Daily Standup Top Stories
Administration backs new gas spending in G-7 talks – with caveats
Energy and environment ministers of the Group of Seven major industrial nations pledged yesterday to speed up the shift to renewable energy. But they left the door open to new investments in natural gas – and the Biden administration […]
US ready to lend Poland $4 billion for nuclear energy plan
WARSAW, Poland (AP) — A project to develop small nuclear power reactors in Poland is moving forward, with Polish energy company Orlen and two U.S. government financial institutions signing an agreement Monday. Poland is turning […]
Russia Is Losing On The Battlefield And Energy Markets While U.S. LNG Producers Are Winning
Russia is not just losing on the battlefield, it’s also getting its butt kicked in the energy marketplace. The United States is the primary champion, eating into Russian oil and natural gas sales — markets […]
G7 energy, environment leaders haggle over climate strategy
SAPPORO, Japan (AP) — Energy and environment ministers of the Group of Seven wealthy nations met Saturday in northern Japan, seeking to reconcile the world’s heavy reliance on fossil fuels with the urgency of ending […]
Coal inventory, imports to avert crisis: Mahagenco
NASHIK: The Maharashtra State Power Generation Company (Makarenko) has created a coal inventory and floated import tenders to overcome the possible decline in coal supply to its seven thermal power stations during the April-June period. The plan aims at averting coal […]
Highlights of the Podcast
00:00 – Intro
03:05 – Administration backs new gas spending in G7 with caveats.
06:39 – G7 Energy Environmental haggle over climate strategy
07:55 – U.S. ready to lend Poland 4 billion for a nuclear energy plant.
09:45 – Russia’s losing on the battlefield and energy markets while the U.S. LNG producers are winning.
12:16 – China seeks to expand sources of stable gas supplies
14:08 – Coal inventory Imports to Avert Crisis in Mahogany.
16:00 – Market Updates
17:15 – Outro
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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 is going on, everybody? Welcome into another edition of the Daily Energy News Beat Stand up here on this gorgeous April 18th, 2023. As always, I’m your humble correspondent, Michael Taylor, coming to you from an undisclosed location here in Dallas, Texas, joined by executive producer of the show, the purveyor of the show and the director, publisher of the world’s greatest website, EnergyNewsBeat.com, Stuart Turley, my man, how are we doing today? [00:00:37][22.6]
Speaker 2: [00:00:37] It’s a beautiful day in the neighborhood in an undisclosed location here in Abilene. [00:00:41][3.4]
Michael Tanner: [00:00:42] Yeah, No. YELLIN You called me on my on my way home from the office. They said, get ready. We have a lot of stories. And boy, do we have a fat menu spot up, guys. So hang tight. It’s going to be a great show. First up on said menu, Administration backs new gas Spending in G7 talks. I love this, though, with caveats. So Stu will cover what’s going on with the G-7 talks and specifically those caveats. [00:01:06][24.1]
Michael Tanner: [00:01:06] Next up, US ready to lend Poland 4 billion for nuclear energy plant checks keep coming. I think I should in I’m in line for a check from the US government so as to cover the money that we’re sending over to Poland. [00:01:19][12.9]
Michael Tanner: [00:01:20] Next up, Russia is losing on the battlefield in energy markets while U.S. LNG producers are winning. Can’t say I’m too sad about this one, but still will cover what’s going on geopolitically with LNG and Russia. [00:01:32][11.9]
Michael Tanner: [00:01:32] Next up, China seeks to expand sources of stable gas supplies. Dun dun dun. China’s always looming in this. Next up, G7 energy and environmental leaders haggle over climate strategy in one of the most non predictable stories of all time Stu will cover what’s coming out of Sapporo and where some of the people are meeting in the G7 ahead of it is in it’s in Sapporo and then they’re also meeting in Hiroshima so that’ll be interesting. [00:02:00][27.6]
Michael Tanner: [00:02:01] But there are a lot of talk coming out of there Stu he will have it all and break it down. And then finally, The coal inventory in India is improving or is increasing drastically. They’re importing to avert a crisis. This is a great article out of the state of MOCA. Joe The State Power Generation Company is quite literally importing as much coal as they can get their hands on in order to subvert US. Supply jobs will still will cover that he’ll kick it over to me. [00:02:25][24.6]
Michael Tanner: [00:02:26] I’ll quickly cover the drop in oil prices, the rise in natural gas prices, and anything else to expect in the finance game. We’ll let you get out of here, guys. But first, before we get back to Stu, as always, all the stories we are about to cover are courtesy of the world’s greatest website EnergyNewsBeat.com the best place for all your energy news. [00:02:43][17.7]
Michael Tanner: [00:02:44] To hit the description below you’ll be able to see all the articles, links and timestamps. We appreciate our tip for keeping up to speed on that Dashboard.EnergyNewsBeat.com the best place for all of your data and news combined we are hard at work on V2 get it while you still can. I’m out of breath though Stu. Where do you want to be? We’ve got a long show lined up. Got a long show? [00:03:03][19.1]
Stuart Turley: [00:03:04] No. Yeah. Let’s go to the Administration backs new gas spending in G7 with caveats. And we’re going to tie that also with the G7 talks here in just a second as well. So I got two of them on the G7 and the G7 is, you know, they’re the seven wealthiest countries in the world meeting in Japan. And since they’re meeting in Hiroshima, maybe we could get Senator Kerry or Czar Kerry to glow when he gets done after being in. Maybe we can get him to go to Nagasaki as well. [00:03:41][37.4]
Michael Tanner: [00:03:42] We’ll just give you guys an idea. The G7 is Canada, France, Germany, Italy, Japan and the United Kingdom and the United States as well as the EU. So I don’t know what that means. [00:03:52][9.2]
Stuart Turley: [00:03:53] That would be all of Europe. [00:03:53][0.7]
Michael Tanner: [00:03:54] So why is it the G7? So it’s an informal grouping of the world’s most of the seven of the world’s most advanced economies. So you’re right, it’s not just countries. [00:04:04][9.5]
Stuart Turley: [00:04:05] Right? So let’s kind of like go in here and so the biggest thing in here is the final outcome, which puts some big caveats on new investment in gas and deletes Japan’s parole proposal language, which wouldn’t have happened if the US had opposed. [00:04:24][19.1]
Stuart Turley: [00:04:26] They’re really putting it you and I talked about this two years ago or, you know, when we recognized that gas was going to be needed a year and a half ago and the document says gas can be developed as long as it’s acceptable within our climate goals but science is very clear. No new investments in gas can be compatible with our climate goals. [00:04:49][22.8]
Stuart Turley: [00:04:50] In other words, these chatter heads understand that they got to have gas and nuclear in order to get there. They’re saying they need it. They’re saying that they also need to spend the money. But now some of them are still saying we ain’t spending the money. [00:05:03][13.8]
Michael Tanner: [00:05:05] Well, you pointed this out two years ago during COP 26 and mentioned that there was trouble. Things are calling natural gas clean. Now, that’s turned out to be true. We saw that in COP 27. That’s going to be a huge part of COP 28 coming up. And this falls right in line with it. You are unfortunately right about this you take the victory lap. [00:05:28][23.5]
Stuart Turley: [00:05:30] Yep Twice now. So that’s the only two times that I’ve been right since we’ve been doing this in the G7. When you take a look at the other article we have, Jennifer Granholm said in an interview Friday, we expect those countries see this done and the nations that have the wherewithal to make these investments to be first out, give those hope to others to be able to do it as that technology lowers the cost. [00:05:58][28.1]
Stuart Turley: [00:05:59] I really wish they would get a crayon because their numbers don’t match as the technology lowers the cost. The technology is not there the supply chain is costing more just like in drilling oil wells, I don’t want to use the word doubling, but or, you know, it’s almost doubled. And now you see there is absolutely nothing cheaper about solar or wind. And they keep saying driving in EV is cheaper. I really wish we’d hand them a crayon for Christmas. [00:06:33][33.8]
Michael Tanner: [00:06:34] Yeah. I mean, I think that was I was going to point that out specifically in this second article title that G7 Energy Environmental haggle over climate strategy is a bunch of gobbledygook. But exactly what you said in there, Senator Daniel Craig came out and said, where’s the actual quote here? Where is it here? It’s I can’t find any. [00:06:53][19.3]
Michael Tanner: [00:06:53] But basically, you’re exactly right. It’s Graham was like, yeah, we all know it’s cheaper to have an EV car than a gasoline car. And I might want now, you know, only when you’re in power, only when you guys take power, which is in charge, your who is above me for better or worse, it’s the deep, dark secret. People in oil and gas should love Democratic leadership because they restrict oil and gas production by regulators prices go up. What does Trump do? Turn on the taps water prices go, go into the tank. [00:07:25][31.1]
Michael Tanner: [00:07:25] I mean, if you graph Republican president, Democratic or like presidents and their affiliation and then overlay crude oil prices, it’s insane I’ve seen it done before. And there’s a strong correlation between Democratic leadership and high oil and gas prices it’s hilarious. [00:07:42][16.7]
Stuart Turley: [00:07:43] Well, the Biden administration wants the higher oil prices to drive everybody to renewable energy. [00:07:50][7.1]
Michael Tanner: [00:07:50] Good point that’s a good point that’s a solid. [00:07:52][2.1]
Stuart Turley: [00:07:54] Yeah and let’s go to the next one. U.S. ready to lend Poland 4 billion for a nuclear energy plant. I like that. The fact that it’s a loan or maybe even a land, we may stand some chance of getting the money back to France. [00:08:10][16.5]
Michael Tanner: [00:08:11] You’re very optimistic. [00:08:12][0.5]
Stuart Turley: [00:08:13] That France still owes us a lot of money from World War Two, and I doubt we ever see a dime project to develop small nuclear reactors in Poland is moving forward. Polish energy company Orlen and two government financial institutions signing an agreement Monday. [00:08:30][17.4]
Stuart Turley: [00:08:31] I find this absolutely refreshing. We absolutely have to sell our technology and our leadership in nuclear capabilities to countries to help get to carbon net zero, to help stop the BRICS and roads from China and the influence. We’ve taken such a geopolitical black eye that we really need to do something right and I do like this. [00:09:00][28.8]
Michael Tanner: [00:09:01] Yeah, I mean, it’s probably the first time you’re going to cease to pump that we’re shipping money overseas, so we better clip this, guys, and make sure that we save this. [00:09:09][8.3]
Stuart Turley: [00:09:10] Yeah, it’ll be saved. But let’s put a caveat on there. You know, just like the G7 is putting a caveat on here, I’m going to put a caveat and say I’m not expecting their money back, you know, but at least it’s, quote unquote, loan. I think that you will see less graft around Poland than you will Ukraine. There is in the. [00:09:30][19.9]
Michael Tanner: [00:09:30] Fact that it’s nuclear. I’m much more for I, I just if it was wind farms or solar, I’d be a lot more skeptical. [00:09:35][5.6]
Stuart Turley: [00:09:36] You bet. Anyway,. [00:09:37][0.6]
Michael Tanner: [00:09:38] What’s Next? [00:09:39][0.1]
Stuart Turley: [00:09:39] Let’s go to Russia losing on the battlefield. But who is going? Russia’s losing on the battlefield and energy markets while the U.S. LNG producers are winning. Let’s see. Meanwhile, Europe uses 19% less gas by increasing demand and using energy efficient technologies and telling everybody to take shorter showers while also increasing its use of green energy. [00:10:05][26.0]
Stuart Turley: [00:10:05] This goes along with the Germans cutting out their last nukes saturday. And so the Germans shut down their last nukes on Saturday. They’re now talking about how they’re going to replace the natural gas. [00:10:21][15.3]
Stuart Turley: [00:10:21] This paragraph I find very interesting and we need to read it natural gas prices have moderated since the height of the war. In the United States, they’re slightly more than $2 per million BTUs, down from $6 in Europe. They’re about $14, down from 40, a number still high enough to encourage to go green. [00:10:43][22.1]
Stuart Turley: [00:10:44] The United States has seven LNG export terminals that could benefit Asia. All right, here’s a number that number of their down to about 14. That means the U.S., LNG companies, the juniors and and all of those are phenomenally well poised. [00:11:05][20.9]
Stuart Turley: [00:11:06] And they’re going to be in a bidding war on the demand that’s needed in Asia. So it’s actually really cool. But there crayon in this article, Michael. I got to really sharpen that crayon because they’re saying that it’s even even at the $14 LNG or natural gas market price, it’s cheaper to go to renewables. [00:11:28][21.9]
Michael Tanner: [00:11:29] That big red flag. I don’t buy that. [00:11:30][1.5]
Stuart Turley: [00:11:31] I don’t buy that. I’m sitting here kind of going, look, Germany, do you shut down if it was like California? California’s got 10% of the Diablo that we talked about yesterday that they’re trying to shut down. So let’s say they do shut down 10% of their power they’re not going to be able to make it up. So guess who’s going to get to pay for it? [00:11:49][18.5]
Michael Tanner: [00:11:50] The consumer, as always. [00:11:51][1.4]
Stuart Turley: [00:11:52] Yeah, Get it in the drive through. Let’s go to the next one here. China, this rolls right into that same story. Kazakhstan really sets it up for this, Michael. Six months ago. Do you remember when we were talking about when sanctions, maybe even eight months ago, sanctions were hitting Russia and there was a pipeline company. [00:12:15][23.4]
Stuart Turley: [00:12:16] China seeks to expand sources of stable gas supplies. The pipeline company was out of Kazakhstan and this was the company that Russia had employed in order to get around sanctions to build this pipeline to China. So this is going to be Russian gas going through Kazakhstan and after China. I just love it. I am more power to them. I hope China does this. It might mean that they actually build one less coal power plant. [00:12:50][34.2]
Michael Tanner: [00:12:51] Just kidding. Yeah. I mean, China is going to play the long game they understand that natural gas is going to be around here for a while. I’m not surprised they’re supporting this. We already know that. They’re you know, we know we knew 20 years ago they were shoring up lithium and cobalt mines in in in India or in in the Congo. I would not it’s not out of the question that they go and shore up a bunch of new international gas pipelines to secure their energy future because they’ve seen what the world did when Russia invaded Ukraine and using that as a playbook for what’s going to happen when they invade Taiwan. I said it when. [00:13:26][34.7]
Stuart Turley: [00:13:27] Oh, yeah. I think it’s going to be sooner than later. [00:13:29][2.4]
Michael Tanner: [00:13:31] Am I just going to one day walk outside and see the new fly and just? [00:13:34][2.8]
Stuart Turley: [00:13:35] Oh, I don’t know about that, but Warren Buffett just sold a bunch of his Taiwan stocks, his chip stocks. And I saw somebody on Twitter say today, well, we’re about two weeks away from the invasion. How much if we’re invaded? [00:13:54][19.0]
Michael Tanner: [00:13:55] From the invasion? I hope you’re wrong. [00:13:56][1.7]
Stuart Turley: [00:13:57] I hope it was a guy it was some random dude on Twitter. Okay. Let’s go to the next. [00:14:03][5.7]
Michael Tanner: [00:14:03] Worse than Substack. [00:14:03][0.2]
Stuart Turley: [00:14:04] Oh, yeah. It’s Twitter Substack. It’s all the same. Coal inventory Imports to Avert Crisis in Mahogany. When you sit back and think India and China and all of these countries are pumping, pumping coal as much as they possibly can. [00:14:25][20.4]
Stuart Turley: [00:14:26] The mahogany company moves to gain importance in view of the Union Power Ministry’s alert of possible decline in coal supply from 222 million tons to 201 million tons during the peak summer months. And what they are also talking about is the trains that are in here, Michael. Everybody goes around the country on trains. [00:14:48][22.7]
Stuart Turley: [00:14:49] And they’re not able to move the coal around because everybody’s you’ve seen all the pictures with people in India, everybody hanging on the train trains. Well, you know, you can’t sit on a coal train. You know, everybody’s so they’re limited on when they can. So instead of 2.2 million tons of coal there, they’re going at 2.8. Million tons of coal. And it’s just like China everybody is going back to coal because the renewable crayon does not work anyway. [00:15:21][31.4]
Michael Tanner: [00:15:21] India’s truly making coal great. Again, I love this stat at the bottom of the article. Of their current 8000 megawatt per day per day output, 65 to 7000 of that comes from seven thermal power stations. That’s code for coal. Ladies and gentlemen. [00:15:40][18.4]
Stuart Turley: [00:15:40] Yes, it is our plan you need to finish the last quote. Our plan will ensure there’s no shortage of coal in the state during peak summer months. [00:15:53][12.2]
Michael Tanner: [00:15:53] Long coal, baby long coal! [00:15:55][1.5]
Stuart Turley: [00:15:56] King Coal. Long way of cooking coal. It’s back to you now. [00:15:59][3.1]
Michael Tanner: [00:16:00] Yeah. Markets actually saw a little bit of a positive uptick. S&P was up about 3/10 of a percentage point. NASDAQ trades trades fairly similar to the open, up about a 10th of a percentage point. [00:16:11][10.9]
Michael Tanner: [00:16:12] Oil falls 8086 from the open, which is around 80, 80, which are 8250, mainly off a stronger dollar. Dollar index rose about a half a percentage point. Natural gas seeing a little bit of of of of influence from a little bit of a colder weather spell that hopefully should be enacted to come in later this week we’re seeing spot prices $2.28. [00:16:33][21.2]
Michael Tanner: [00:16:35] Otherwise, not much movement it’s a fairly quiet day all around. Nothing new on the on the oil and gas rumor mill front. Other than the normal is happening farce crews in in I do I will tell you this frac crews for natural gas are getting so cheap to the point where we might start seeing an uptick of some interesting activity going around. So so keep an eye out for that. I don’t really have anything Stu we let these guys get out of here. [00:16:59][24.4]
Stuart Turley: [00:17:00] I think so. [00:17:00][0.5]
Michael Tanner: [00:17:01] Well, we appreciate you guys sticking around with us. For Stuart Turley, I’m Michael Tanner. We’ll see you tomorrow. [00:17:01][0.0]
