Why Gavin Newsom Keeps Getting Energy Policy Wrong

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COPs from the UN have failed and it is time for a real dose of climate realism – What will Gavin Newsom do now for a speech punch line?

November 12, 2025 Clark Savage

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

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Michael Tanner: [00:00:00] Shocker Gavin Newsome wrong again on energy policy. You’ll find out next on the Energy Newsbeat stand up. [00:00:08][8.5]

Stuart Turley: [00:00:17] Cops from the UN have failed, and it’s time for a real dose of climate realism. What in the world will Gavin do for a speech punchline now? Holy smokes, you can’t buy this kind of entertainment. Gavin Newsom is speaking at COP 30. And you know, when President Trump came out and started going drill baby drill, he ran right smack into Gavin Newsom in Brazil. What are we talking about here? Gavinor Newsom on stage enters in on COP 30, clutching his script like a lifeline in a Sao Paulo site event along a Milken Institute CEO, Richard. I don’t want to mispronounce his name, but I believe it’s Ditso. Newsom dropped a zinger that’s equal, puts alarm and irony. China gets it. America is toast. If we don’t snap out of our fossil fuel stupor and chase Beijing’s dominance in a clean energy supply chains, manufacturing and market flooding across the EU and Africa and beyond, he is so out to lunch. Michael, this man is absolutely weird. And I’m gonna use this. He is up there with Timmy from you know the weird guy that war loved the who is the vice president pick for Kamala Harris. Hold punch bag Timmy cannot even keep hold of candle to this one. This is terrible. Gavin Newsom’s war on oil and gas in California has elevated California to a national security risk of biblical proportions. Cats and dogs are gonna be falling out of the sky before we get energy security in California. [00:02:03][107.0]

Michael Tanner: [00:02:04] Yeah, I think that I think just Gavin Newsom, he he understands the talking points, but he doesn’t he doesn’t understand the substance behind it. He’s not wrong when he says China is running the clean energy supply chain. They they are. They truly are. But that does not mean that China is using said supply chain to power their economy. Just because they’re making solar panels doesn’t mean they’re putting them up in Beijing. What they’re actually doing is buying more oil, buying more coal. We’ve been talking about that for years now. So it’s one of those, you know, signal versus the noise. The signal is, oh, they’re making all these solar panels. Well, the question is, are they using all these solar panels? What China has aptly, in my opinion, figured out is that the world wants solar panels. The world has put itself on this clean energy trajectory that it feels won’t that at least the China feels like it they won’t back away from. So if we can go ahead and create a moat around what is going to be theoretically the world’s new energy source, whether or not China uses it or not, it gives them a strategic national security advantage. So it’s just a classic, classic Gavin Newsome understanding the talking point, but not looking a layer deep and looking at what’s actually going on. [00:03:19][74.1]

Stuart Turley: [00:03:19] No, and I I believe President Trump in his name calling Scaven Newsom is actually pretty funny and accurate. Let’s go to the next one. Speaking of President Trump. President Trump predicted the return of coal, but not to its glory days in the U.S. This is from Doug Sheridan on LinkedIn. And Doug Sheridan is a one cool cat. Javier Blaz from Bloomberg wrote that Trump has confidently predicted the return of coal in America. Trump won’t resurrect coal consumption to its glory days, but he’s likely to arrest its decline, freezing demand around current levels. U.S. Coal demand will rise this year to about 465 million short tons driven by higher electricity generation that’s down 60% from 2007’s record high. Michael, if we did not do this, Secretary Chris Wright’s team out there at the energy department put out aptly that we would have rolling blackouts across the United States if the Trump administration through Secretary Chris Wright, Doug Bergum, and Lee Zeldon did not take aggressive action and restore our coal. We’re actually putting in a new coal plant. We’re actually working on clean coal things. Coal is gonna be here for a while. Will it be where it was? No. But are there gonna be more new coal plants? Nuclear is decades away from really making a difference. So you’re either gonna have coal, natural gas, or smaller nuclear, and it’s not gonna be enough to make a difference. So it’s back to coal and natural gas. [00:05:00][101.0]

Michael Tanner: [00:05:01] Well, and I think you say back to coal. I think Doug Sheridan in this article points it out that it’s important to remember that coal consumption year over year throughout the entire world has been increasing for the last ten years. So it’s not like we haven’t kept in not using coal. We’ve the world’s been using it. It’s certain sectors of the world have lowered their coal consumption. But other areas, like we talked about China, like we talked about some developing nations, they’re going, I don’t want to say all in on coal, but they’re using coal because it can be a good power generation resource. [00:05:32][31.3]

Stuart Turley: [00:05:33] And clean coal is good. And when you take a look at the map that you can find off of energynewsbeat.co and then go to resources tab, go look at the global coal tracker, and you will see. In fact, I will go add that to this article in in here, the amount of new plants that are still being constructed in India and Asia and China is huge. [00:05:56][23.5]

Michael Tanner: [00:05:58] All right, let’s go to the next one. [00:05:59][0.9]

Stuart Turley: [00:06:00] Billions are flowing into the US nuclear sector, but how long until returns are realized? I started writing this article when I started figuring out going, I love me nuclear, love my interviews with all my energy, my nuclear CEOs, but when is it going to impact? The US nuclear industry is experiencing a true renaissance fueled by massive investments and a surge in demand from energy hungry AI data centers. Michael, you and I talked about the three mile island. I did not have that on my bingo card a month or so ago when they started putting that one in. According to recent reports, around 80 billion is pouring into new nuclear projects. Tech giants like Amazon, Google, Microsoft be betting big on advanced reactors to power their AI ambitions. However, highlighted in Bloomberg’s analysis, this nuclear bet won’t deliver meaningful power to the AI boom for at least a decade, raising questions about timelines, risks, and investor patience. Michael, what the oil and gas industry has lived through by being held accountable for investor returns is really now the gold standard for returns. To investors and the the nuclear fallout to as as a pun would say the nuclear fallout of investors is I think we’re gonna see a bit of a peak and a valley approach nuclear until returns from projects can start rolling in. [00:07:35][95.2]

Michael Tanner: [00:07:36] Yeah, it’s I’m I’m again completely with you. I think nuclear is years and years away. Obviously, if we’re going to move to this AI focused future, which I think everybody believes we are, it’s going to need to play a huge role. We’re going to need to innovate because the current layout is not great. [00:07:52][16.6]

Stuart Turley: [00:07:53] Oh no, I absolutely, but let’s roll into a very similar story here. Chevron rolls into West Texas for first data center project following Liberty’s business model. I had fun writing this one in a bold move to capitalize on the surging energy demands of artificial intelligence. Can you see the theme for today’s show? Chevron has announced its first dedicated power project for a data center in West Texas. This initiative marks the giant strategic pivot in the power generation sector, leveraging its abundant natural gas resources from the Permian, which is really needed at this time to fuel the AI boom. However, Michael, as we get into there, they’re going to be powering this bad dog. GE’s Vernova’s advanced 7HA natural gas turbines, and the setup is for co-location, meaning the power plant will sit adjacent to the data center behind the meter to minimize the transmission losses and enhanced reliability, which means the Permian folks will not be paying for the transmission lines or they will take advantage of the cost increases. This is a great thing. However, my interview with Ron Gusick over there at Liberty Energy, they’ve been doing this now for about three years, running down this path and creating data center. Natural gas and they have snotched it up to a lead in nuclear as well too. So hats off to good management over there at Ron Gusick at Liberty Energy. He’s cool cat. They are on this long before Chevron. [00:09:36][103.5]

Michael Tanner: [00:09:38] No, absolutely. They were they were on it. I think they’re doing a a a great job over their liberty. Obviously, that’s a lot of why Secretary Wright is now in the position that he’s in because of what he started. Ron Gussick has sort of picked up the mantle and continue to run down the road. But no, I absolutely think what Chevron’s doing is I think they’re trying to get into trying to pivot this bells. I mean, you know, the only really pure competitor if your Chevron is Exxon and you I don’t want to say lag behind them. You’ve always been smaller than them. But if you have any desires to catch up and eventually surpass ExxonMobil, you’ve got to do things a little bit differently. So I like this new transition, I guess, to new energies. I mean, it’s always great when McKinsey gets a nice big consulting check to come in and do another reorg that doesn’t really mean anything, but it gives you it gives some consultants ability to build some nice billable hours. [00:10:26][48.1]

Stuart Turley: [00:10:26] You bet. When the when the bobs show up to lay people off, right? So what what exactly You’re not agreeing with me. What exactly do you do here? You always are a little worried about that. Let’s go to the next one here. Oil and gas demand could grow until 2050, says the IEA. In the words of Monty Python, oil’s not quite dead yet. I took a little liberty with that one when you know, as they’re sitting there going, I’m not quite dead yet. And they smack him in the head as they’re hauling him out. The international IEA released its world energy outlook, painting a new picture of global energy trends that challenges earlier narratives from a swift transition away from fossil fuels in a revised scenario based solely on current policies and regulations, known as the current policies scenario. The CPS demand for oil and natural gas is projected to continue through mid century with no peak in sight before 2050. And their chart, Michael, does not peak out. [00:11:27][60.5]

Michael Tanner: [00:11:27] Yeah. [00:11:27][0.0]

Stuart Turley: [00:11:28] So they I think they’ve learned a little bit on this. And I’m not sure if it was Secretary Chris Wright getting over there and pulling the purse strings and going, We’re about to pull the IEA’s funding. I think they are 100% motivated to write a report only leaning to people that write the check. [00:11:47][19.3]

Michael Tanner: [00:11:48] Yeah, it’s nope. I mean it’s I’m just laughing because it’s unfortunately true. I think you know, we’re not dead yet. We’ve never have been dead. Yet I think what and and I think today’s specific price action on oil and gas shows that we’re in a position where oil production is constantly growing. Technology is getting better. It’s not going anywhere. So I think it’s it’s you know, this highlights I think a lot of what we’re seeing. I wanna talk specifically about that price action that we saw today, because some interesting stuff out of that. But first, let’s pay the bills. We’ll be right back on the other side. As always guys, the news and analysis you just heard. Is brought to you by world’s greatest website, www.energynewsbeat.com. Stu and 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. Go ahead and hit the links in the description below for all links to the timestamps, links to articles, and specifically subscribe to the show on YouTube,subscribe to this show on Apple iTunes. Give us a follow there. Subscribe to our show on Spotify. Please leave comments there and subscribe to our sub stack, www.energynewsbeat.substack.com. That’s probably the best place to support the show. Stu does a great job of releasing two to three articles a week that really encompass the big themes that are going on. We also drop all of our podcasts there, which give a little bit of a breakdown. We just had a great, great podcast. So I highly, highly recommend everybody subscribe to the energy newsbeat.sub stack.com We’d also like to thank friends of the show Reese Energy Consulting for supporting the show guys. Reese Energy Consulting is the foremost midstream expert. Guys, if you had at all. Are dealing with issues in the midstream space, whether you’re an upstream company and need help with your first purchaser’s contract or renegotiating your gas contracts or figuring out where you’re gonna tie in your next pad because you’ve got multiple different options and you’re trying to break it all down. Reese Energy Consulting can help. If you’re in the mainstream space, I need an extra pair of hands, need some permitting or regulation help, or need some red team analysis on a final investment decision, guys. They have the team that can help you check out ReeseEnergyConsulting.com They have clients everywhere and all throughout the country from two people in a garage all the way up to the largest publicly traded companies in the world. So if you’re wondering, are you a good fit for them? The answer is yes. ReeseEnergyConsulting.com And finally guys, investinoil.energynewsbeat.com We are coming up on the end of the year. And I promise you guys, you do not wanna be paying money to Uncle Sam. You wanna keep as much money in your pocket. You wanna diversify your portfolio a little bit and you want to get some dividends. You can do that by investing in oil and gas. Check out investinoil.energynewsbeat.com Fill out our portfolio survey and our tax calculator. And guess what, you guys, you guys are gonna get and get a nice ebook that tells you here’s what you should look for when you invest in oil and gas. And also figure out what your tax burden is and figure out how much you might save relative to your tax burn if you did invest in Oil and Gas, guys. We practice what we preach here, guys, we do this stuff ourselves. Investin oil.energy newsbeat .com Don’t give your money to Uncle Sam. Figure out and find out if oil and gas investing is for you. Depending on if you qualify, we will, again, send you all that information and we may or may not point you in the right direction. Again, investin oil.energynewsbeat.com.[00:15:00][191.7]

Michael Tanner: [00:15:02] All right. Not a Stu, not a great day. If you’re in the oil and gas space, we opened the day trading just a little bit above sixty fifty. OPEC decides to release a pretty brutal bearish report. Prices now fifty eight thirty eight as we record this a little after one p.m. Here on the 12th. What did OPEC say specifically? Well, for months now, they’ve been constantly banging the drum and we’re still in a demand or a supply deficit, meaning demand slightly outslips supply. Well, for the first time in a while, OPEC has released a report saying that supply will match demand next year. And that’s due to their wider production increases and continued strength from the U.S. Oil production. Quotes out of everywhere are saying the, you know, Phil Flynn over Price Futures Group, the prospect that futures market is balanced is definitely what drove prices down. We just mentioned on the EIA, which dropped its world annual forecast. You know, I think it’s really interesting. Here’s Giovanni Stavano, who’s a UBS analyst due to a modest downward revision of oil demand and higher non-OPEC plus supply and Q3. The OPEC secretary now predicts a surplus for 3Q. That said is still much smaller compared to EIA and IEA. Well, obviously, OPEC’s gonna have a little bit of a smaller one. We also, obviously, with the U.S. Government reopening, yay, the government’s open. It’s always good when the government works. The the bearish signal for oil is now flights are going to increase because that was part of the sort of the bearish look was oh, for 30, 45 days we haven’t had full flights going, jet fuel, all that good stuff, but it it continues to tumble. You know, outside of that, Stu, I did see an interesting, an interesting MA action this morning. Baytex announces the Final exit from U.S. Eagleford assets divesting entirely of that Eagleford position to an undisclosed buyer for $2.3 billion. Their stock jumped like 8% off the news, which is funny because, okay, so their entire Eagleford position sits somewhere around 269,000 gross acres, about 70% operated. Okay. So remember that number: 269 gross acres. They divested for 2.3 billion. Well, remember, the majority of that acreage, specifically 167 or 162,000 of those acres were acquired two years ago when they acquired Ranger Oil for drum roll please, $2.2 billion. So we do the math. You’re looking at about an extra 100,000 acres they already had in their portfolio. They merged with Ranger. That entire $2.3 billion they sp or $2.2 billion they spent to buy Ranger. They only got $2.3 for Ranger, lost their legacy Eagleford, and they dumped about $400 million into develop. So it goes to show you one, people always like MA, MA merge, be great. Well, sometimes it doesn’t work. And also when companies shed non-core assets, because Baytex is primarily located in the Monty and Duvernay up in Canada, the market loves it. Even though this transaction on a net Eagleford basis was a net loss for the company. So super fascinating. Cool. Just, you know, in real interesting. And I think it’s it it goes to show you again, MA is is great, but you gotta be careful about how you underwrite this stuff. [00:18:29][206.5]

Stuart Turley: [00:18:29] Right. So looking at the deal. Yeah, looking at the deal is pretty important. [00:18:33][4.2]

Michael Tanner: [00:18:34] No, well, and just again, making sure that a lot of this stuff makes sense. I f we find it interesting. All the best though to all those Bay Tex folks. We love them there. It’s been a good week, Stu. It’s been a long week. We’re ready to keep it going. Who’s dropping on the podcast Friday? [00:18:46][12.6]

Stuart Turley: [00:18:47] We’ve got Dr. Lars and it is going to be a big one. It is gonna be absolutely huge. [00:18:54][6.4]

Michael Tanner: [00:18:55] Love it. Love it. Well, that’ll be great, guys. We appreciate everybody checking us out here. Have a great Thursday. Have a great Friday. You’ll see our weekly recap on Saturday. We’ll be back in the chair Monday, guys, for Stuart Turley, I’m Michael Tanner. We’ll see you tomorrow. [00:18:55][0.0][1110.9]