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In the Energy News Beat – Conversation in Energy with Stuart Turley, talks with Steve Reese to discuss the global energy sector’s current challenges and opportunities, particularly focusing on Europe’s energy security amid Germany’s reliance on Russian natural gas. They highlight American Gas Partners’ role in supplying LNG to Germany and Poland as a solution to the energy crisis. The conversation also covers the influence of green energy policies, the role of natural gas in global markets, and the positive impact of Environmental, Social, and Governance (ESG) initiatives on energy companies. Steve delves into the potential of uncompleted wells and legacy basins in North America, as well as hydrogen’s future in energy production. The discussion offers valuable insights into the evolving energy landscape and sustainable energy practices.
This is an excellent episode with Steve as we talk about key industry issues and leaders. Steve is a national treasure in the energy space, and he knows the natural gas markets. We are also thrilled they will sponsor the daily show for Reese Consulting and Reese Training. We recommend you connect with Steve on his LinkedIn and his websites.
Thank you, Steve, for your time, leadership, and friendship and for stopping by the podcast! – Stu
Steve Reese LinkedIn: https://www.linkedin.com/in/steve-reese-185a86/
Reese Energy Consulting:
Reese Energy Training:
Highlights of the Podcast
00:07 – Introduction
01:34 – Trump’s Cabinet Picks
02:31 – Germany’s Energy Crisis
05:24 – Natural Gas Supply Solutions
09:09 – Geopolitical Issues & Energy
12:23 – ESG’s Positive Impact
13:06 – Uncompleted Wells & Legacy Basins
14:05 – Diversification in Gas Production
17:15 – Hydrogen & Power Plants
19:27 – Future Collaborations
Stuart Turley [00:00:07] Hello, everybody. Welcome to the Energy News Meet podcast. My name’s Stu Turley Presidenct CEO of the Sandstone Group. We are recording this podcast on the right before President Trump’s inauguration. President Trump is stepping into a landmine left by the Biden administration. And that landmine has got several key pieces of information that President Trump does not have yet. But he has got an all star cast lined up going through the Senate hearings. And I mean, Chris Wright. We’ve got Doug Broome and we’ve got Lee Zeldin that are going to be covering in the energy space some critical points. And I’ve got one of the United States leading industry experts who is really, in my opinion, one of the key players in the natural gas area. I’ve got my dear friend Steve Reese on the podcast today. How are you today, Steve?
Steve Reese [00:01:08] I’m doing great. And first of all, a big thank you to all my friends and followers that have prayed for for my health. I’m doing fantastic and headed towards a kidney transplant by a wonderful donor. And so I’m excited and looking forward to to continuing to get healthy and our businesses just thriving and anxious to talk here with my old buddy from the wrong college.
Stuart Turley [00:01:34] You know, you know what’s really cool, Steve, is a prayer works. And without God, I would not be here.
Steve Reese [00:01:42] So I’m saying my, my, my my transplant doctor looked at my chart and he goes, You haven’t dodged a bullet. He goes, You’ve been dodging cannonballs. And I said, Well, as you know, just the Lord keeping me alive. So anyway, let’s let’s get after it, my friend.
Stuart Turley [00:01:58] I’ll tell you what. I cannot wait to see you at night. We’re going to have a Nate Booth. We have, I think, six booths over there, and I’m already getting podcasts lined up. Last night I think we did 35 podcasts. I thoroughly enjoyed our podcast with you. We had Doom Burg. Even there, people were lined up to see the Green Chicken, but he was really remote. But Chris Wright showed up on the podcast shortly after that with Doom Burg and Chris Wright even came up to say hi to you and a.
Steve Reese [00:02:31] Great, great pick a Trump knows what he’s doing with these with these cabinet picks. So I’m excited for Chris and Doug and those guys to to take the ball and run with it. Now that, you know we’ve we’ve intercepted the ball, we’re running it back for a touchdown.
Stuart Turley [00:02:45] You know, if you don’t dislike your government enough, it is amazing the landmines that the President Trump is going to have to maneuver through. And I mean, his cabinet picks are the strongest I have ever seen for any one single administration.
Steve Reese [00:03:06] Yeah, absolutely. And and hopefully of your spot, we were talking earlier that I’ll get a chance to be on a panel with Chris and those guys at some point in the next year and look forward to engage them like we did Senator Cruz last summer in Dallas.
Stuart Turley [00:03:21] I’ll tell you, in the that was a van tastic event with the Americans for Prosperity. And I’m interviewing again Genevieve Collins from the Americans for Prosperity. And I would love to get Senator Cruz, them and Chris Wright on a panel to talk about the energy issues and the landmines that have been left for them. They are not very pretty. And I mean, you take a look at the money that has been mismanaged and spent an additional $2 trillion to the $7 trillion that the Biden administration has added. That’s now. I went to OSU and you teased me about that. We can barely count, but I can count. I count $9 trillion that the Biden administration’s is handing Trump. That is not only a recession, that’s like a depression waiting to happen unless he can navigate his way through this.
Steve Reese [00:04:26] Yeah, absolutely.
Stuart Turley [00:04:27] And energy is at the forefront. Germany with totally green energy. They have gone through deindustrialization, geopolitical problems, and that’s a whole nother can of worms over there. We cannot ship enough LNG over there because it cannot replace cheap Russian natural gas. Let’s say cheap Russian natural gas is a dollar. LNG over there is $20. You can’t be industrial at that price difference of. So we. But I see. I want to know what your thoughts are on the natural gas front, because drill, baby, drill is one thing. But all the oil and gas companies are now drill, baby, drill when it’s fiscally responsible because they’re responding to giving back money to their shareholders. What are you seeing on the forefront with all of that mix going on?
Steve Reese [00:05:24] Let me start with your your comments about specifically Germany. As you know, we have a firm called American Gas Partners that is a firm we founded seven days after Ukraine was invaded. And so we’ve been working on this for two years. It will be a majority. We thought initially a majority German owned LNG infrastructure firm, infrastructure firm. We we will be the only end in solution where we’re going to take title in the Gulf and we’re going to own all the our own liquefaction capacity, transport and regasification capacity all the way to the end users. We’ve met with over how that with over 75 German CEOs, 100% have said they want U.S. shale LNG supply. We met with BASF. We work with the tire manufacturers, the glass manufacturers, brands, you name it. We’ve been in front of them. So we have signed. So so what we’re seeing now is we have one of my partners, good friends that we’ve had an office in Berlin now for about a year and a half. One of my partners, best friends, will be the next chancellor of Germany involved in writing their energy policy. As you know, Germany and a lot of Europe is turning to the right. We’ve had discussions with the head of the EU and now we have a meeting with the president of Poland next week. So we’ve signed our first two offtake deals in four Germany and Poland, and we’re on board to sign two more this month. So that on the supply side, the reason that it may work versus cheap Russia natural gas is they don’t they don’t trust Russia.
Stuart Turley [00:07:13] Right.
Steve Reese [00:07:13] You know, the gas business, this is my 44th year. The one thing I have learned is price isn’t always necessarily the top component of the mix delivery, quality and security of supply. A lot of times, no pun intended, trumps even price.
Stuart Turley [00:07:32] I’ll take the pun.
Steve Reese [00:07:33] Because of what’s happened, you know, in the past. So we’re excited about that. And yes, we we’ve had discussions with Toby Rice. We may be moving some of his gas under those contracts. Nine have had two discussions with Harold here and discussions with expand to former Chesapeake and Southwestern. So we’re going to try to have the heavy hitters on this side and also direct to all the end users over there. Really, due to my partner’s relationships in Western Europe.
Stuart Turley [00:08:06] This is an a phenomenal update. Steve This is fantastic. It really does.
Steve Reese [00:08:13] We’re really excited. And, you know, of course my team will be involved on on the supply side over here and we’re working already with, with, with Tony’s guys on, on moving some of his gas into our first contracts. And we’re hoping to be up and running and actually moving molecules by 2027. As you can imagine, these are long deals and we’re we’re involved. We were going to usurp Biden regardless in that we’re going to use floating LNG liquefaction facilities of relevance. And so we’re involved with Delfin in one of the boats being built in South Korea right now. So we’re really excited on on that front. And I think regardless of who’s in office over here, we’re seeing the Europeans say we want to secure, you know, robust natural gas supply for our power because it’s almost devastated the German economy.
Stuart Turley [00:09:09] You know, the floating liquefaction and gasification facilities are amazing. Yeah. And and and what this kind of discussion needs to get to Chris Wright and President Trump because like we were talking about Hawaii, why is Hawaii are heaven on earth using 60% of their electrical generation is from fuel oil, which is the worst kind of, you know, pollutant out? It’s worse than coal. I wouldn’t it makes sense. Like Vietnam just dropped in a big ass vacation to electrical plant. I mean, it’s straight from LNG to the plant and it off it goes.
Steve Reese [00:09:52] It’s insane. We are working on a plan to bring quite a few German CEOs and business. Leaders over to meet with Toby and tour his fields and.
Stuart Turley [00:10:04] Rice.
Steve Reese [00:10:05] With either the president and or Chris and some of those guys we really want to get in front of Chris in another reason the German government and the EU now are both telling us they’re possibly interested in providing the credit for us to buy this gas. You know, it really I think our government should be looking at that as well because it’s a lot of gas. It takes a lot of credit to be able to buy those kind of supplies.
Stuart Turley [00:10:34] Absolutely. But when you sit back and take a look at the despicable Biden administration, because we know Biden is not capable of making a decision past his next ice cream cone, it was the administration that put the LNG ban out there. And we still look to be doubling within the next five years. Our LNG.
Steve Reese [00:10:56] Yeah, it’s there’s a thing called momentum to amend the bill and.
Stuart Turley [00:11:00] That maybe should be shot.
Steve Reese [00:11:02] Yeah. A lot of times, you know, push comes to shove the market will take care of itself regardless of what the bad actors try to do. And so now we’ve kind of got our team, you know, chosen and we’re moving down the field. Like I said, we’ve intercepted the ball and we’re going to try to run it back for a touchdown. And I think the ones in the energy business are excited. It’s interesting because as much as they had their foot on our neck for four years, we’re still a record production.
Stuart Turley [00:11:31] In spite of them having their foot I mean, in spite of having it on there. Holy smokes, Batman. If now I got to hand it to, you know, ESG did do the a good thing for the oil and gas. And over the last ten years in the fact in through the governance aspect of it and I applaud the the oil and gas, big oil and gas, as well as many you know, 50% of our oil and gas is made by private companies. And all the oil guys that I work with, a big and small, large and small caps and privately held, they are giving money back to their shareholders. I think governance and the ESG was a good thing. And I think that just unrelenting and unwise spending is a thing of the past.
Steve Reese [00:12:23] Yeah, you know, I went through a couple of private equity deals myself, and I saw a lot of times where there was a lot of stupid money out there. And I actually on the reverse side, I had a couple of clients where their PE backers, when prices went down a little a few years ago, they panicked and sold too quick. And now I think there’s a lot more intelligence behind rates of return and capital expenditures. And, you know, when we talk about drill, baby, drill, we forget about all the ducks. We forget about all the uncompleted wells sitting out there. And I haven’t looked at the numbers recently, but there are probably thousands of uncompleted wells that are going to take a drill bit to.
Stuart Turley [00:13:06] Finish, right? Yeah. Well, you know, I just took a look at the ducks as well too. And on the ducks, they have used a lot of them because they’re a lot cheaper to go after as far as a as a thing. And I think that I noticed that there were thousands that they had used last year from the EPA reporting and everything else. I’ll go take a look at those numbers.
Steve Reese [00:13:27] But what we’re also seeing, too, is we’re seeing some interest to back into some legacy basins here in Oklahoma. Up the you went to, you know, a lot of the Tier one Permian acreage. You know, it’s been drilled up now. These wells are still phenomenal and doing great. But on the gas side, of course, we still do a lot of business with research and consulting in the Haynesville and in the Marcellus.
Stuart Turley [00:13:52] Nice.
Steve Reese [00:13:53] Still some very prolific wells being drilled over there. And I know people want to kick you out and expand and and call them started. A lot of those guys have done a great job.
Stuart Turley [00:14:05] Nic did deal do deal. Yes I can’t you know he is a super guy I believe at CNN.
Steve Reese [00:14:12] I’d like to meet him. I have hopefully he’s he’ll be a day by kind of we have our targets on him. I think there’s a couple couple of ways we could help them. And also the guys are diversified. So I’ve got to I got to get my my rope out and try to corral those chickens here.
Stuart Turley [00:14:27] I’m going to put you I’m going to see about sending you and him and our Nic. I put him up there with you and Toby as great leaders just like Chris. Right. Leading inner Liberty Energy is absolutely there’s a a different kind of caliber in you. And he would absolutely hit it off wonderfully.
Steve Reese [00:14:47] That’s awesome. That’s awesome. You know, one thing that has changed with respect to the gas business and that we’re heavily involved in is the I data center. Or development. Right. We’re being approached now working on our first contract to help those guys. Both was physical gas connections and with commercial supply negotiations and handling their their product or their gas supply. And they’ve gone up and realized nuclear is great, but it takes a long time to implement a wind and solar or kind of obviously we know the issues there. And natural gas is one that is obviously we believe is of course, cleaner and ubiquitous and readily abundant. And so we’re starting to get some interest. We’ve had about 3 or 4 firms reach out in the last quarter, just knock on a door and say we’re going to be looking at doing this, help fund your help. So that’s pretty exciting. And those those those are large assets. Those are large footprints that are putting in.
Stuart Turley [00:15:49] On my substack. I just put out a note and taking a look at Ercot, Ercot’s demand is expected to demand to double in the next five years. The only way that Ercot can meet demand is not with renewable, not with nuclear, not with coal, because it can’t get it approved and it’s natural gas. And the amount and natural gas can come on quick enough. And I looked at their pipeline and I kind of did it. Crayon math again, OSU versus OSU. You know what you’re doing? Me, I have to use crayons. We don’t know how to read. And so I was sitting there and I did the math and the budget for new power plants coming on. I have to hand it to the Texas Ercot for having the the the roadmap there for the first two years is there. And so now that they’re in session now, this is a great conversation to to have with Chris. Right. And to have with Ted Cruz and and all that because the United States is not like Texas. They’re not going to ramp up in the way that Texas has in looking at natural gas. The only way that we can put in a natural gas plant now is if it is dual fueled, approved. Right. Hydrogen and natural gas. What are the odds, Steve, that we’re going to have enough hydrogen ready for a power plant?
Steve Reese [00:17:15] There’s there’s two major issues with hydrogen. One is the cost of production and the other is trying to use the same transportation assets as natural gas because of the molecules are detrimental and really a safety hazard to steel pipe. And so I think it’s a nice buzz word and I think it’s nice signaling and I think there obviously are some applications for it, but it’s got a long, long ways to go and. Yeah, yeah. It’s, you know, the natural gas side, the interesting we’ve been also approached there’s some some guys that looks like I’ll be on their board and we’ll help with a lot of their business development. A company that is now taking flared gas from refineries and turning it into LNG.
Stuart Turley [00:18:03] No way.
Steve Reese [00:18:04] And so I love that. Yeah, we need to. So we were I’m working on negotiating a contract with them to do it, probably be an advisor and our team also help them with with marketing their their product could also help them sign up. You know we’ve got 5 or 6 refineries within a couple hundred miles of you and I. And so there’s a lot of exciting things like this. Now that all started to tie in together.
Stuart Turley [00:18:31] Well, I think what we’re going to do, Steve, is when we’re at Nape, let’s do a recording for another update on this. And I’m going to reach out to Chris and a few of the other folks as well. This will be out by then. And let’s follow up, because I think there’s so much going on. I’d like to have a regular once a month with Steve Reese on the podcast.
Steve Reese [00:18:53] That’s great and I’d love to be if we could do a podcast at night with with Chris and Jay or who or whoever, you know, to you better. But I think there’s some things we can let Chris know of some ideas between both the domestic side and these and the things we’re doing at American Gas Partners because how fun. Yeah, We’re going to have already we feel pretty confident that both Harold and Toby are going to be, you know, right there next to us, march down the road. And that would be really exciting.
Stuart Turley [00:19:27] And I know that Harold Hamm called President Trump to endorse Chris. Right. And I know that Chris is the best man for our Department of Energy that’s in the United States.
Steve Reese [00:19:40] So I think he’s very succinct. He’s very humble and laid back. I don’t think he used to kind of gets his feathers ruffled. I think he kind of puts one foot in front of the other and keeps truckin and Well, so we’re we’re excited.
Stuart Turley [00:19:54] Well, Steve, you’ve got three components to your thing. We’re we’re running out of time here, but. You’ve got Reese Consulting, you’ve got Reese training, and then you’ve got your LNG partnership going on there. How do people get a hold of you, Steve?
Steve Reese [00:20:08] You know, feel free to just find me on LinkedIn. You know, we’ve got a lot of followers or go to Reese Energy consulting.com or Reese energy training.com Our training courses will have four of those videoed and online by the end of Q1. We’ve been doing some training for inside Italy around ready to possibly look at merging with another large training firm. And we’re working to to try to look at getting those. We’re working with Texas A&M University. They want to use a couple of my gas courses as accreditation courses for both faculty and students. So, you know, we’re start we really need that now and we’d love to start talking to people in Chris’s shop at the Do you do you deliver for training as well? Okay. I appreciate you having me on and that sounds great. Forward to seeing you here in a couple of weeks.
Stuart Turley [00:21:02] Sounds great, Steve. Thanks.
The post Fueling the Future: LNG, Energy Policy, and Global Impact with Steve Reese appeared first on Energy News Beat.
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