Europe Is Buying Record Amounts Of Refined Russian Fuels Through India, And Paying A Huge Markup
Last August, we were the first to show how Russia was bypassing Europe’s so-called commodities embargo: it was selling LNG to China which was then re-selling it to Europe at a substantial mark up. And […]
Data insight: the cost of a wind turbine has increased by 38% in two years – and cost for critical minerals up
The Covid-19 pandemic, global supply chain crisis and war in Ukraine have all played havoc with global commodity markets. For commodity traders, it has been big business: across the sector – which includes hedge funds, banks […]
Market Rally Shakeout May Be Bullish Signal; JPMorgan Eyes First Republic After FDIC Takeover
The stock market rally fell sharply during the past week, but rebounded to close with solid gains, a shakeout that could set the stage for a stronger advance. JPMorgan Chase and PNC Financial are vying […]
Financing the energy transition – we need a plan to provide the lowest kWh along the path
ENB Pub note: Excellent article from White & Case about the Energy Transition. Looking at the money is like the old phrase “Follow The Money.” For years, climate change campaigners and policymakers have argued that […]
Exxon delivers a record first-quarter profit on higher output
Exxon Mobil on Friday reported a record first-quarter profit that was more than double from a year ago and topped Wall Street estimates as rising oil and gas output overcame a pullback in energy prices […]
Highlights of the Podcast
00:00 – Intro
03:34 – Europe is buying record amounts of refined Russian fuels through India and paying a huge markup
07:04 – Data Insights Cost of a wind turbine has increased 38% in two years and the cost for critical minerals is up the average price
09:21 – Financing the energy transition – we need a plan to provide the lowest kWh along the path
13:30 – Market Rally Shakeout May Be Bullish Signal; JPMorgan Eyes First Republic After FDIC Takeover
17:45 – Market Updates
20:23 – Exxon and Chevron drop their earnings
25:05 – Outro
Follow Stuart On LinkedIn and Twitter
Follow Michael On LinkedIn and Twitter
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 Monday, May 1st, 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 Web site, EnergyNewsBeat.com, Stuart Turley, my man, do you have a good weekend? [00:00:36][22.3]
Stuart Turley: [00:00:37] Oh, it’s beautiful day in the neighborhood out here in West Texas. Hey, just want to give you a shout out. I got me a pair of absolutely high speed data. I dug that ditch yesterday, baby. I got me some high speed network in my man cave. [00:00:53][15.6]
Michael Tanner: [00:00:53] Yeah. You spent all weekend getting your man cave ready and Internet cord run out there so that you could come on the show and say, I have to. You originally tried to tell me for everybody. He was trying to tell me he had two 900 gig lines coming out. I was like, No, no, it’s mega. It’s just it’s megabytes, but whatever. [00:01:11][18.0]
Stuart Turley: [00:01:12] They’re fast Baby! [00:01:12][0.3]
Michael Tanner: [00:01:13] They are still fast! So we appreciate you putting in all the work to make sure that we can bring you guys the show. And he was managed to actually put up a great line up guys this weekend. We had a huge amount of stories Stu was absolutely kookie, lots of earnings. So this show is packed. [00:01:29][15.5]
Michael Tanner: [00:01:29] First up on the menu Europe is buying a record amount of refined fuels through India and paying a huge markup. This is absolutely insane to think about the Russian oil flowing from Russia to India, getting marked up and being sent to Europe. And again, the consumer takes it in the drive thru so Stu will cover what’s going on with that trade. [00:01:49][19.8]
Michael Tanner: [00:01:49] Next Data Insight the cost of a wind turbine has increased by 38% in two years, to the surprise of nobody considering what’s going on with inflation right now. So still, we’ll dive into what some of those numbers are saying on wind energy. [00:02:01][12.2]
Michael Tanner: [00:02:02] Next up, Financing the Energy Transition we need a plan to provide the lowest kilowatt hour along the path. This is a key need article as Stu got a nice publisher’s no note on it and then we’ll dive into what’s going on really in the energy transition and how it’s going to be financed. [00:02:16][14.5]
Michael Tanner: [00:02:17] Finally, we will cover Jp morgan Eyes First Republic after FDIC takeover. I think there’s there’s there’s a little bit to do with what’s going on with the current energy markets right now. So we’ll dive in and cover what’s really going on in the banking sector, which is pretty insane right now. He’ll throw it over to me. We’ll cover what’s going on in the oil and gas markets. [00:02:35][17.7]
Michael Tanner: [00:02:35] Specifically oil finishing about two, two and a half percentage points, up $76. And that in that range, again, do we what do we see going forward this week on both that some crazy price action in natural gas, but it currently settled at $2.41 here before the open as we record this on Sunday. [00:02:53][17.6]
Michael Tanner: [00:02:53] And then we will quickly round up with Exxon and Chevron earnings. It’s going to be a busy earnings week, guys. Newsbeat, your best place to stay up to speed on all that stuff. So we’ll cover Chevron and Exxon before I hand it over to studio guys again. www.EnergyNewsBeat.com It’s where all the stories we’re about to cover from hit the description below take a look you’ll be able to see every story in the lineup. [00:03:13][19.6]
Michael Tanner: [00:03:13] Dashboard,EnergyNewsBeat.com the best place for all of your data and energy news combined. I get it why you still can. You never know where it might go Stu is a great job of curating this website to make sure all the top energy stories are there. Guys, I’m out of breath tho Stu where do you want to begin today? [00:03:27][13.6]
Stuart Turley: [00:03:28] Oh, mighty young millennial. How what a great job. We’ve got some stories coming around. Europe is buying record amounts of refined Russian fuels through India and paying a huge markup. Michael iran taught russia how to avoid sanctions. I irenaeus law. There’s always said sanctions don’t work they get you in the drive through. [00:03:51][23.6]
Stuart Turley: [00:03:52] And last Russia let’s see Russia was bypassing Europe’s so-called commodities embargo when it was selling LNG to China, which then turned around and sold the LNG back to Europe markup. They took that and now India has learned from China and India has become so good at reselling this is a quote out of the article. [00:04:17][25.6]
Stuart Turley: [00:04:18] Selling Russian oil to the same Europeans who refused to buy it directly from Moscow at a much lower price. But the Asian country is on track to become Europe’s largest supplier of refined fuels this month, simultaneously bringing a record amount of Russia buying record amounts of Russian crude. [00:04:41][22.9]
Michael Tanner: [00:04:43] It’s absolutely insane that’s from a data analytics firm out of Kepler, which I really do trust it. They’ve got some great products over here. It’s absolutely insane. I mean, you think about it, it’s a 25 barrel discount basically going from Brant to your price difference, which is about a third of the pull price of the barrel of crude oil, which is. Absolutely. And that markup is even greater when you talk about refined products, a.k.a your diesel and gasoline. I mean, if you’re India it’s a no brainer if you. You’re an Indian trader right there this is a no brainer if you’re Modi. [00:05:16][33.0]
Stuart Turley: [00:05:17] Oh, and there’s there’s. There’s a couple. You always call these. What? Michael’s second. What’s your you always second. [00:05:24][6.8]
Michael Tanner: [00:05:24] Second order effects. [00:05:25][0.6]
Stuart Turley: [00:05:25] Is second order effects. Bloomberg notes in this article. The development is a double edged sword for the EU. On one hand, the bloc needs alternative sources of diesel now that it has cut off the direct flows from Russia, which are still Russia so there would still getting it but previously its top supplier. [00:05:45][19.7]
Stuart Turley: [00:05:46] However, it ultimately boosts the demand for Moscow’s barrels and means extra freight cost and impact to the environment. In other words, Europe achieves none of its embargo goals while being hit with a far higher energy prices. The second hand smoke out of this, Michael, is simply the fact that it’s going to continue to devalue the dollar because now this is all being bought outside of the petrodollar. [00:06:15][29.6]
Michael Tanner: [00:06:16] Oh, yeah. I mean, again, it is crazy that they’re trading bananas now for, you know, what is this in rubles now or is it one. [00:06:24][7.8]
Stuart Turley: [00:06:25] About I was doing okay. Yeah. I mean it depends on which tanker and Michael you’re going to throw up. The Dark Fleet is making a big difference. Go ahead. [00:06:33][8.6]
Michael Tanner: [00:06:34] Roll your eyes for our. Well, I will. I will roll my eyes. What’s next? [00:06:38][4.2]
Stuart Turley: [00:06:39] Okay, that was funny. All right, Data insight, Michael, couple of things. How often when you walk to the water cooler at the office, you always hear, Oh, by the way, wind energy is, oh, maybe not in your office, but we always hear it. [00:06:53][13.6]
Michael Tanner: [00:06:53] That’s exactly, exactly what I hear every day at the office, that the cost of wind energy is going down. That’s what’s getting thrown around at my water cooler. [00:06:59][6.2]
Stuart Turley: [00:07:00] It ain’t. No, that was stupid. But other people’s we hear from folks all the time. Data Insights Cost of a wind turbine has increased 38% in two years and the cost for critical minerals is up the average price. This is the main headline here on this. The average price of the seven most significant critical minerals for the wind energy has increased by Michael. Drumroll, give me a drum roll 93% of January since January 20, 20, 93%. [00:07:33][32.7]
Michael Tanner: [00:07:34] That’s pretty insane. [00:07:34][0.6]
Stuart Turley: [00:07:35] That’s a bad dog number. And think about how many kids are being forced into slave labor on this. Okay, couple keynotes for commodity trainers. It’s been big traders it’s been big business across the sector, which includes hedge funds, banks, big traders like Glencore profit soared 1115 billion in 2022. [00:07:59][23.5]
Michael Tanner: [00:08:00] And Glencore is one of the largest coal mines owned some of the largest coal mines around the world. So this is where people just it just cracks me up that were they were buying all of our critical minerals from the same people who are supplying millions of tonnes of coal. And I’m okay writing bull being supply. But it’s just there’s so much hypocrisy in this. It all just drips with. [00:08:24][23.6]
Stuart Turley: [00:08:24] You know and if you sit here, I’m going to get a crayon and when I get some time to do some research, I’ve got several other projects I’m working on and it says Data from the Energy Monitor’s parent company, Global Data, shows that the average cost required to build one megawatt of wind turbine capacity has increased 38% over the two years. [00:08:45][20.5]
Stuart Turley: [00:08:45] This is a marked contrast to years of steady price declines as technology improved. A couple of things that still does not keep none of this includes the cost for the increased cost to the grid and the additional wind turbines that you have to, because Meredith Angwin and I’m also interviewing Robert Bryce on Tuesday for our podcast as well. And both of them have talked about the amount of extra wind power and solar that you need to add to the grid. So it’s not one megawatt through one megawatt. Wow. [00:09:18][33.4]
Michael Tanner: [00:09:19] Yeah,. [00:09:19][0.0]
Stuart Turley: [00:09:19] Unbelievable article. Let’s go to the next one. Michael Financing the energy transition follow the money. We need a plan to provide the lowest kilowatt per hour along the path. The cost of moving the energy sector toward net zero is huge, but new research reveals that companies are increasingly prepared to invest and funding is increasingly available. [00:09:43][24.0]
Stuart Turley: [00:09:45] Let’s find out those sectors. Michael Coming around the corner, what are energy companies? Alec Where are energy companies allocating capital? 42% of energy companies are investing in energy transition initiatives 11 per hour. 28% now is in returns to investors and shareholders. It used to be 11%. Wow!. All right. [00:10:16][30.6]
Stuart Turley: [00:10:16] Capital investments in traditional businesses and oil and gas. Michael, this is critical. It used to be two years ago, 32%. Now it’s down to 20%. And three years, three years ago. Michael, you and I had on our show, we could pull the tape. We needed trillions of dollars just to meet the decline curves. If demand lay, just remain flat. The IAEA, the International Energy Association Agency, said just recently, two weeks ago that energy demand will remain constant for a while. [00:10:55][38.9]
Michael Tanner: [00:10:56] The international energy crime syndicate, you mean? [00:10:58][1.8]
Stuart Turley: [00:10:58] Yeah. Okay, well, we’ll leave my true thoughts alone on that. And the EU. And the EU. I mean. Excuse me. The. [00:11:05][6.3]
Michael Tanner: [00:11:06] Yeah, the U.N.. [00:11:07][0.8]
Stuart Turley: [00:11:08] Yeah, yeah, yeah. [00:11:08][0.6]
Michael Tanner: [00:11:08] IEACC ? [00:11:08][0.0]
Stuart Turley: [00:11:09] Yeah, the U.N.. Okay. How will they find this? How will energy companies finance their energy transition initiatives? Private equity, 40%. Existing balance sheet or. Michael, I’m assuming this would be free cash flow. 32%. Equity capital markets, 29%. Dated. Capital markets,. [00:11:34][25.0]
Michael Tanner: [00:11:35] Debt Capital Markets. Debt. [00:11:36][1.1]
Stuart Turley: [00:11:37] Oh, thank you. Thank you. Old Moses me Friends Bank lands 19%. Export Credit Agency 40%. Hey, I went to OSU but that is a lot more than 100%. [00:11:49][12.4]
Michael Tanner: [00:11:50] I know what’s going on I was asked the same thing. I was like, it seems like right? [00:11:57][7.0]
Stuart Turley: [00:11:58] Is this printing money? I got to go do some research [00:12:00][1.5]
Michael Tanner: [00:12:00] This is this is this is this is how you start inflation. [00:12:03][2.9]
Stuart Turley: [00:12:04] This has got to be printing money. [00:12:05][1.3]
Michael Tanner: [00:12:06] I think there’s two things Stu I mean, it’s clear. I think it’s clear. I think the the the bigger shift is this. You mentioned it in the of it where energy companies allocating capital returns to investors and shareholders up from 11 to 28% in capital investment in traditional businesses down about the same amount 32 to 20. [00:12:25][19.0]
Michael Tanner: [00:12:26] So it’s just a flip. People are saying, okay, instead of spending all this money in putting it into the ground, just give it back to me. Because think about it, the track record of oil and gas spending capital from 2012 to 20 20 to 2018 was terrible and it’s still kind of is terrible. [00:12:43][17.8]
Stuart Turley: [00:12:44] Right. [00:12:44][0.0]
Michael Tanner: [00:12:45] Knowing is a tough business you know, actually spending capital and spending it wisely is a tough business. So I’m not surprised it is flip. I think, you know, this whole 42% investing in the energy transition, are we sure about that? Like define Energy Transition? Like, are we talking about like. [00:13:01][16.2]
Stuart Turley: [00:13:02] I got to find out if it includes nuclear and natural gas now, because, I mean, if it is these this this article, these. [00:13:09][7.9]
Michael Tanner: [00:13:10] Then going green. Yeah. [00:13:11][1.4]
Stuart Turley: [00:13:12] You know so funny article. I was like, okay, if you put out the act coming from the bank balance sheet, that might make a little, but who knows? Okay, I got to go do some research on that article sorry about that. Market rally shakeout may be bullish, Maybe a bullish signal. Jp morgan Eyes First Republic after FDIC takeover. [00:13:35][23.1]
Stuart Turley: [00:13:36] Michael, this concerns me a bunch. The FDIC scene taking over first Republic banking giants including Jp morgan Chase and PNC Financial Services are looking to buy First Republic following a government seizure, the Wall Street Journal reported Friday night, citing sources the FDIC asked for initial bids by Sunday. [00:14:02][26.0]
Stuart Turley: [00:14:03] Bloomberg reported on Sunday after I was going to say gouging, but gauging initial interest. Bank of America is mulling it. Michael this is systemic of an overall problem in is that government keeps bailing out banks. It’s going to be an issue. What are your thoughts? [00:14:22][18.8]
Michael Tanner: [00:14:23] Well, this comes back to the issue of these larger banks. I think it’s important to note that JPMorgan would need a regulatory waiver to buy first. So they clearly think they’re going to get the waiver if they’re overspending, if they’re you know, I mean, they’ve got their whole team working. I mean, it’s kind of funny. JPMorgan does M&A for other companies. I imagine being on the M&A deal team for JPMorgan, that’s going to be an interesting deal. Team. I’d love to get out. I’d love to hear some stories about that. Not for Dylan. [00:14:49][26.3]
Michael Tanner: [00:14:51] Where this is all going to lead is to get Bank of America is are mulling some of the banks buying first look. It’s much like in the oil and gas business. You’re seeing massive consolidation because of just the way that struck the equity and debt markets are structured. It favors big versus small. [00:15:03][12.4]
Michael Tanner: [00:15:04] I think that’s what you’re going to see happen in the banking industry you’re going to you’re going to see all of these regional banks get swallowed up by, you know, much larger regional. Exxon, then those larger regional banks will get swallowed up eventually by Jp morgan and you’ll have, you know, 10 to 20 banks throughout the country. [00:15:18][14.2]
Michael Tanner: [00:15:19] Is that a good thing or a bad thing? Probably on average, a bad thing there may be some good things about it. You don’t need to worry about. You know, one of the advantages of having just huge banks is liquidity. You don’t have to worry about a run on deposits. The FDIC then can worry about other different things. [00:15:34][15.8]
Michael Tanner: [00:15:35] Now, having all of you having all of your deposits in one bank can also lead to massive you know, we already think Wall Street has too much power and too much control over our lives. Imagine if Jp morgan had all the power now. I like it now. I think the thing to be careful of is in this case. Yes. I actually, you know, if I’m going to put my my money anywhere, it’s going to be a Jp morgan. [00:15:56][21.7]
Michael Tanner: [00:15:57] Mainly based off what Jamie Dimon has said regarding the energy transition and his stance on oil and gas. He was one of the CEOs that sat up in front of Congress and said moving and getting off oil and gas would be the road to hell. Well, he did. He said that yet took yes directly from him. [00:16:12][15.4]
Michael Tanner: [00:16:12] Now, what happens when a new CEO takes over doesn’t believe that what happened? The problem with centralization is you’re counting on the people in charge. You may like the people in charge now, but do we like would we will we like them going forward? [00:16:23][10.7]
Michael Tanner: [00:16:24] So there has to be a balance we have to figure out a way to ride this ship. But Jp morgan may be the only company that could buy this, so I’ll be interested to see what happens. But I think that’s what’s going to happen. Consolidation among banks and will be generally worse off because of it. [00:16:38][14.2]
Stuart Turley: [00:16:38] I will give you great, great feedback, Michael. One small thing and you kind of said, what do you think about more big banks? It would be easier for the government to control the rollout of the Hamilton project, which is the digital currency, which is the end of financial freedom for the U.S. So that to me is even more scary on that part. Sorry. [00:17:08][29.6]
Michael Tanner: [00:17:08] I know you’re good, the Hamilton Project, but I but now, you know, obviously, First Republic, they’re in trouble their stocks down. You know, it’s basically down over 100% that huge Q2 quarter one deposit outflows, you know,. [00:17:23][14.8]
Michael Tanner: [00:17:24] There was an attempt to do quasi rescue it but the FDIC came in and just said, nope, we’re putting you up for bid right now. Someone will buy it. They won’t necessarily have to go into receivership. So I think that would be convenient for everybody. But we’ll see. Wouldn’t wouldn’t want to be in a regional bank right now. [00:17:40][15.4]
Stuart Turley: [00:17:40] No. Hey, after you and Finance did a great job. [00:17:43][2.5]
Michael Tanner: [00:17:44] Yeah. I mean, it’s pretty simple, guys. Oil prices traded up on Friday. Were currently sitting at $2 for us. 76, 78. That’s up $2. And 72.7% Implied open, though, is 7663 as we record this here Sunday afternoon. So, you know forces pulling on on on oil prices again are going to be the overall economy. What happens with the dollar so will go oil prices, you know,. [00:18:13][29.2]
Michael Tanner: [00:18:13] Banks collapsing. I’ll be interested to see what that does to oil prices you can make one argument where, you know, instability in the banking sector leads to lower crude oil prices, but also you could see crude oil prices increase as it’s seen as as a stable, quote unquote site, as is something that’s an alternative to currency. [00:18:29][15.8]
Michael Tanner: [00:18:30] If there’s huge flights of deposits, may be the one thing having a tanker crude full of crude oil, you’re gonna be able to get something for that. Regardless of where you take that tanker crude oil, you’ll be able to get some money for that, regardless of what currency or what what flavor it looks like. [00:18:43][13.1]
Michael Tanner: [00:18:43] So you could I could make an argument both ways but I do see a tumultuous week for oil prices. As we looked over to the natural gas, we it’s a really interesting price action. On Friday we had a huge spike up all the way over $2.50, but currently settled at $2.41 on an on total on aggregate was up $2 or 2.34 percentage points implied open $2.39 this is a great quote from Josh Elbon. He’s an he’s a refidi national natural gas analyst he’s been speculating over the past few sessions on when production might start to head downward. We certainly have not seen that turn yet. Overall, we are back to roughly January levels. [00:19:22][38.7]
Michael Tanner: [00:19:23] And what that means is supply has really been surprised to the upside, which is sort of force prices down at this point. And as we move into the summer, nothing, it doesn’t look to necessarily get that better. You know, to give you guys an idea, we’ve got you know, weather does look to be a little bit lower for our lower this week. So I think that is what’s supporting prices, at least in the short term but in the long term, I think we’re still in this 2 to $2 and 50 range and I don’t necessarily see it getting much above that. If reports all the way online, it did nothing. I mean, I swung and missed and that I’ll be I’ll be taking one in the shorts now for a while. [00:19:55][32.3]
Michael Tanner: [00:19:56] I think the only other interesting thing to cover this weekend is we’re going to a lot of earnings, guys. And the one thing I’d recommend is go to www.EnergyNewsBeat.com Type in earnings. You’re going to be able to see all of the different earnings first off you’re going to be able to see we’ve had 158 coming out that’s total S&P 500. I think there’s like 50 or 60 specific oil and gas what do you need to stay up to speed on what’s going on with earning? Check that tag out on our website. Great place. [00:20:22][26.2]
Michael Tanner: [00:20:23] Exxon and Chevron drop their earnings I thought both both were obviously positive. To give you an idea on Exxon, income rose to $2.79 per share were 11.43 billion compared to 5.84 billion a year ago. But you have to remember a year ago they took a write down of their Russian assets. Exxon sites oil and gas production rose rise by nearly 300,000 barrels per day compared to a year ago, levels including again, those asset sales. And those was a $3.4 billion after tax write down of its Russian oil. They ended with 32.7 billion. [00:20:55][32.0]
Michael Tanner: [00:20:56] I love how they say this. In their press release, they ended with 32.7 billion in cash. But on the call, CFO Kathleen Mingles said that there is they’re not necessarily saving that cash for mergers. They would like that they’d be open to deals that could offer synergies and drive good returns to shareholders. But it’s focused really on the Permian, Guyana and its Beaumont refinery expansion. [00:21:17][20.9]
Michael Tanner: [00:21:17] So nothing new on the potential rumors of Exxon and Pioneer, but sitting on 32.7 billion in cash, one only wonders what they’re going to do with that. Or maybe they have their eyes on another producer a.k.a Oxy, which is what I would be looking at if I was Exxon, but I’m not. So we’ll cover Chevron’s earnings. [00:21:38][20.8]
Michael Tanner: [00:21:39] They were at $3.46 per share, but that was only 6.6 billion of earnings for the first quarter. Again, that was compared to 6.3 the year before, but they did not have to take some sort of tax related charge. But they did have a $130 million tax charge related to its energy profits levied in the U.K. [00:21:57][17.8]
Michael Tanner: [00:21:57] So the first of the windfall tax windfall profits tax to $130 million tax charge related to its energy profits levied in the United Kingdom. Oh. Oh, wow. So someone they’re getting tax. I wonder how much BP took. We’ll have to when they drop their earnings it will be interesting to see. But but that there’s that windfall profit tax arm quote from Mike Wirth, Chevron’s chairman and CEO. We’re delivering strong financial results and increasing return to shareholders. [00:22:26][28.8]
Michael Tanner: [00:22:27] The company’s return on capital has employed been great, has been more than 12% for seven consecutive quarters and the company has returned 6.6. 6 billion to shareholders in the first quarter, an increase from 65% last year to the first thing they tout is its return to shareholders. Share repurchase program was increased to 17.5 billion. Again, the middle finger to the Biden administration continuing to buy back stock. [00:22:52][24.2]
Michael Tanner: [00:22:52] To give you guys an idea from a business perspective, they’re not op in the Mad dog to project out of Gulf of Mexico, which is headed up by BP. That project achieved first oil looking to supply somewhere around 140,000 bogey per day when it’s all online, between 22 laterals there in the Gulf of Mexico. They started crude oil liftings from Venezuela, supplying 8.7 million barrels of crude oil to the U.S. During the first quarter, they had 75 exploration blocks in the Gulf of Mexico receiving winning bids on in the lease sale. 2059 covered that about four weeks ago, subject to obviously two final government approval. [00:23:26][34.4]
Michael Tanner: [00:23:27] But we have a feeling that is for some low hanging fruit carbon capture because the next bullet point they mention is announced an expansion of the Bayou Bend Carbon Capture and Sequestration project in the U.S. Gulf Coast through acquisition of nearly 100,000 acres of pore space positioning. Bayou Bend Pick, one of the nation’s largest carbon storage projects in the US. Dun, dun dun. [00:23:47][20.3]
Michael Tanner: [00:23:48] So when we talk about investing in the energy transition, if this is included in the energy transition, obviously yes, that article we covered about four articles ago, Stuart, that makes sense to me about where the money. But are they buying wind farms? No. [00:24:00][12.0]
Michael Tanner: [00:24:00] And this is a smart business move for Chevron in this case. I love the way they’re run. I am a big fan of them. I know people will have other thoughts about them, but I think they’re they’re making some some clear strategic moves, get into that carbon capture market and cement themselves alongside oxy as a huge player here of the moves. [00:24:17][16.7]
Stuart Turley: [00:24:17] Yeah they they took the lesson from BP and did not follow the European total energy and BP. [00:24:25][7.2]
Michael Tanner: [00:24:26] Total so they let BP swing and miss it out one of them like maybe we should reevaluate. [00:24:30][4.0]
Stuart Turley: [00:24:31] Yeah. Retro. [00:24:31][0.7]
Michael Tanner: [00:24:32] Oops. What are you looking out for this do is we let people go anything they need to be watching for this week. [00:24:37][5.3]
Stuart Turley: [00:24:38] Some big news coming around the corner on Global front. I’ll keep you posted. [00:24:42][3.5]
Michael Tanner: [00:24:43] A little Tea. [00:24:44][0.6]
Stuart Turley: [00:24:44] You dont like it when I say that, do you? [00:24:45][0.9]
Michael Tanner: [00:24:45] I don’t. I don’t. Now I get nervous, but we. Because you guys sticking with us, we hope you have a great Monday. We’re going to let you get out of here. Stuart Turley Im Michael Tanner guys, check us out www,EnergyNewsBeat.com We’ll see you tomorrow! [00:24:45][0.0]
