Daily Energy Standup Episode #347 – Dimon Slams Oil Halt, $100 Oil Odds Climb, Exxon’s UK Plans and Merger Delayed

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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’s going on, everybody? Welcome in to the Tuesday, April 9th, 2024 edition of the Daily Energy News Beat stand up. Here are today’s top headlines. First up, Jamie Dimon calls to push stop to all oil and gas projects. Quote enormously naive in his order. It is yearly investor letter. Great story. Next up environmentalists suing to shut down power plant providing 9% of California’s power. We love a good at California story. Next up, the odds of $100 oil are rising as supply shocks convulsed the market. Next up, Exxon’s expanded UK refinery to supply first diesel in early 2025. Global elites have no master plan to replace crude oil. Rather, other than lining their wallets, this is an interesting twist on a great one. I got to love the cover art on this one stool, then toss it over to me. I will quickly cover what’s going on in the oil and gas markets. Oil price is fairly stagnant today at 86 bucks. Can’t complain there. And then we did get an interesting note out of, the FTC Chesapeake in southwestern merger delayed after, FTC seeks more information. Ooh, we will talk about all that and a bag of chips, guys. As always, I am Michael Tanner, joined by Stuart Turley. Where do you want to kick us off? [00:01:43][87.9]

Stuart Turley: [00:01:43] Hey, let’s start off with our buddy there, Jamie Diamond. I’ll tell you, he’s a hoot. Absolutely a hoot. Diamond calls to stop, all oil and gas. Enormously. Nay. Michael, yesterday on Twitter, I have to say one of the funniest posts I’ve ever seen was this lady sitting on a southwest flight with Just Stop Oil, and somebody was asking her when you land. Okay. All right. So let’s go out with this story. Our allied nations need secure and affordable energy resources, including critical nations like Japan, Korea. Most of European allies would like to depend on the United States for their energy. We need to be able to deliver our energy, and we’re not doing it. But this whole move. When asked Monday about, Diamond’s comments, white House, Jean Pierre, whatever her name is, Pierre, said is U.S. is producing record amounts of oil and gas where the nation invest in transitioning to sources of cleaner energy. You got all of it? [00:02:56][72.3]

Michael Tanner: [00:02:56] Yeah. I mean, I think what Jamie Diamond is saying is, is obvious. If you look at the facts, I think it’s unique in the fact that we haven’t seen this, you know, most global elites, as we’ll cover in the last segment, they want to switch from oil and gas off of, they want to switch oil, gas to renewables. So very interesting. I love to see Jamie and, quote our allies, nations that need securing affordable energy resources, including critical nations like Japan, Korea, most of our European allies would like to be able to to hand on the United States for energy, he said in his letter. I echo those sentiments. [00:03:33][36.3]

Stuart Turley: [00:03:33] And I’ve been talking with George McMillan about this and that we I would not want to do business with the current administration if I was in another country. We are going to lose Japan right now. They’re already aligning and we can write this down. Now they are aligning with are you ready, China and Russia? Japan. We’re losing Japan. [00:03:57][23.9]

Michael Tanner: [00:03:58] Which is not good. Which is not. [00:04:00][1.4]

Stuart Turley: [00:04:00] Good. No, this is terrible. Let’s go to the next one here. Environmentalists suing to shut down the power plant, providing 9% account of what is power? Diablo Canyon. I am sorry you can’t buy this kind of a Monday. Yeah. Eclipse entertainment. Welcome to California. Holy smokes. The D.o.e. awarded 1 billion to keep the plant open. I mean, Governor Newsom, grease monkey hair actually says, wait a minute. We’re going to keep this bad dog open. You try to run the country with 9% less electricity, it’s going to be bad. Listen to this quote. As we experienced during the record heat wave last September, climate change driven extreme events are causing unprecedented stress on our power grid. The Diablo Canyon Power Plant is important to support. We need liability. Holy smokes that Governor Newsom said that I don’t like. It’s right, he said. He’s got it, but he’s still got all these people want a climate change him out of it. [00:05:13][73.5]

Michael Tanner: [00:05:14] Line. Squirrel finds cheese once in a while. [00:05:16][1.5]

Stuart Turley: [00:05:17] IBM grease monkey pulled the hair out of his, eyes, I guess I don’t know. [00:05:22][5.4]

Michael Tanner: [00:05:23] Gobble Canyon has been thought from the beginning, but this is the latest environmental group. Who knows if it will? Who knows what will happen? [00:05:30][7.4]

Stuart Turley: [00:05:30] Oh, it’s. [00:05:31][0.2]

Michael Tanner: [00:05:31] Likely we did see in January, the Biden administration did chip in $1 billion to help extend the service life. So there’s that there. It’s a catch 22 with these environmentalist folks. [00:05:42][10.5]

Stuart Turley: [00:05:42] Oh, yeah. And, you know, my personal opinion is I think that the those environmental group are funded by very bad people to cause disruption. They are. Let’s go to the next story. The odds of $100 oil are rising, as supply shocks convulse through the market. This is pretty interesting. A recent move by Mexico to slash its crude exports is compounding a global squeeze. It’s also because Mexico doesn’t want to sell oil to the United States. You know why they don’t like Biden’s? I’m serious. I was, even his own mother doesn’t like him. Okay. [00:06:32][49.4]

Michael Tanner: [00:06:32] I’m sure she does. But no, I mean, there’s a lot of geopolitical pressure around what’s going on with oil prices. And it could be right. You could be a mega. This is the the Mexico rush in short squeeze to drive prices up to $100 and get Biden out of there. Very interesting. [00:06:51][18.0]

Stuart Turley: [00:06:51] We have got to do this, Michael. You and I and our team and David Blackman and everybody else, we’ve got to get there and we’ve got to reenact that one horrible spaghetti western when they’re all looking at each other and we’re in Mexico, we’re Russia, we’re looking like this, and we’re hearing that music playing around in the background. Who’s gonna, you know, this is a Mexican Russian standoff. [00:07:14][23.0]

Michael Tanner: [00:07:15] No kidding. No kidding. But no. Hey, we just saw it on the ticker behind me. Guys, oil’s up to 86. [00:07:20][5.0]

Stuart Turley: [00:07:21] Bucks and that. [00:07:22][0.7]

Michael Tanner: [00:07:22] That’s very close to $100 oil. [00:07:25][2.7]

Stuart Turley: [00:07:25] Mexico, U.S.. Could Qatar and Iraq cut their combined oil flows by more than a million barrels per day in their put. [00:07:35][9.3]

Michael Tanner: [00:07:35] The squeeze on by. [00:07:36][0.7]

Stuart Turley: [00:07:36] They are. And you know what, David Blackman? We love us some David Blackman just put out on his, Daily Caller or a Telegraph article. He put out there and said, guess what? He’s marking it on the calendar. Biden is probably going to release more of the SPR, because it’s the only way he’s going to try to get some prices down. And that one is a David Blackman. We put it on the calendar and I guarantee you he’s going to try to rob it again. [00:08:08][31.4]

Michael Tanner: [00:08:09] Crazy. What’s next? [00:08:10][1.1]

Stuart Turley: [00:08:11] Let’s go to a better story here. Exxon’s expanded UK refinery to supply first diesel in early 2025. Michael, this one is actually a smart move by ExxonMobil. ExxonMobil is expanding its UK site and will start delivering diesel from the expanded Fawley Refinery in early 2025. The diesel producing unit could be reconfigured later to make jet fuel or sustainable aviation fuel from vegetable oils. Okay, I’m going to go I’m going to borrow some buddies. Never mind. There’s a lot of molecular magic we can do with this kit. I think that’s great, but diesel is going to be around for a while, and the fact that this is a newer investment into downstream that can be do used in multiple different ways, is the way it should be done. [00:09:09][57.9]

Michael Tanner: [00:09:10] Yeah. I mean, this is what you should be doing in terms of an R&D fund. You know, as an oil it is an integrated oil and gas company like Exxon. These are the type of investments you should be making, in my opinion, versus, you know, doing what TotalEnergies does, doing what Equinor do is going and buying and BP going and buy all these wind farms. This is a much better type of investment. Is integrated oil and gas coming. So I applaud this. And the UK needs the diesel. [00:09:37][26.8]

Stuart Turley: [00:09:37] So yeah and local low sulfur I’m all in. I am all in for the low sulfur diesel. And 40% could reduce imports into Britain. That is huge. that is absolutely well done. And hats off to ExxonMobil. Yeah. [00:09:54][17.0]

Michael Tanner: [00:09:55] Let’s go to this last one. [00:09:56][0.9]

Stuart Turley: [00:09:56] Oh the is absolutely horrific. I don’t know who did this who did this. [00:09:59][3.3]

Michael Tanner: [00:10:00] That this producer. Can you pull. [00:10:01][1.1]

Stuart Turley: [00:10:01] This one spokesman speaking of a eclipse today. Okay. Global elites have no master plan to replace crude oil other than lining their wallets. This is actually from Iran. Einstein, and I’m interviewing him next week on the 16th. And this is actually he’s a good friend of the show. The elephant in the room that no one wants to discuss is that crude oil is the foundation of our materialistic society. It is the basis of all products and all fuels demanded by the 8 billion on this planet too. Only 1 billion existed less than 200 years ago. Wow. [00:10:42][40.9]

Michael Tanner: [00:10:43] Yeah, it’s I mean it crude oil. [00:10:46][2.8]

Stuart Turley: [00:10:46] This is some people forget. Michael. Crude oil was almost never used to generate electricity. But when manufactured into petrochemicals, it is used for virtually everything else. Even Diablo Canyon, like we just talked about. Now, you can’t make, you know, half of the stuff. You can’t use the petrochemicals for your microphone and for your, you know, your iPhone or any of the things you need. Yeah, you can have power, but you gotta have oil to make your iPhone. [00:11:17][30.9]

Michael Tanner: [00:11:18] No, you absolutely need it. [00:11:20][1.6]

Stuart Turley: [00:11:20] So crude oil products are essential. And I am all in for doing this. Without crude oil, there be nothing that needs electricity. What? Line from run on everything that needs electricity to function like iPhones, computers, data centers, X-ray machines is made with petrochemicals. Gotta hand it to him. And then. Mr. producer, if you could bring this up. Life without oil is a graphic. That is amazing. Yeah. You can have nuclear, you can have wind farms, but you ain’t gonna have medicine, cosmetics and holy smokes, you know what? There’d be a lot less wrecks on the highway if we had no cosmetics. Women would not be putting makeup on in traffic. I think that that would be phenomenal. What do you think? [00:12:09][48.8]

Michael Tanner: [00:12:11] I’m more worried about the medicine, to be honest with you. I’m more worried about no medicine, but. [00:12:15][4.0]

Stuart Turley: [00:12:16] And absolutely. [00:12:16][0.3]

Michael Tanner: [00:12:17] Unbelievable. We love Ronald Stein. [00:12:19][1.7]

Stuart Turley: [00:12:20] We do. And, with that, we’re going to have another discussion with him next week on the 16th. So hats off to Ronald Dot. Do you? Nodded. [00:12:28][8.7]

Michael Tanner: [00:12:29] Yeah. We’ll we’ll jump to finance, but first we’ll pay the bills here, guys. As always, check us out. World’s greatest website energynewsbeat.com The best place for all your energy and oil and gas news. We appreciate everybody who’s reached out to us, that they love the website. We’re going to keep cranking here, guys. Stu in the team as always again, 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 oil and gas business. Dashboard.energynewsbeat.com for all your data energy news combo, check the description below. It’s going to have all the links and the timestamps to the articles, especially if you’re on Spotify. We’re working on it if you’re on a iTunes podcast listener, but if you’re on Spotify, chapters work great. We also, are rolling out a lot of cool stuff, guys. So as always www.energynewsbeat.com. [00:13:18][48.5]

Michael Tanner: [00:13:20] In terms of all overall finance stuff too. You know we saw S&P 500 basically flat only down about 5/10 of a percentage point to or excuse me 0.05 percentage points which is basically flat. Same there for the Nasdaq ten year yields. and two year yields are absolutely flat. Dollar index down about 0.15. Percentage point. Bitcoin up three percentage point 71 700. Right now crude oil down about a half a percentage point 8690 8643 with Brant Oil 9074 mainly off the back of, you know, renewed push for, a ceasefire between Hamas and Israel. We will see, Israel begin actually withdrawing and reducing its troop count in southern Gaza as fresh round of ceasefire talks did come up. So, you know, that did drop oil prices. I mean, it’s yeah, it’s kind of funny ceasefire talks, lower oil prices. It’s a it’s a crazy world we live in, guys. But I will take that. We’re still trading above $86. There are also some signs, of rising oil stocks. You gotta love this. Where’s that? You know, we also are again, are seeing, where is this? Where is this? Well, again, that’s why, you know, trust Reuters folks, because they’re just throwing stuff in it to titles. But I, I stocks are good. They’re going to continue to rise. We saw build in the petroleum reserve last week. It may or may not. Yeah. Yeah. Whether it continues or not, does it matter that we’re still teetering on this interesting bend. And I think I tend to lean more. We’re going to see $100 oil. Then we’re going to see $60 oil at this point, if only because I think the short squeeze is on from the stuff we covered about Mexico and what we’ve seen in Russia, what we’ve seen OPEC’s doing, they want to drive the price up to get Biden out of there. That’s my prediction. I’m on the hundred side versus I am on the negative, or the $60. [00:15:13][112.7]

Stuart Turley: [00:15:14] Say it again. They want the oil price higher to get Biden out of there. Yeah. [00:15:20][6.2]

Michael Tanner: [00:15:21] I think what they want to do is that they they’re they’re using it. They’re putting the short squeeze on Biden. They’re dry. They’re restricting all of this. Matt, why is Mexico coming out? Mexico doesn’t like dealing with Biden. No Trump or Putin like dealing with Biden. He’d rather deal with Trump. So if you can, you can increase oil prices, pull back on your production a little bit, drive the price over to 100 $100, still make money and get your the guy you prefer in there. [00:15:46][24.5]

Stuart Turley: [00:15:46] Wow. Wow. Oh the short. [00:15:49][3.5]

Michael Tanner: [00:15:50] Squeeze, baby. Short squeeze. [00:15:52][1.9]

Stuart Turley: [00:15:53] Wow. He doesn’t even know he’s getting squeezed, does he? [00:15:55][2.3]

Michael Tanner: [00:15:56] No. The only other thing I found saw today’s news. Super interesting. Chesapeake southwestern delay merger closing after ex FTC seeks more information. Interesting. So here we go, guys. Chesapeake Energy, and Southwest Energy, said today that they, they, they’re going to be pushing back their merger to the second half after receiving U.S. regulators second request for information, US lawmakers have sought increased security, by the FTC over these multibillion dollar deals. You got to give. As a reminder, guys, 50 Democrats in Congress urged the regulator to probe oil and gas company deals and expand current investigations in industry competition. Multiple requests on Exxon Pioneer have come up along with Chevron and has oxy crown. Brock also said that Chesapeake and Chevron came out today and said they’re going to review. This is super interesting. Do the FTC is going to scrutinize these more and more all of these aggressive closing, date that are thrown out. We’re dropping court and or plus the the deal spotlight today. One of the things, that me and John Ferrell talk about is the aggressive closing nature of court and or plus they claim they think it’s going to this was done after Chesapeake in southwest southwestern. And they thought it was going to close before obviously not going to add up. I think this adds a lot of fuel to fire. That’s just it’s going to be hard to get some of these deals closed. [00:17:18][82.9]

Stuart Turley: [00:17:19] Wow. [00:17:19][0.0]

Michael Tanner: [00:17:20] I did think it’s interesting. We haven’t heard anything yet. Shares of both companies were down 1.2 percentage points for Chesapeake and 1.7 for southwestern. That’s on gas prices up, 3.5% today to $1.81. Oh not good. When you get an increase in gas prices, you’re a gas heavy player and you go down because the FTC’s delaying your merger. Thanks, Biden. What else you got, stu? [00:17:45][24.7]

Stuart Turley: [00:17:46] No, I’m. I’m wondering, if we’re going to have another eclipse tomorrow. That one was so much fun today. Just the memes alone were, Larry is. [00:17:55][9.3]

Michael Tanner: [00:17:56] Yeah. No, the memes were good, and they crept up. Everybody enjoyed it yesterday. As always, guys, I think we’re going to go ahead and let you get out of here, though. Appreciate you checking us out. World’s greatest podcast energy news beat.com Stuart Turley and Michael Tanner we’ll see you tomorrow folks. [00:17:56][0.0][1024.6]

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