Week Recap: Energy Shutdowns, UK Election Shifts, and Rising Debt

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Labour Wins Landslide Victory in U.K. Snap Elections

Has The Extreme Bear Market in Natural Gas Come to an End?

South Dakota clashes with Minnesota on clean energy, coal plant closures

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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 in to the special July 13th, 2024 edition of the Daily Energy News Beat stand up. As always, it’s our weekly recap. Will recover the top stories for the week as a busy week still. [00:00:26][12.4]

Stuart Turley: [00:00:27] Oh, it’s been absolutely crazy. We’ve had Biden’s administration shutting down more oil and picking fights, even though the Supreme Court says go. I often try to be human. I don’t get it. [00:00:39][12.2]

Michael Tanner: [00:00:39] Yeah, pretty. Pretty interesting. It’s been a long week. We appreciate everybody sticking with us. As always, the news and analysis that you heard this week is brought to you by the world’s greatest website, Energy News beat.com. Hit the description below links timestamps to the articles. Check out our trading desk if you’re interested in selling crude oil, jet fuel or LNG will hook you up with the appropriate parties, but I’m going to go and turn it over to the weekly recaps too. We’ll see you guys on Monday. [00:01:00][20.7]

Stuart Turley: [00:01:01] Labor wins landslide victory in the UK snap elections. This I really feel sorry for the UK folks. This was the conservatives worst defeat in the party’s 190 year history. Tory leader Rishi Sunak resigned as prime minister Friday morning after his party won only 121 seats in the 650 seats out of House of Commons. I’m sorry I heard your anger, Michael. I don’t want to spend much time on this. It’s worth reading this article, but I feel sorry for the and the Brits. Their country is going to hell in a handbasket, even worse than in the United States. This man is a World Economic Forum fan, and he thinks that all of the green energy needs to be magnified. That’s all I got to say on this. This is absolutely unbelievable what kind of a human this individual is. [00:01:54][53.6]

Michael Tanner: [00:01:55] I think the, you know, as a as, as this regards to energy. I think one thing that we’ve talked about at nauseum on this show, and we’ve covered a few times, is the fact that there’s all of these, you know, you’ve got shell, you’ve got BP, all of them are considering listing on the New York Stock Exchange and U.S. run stock exchanges. I think this election, what this means is that you’re going to see that take full force. Now, I think by the end of 2025, I think you’ll see both shell and BP being listed and moving their headquarters to the United States in order to I mean, think about this to me, is that that was it. A profits tax was actually implemented by the UK? Well, that’s not going anywhere under this guy. [00:02:40][45.4]

Stuart Turley: [00:02:41] No, it’s being beefed up. And so not only are the Green New Deal and the energy policies and climate change being fully thrown in, he is now opening the borders and he is now saying he’s not. He’s canceling the closing of their borders and throwing out the illegal immigrants. So he is now totally going to bring down the UK as it relates to energy, the interconnects, everything else, the natural gas. I mean, this thing is a disaster. All right. Has the extreme bear market and and natural gas come to an end. No. In the in the in the in the latest edition the numbers we’ll take a look at some of the most interesting figures. And let’s take a look. 40% rebound in Tesla shares. He’s concerned about Tesla I’m pretty sure it’s going to make it. Guys. When you sit back and take a look at Tesla’s rally then you take a look at the natural gas. This is this article is from oil price.com. And it’s got a little bit of a multi flavor items in it. Natural gas storage plus five year average storage surplus to the five year has declined for a seventh consecutive week, falling to 528 BCF at the end of June. The average value of natural gas consumption from the power plants at 45.3 BCF per day at the end of June, a whopping 14% higher than the same period ago the previous year. [00:04:13][92.0]

Michael Tanner: [00:04:13] Yeah, I think obviously as we move into summer, we’re going to see prices move up a little bit. I mean, we’ll we’ll cover where natural gas prices are sitting at now. But we’ve we’ve seen a rebound over the last six months relative to where prices should have been. I mean, that’s the funny part is prices should be higher in the winter because we’re drawing from storage. But as this article is pointing out, storage is drawing down where the our five year average inventories has declined, as you mentioned, for seven straight weeks. So the real question is, are we going to start now seeing a reversal in kind of the cyclical trend of natural gas prices fall in the summer, rise during the winter. Well they may rise now because one we’re going to need a lot more AC being used and driving. Now, I did see a report out of one of our favorite, one of my favorite Twitter guys. I say that with a grain of salt. He’s not one of my favorite Twitter followers, but Patrick DeHaan, he’s the GasBuddy guy shill for the liberal energy Twitter. It doesn’t matter. He’s got great energy. He said that he saw disappointing demand for disappointing consumption numbers over the July 4th weekend, which is generally a a big gasoline consumption. So there’s a lot of interesting noise jumping back and forth. You know, I mean, I mean natural gas prices have fallen a little bit. We’re now back down into the low twos. Again, we saw last week I was off for this show. But the US you know, the courts pausing the LNG ban is also not necessarily bullish for U.S. natural gas prices. And the fact that now there’s a place where natural gas can go. And if it’s going to leave the United States because of the arbitrage between what you can sell it for here and what you can sell it for overseas. Yeah, it could be. I think there’s a lot of trying to understand what goes on in the natural gas market. Is it possible anybody that tells you they know where natural gas prices are going to go is lying to you, even if it’s me? So just be wary of all that. [00:06:08][114.4]

Stuart Turley: [00:06:08] Yes, South Dakota love me some. South Dakota South Dakota clashes with Minnesota on clean energy coal plant closures. As gas and electric companies transition away from fossil fuel, South Dakota officials stress reliability and resources in extreme weather. They get cold up there. Besides having to play poker, you know, to, you know, to try to warm up. This is really kind of interesting. A border war is between South Dakota and Minnesota on how to handle the tax policies. Appropriation and pandemic response could spill over into renewable energy in the future. So let’s listen to this. The Democratic Minnesota legislator in 2023 passed a law in 2023 requiring all electric utilities in the state to produce only carbon free energy by 2040. [00:07:02][54.0]

Michael Tanner: [00:07:03] Now they’re just making up terms. What is carbon. [00:07:05][2.2]

Stuart Turley: [00:07:06] Free? Carbon free means absolutely zero carbon being put into the atmosphere. And how do you do that? Nuclear. Unless you’re going to start, you know, going out and making nuclear nuclear’s the only thing that can do. [00:07:19][12.9]

Michael Tanner: [00:07:19] That nuclear plants had to burn some fossil fuels. And. So this comes back to scope one, scope two, scope three. I just have carbon free. Oh what does that even mean? [00:07:28][9.0]

Stuart Turley: [00:07:29] Right. Well, you know, what you have to do is plant all the farmland that you can in Minnesota, and you’ll be carbon net zero in Minnesota. I could solve this in about 2.5 seconds. Excellent energy. 3.7 million electrical customers include about 100,000 South Dakotans based in Minneapolis. So that’s why it is now impacting each other. It’s not because one side’s going to have the coal plant, have the air go by. But you know what, Michael? With over 75 volcanoes going around the world, net zero is not going to happen. [00:08:06][37.2]

Michael Tanner: [00:08:06] Yeah I love this article. We actually put the the full PDF that was sent by the president of Xcel Energy who’s over or no. This is to prove who’s this from. This is from the commissioners over in Minnesota to write Xcel Energy, who I’ve been. [00:08:22][16.1]

Stuart Turley: [00:08:23] Waiting for, Gary Hansen and Chris Nelson. [00:08:26][2.9]

Michael Tanner: [00:08:26] I will admit, I back in Colorado, I was a longtime Xcel Energy customer. I do like them. Obviously regulated monopoly. They’re part of the Midcontinent Independent System Operator or Miso grid and they’re. Yeah, it’s it’s very interesting, you know, closing coal to spin up. It’s going to be very interesting. [00:08:43][16.4]

Stuart Turley: [00:08:43] Listen to this. Miso is going to estimate that 103GW of generation will be closed over the next 19 years. 80% of that is dispatchable. How are you going to replace 80% of your grid dispatchable energy you can’t get. [00:09:03][19.7]

Michael Tanner: [00:09:03] You get a bunch of mice on treadmills just losing their mind. [00:09:06][2.5]

Stuart Turley: [00:09:06] It’s still not dispatchable. I mean, you’re going to go harder. Yeah. You’re running for geez. We’re geez. ConocoPhillips sues over Biden’s oil and gas drilling ban in Alaska. Michael, this is important because of the Chevron deference Supreme Court ruling. This is important. This is the fourth major anti deep state legislation through regulatory action. And ConocoPhillips is now stepping up to it. A I love Alaska B I love the environment. See, ConocoPhillips does a great job drilling for a low cost energy. And they need to go drill turn them loose. Congress did not authorize BLM to promulgate sweeping regulations that thwart and prevent the production of petroleum through the n b r a, ConocoPhillips said. Yet the rule contains numerous new provisions that elevate resource preservation over energy production and effective. He turned the petroleum reserve into a defacto wilderness area. Which development is outright prohibited here? Here’s the thing. Why are they doing this when they aren’t saving the whales that you love to kill? I mean, you would think that the wind farms would have the same kind of regulatory actions on them. [00:10:28][81.6]

Michael Tanner: [00:10:28] The real question is, is, is is this in light of the Chevron decision? Yes. So this. So my point is this is exactly why not having executive and regulatory agencies cover this stuff is critical. Because if the if a new if a different administration was in there, this rule may or may not exist. And taking that power away from the regulatory agencies and putting it back in the proper functions, which is the democratically, the democratically also put that it’s the democratically elected Congress and the courts is a much better system. But I, I think you’re going to see a lot more of these type of cases now that that Chevron decision is overturned. Obviously, Alaska with 1.8 million acres of state and federal leases that ConocoPhillips could drill on, including 1 million net undeveloped acres. There’s a lot that could be developed there. [00:11:18][50.1]

Stuart Turley: [00:11:18] The Alaska pipeline is, I believe, it’s past its retirement date that they had projected, and it’s only about 20% used. They could still pump out a lot of oil down there. And I would rather have California buy oil from Alaska and truck it down and buy it from America and know that it’s not coming from Iran or China. Sorry. Yes. The left’s $7 trillion line. Biden far outpaces Trump in racking up the national debt. As I said, I am not a fan of debt. If you don’t have the money, don’t spend it. We saw a classic case of projection in Thursday’s presidential debate back two weeks ago, who is overseeing annual deficits of $2 trillion inserted as president and predecessor Donald Trump added more to the federal debt than anyone else. Here’s where it comes in. Mr. producer, if you could bring this chart up January 2021 with the Central Budget Office forecast June 24th, and take a look at this. The numbers are just staggering. There’s absolutely no way the Congressional Budget Office forecasts include an increase in debt. In other words, the CBO now expects the debt to be $7.2 trillion higher than it had projected when Trump left office, all because of Biden’s reckless, expanding policies. The Treasury Department figures also show debt growing much faster under Biden. We are on a horrible, slippery slope over Trump’s entire term, including the 2020 state of emergency Covid spending. The debt increased by 7.7 trillion. However, 15% of that debt, or was the result of the Treasury’s choice to keep additional cash on hand during the pandemic. Former Treasury Steve Munchkin, unsure how tax revenue would be collected, borrowed over 1 trillion. Biden, however, spent that reserve and then borrowed another 7 trillion on top of it instead of simply allowing one time emergency Covid spending to expire. Biden and the Democratic Congress continued spending that same Covid era level, thus institutionalizing Multitrillion dollar deficits. So the Democrats and the Republicans are at fault for this horrific spending. Accounting for the cash balances. Who spent more? Biden definitely spent more. And that needs to be clarified on that. What this means for energy and it’s just, is the cost of capital for oil and gas companies to try to, bring it in is still high. This is one of the primary reasons that they’re not reducing any of the the money. Unbelievable. I’m kind of almost at a loss for words. [00:14:28][189.2]

Stuart Turley: [00:14:28] This story is amazing. Department of interior shuts down millions of acres of Alaska to oil and gas and mining activity. The decision on D1 lands removes the area the size of the state of Pennsylvania from source development, and this was originally approved by Trump. Now, this happens after the Chevron deference Supreme Court. And we’ve had four cases, Michael, that have already been overturned by the overreach of the Biden administration. And then the Biden administration rolls over and goes, we’re not quite dead yet. We’re going to make some people’s lives miserable. This is nuts. This is a quote. Of the article. Today’s double whammy attack on Alaska’s resource development opportunities makes 65 times the Biden administration has targeted our states in energy and economic future. The administration has completely kowtowed to radical environmental environmentalist in order to gain favor at the ballot box. 28 million acres off limits. This is just nuts. They’re not getting. [00:15:36][68.2]

Michael Tanner: [00:15:37] What they’ve also didn’t. In a separate decision, they also blocked a 211 mile gravel road that would go ahead to connect west central Alaska and the mining districts, and extremely rich in copper. [00:15:50][12.9]

Stuart Turley: [00:15:50] We need that. If they want to do an energy transition, they need the mining, they need the copper. And I tell you what, our great oil and gas and our mining operations up in Alaska are better than anywhere else in the world, and they care about the environment. Why do you have the Native Alaskans up there loving the oil and gas industry? Why do you have everybody lining up fighting for it? Because of the good regulatory actions that they have had in the state. Level up there. Hats off to the state I love. I love Alaska. [00:16:22][31.7]

Michael Tanner: [00:16:22] No, we love Alaska. They they specifically are citing the fact that the jobs, revenue and minerals would forward help Alaska continue to fund them, but also make us less energy dependent on other nations. [00:16:33][10.6]

Stuart Turley: [00:16:33] So it’s really. [00:16:34][0.8]

Michael Tanner: [00:16:35] A catch 22 here. [00:16:36][1.1]

Stuart Turley: [00:16:36] Yeah. We have this big ugly thing called China over here. We got to go through. [00:16:36][0.0][969.8]

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