Shell CEO Talks Reasonable Politics?!

 

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

Michael Tanner: [00:00:14] What’s going on, everybody? Welcome into the Thursday, June 6th, 2024 edition of the Daily Energy News Beat stand up. Here are today’s top headlines. First up, Senator Ted Cruz introduces bill to repeal Biden’s natural gas tax. Was Stu behind this all together? We will find out. Next up China and Iran secure key strategic Iraqi gas field. Super intense geo political news there. Next up TotalEnergies snaps up UK gas power station. That’s right, the million dollar deal. Next up shell CEO calls for political stability around the energy sector ahead of U.S. presidential election cycle. And then finally, $517 billion in unrealized losses hit U.S. banking system, according to the FDIC. They say 63 lenders are on the brink of insolvency. Unbelievable. [00:01:11][57.0]

Stuart Turley: [00:01:13] Just when you thought it was safe. [00:01:14][1.0]

Michael Tanner: [00:01:15] No kidding, no kidding. And then stu Then toss it over to me. I will quickly cover what happened with oil and gas prices today, and we’ll dive into the EIA crude oil storage. A little bit less of a build than we were expecting 1.2 million versus other four we had for the AP. But we will dive into all that in the bag of chips. Guys. As always, I am Michael Tanner, joined by Stuart Turley. Where do you want to begin? [00:01:36][20.9]

Speaker 2: [00:01:37] Let’s start with our buddy, Senator Ted Cruz. I love me some Ted. [00:01:40][3.2]

Video Clip: [00:01:41] And our Unleash Texas Energy events are just one of the ways that we are working to ensure that prosperity and freedom grow for every Texan across the state. Today we met with Senator Ted Cruz, and we brought in energy industry leaders, users and producers so that we could talk about the issues that are affecting energy policy. And, you know, I’m looking at AFP’s, phrase here. When Texas is energy dominant, America’s energy abundant. That is exactly right. America, Texas in America are and should be energy dominant. You’re here. Americans for Prosperity in Texas. We believe that Texas isn’t just the Lone Star State, it’s the innovation state. And we need to be broadcasting loudly that Texas is the innovation state, that we have an energy entrepreneurs that are willing to wake up every single day and say that we have to unleash Texas energy, because when Texas is energy dominant, America is energy abundance. That’s the policy that we’re focused on, not just in Texas, but broadly speaking, we’re not just good at drilling holes in the ground. Although, to be clear, Texans are very good at drilling holes in the ground. But what Texans are even better at is being entrepreneurs and energy entrepreneurs. And that’s where the future is going to come from. And if you look across the country. Where you see energy abundance. You also just see abundance, you see prosperity, you see people’s median income going up. You see people having more money to feed their families to, to send their kids to school, to give their daughter braces, to pay for her to go to college. Prosperity and energy are intertwined. And in Texas, in America, we want both. We thank you, Senator Cruz, for all the work that you put in fighting for Texans, fighting for our economy, fighting for our energy. We know that they go hand in hand. We know that when Texas is energy dominant, America is energy abundant, and our allies are energy secure. [00:03:43][122.2]

Stuart Turley: [00:03:44] Introduces bill to repeal Biden’s natural gas tax. I’ll tell you, this is absolutely nuts. Here’s a quote. They have driven up inflation and jeopardized American jobs and energy security, all of which would be made significantly worse by their methane emissions. Speaking in the Inflation Reduction Act, Cruz added in the quote, this feed particularly will harm Texas, undermining producers in the Permian Basin and across the state. The particulars, bill, it hits you when you least expect it. Let’s see, there are any statement. The EPA administrator, Michael Reagan, noted in the statement, as we implement this historic climate programs under President Biden’s Inflation Reduction Act, EPA is applying the latest tools, cutting edge technology and expertise to track and measure methane emissions from the oil and gas industry. The problem is they have people that absolutely do not understand oil energy making these policies. [00:04:52][67.9]

Michael Tanner: [00:04:53] No. It’s it’s pretty incredible that you’ve got people who have zero clue what’s going on, are now making decisions about your energy future. Obviously, this bill still needs to pass the Senate, then the House and then go back to Biden. Who knows if he’ll end up wanting to sign it, but it’ll be interesting to see how it all goes out. Good group of co-sponsors. Yes. The real question was, was this something you brought up to him in your little meeting with him? [00:05:20][26.8]

Stuart Turley: [00:05:20] He brought it up. And in talking about it. So, when we were there and, that was quite a we’ve got several other, podcast and meetings coming up with the whole team, and I’m reaching out and working with his staff on that. So, Roger Marshall, Mike Lee, Pete Rickett, Ricketts, Cindy Hyde-Smith, John Hoeven, Katie Britt, Mike Bon and Tommy Tuberville, JD Vance, Tom cotton and John Barrasso, were the co-sponsors. [00:05:53][32.4]

Michael Tanner: [00:05:54] Love it, love it, love it. [00:05:55][1.0]

Stuart Turley: [00:05:55] All right. Anyway, my hat’s off to him. Go, Ted. Go! Excuse me. Senator. Ted, let’s. Let’s go to China. Iran. Secure key strategic Iraqi gas field. Michael, this one has gas. Three bullet points on this is really pretty. Pretty frightening. The man Syria holds 4.5 trillion standard cubic feet of gas and expected to produce around 300 million SDF, gas per day at its peak. For China, the location of the Manchuria field fits perfectly into the vast network of oil and gas sites in Iraq. And this is going into Asia first, because this goes into our conversation yesterday with Turkmenistan and then feeding in, this feeds in through the Caspian Sea. Do the EU, Club med, Club Med, this gets really bonkers that China is now usurping and going around Russia for their natural gas and geopolitical. [00:07:05][69.3]

Michael Tanner: [00:07:05] So why would China is realizing is that if they’re at least this is my opinion. I think what they’re watching happen to Russia in terms of how the world reacted to the invasion of Ukraine, is how they’re planning on the reaction being when they eventually invade Taiwan. One they’re seeing it’s possible they’re seeing that Russia’s now, actually, nothing crazy has really happened to them. The key is energy, though, is the key is securing multiple ports of and multiple import and export sources for energy, which is the key and underpins most global trade. So I think that this has everything to do, in my opinion, with Taiwan. [00:07:42][36.6]

Stuart Turley: [00:07:43] Oh, absolutely it does. And but you notice that Taiwan is not mentioned in this article, but it’s a second order magnitude. [00:07:49][6.6]

Michael Tanner: [00:07:50] And I always like to think second order effects. All right what’s next. [00:07:53][2.4]

Stuart Turley: [00:07:53] Let’s go to Total Energy. Snaps up a UK gas power of four. 150 pound deal, million pound deal. This, to me, is just another example of folks going out in total, total energy goes out and is buying all the natural gas plant plants in Texas and they’re buying them all over the place. The West Burton Commission in 2013 has three combined gas turbines with a capacity of 1.3GW, according to the electricity grid. Gigawatts, a 1.8 million homes. Wow. And a 49 megawatt battery storage was in 2018 was added. So they’re getting that as well. That’s not bad. You know, I storage is important is because when the grid pays for it and it’s just sitting there. Yeah. That’s why it’s cash cow batteries. [00:08:52][58.3]

Michael Tanner: [00:08:53] Absolutely. I am all for the backwards nature of how that works in storage as particular relative to being able to. You want to talk about moving off grid. You have to have storage. [00:09:03][10.5]

Stuart Turley: [00:09:04] Yeah. I’m paying through the nose for it, getting it set up. [00:09:07][3.1]

Michael Tanner: [00:09:08] But it’ll be helpful when it’s set up. Low IRR, high ROI. [00:09:12][4.1]

Stuart Turley: [00:09:14] There you go. [00:09:14][0.3]

Michael Tanner: [00:09:15] There’s a white paper in there somewhere. There’s a white paper in there. What’s next? [00:09:18][3.6]

Stuart Turley: [00:09:19] We’re going to be the only ones, because I get my. Our Lincoln got my batteries. When the grid goes down. We’ll be on there. [00:09:26][6.9]

Michael Tanner: [00:09:26] I know exactly where I’m going. [00:09:27][1.2]

Stuart Turley: [00:09:29] I shall see how it goes. The political stability around the energy sector ahead of the presidential election. Shell’s, executive officer went to Washington to plead for, sanity. How do you get that? I read this article, Michael and I. Well, Swan’s remarks during his two day visit to the U.S. Capitol come as the U.S. oil major reorients strategy for navigating the energy transition amid investor pressure to focus on its prime petroleum business. You know, they went to the green left. Well, the green left is now facing, retro in the UK. And, it has been just this article, quote, we cannot be myopic and look at what the political narrative is. If we’re going to invest in green hydrogen here or blue hydrogen, how competitive are we against the alternative? If some of the incentives are taken away, are we able to can survive? He’s asking the right questions, but I got tickled at the whole point. How do you go to Washington and ask for sanity? [00:10:39][69.5]

Michael Tanner: [00:10:40] Yeah. That your answer is we’re trying. We’re doing the best we can. But sometimes you can’t teach an old dog new tricks. [00:10:47][6.8]

Stuart Turley: [00:10:47] No, but, hey, let’s go to this next one. This next one really frightens me. Around the 14th of this month is a big financial deadline. Holding up on some things. $517,000,000,000 billion. [00:10:59][11.9]

Michael Tanner: [00:11:02] Billion. That’s a b that’s a billion. [00:11:04][1.8]

Stuart Turley: [00:11:04] I’m looking at that going ba ba ba ba billion in unrealized losses. U.S. banking system 63 lenders on the brink of insolvency. Michael, there are conspiracy theories out there that this may be used to usher in digital currency. This is I don’t know, don’t have any facts on it. That’s conspiracy theory. But if it is, that’s 517 billion in there. Wherever there’s 517 billion lurking in insolvency, there’s a lot more that could be out there going retro. [00:11:44][39.3]

Michael Tanner: [00:11:45] Okay. No, there’s definitely a lot out there. We will be watching closely to see what that happens. I mean, that’s a you know, this is a billion between friends. [00:11:52][7.4]

Stuart Turley: [00:11:54] Bankruptcy. And I’m sorry, it says the health of the U.S. bank system is no inanimate risk. Then why are they putting all these precautions in? [00:12:07][12.9]

Michael Tanner: [00:12:08] It’s called hedging, baby. It’s called hedging. [00:12:09][1.5]

Stuart Turley: [00:12:10] Now. It’s called control, baby. Well, hey. Well we. [00:12:13][3.0]

Michael Tanner: [00:12:13] May. Who knows? [00:12:13][0.6]

Stuart Turley: [00:12:14] Who knows? Time will tell, though. [00:12:16][1.5]

Michael Tanner: [00:12:16] Buckle up. Yeah, well, we’ll cover what happened. And the the the EIA versus API crude oil inventory differences here shortly before we do that guys. As always thank you to energy newsbeat.com. The best place for all your energy and oil and gas news. For providing all of the news and analysis that you just heard. Stu. 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 and the oil and gas business. Hit the link and discuss, the description below for links to all the articles, timestamps to all the articles. They may be a little bit off now that we’re doing, a little bit of, pre-roll ad, in there. So, may or may not be 30s off, but, you guys will survive. Trust me. You’ll take a deep breath, you’ll figure it out. You got to. [00:13:05][48.6]

Stuart Turley: [00:13:05] Pay the bills, baby. [00:13:05][0.5]

Michael Tanner: [00:13:06] Yeah, but no, we appreciate everybody again. www.energynewsbeat.com. The overall market today guys actually do very well S&P 500 up 1.8 percentage points Nasdaq up a full two percentage points ten year two and ten year yields fall about a percentage point for the two year and a little above 1.1 percentage points for the ten year yield dollar index up about a 10th of a percentage point. Bitcoin up one percentage point 71,226. As we record this, on the afternoon of the fifth. Crude oil up 1.3 percentage points, 7421 Brant oil only up about 3/10 of a percentage point 7877. Natural gas up seven percentage points, $2.76. Gas is back, folks. Absolutely love to see it on oil price. Mainly what we saw was the fact really what we saw was a smaller than expected build up in crude oil inventories. Yesterday we saw about a 4 million barrel guesstimate from the API. EIA drops today. We can go ahead and put that chart up. miss producer 1.2 million barrel build. So a little bit of a delta there. relative to what API was saying, Reuters estimated about a 2.3 million barrel draw. Sony I don’t know who these analysts or Reuters. Just there are people who got fired from Goldman Sachs. For being not bullish enough. So they come over to Reuters and they write. It’s unbelievable. Unbelievable. You know the other thing we saw was refinery crude runs were up about 61,000 barrels a day. refinery utilization up to 95.4 percentage points. That’s up 1.1 percentage points. Week over week, you know, Gulf. Gulf. You know something interesting? Our Gulf Coast refinery utilization was hit its highest since June of 23. We’ve a little quote here. Bob Yeager, director of energy futures at Mizuho Bank. We haven’t run 17 million barrels a day through refineries since 2019. They’re just going to swamp out the gasoline market if they keep doing this, which is great for the consumer, because we’re going to see lower gas prices at home. You know, we we I can’t complain one way or the other. Gasoline stocks up 2.1 million barrels. Gasoline supplied. Which is kind of a proxy for demand fell by about 203,000 barrels. So we’re seeing that, you know, demand on the, you know, on the demand side, it’s not as good. I mean, the this is the Memorial Day numbers quote from Yeager. Again, you have demand numbers below 9 million barrels per day already, in the week of Memorial Day weekend. That’s pretty sad, considering as a holiday weekend, back in the day, we would roll 9 million, in March. So the demand side of that, hopefully we see those gas prices fall. But then as gas prices fall, you’ll see demand pick up. So it’s obviously a seesaw seesaw there. We did see diesel futures up about a 10th, about an eighth of a percentage point, versus their net crude oil imports rose by about 13,000 barrels. Exports were 276,000 barrels up per day, were up 276,000 barrels per day, to 4.5 million barrels per day. Relative. So things are rocking there. So it’s pretty late day on the news. You know, all our M&A stuff is really chill down. It’s a lot of the private stuff. Just sat through a really nice M&A presentation, via one of our customers, which was really nice to be able to, to kind of hear, some third party opinions about where some of these valuations are going. I’m not sure if I believe any of the numbers, but as always, I am extremely skeptical. What else are you worried about, stew, before we let everybody go. [00:16:32][205.9]

Stuart Turley: [00:16:33] Just keep checking your bank account. Carry cash, lots of gold. Go get some silver. Prepare for the full moon ahead. Yeah, yeah. Full moons. Come on, baby. [00:16:43][10.0]

Michael Tanner: [00:16:44] Yeah. Whatever. You. [00:16:44][0.8]

Stuart Turley: [00:16:45] Oh, sorry. I’m just saying, man, there’s weird stuff out there, and I’m not jumping into the conspiracy theories, but when you see a banking thing, go to just skip the the conspiracy theory and go to full moon. That’s all I. [00:17:01][16.4]

Michael Tanner: [00:17:01] Got. You heard it here, folks. Guys, it’s silver from stew. With that guys, we’re going to let you get out of here. Finish up and or start your day. We appreciate everybody checking us out. World greatest podcast energy news beat podcast www.energynews.com Stuart I’m Michael Tanner. We’ll see you tomorrow folks. [00:17:01][0.0][973.6]

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