Free Wind Energy = Free Lunch?

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Who is paying for the Free Energy Wind?- or as Penguin Empire Reports – “Who’s paying for lunch?”

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Micahel Tanner: [00:00:15] What’s going on, everybody? Welcome into the Monday, May 20th, 2024 edition of the Daily Energy News Beat stand up. Here are today’s top headlines. First up, who is paying for free wind energy? Or as the Penguin Empire reports. Who’s paying for lunch? A great Substack articles from my friends over at the Penguin Empire, reports Substack channel. We recommend everybody following them. Next up, widespread power outages from deadly Houston storm raises new risk for hot weather. That’s from MPR. Devastating storm that happened there. On, Wednesday, Thursday. So we’ll cover that in detail. Next up, Biden administration increasing tariffs on 18 billion of imports from China. Staying along that Chinese thread, electric vehicle buying interest declined for the first time since 2021. And finally, Chinese companies should not benefit from the EV critical minerals tax credit. Stool. Then toss it over to me. I will quickly cover what happened in the oil and gas markets. We did see both oil and natural gas pop on Friday, which is great to see. Natural gas above $2.60. So an absolute wow pound as we’re heading into the summer months. And then finally Crescent Energy from the top shelf, they swoop in to buy Silver Bow as the U.S. shale merger continues in. Oh, it’s going to be very interesting considering the saga we’ve we’ve covered around silver Bo and Cambridge. And now enter a third layer, Crescent Energy. We will cover all that and a bag of chips, guys. As always I’m Michael Tanner joined by Stuart Turley. But a few days for me Stuart where do you want to begin. [00:01:57][101.9]

Stuart Turley: [00:01:57] Hey let’s start off with, their buddies over there at Penguin Empire. Who’s paying for free energy? Wind. Or as Penguin Empire reports, who’s paying for lunch? Michael, there are no free lunches. And I absolutely love what they did. Let me tea this up a little bit. When you sit back and and try to think, Michael, there’s a fallacy out there that wind is free. When the energy is free, it’s not free. And who’s paying for it? And so I did not understand some of the things in here. Miss Producer, if you could bring up the four technology trends chart, it’s coming up. It says turbine capacity, rotor diameter and hub height have all increased significantly over the long term. Michael, I didn’t understand this. Really taking a look at it in the United States, 2022, the average, newly installed was 3.2MW. That’s 7%. And three, it’s then larger than in 2021, but it’s, 350% since 1999. That is just those are huge. [00:03:10][72.4]

Micahel Tanner: [00:03:11] Yeah. I mean, again, you know, with if you haven’t seen a wind farm in person, I’d highly recommend going and finding one, because the physical footprint of these things are unbelievable. If you haven’t driven down a road before and seen, you’ve got the the truck in front of them. That’s the you know, watch out wide load. That’s a mile above. Because then you’ve got these trucks that just are carrying one blade that are taking up two lanes on a highway. You’ve got the other service vehicle behind. So the they’re really a huge footprint relative to say in oil and gas. Well, I mean, heck, if you have an opportunity, our friends over at Pecos Energy and our I’ve been out to their well site multiple times, the footprint of their well. And then in the background you can see a wind farm. It’s unbelievable. You’ll be shocked. Wait wait wait, I’m on an oil. I’m in an oil field, right? But yet the physical footprint of this field is drastically lower than the three windmills or wind farms that are behind them. [00:04:08][57.1]

Stuart Turley: [00:04:09] Outstanding point. And you did that perfectly, Mike. Well, even without, you know, for our, podcast Legend Home, I’m going to pay him after this podcast because, Miss Producer, if you could bring up the, slide that says it is the one, the second one down that has the this gas plant doesn’t need all those multiple steps. I’ll tag it in there for you. There are you can see in the lower right hand corner it says one of three, megawatt gas power plant. Look at how small that is. When you go up to the next three sections across each of those are sections. Michael, look how much land that is taking. Compared to one natural gas plant. Isn’t that crazy? Well. [00:04:57][48.3]

Micahel Tanner: [00:04:57] Absolutely. And that that, 103 megawatt gas plant is the amount of power that that is going or the amount of things that that power is relative to even that wind farm up there is unbelievable. And the gas power’s dispatchable. [00:05:12][14.8]

Stuart Turley: [00:05:13] Exactly. And so that one single graphic for anybody that is understanding what a section of land is, that is just unbelievable. [00:05:23][9.7]

Micahel Tanner: [00:05:24] A mile by mile. [00:05:25][0.6]

Stuart Turley: [00:05:26] Mile by mile on that baby. And then, in this also, there’s table six. We don’t need to bring that up because it’s pretty detailed, but it has a really amount of tonnage that is required for each windmill. And we’re here’s where I want to give a shout out for what I’m trying to understand. And making money that is land reclamation after wind farm death. Wind farms, do not last 30 years. They they’re lucky if they last 5 to 8 before they have to be reworked in order to get to maintenance. Without having all that, that’s a whole nother story. Here’s where I want to get into who’s paying for the land reclamation of these horrible land problems at the end of the year, like when we were talking about that more with videos later on. [00:06:16][50.3]

Stuart Turley: [00:06:17] Let’s go to the next one here, Michael. Okay. Widespread power outages from deadly Houston storm raises new risk. Hot weather. This is from NPR a our prayers go out for anybody that’s affected Michael. There was over 1.2 million people affected on Friday between New Orleans and in Texas. And our prayers go out to everybody. If you go to energy news beat.com and you take a look at under the top menu bar, there’s resources go to. Yeah power outages. And right now at the time we’re filming this on Sunday afternoon, there are 331,000 people still without power, from this storm. And Michael, they said there was 400 mile an hour wind, that took out major transmission line. This is going to be a little while for this comes back here. So as the Houston, area, meteorologist says it was 90 degrees or expected through the start of the coming week with the heat index is approaching 100. We expect the impact to gradually increase. Don’t overdo yourself. But when you take a look. Miss Producer, if you could bring up that picture of the grid. Downed power lines. This is amazing, Michael. These things are supposed to stand up to 200 mile an hour plus winds. They’re. They’re wrapped up like toothpicks. I mean, it’s unbelievable the damage that was done. [00:07:52][95.1]

Micahel Tanner: [00:07:52] It. I mean, obviously, these storms were deadly. It does point out that, you know, our infrastructure from an electrical standpoint is is fairly fragile. And we we talk a lot about this show about the cyber, you know, the whole cyber side of the the electrical grid and how a cyber attack could take it all down. We don’t talk much about how fragile the physical infrastructure is in, in terms of updating the grid, not only updating the grid to handle the new wave of renewables that are coming, but just allow us to be more. [00:08:21][29.0]

Stuart Turley: [00:08:22] Sustainable. [00:08:22][0.0]

Micahel Tanner: [00:08:23] Relative to the weather is definitely needed. [00:08:25][2.2]

Stuart Turley: [00:08:25] Oh, absolutely. And this brings up one comment that I would like to address all. People. And and that is take a look at a jackery. It’s a small generator. There are $350 on, Amazon, $200, solar to help do that. Okay, great. You got that little jackery that’ll supply you a light. And being able to, supply a little bit of stuff just for safety reasons. Make sure that you have a communication plan, have a 72 hour bag for natural disasters and or man made disasters. That could be coming. Be prepared. [00:09:06][40.5]

Micahel Tanner: [00:09:07] I think we need to come out with energy news beat preparedness bags. [00:09:10][2.7]

Stuart Turley: [00:09:11] I’m all in, baby. I think we need to. And and and Michael, you we laugh about it and you tease me for trying to preach being prepared. But you know what? If I save my life, I’m going to go to you one day, okay? [00:09:24][13.7]

Micahel Tanner: [00:09:25] I absolutely. I’m all about. I’m all about it. If there’s anybody that’s ready for preparedness, it’s you. All right, what’s next? [00:09:31][6.5]

Stuart Turley: [00:09:32] Let’s go to Biden administration. Increasing tariffs on $18 billion of imports from China. Michael, I got to keep that joke. I had a joke on Biden, and I was just going to keep my mouth before, air got a. Hold me on that one. Okay, let’s go to this one. In the release. Senator Riggs on, is into which describes itself as leading the ocean freight rate. Benchmarking new tariffs under President Biden may be a case of history repeating, said Peter Sand, chief of, analyst at. If so, businesses will be braced for increasing supply chain costs, and ultimately it will be. The U.S. consumers that pay for it. The Biden administration, I’m going to say the Biden administration because he does not know who he is. The Biden administration running this country does not understand anything about geopolitical management of supply chains and delivering low cost energy. They are going to run the grid through this, these. Let’s go through some of the tariff rates. The tariff rate on lithium ion batteries will increase from 7.5 to 25%. But yet they’re forcing everybody Michael to EVs. How in the world they thinking that they can afford to do it now. Well let alone with these tariffs on their their. No. [00:11:00][88.6]

Micahel Tanner: [00:11:01] Yeah it’s it’s I mean this is you know in we don’t give Biden much credit. He is following the playbook that Trump started. He was Trump was the first one to come out to put tariffs on China specifically when it came to the EV space, but also this the other inputs specifically to the critical minerals. So if we’re going to, you know, so I, I’m a fan of this if I’m usually a free market guy. But in this case we have to look out for our own good. You don’t think you think any would be doing this? [00:11:32][30.6]

Stuart Turley: [00:11:32] Absolutely not. No. Here’s here’s why I’m pumped out about this. I’m a seriously old grumpy man on this. And the reason is just. [00:11:41][8.7]

Micahel Tanner: [00:11:41] Not quite as old as Biden, but close. [00:11:43][1.5]

Stuart Turley: [00:11:44] Well, hey, even eight and never mind. Okay, I guarantee you that he. He does not understand that he’s forcing us to go to renewable energy. These tariffs are going to affect renewable products. It’s also in the critical minerals. It’s also and everything else and all of the products though all of these tariffs are going to be turned around. And all of the prices for windmills for solar panels and everything else is going to go up. So as he sits back and tries to go to an energy transition, he is muddying the waters of the supply chain. That’s not what Trump did. And so we can go into that. And again, no other time. You’re talking two different, shell games here, dude. [00:12:30][46.4]

Micahel Tanner: [00:12:30] Hey, I call like I said, I’m an umpire. I just call it like I see it. I’m just calling. [00:12:33][3.0]

Stuart Turley: [00:12:34] I need some glasses then, Mister umpire, because you called me. You did not call that one correctly. Let’s go to the next one. Michael. This one is absolutely. Electric buying interest declines for the first time since 2021. This is in a report. There’s markedly lower interest in EVs among people buying their first car compared to people who already had a car. Michael, I’m. This is unbelievable. Let’s take a look. A quote in here. Early drivers who drove more were found to be more likely to consider buying EV. But in their recent report, the trend is reversed in men falling fuel prices and anxiety about anxiety about charging, among consumers who commute 40 to 60 minutes a day each way, 24% were say they were very likely to consider an EV buyer exposed to the US. [00:13:27][52.8]

Micahel Tanner: [00:13:29] Yeah, I mean, I think people are waking up a little bit. One, I think the high cost of EVs have have pulled people back. It’s one of the things we’ll talk about in the, in the next, article that you’ll cover, which kind of weaves the thread you’ve got here. But I think a lot has to do with the prices of EVs. I mean, I would I have nothing wrong and I would love to consider a Tesla, but not for 100 grand. I’d love to get in on something that has a little bit more, but not again for 100 grand. People want to be able to move efficiently. They want to be able to travel for cheap. And as we’ve continue to see gas prices slightly come down, it’s made that arbitrage relative to where we’re about to see electricity prices this summer. You know, we’re going to cover with natural gas. Demand is going to go up a little bit. That arbitrage is going to close and almost flip. [00:14:14][44.8]

Stuart Turley: [00:14:14] Okay. I’m going to go with my Ford 350 so I can tell all the stuff that I gotta tell my welders and everything else I gotta do, all I got work to do, and I’m going to get a hybrid, that’s my next car is going to be a hybrid. I’m all in on that. Give me a 70 mile, 70 mile per gallon with a hybrid. I love the idea. I’m going to be the guy that balances it out. But an Eevee right now, a 100% EV family. I can’t do it. [00:14:39][25.1]

Micahel Tanner: [00:14:40] Yeah. You know, I mean, you’re right. You know, it does. What’s interesting is that that number of people who are who are interested in buying an EV are going down while 68%. And this this article points out, 68% of consumers are now looking to add an extra vehicle to their household. [00:14:54][14.2]

Stuart Turley: [00:14:54] Right now, what I do and I am going on record, I would love to do a podcast with Elon, and if I could afford a, I’ve got a plug ready to go for my Cybertruck in my garage. Started there. I already got a 220 ready dedicated for my Cybertruck. I just can’t afford one. So, Elon, if you want. A sponsor of the show. I’ll buy as I will take your money and sponsor it with that truck. Yeah, but hey, the other reason I think I want a Cybertruck is because it’s bulletproof. The only reason. All right, let’s go to the next one, Michael. Okay. This one if you’re going to have tariffs. Chinese companies should not benefit from the EV critical mineral tax credit. Michael, you can’t buy this kind of stupid. No wonder you know you’ve got great companies like, I interviewed the CEO and president, two different ad, two different people at different times from fresh battery out of Norway. They’re taking advantage of the Inflation Reduction Act and I applaud that. I think it’s great they have renewable battery technology. That makes sense. This is not let’s go into this here. According to Joe Manchin, the key author of The Tax credit, a core reason for disqualifying bad batteries with, any minerals from foreign entities of concern from that tax credit has been bad actors, namely China benefiting from the tax credit. Moreover, the current production of the for definition, the foreign entity of concern only deems an entity a foreign entity of concern if engaged from the extraction, processing, or recycling of such material in a covered nation. Here’s where it also does not cover that, Michael. And that is what about the batteries coming in from the new plants that they’re putting in, in Mexico to undermine the EVs, for the US manufacturer? This is a mess. [00:16:55][120.1]

Micahel Tanner: [00:16:56] Yeah, it really is a mess. And I think it goes. But it it goes to show that the, you know, you have to be very careful when you offer direct tax incentives. There’s going to be a market for people to come in and attempt to undermine them. So I’m glad they’re taking the stamp and at least making sure that Chinese companies can’t. And especially these bad actors can’t take advantage, because what are they trying to do? They’re trying to come into the electric vehicle market and lower the price, because they can come in and offer much, much lower vehicle cost because they’ve done a good job over the last 15 to 20 years of shoring up the supply chain, which, you know, if you want to go back to why EVs are so expensive in the first place, it’s because the supply chain is highly fractionalized. These critical minerals are extremely expensive to both get out of the ground. We’ve we’ve talked at nauseam about, you know, the the human rights abuses that are happening from countries like Congo and other places in which they are, grabbed from. But that still means that. And still, even though you’re making a dollar a day with an ax and your baby on your back to mine, these they’re still coming out to be, you know, tens of thousands of dollars, just for one battery to come out and, and fund these things. So it’s unbelievable. I, I applaud what gener, what Senator Joe Manchin is doing here, at least trying to carve out this function. [00:18:10][74.0]

Stuart Turley: [00:18:11] Oh, I agree, and I applaud anybody standing up for America. I don’t care if you’re a Democrat. I don’t care if you’re a Republican. Look out for America first. [00:18:21][10.0]

Micahel Tanner: [00:18:22] No, absolutely. Whatever happened to, Fetterman’s happened in the mansion right now. Oh. [00:18:27][5.2]

Stuart Turley: [00:18:28] Oh, I love the Fetterman. I did you see his quote? [00:18:32][4.8]

Micahel Tanner: [00:18:33] He’s had so many of them. [00:18:35][1.2]

Stuart Turley: [00:18:35] I swear. I think if a conspiracy theory was about to was ever there, it’s him. I think it’s not the original Fetterman. I think they put a body double in because he’s smarter, he’s better looking. I don’t know what happened, but when he said, I agree, I, I apologize or I, I originally said Congress was like, going to a Jerry Springer show. I now have to apologize to Jerry Springer. [00:19:01][26.3]

Micahel Tanner: [00:19:03] Hahahahaha! That’s a good one. [00:19:04][1.9]

Stuart Turley: [00:19:06] Hats off to Fetterman. I you know, I’d I right now I do even optimism with him on the podcast if you’re listening. You know Senator Fetterman, we’re gonna be talking to, Senator Cruz here pretty quick, so might as well follow up with the Fetterman. [00:19:20][13.9]

Micahel Tanner: [00:19:21] You’re, you’re you’re busting into, Congress. How fun is that? I will go ahead and quickly cover, the markets. But before we do that, guys, as always, we got to pay the bills around here. Thanks for checking out, www.energynewsbeat.com. All the news analysis you just heard is brought to you by that website. Go ahead and hit the description below for all the links to the articles that we just talked about and timestamps. If you’re listening to us on Spotify, if you’re listening to us on iTunes, spotify, just have to, bear with us here. Stu and 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. A lot of great stuff coming out this week. We’re getting ready to release a Deal spotlight covering Chevron buying has in the ensuing ExxonMobil debacle that is the Guyana and Stabroek block. So, check out that. Great interview by Bennett Williams. We’ll try to probably drop that on Tuesday. If you’re listening to this. So check that out tomorrow. As always guys, just check us out. www.energynewsbeat.com. [00:20:25][64.0]

Michael Tanner: [00:20:27] You know overall markets on Friday. It was it was a pretty, you know slow day just just for the markets. We saw the S&P up a 10th of a percentage point. Nasdaq dropped about a 10th of a percentage point two year and ten year yields actually jump two year yields up about 6/10 of a percentage point. Ten year yields just above one percentage points. Dollar index fairly flat. Staying there at 104. We did see bitcoin stay fairly steady at 66,000. That’s still up the week over week. So Bitcoin going on a little bit of a run. Crude oil finish is slightly positive about 1% for the week but about a half a percent for the day 7958. And here’s as the open is is rapidly approaching here as we record this Sunday afternoon. We’ll see where prices go. We also did see Brant Oil 8410. That’s a half a percentage point. Natural gas up $5 and 25 or excuse me, up the, 5%, 5.25%. Up to $2.62. Man. It’d be nice if it was up $5. That’s, up $0.13 relative to the open. Pretty unbelievable. You know, looking at what happened to oil prices, mainly what we’re seeing is, is, you know, we saw some, some economic indicators that came out from both the United States and China that, that, that, that at least, you know, possibly forecasted higher demand. We did see, Chinese factory output hopped April forecast as they released that. We did see consumer prices, increase less than expected. And we also did. And this is great. We did see rig counts drop and we can go ahead. Go ahead and put this chart up. We did see oil rig counts jumped by a drastic 1 to 497, which is the first increase in four weeks. Again, maybe not as much as we would expected, but we at least we’re seeing a turnaround in rig counts. Again. Super, super interesting. This is a quote from Tim Schneider. He’s an economist over at Matador Economics. Local here. To the DFW area, consumer prices were not as bad as expected. It gave the U.S. a little bit of boost. But I want to quickly talk mainly about natural gas prices. Guys, a 5% increase, mainly off the back of two things. We’re back on Freeport now. They continue. They’ve never been able to reopen. But as we move into summer and we move from a storage and we move from a store, excuse me, a drawer to a storage build that’s going, you know, what’s going to, balance price. Remember, we draw natural gas in the winter and we store it during the summer. But if we’re not, if the build in the in natural gas or natural gas, you strategic reserves, is it growing as quickly as the rate of electrical demand, which is what we saw here on on Thursday, Friday when the numbers came out. That’s what’s going to lead to a higher, natural gas that’s going to lead to an increasing natural gas price. We did see that the EIA reported, natural gas inventories rose less than expected. And this is again, is is easing concerns of a oversupplied summer, which would lead to lower prices. And again, if you’re building up reserves you’ve got an excess supply. So a Freeport. So what’s interesting is that while Freeport is still sort of down and that would lead, you would think, to less exports aka less demand or more inventories, even with Freeport being down and only having about 1 or 2 terminals up. You know, the the reason was, you know, some extreme cold that happened. I know we’re talking about extreme heat. It’s we’re all over the place here. But earlier in March, we did have some, some fairly, cold spurt that did, bring about two of them down. We also did we also did hear that there’s going to be some maintenance. So with more natural gas staying up here at home, that should that the theory was okay. Well we’re going to see lower prices because inventories are going to rise. We didn’t necessarily expect the EIA came out and said we did see actually lower inventory builds than expected. And we also got a report from the Edison Electrical Institute, or EEI, that total electricity output, for the week ending in May 11th rose 2.8 percentage points, year over year to about 74,842 gigawatt hours and cumulative U.S. electrical output, for the 52 week period ending May 11th rose by about a 10th of a percentage point, to about 4.1 million gigawatt hours. So electrical demand continues to rise and consumption as well. We see inventories rising less, or increasing less than they would they normally should, which is why we saw a nice big swing. You know, I know a lot of people in the Permian are saying, well, when is these when is this going to affect our. Differential. You know, we’re up to about $0.50 now. You know, I saw an article. We’re up 100% on natural gas prices in Permian. Well, where you’re up from -$0.30 to $0.40. So at least you can offload some of your gas. Very interesting stuff going on here. The only other thing that we saw happening and, and, you know, we we actually saw this in this drop while I was at Superdrug. So I didn’t get a chance to cover this on Thursday. Crescent energy to buy silver both as the US shale mergers continue. Crescent energy will come in and buy silver bo resources at a deal valued at 2.1 billion to create the largest or the second largest Eagle Ford. Your player in the United States is the oil and gas mergers continue. a quick transaction overview. Silver. Both shareholders are going to get 3.12 shares of Crescent class A common for each share of silver. Both common stock with the option receive all or the portions of proceeds at a cash value of 38, $38 per share, subject to a possible proration, with the maximum total cash consideration for the transaction of $400 million. Which means, you know, of course, Silver Bowl is going to want a little bit of cash, but they’re keeping a lot of this in, in stock. Here’s the quote from Crescent CEO David Rock. Charlie, the combination with Silver Arrow, which is expected to be immediately accretive to all key share metrics, solidifies Kress as a leading, option in the Eagle for and strengthens the company growth platform with increased share. We will see what happens from there. You know, we we’ve talked at nauseam about how Cambridge was attempting to do something with Silver Bow and then all of a sudden, crescent, you know, energy from the top, you know, from, you know, from the top shelf dives in and swooped up. Going to be very interesting to see KimRidge, who is the largest shareholder with a little with somewhere around 12% of all shares, how they how they, you know, push back against this, you know, you know, I think the the the key to and I think the overarching fact here is that, you know, it’s it’s going to be very interesting to see what Cambridge does in response to this. Obviously, you know, they were looking to basically take their Cambridge taxes gas, which used to be Laredo Petroleum, and see if they could slam that into silver, hopefully possibly cover up what could have been an over overvaluation that they had on Cambridge Taxes, gas that is now wiped off the table. So is going to be very interesting to see where they go from there. I guarantee you won’t be doing a deal spotlight on this. But this you know, this continues an absolutely, crazy, crazy merger and acquisition season that we’ve had. You know, 2024 has been pretty crazy for the mergers and acquisitions. You know, we’ve seen we saw 51. We’ve seen 51 billion in deals so far, according to our friends over at investors. So it’s going to be we’re going to continue to see you know, we’ve seen the Permian kind of wrap itself up. This is our first step out into the Eagle Ford. So it’s going to be very interesting. What kind of the next regions are obviously you know, we’ve got you know, there’s there’s some stuff in the mid can and scoop stack that could begin to, merge up. So, so we’ll be covering all that and a bag of chips guys. But you know Cambridge’s left without a dance partner at this point. Wow. Yeah. Pretty interesting. So I do what should people be worried about this week? That’s all I’ve got. [00:28:24][476.8]

Stuart Turley: [00:28:24] Well, get a plan. We’ll put out some suggestions. And we want people to stay alert and have a plan for any manmade natural disaster or a manmade disaster. We just want everybody be prepared and be leaders in your communities. [00:28:43][18.4]

Micahel Tanner: [00:28:44] Yep. Absolutely. No, we appreciate that. And we appreciate everybody checking us out here on the world’s greatest podcast, EnergyNewsBeat.Com. Check us out again at said website. But with that guys we’re let you get out of here. Appreciate everybody. We’ll see you on Tuesday. [00:28:44][0.0][1677.2]

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