Daily Energy Standup Episode #288 – LNG Diverts, Climate Agendas Clash, and Trump’s Potential Oil Impact – A Davos Special

Saturday night, the middle of the cold snap, was something to be endured. Things break at -36 degrees. A quick run to the grocery store was rerouted by a fleet of city vehicles tearing up […]

No wonder John Kerry is stepping down as climate czar. Joe Biden’s trillion-dollar green agenda is blowing up, and no one is more closely tied to the fast-deflating boondoggle than John Kerry. The push for electric vehicles […]

What a second Trump term could mean for US oil and gas

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

Michael Tanner: [00:00:15] What’s going on, everybody? Welcome in to the Wednesday, January 17th, 2024 edition of the Daily Energy News Beat stand up. Here are our top headlines. First up, LNG tankers divert from Red sea as Qatar warns of escalation. Next up no calling in sick or waiting for a nice day. The grid has to perform on the worst of them. Amen. Next up is an op ed piece. New report highlights green failure in Europe. That’s a warning to America. Dun dun dun. Next up, uh, Biden’s trillion dollar climate agenda is blowing up. And John Kerry has a lot to answer for our favorite. And finally, what a second term for Trump could mean for the U.S. oil and gas business, who will then toss it over to me? I will quickly cover what happened in the oil and gas markets that we did see. Prices on the natural gas side dive a little bit. We did see, um, oil prices stay fairly steady. We also did get a highlight of what the AP believes crude oil inventories will look like for you guys. As you listen to listen to this, we will cover all that and a bag of chips, guys. But before we do that, as always, we’d like to remember that the news and analysis you’re about to hear brought to you by world’s greatest website, Energy News beat.com. What do you got for us, Stu? [00:01:33][77.5]

Stuart Turley: [00:01:34] Hey, let’s start out with our buddies over there in the Red sea. LNG tankers divert from Red sea as Qatar, uh, warns of escalation. Uh, this is really kind of sad. Could our, uh, reroute and three vessels heading to Europe via the Suez Canal? And then Russia is also avoiding the key waterways. And, uh, um, here is Qatar’s, uh, prime minister, Minister Sheikh Mohammed bin Ali, uh, said at the World Economic Forum. This has changed how we view international trade. LNG will be affected. There’ll be alternative routes. They are less efficient. You know, what this means is, uh, the who these are causing climate change. Uh, because think about how far those tankers have to go now. Yep. So here we are. Uh, and, uh, uh, Mr. Producer, could you pull this in and, uh, show the map of the, uh, uh, LNG that are being, uh, the LNG tankers that are being diverted. It is going to be costly. And then we just had that few days ago, we had that, uh, U.S., uh, cargo carrier, uh, shipping container got hit by by the Saudis. So anyway, I wonder if they if they were banned, would they be the hoodies and the blowfish, or they be the hoodies and blow up the tanker? I don’t know. [00:02:58][84.1]

Michael Tanner: [00:02:58] Let’s go. I don’t know. All I know, Stu, is that what’s interesting is this hasn’t necessarily spiked prices as much. [00:03:04][5.5]

Stuart Turley: [00:03:04] That where. [00:03:04][0.2]

Michael Tanner: [00:03:04] You would have thought. Very weird. [00:03:06][1.1]

Stuart Turley: [00:03:06] Uh, I don’t I ain’t got no clue, man. I threw in the pricing towel a little while ago. Hey, but I want to give a shout out to all of our folks across, uh, the world keeping the grid. Uh, uh, you know, calling in sick or waiting for a nice day. The grid has to perform on the worst of them. I’ll tell you what you know. Hanging off of a poll while the polls down and -16 degrees is is huge. Things break at -36 degrees. Um, you know, you have to sit back and kind of go, wow, Alberta is just being devastated by their, uh, zero output in, uh, solar. And then they’re being, uh, really like one. I think wind turbine was going. And so I think that you’re going to see some things come, uh, back around, according to the a ieso the provincial grid operator. Alberta has 4481 megawatt, megawatt, uh, wind power. At the peak of last weekend’s deep freeze, it was producing about one third of the percent of that total. Not just useless, but far more useless than when it needed it the most. [00:04:24][77.6]

Michael Tanner: [00:04:25] Yeah. I mean, what’s crazy is that, you know, we don’t retrofit our specifically. I mean, Alberta is a little different. They’ve got this figured out a little bit. But the problem is somewhere where we’re where we live here. Texas. They don’t we don’t retrofit it. For what? The worst of it. We we plan for the best of days or the average of days. They do that when it comes to the grid. We all want power, specifically when it gets cold. [00:04:51][25.4]

Stuart Turley: [00:04:52] Exactly. And and, uh, one of the things, uh, the other comment in this article was pretty impressive. Um, this person also goes on to say we can switch to heat pumps. This one takes the cake. Heat pumps will exacerbate the problem. At the worst time when it’s it’s cold is because it power demands at a time when the grid is. Is maxed out. It’s opposite components of who says the EVs. There was also an article that went out on Newsbeat today, Michael, that said, uh, there’s a bunch of dead robots out at the Tesla charging station in Chicago. Nobody could get there dirtying stations. [00:05:30][37.5]

Michael Tanner: [00:05:31] I mean, it’s a disaster. I mean, I feel sorry for all those EV drivers who are having to push their car in this calling me. We’re not against it. The problem is, it’s got to be done right. And I don’t want to freeze to death. I don’t know not to freeze to death. Is that so hard to ask for? [00:05:45][14.6]

Stuart Turley: [00:05:46] Oh, no. And I’ve got to put in. I’ll put in the show notes also, this one story by Tammy Nemeth. Uh, she found it. They were saying there’s one article up in Alberta. The guy goes, I love me and Evie, and I love it so much that I can go ahead at -40. I dial up my phone app and warm the car up. And then he was saying, well, I don’t get very far. [00:06:09][23.0]

Michael Tanner: [00:06:11] He’s draining the battery. People are great. What’s next? [00:06:14][2.9]

Stuart Turley: [00:06:15] Let’s go to the op ed. New report highlights green failure in Europe and warns America. Um, this one’s pretty interesting. Uh, ruber. Uh, dowels. Uh, report for the Real Clear Foundation has a couple great quotes in it. Uh, those who cannot remember the past are condemned to repeat it. Um, uh, you know, this ties in to, uh, the Davos crew and everything else, uh, the analysis of this Great Britain heeding the cries for decarbonization, starting when Parliament wrote an 80% decrease in emissions in law in 2008, they raised it to 100% or net 0 in 2019. And since they have, it’s been a disaster. So, um, the difference is between the British energy cost and those here in the US are static. Rich Brits pay an average of $228 per megawatt hour for electricity from coal in 2022, and Americans pay an average of $27 per megawatt net in huge difference. Yeah. Um, unbelievable. [00:07:32][77.6]

Michael Tanner: [00:07:34] Yeah. I mean, it’s it’s it’s pretty crazy. I talked about this last night in my show low solo show, Show Low. [00:07:39][5.4]

Stuart Turley: [00:07:41] We got a new podcast, our show. [00:07:42][1.6]

Michael Tanner: [00:07:43] This this inflation reduction act. Everyone’s taking a bite out of the Apple. You’ve got Blackrock buying up infrastructure companies. Why? Because they care about climate change. Absolutely not because they want a little bit of that government revenue. [00:07:57][14.1]

Stuart Turley: [00:07:58] Right. It’s absolutely hilarious. Former New York City Mayor Michael Bloomberg was given well over $1 billion of his personal wealth to the Sierra Club to fund its Beyond Coal and Beyond Carbon campaigns. He designed it to rid the US of every coal fired plant by 2030. [00:08:17][19.2]

Michael Tanner: [00:08:18] You that you wouldn’t save the environment more if you just took that billion and flushed it down the drain, then you would actually deploying it through the Sierra Club and out into the economy. [00:08:30][11.7]

Stuart Turley: [00:08:31] You know what? You know what? Total energy right now fliers, our friends and our friends over a year. Yeah, our our friends over at Total Energy figured it out. They bought new, uh, natural gas power plants in Texas, uh, enough to power the two nuclear reactors. And they’re going to make money on. Yeah. So. Absolutely. Yeah. Yeah. Okay. Anyway, let’s go off to the next one, my buddy. You’ll learn Biden’s trillion dollar climate agenda is blowing up. And John Kerry has a lot to answer for. Um, as much as the white House. I didn’t even write this one. This is pretty funny. As much as the white House wants to kiss up to the climate lobby, it’s clear the world still needs fossil fuels. Listen, Miss Producer, can you fly in this one thing? John Kerry’s staff. He pays his staff $4.3 million in salaries. The highest salary is $186,000 per year. The mean salary is 170, and they 70,000. And they keep the people hidden on who’s on that staff. So he is just announced that he is stepping down while he was just before he went to Davos. And today at Davos, uh, I leaned over to him. I’m just kidding. I was uh, but he, uh he said that he’s really not retiring. He’s stepping down to help Biden run his campaign. I’m like. [00:10:04][92.9]

Michael Tanner: [00:10:05] Hmm. Just what just what we need. I was about to ask you how Davos has been the Swiss heir. It looks good on you. [00:10:11][6.8]

Stuart Turley: [00:10:12] I had a funny one. And I had a guy running up to Carrie with a shoved a microphone and Carrie’s face and said, hey, do you think climate change is real? And then he said something else about Carrie, and Carrie goes as a stupid question. And then he had about five more. And I was going to claim that as my interview with Carrie. [00:10:30][18.5]

Michael Tanner: [00:10:31] That was you. And that’s funny. [00:10:32][1.1]

Stuart Turley: [00:10:33] All right, let’s go to the next one here. What would a second term mean for U.S. oil and gas? [00:10:40][7.3]

Michael Tanner: [00:10:41] Second Trump secondary. [00:10:42][0.7]

Stuart Turley: [00:10:43] Trump term. Thank you. Let me say this. I got to give a shout out to, uh, Rey Trevino, uh, big dog over there at Pecos Operating. He has said he makes more money when a Democrat is in power because the oil prices are higher. All right. Yeah. So all the oil guys are over here kind of going okay. Lowering regulatory issues. Uh, is good under the Trump, but, uh, administration, Biden makes them more money. [00:11:14][31.2]

Michael Tanner: [00:11:16] Well, I think well, what to expect from a Trump administration if he were to win again. Looser regulations rig count. Instead of going down, we’re probably going to go back up. Oil production is going to continue to increase at a rapid pace because more smaller operators have the ability to produce. And guess what that means? Prices will naturally be suppressed. It’s interesting from the standpoint of everyone. Gas is generally a Republican, but we all make way more money when the Democrats are in power. So I love that they that aren’t talking about this because it’s really true. It also is great point out that leasing on federal lands and specifically offshore is going to be a lot easier, which those two things move the needle way more than, you know. Six. [00:12:05][48.7]

Stuart Turley: [00:12:06] Exactly. And this article has some fantastic points in it. Uh, but I think R.T., uh, was absolutely the best way we could articulate that point. [00:12:16][10.3]

Michael Tanner: [00:12:17] Yeah. And to be honest, President Biden’s liable to get us into a war with Iran that’s going to send prices through the roof. Oh, yeah, I might get drafted, but that’s, you know. [00:12:26][8.8]

Stuart Turley: [00:12:27] Yeah, the Hootie and the Blowfish are already at it. And we’re about, uh, you know, he’s going to go try to take out. He doesn’t even know what he’s doing though. But, hey, um, I mean, I’m ready for some ice cream. I’m a little hungry talking about Biden. [00:12:40][13.4]

Michael Tanner: [00:12:41] Okay. All right, well, we’ll go ahead and kick it over to finance guys. Um, nothing too crazy on the oil and gas front. We really, uh. Uh, we didn’t see API drop. Yeah. Uh, the American Petroleum Institute numbers. I forgot markets closed on Monday. That means that we’ll get the API or the crude oil storage numbers on Thursday, along with that gas storage and, uh, and all the rest. I, I thought it was interesting as, as yields fell today, about 6/10 of a percentage point S&P 500 dropped about 3/10 of a percentage point. Nasdaq fairly flat. That led crude oil to drop somewhere between about dollar dollar 50. But we really only ended down about 6/10 of a percentage point, which is a 50 cent swing. But we are all the way up above 7350 currently trading 7194. So tension going back there again I’m I’ve been very shocked at the non movement of oil prices relative to what’s going on specifically um in the Middle East. So we will be following that specifically. Otherwise not much else. It’s kind of a quiet day. Davos was you know for for for those who who don’t know what Davos is. The World Economic Forum meets every year in Davos Switzerland right. That’s Switzerland. [00:13:48][67.0]

Stuart Turley: [00:13:49] Yes. It’s uh it’s a zoo. They are really really upset about Twitter. They have said that they were going to come out and absolutely destroy, uh, free speech. They’re they’re not hiding anything anymore. It’s crazy. [00:14:06][16.8]

Michael Tanner: [00:14:07] It is crazy. So. Well with that guys. Well, hope you enjoy your day. We hopefully you guys, uh. Um, um. Stay calm. Whoa, whoa. What else should be we be worried about still just Davos? [00:14:16][9.4]

Stuart Turley: [00:14:17] Uh, well, I’ll tell you what. Uh, when Schwab and Ursula and and everybody else start threatening you, you better pay attention. They said, uh, disease X is on the way. And, uh, they also said the grid is going to be shut down and the internet’s going to be shut down. So who knows what these guys are going to say. [00:14:38][20.9]

Michael Tanner: [00:14:38] I did forget to mention guys, this this show is now sponsored by the World Economic Forum. [00:14:42][3.8]

Stuart Turley: [00:14:43] So. Oh yeah. Yeah. He I, I put my I’m doing the best I can to get him on the show. [00:14:48][5.1]

Michael Tanner: [00:14:48] Cloud Schwab on the show. That’ll be the day. We’ll shut it down after that guys. All right with that guys for Stuart Turley I’m Michael Tanner. We’ll see you tomorrow folks. [00:14:48][0.0][841.8]

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