Daily Energy Standup Episode #200 – Weekly Recap: BRICS Expansion, Texas Energy Resilience, and Global Energy Trends

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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 is going on? Everybody, welcome in to a special edition of the Daily Energy News Beat Stand up here on this gorgeous Saturday, September 2nd, 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 director, publisher of the world’s greatest website, Energy News Beat, Stuart Turley. We are here bringing you our weekly recap in which we have our top segments for the week. Wild weeks. Do you hear a lot of good stuff for us? [00:00:42][27.0]

Stuart Turley: [00:00:42] Oh, it was absolutely nutty, man. I’ll tell you what, because buckle up. It’s going to get weirder. [00:00:46][4.2]

Michael Tanner: [00:00:47] Buckle up, buckaroo, as they like to say. And we hope you guys have a great Labor Day weekend. I’m sure the plan for recording is we’ll probably take Monday off and we will be back Tuesday to give you guys a rundown of what’s going on. So stay tuned, guys. We will see you on Tuesday. I’m going to leave it up to the weekly recap. But remember, before I do that, as always, the stories and analysis you hear about here, courtesy of World’s greatest website. Without interviews, become Apple Podcasts, Spotify. Subscribe to us on YouTube, guys. We appreciate Stu and the team does a great job of curating this and making sure it’s up to speed with everything you need to do. Dashboard.energynewsbeat.com [email protected] I’m out of breath. Go to the weekly recap. We go. We’ll see Tuesday, folks. [00:01:27][39.9]

Stuart Turley: [00:01:28] Michael I got three stories, for BRICS and four our a little inside baseball on our successful podcast that we have is because of you, your diligence, your millennial outlook on life. And you and I fight. I mean, we discuss these stories. [00:01:43][15.0]

Michael Tanner: [00:01:44] And who you were talking about. [00:01:45][0.9]

Stuart Turley: [00:01:46] You and I argue or discuss about these stories. You are always I have to defend my stories, too. You know, this is boom, boom, boom, boom, boom. He lives when I’m doing a story or two, I guess three in here on BRICS coming around the corner and China’s impacting the U.S. This. [00:02:04][18.4]

Michael Tanner: [00:02:05] One is some scary brick stuff. I think we need to start from the top, though. So let’s start with what happened in BRICS. We had we’ve been talking we’ve been scaring people for months about bricks expansion. We’ve been applying for BRICS. I’m sorry to say we did not get approved into BRICS. Who did get approved? Let’s start there. What? [00:02:21][16.5]

Stuart Turley: [00:02:22] Okay, Miss Producer, could you bring in we’re going to bring in several slides on this for our podcast listeners. The first slide coming around the corner is from our random dude on Substack. And I really, I really like Andrew Korybko’s and he is a Russian Ph.D. now. He just got his Ph.D. BRICS was originally Brazil, Russia, India, China and South Africa. And in January 2024, they are going to be Argentina, Egypt, Ethiopia, Iran, Saudi Arabia and the UAE are joining. These 11 countries have combined population of 37 billion people. [00:03:09][47.6]

Michael Tanner: [00:03:10] 8.7 billion? [00:03:11][0.7]

Stuart Turley: [00:03:12] Yeah, 3730. Sorry. Thank you for fact checking me in regards. [00:03:15][3.0]

Michael Tanner: [00:03:15] To your Oklahoma State education there, folks. [00:03:17][1.7]

Stuart Turley: [00:03:17] I can’t argue, did they? They issued me crayons and I for I programed in Fortran on a card debunked so that’s insane. [00:03:25][7.9]

Michael Tanner: [00:03:26] So read me that again here let me get this right on top of Brazil, Russia, India, China, South Africa. That’s the original BRICS. Now we’ve got Iran, Argentina, UAE, ah, Saudi Arabia, Egypt and Ethiopia. How did Ethiopia get in there? [00:03:41][15.1]

Stuart Turley: [00:03:41] I don’t know, but I guarantee you they’ve got some AI are rigged. [00:03:45][3.8]

Michael Tanner: [00:03:46] It’s rigged. The election was rigged. [00:03:47][1.7]

Stuart Turley: [00:03:49] Okay, now, listen, think about this. The other article is in there and it is now that new composition, Control of 80% of the world oil production. This goal coincides with Andrew’s article in many ways, but it documents. Now, while this is let me go back to Andrew’s article here. I brought that in just as a particular moment. This is what I said in my publisher’s note. Excellent overview of BRICS expansion. It is clear that the new members are a solidification of the BRICS bank and the global financial model. Changing the other geopolitical implications are significant. The new BRICS bloc will control over 80% of the gas rich oil and gas reserves. This is effectively ending the United States ability to weaponize the dollar and complete Western cultures falling into decline. I recommend subscribing to Andrew Korybko’s here and a random Substack of the Day guy newsletter. He is not found in mainstream media. I don’t agree with everything he says, but holy smokes, he brings his A-game there. So here’s where it gets. He brings up the final. Central part. My and my goal and I want your opinion the BRICS monetary and I’m going to call it the bricks block because this is not bricks plus it’s I’m calling it I created the bricks block because it’s now a block of bricks. Pretty good pun, but it’s the financial bank is going to be most likely the one. And it’s also going to be kind of like the McDonald’s playground, because if you want to join bricks, you’re going to join the bricks monetary system. So it’s like the entry into bricks. You’re going to join their monetary system. They also came out with a note and said, oh, by the way, we’re not going to interfere with the U.S. dollar as the global standard. But he documents in here that it’s going to help accelerate the dollar to India’s ruble, to Russia’s ruble. I mean, it is absolutely going to eliminate the United States as a world bully. Absolutely. [00:06:16][147.1]

Michael Tanner: [00:06:18] I think the most important part of all of this, you know, first off, there’s nothing funnier than getting to watch to read his own writing because you can just see the you can see him understand the errors that he’s made in writing, in the grammar. He was trying to make the sentence make sense. So we’ll go clean that up before everybody sees that. First up. Second off, the you brought up the most important part is that BRICS is going to control 80% of the world’s oil production by January 2024. Absolutely insane. I think the fall out from BRICS specifically is you talk about moving to the BRICS currency. I don’t think the BRICS currency is really on the table yet. I think what’s going to happen is exactly what you mentioned. They’re going to shift to probably the one, maybe the ruble, maybe something been India transaction. But they are going to now, you know, OPEC is essentially dead now. BRICS now probably becomes the major player when it comes to oil and gas prices go up. Price is going to. And now there’s other interest. It’s going to be interesting, you know, including Ethiopia in there, Argentina, you know, you know, now you’ve got obviously, Brazil was in there before Saudi Arabia. But how does Saudi fit in with all of this, specifically with the other geopolitical things around there? I think it’s critical that the United States begins to increase its oil and gas production because this is going to become a problem in the near future if they decide to be like, well, now we’re good on or, you know, we’re going on send in on shipments to the U.S. Hey, we’re good on this. I mean, we get a lot we get a lot of our oil from around the world. I mean, yes. Can in the United States make up the majority of our own domestic consumption? But we still rely on other things. Europe, I think, is in trouble. If I would be scared if I was sitting in Europe right now thinking about how everybody around me is ganging up on me, and if Russia doesn’t get me with the gas now, Saudi might get me with the oil. [00:08:04][106.4]

Stuart Turley: [00:08:05] I’m going to throw this squirrel in it as a very ugly squirrel with big teeth. And so you’ve got not only do we need heavy oil because of our refineries, we if we had the Keystone pipeline, this might not even be an issue. It is that significant. So when you take a look at heavy oil, Brazil, we are sanctioning the snot out of Brazil. Brazil is where we have to get a lot of our heavy oils. Then you take a look at India, Russia, China and everybody else on this. Who are we sanctioning around the world? Middle Iran, Saudi Arabia. [00:08:44][39.0]

Michael Tanner: [00:08:45] It’s everybody in BRICS. [00:08:45][0.8]

Stuart Turley: [00:08:46] Everybody in BRICS. This is 100% the cause of the U.S., period. [00:08:52][6.4]

Michael Tanner: [00:08:53] All I want to know is why did our application of BRICS get denied? Do? What did we do wrong? [00:08:59][5.7]

Stuart Turley: [00:09:00] They did not like my President Biden imitation. They thought I was too close and they thought I was they thought I was okay when I was imitating Putin. [00:09:09][9.1]

Michael Tanner: [00:09:10] Okay, fair enough. Fair enough. [00:09:11][1.0]

Stuart Turley: [00:09:11] Made in Germany, fueled in America. When we sit back and we take a look at what the price difference is on natural gas versus what natural gas is in the UK and the EU compared to the US, this is frightening. And when the EU lost the Nord Stream Russian imports, it is absolutely bonkers. European gas futures predictably relinquished recent gains as fears from Australian LNG strikes receded after Woodside’s energies struck a tentative deal with the unions. The most interesting EU gas story last week was BASF deal to import US LNG from Cheniere. We like that, which could save the German chemicals plant as much as 4.8 billion compared to buying gas at European. Wholesale prices. Wow. You know, that is just absolutely nuts. Typically, deals are struck just like this one, BASF. They had to shut down last month. BASF just had to shut down a fertilizer plant, which again, snowballs. And the whole energy, the cycle of problems for food inflation. The world revolves around energy, and this is another example of it. At the close, in the different ports or different hubs. Henry Hub as to 66. Just as a price for natural gas, the Jkm and the t, f and the in NWT LNG, those are all between 1196 and 13.46 tells you that there is a significant difference and a an incredibly amount of difference between the U.S. and what the U.K. has to pay for natural gas. You got shipping fees, you got transported across the ocean, you got a D gas off it, and then you got to get it into the pipes. It’s expensive, but that price is nuts. Why doesn’t the U.S. really take advantage of it here? Don’t know. But anyway, in 2019, the world was awash with gas. I love the way they said that the cost of liquefying and transporting it. There were, I believe, 29 different 67 cargoes had to be canceled because of COVID and the lack of purchasing. That’s all changed. Geopolitical issues and sanctions all changed. All of that. So you got to love Cheniere, you got to love LNG, you got to love the great United States energy machine. 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 is 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 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. [00:13:41][270.2]

Michael Tanner: [00:13:42] 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. [00:14:05][23.8]

Stuart Turley: [00:14:06] Now, 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 declined 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. [00:14:46][39.5]

Michael Tanner: [00:14:46] Yeah, no, we do. [00:14:47][0.9]

Stuart Turley: [00:14:48] Speaking of good things, oil and gas success in Texas and New Mexico, what does it mean for renewable energies? Let’s go through this one. This one’s got that’s out there. Was you in the Permian. Right now, a USA makes 13 million barrels per day out of the Permian, 90 Bcf. CFD out of that Permian. That’s a lot. [00:15:13][25.3]

Michael Tanner: [00:15:14] It’s a lot of gas. Yeah. [00:15:15][1.2]

Stuart Turley: [00:15:16] Now, my finger. [00:15:16][0.4]

Michael Tanner: [00:15:17] The real question is, have we reached peak? When’s peak Permian production in your mind. That’s the real question. So it’s 13 million a day. If you go and fly those two first top two charts off oil production and natural gas production, is it at the tops? Do have we reached. [00:15:31][13.9]

Stuart Turley: [00:15:31] Think so. [00:15:31][0.1]

Michael Tanner: [00:15:32] You think? [00:15:32][0.1]

Stuart Turley: [00:15:32] I think there’s cut. I think there’s still a lot more in there. And I think that there’s new technologies coming around the corner. I don’t think we’ve seen peak yet. [00:15:40][8.3]

Michael Tanner: [00:15:41] You know, we’ve seen peak five and a half billion out of the Permian. Love that That’s what over I it’s like 30 40% of the all the oil we make. [00:15:49][8.3]

Stuart Turley: [00:15:49] It’s crazy it is a ton dude now when you sit back and take a look there are some other things in here. Texas, the number one state has 4.6 times more crude production than New Mexico. Texas, as a country, was number fourth in world oil production. Go tax it Renewables production is less than 7% of total energy production in both states, meaning oil and gas dominates as expected, the Permian for the energy. But Texas, as a country ranks number fifth in the world with wind production. [00:16:27][37.8]

Michael Tanner: [00:16:28] Whac-A-Mole in Texas is an example of how both wind and gas should play hand in hand. Now, be honest. Now I have my issues with their cock. Course everybody does. They’re not that smart. But there is something to be said about Texas is on the path to making both of them work right now. [00:16:47][18.2]

Stuart Turley: [00:16:47] Later on in the article, it says the reason that Texas has gotten so good or has such a base is because they’ve been doing it since 2002. And Governor Perry is the reason and I’m going to throw this out. We’re scheduling him. And Alex Epstein, we’re coming up with both of them. They haven’t talked to each other in a long time. We’re sneaking that bad dog out there. We got both of them coming on the show. Love that. Love that. All right. So you sit back and take a look. Texas does it right. Our energy costs are half of what California is. You can have your renewables, you can have your nuclear, you can have your coal, and you can still do it right. [00:17:28][41.2]

Michael Tanner: [00:17:29] You can have it all. You can have your cake to. [00:17:29][0.0][1008.2]

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