Now Colorado Pushing To Ban Oil And Gas Permitting By 2030; Wyoming Lawmakers Call It Ignorant – I agree
ENB Pub Note: 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. […]
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 […]
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 […]
Rise of the Petroyuan: The End of the Petrodollar’s Reign and the Impact on Global Markets
Did you know that central banks bought more gold last year than any year in the past 55 years—since 1967? Though most don’t realize it, 1967 was a significant year in financial history, mainly due […]
What Russia’s First Gas Pipeline to China Reveals About a Planned Second One
A key topic of discussion during the Chinese leader Xi Jinping’s recent visit to Moscow was the Power of Siberia 2 gas pipeline project planned to export Russian natural gas from the Yamal Peninsula in […]
Highlights of the Podcast
00:00 – Intro
00:54 – Now Colorado pushing to ban oil and gas permitting by 2030
06:06 – Administration backs new gas spending and G7 with caveats.
09:39 – G7 Energy Environmental haggle over climate strategy
10:59 – Rise of the Petroyuan, the end of the petrodollars rein in the impact of global markets
16:46 – What Russia’s first gas pipeline to China reveals about a planned second one.
19:34 – Outro
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Video Transcription edited for grammar. We disavow any errors unless they make us look better or smarter.
Michael Tanner: [00:00:15] What is going on. Everybody, Welcome into a special edition of the Daily Energy News Beat. Stand up here on this gorgeous Friday, April 21st, 2023. As always, I’m your humble correspondent, Michael Tanner, coming to you from an undisclosed location here in Dallas, Texas. We have a great weekly recap lined up for you. It was an incredibly busy week. Stu and I are absolutely exhausted. Thank you for picking up the slack, Stu, for me last night. We will be back in full force Monday, bringing you all of the weekly news. We appreciate you guys stick endorsed. I’m going to turn it over to the team now let’s fire up the weekly segment. See you next week. [00:00:48][33.1]
Stuart Turley: [00:00:49] 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. [00:01:09][20.9]
Stuart Turley: [00:01:10] 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! [00:01:32][22.0]
Stuart Turley: [00:01:33] 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. [00:02:01][28.0]
Michael Tanner: [00:02:02] That’s there. Yeah. That seems like something you would write. Oh, it’s the publisher’s note. Oh, wait. [00:02:08][6.4]
Stuart Turley: [00:02:11] That would be me. So now, look, this is this is absolutely nuts michael, your effort 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. Lot of regulations are good don’t get me started on good versus bad regulations. [00:02:39][27.8]
Stuart Turley: [00:02:40] 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. [00:02:53][13.6]
Michael Tanner: [00:02:54] Yeah, I think you’ve seen a shift in Colorado to a very onerous permitting process. As 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 SB 150 rule, which was different than what’s going on right now. I don’t know if it was SB wanted it was it was one of those SB something maybe SB 149. [00:03:20][25.4]
Michael Tanner: [00:03:21] 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 other things in this application ruled everything up and what really that law 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. [00:03:58][36.8]
Michael Tanner: [00:03:58] 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. 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 permitted 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. [00:04:26][27.9]
Michael Tanner: [00:04:26] What this law is going to move. It is move it one step forward. Forward. And basically it 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 something will happen at some point I’m not saying it’s going to happen tomorrow, it’s going to happen in six months. [00:04:51][24.6]
Michael Tanner: [00:04:51] So 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 is it to somebody else? I mean, I’ve heard the asking price for Oxy Colorado assets it’s not cheap. I don’t think PDC or Civitas could afford that. [00:05:05][14.4]
Michael Tanner: [00:05:06] Now could they afford that together with some maybe another third party? I don’t know, but. The point is you’re going to see consolidation. And I think in ten years, too, what you’re going to see is one dominant oil and gas operator in Colorado who own who’s the only company that has the ability to actually get anything approved and permitted. You’ll see, you know, and that’s where I think this law will lead us. [00:05:26][20.5]
Stuart Turley: [00:05:27] I, I think it’s all end to a disaster. And what happens is we’ll go through all that later. But let’s let’s all set the tone that you can only legislate stupid so much and we’ll go into the next one. So. [00:05:43][15.9]
Michael Tanner: [00:05:44] Yeah, I mean, I love that state, but it’s it is unfortunate it’s happening. Yeah. [00:05:50][5.6]
Stuart Turley: [00:05:51] You notice both of us are in Texas. Okay, let’s go to the next one. [00:05:54][3.6]
Michael Tanner: [00:05:54] Notice that we used to be undisclosed location in Dallas. [00:05:58][3.9]
Stuart Turley: [00:06:00] I’m in an undisclosed location here in Abilene, Texas. Oh, yeah. Let’s go to the Administration backs new gas spending and 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. We’ll leave that. [00:06:43][43.2]
Michael Tanner: [00:06:43] 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. [00:06:52][8.5]
Stuart Turley: [00:06:53] That would be all of Europe. [00:06:54][0.7]
Michael Tanner: [00:06:55] So why is it the G7? It’s 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. [00:07:04][9.5]
Stuart Turley: [00:07:05] 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 per a proposed language, which wouldn’t have happened if the US had opposed. [00:07:24][19.1]
Stuart Turley: [00:07:27] 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. [00:07:49][21.8]
Stuart Turley: [00:07:50] 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. [00:08:04][13.8]
Michael Tanner: [00:08:05] Well, you pointed this out two years ago during COP 26 and mentioned that there was rumblings of calling natural gas clean. But 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 were unfortunately right about this. You take the victory lap twice now. [00:08:30][25.5]
Stuart Turley: [00:08:31] 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, is that technology lowers the cost. [00:08:58][27.8]
Stuart Turley: [00:08:59] 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. Yeah, 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. [00:09:33][33.8]
Michael Tanner: [00:09:34] 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 it here. [00:09:54][19.4]
Michael Tanner: [00:09:54] 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 I might want now. You know, only when you’re in power, only when you guys take power, which is in charge of oil, who is above me, For better or worse, it’s the Deep, Dark secret. [00:10:11][16.9]
Michael Tanner: [00:10:12] 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. I mean, if you graph a Republican president, Democratic or like presidents and their affiliation and then overlay on 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. [00:10:42][30.7]
Stuart Turley: [00:10:43] Well, the Biden administration wants the higher oil prices to drive everybody to renewable energy. [00:10:50][7.2]
Michael Tanner: [00:10:51] Good point. That’s a good point that’s a solid. [00:10:53][2.1]
Stuart Turley: [00:10:53] This one is really kind of frightening here, Michael we’ve been talking about the Rise of the Petroyuan, the end of the petrodollars rein in the impact of global markets. Michael, this one is really today’s episode I have to put down as one of our most important episodes because it really does not have it where you have three stories, separate people, separate around the world, separate locations, and they all have a different key impacting comments to this one bottom line Rise of the petroyuan end of the petrol dollar. [00:11:33][39.3]
Stuart Turley: [00:11:33] Okay, let’s start with some of these quotes. Do you know that central banks bought more gold last year than any year in the past 55 years since 1967, though most don’t realize it 1967 was a significant year due to the events at the London Gold Pool. 1967 the gold pool collapsed due to a shortage of gold. [00:12:01][27.3]
Stuart Turley: [00:12:02] Here’s where it really got bad the point is, a large global gold flows can sign. A paradigm shift in the international monetary system is imminent. In 2022, China has bought more gold than anybody else according to the Financial Times. I’m down in that paragraph. Michael. Right under it says the real reason for China’s massive gold stash. [00:12:29][27.7]
Stuart Turley: [00:12:30] According to the Financial Times, the buyers of gold in 2022 were China and Middle East oil producers, not a coincidence. These countries will be at the center of the changes of the international monetary system. This is now happening and today it is clear why China has an insatiable demand for gold. [00:12:53][23.0]
Stuart Turley: [00:12:54] Beijing has been waiting for the right moment to pull the rug out beneath the US dollar and now is that moment the key to understanding it? Is President Xi historic visit to Saudi Arabia and other Gulf states to launch a new paradigm of all dimensional energy cooperation there’s about three more quotes in here and then read you in then we’re going to open it up for your thoughts. [00:13:21][26.6]
Stuart Turley: [00:13:22] During Xi visit, he made the following crucial remarks. China will continue to import large quantities of crude from GCC companies the Middle East countries expand imports of liquefied natural gas, strengthen cooperation upstream oil and gas development, engineering services, storage, and transportation refineries, and make full use of the Shanghai Petroleum and Natural Gas Exchange as a platform to carry out one settlement of oil and gas trade thats President Xi. [00:13:58][35.5]
Stuart Turley: [00:13:59] Okay, let’s go down to the next one here Saudis after Xi historic visit the finance Minister, Saudi Arabia is open to discussions about trade and currency other than the U.S. dollar, according to the kingdom’s finance minister. [00:14:14][15.6]
Stuart Turley: [00:14:15] Okay, let’s come on down here even the Wall Street Journal admits such a move would be disastrous for the U.S. dollar. The Saudis move away, would chip away at the supremacy of the US dollar in the international financial system, which Washington has relied on for decades to print Treasury bills it uses to finance its budget deficit. [00:14:39][23.8]
Stuart Turley: [00:14:40] Ron Paul says the end of the dollar homogeneity, where he points out one thing that would precipitate the dollar’s demise. This is Ron Paul the economic law that honestly exchange demands of only real value as currency cannot be repealed. [00:14:57][17.2]
Stuart Turley: [00:14:58] The chaos that one day will infuse from our experiment was world wide flat money. Fiat money will require a return to money of value. We. Know that that day is approaching when oil-producing countries demand gold or its equivalent for all their oil rather than dollars or euros. Here’s the bottom line. The end of the petrodollar system is imminent. [00:15:28][29.5]
Michael Tanner: [00:15:29] Yeah, I mean, I’m not going to disagree with Ron Paul I think he’s fairly spot on here it is. I think the scariest part is the fact of the US, of the idea of that we use the supremacy of the dollar because it’s used to trade oil to help fund our global debts that’s the scary part of going to the petrodollars that we have basically leverage the fact that we will always be the world’s reserve currency and we’re learning in real time. That may not necessarily be true. So. [00:15:55][26.5]
Stuart Turley: [00:15:56] Right. [00:15:56][0.0]
Michael Tanner: [00:15:56] It’s a you’re in a word, a pickle here. [00:15:58][1.6]
Stuart Turley: [00:15:59] We’re in a big pickle in the the political powers that be of Republicans and Democrats have. Absolutely. Do you remember the Sean Connery movie? Great movie Hunting for Red October? [00:16:15][16.8]
Michael Tanner: [00:16:16] Yes. [00:16:16][0.0]
Stuart Turley: [00:16:17] Okay. [00:16:17][0.0]
Michael Tanner: [00:16:18] The hunt for the Red October. [00:16:19][0.4]
Stuart Turley: [00:16:20] Go ahead and disable the torpedoes so that you can fire them closer. And then. [00:16:26][6.3]
Michael Tanner: [00:16:26] It’s the Russians. [00:16:27][0.3]
Stuart Turley: [00:16:28] The Russians and then. [00:16:29][1.0]
Michael Tanner: [00:16:29] The Soviets. [00:16:29][0.1]
Stuart Turley: [00:16:30] The torpedoes come back around and he goes you fool, you’ve killed us. That’s exactly what we’re going to be saying to our politicians. You fool, you have killed the US dollar solved most of the world’s problems here’s my last article. What Russia’s first gas pipeline to China reveals about a planned second one. Michael and I talked about this a while ago. I got word on this first one when the sanctions were first imposed on Russia. [00:17:02][31.9]
Stuart Turley: [00:17:04] China and Russia at the beginning of the war, started negotiating for the first pipeline. And they did go through Kazakhstan, I believe. Let me double check here. And the reason for that gazprom has long touted the first power of Siberia as highly profitable and successful project, while going great lengths not to disclose the actual parameters of the ongoing trade. [00:17:30][26.1]
Stuart Turley: [00:17:31] In June two, 2014, when the project was launched, following the figures were made public, Russia would sell China 38 billion cubic meters of gas annually, totaling a thousand BCM over a 30 year contract with estimated sale price of 350 to 400 per thousand cubic meters. Pretty good stuff, but that has really changed. [00:17:56][24.9]
Stuart Turley: [00:17:57] This article goes through the newer information and how the pipeline does visit, and I did visit with a executive from Gazprom probably four or five years ago at a investment conference, and it was amazing how little money Gazprom has to actually pay to bring natural gas to market. And you would be surprised it is in the sense, not the dollars so they can actually make. No wonder Russia is making so much money off of their energy. [00:18:36][39.5]
Stuart Turley: [00:18:37] So when we take a look at the pipelines, these pipelines coming around are critical for the long term dollar amounts and the long term sustainability of Russia. Russia has moved away from sanctions they don’t have to deal with it. They are now working on not using the petrodollar and they have everything on road. So all these stories kind of all kind of blend in together. And I hope that all this makes a lot of fun and a lot of sense. [00:19:12][35.2]
Michael Tanner: [00:19:13] There you have it, folks. Stories of the week. We appreciate you made it. It’s Friday. We appreciate you guys holding and hanging out with us. Have a great weekend. Email us Questions@EnergyNewsBeat.com Otherwise, as I mentioned in the intro, we’ll see you next week. [00:19:13][0.0]
