February 29

Daily Energy Standup Episode #319 – Challenges in Climate Action, EV Market, Green Building, State Policies, and Corporate Investments



Daily Standup Top Stories

Demagogues imperilling global fight against climate breakdown, says Kerry

The populist backlash against net zero around the world is imperilling the fight against climate breakdown and must be countered urgently or we face planetary destruction “beyond comprehension”, the US climate chief, John Kerry, has warned. […]

Apple’s EV exit shows the challenges of the once red-hot market

Hi! Be prepared to start scheduling your trips to Wendy’s during off hours if you want to save money. The fast-food joint is rolling out surge pricing as early as next year. (More on why it could be […]

Homebuilders Are Fighting Green Building. Homeowners Will Pay.

Back in the 1990s, political guru James Carville said he wanted to be reincarnated as the bond market because it could “intimidate everybody.” Here in the 2020s, you might prefer to come back as a […]

Dimon Suggests Other States Should Be More Like Texas

Jamie Dimon applauded Texas for its business-friendly policies and said other areas including New York City should do more to attract investment. The chief executive officer of JPMorgan Chase & Co. praised Texas’s lack of an income tax […]

Warren Buffett Regrets Owning Electric Utilities

This year’s Berkshire Hathaway investor letter should be sobering for US electric utility investors. Mr. Buffett discusses two reasons why he appears to have soured on the business prospects for US-regulated electric utilities. Buffett recognizes […]

Atlas to Acquire Hi-Crush Permian Proppant Assets for $450MM

Austin-based Atlas Energy Solutions Inc. is acquiring all of Hi-Crush Inc.’s Permian Basin proppant production assets and North American logistics operations in a transaction valued at $450 million as it aims to create the largest […]

Highlights of the Podcast

00:00 – Intro

01:38 – Demagogues imperilling global fight against climate breakdown, says Kerry

03:34 – Apple’s EV exit shows the challenges of the once red-hot market

05:04 – Homebuilders Are Fighting Green Building. Homeowners Will Pay.

08:16 – Dimon Suggests Other States Should Be More Like Texas

10:35 -Warren Buffett Regrets Owning Electric Utilities

12:32 – Atlas to Acquire Hi-Crush Permian Proppant Assets for $450MM

13:50 – Markets Update

14:14 – Outro

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

Stuart Turley: [00:00:14] Hello, everybody. Welcome to the Energy News Podcast. My name’s Stu Turley, president and CEO of the sandstone Group. And I tell you what, it is crazy out there in the news in the energy space. Michael’s on assignment. Having a good time tonight. So let’s start with the top stories. Demagogues. Imperiling global fight against climate breakdown, says Kerry. You gotta love an old Kerry story. Apple’s EV x. It shows the challenges of the once red hot market. This one is pretty interesting. Homebuilders are fighting green building. Homeowners will pay. This is going to go along with a couple other stories here as well. Diamond suggest other states should be more like Texas. Gotta love me some Texas Warren Buffett regrets owning utilities. The man’s made a lot of money. You gotta listen to what he says. Atlas to acquire high crush Permian propellants. You’re gonna have to love that. You know, I’ll tell you, the, M&A market is going to be rolling around here pretty quick in a lot of different areas. So with that, let’s go ahead and big pile into the stories. [00:01:36][82.6]

Stuart Turley: [00:01:38] The demagogues imperiling global flight against climate breakdown. This one is really kind of irritating from a standpoint that if we looked at facts figures, in fiscal responsibility and lowered the lowest cost kilowatt per hour, we would be having discussions about this. This is a quote. He hit out at rise of the disinformation and the Margaret, demagoguery, which he said are damaging the transition away from fossil fuels and being tactic, used as tactics, for special interests to delay, act. Quote. People are not being told the truth about impacts from making this transition to net zero greenhouse emissions. He said, and, Larry, I mean, excuse me, lurch. I mean, excuse me. Kerry. They are being scared, purposely frightened by the demagoguery that is oblivious to the facts or distort and distorting the facts and in some case, outright lying going on. I agree with him is the first time I agree with him, but he’s not reading the facts. John Kerry, if you are listening to the podcast, you are always welcome to come on this podcast and the invitation I will fly out anywhere you are. And I will use a commercial flight, not a, a personal flight. So, with that, there are so many facts going on about, net zero. Let’s leave the argument whether or not we need to go there or not. You got to have an energy transition with an energy plan. And if one side won’t have a discussion, here’s where the rest of our stories are going to come in. [00:03:34][116.4]

Stuart Turley: [00:03:34] Rolling in. There is a major balance, out of the EV market, and we’re seeing the next big one. Apple’s EV exit shows the challenges of the once red-hot market. You’re going to hear it here. Second, I think that Tesla is going to be an excellent survivor. I think that in the US market, Elon is going to the high end in the market cornered. And again, this is not about whether or not you should own an EV. It’s whether or not we should have child labor abuse. Child abuse. Bringing in all of the minerals. I like Toyota’s, aspect of going to, hybrids. And in this, today’s big story, this is, we’re looking at Apple scrapping its plans for the, electric car. It they are throwing out ten years of work. They blindsided nearly 2000 employees on, trying to get them out there. Many workers will transfer to the Apple’s, I division to work on generative AI. I’ll tell you, Elon just is pushing them right on out. I would not want to compete with Elon. And, I’d love to sit down and visit with him some day. Got a few suggestions for him. All right. [00:05:04][89.6]

Stuart Turley: [00:05:04] Let’s go to the next one here. Homebuilders are fighting green building homeowners. Will pay. This one is really getting and it affects a lot. It is in the energy space as they are trying to force everyone to have high energy. Methodology in building their houses and making them more efficient, smaller. To make new houses more efficient and compatible with clean technology that is more expensive. And we’re pushing the prices of houses outside of the average person. Now with this, let’s go through some of it and the EIA, the unbelievable, the energy. Group, their housing climate impact is, carbon emissions in 2022. Residential was a, big part of it. I believe it was 19%. And so when you sit back and go, what was in this 19%? Is you can’t just lump residential in there. Is that the building? Is that, driving to and from work? I’m not sure that I really, think that this is fair. The cost argument that the homebuilders is saying is deeply flawed in two ways. $20,000 figure for increasing on each home, was only from one survey. It appears to be a wild exaggeration. A federal study found that new standards would actually raise building expenses by 4760 500 for a single family home. Lowering energy bills means homeowners would recoup their upfront costs in just a few years. This one I highly disagree with because it never works that way. And if we had a balanced plan to get from energy, fossil fuels, and you want to go to net zero in a least cost effective way, it would not matter. And people would be able to afford this, which came first? The house that had a lot of, insulation or having any money just to have a roof over your head. And, this is not going to pan out very well for them at all. In fact, Miss Producer, if you can bring up the video, I have a video, that, that some of the folks in the Energy Department sent over one. Week. And he’s he’s swinging it. Boom. And, so when you sit back, that’s a normal meeting in the energy department trying to make a regulatory actions. So, thank you, Mr. Producer, I appreciate that. [00:08:15][191.4]

Stuart Turley: [00:08:16] Let’s go to our next story. Dimond. Suggest other states should be more like Texas. This has a little bit of, about 3 or 4 different flavors in there. And last month, we had a article that rolled across our desk, and it, said that for the first time, Texas has out distance, New York for the number of financial jobs. So the financial headquarters is now turning to Texas, and it’s because of regulatory issues. Now. It’s also regulatory issues in the energy. It’s regulatory issues, in the financial sectors. And it’s, persecution against, corporate, corporations. So in New York City, the elected, not the mayor, not the governor, but a lot of the elected, they don’t want business. They didn’t let Amazon come in and build a whole new thing there. So we’re seeing that the not only the elected officials, but the regulatory, issues through legislation, through regulatory action is starting to really take a toll on businesses. Who’s going to pay for the taxes when all the businesses leave? They gotta have some forethought there. It’s kind of like Elon old getting forced down and leaving Delaware because of the way they handle them. Think of the tax revenue that Delaware just lost and is going to Texas. So hats off to Texas. One other side note Texas is now going to be having more storage than any other state. And then they are already the leader in wind and solar and wind. And when you take a look, they are half. The price of the electricity in New York and in California because of a balanced diet of energy. So balanced diet, you got to have all forms of energy. And you got to be able to balance the books. And Texas had a surplus and they even lowered their taxes. It can be done, folks. [00:10:34][138.2]

Stuart Turley: [00:10:35] All right. Warren Buffett regrets owning electric utilities. I don’t always agree with Warren, but he sure knows a lot more about making money than I do. Buffett recognizes the U.S. electric utility industry has a voracious need for new investment. But at the same time, deteriorating investment climate prevents him from investing in incremental sums. Boy, I’ll tell you what. This is going right along because the regulatory issues are being shoved at the energy, utility corporations and they are having to spend money in ways that are not efficient. And, here’s a quote out of the article. One theme of Mr. Buffett’s letter this year, to his investors, was explaining why, as an investor controlling a balance sheet of almost $1 trillion in assets, he can’t commit to more capital to certain businesses he really likes. With respect to utilities, he wrote, quote, I will be many years until we know the final tally from, but he’s forced to fire losses and can intelligently make decisions about the desirability of future investments in vulnerable Western states. If there’s any doubt he meant to change for the worse. And let’s explore why. I’ll tell you, again, he has done a lot of great investing deals. Don’t agree with some of his, philosophies. But, when you take a look at California’s Pacific Corp and Pacific Gas and Electric, they’ve had some real serious management problems. Mike, one of I always said good management, good numbers. So let’s come over here. Atlas to acquire high crush Permian, assets for $450 million. This is, kind of a, follow along with, say, not only, the ENP, operators are going to be seeing more, M&A activity, but you’re going to see a lot of the oilfield service and, they’re going to be streamlining and going through. Michael and I have been talking about the number of rigs that are being, run, and they’re starting with the technology. We’re still producing the most oil the U.S. has ever produced out of the Permian. The transaction includes 150 million upfront cash and 175 million shares in common stock, and a 125 million in deferred cash payments in the form of a sellers note, pro forma production capacity. Expect to be around 28 million tons, around 80% of the pro forma 2024. That’s pretty cool stuff. Hats off to them. And, the people there, both companies have some good folks at Atlas and High Crush. [00:13:48][193.2]

Stuart Turley: [00:13:50] At the time I’m recording this right now, it is. We’ve got, WTI at 78, 20. The dollar is, kind of hanging tough at $1 391. Nat gas is at 180. Nine. I don’t understand that one. And Brant is at 8212. [00:14:12][21.7]

Stuart Turley: [00:14:14] So, with that, there’s a few others that are doing quite well out there, in the market. And anyway, hey, I appreciate everybody listening to our podcast. Subscribe, like, share and, stay tuned. Please fill out, a survey if you would let us know your thoughts, ask us questions. Check out survey@energy newsbeat.com or.co. And, we want to hear from you. If you’re an industry leader, we want to talk to you. If you’re in the nuclear wind, solar, we’ve got some great guests coming around the corner and visiting with Robert Bryce tomorrow. And then also on Monday with the, energy realities with, Rena Slav, Tammy Nemeth and David Blackman and, we’ve. Got a lot more great ones coming around the corner. Thanks and have a great day. [00:14:14][0.0][833.0]

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