New Mexico Oil Production HUGE

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Renewables Accounted for 14.6% of Global Energy Consumption in 2023

Visualizing the Renewable Energy Landscape Across G20 Countries

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

Michael Tanner: [00:00:09] What’s going on, everybody? Welcome into the Wednesday, August 28th, 2024 edition of the Daily Energy News Beat stand up. Here are today’s top headlines. First up, renewables accounted for 14.6 of global energy consumption in 2023. Next up visualizing the renewable energy landscape across G20 countries. Flipping back over to fossil fuels Norway natural gas exports surge in 2024. Flying over to New Zealand, they reverse ban on offshore oil and gas exploration. Interesting. And finally will come back at home. U.S. oil dominance hinges on the quiet corner of New Mexico, specifically two specific counties in there. So we’ll do that. I will then quickly cover what happened in the oil and gas markets today, and we will talk a little bit about spot LNG shipping rates. They are on the downfall, as always, guys. I am Michael Tanner joined by Stuart Turley. Where do you want to begin? [00:01:07][57.8]

Stuart Turley: [00:01:08] Hey let’s start with our buddies there in the renewable accounted for 14.6 of global energy consumption in 2023. Michael, I’d be remiss if I didn’t say that renewables is a marketing term for renewable energy that is not renewable nor sustainable without subsidies. So let’s just get ready to rumble into this. The wind and solar consumption reached 14.6 in 2023. China led the world in renewable energy production and capacity add ons. China has led the world in coal, LNG. I mean, they did everything. So I think that that was pretty funny. But look at this chart, this producer, if you could bring this chart up, that chart is a hockey stick. I mean, that thing is like starting in 2009 to 2023, it is nuts. 346GW of new capacity, smashing the 2022 record of 67%. China contributed quarter on quarter growth. Europe made significant strides at 56GW of solar. Holy smokes Batman. Yeah. [00:02:20][72.2]

Michael Tanner: [00:02:21] I mean, I think people would say, oh 14.6. That’s not that much. It’s probably what it should be is the funny part. [00:02:28][6.8]

Stuart Turley: [00:02:28] Well, it’s the cost that we’re not talking about. When we sit back and take a look, we put out all at 14.6% of the energy mix. How much did that 14.6 cost? Oh, I’m not sorry I. [00:02:46][18.2]

Michael Tanner: [00:02:47] Say this with oil production. Not how much oil a well produces. It’s how much you paid to go get that. [00:02:52][5.6]

Stuart Turley: [00:02:53] Exactly. So when we sit back and take a look, this is going to lead into this next one. Let’s go to the visualizing renewable energy landscape around the G20 countries. This is not a bad little chart. And you take a look. Oh Brazil’s leading the way in 30% of their electricity. Yay! But guess what? The U.S. is right in there. Let’s take a look. France is at 14%, Japan’s at 12, the U.S. is at 16, and the majority of the G20 economies are at least five years past their peak power sector emissions. So when you take a look at this, okay, we can say that we’re increasing our renewables. But again it’s a marketing term. They’re not renewable nor are they sustainable without subsidies. [00:03:41][48.4]

Michael Tanner: [00:03:42] Well I mean we knew that we can go ahead and throw this chart up here, how the G20 generates its electricity. I mean, it’s as you can see, it’s mostly, you know, look at Brazil with all that hydro, Brazil, Germany, UK. You’d fit in well there. [00:03:57][14.8]

Stuart Turley: [00:03:57] Oh yeah. Let me some hydro. But but you notice I got a microgrid beside my hydro, I got solar, I got wind, I got it all. The story will get out there no matter what happens. [00:04:08][10.0]

Michael Tanner: [00:04:08] 60% from hydro. Good for Brazil. [00:04:11][2.8]

Stuart Turley: [00:04:11] Good for Brazil. And and Norway is got the same thing. They’ve got lots of hydro. But now they are not able to export their electricity because they’ve had a drought. [00:04:22][11.0]

Michael Tanner: [00:04:23] I also love that Canada only has 7% wind and solar, aren’t they? Oh, is it Trudeau trying to shove that down? [00:04:29][6.2]

Stuart Turley: [00:04:29] Everyone’s throwaway is not well. Alberta is absolutely miserable because of what they’re doing to them. So hey, let’s head over to Norway. Speaking of Norway, Norway’s natural gas exports surge in 2024. Michael, you and I have been podcasting for four years. Do you remember about three years ago we were talking about it was you and I were early to the story that Norway was going to shut down their their natural gas plants because of the renewable and the green space. Now all of a sudden they’re like, yay, we love our natural gas. It is. The gas exports are soaring so much they’re around. To challenge historical records, with pipeline deliveries to a Europe up 10% year on year. I’ll tell you what Europe would be dead meat without Norway’s natural gas system. That’s an 8800 kilometer pipeline that supplies to Belgium, Britain, France, Germany, Denmark and Norway, with 95% of its gas delivered via pipelines. I love me some pipelines, but I’ll tell you what. You’re going to start seeing some stories. Michael, on the EU, their energy department and their energy mix is a disaster. They are going to be having serious grid issues. [00:05:49][79.7]

Michael Tanner: [00:05:50] And all I want to know is when are the Ukrainian seals coming after this export pipeline their next? [00:05:55][5.7]

Stuart Turley: [00:05:56] Excuse me. Hello. [00:05:57][0.7]

Michael Tanner: [00:05:58] Not that I have any. It is interesting though, Norway, who’s been kind of, you know, been on the forefront of trying to. Hey, we’re going to shut down oil and gas. We’re going to move renewables now bending the knee to massive natural gas exports. Not like as we’ll cover. You know, gas prices are necessarily high. They are actually over Europe. So you have to remember regional dynamics there. But you know they’re they’re going all into it. And speaking of somebody going all in New Zealand, they’re mad. [00:06:22][24.2]

Stuart Turley: [00:06:22] Crazy New Zealand the next door in New Zealand to reverse ban on offshore oil and gas exploration. I found this absolutely nuts. New Zealand’s natural gas production dropped by 12.5 in 2023, and a further 27.8 for the first three months of this year, creating a nationwide shortage, according to government estimates. New Zealand, quote is currently an energy shortage. The lakes are low, the sun hasn’t been shining and the wind hasn’t been blowing, and we have an inadequate supply of natural gas to meet demand. Holy smokes Batman, talk about bad planning. Holy smokes, the weather man can’t coordinate with the natural gas. Man, what’s going on? [00:07:07][45.0]

Michael Tanner: [00:07:08] I mean, yeah, this is what happens when the government get involved, gets involved with the free market. You get decisions like this, you get the swaying of decisions when if they had just let continued exploration this whole time, they would have won, had a much more significant supply at home, wouldn’t have necessarily caused all this issue, you know, easing restrictions on electrical lines for companies owning generation. I mean, it’s who would want to live there. I mean, I get, I get it’s pretty, but why would you want to live there? [00:07:34][26.8]

Stuart Turley: [00:07:35] If you’ve ever seen The Hobbit and The Lord of the rings and holy smokes, I would love to go see Hobbit Hobbit ville and go do a tour. Get a helicopter where Aragorn was being, you know, fighting with Gandalf in the air. I want to go see all that. Do I want to live there? [00:07:51][15.9]

Michael Tanner: [00:07:51] Hell no, because you’d have to ride a yak to get there because there’s no gas. [00:07:55][3.7]

Stuart Turley: [00:07:55] But. All right, let’s go to the next one here. U.S. oil dominance hinges on a quiet corner in New Mexico. I did not even get this story until I started reading into it. And I’m like, oh, data shows that two New Mexico counties accounted for 17% of an offshore oil output in the contiguous U.S. last year. Before the next decade, they’re expected to pump more than in oil than the next five biggest countries combined. Let me say that again. The next five biggest countries combined those two little ones. Holy smokes. There’s some tax revenue coming out of that. [00:08:39][43.6]

Michael Tanner: [00:08:40] Yeah, absolutely. I mean, Lee and Eddy County, New Mexico are definitely becoming the two most significant counties in the United States. It’s also why I think you saw the and a lot of that’s federal land. So going back to an article we talked about a few months ago that raising federal rates, not necessarily above standards elsewhere, but just to right size of what elsewhere is actually critical, is can provide a lot of decent, decent revenue to the country or to that state specifically. This is pretty crazy that you’re talking about. They’re more significant than most countries when it comes to natural gas. I mean, the Delaware Basin is slowly outpacing the. [00:09:14][34.5]

Stuart Turley: [00:09:14] Michael. Yeah, you look at that map. And, Mister Producer, if you could bring that map up for just Leah and Eddy County, take a look at loving Res Midland. I mean, that is an area I’ve been out there in the field and, you know, attaching some rigs and things out there. It’s it’s pretty flat country. I mean. [00:09:34][19.3]

Michael Tanner: [00:09:34] Lee Eddy and Loving County are all just right there down in the, you know, lower southeast New Mexico in the panhandle of Texas right there. Pretty unbelievable. [00:09:42][8.1]

Stuart Turley: [00:09:43] Oh, that is some great, great land, right? I mean, oh my goodness. I’d be buying some rights there. [00:09:48][5.5]

Michael Tanner: [00:09:49] Well I don’t think you can unfortunately get get no mineral rights down there. They’re all bought purchased up unfortunately. [00:09:54][5.6]

Stuart Turley: [00:09:55] But that’s what I said. If I had a time machine. Oh. [00:09:58][2.4]

Michael Tanner: [00:09:58] Oh yeah. Well yeah, if I had a time machine, I could just go bought off Midland for five bucks. But not anymore. [00:10:03][4.8]

Stuart Turley: [00:10:03] No. Hey. Off after you now. And by the way, a shout out to our great oil and gas hands out there. They we still deliver the the cleanest oil and gas, low cost energy in the world. Great job guys. [00:10:16][13.0]

Michael Tanner: [00:10:17] No, absolutely. We really appreciate everybody. I mean, I don’t think the guys out in the field get enough credit. So we as always appreciate what you guys do. Let’s go ahead and jump over and talk finances real quick guys. Before we do that, as always, the news and quote unquote analysis that you just heard is brought to you by world’s greatest website, www.Energy News Beat.com The best place for all your energy and oil and gas news. Doing the team. 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, the oil and gas business. Hit the description below for all links at the timestamps. All the links to the articles links to all of our favorite stuff. And as mentioned in the intro, if you want to check out our latest oil and gas project, we are teaming up with Pecos Country Operating and CrudeTruth. Hit that description below or go to Invest in oil.energy.Newsbeat.com. That’s investinoil.energynewsbeat.com. [00:11:02][45.2]

Michael Tanner: [00:11:05] But let’s go ahead and move over the overall market. To me we’re actually recording earlier in the day on on on on Tuesday here stew. So markets still open but we’re up fairly flat on the day S&P 500 up about 2/10 of a percentage point Nasdaq up 3/10 of a percentage point. Two year yields down about a full percentage point ten year yields actually up about a 10th of a percentage point. Dollar index falls about three quarters or about a third of a percentage point. Bitcoin still above 60,000, about 62,000 even right now. But it’s down about 1.3 percentage points for the day. Crude oil not having a great day. Down 2.3 percentage points. Currently sitting at about 7562. Brant oil down a half, a percentage point falling below that $80 mark 77 or 7979. Natural gas down another two at 2.8 percentage points, $1.90. Yikes. There. I mean, biggest thing on prices right now is, is, is is a combination of what’s going on in the Middle East. Obviously we all saw that huge, you know, that huge run up of prices to 7778. Yeah. The last two day was mainly due to some Middle East conflicts. It looks like those retaliatory strikes have, you know obviously were priced in. It doesn’t look like or the hope is it’s not going to lead to a larger conflict. But again, you never know there. You know, I think people are also out there. You know, ironically, what’s going to happen with what the Federal Reserve is going to do from a monetary easing standpoint. We did obviously hear on Friday the fact that Jerome Powell is going to go ahead and most likely start cutting rates could be super interesting there. We will see at the end of the week U.S. inflation data. We also did see gold trade above $2,500, which is, you know, even on that expectation of a breakout which entering natural gas continues to get pounded. You know, I think the the dynamics of what you’re seeing here at home on natural gas prices are different than what you’re seeing, obviously, than what we covered in Europe. They can’t get enough natural gas. They’re weak here at home. We’ve got too much natural gas for the pipeline capacity. We’ve got Waha, which is the spot price down in the Permian has been consistently trading below $0. Never good talk about you know, if if there is something to do, you know, if environmentalists understood that if gas can’t get put in a pipeline, it gets flared, they probably be more into pipelines and maybe want to fund pipelines in order to save the environment. Because we can all admit flaring is not great. You know, no matter what side. And anytime you see a flare going off, it’s either a new drill, which is fine, but also think about there’s no export or take away capacity. And that’s just a poor planning part. [00:13:36][150.8]

Stuart Turley: [00:13:36] Oh, absolutely. And and the EIA, the politically motivated EIA has even said the only reason we really hit our net zero goals in the US is because we’ve replaced our coal plants with natural gas. Love our natural gas for electrical production. [00:13:55][18.1]

Michael Tanner: [00:13:55] Yeah. Let’s jump over here quickly. Spot LNG shipping rates and European prices continue to drop. So speaking of exactly what we’re talking about, that regional difference between what’s going on in the United States with natural gas and what’s going on abroad. This was super interesting. Both Pacific and Atlantic LNG shippers have experienced a massive decline. This is according to Spark’s commercial analyst, Cassim. Afghan Spark 30 Atlantic rates experienced a second week on week decrease, falling by $8,250 to a total of 61,500 per day, which was pretty crazy. I was up over 100,000 earlier last year, he said. It’s almost the it’s the largest week on week decrease in over a month, and marks almost a $15,000 decline in the Atlantic rates over the last two weeks. You know, early in September, October of 2023, rates will almost at 200,000 a day, a little like 180,000. So we’ve also seen 100% drop in those prices. You know, the the front month delivery is $11.77 for liquid LNG on an MMBtu basis. So if you can get your LNG to Europe, you’ll get paid a decent amount to it. It’s why the export capacity is so big. And why why do you think they want to try to build? LNG facilities here ain’t worth nothing here, but it’s definitely worth something. Over in Europe, it’s pretty unbelievable. Gas storage is sitting over in the EU is about 88.47% as of August 14th and is of and that, you know, corresponds with 91.56% for basically a year prior to that. Pretty unbelievable. In Asia, the LNG cargoes settling for October $13.75. That’s on an MMBtu basis. Pretty unbelievable. Front month jkm which is their spot natural gas if you’re on a 1446 do so pretty unbelievable. Last quote I’ll read quote Chinese buyers are now predominantly cautious and remain in wait and see mode regarding winter cargo procurement. Doesn’t matter. Those are still great prices. So it gives you, you know, if you’re a you’re a U.S. natural gas trader, I’m sorry things have been tough for you. Maybe try moving Amsterdam. [00:16:01][126.0]

Stuart Turley: [00:16:02] Yeah, or start selling LNG. [00:16:04][1.9]

Michael Tanner: [00:16:05] If you can get it over there, it’d be great. So I’d. Stu, what else should people be worried about? [00:16:09][4.7]

Stuart Turley: [00:16:10] I’ll tell you what. I just want to give a shout out to Mark Zuckerberg for coming clean and admitting that he was pressured by the Biden administration to shut down the Hunter laptop, as well as the this information on there and the influencing of the election. So hats off to him to admitting that election fraud was happening in 2020. [00:16:32][22.0]

Michael Tanner: [00:16:33] Yeah. You know, would not have bested Mark Zuckerberg. But you we’ve been slowly seeing him get red pilled over the past year or two years now. [00:16:40][7.4]

Stuart Turley: [00:16:40] So when he when a billionaire’s riding on a wave and attacks going to Trump’s cool, I’m a little weirded out. [00:16:47][6.9]

Michael Tanner: [00:16:48] Maybe we’ll get back on Facebook because of that. But all right guys, with that we’re going to let you get out of here, get back to work. Appreciate you guys checking us out here on the World’s Greatest Podcast for Stuart Turley I’m Michael Tanner. We’ll see you tomorrow folks. [00:16:48][0.0][975.2]

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