Daily Energy Standup Episode #339 – Fiscal Challenges, Nuclear Solutions, Global Risks, and Policy Imperatives

(WO) – Without stable energy policy and a globally competitive tax regime, the UK will miss out on the lion’s share of the benefits from a domestic offshore energy market that could grow to £450 […]

Phillips 66 explores sale of pipeline stake worth over $1 billion, sources say

Stuart Turley: [00:00:15] Hello, everybody. Welcome to the Energy News Beat Daily. Stand up. My name’s Stu Turley President , the CEO of the sandstone Group. Today is March 28th. Buckle up. We are going to have some wild stories today. We’ve got Colorado lawmakers. It that cuts hard choices as state faces $170 million shortfall. Wow. Budgets are getting tight. And then we have come in around the corner, and we have another one. Small nuclear reactors maybe coming to Texas, boosted by interest from Governor Abbott. Gotta love me some Texas stories. We got Russia’s shadow fleet is putting Danish waters in danger. We’re seeing more and more, activity around the world. And, the dart fleet’s getting some, legs. Oh, mine. In the next story season, increasing ship to ship transfers of Russian oil bound for India. And then we also have coming around the corner UK to miss out on 487 billion generated from offshore oil and gas market without a stable energy policy. Holy smokes. There is a trend. People are, needing some, mathematical skills here. Also, let’s take a look at Phillips 66. Explore sale of pipeline stake worth over $1 billion. I’ll tell you what M&A I was talking to some experts and M&A activity is looking to, continue may not be in the big, exploration and production. You know, they definitely said in the midstream. Here’s an example. [00:02:03][108.0]

Stuart Turley: [00:02:04] So, let’s get started on the stories and we’ll kick over here. Colorado lawmakers adopt cuts, hard choices as state face 170 million budget. Deficit. Here’s where it is really coming into play. Colorado is looking to ban all commitment in all oil and gas drilling in Colorado. Here’s where the problem is. They have a revenue problem coming in, and they make a lot of money off of oil and gas generated in the state. The there is a 170 million budget hole. Even with the whole the JBC win, with the most optimistic forecast from the governor’s economists that put the anticipated, shortfall, unless budget writers decided to tap into the state reserve, which they didn’t want to get around that 170. I never had to find those kind of funds before, said Representative Rick Taggert, a Republican from Grand Junction. Love me some Grand Junction. Beautiful place over there. Here’s where, another one is. According to the largely would apply to the agencies that had programs funded with the Arpa dollars, according to Senator Barbara Kirk Meyer. She’s a Republican in Weld County. Weld County has got some phenomenal wells. They do a great job, drilling there. And the amount of revenue coming out of Weld County is phenomenal. We’re not changing the intent of the bills or the programing. If a bill is slated to expire this year, it will. Last week, JBS said, decide to use 197 million from those RPA dollars to balance the 20 2425, budget. What they’re not going to see by this is they’re having a budget problem. Investors are not wanting to drill in Colorado. The consumers are going to pay for it. Let’s I’m going to address this here in a second. But you’ve got to have long term commitments from your politicians in order to get lower cost energy. And the only thing that people that are going to get hurt are the lower income people. [00:04:33][149.5]

Stuart Turley: [00:04:34] Next story up today is small nuclear reactors may be coming to Texas, boosted by interest from Governor Abbott. Gotta love me some Governor Abbott on this one. Governor Abbott took the stage at the Texas, University of Texas at Austin, to this last August to building up the energy at the state. Nuclear accounted for 9% of the electricity on the Texas grid. Producer. Andy, if you could bring this, the chart in, this is credit. Yoshiro. Schumacher. And it shows that, natural gas was 45. Of the grid. Wind was, 24. I did not know it was high that I knew was high. Kohl’s 13 Nuclear’s 9.2%, solar was 7.3 and other was point four. But I’ll tell you what. Increasing natural or excuse me, nuclear is absolutely critical. I love the fact that we are looking at getting more, nuclear in here. A number of companies are now hopping on to build reactors at a fraction of this size, producing 300MW of electricity or less compared with the existing reactors that, Texas generally produce around 1200MW. I’ll tell you what. You know, we’ve been using, the small reactors for years. And, they’re on nuclear ship so that let’s let’s use them. There’s another, diagram in there, miss, producer Andy, if we could pull that in. If we take a look at the 51 acres for the Texas Capitol complex, you can take a look at, typical nuclear plant on the. This diagram is 500 acres. A large scale plant has two actors, two reactors and generates about 2500MW. An X generator reactor plant is 26, acres. So you can see that this is a huge savings. And a for small reactor units would, generate 320MW, which would be for 64,000 Texas homes. But it would only require, roughly a quarter mile safety buffer around the reactor. I’ll tell you what. This sure beats looking at, the amount of wind and solar land that has been destroyed, just like we saw with almost 3000 acres of, solar panels that destroyed in that farmland. You almost cannot recall. Made that land. [00:07:37][183.3]

Stuart Turley: [00:07:38] Let’s go ahead and go over here to Russia. Russia’s shadow fleet is putting Danish waters in danger. Here’s where it is. Really pretty interesting. The geography of the Danish Strait. The map. And I’m not sure why it’s not in here, but, since the start of the full, scale invasion of Ukraine, they have been avoiding the sanctions. Sanctions don’t work as intended, as Iryna Slav has always one. One to say, one says, but Denmark and in this area, we’re talking about the ships, the Russian, dirt fleet, tankers that are not insured under normal laws and are sanctioned are self-insured. There was just another story that a, CEO or an owner of an oil, Russian oil company sold his, shares in a oil company so that somebody else could then run, that you can’t sanction. And, and really stop the flow of Russian oil that way. Since the beginning of the year, at least 20 tankers are suspected to have been shadow vessels transporting Russian oil, have refused to take Danish pilots on board. And we know the importance after this week of having pilots, on board your ships. According to internal reports leaked to the Financial Times and the Danish research group at Dan Watch. In most cases, via the Gulf of Finland passing through the exclusive economic zones of Finland, Estonia, Latvia, Lithuania, Sweden and Germany and into Danish waters. And the great Bill, this is really a problem. And here’s why the Dark Fleet, Dark Fleet gets around sanctions. But the big problem is, if there’s an accident, there’s self-insured. And that means that you’re going to have to go after the Russian government, but this is going to be owned by some oligarch or someone that has not got response from, military on this. And there was a paragraph down here at the bottom where they were saying, they just don’t care. So sanctions drive people to do black market thing. [00:10:12][153.4]

Stuart Turley: [00:10:12] Let’s go to Oman. Oman sees increasing ship to ship transfers of Russian oil bound for India. I’ll tell you what. I applaud the Indians for buying the lowest cost oil that they can get. They need all the energy they can. The Caroline, Ben Benz, GIZ Benz. Gizzy I I’m assuming that that’s correct. Received about 1 million barrels of Urals, which is Russian crude from the new discovery. Is isn’t currently signaling a destination. The Kepler data. So the Suez Max new discovery carrying the Russian Urals heads to sonar Omaha after idling off of the west coast of India. What happens is you see these transfers happen in Oman and that, and then they transfer them off to India to disguise that they turn their transponders off and they’re the they’re off and running. Here is, a quote. So here is arguably the biggest SSD places of all the Middle East and Asia. And there’s no crude imported there. Lead crude analyst at an intelligence firm, Kepler. I wouldn’t be surprised if India’s solution is to have the Russians deliver the barrels to Soha or the UAE territorial waters, and then trans strip into tankers that are already okay for them to compliance wise. It is amazing what people and what companies are going to do to get around the sanctions. Let’s have if you have a total, political different, agenda and you work with people, you’re not going to end up with these potential ecological disasters that will be negatively impacting humanity. [00:12:10][117.8]

Stuart Turley: [00:12:11] Here’s where this story thread is going to keep on going here to the UK to miss out on 487 billion generated from offshore oil and gas market without a stable energy policy. This is following along. And the story with Colorado is that they are in the $170 million budget deficit, but they’re trying to get rid of oil and gas, which is providing a lot of revenue to the state. People don’t, and companies and investors don’t want to invest into oil and gas, which we if you haven’t, if you’ve listened to the show, you know that there are decline curves. You drill a well and then the oil, and gas have a declining relationship, ratio coming out of that. Well, you have to keep drilling. So here’s in this this is from the world, oil website. Without stable energy policy in a global competitive tax regime, the UK will miss out on the lion’s share of the benefit of a domestic oil offshore energy market that could grow to 450 487 billion U.S by 2040. You sit back and take a look. Energy policies need to be balanced. You need all kinds of for all energy. The, oh UK CEO David White House said the UK has 450 billion pounds of domestic energy opportunity that could transform the economy and support jobs. The warning lights are flashing. I think that that’s pretty important. Warning lights are flashing. We’re in a global race for investment, and UK energy companies need supportive long term policies, a stable tax regime and responsible radical rhetoric. Rhetoric from all sides. Our journey to net zero and beyond depends on responsibility. Making of most of our oil and gas production, which is at record lows. We’re facing a situation where we must import energy that could have been produced here, where we must rely on our supply chain companies that could have been based here. The UK is world class oil and gas sector has reduced emissions by 24% since 2018, and we must build our low carbon future on this achievement. Well said. I’m telling you what. We have to have leaders and people understand that we. Oil and gas. It is not the bad guy. It is how you use oil and gas. It is nuclear. Let’s use nuclear. Let’s use wind, let’s use solar. But let’s do it responsibly. But let’s also get to net zero down the road when we can. Right now the U.S. is going to have supply chain issues like you wouldn’t believe. The Brooklyn incident is really going to start waking up to the folks on the northeast. They’re going to have higher gas prices. It’s going to be happening immediately. So this is we’re just in the beginning phases of really understanding how much important that bridge was. [00:15:54][223.7]

Stuart Turley: [00:15:55] So with that, I’d like to just give a shout out to all of the people that have been giving us fantastic feedback. Michael and I are having so much fun. I want to give a shout out to the folks on the Energy Realities team. Irina Slav, Tammy Nemeth, David Blackman and I are absolutely having so much fun if you are. And also, Ray Trevino, please, if you are a energy, expert, if you’re a political individual and you want your side to get millions of impressions, you want to get rich, contact me. Let’s get you on the podcast. Let’s have a discussion. I want to talk to everybody about energy and humanity. Hey, have a great day out there and we’ll talk to you guys soon. [00:15:55][0.0][935.6]

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