Daily Standup Top Stories
Rising oil earnings allow Russia to resume purchase of foreign currency
Rising oil earnings in Russia could lead to increased foreign currency purchases, despite sanctions from the US and Europe. Russia’s energy revenues are close to exceeding its target levels, reports Bloomberg. This could enable estimated purchases of […]
Louisiana O&G still has a place in the future of energy
The oil and natural gas industry has been the leading economic driver for Louisiana for more than a century, and its energy sector is a pivotal resource for the Gulf Coast region and even the […]
The Decline of USD: A Strategy of Diversion and Alternatives
Is the USD toast or in accelerated decline leading to toast? Westerners from establishment think tanks and media, swear there is no way USD will ever be displaced. Other westerners warn usage of USD is […]
The Rise of Copper in the Mining Industry Mergers and Acquisitions on the Horizon
As of May 2, 2023, copper has become a highly coveted commodity in the mining industry, causing larger companies to seek out smaller players, particularly those with copper discoveries on the horizon. This is due to copper […]
US Treasury says government may default on debt as early as June
United States Treasury Secretary Janet Yellen has sent a letter to Republican House Speaker Kevin McCarthy warning him that the federal government could hit its spending limit by June 1 if Congress does not raise […]
Highlights of the Podcast
00:00 – Intro
02:52 – Rising Oil earnings allow Russia to resume purchase of foreign currency
04:28 – The Decline of USD: A Strategy of Diversion and Alternatives
06:49 – Louisiana oil and gas still has a place in the future of energy
09:34 – US Treasury says government may default on debt as early as June
10:43 – Market Updates
12:24 – U.S. jobless claims fall for the third straight month
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 May 3rd, 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 show, the purveyor of the show and the Director and Publisher of the world’s greatest website, EnergyNewsBeat.com Stuart Turley, my man. How are we doing today? [00:00:35][21.5]
Stuart Turley: [00:00:36] It’s a beautiful day in the neighborhood. Hey, I had a fantastic day with Robert Bryce at Meredith Angwin. Both are well-known authors and also on a podcast with Mark Bannerman. He is a wonderful CPA and we talked about 1031 exchanges and oil and gas in our team. [00:00:56][20.0]
Michael Tanner: [00:00:56] Yeah, no, that’s awesome. The 1031 exchange is going off right now. It’s extremely hot. So if you have a 1031 exchange, call Stu. He’s the guy you can hit and blow in the description. We have a crazy show lined up Stu the menu is sort of doom and gloom. You it’s it’s it’s a great dude-style show there’s a lot of big articles guys. [00:01:14][17.9]
Michael Tanner: [00:01:15] First article we’re about to cover here. Rising oil earnings allow Russia to resume purchase of foreign currency worth. That’s par. This is one of a factor in why oil prices were down but this is crazy. Still, we’ll cover what’s going on in Russia. [00:01:27][12.2]
Michael Tanner: [00:01:27] Next. Louisiana oil and gas still has a place in the future of energy. This is a nice opinion piece, specifically looking at what’s going on with Louisiana in the oil and gas business. Next up, a Decline of the USD, a strategy of diversion, an alternative Stu has been banging on the table for this year after year. BRICS Dollars coming. We’re getting off Swift. We’re getting off Swift. This is a nice deep dive into what’s really going on with the dollar. [00:01:49][22.3]
Michael Tanner: [00:01:50] Next up,The Rise of copper in the mining industry. Mergers and acquisitions on the horizon. We’ll cover a little what’s going on in the M&A in the mining space got to love that. And then finally, really the main driver of oil prices today, US Treasuries say government may default on debt as early as June. It’s not as scary as it sounds, but but oil prices did definitely take a hit. [00:02:09][19.2]
Michael Tanner: [00:02:09] Stu will, then kick it over to me. I’ll cover again Oil down to 71-62 after starting the day well above $75, nat gas just dropped by about a quarter of a percentage point. I’m down to $2.02 and then we’ll cover quickly what the API is forecasting in the EIA draw and we’ll let you get out of here, get back to work. [00:02:25][16.0]
Michael Tanner: [00:02:26] Before that. Guys, we get going again check us out online www.EnergyNewsBeat.com the best place for all of your oil and gas news Dashboard.EnergyNewsBeat.com Your best place for every data and news combo. Stuart does a great job of making sure the website is curated with all the top energy news description below. Have all the links to the show under the articles we’re about to cover. Stu, I’m out of breath. Where do you want to begin? [00:02:47][20.9]
Stuart Turley: [00:02:47] I don’t know Michael Let’s see let’s start with my favorite Putin here. Rising Oil earnings allow Russia to resume purchase of foreign currency. Russia’s purchase of Chinese yuan as its primary asset for energy transactions highlights its ability to weather the impact of sanctions. Michael, we’ve talked about this ad nauseum. [00:03:10][23.3]
Stuart Turley: [00:03:12] But this is actually a fantastic article from the standpoint it says the price of Russian oil is about halfway through the article. Michael Price of Russian oil was set at $34 per barrel before April 20, 22, Julie falling to $25 from July. The Russian leadership accounted for this change with increased taxation on producers. [00:03:39][27.2]
Stuart Turley: [00:03:40] The weak domestic currency also helped bridge this price gap. However, earnings from oil and gas have declined by 45% in the same time, 2020 due to this shortfall exceeds the Russian Finance Ministry for all of 2023. [00:03:59][18.3]
Stuart Turley: [00:04:00] They sold 47 million worth of Chinese one to buy back ruble I’ll tell you, Michael, what this is telling us is that there is a market for currencies. In fact, that’s how George Soros actually made all his billions originally was taking countries down on their currencies. [00:04:18][18.5]
Michael Tanner: [00:04:19] Specifically, he got very famous in the UK for shorting the British pound. No, I mean, I think, you know, this is an interesting article and I think it flows into specifically The decline of the USD, which I think is the next article that we have to cover, which is What now? Is there an alternative for Russia to start, even as they’ve been selling their oil for the Yuan? You know, what else do they go with? [00:04:40][21.5]
Stuart Turley: [00:04:41] Oh, absolutely. This article came out from LinkedIn and let me see if they put it in here in the in the notes source, LinkedIn. Oh, man, this was a good guy. I love him on LinkedIn. There are one, two, three, four, four major bullet points here. Michael. [00:05:00][18.9]
Stuart Turley: [00:05:01] The US-EU seizure of the Russian Central Bank Reserve after Russia attack will be remembered as the why as. Genius moves. I should have said a Star Hall’s genius move that sealed the fate of the USD you and I talked about that. [00:05:21][19.3]
Stuart Turley: [00:05:21] They overstepped it bad Number 2, sanctions cutting from swift and seizing USD reserves, confirmed that U.S. had broken the convention of global reserve currency, i.e., that it must be neutral and freely available. Michael, They crossed the line they should not have crossed the line. [00:05:43][21.9]
Michael Tanner: [00:05:44] I think it’s also interesting to point out that in this he the Chinese number three Chinese say they specifically do not want the yuan to be the global reserve currency, which is interesting, that which is a smart move by them, as this author points out, because they want to be able to control against exactly what we pointed out, George Soros before and speculation. [00:06:04][19.9]
Stuart Turley: [00:06:04] But why is China buying so much of the Global Gold? They are buying more gold than all of the other countries put together, Michael. It’s so that eventually they can be the global market backed by gold, not not by the petro. [00:06:23][18.3]
Michael Tanner: [00:06:24] So that’s very interesting maybe they’re going to and I noticed there he mentions in here they’re going to start regulating stablecoins and all that crypto stuff. Crypto is going down in China. [00:06:35][11.0]
Stuart Turley: [00:06:35] Oh, it’s going down bad. And I get mixed emotions about crypto. We can talk about that at a different time. But I thought these two stories really rock Ben solid good points, Michael. [00:06:48][12.2]
Stuart Turley: [00:06:48] Okay. Louisiana oil and gas still has a place in the future of energy. Michael, this is a great story. Louisiana is positioned to have opportunity to capitalize on changing global market demand and lead in the future of energy by bringing online new advancements in the industry, such as carbon capture and storage, CCUS and utilization I want to throw that in there. Blue and green hydrogen and renewable diesel. [00:07:18][30.0]
Stuart Turley: [00:07:19] Michael There are about 16 really nice big projects going on in Louisiana and I respect the leadership because they are doing renewables, they are doing all oil and gas. Louisiana is home to the Haynesville formation and lots of natural gas. You’ve got so much going to the Gulf that they have a just a huge amount of good things going on besides having tires off of Gutfeld there I mean, Gutfeld is a rock star and. [00:07:54][34.8]
Michael Tanner: [00:07:54] His ratings are insane. I saw he’s the number one late night host. [00:07:57][2.9]
Stuart Turley: [00:07:57] Oh, absolutely. And I would like to have. Gutfeld and Tyrus and Katt on our podcast if they’re ever listening. [00:08:05][7.2]
Michael Tanner: [00:08:05] So I’m sure they’re listening I’m sure they’re getting their editors on it right away. [00:08:09][4.2]
Stuart Turley: [00:08:10] Oh, absolutely but, you know, anyway, hats off to Louisiana absolutely a positive article. They’ve got $18 billion in projects announced for capture called carbon capture, Renewable biofuels, Blue and Green production of Hydrogen and Ammonia. While they’re doing all of the normal oil and gas in the Haynesville, Wonderful way to do it. [00:08:35][25.5]
Michael Tanner: [00:08:36] So, yeah, and they’re they’re taking the I mean, I think the infrastructure and investment in the CCUS really will be the bridge between the old and the new if this is where things are going regardless. I mean, if we’re going to if scope one emissions are going away, CCUS is the quickest way to do that. So I think this is smart overall in terms of a strategic play. [00:08:56][19.8]
Stuart Turley: [00:08:56] Right, And hey, are you proud of me? I didn’t pick a Debbie Downer or a Karen Downer story. You know, I get you one in there, man. [00:09:04][7.6]
Michael Tanner: [00:09:04] That was great. That was great. [00:09:05][1.0]
Stuart Turley: [00:09:06] Let’s go to the last one here. The US Treasury, Michael, that I was talking to Tomcat today, and I’ll tell you, he was married and just beat his head against his computer. Today. He’s a day trader that we talk to all the time on the market. Market was brutal today and it’s because the rumor that’s going on out there that the US dollar, the balance sheet is going to be devalued is coming around the corner. [00:09:33][26.3]
Stuart Turley: [00:09:34] U.S. Treasury says government may be filed on debt as early as June. Michael I don’t feel a real worry about this because the government’s never defaulted. However, having it having its ratings change is critical and I think that may happen with the way things have been going. Let me give you a quote in here. [00:10:00][25.8]
Stuart Turley: [00:10:00] Given the current projections, it’s imperative that Congress acts as soon as possible to increase or suspend the debt limit in a way that provides long term certainty. The government will continue to make its payments, but I think they’re going to do it. What gives me all wrapped up about this is President Biden saying he is not going to negotiate on raising the debt ceiling, but they’ve said they’re going to raise the debt ceiling. McFly, hello. [00:10:32][31.3]
Michael Tanner: [00:10:32] Hello, McFly. [00:10:33][0.4]
Stuart Turley: [00:10:34] McFly he’s they’re gonna raise the debt ceiling and they’re asking you to come to the table, McFly. [00:10:40][5.7]
Michael Tanner: [00:10:41] Of course. I mean, I think this has broader effects. I mean, I think this is a good transition, really, into what happened with the overall markets today. Because. [00:10:48][7.1]
Stuart Turley: [00:10:48] All you now [00:10:49][0.3]
Michael Tanner: [00:10:49] I mean, this news was about, you know, this news dropped it way, you know, 10 a.m. this morning, early this morning, we saw markets immediately fall off the table. S&P finishes down 1.16 percentage points. NASDAQ tumbles about an eighth of a percentage point. Crude oil tumbles all the way from 75 or 75 to its current settled point here at 71-59 as we record this about 6:30 p.m. here on Tuesday. [00:11:12][23.3]
Michael Tanner: [00:11:13] And really the song and dance with oil is hey, if we default, that’s you know, if more rate hikes are on the way, we’re increasing. We’re we’re already pushing up against that debt. The macro outlook for the dollar doesn’t look good. [00:11:26][13.4]
Michael Tanner: [00:11:27] And this is where things get interesting with all of the U.S. dollar talk of if oil starts getting traded in other commodities, that’s going to really soften that WTI index a little bit. You’re going to start you’re not going to get that $100 oil. Who cares what the dollar value is? What’s it in the currency that they’re trading in? And so that’s where it’s now it comes down to who accepts dollars for their oil. [00:11:49][21.8]
Michael Tanner: [00:11:49] Now, obviously, everybody still is going to use dollars, but maybe not. I mean, there’s you know, I’m not going to put it past due to find is an article that says they’re going to stop using you know, they’re moving to a swift currency. It’s like an alternative Swift Currency. [00:12:03][13.9]
Stuart Turley: [00:12:04] Well, it’s like you and I said the other night, the British sterling pound has been around for 100 years. That was the global currency at one time. Yeah, the U.K. What? I want to live there now. Their teeth are all bad and they have horrible food. I mean, that’s what happens when your your currency devalues. [00:12:22][18.4]
Michael Tanner: [00:12:23] Yeah. I mean, you know, we also saw U.S. jobless claims fall for the third straight month. Layoffs increase at its highest level in more than two years. You know, the theory is that some softening in the labor market, hopefully that aids the Fed’s fight against inflation. But they’re raising rates, so who cares? Oh, no. Oh, no more people are getting laid off. But I that’s that does stink. It does think I’m sorry but I but yeah they you know it was I, I think just an interesting day in the markets to say the least Stu. [00:12:54][31.0]
Michael Tanner: [00:12:55] I think there’s a lot to be said about what happens to the dollar strength and what that means to oil prices because up until now we I keep a pounding hand on the table, hand on the table, hand on the table about what’s going on with the oil and how our dollar and how it’s related to what’s going on with prices. If that begins to slip, we’ll have to you know, we have to stand back and figure out what other dynamics, If we have to start quoting Oil and Yuan, we’ll quit the show. [00:13:20][25.1]
Stuart Turley: [00:13:21] Well change to a cooking channel. [00:13:23][1.6]
Michael Tanner: [00:13:24] Yes, we’ll see Stu cooking [00:13:26][1.7]
Stuart Turley: [00:13:26] Oh, actually, no. I enjoy your podcast too much we’ll figure out something that’s of interest. Maybe the pod channel, because [00:13:32][6.5]
Michael Tanner: [00:13:34] We saw crude oil. We saw the API estimate, Crude Oil inventories dropped by about $4 million. And then from that standpoint, it’s really what does the dump or what does the EIA drop as you’re listening to this? Hopefully it’s a draw. Prices could use it. But if we see anything unexpected, what if we see 69? That’s not good. [00:13:53][19.1]
Stuart Turley: [00:13:54] No. [00:13:54][0.0]
Michael Tanner: [00:13:55] I think that’s really all I’ve got Stu. What should people be worried about tomorrow? [00:13:58][2.9]
Stuart Turley: [00:13:59] Watch what the Fed’s going to do on Wednesday and rumors are going to be abounding out there right now. It’s a scary time. Look for alternative investments out of the stock market. Watch what the rumors do if the U.S. dollar. [00:14:15][16.6]
Stuart Turley: [00:14:17] Yesterday, Michael, was one of the first days that the Dollar went down and so did Oil. You know, that inverse relationship usually when the Dollar goes down, Oil goes up. That inverse ratio, you just nailed it. It’s it’s going to be one of those matrices we’re not going to know anymore. So,. [00:14:32][15.4]
Michael Tanner: [00:14:33] Yeah,. [00:14:33][0.0]
Stuart Turley: [00:14:34] Don’t know. [00:14:35][0.5]
Michael Tanner: [00:14:35] So anyway, on that fun note, guys, we’ll let you get out of here. We appreciate you for checking this out as always www.EnergyNewsBeat.com for Stuart Turley, I’m Michael Tanner. We’ll see you tomorrow, folks. [00:14:35][0.0]
