Daily Standup Top Stories
As Utilities Switch From Coal To Natural Gas, Biden Administration … does not understand physics, permitting reform, or planning.
ENB Pub Note: Cowboy State Daily is one of the nation’s best news sources. Following them is worth your time. They point out several key points for the energy transition from the Biden administration. Setting […]
From Russia with gold: UAE cashes in as sanctions bite – accelerated by the self-inflicted demise of the U.S. dollar.
accelerated by the self-inflicted demise of the U.S. dollar. ENB Pub Note: We have been tracking of the demise of the U.S. dollar, and the direct impact of the Biden Administration sanctions weaponizing the dollar. […]
Chevron PDC Deal About Addition, Not Substitution
Oil and gas acquisitions in the era of capital discipline have often been a matter of “high-grading” portfolios by pushing out lower-return, more carbon-intensive assets. But Chevron CEO Mike Wirth tells Energy Intelligence that his firm’s agreed […]
Natural Gas: Much More Than A Transitional Energy for Right Now
The EU pledged to become climate neutral by 2050. In July 2022, the European Commission passed legislation to accelerate decarbonization that labels gas and nuclear energy “as environmentally sustainable”. The Commission says private investments are needed in gas and […]
Highlights of the Podcast
00:00 – Intro
02:28 – As utilities switch from coal and natural gas, the Biden administration does not understand physics permitting or reform or planning Chevron PDC
05:39 – Natural gas, much more than a transitional energy right now
07:48 – Chevron PDC deal about additions, not substitution
09:46 – From Russia with Gold
13:43 – Outro
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Video Transcription edited for grammar. We disavow any errors unless they make us look better or smarter.
Stuart Turley: [00:00:17] Hello, everybody. Welcome to the Energy News Beat Daily Stand Up. My name’s Stuart Turley President CEO Sandstone Group. And today is the day after Memorial Day, May 30th I hope you had a fantastic day. Hope you had some great hotdogs, enjoyed some time with the family, but also reflected on how we got to the United States with 240 years plus. And really, there’s a lot of sacrifices that were made. [00:00:51][33.6]
Stuart Turley: [00:00:53] We’d like to thank for all of our military folks I know that it’s impacted my family and again, I hope you had time to reflect on how the United States has been a very good experiment, the best one in the history. Let’s see if we can keep getting it to be the best in the world. [00:01:13][20.1]
Stuart Turley: [00:01:14] So with that, we’ve got a wild show lined up here boy, the news didn’t stop even though it was a holiday weekend. And we’re going to cover As utilities switch from cold and natural gas the Biden administration does not understand physics permitting reform or even planning it’s kind of an interesting one. [00:01:36][22.3]
Stuart Turley: [00:01:37] Here’s another one this was a great article From Russia with Gold usually cashes in as sanctions bite accelerated by the self-inflicted demise of the U.S. dollar. This one is a really powerful one’s got video and it’s just a heck of a note, a heck of an article. The Chevron PDC deal is not It’s a bad addition it’s not about substitution that this was a really good article as well too. [00:02:14][36.5]
Stuart Turley: [00:02:15] And Natural gas, much more than a transitional energy for right now it’s pretty cool article. And then let’s get ready to rumble. Let’s take our first one As utilities switch from coal and natural gas, the Biden administration does not understand physics permitting or reform or planning. I want to give you a shout out to the Cowboy State Daily as one of the nation’s best news sources follow them. They’re up in Wyoming Fantastic folks. [00:02:47][31.9]
Stuart Turley: [00:02:49] The article that they talk about says they released the 681 rule aimed at forcing coal and natural gas plants to run nearly emissions-free in the next decade. They’re not planning for retirement on these, and it’s in an orderly fashion and the consumers are going to have to pay for incredibly high energy costs and I don’t know about you, but I’m not sure I can afford six or seven times higher. [00:03:25][35.7]
Stuart Turley: [00:03:26] If the rules become final this is out of the Cowboy State article. If the rules become final, most of Wyoming’s electrical grid will need to run almost entirely on wind and solar. Trying to create a reliable energy supply running on intermittent sources will be extremely difficult and costly. [00:03:50][23.9]
Stuart Turley: [00:03:51] So if you can imagine a cowboy state, you know, up in Wyoming trying to survive on wind and solar in the winter, they’re not going to do it. So they’re going to have to have the natural gas plants. Natural gas plants would have to blend natural gas with 30% hydrogen by 2032 and almost be entirely hydrogen filled by 2038. [00:04:16][25.1]
Stuart Turley: [00:04:18] There’s a lot of things to even think about when you’re talking about creation of hydrogen, putting in the same pipes you can. But hydrogen is a lot smaller molecules and can get out of cracks that natural gas can’t. So they may or may not be possible to use the infrastructure. [00:04:38][20.3]
Stuart Turley: [00:04:39] I always was a big proponent of it, but there are some technical reasons why and then when you sit back and take a look also the permitting, we will continue to advocate for the tax incentives and sitting and permitting sitting and permitting reform necessary to advance and accelerate the clean energy transition. [00:05:05][25.6]
Stuart Turley: [00:05:08] Even wind and solar projects are being slow walk-throughs because of regulations. So you can retire the coal units when it’s cost-effective too but when is that going to be, you know? That leaves it totally wide open. So we want to hear from you. Put your comments. Let us know and we will get right back to you. [00:05:37][29.7]
Stuart Turley: [00:05:38] This brings up Natural gas, much more than a transitional energy right now in the EU they’re having what’s called the great gas debate. And it’s not like what I had in college with my other roommates. The commission’s decision drew criticism from staunch environmentalists. They believed that gas burns only 50% cleaner than coal it is greenwashing it to call it sustainable. Well, there are some things here that are called sustainable. It’s not sustainable in wind and solar if you can’t keep funding it and it’s not economically feasible. [00:06:20][42.0]
Stuart Turley: [00:06:22] So is wind and solar economically feasible? It’s broken the finances of the world. It’s not sustainable at this time. Will it be eventually? Yes, I think so, is it current right now? Not under its current technology. [00:06:39][17.9]
Stuart Turley: [00:06:42] There is no question that gas is not climate neutral and it produces some CO2, and methane leaks can occur when extracting and transporting gas. But gas is still cleaner than other dependable energy sources. [00:06:56][14.4]
Stuart Turley: [00:06:58] Hey, natural gas is the reason according to the United States EIA for the significant decreases in the pollution emitted in the United States. We’re the number one country in the world cutting our emissions and it was due to natural gas wasn’t due to wind and solar. It was due to natural gas and replacing the coal-fired plants. You cannot replace the coal-fired plants by putting in intermittent wind and solar unless you have their natural gas or nuclear, nuclear is not going to be an option for years. [00:07:39][41.4]
Stuart Turley: [00:07:40] So anyway, let’s move on over here to the Chevron PDC deal this was a big purchase, Chevron PDC deal about additions, not substitution. I found this one really, really good article. The transition transaction is a 7.6 billion all stock takeover of Denver. Jules Bird, the D.J. Basin Specialist, PDC. [00:08:11][30.8]
Stuart Turley: [00:08:12] The deal is $7.6 billion, 6.3 billion of Chevron stock issued to PDC shareholders and 1.3 billion in assumed debt, it’s pretty, pretty slick. But what are they getting for that? Expected synergies, a million in annual operational expenditures, 400 million in annual capital expenditures and or accredited per-share earnings, cash flow, free cash flow, and returns on capital employed. The agreed deal will literally double Chevron’s exposure to the Colorado Shale play, making it a top-five asset in the major global portfolio. [00:09:08][55.4]
Stuart Turley: [00:09:11] The only thing I think I can see about this is at Sandstone we’ve had a lot of work with the Colorado oil and gas permitting environment. We’ve been able to help PDC in some permitting and I don’t know that I would want to do business in Colorado. I think it’s fantastic, I think you’re going to see some more mergers and you’re going to see some more things going on, hats off to Chevron, but good luck. [00:09:45][33.8]
Stuart Turley: [00:09:46] From Russia with Gold the UAE cashews in as sanctions bite accelerated by the self-inflicted demise of the U.S. dollar. This was a fabulous article. We’ve been tracking the demise of the U.S. dollar for a long time through bricks by the petrodollar how do I say this without getting thrown off the road or the poor geopolitical decisions that the current administration has made. [00:10:29][42.4]
Stuart Turley: [00:10:30] Peter Saint Onge PHD.. I just found his video on Twitter. Phenomenal. I embedded the Twitter feed on this article. Let me read you some of his quotes top currency analyzed analyst warned last week that dollarization is happening faster than people realize. [00:11:00][29.9]
Stuart Turley: [00:11:01] Indeed, the dollar has already suffered a, quote, stunning collapse meanwhile, separate data from central banks around the world confirm that after decades of complacency, the landscape is shifting. Overnight, the U.S. dollar went from the world’s rock solid core store of value to a political football held hostage to whichever lobbyist or activist caught Joe Biden’s eye this week. [00:11:32][30.2]
Stuart Turley: [00:11:32] Where did all these dollars go to? That flight went to the next best thing, the euro and to gold. Together, the yen from Japan, not the one in price-adjusted the reserve soared five points over the year. They gobbled up two-thirds of what the dollar lost unbelievable. [00:11:58][25.4]
Stuart Turley: [00:12:03] If the U.S. dollar continues on this path, we will see this is the part that got me. We will see soaring inflation, a catastrophic fall in the American standard of living, and a U.S. that falls off the world stage not by choice, but by necessity. All of this as 100% of our own making all right we’ll be watching you. I mean, I just have to hand it to him. Peter Saint Onge PHD really a good article. [00:12:38][35.2]
Stuart Turley: [00:12:39] And then there was the other article From Russia with gold UAE cashes in as sanctions bite. Sanctions have destroyed the United States politically and globally by being improperly used as a weapon. There are ways of getting them implemented that would have worked the ways that they were implemented and thrown around have actually backfired and hurt the admin energy to the consumers even more. [00:13:11][32.2]
Stuart Turley: [00:13:12] So with that, I’d like to really thank all of our wonderful listeners thank you for being out there. Subscribe Like Share tell your friends Don’t forget to Vote early! Vote often! I’m kidding about that vote often. But anyway, look forward to hearing any feedback you got we’re going to have a fabulous week talk to you soon, thanks. [00:13:12][0.0]
