Rey Trevino, Crude Truth Podcast Host, and President at Pecos Operating, stops by. This was recorded yesterday, and oil has dropped back down several dollars. The volatility will still be around until demand destruction kicks in.
We have a wild stand-up with 8 huge stories. It is fun having guests on the stand-up, and Rey brought the receipts today. The picture above was created by Grok, and it is Clark Savage standing by the tanker “Stan Turley” – I think Grok was having a moment.
With Brent crude surging past $100 per barrel and West Texas Intermediate jumping dramatically, the conversation reveals how Houthi attacks on shipping lanes, Chinese strategic positioning, and disruptions at key maritime chokepoints are reshaping energy markets worldwide. Through an in-depth discussion with energy expert RT Trevino, the podcast challenges prevailing narratives about the energy transition, presenting compelling data that shows fossil fuels still account for 86% of global energy consumption. From Europe’s LNG crisis and America’s emergence as a natural gas superpower to the manufacturing exodus from Canada to the U.S., this episode provides essential context for investors, policymakers, and anyone seeking to understand the complex forces driving energy prices and global economic security in 2026.
1. Oil Price Surge & Global Geopolitical Tensions
Brent crude has surged above $100/barrel, with West Texas Intermediate (WTI) jumping from $81 to $91. This spike is driven by geopolitical instability, particularly Houthi attacks on tankers in the Bab El-Mandab Strait and the Red Sea, which are disrupting global oil supply routes and forcing tankers to take longer routes around the world.
2. Strategic Chokepoints & Supply Chain Disruptions
The podcast discusses critical maritime chokepoints—the Bab El-Mandab Strait, Suez Canal, and Panama Canal—all facing disruptions. VLCCs (Very Large Crude Carriers, carrying ~2 million barrels each) cannot fully load through the Suez Canal, and the Panama Canal is experiencing drought conditions. These disruptions add months to shipping times and significantly impact global energy markets.
3. China’s Strategic Positioning & U.S. Energy Policy
The hosts explore China’s role in global energy dynamics, including its partnership with Iran and the Houthis, and how President Trump’s sanctions on Venezuelan and Iranian oil are affecting global supply. There’s discussion of a Chinese military base in Yemen and how U.S. strategic bombing targets infrastructure supplying Iran.
4. LNG Supply Crisis & Europe’s Energy Dependency
Europe faces an LNG supply crisis, forcing buyers toward coal and natural gas. The podcast highlights the hypocrisy of European nations sanctioning Russia while importing 90% of Russia’s LNG. Germany’s decision to blow up coal plants and Japan’s mothballing of nuclear facilities are criticized as short-sighted energy policy.
5. U.S. Natural Gas as the Future
The U.S. is positioned as the “Saudi Arabia of natural gas” and is exporting record amounts to Europe. The podcast emphasizes natural gas as a critical energy source and advocates for expanded infrastructure and production.
6. Grid Reliability & Energy Mix Reality
Using Texas ERCOT as an example, the discussion shows that despite renewable energy investments, fossil fuels remain essential. Natural gas provided 62% of grid power, wind 25%, and solar dropped to zero at night. The grid required battery storage to prevent blackouts, demonstrating the unreliability of intermittent renewables.
7. Global Energy Statistics
Key data points: 86% of the world’s energy still comes from fossil fuels (gasoline, diesel, transportation), and 57% of global electricity is generated from fossil fuels. This underscores that the energy transition is actually an “energy addition,” not a replacement.
8. Manufacturing Shift from Canada to the U.S.
A KPMG survey shows 42% of Canadian manufacturers have moved or are moving production to the United States, driven by pro-business U.S. policies and concerns about supply chain dependency on China.
9. Corporate Earnings & Energy Sector Performance
GE Vernova reported strong Q2 2026 earnings ($11 billion, up 22%), with natural gas turbines sold out for five years. Tesla’s Q2 earnings showed record deliveries but profit concerns due to AI investments.
10. Oil & Gas Investment Opportunities
We conclude with a discussion of oil and gas as solid investment portfolio additions, offering monthly revenue, tax deductions, and long-term returns compared to renewables, which have years before generating returns.
Here are the links to the key stories:
The First Story out of the block is from RT’s The Crude Truth Substack.
1.Brent at $100 and U.S. Refinery Utilization at 96%: What This Means for Consumers and Investors
3.Greece Exposes the Hypocrisy and Limits of Europe’s Russia Energy Sanctions
With the EU importing 90% of Russian LNG this year, and Qatar not shipping, I am not sure that they will be able to fill their tanks.
4.Mark P. Mills Covers the Myth of an Energy Transition
6.GE Vernova Raises 2026 Outlook on Surging AI-Driven Power Demand While Advancing Venezuela
For our subscribers in Blue States, the Canada story is critical. It is death by manufacturing leaving due to Net Zero, Carbon Policies, and High-energy policies. Canada is flush with natural resources, and this should not be happening to them.
The Blue States are doing the same policies and killing jobs and growth.
Thanks again to RT for stopping by the Energy News Beat Stand Up. Also thanks to all of our great patrons, subscribers, and sponsors!
A shout-out to Steve Reese and the Reese Energy Consulting group for sponsoring the Podcast.
https://reeseenergyconsulting.com/.
Data2 if you have any business systems, can you trust A? Well, they have the patent on validation. . https://data2.zoholandingpage.com/energy
And we have WellDatabase rolling in as a new sponsor.