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Daily Standup Top Stories
Saudi Arabia poised to increase summer crude burn for power
There are several ways to look at Saudi Arabia’s use of crude oil to burn for electrical generation. First, it is fiscally responsible, but it may not be the best long-term solution for their local […]
QatarEnergy eyes major LNG trading expansion
ENB Pub Note: Below the line is the report from Bloomberg about QatarEnergy and money being left on the table. I added the Qatar LNG export capabilities on the top. Qatar’s LNG Export Capacity and […]
Petrobras pens EPCI deal with Subsea 7 worth nearly $1.5bn
ENB Pub Note: I have added an updated list of the Petrobras drilling and production expectations for 2025. Petrobras, Brazil’s state-run oil company, has outlined ambitious drilling and production expectations for 2025 as part of […]
Trump allows Equinor to resume work on wind project off New York
ENB Pub Note: Interesting that New York was able to restart the Empire Wind project. I added the energy mix to the top of the Empire wind announcement for clarification. New York has the 8th […]
Highlights of the Podcast
00:00 – Intro
01:44 – Saudi Arabia poised to increase summer crude burn for power
3:49 – QatarEnergy eyes major LNG trading expansion
05:50 – Petrobras pens EPCI deal with Subsea 7 worth nearly $1.5bn
08:38 – Trump allows Equinor to resume work on wind project off New York
15:27 – Markets Update
18:16 – Outro
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Video Transcription edited for grammar. We disavow any errors unless they make us look better or smarter.
Michael Tanner: [00:00:00] I mean, to be honest, you know, as much as, you know, I would have thought New York was going to be, I mean New York to have a really odd mix of electricity. I mean 46% natural gas, 22 hydro, 22 nuga. That’s not terrible. That’s a really good diversified mix. I mean I don’t know how much New York does right, but they’re at least doing this right. [00:00:18][18.3]
Stuart Turley: [00:00:18] They shut down their nuclear and then they just barely reopened it. Michael, they were shutting down 22% of their power. Their, their, their path to stupidity is in that governor’s office. [00:00:32][13.2]
Michael Tanner: [00:00:40] What’s going on everybody? Welcome into the Wednesday, May 21st, 2025 edition of the Daily Energy Newsbeat. Stand up, here are today’s top headlines. First up, Saudi Arabia poised to increase summer crude burn for power. Speaking with the Middle East theme, Qatar Energy Eyes major LNG trading expansion will fly down to Brazil. Petrobras PCI deal with subsea 7 worth nearly 1.5 billion and Finally we come back abroad Trump allows Equinor to resume work on the wind project off New York a lot of different angles to this stool then toss over me I will quickly cover what happened in the oil and gas markets and lightly touch on some of the stuff We will be talking about in our state of the market coming up on Thursday, so we will cover All that and a bag of chips, folks. As always, I am Michael Tanner, joined by Stuart Turley. Where do you want to begin? [00:01:44][64.0]
Stuart Turley: [00:01:44] Let’s start with our buddies over there with Saudi Arabia, Michael. I did not know this, but Ananias on X put it out at post and I had to do a little research on this one. Saudi Arabia’s electricity mix in 2023 was 52% natural gas, 40% oil. 8% steam and negative 1.4% renewables. I didn’t understand how that one came out. But anyway, when we take a look at the rest of it, they’re ready to burn crude oil. They’re the world’s largest crude to burn for electricity that’s out there. And I started taking a look at it. Why would they do that, Michael? Well, their cost to get it out of the ground is three and nine dollars a barrel that’s pretty cheap. Now it makes sense why they’re doing that that way. Even though it’s not very very good, oil is still 40 percent of their generation. That’s pretty amazing. [00:02:44][60.3]
Michael Tanner: [00:02:45] Yeah it is pretty crazy i think there’s i mean the economics when you look at what saudi ramco has to deal with is is pretty unbelievable you’re talking about you know less than five dollars uh... Per barrel operating cost you know they widely claim it somewhere in that three fifty range and their average breakeven price being forty to forty five that doesn’t it that’s a mix of onshore versus offshore which offshore is going to obviously have a little bit of a or break even. You know, again, because you’re dealing with a lot of extra cost to go to it. So it’s pretty unbelievable. I mean, you’ve got the oil fields like this mentioned, the oil fields like they’re, uh, uh Gwarfield. I mean you’re talking oil. You basically dig up, you basically dig a ditch and you find oil. It’s like in your coffee. [00:03:30][45.2]
Stuart Turley: [00:03:30] Cup and have it for coffee instead of, you know, having that. And that’s why when, uh, and I S I just want to give, uh Ananias a shout out. He’s a cool cat on, on X. And when you sit back and take a look at it, they look at energy in decades instead of the next election. So giving them a shout-out, let’s go to the next one. Qatar energy. You take a Look at cutter. This article was pretty interesting. Al Kabebe said on Tuesday during a session at the Qatar Economic Forum powered by Bloomberg that Qatar Energy started just trading a few years back and we’re going to expand. The ambition is by 2030 to reach somewhere in the range of 30 to 40 million tons of non-Qatari LNG traded by our trading group. Let me tell you how much they are looking to expand, Michael. They currently are at 77 million tons today and they have 70 ships. They’re adding a hundred and twenty eight ships. They got expansion going on, baby. That’s that’s a big number of ships. [00:04:41][71.0]
Michael Tanner: [00:04:41] No, and I think what they’re also seeing is they’re seeing that in these turbulent times where oil prices are all over the place, seemingly because of things that they can’t control, I think they look at the super major, specifically they look at the shells of the world, they look at the BPs of the World who have these massive trading arms that are able to basically provide profits, abnormal profits in times of lower oil price. I mean, we see this every time with Shell, oil prices go down. Their oil and gas business profits decrease, but their trading profits go through the roof because spreads go up. So I think what they’re doing is also taking a look at what’s going on macro and saying, okay, if we’re going to own all this LNG and it’s the easiest to trade, why don’t we just have our own trading arm and do this internally, capture those profits that are then leaving us and leaving it up to, you know, the vitals of the world or the BPs of the world. And so that I think is definitely part of their analysis as they’ve come to this Conclusion [00:05:37][55.7]
Stuart Turley: [00:05:38] Oh, I couldn’t agree more. And I think it’s great. And I, I think, it’s also interesting how much, uh, cutter energy is investing in the U S as well, too. So I think that was pretty good. Rolling to our buddies down there in Brazil. Let’s go roll around with Petrobras Petrobros, uh and Brazil oil and gas major has signed an engineering production and installation and E PCI contract with sub C seven. For the buizos 11 project worth four billion it’s 1.48 billion dollars that’s pretty amazing that’s a lot of money and it’s going to cover 15 wells to the p8 platform with eight producers and seven alternating water and gas well injections now i went ahead and added some of the domestic production and stuff for their They’re 25 to 29 business plan and strategic is a summary based on the available information. They’re doing a heck of a lot of stuff here. Petrobras has allocated $111 billion with 77 billion for the earmark for 2025 CapEx. They’re putting some money back out in that field, but go look at the bottom line, they’re partnering with, uh, China. Yeah. I mean, they got to go with who’s bringing them to the dance and, uh, you know, That will not get flagged for old president Trump to get worked up on. Just, yeah, it will. [00:07:06][88.1]
Michael Tanner: [00:07:05] Yeah, it will be interesting. And $111 billion for a company like Petrobras is a pretty insane number, considering the fact that over $77 billion of that is actually earmarked for exploration and production. Now, they have dropped their capex plans. It does say they did throw out there that they were investing $21 billion originally. That’s down to somewhere in the $17 to $18 and a half billion range, which is mainly. Due to the fact that prices have dropped a little bit. You know, they claim their breakeven price is $28 a barrel. Ooh, I’m going to say IR guy of the week maybe on that one. Maybe there’s one well in their portfolio that is a breakeeven of 28, but is it their higher portfolio? Ooh, ooh, I am gonna go out on a limb and say no. And I know I’m stretching really far, I doubt that. [00:08:03][57.9]
Stuart Turley: [00:08:04] No, no mass. No, boy. No. I don’t think so. Yeah Anyway, I thought that was a lot of fun. I love Petrobras. We love all of our great Listeners out there in Brazil. Brazil is one of our top countries Reading in the energy newsbeat podcast. I’m looking at the map right now and I think everybody in Brazil’s on our site We love it. We loved Brazil. We got to do a podcast from there, dude. Let’s get ready to rumble Let’s go to the last story [00:08:33][28.9]
Speaker 3: [00:08:33] We ever can get you out of Oklahoma. We’ll go down there. Oh, I’m half the time in Texas. [00:08:37][4.2]
Stuart Turley: [00:08:38] Uh, let’s go to Trump allows Equinor to reserve work on offshore wind project. You’d be happy. The whales just absolutely committed Harry Carey. I heard one of them beach himself here just about 15 minutes ago. He’d rather beach himself than, than face a windmill. Uh, what quick, what does that mean to you? That’s a beached whale trying to avoid a wind turbine off the epic empire wind project? Okay, this is really sad, Michael. And this part of our story that we covered yesterday, that I covered yesterday from Alex Epstein on the debacle we have as a government can’t get rid of the IRA, uh, porculous bill stuff, New York state power mix for 2023, I added this into the article. Because I want people to understand that New York power mix is the 8th most expensive in the United States right now. And when you sit back and take a look, they’re 46% natural gas. They can’t expand anymore on that because Governor Hokel has then turned around and said, we ain’t doing any more natural gas, hydropower is 22%, nuclear is 22% renewables are 10 percent. Ooh, but they also import from Canada. [00:09:56][78.0]
Michael Tanner: [00:09:58] I mean to be honest you know as much as you know I would have thought New York was going to be I mean New York to have a really odd mix of electricity I mean 46% natural gas 22 hydro 22 nougat that’s not terrible that’s a really good diversified mix I mean I don’t know how much New York does right but they’re at least doing this right [00:10:17][18.8]
Stuart Turley: [00:10:17] They shut down their nuclear and then they just barely reopened it. Michael, they were shutting down 22% of their power. Their, their, their path to stupidity is in that governor’s office. [00:10:31][13.2]
Michael Tanner: [00:10:31] Yeah, I guess, I mean, as of, you know, I mean, I guess we’re looking at 20-23 numbers. So I need, we need to know 20-25 is going down. But I mean you’re telling me between natural gas, hydro and nuclear, it’s over 80% of the electrical miss. I’d have thought it was way worse than that. So I mean they’re doing better than California. [00:10:46][15.3]
Stuart Turley: [00:10:47] Yeah, they are they’re eighth in the country. So they’re not as bad as California. Okay, not as bad as california is still eighth [00:10:56][8.4]
Michael Tanner: [00:10:57] I’m not defending them at all. I’m just saying like that, that is a little bit Chuck. Now, I mean, you do see that the average residential rates, you know, in New York or high, you’re talking about 27 cents per kilowatt hour, which is up about three cents from where they were in 2023. The average national is about 17 cents per kilowatt-hour, which is obviously not terrible. And the average monthly bill, as you mentioned, ranks. 43Rd or 8th highest with an average monthly bill of about a hundred and forty dollars. So not great. Yep, but [00:11:32][35.2]
Stuart Turley: [00:11:32] I, the fact that we’re bringing the empire project back on after it was laid to rest and you made an app, Apple, you made a great point and I, even though I don’t like listening to you, I did listen to you on that one. And it was a point that they had spent billions getting to that point, but at what point Were they just rushing through the graft and greed and the approval process? The fact that offshore wind cannot sustain itself without the subsidies is a problem for me, and why are we going down this road? Look at other sources to get your energy mix other than Offshore with [00:12:15][42.8]
Michael Tanner: [00:12:16] Well, I mean, I’m in agreement with you. Offshore wind is terrible. So I mean you’re not going to get any complaints from me. [00:12:23][6.6]
Stuart Turley: [00:12:23] The offshore wind is just one step below burning oil. [00:12:27][4.7]
Michael Tanner: [00:12:28] Yeah, or just getting mice to lose their minds on treadmills. I mean, there’s not much. There’s really not much worse. So it’ll really be interesting. Equinar did say on Monday that the following dialog with regulators, federal, state, and city officials, and that stop work order that they had talked about was lifted by the Bureau of Ocean Management, and that construction will resume. So regardless of what they think, they’re moving forward. [00:12:52][24.1]
Stuart Turley: [00:12:52] I just, I am sorry because watch what happens bookmark this podcast in 2027. Let’s take a look again at the New York state power bills as all this comes do and then you have to start adding this in, they’re going to get electrical rates added back in and the consumer rates are going to go through the roof. [00:13:16][23.6]
Michael Tanner: [00:13:16] Yeah it’ll be super interesting why let’s jump over quickly cover oil and gas finance before we do that let’s go ahead and pay the bills as always thank you for checking us out here on the world’s greatest website www.energynewsbeat.com stu and the team do a tremendous job making sure that website stays up to speed everything we need to know to be the tip of the spear when it comes to the energy and the oil and guess business hit that description below all links to the time stamps links to the articles Check us out on Substack, theenergynewsbeat.substack.com, the best place for all your energy and oil and gas news. If you want to stay up to speed with everything about Energy Newsbeat, Substack’s the place to go, guys. It’s a great way to support the show, theenergynewsbeat.substack.com. Also shout out to a friend of the show. Reese Energy Consulting for help making this possible. Guys, we love you. Reese Energy Consulting if you are in the oil and gas business and you’re in the upstream space you’re not working with an oil marketing company highly recommend giving Reese Energy consulting a call they’re gonna save you dollars on your first purchaser and midstream contracts if you’re the midstream space and you have all have any problems guys they are the experts when it comes to all that they’ve done business and done projects for pretty much everybody from you know the largest companies in the world to the smallest startups in the world and everything in between they of resources, check them out, reeseenergyconsulting.com, tell them Energy Newsbeat sent you and they will cut you a thousand percent discount. That’s a joke, but they will enjoy to hear that you got sent from here. Let’s also just remember guys, if you are looking to add oil and gas to your portfolio in 2025, go to investinoil.energynewsbeat.com. We have a great ebook available that kind of breaks down all the which ways. You can invest in the oil and gas business. We will get that to you so that you can, at parties coming up here, so that at your Memorial Day party this weekend, you can tell everybody you are Billy Bob Thornton from Landman. I think that’s a critical piece to all of this. You can also tell people you get a sweet little monthly distribution, you’re saving on taxes, and you are diversifying your portfolio. So guys, that’s investinoil.energynewsbeat. [00:15:23][127.0]
Michael Tanner: [00:15:26] Let’s do let’s look at the indices though. We got S&P 500 up about a half down about a half a percentage point. Nasdaq down about six-tenths of a percentage point. Two and ten-year yields. Two-year yields will flat. Ten-year yield is up though so not great from an inversion standpoint. Dollar index down about three-tens of a percentage point Bitcoin up over a hundred and six thousand dollars a coin. Unbelievable. Crude oil up about two-tents of a percentage point. Sixty-two 31 Brent was actually up a full percentage point 65 57 natural gas up 9 percentage points all the way started the trading day down at $3.11 all the way up to $3 and 39 cents. So natural gas having itself a day when we look at really what’s going on in the world. I think a lot of what’s happening right now is is the Iran nuclear talks. Yes, they they they you know they might they might have fallen. They may be falling off these negotiations. There’s a lot of geopolitical stuff going on right now. Basically, the Iran’s supreme leader, the Ayatollah Khomeini came out to say that the US demands that Iran stop enriching uranium are excessive and outrageous and voicing doubts on whether or not a new nuclear deal will succeed. Super interesting there. Remember, guys, Iran is the third biggest crude producer in OPEC just behind Saudi Arabia and Iraq. And this potential deal theoretically would allow Iran and the US, or between Iran and US would allow the Iranians to raise oil exports by some 300,000 to 400,000 barrels per day if those sanctions were eased, which would definitely take a hit to oil and gas prices. The EU and Britain announced some new sanctions on Russia. I mean, it’s just, we’re back in 2022 now. They did not wait for the US to join them. And that was a day after. Donald Trump spoke to Vladimir Putin and that ended with no ceasefire agreement. We did see some Chinese, we saw yesterday a bunch of traders responding to some Federal Reserve moves. They’re expecting US Central Bank to deliver somewhere in the cuts of about a half a percentage, you know, 50 basis point interest through the end of 2025 with. Which expected to start in September. Not sure if I necessarily agree. With that, we also did see some data that showed decelerating industrial output and retail sales in China. This has just really put more pressures on oil prices. You guys listen to this. You will have seen the API crude oil guesstimate and the EIA crude oil inventory report. Somewhere in that forecast, about 1.4 million barrels have been pulled. That’s just a guesstaiment, though it’s gonna be very interesting to see what happens though, Stu. That’s really all I’ve got. We’ve got a great State of the Union coming up tomorrow. I’m very excited to get this done, Stu. And we’ve got little segment that we’ll do at the end, which is predictions. And I saw a little glance at our predictions today. They’re a little spicy. [00:18:33][186.5]
Stuart Turley: [00:18:34] Oh yeah, now, whether or not we, uh, we have to go on record because I always think I’m a legend in my own mind and right, so might as well go on records. [00:18:42][8.8]
Michael Tanner: [00:18:43] Yes, absolutely, absolutely. So, well, all right, guys. Well, with that, we’re going to go and let you get out of here, get back to work. Start your week for Stuart Turley. I’m Michael Tanner. Thanks for checking Us out. We will see you tomorrow! [00:18:43][0.0][1099.7]
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