Daily Energy Standup Episode #103 – Nuclear power ending in Germany – Colorado looking to ban oil and gas by 2030 – Texas steps up to stablize the grid

Dive Brief: The Texas Senate on Wednesday approved a package of energy reforms including a $10 billion “energy insurance program” that aims to shore up grid reliability through development of a fleet of new gas-fired […]

 

Highlights of the Podcast

00:00 – Intro
03:15 – Now Colorado pushing to ban oil and gas permitting by 2030
08:33 – Europe’s energy troubles continue hydro and nuclear output declining.
11:31 – Germany ends nuclear energy era as last reactors power down
13:03 – The Biden administration is once again tightening the rules on vehicle emissions.
16:23 – Texas Senate passes a $10 billion plan to develop 10,000 megawatts of gas fired insurance capacity
18:47 – California’s last nuclear power plant, Diablo Canyon, faces closure against a lawsuit.
20:56 – Market Updates
22:54 – Outro

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

Michael Tanner: [00:00:13] What is going on. Everybody, Welcome into another edition of the Daily Energy News Beat Stand Up here on this gorgeous Monday, April 17th, 2023. As always, I’m your humble correspondent, Michael Tanner, coming to you from an undisclosed location here in Dallas, Texas, joined by the executive producer of the show, the purveyor of the show and the director and publisher of the world’s greatest website, EnergyNewsBeat.com Stuart Turley, My man. How we doing today? [00:00:36][22.5]

Stuart Turley: [00:00:37] It’s a beautiful day in the neighborhood. Got to love. [00:00:38][1.6]

Michael Tanner: [00:00:38] It. Yeah, I love the old school mike you look like you’re back in a control room. [00:00:42][3.4]

Stuart Turley: [00:00:42] Hey, I borrowed it from Tomcat, so, you know, you got to love it when you can borrow some from Tomcat. [00:00:48][5.3]

Michael Tanner: [00:00:49] Absolutely! We have an absolutely wild show speaking of it, Stu, you got some great articles lined up. First up on the menu Now Colorado pushing to ban oil and gas permitting by 2023. Wyoming lawmakers call it ignorant we can only guess where Stu will fall on this, but this is really sad this is, in my opinion, the greatest state in the union Colorado is coming to the stool, cover it all, but it’s really sad what’s going on, unfortunately. [00:01:14][25.6]

Michael Tanner: [00:01:15] Next up, Europe’s energy troubles continue hydro and nuclear output declining. Dun, dun, dun. If you listen to the show, you know, we’re big fans of hydro and nuclear, so this is not good news. [00:01:25][10.5]

Michael Tanner: [00:01:26] Next, Germany ends nuclear energy era as last reactors power down. Dun dun dun. I mean, even if it couldn’t get any more bleak in Europe, they’re shutting down their only reliable power, their geniuses over there. [00:01:40][14.3]

Michael Tanner: [00:01:41] Next up, guys, The Biden administration once again is tightening rules on vehicle emissions. We covered this a little bit on our last show on Thursday it’s absolutely insane Stu willl cover what’s going on in the EV markets. [00:01:53][12.4]

Michael Tanner: [00:01:53] Next. Texas Senate passes 10 billion plan to develop 10,000 megawatts of gas fired insurance capacity. I wonder why you need that Stu will cover what this what this new bill plans to actually do. And finally, California’s last nuclear power plant, Diablo Canyon, faces closure against a lawsuit. This has been such an ongoing battle between activists and the Diablo Canyon And Governor Newsom, it was at one point approved to go offline. And then Newsom actually came in and saved in what seemed like some natural decent policy for him but now it faces denial again. Stu will cover all that and a bag of chips. [00:02:30][36.6]

Michael Tanner: [00:02:30] He’ll kick it over to me. I’ll quickly cover how the finance markets ended on the week specifically for oil and gas, and give a few tidbits about the week. And then we’ll let you get on here get out of your way before I kick it back over to Stu. [00:02:42][11.8]

Michael Tanner: [00:02:42] Again, guys all the articles were about to cover a courtesy of the world’s greatest website www.EnergyNewsBeat.com The best place for all of your energy news Stu and the team does a great job of curating all of these articles and making sure that everything you need is there. Dashboard.EnergyNewsBeat.com our data and news combined get it while you still can. I’m out of breath though Stu where do you want to begin? [00:03:05][23.0]

Stuart Turley: [00:03:06] Hey, Michael, thanks for the intro and let’s get ready to rumble. You and I are very partial to Colorado, eh? I love Colorado but Now Colorado pushing to ban oil and gas permitting by 2030. This article came up out of the Cowboy State daily out of Wyoming. They are a fantastic reporting newspaper. Please reach out and follow them. [00:03:31][25.6]

Stuart Turley: [00:03:32] Let me read the byline, Colorado anti fossil fuel groups are collecting signatures for a petition to ban all oil and gas permitting in the state. Supporters say that the measure will protect Colorado’s environment, but opponents say it reflects ignorance of the value of oil and gas bring to the world, this is just nuts!!! [00:03:54][22.0]

Stuart Turley: [00:03:55] And there’s an publisher’s note here let me read this to you, Michael. This is a perfect example of people fleeing California due to the high energy cost and then bringing their failed energy policies and voting practices with them to destroy states rather than work with people they’re like locusts, destroying everything in their path. When you move to Texas, please leave your voting policies behind. Texas is already seeing this play out in Austin. Oh, I wonder who wrote that. [00:04:23][28.1]

Michael Tanner: [00:04:24] That’s yeah, that seems like something you would write. Oh, it’s the publishers note. Oh, wait. [00:04:30][6.4]

Stuart Turley: [00:04:33] That would be me so now, look, this is absolutely nuts Michael, your efforts and your software development helped oil and gas operators in Colorado goes through the legislative required requirements, which are not All requirements or regulations are bad. [00:04:56][22.8]

Stuart Turley: [00:04:56] Why? Regulations are good. Don’t get me started on good versus bad regulations but your efforts help get some of the biggest operators drilling permits when nobody could even understand what the rules are. Michael what are your thoughts? You got some real experience in Colorado regulations. [00:05:15][18.9]

Michael Tanner: [00:05:16] Yeah, I think you’ve seen a shift in Colorado to a very onerous permitting process as Stu mentioned. We got to firsthand work on a project like this building, really an application that helped oil and gas operators break down new the S.B. 150 rule, which was different than what’s going on right now. I don’t know if it was spe wanted it was it was was one of those SB something maybe SB 149. [00:05:42][25.4]

Michael Tanner: [00:05:43] But basically the idea was if you’re going to permit on specific locations, you need to decide whether or not these attributes of the community around are hit. And if they’re hit, you have to do a bunch of things this application ruled everything up. [00:05:56][13.7]

Michael Tanner: [00:05:57] And what really that law and not necessarily our application, but what that law forced operators to do is move into this what it’s called comprehensive area plans where instead of getting a permit for one Well, because the permit process is so odorous for one, Well, you might as well permit an entire area at one time in order so that you can do some sort of field level planning. [00:06:19][22.9]

Michael Tanner: [00:06:20] So what everybody in Colorado has shifted to is they’re called caps you see these press releases from companies like PDC or press releases from Civitas, and they said, What are they doing? We just got our cap approved or whatever the name of their cap caps a comprehensive area plan. It’s easier to get, you know, 60 locations per minute up in one batch because that process is so onerous because you have to do it on one well, and it’s the same as one Well. So that’s what you’ve already moved to in Colorado. [00:06:48][27.9]

Michael Tanner: [00:06:48] What this law is going to move. It is move it one step forward. Forward and basically it’s going to be very tough to get a permit raised. I mean, what’s already happening in Colorado is consolidation. You’ve got two major players there, you are three major players, you’ve got Civitas, you have PDC, you have Oxy. Something’s going to happen with Civitas and PDC I don’t know. Something will happen at some point. I’m I’m not saying it’s going to happen tomorrow it’s going to, but in six months. [00:07:13][24.6]

Michael Tanner: [00:07:13] They will combine, you will end up seeing Oxy exit Colorado the question is, is it to that combined entity or is it to one of the is it to somebody else? I mean, I’ve heard the asking price for oxy’s Colorado assets. It’s not cheap. I don’t think PDC or Civitas could afford that. Now, could they afford that together with some maybe another third party? I don’t know. But point is, you’re going to see consolidation. [00:07:34][20.6]

Michael Tanner: [00:07:35] And I think in ten years too, what you’re going to see is one dominant oil and gas operator in Colorado who has owned who’s the only company that has an ability to actually get anything approved and permitted. You’ll see. You know, and that’s where I think this law will lead us all. [00:07:49][14.5]

Stuart Turley: [00:07:49] I, I think it’s all end to a disaster and what happens is we’ll go through all of that later. But let’s all set the tone that you can only legislate stupid so much and we’ll go into the next one. [00:08:04][15.2]

Michael Tanner: [00:08:05] So yeah, I mean I love that state, but it’s it is unfortunate it’s happening. [00:08:11][6.1]

Stuart Turley: [00:08:12] Yeah. You notice both of us are in Texas okay, let’s go to the next one [00:08:16][3.9]

Michael Tanner: [00:08:16] Notice that we used to be undisclosed location in Denver then you say Dallas. [00:08:21][4.8]

Stuart Turley: [00:08:22] I’m in an undisclosed location here in Abilene, Texas. So, you know, when you sit back and take a look, let’s go to the next one we’re going to go across the pond and Europe’s energy troubles continue hydro and nuclear output declining. [00:08:38][16.0]

Stuart Turley: [00:08:39] Michael, Norway’s got some of the best hydro in them in the world and they are having some serious droughts but let’s come on down in here. Last year, Europe was on the brink of an energy breakdown as Russia gas flows dried up and most of Europe double down on renewable energy. [00:08:59][19.9]

Stuart Turley: [00:08:59] Well, renewable energy failed when the wind stopped blowing and hydro hit a drought. Oops, They threatened major trade routes in the Rhine you know the Rhine couldn’t even get refined diesel back and up and down the Rhine and that’s a major thoroughfare. [00:09:17][18.2]

Michael Tanner: [00:09:19] Couse It was so low? [00:09:19][0.5]

Stuart Turley: [00:09:20] It was so low there were barges that couldn’t even get up and down the Rhine, Spain hydropower output dropped by almost half. Michael That was have and it might repeat again. Now, Europe managed to boost its wind and solar capacity by 9%, so if you boosted by 9% but you spend trillions and you cause inflation, what was that 9% worth it to you? [00:09:48][27.8]

Michael Tanner: [00:09:49] I mean, it’s obvious that models that that sources and uses isn’t going to cancel each other out. I mean, I think the other thing that’s unfortunate is what you’re seeing is, you know, if you read down more in the article. [00:10:00][10.8]

Michael Tanner: [00:10:01] France suddenly found I’m reading directly Michael French suddenly found that years of under-investment in maintenance on nuclear facilities would have consequences emergency reactors shut down for repairs and maintenance that lasted longer than expected. [00:10:14][12.5]

Michael Tanner: [00:10:14] So years of under of underinvested in maintenance while you win in the short term by not spending the money in the long term when you need that baseload energy again. They would give anything to have those reactors up and running right now, but they can’t because they spent years of neglect because we don’t need it. And virtue signaling, you know, likes Stu said we’re going to throw trillions at wind farms in order to get 9% growth but now there’s a drought. So we’re in trouble. [00:10:38][24.3]

Stuart Turley: [00:10:39] You know, Michael, France has about a ballpark of 51 reactors. Of the 51 reactors at 25% excuse me, 50% were working in 2021. The article says that they are producing 17.5% less than the average for 2021. [00:10:59][19.7]

Stuart Turley: [00:11:00] So, I mean, that’s I mean, that is just nuts that’s down 23. So you’re almost down 25% of their nuclear capabilities based off of lack of maintenance dollars. You and I have talked about this ad nauseum over the past year. [00:11:16][15.9]

Michael Tanner: [00:11:17] France is supposed to talk about an ad nauseum and it makes me nauseous. What’s next? [00:11:21][4.4]

Stuart Turley: [00:11:22] Okay. Yeah. Let me go get a truffle while we they’re not going to be able to even afford to cook any of that. Okay, let’s go around the corner. All right, Michael. Germany end the nuclear energy era, as the reactors shut down on yesterday, tax day for the U.S., April 15th and the last of Germany’s reactors shut down. [00:11:46][24.2]

Stuart Turley: [00:11:46] These were supposed to shut down last year and Greenpeace was really upset that they extended them to get them through winter. And Greenpeace is at the heart of the anti-nuclear movement, organized by a cell, a party Brandenburg Gate, To mark the occasion. [00:12:06][19.9]

Michael Tanner: [00:12:07] Just cracks me up. Greenpeace wanted to shut down nuclear, but they wanted to keep it on because they decided it was more important to be hot during winter. I mean, it is crazy. Greenpeace wants people to freeze to death. [00:12:18][11.3]

Stuart Turley: [00:12:19] They don’t care they’re funded by Soros. I don’t know. Anyway, it it’s nuclear we’re not going to get to it let’s leave the whether or not CO2 is is off the table for this discussion. We got to get to carbon net zero. Great. If we’re going to get there, we need natural gas and nuclear. Without those two, we’re not going to be able to use wind, solar stored you can’t use any of the others. [00:12:43][23.9]

Stuart Turley: [00:12:43] So anyway. It will be a very moving moment for colleagues to shut down the power plant for the last time. Oh, it’ll be moving when they start paying their bills. All right. We’re going to come back around you know, we’re coming back over the pond. We started in Colorado we went over the pond and I got a method to the madness here. [00:13:03][19.9]

Stuart Turley: [00:13:03] The Biden administration is once again tightening the rules on vehicle emissions. Michael, this is you can tell that our listeners are kind of seeing how we’re weaving this story together. The White House stated cars and trucks manufacturer made it clear the future of transportation is electric the market is moving. No, that’s not true. [00:13:27][23.4]

Stuart Turley: [00:13:28] If you can imagine the White House being truthful about something no, they’re reacting to regulatory issues and the American people just watch. The American people don’t want a fleet of electronic vehicles, electric vehicles, when they’re not ready yet. [00:13:50][21.5]

Stuart Turley: [00:13:51] Hey, let’s leave the argument of whether or not we need to go electric or not they’re not technologically ready yet because the grid’s not ready yet. So, Will Michael, I’m going to ask you this Will the American consumer want to give up all vehicles, no trucks, no cars, nothing but a bicycle and then public transportation? [00:14:16][25.5]

Michael Tanner: [00:14:18] But don’t worry as a car enthusiast and self-proclaimed car guy, President Biden is seizing the moment, according to the White House statement. He’s seizing the moment. Stu. Why be scared? [00:14:30][11.8]

Stuart Turley: [00:14:31] Anything the man mumbles, I mean, talks about. I mean, he’s got to the United States. [00:14:35][4.5]

Michael Tanner: [00:14:36] Biden hasn’t driven a car in 40 years. [00:14:38][2.1]

Stuart Turley: [00:14:39] I mean, he did. Michael. [00:14:40][1.4]

Michael Tanner: [00:14:41] Is back. I wouldn’t trust him behind the wheel of a car more than I trust Sandy, who’s sleeping right behind me. [00:14:47][6.4]

Stuart Turley: [00:14:48] No, Michael. Then when you sit back and think about it, he did move the car to get all of those documents in the garage. So. You know,. [00:14:56][8.1]

Michael Tanner: [00:14:56] Almost tripped over. I’ll say this Stu. I covered this on my solo show on Thursday we actually went through this article or someone similar. its 67% of all new vehicle purchases have to be electric by 2032 that’s an absolutely insane standard. [00:15:10][13.9]

Michael Tanner: [00:15:11] Last year, in 2022, we had 9% EV sales. Now it was nine or 6%, regardless of what it is. That’s in insanely sure it’s growing exponentially. But then we get into the critical minerals discussion of Do we have enough lithium, Do we have enough cobalt, Do we have enough metals to actually make all of these things? It’s going to be interesting. And then can the grid sustain it? That was the other thing that the article that we I talked about specifically Stu was mentioning. Okay let’s say we even get there can the grid sustain it? [00:15:44][33.3]

Stuart Turley: [00:15:45] Not right now. [00:15:45][0.2]

Michael Tanner: [00:15:45] Don’t worry self-proclaimed car enthusiast and car guy, President Joe Biden he seezing the moment,. [00:15:52][6.1]

Stuart Turley: [00:15:52] Hey he can also describe the electric vehicle movement in one word as Uber. [00:15:59][7.0]

Michael Tanner: [00:16:01] Well said. What’s next? [00:16:02][1.2]

Stuart Turley: [00:16:03] Don’t ask me to repeat because I have no idea what I just said. I probably ordered a troglodyte. Okay, let’s go over here to the now Texas [00:16:10][7.0]

Michael Tanner: [00:16:11] Where you actually just sent more weapons to Ukraine. [00:16:13][2.4]

Stuart Turley: [00:16:16] Okay. Don’t get me started. Okay. Texas. Michael, we both are in undisclosed locations here in Texas. Texas Senate passes a $10 billion plan to develop 10,000 megawatts of gas fired insurance capacity. Michael, I don’t really need to go into too much on this article. [00:16:36][19.8]

Stuart Turley: [00:16:37] The Texas State on Wednesday approved a package for energy reforms, including a 10 billion energy insurance program, aim to store up grid reliability through development of a fleet of new gas fired power plants capable of providing 10,000 megawatts. Michael, this was Senate Bill 6. However, here’s the cool thing. This is a breath of sanity in the world of goofiness. What are your thoughts? [00:17:06][29.4]

Michael Tanner: [00:17:07] Yeah, I mean, I do find it funny the highlight Berkshire Hathaway Energy supports this legislation. I wonder why I wonder why they support a $10 billion energy insurance program to build infrastructure. I mean, it is it is funny. I mean, whoever wrote it. [00:17:23][16.3]

Michael Tanner: [00:17:24] So here’s my thing. I think there are worse ways to spend $10 billion. I think this doesn’t necessarily solve the problem that Texas has with the grid, but it’s a step in the right direction. They’re going to do it again. The goal is. [00:17:38][13.9]

Stuart Turley: [00:17:38] The Greenmorn [00:17:38][0.0]

Michael Tanner: [00:17:38] Dispatchable gas fired power plants if this was rolling out into if they were trying to pitch me dispatchable wind, I’d be skeptical. So I’ll take it. Here. Do I think this is going to solve the grid problem? No, I don’t. [00:17:51][12.5]

Stuart Turley: [00:17:52] Oh, Michael. Hey, I’ll tell you what this is fabulous because Texas has some of the largest wind and solar capacity we have for. We have two nuclear reactor locations. We have four reactors in those two locations. And ERCOT is exactly what we need and we now have more storage coming online. I like where Texas is going in using all forms of energy, trying to drive the price down. I would think it’s fabulous. [00:18:19][27.3]

Michael Tanner: [00:18:20] Yeah, I would. I wouldn’t even trust Joe Biden on the ERCOT Commission board. [00:18:24][3.3]

Stuart Turley: [00:18:24] I don’t trust a politician most of the politicians as far as you could throw. Okay. [00:18:29][5.1]

Michael Tanner: [00:18:30] It’s not very far. What’s next? More nuclear, it looks like. [00:18:33][2.7]

Stuart Turley: [00:18:33] Oh, yeah. Okay. You know, I have been very fairly critical. All right. Really critical of Governor Newsom. I personally think he’s a squirrel, but he actually did do a good thing and he delayed shutting down of California’s last nuclear power plant, Diablo. [00:18:53][19.4]

Stuart Turley: [00:18:54] Here’s the problem. As 10% of California’s power and you’re about to shut it down. He he gets a defibrillator on it. He gains, just as you mentioned, in the start of the show, and then he gets it fired back up. And now a lawsuit from these I’m going to use the word and this is a family friendly show, Chowder Heads. [00:19:18][24.0]

Stuart Turley: [00:19:18] They’re trying to shut it down again, and they don’t realize that it’s already less carbon than a wind farm or a solar farm or anything else. So anyway, we’re taking PG to court to make sure California’s last remaining nuclear plant is retired. We won’t stop until the aging destructive canyon is closed for good. Huh? [00:19:43][24.3]

Michael Tanner: [00:19:44] Yeah. I mean, blind mice find shoes once in a while. All I took out of this segment is that you’re voting for Gavin Newsom for president. [00:19:51][7.2]

Stuart Turley: [00:19:52] I’m sorry you broke up totally and I heard you trying to imitate. I heard you imitating our beloved President Biden again, describing his reelection run in one word, buddy. [00:20:06][13.8]

Michael Tanner: [00:20:08] That’s probably the most cogent thing he’s said in a couple of weeks. Oh. [00:20:11][3.3]

Stuart Turley: [00:20:12] I’m going to run. [00:20:13][1.3]

Michael Tanner: [00:20:13] I mean, I think it’s clear if you if I had to gamble, if I could buy Diablo Canyon futures, I would. I think they’re going to. I think they’re going to. I think it’s going to continually be pushed back. I think these lawsuits are only for show because I think California, deep down, knows that these people actually making the decisions that we can’t just shut off 10% of all electric. [00:20:33][19.5]

Stuart Turley: [00:20:33] Hang On Cramer’s calling in, Hey, what are you, mad money? Buy Buy Buy Buy. Oh, he says he wants to sell. So, I mean, you got. [00:20:42][8.5]

Michael Tanner: [00:20:42] Oh, we’re buying up on the shares, baby. Cramer Selling. I’m buying. That’s. That’s your market Tip of the day, folks, And we don’t give out investment advice. What else you got? [00:20:54][11.6]

Stuart Turley: [00:20:54] I’m wiped out. I’m ready to go. [00:20:56][1.4]

Michael Tanner: [00:20:56] Well, I mean, there’s not much on the finance side, guys markets on the on the oil and gas side. Look to open a little bit positively. 8252 is what we settled at on crude oil. 8705 for Brant. Looks like we’ll open sometime at some point around 80 to 68. [00:21:12][15.5]

Michael Tanner: [00:21:12] It looks to be a fairly positive week for oil and gas you know, we can sustain above that 80 mark. I know a lot of people are hoping this is the climb to 100. I’m not I don’t want to say I’m doubtful. I’m just very happy we’re above 80. It solves a lot of problems for a lot of these mid-sized producers. [00:21:27][14.5]

Michael Tanner: [00:21:27] I think the other interesting thing to point out is we are seeing drilling rigs fall as well. You know, and this is, you know, rigs always our six week lag behind oil prices. You know, I mean, this is a response to the 65, $60 oil strip price. [00:21:40][12.1]

Michael Tanner: [00:21:40] And now all of a sudden we’re seeing $82 rigs might get fired back up again, especially on that oil side. Baker Hughes released that. Drilling rigs dropped by three this week after falling four from last week. Total rig count fell to 457, which is still 55 rigs higher than the rig count was this time in 2022, but lower, but still 323 rigs lower than 2019. So that kind of give you a comparison there. No Natural gas rigs. Obviously, this just this is, you know, all the growth, quote unquote, that we’re seeing is coming from the oil side. [00:22:11][31.3]

Michael Tanner: [00:22:12] Natural gas outlook doesn’t look good as we roll into injection season. I think we’ll go below two at some point. It’s a matter of if. It’s just a matter of when. I don’t think I’ll be getting that job at Goldman Sachs any time soon. So you’re stuck with me through the summer. But trust me, I will be on the bull case soon what do you got Stu thats all I’ve got. [00:22:32][19.8]

Stuart Turley: [00:22:33] It’s going to be a crazy week buckle up. [00:22:34][1.3]

Michael Tanner: [00:22:35] Yes, There’s the buckle up, guys this is going to be an interesting week we will keep you up to speed. We appreciate you guys checking us out for Stuart Turkey I’m Michael Tanner. Guys, we’ll see you tomorrow. Happy Monday, unfortunately. [00:22:35][0.0]