Africa Energy Bank to Fun Oil and Gas

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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: [00:00:14] What’s going on, everybody? Welcome into the Wednesday, June 5th, 2024 edition of the Daily Energy News Beat stand up. Here are today’s top headlines. First up 5 billion in initial capital. Africa Energy Bank created to fund the continent’s oil and gas industry. Next up rapid development. Converting former Kentucky coal mine into 287 megawatt pumped storage hydro power facility. Something like out of Stu’s backyard. Next up, Erdogan says Turkmenistan could soon begin gas exports to Turkey and to Europe. And then finally introducing an oil price plunge hits BP and shell sales. A nice little touch on the finance segment, which would then he will, stew will then toss with me. I will wrap up with what happened in the oil and gas markets and talk about the, the API report. And again, really what we saw with oil prices today, plunging over 2.5% percentage points. So we will cover all that and a bag of chips, guys, as always, I am Michael Tanner, joined by Stuart Turley. Where do you want to begin? [00:01:20][65.2]

Stuart Turley: [00:01:20] Hey, let’s start with our buddies over there in Africa. I just got a give a shout out to the African, energy chamber. Out there. They’re doing a great job out there. And 5 billion in a national capital. African Energy Bank created to fund continent’s oil and gas industry. After mix, Bank and a PPO signed the establishment documents and charter in Cairo. This is exciting. I’ll tell you, I would love to, get in there and see why, that has been two years in the making on this. And it’s, pretty exciting when you sit back and try to take a look. Africa needs to go Africa first. And, it’s pretty important because right now it’s the West is going over there and, and draining their resources and taking the raw materials out and manufacturing them. Not in Africa. Africa needs to drill it. Africans need to drill it. Africans need to have the manufacturing and energy. And then they need to have the, the the thing there. [00:02:28][68.0]

Michael Tanner: [00:02:29] Well traditionally it’s it’s it’s a lot of Western countries coming in and, and, and taking a lot of the profit or the upside to whatever oil and gas asset is available and bringing it back to, you know, their shareholders abroad. You know, this is, as you said, localizes everything. But, you know, big, big, big fan of this. I mean, Africa’s struggled to secure, you know, regular financing for years now, which is why I think having a specific, you know, African Energy Bank to be able to invest in these type of project is critical. So all right, what’s next? [00:03:01][32.2]

Stuart Turley: [00:03:02] I think it’s critical because the, International Monetary Fund ties everything to renewables. And then they have to do that. What? What are you doing? [00:03:11][9.2]

Michael Tanner: [00:03:12] Oh. Say nope. They I everything to renewables. [00:03:14][1.5]

Stuart Turley: [00:03:14] Yeah. Oh yeah. They I everything renewable. Okay. I was like for a podcast listeners I was like am I speaking sign language when the millennial I am. What’s next Rye development converting former Kentucky coal mine into 287 megawatt pumped storage hydro power facility. This is actually extremely cool, Michael. The Lewis Ridge project, which received 81 million in funding from the D.o.e., will provide up to 671 megawatt hours of electricity annually and have a daily energy storage EMF generation of 2165, megawatts. Pretty darn cool. [00:04:01][46.4]

Michael Tanner: [00:04:02] Yeah. No, that that daily storage of around 2000 megawatt hours is going to be critical in terms of having that backup generation. It’s a big number. It’s not a small number. [00:04:12][10.2]

Stuart Turley: [00:04:13] No. I’m sitting there doing the my microgrid and one of my compounds. I’m over here going, I got me a turtle farm in here and do me some of this. I like this idea. [00:04:21][8.5]

Michael Tanner: [00:04:22] Yeah, yeah. No, we love that. You know, you also have to remember, you know, this this county in which this redevelopment, Louis Ridge pump storage project is going to go into Bell County. It saw nearly 25% of its community relocate due to the fact, due to the declining coal business in the area. So this is jobs, jobs, job. [00:04:41][19.6]

Stuart Turley: [00:04:42] It’s more than jobs, jobs, jobs. It is, projected that this project could have a 100 year lifetime. What? A recycling for a coal mine. I think this is absolutely wonderful. [00:04:55][12.9]

Michael Tanner: [00:04:55] Love. Good reclamation. What’s next? [00:04:57][1.6]

Stuart Turley: [00:04:58] Let’s go to, Turkmenistan. Erdogan says, Turkmenistan could soon begin gas exports to Turkey and Europe I can’t be. I would be remiss without mentioning Turkmenistan without mentioning Toby Keith. Toby Keith has one of the greatest songs in the world, and he’s singing the song and he’s going out by Palestine and Turkmenistan. Let’s flip the finger to the Taliban anyway. You cannot buy that kind of entertainment. But let’s jump back to Turkmenistan. Mr. Producer, if you could bring this poster up, the posters up in. And Michael, look in the dead center of the, the, map, and you’ll see the Caspian Sea. Turkmenistan is right there in the lower center of the right hand of the picture. That orange, pipeline coming across is critical because it is going through a my sources are saying is things going through. What that means is you can roll right on through to Club Med, and now you can start pumping some natural gas in there to the EU. And it’s going to bypass Russia. And this is you. [00:06:15][77.4]

Michael Tanner: [00:06:16] Know. [00:06:16][0.0]

Stuart Turley: [00:06:17] This is an unbelievably huge. [00:06:18][1.6]

Michael Tanner: [00:06:20] It is huge. And hey, it’s the rebalancing of the world’s energy economy. We’re seeing it live happening right now. So and we love we love love more than a little club man that that’s the club man. [00:06:31][11.5]

Stuart Turley: [00:06:32] Club man. And slip a finger to the Taliban. I when you we have Turkey primarily interested. This is a quote interested in Turkmenistan gas because it has to diversify sources of gas imports. And part of this is because of, the geopolitical crap that’s going on in the EU. It’s unbelievable. You can’t buy stupid between the U.S. government and the EU government. I’m happy for the Turkmenistan folks now. [00:07:01][29.1]

Michael Tanner: [00:07:02] We’re always nation first here. What’s next? [00:07:04][2.3]

Stuart Turley: [00:07:05] Let’s go to oil price plunge heads BP and shell shares. The slump in oil prices so far has dragged down the top UK oil and gas super majors shell and BP, with their stock falling on Tuesday. BP was down 3.7% and shell dropped 2%. Here’s where another article came out. The hunt for hundred dollar oil by OPEC is over. They’re saying that they’re going to be happy with $80 mark. What do you think? [00:07:41][35.8]

Michael Tanner: [00:07:41] Well, I mean, it’s clear they’ve already cut and prices have reacted as we sit here today. Oil’s 72 bucks. So you know now that’s still good. But also from the standpoint of you know, it it may or may not necessarily, be the best for these companies bottom line. So again, I think your, your, your oil and gas majors in the UK are always going to lag the U.S shale as it’s, you know, the US shale guys because their, their, their the impact in terms of their exposure to the swing of commodity prices a little bit less, but it’s a lot cheaper to do over here in the United States. BP, shell, you know, they’ve got some but not as much access to low cost, you know, lower 48 development. So it’s going to be interesting to see, how those guys relatively play out. But man, I, I wouldn’t want to own shares of either of these companies. [00:08:34][52.6]

Stuart Turley: [00:08:35] No. And I would not want to because you and I have always said good management, good numbers, and they’ve been wishy washy. You have got to stand up. Albert Einstein once said, bad. We cannot blame all of the bad things on the world, on bad men. It’s the good men who do nothing. And if you sit there and do nothing and watch these, companies go to non profitable business models, that’s. It’s your fault for investing. [00:09:07][31.9]

Michael Tanner: [00:09:08] It’s true. [00:09:08][0.2]

Stuart Turley: [00:09:09] It’s your fault for investing in them. [00:09:10][1.6]

Michael Tanner: [00:09:12] Not me. I ain’t messing. [00:09:12][0.7]

Stuart Turley: [00:09:13] Not me. Not with your money. [00:09:15][1.6]

Michael Tanner: [00:09:16] No. So. All right, well we’ll, we’ll jump into, the crazy plunge that oil prices has. But first we got to pay the bills around here. Guys, as always, the news and analysis you just heard is brought to you by the world’s greatest website, energy news beat.com The best place for all your energy and oil and gas news to 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 description below. You can take all of the links to the timestamps, links to all of the articles, and of course a dashboard@EnergyNewsbeat.com. Again, www.Energynewsbeat.com. Thanks for checking us out. [00:09:52][36.7]

Michael Tanner: [00:09:54] You know, a little drops really today is as as this OPEC plus boost of quote unquote you know or reaffirming of the cuts. You know really kind of sees through the shakiness that is the demand market right now. Top line markets though a little bit wobbly. We. Saw the S&P 500 gain about a 10th of a percentage point. Nasdaq up about 3/10 of a percentage point two, and ten year yields fairly flat. We did see Bitcoin up over 70,002.7% increase for the day. Crude oil on the overall day down about a half a percentage point, was down as much as two and a half percentage points though even below to that mid of 72, below 7250. We currently sit 7287. You know, one of the big reasons we saw that was API. Crude oil inventories come out. They say that, or their guesstimate of the future petroleum, not reserve, but our crude oil inventories tomorrow that the EIA will release was about 4.05 million barrels. Bill, obviously very dry. There was an, analysts had expected about a 1.9 million barrel draw. So you’re talking about a 6 million barrel swing relative to what? You know? I don’t buy it, thought, versus to what happened. So that’s main driver of prices to kind of underpinning again the weak demand side I think people are confident that there’s the supply there. The question is on the backside where’s the demand. Who knows. Will that’ll come up I think it’s going to be interesting. And and to kind of see where prices go. And I’m just waiting for Goldman Sachs next bullish article I mean everybody to revise their prices upward. And it’ll be interesting to see where this bottom comes out to be. [00:11:31][97.0]

Stuart Turley: [00:11:33] The I, I disagree. And we’re going to put it right here. We’re going to take an timestamp on this one. With the AP reported that our large, builds, I think the numbers may be manipulated. [00:11:47][13.9]

Michael Tanner: [00:11:49] You think the numbers might be manipulated? [00:11:51][1.6]

Stuart Turley: [00:11:52] Yes, it is, for political reasons. It is being minute. Manipulated. [00:11:56][4.0]

Michael Tanner: [00:11:57] Well, we love a good conspiracy. That’s it for me, though. Quick one on the on the oil side. What a what should people be worried about these next couple days? [00:12:03][6.3]

Stuart Turley: [00:12:04] Well, I’ll be in Abilene tomorrow, so off and running. [00:12:06][2.5]

Michael Tanner: [00:12:07] Absolutely, guys. Well, with that, we’ll let you guys get out of here. Finish up your day. We appreciate everybody checking us out here on the world’s greatest energy news podcast energy News beat for Stuart Turley I’m Michael Tanner. We’ll see you tomorrow folks. [00:12:07][0.0][683.6]

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