seeing a lot of Chinese demand from Goldman Sachs. Yay! Will result in our $150 oil price. I don’t know. [00:12:13][43.2]

Stuart Turley: [00:12:13] Yeah, I’m not sure. But I’ll tell you, the the more they can make money off of the renewables they’re selling around the rest of the world, the more they’re going to keep making them and the more want to. [00:12:24][10.3]

Michael Tanner: [00:12:24] Get in on this renewables game and make some money. [00:12:26][2.5]

Stuart Turley: [00:12:27] I’d rather go to bed at night and sleep proud that I’m not ruining kids lives. [00:12:31][4.2]

Michael Tanner: [00:12:32] Let’s talk about this study that just quote unquote zapped Biden’s plan. [00:12:36][4.4]

Stuart Turley: [00:12:37] Oh, you bet. Hey, a new study zaps Biden’s plan to transform the electrical grid. You know, I do a pretty good Biden imitation. I mean, excuse me. Putin imitation. I can do a pretty good Biden imitation, too, but so can my wall. [00:12:51][14.3]

Michael Tanner: [00:12:52] So okay. Sleeping. That was my Biden impression. Just taking a quick nap. [00:12:56][3.8]

Stuart Turley: [00:12:56] There you go. Okay. They believe simply they can implement laws and regulations and executive orders and provide hundreds of billions in subsidies. And voila, energy transformation will proceed on schedule with no supply chain disruptions, blackouts, escalating costs for economic and environmental consequences. [00:13:18][21.8]

Michael Tanner: [00:13:21] All right. Well, what’s this study say? [00:13:22][1.2]

Stuart Turley: [00:13:23] It says absolutely no way. It says there are no there is no data actually supporting concerns about more frequent, intense hurricanes or tornadoes. The U.S. Electric utility industry’s Electric Power Research Institute concludes that the industry simply cannot reach net zero in generating electricity. So-called clean energy sources give the electrification not sufficient by themselves to reach net zero. [00:13:56][33.7]

Michael Tanner: [00:13:58] Now, if you don’t trust the electrical industry’s own lobbying firm, which rightfully so, you know, they’re paid to say electricity is going to be scarce. Listen to what Mark Christie said, who writes the energy commissioner for FERC, which is the Federal Energy Regulatory Commission. He’s recently told Congress and this is a quote, The problem is not the addition of wind and solar. The problem is a subtraction of coal, gas and other dispatchable resources that we need during this transition. The grid has been powered. The grid has to be powered, being fed into every second of every minute of every hour of every day to keep the lights on, which is a in my opinion, it highlights the entire problem that we’ve been dealing with here is that we need more dispatchable things to make sure that the lights are on of every second of every minute of every hour of every day. [00:14:42][44.0]

Stuart Turley: [00:14:42] And the article goes on a little bit earlier in there, Michael did actually say and then all of the coal and natural gas plants were always ready. They were near the population. And like in Texas, they had to spend the $3 billion to bring the the grid from west Texas to East Texas. They didn’t want to have everybody move from Dallas to Midland. You know, nobody wants to do that. [00:15:08][25.6]

Michael Tanner: [00:15:08] Who wants to do that? [00:15:09][0.6]

Stuart Turley: [00:15:10] Ireland rejects LNG terminal project on climate grounds. I find this one kind of funny because the board refused to hear any more about the LNG import facility because it’s the first. Ireland is probably the first country to deny an LNG facility based on climate as opposed to local environment opposition, according to Jonathan Stern. He is a research fellow at Oxford Institute for Energy Studies. But here’s what they’re wanting to do. They’re not wanting to bring in an import facility because they want to continue using their renewables. But Ireland also was the same country that had some of their wind farms being powered by diesel generators. And LNG is being touted around the rest of the world as being able to save consumers money as well as working with wind farms. So I’m not understanding why they’re not wanting to do this. Key part of this article is U.S. LNG developer New Fortress Energy had sought to build a floating terminal in Ireland for LNG imports, which would supply a 600 megawatt power plant. It is not going to get approved is what it looks like. So as we take a look at gas and the countries will be eyeing the renewables strategy now. Ireland expects to increase its current of onshore wind capacity of 4.9 gigawatts, 4.59 gigawatts to six gigawatts by 2025. Ireland is still aiming for a variety of clean power resources to meet 80% of its energy needs by 2030. Currently, renewable energy only represents 37%. Based off of all of the rest of the world and the amount that renewables and they cannot support it, let’s watch Ireland and see if they can actually make this happen. Numbers for Ireland any good, This will be one to watch. [00:15:10][0.0][868.7]

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