Daily Energy Standup Episode #143 – Oil Rebounds: Shell’s Strategic Pivot and Saudi Arabia’s Billion-Dollar EV Move Shake the Energy Landscape

Authored by Pepe Escobar, U.S. Think Tank Land hacks are not exactly familiar with Montaigne: “On the highest throne in the world, we still sit only on our own bottom.” Hubris leads these specimens to […]

Highlights of the Podcast

00:00 – Intro
03:49 – Shell pivots back to oil to win over investors
08:23 – Saudi Arabia signs $5.6 billion deal with Chinese EV company.
10:20 – How World Domination is within Tesla’s grasp
15:41 – More oil, fewer rigs. Hey, Saudis are something to see here
24:09 – Market Updates
28:31 – 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 another edition of the Daily Energy News Beat Stand up here on this gorgeous Tuesday, June 13th, 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 website, Energynewsbeat.com, Stuart Turley, my man. How are we doing today? [00:00:39][23.8]

Stuart Turley: [00:00:39] Beautiful day in the neighborhood got a wild show. [00:00:42][2.5]

Michael Tanner: [00:00:43] Yeah, it’s a very interesting show. We’ve got some pretty funny headlines, which I like Love a good headline day. Not a great day for oil prices, but we’ll have that funeral later in the show. First up, we’ve got Shell pivots back to oil to win over investors in a move everybody saw coming, shell kind of flipped back and they’re back into oil now. So who would have thought Shell’s getting out of oil and now they’re back into it? But Stu will cover what’s going on and what came out of their investor meeting they had today. [00:01:10][27.1]

Michael Tanner: [00:01:10] Next up, Saudi Arabia signs $5.6 billion deal with Chinese EV company, Saudi Arabia Ministry of Investment went ahead and ink this deal with human Horizons in an attempt to collaborate on some manufacturing and sale of vehicles so super interesting deal. Stu, will cover what that means. [00:01:29][18.6]

Michael Tanner: [00:01:29] What’s interesting is the next article he’s covering is How World Domination is within Tesla’s grasp. We know that the fall. You know, I think this is mostly going to cover the fallout from Elon Musk’s visit to China, where there was some interesting news about how they’re going to be collaborating going forward. Next up and on the news side, More oil, fewer U.S. rigs. Hey, Saudi, something to see here. So we see a theme running throughout the show. I’m sure you will weave all of that in together. [00:01:59][29.1]

Michael Tanner: [00:01:59] He’ll toss it over to me and I mean, oh, man. Well, we’ll talk about what’s going on with oil down 4% today we’re currently sitting at about $67 right now so not not good at all, unfortunately. But I will cover what’s going on, what the fallout is and maybe what to expect from the US Fed meeting this Wednesday. [00:02:17][17.4]

Michael Tanner: [00:02:18] And then we’ll let you get out of here it’s fairly quiet on the oil and gas news front, so we’ll be able to get you out of here nice and quick guys. But first before I kick it back to Stu, as always, check us out. World’s greatest website www.Energynewsbeat.com the best place for all of your oil and gas and energy news does a great job of curating that to make sure it’s up to speed with everything. [00:02:37][19.1]

Michael Tanner: [00:02:39] Dashboard.Energynewsbeat.com the best place for your energy and data news combo. We are hard at work at V2 mock it up a bunch of really cool stuff so please guys check that out get it while you still can before it goes behind that paywall. We are working hard on our new subscription model specifically for the websites or for all you lawyer viewers we appreciate everybody. [00:02:59][19.8]

Michael Tanner: [00:03:00] I mean, we’re all to the point where our firewall is is saving the day for us so we’ve you know, we’ve got so many people who’s got all his Russian comrades trying to hit the site that we need to make sure that we’ve got our firewall up. [00:03:11][11.7]

Michael Tanner: [00:03:11] But again, we appreciate everybody check out will be rolling out more details on what that new subscription looks like for our work on our loyal fans, our analysts, everybody who’s into the news and want to come up with some catchy tiers, like analyst, you know, SVP, executive level, we’ll come up with some stupid, catchy branding that will spend way too much time on and we’ll assign no value to it. But again, guys, Energynewsbeat.com for all these stories come from hit the description below you can jump to the timestamps. I’m out of breath, though, Stu. Where do we want to begin? [00:03:45][33.8]

Stuart Turley: [00:03:46] All right. Shell pivots back to oil to win over investors. This is after Michael. You and I have been talking about BP and Exxon and they’re the other big boys around the world. Here in the U.S., Oxy was the only one that was really staying on course but this was really interesting. The CEO Well, Swan’s effort to regain investor confidence as the energy giant wrestles with poor returns for renewables while oil and gas profits are booming. Company resources say that’s even at the lower dollar amount Michael So there’s some numbers in here let’s go through. [00:04:26][40.3]

Stuart Turley: [00:04:27] Shell produced about 1.5 million barrels per day. BP got a lot of that one of oil in the first quarter of 2023, representing a 20% decline from 2019 production of 1.9 million barrels per day. They say now output is going to be remaining largely flat and could slightly rise. [00:04:52][25.1]

Stuart Turley: [00:04:53] But let’s come down here to returns from oil and gas, typically the range between 10 to 20%, while those for solar and wind projects tend to be 5 to 8% there’s the bottom line problem returns. Now, I’m going to put a crayon to that on things that I know. And that crayon is not is way not good because that 5 to 8 is figuring not figuring in the tax problems or the maintenance issues as it comes in. It’s not create it’s not comparing oranges to apples. [00:05:36][43.5]

Michael Tanner: [00:05:37] You also have to remember this is a huge shift in strategy for a 2021 they announced by the end of the decade they were going to cut oil output by 20%. Then they walked it back and said that was under review three months later. Then they today walked it back from, well, actually, we’re probably not going to do that. [00:05:57][19.9]

Michael Tanner: [00:05:57] And what’s interesting is how were they supposed to reach those production cuts? By selling oil and gas assets. So you remember when somebody tells you they’re going to lower oil and gas production and they’re over in the guise of burn the ruse of ESG, they’re just selling it to somebody who’s probably going to operate it in a less energy efficient and a less compliant manner. [00:06:18][21.3]

Stuart Turley: [00:06:19] They are probably selling it… [00:06:19][0.2]

Michael Tanner: [00:06:19] Selling it. [00:06:20][1.2]

Stuart Turley: [00:06:21] Yeah, they’re probably selling it to Putin. [00:06:22][1.2]

Michael Tanner: [00:06:23] Yeah and this makes me, you know, you know, the CEO, his name is what’s his name, you know, West Slawn, Canadian Lebanese interesting combo. [00:06:34][11.3]

Stuart Turley: [00:06:35] Yeah. But when you sit back and take a look at Shell, Shell and Equinox and total energy, those are all on the same board of go I’m poo poo to you on oil. And they were running as fast as they could all three of them are having to backpedal. [00:06:52][16.6]

Michael Tanner: [00:06:53] Yeah, you know I do find it funny. Returns from oil and gas typically range between ten and 20%. I don’t know where they got those numbers from. [00:07:01][8.3]

Stuart Turley: [00:07:02] Yeah, it does not make sense. [00:07:03][1.0]

Michael Tanner: [00:07:03] Well, no. What I’m saying is that seems a little low considering what gets floated around the business. But between you mean the fence post they’re probably right, because it’s probably not as it’s not as high unless, I mean, you’re obviously you’re fluctuating with oil prices and that’s very we returns from oil and gas typically range between this percentages. You’re always carrying on with that is this band of oil prices. Because obviously if oil went to $300, we might have some thousand IRR wells. [00:07:32][28.3]

Stuart Turley: [00:07:32] Right. But that 5 to 8% doesn’t even match up because the meantime, between failure on all the wind turbines and everything else, these things don’t start making money till after ten years. How can that number of 5 to 8% profit when you can’t even get them hooked into the grid for several years? I’m calling on that one. So anyway, let’s go on here. I loved your. [00:07:57][25.3]

Michael Tanner: [00:07:58] I’m with you. I’m with you. [00:07:59][1.2]

Stuart Turley: [00:07:59] I loved your analyzation on that. Okay, next one, we have Saudi Arabia signs $5.6 billion deal with Chinese EV company. Michael, I’ve been telling you for a long time, they’re not like Shell and total energy and you know, all the others by not just bailing out and going to TV. Saudi Arabia has been, oh, by the way, we’re going to make money until the day it is no longer pumped. And we’re going to then use that to pay for our social programs. And we’re going to go green we’re going to pay for green. [00:08:37][38.5]

Stuart Turley: [00:08:38] Now they’re doing it. We’re they’re also working with China. And in this article, Chinese foreign direct investments in the Arab market stood at $23 billion in 2020, one of which 3.5 billion as in Saudi Arabia. The Saudi statement said that’s going around. It’s going to be for more than half of the 10 billion investments signed on the first day of an Arab China business conference in Rhiad. [00:09:08][29.9]

Michael Tanner: [00:09:09] Well, it’s it’s two countries that if you’re from if you’re the United States, you don’t want them dealing with each other becoming buddies. It was there their times when they were cold hearted enemies and not enemies in the sense of like, oh, we’re going to go to war, But just due to poor trajectories, you’re next. This is this. It starts getting spooky Stu. [00:09:25][16.7]

Stuart Turley: [00:09:27] Oh.. this on top of BRICS. Very spooky. [00:09:29][2.3]

Michael Tanner: [00:09:30] So, I mean, even as we’re trying to get into BRICS is our podcast, but nonetheless. [00:09:35][4.3]

Stuart Turley: [00:09:37] Hey BRICS will sponsor it and, you know, they issue us visas, you know, and unlimited visas, sponsorships. Okay, let’s go to the next one here. [00:09:47][9.8]

Michael Tanner: [00:09:47] Talk about scary, How World Domination is within Tesla’s grasp. I need to hear this one. Okay. [00:09:53][6.4]

Stuart Turley: [00:09:54] Listen to this one. Imagine a firm where let me read you these bullet points where all managers and staff are expected to work as entrepreneurs with no budget limits, constraints or spending per. Performance reviews done by the staff, not the bosses. Practically no managers, no controls for major. Oh, we got to implement that here at Sandstone. No career planning, no managerial ladder to climb. Welcome to Tesla. I just I love the way he’s thinking about this. He’s also demanding everybody show back up to the office. What do you think about that, Michael? [00:10:33][38.3]

Michael Tanner: [00:10:33] Well, I mean, I think you have to put the office conversation aside, because I think it’s a nuanced conversation. I think there there are things about the in-person experience that is hard to replicate and is impossible to replicate via Zoom. Now, there’s something to be said about hybrid work, in my opinion, doesn’t work. [00:10:52][18.3]

Michael Tanner: [00:10:52] Because, well, unless it’s done on a consistent company basis that the entire company works on Monday, everybody goes to work, everybody stays home on Tuesday, everybody shows up on Wednesday. This is what my brother has where, you know, it’s you know, he works for Medtronic, which is, you know, a Fortune 50 company. You can Tiber, you work whenever you control the office you cannot shop the office. And it causes confusion and not confusion but you end up when you go to the office, you end up still engaging in interacting with people in a virtual way. So it lessens the impact of the office when there is nothing more powerful than for people around a whiteboard trying to map out a solution. [00:11:29][37.1]

Stuart Turley: [00:11:30] Absolutely. [00:11:30][0.0]

Michael Tanner: [00:11:31] You cant beat that you can’t beat that solution. Now, do I think remote work is a positive thing and should be embraced? Of course, because there’s something I mean, there’s something like when you talk about focus and being able to like get focused quality work done, it can it can be hard in office. Trust me, I deal with that more than anybody. I got to put a do not I literally have a do not Disturb sign on my office because you’ve got people that don’t care enough to walk in. They don’t care if your door shut, you know. [00:11:58][27.0]

Michael Tanner: [00:11:58] So getting focused, consistent work can be hard at the office and so that’s why I think in an ultimate case, there’s a balance but I see major pushback from hybrid. So I’d lean one way or the other. He leans in person. Great. You know, I’m not looking to work at Tesla. Conveniently. What I think is interesting is no career planning that’s hilarious. No controls from H.R sounds fun to me honestly. Practically no managers performance reviews done by staff. That’s smart all about that. [00:12:25][26.2]

Stuart Turley: [00:12:25] Very, Intel did that as well. Here’s where it all comes down to it. You also get into the new A.I. and Agile systems in here. It all boils down to this. The result of everything that we talked about is the result is a radically different kind of company. Tesla can make up to 60 model changes per day to its vehicles per day, whereas the other auto manufacturers are making model changes every 3 to 5 years. Elon’s brilliant. It doesn’t matter what company he’s done. His management and employee processes transcend markets. [00:13:05][40.4]

Michael Tanner: [00:13:06] Yeah, I mean, what he’s doing is he’s is he’s creating a culture in which if you are passionate about electric vehicles, if you are passionate about software, if you are passionate about doing stuff that other people said is impossible, you’re going to love to work because there’s no barriers, there’s no constraints on how you can work. [00:13:23][17.1]

Michael Tanner: [00:13:24] Now, some people don’t like that some people love the bureaucracy and need the bureaucracy. They need that five layers of management like I had this morning. You know, I had four meetings back to back to back to back. And, you know, how much got accomplished at those meetings? Z-E-R-O! It’s insane. So I’m with them on no meetings. [00:13:43][19.8]

Stuart Turley: [00:13:44] Well, my dad, who was a very executive commander in the military, he had a rule of 15 minutes, unless it was a very, very big meeting and was 30 minutes. And if you couldn’t get you couldn’t get past that sentence, you’re out and he’s onto the next person. There’s a lot you can get done that way. [00:14:03][18.8]

Michael Tanner: [00:14:03] Yeah. I mean, meetings should be reserved for there is an issue you have with somebody and the only thing we need to do is, is hash out the issue. That’s what a meeting is for or presenting findings in a way in like a to an audience of more than three people if you’re meeting is three people at email. [00:14:22][19.0]

Michael Tanner: [00:14:23] If you have to invite more than there’s got it there’s some threshold of people where, okay, this qualifies as a meeting. Also, just the fact that most meetings, they’re just they’re pointless. I don’t want to get thrown off because for weeks I’ve been steaming on this. So you’ve touched a nerve with that. Let’s go over let’s go back to Saudi Arabia. What’s going on there? [00:14:42][18.4]

Stuart Turley: [00:14:43] Well, we already covered Saudi. [00:14:44][0.9]

Michael Tanner: [00:14:44] Well, we more oil, fewer U.S. rigs. [00:14:47][2.1]

Stuart Turley: [00:14:47] Oh, oh, oh, sorry. [00:14:48][1.1]

Michael Tanner: [00:14:48] Something I do see here. [00:14:50][1.1]

Stuart Turley: [00:14:50] Thank you. More oil, fewer rigs. Hey, Saudis are something to see here. This one’s a bit more of a dialog with the U.S., Michael. And U.S. drillers have the potential to double oil output from existing wells, thanks to wells new. Drilling efficiency and innovation such as shale well re fracturing. [00:15:11][21.4]

Michael Tanner: [00:15:13] It’s hot now everyone’s all hot on refracts that was all that was the that was all the hot news at a hard energy. I’m skeptical at best. [00:15:21][7.6]

Stuart Turley: [00:15:21] Tell me about it. Tell me what you want or what what you’re hearing. [00:15:24][2.8]

Michael Tanner: [00:15:25] I’m skeptical that refracts work, I think that most I think that there’s a when people pitch, refracts, I think 3% of the time it’s just the depleted zone. Oh, well, paraffin on the well. Oh well, we got to clean up the person. Maybe it’s just depleted. Like maybe it’s just a bad well and refracting it as dumping a little bit more money into it to get some marginal output. You know,. [00:15:45][20.5]

Michael Tanner: [00:15:46] Because the problem with refracts is this You judge the economics of the refract based. So refraction will be half the cost of a well. Okay. [00:15:53][7.3]

Stuart Turley: [00:15:53] Right. [00:15:53][0.0]

Michael Tanner: [00:15:54] So let’s say you go in and refraction it they almost always show payout because your costs are like 70% less than drilling because you’re only talking about completing it. So, you know, everyone wants to go run these refraction economic analysis, but they don’t tell you anything because the question is usually you don’t see and people say, well, you’re guaranteed to see an increase in production but are you? [00:16:17][23.3]

Michael Tanner: [00:16:17] There’s a chance you shut the well and it doesn’t come back on there’s a chance you fracked that thing and it comes on the exact same. You know what that means? Depleted zone So the potential to double output. Sure. I have the potential to double my income here in the next six months. Is it going to happen? No…. [00:16:32][14.8]

Stuart Turley: [00:16:33] Well, is there enough data on refraction wells again? Yeah, because. Okay, well, the reason I say that is you are. [00:16:41][8.0]

Michael Tanner: [00:16:42] The problem Is it you’re fractionalized within companies there’s not unless you pick the one Emverus and see show me all the refract wells. [00:16:49][7.2]

Stuart Turley: [00:16:50] Wow. [00:16:50][0.0]

Michael Tanner: [00:16:51] Someone at Exxon who has a database of a thousand refract wells is going to be very easy can much more can give you a better opinion on okay here’s how refraction work but they only have data on wells that they’ve refract. [00:17:03][11.4]

Michael Tanner: [00:17:03] So you have to talk about how do those parameters compare across basin do they? And that’s where I you know, not to just cut you off right in the beginning, but if if you’re telling me that this whole article is based on re fracking wells, I’m out. Let me short this. [00:17:18][14.8]

Stuart Turley: [00:17:19] Well no and this all came down to from the CEO of ExxonMobil, Darren Woods, commenting about it. So they have the databases in order to take a look and say, hey, whether it is but if ExxonMobil is right, then the US may be only on the cusp of another revolution in production. So they’re betting big on it. [00:17:41][22.0]

Michael Tanner: [00:17:41] Yeah, I mean, I think it’s so it’s pretty interesting because one of his quotes is, you know, there’s a lot of oil being left in the ground. I agree with you know, we agree with that. Fracking has been around for a really long time but the science of fracking is now well understood and I’ll agree there this was interesting. [00:17:55][14.4]

Michael Tanner: [00:17:56] When I was drilling in Jerry Wells, max lateral length was typically 5000 feet now it’s 10,000 feet. Many are pushing 15,000. You’ve effectively drilled two wells and a lot less time as a vertical blah, blah, blah so production footage is the same with fewer. Well, that doesn’t mean that you’re leaving oil that’s just getting more oil in less in less shot, that’s being more efficient that’s not necessarily doubling oil output. [00:18:17][21.5]

Michael Tanner: [00:18:18] So again, this is where they talk to both sides of their mouth oh, we need to get more efficient with fracking. But really all we’re doing is drilling longer wells so that we get more. You know, I have you know, we’re having a you know, there are economics scale around that again, I am skeptic. [00:18:31][13.6]

Stuart Turley: [00:18:33] Okay. And, you know, we’ve been seeing this when I was at a lunch with Harold Hamm, and I’m still trying to get him on the podcast, by the way, and he was talking about the number of efficiencies in wells that he’s saying you sit back higher drilling efficiencies is why U.S. oil production is again heading for annual highs while the rig count has dwindled to 55 post-pandemic ends of 627. [00:18:59][26.2]

Michael Tanner: [00:19:00] Yeah here we go. Alex Kim the energy industry research, he literally says this in a quote right here. Refract can be something of a booster shot for producers. Well, that’s a good analogy. You want your booster shots Stu? Stu’s down for the booster. [00:19:12][11.9]

Stuart Turley: [00:19:13] I’m not doing any. [00:19:14][0.9]

Michael Tanner: [00:19:14] Needs it Second booster in its third one. [00:19:16][2.1]

Stuart Turley: [00:19:17] I am never doing any Booster shots again. [00:19:19][2.6]

Michael Tanner: [00:19:19] Getting your Article to refract can be something of a booster shot for Bruce a quick increase in output for a fraction of the cost of developing a new well. Again, I told you all of these refract economics look good. What I mean is that, yes, you’re obviously in a refractor scenario, going to assume you’re going to see an increase in output. But again, it’s a fraction of the cost of developing a new well. Oh, my goodness, 800% IRR. Yeah,. [00:19:45][25.7]

Stuart Turley: [00:19:45] So the real winners [00:19:46][0.3]

Michael Tanner: [00:19:46] 10% chance you you shut the well into fracking, you put it on, it doesn’t turn on. [00:19:51][4.2]

Stuart Turley: [00:19:51] So the real winners of this are the oilfield service companies like Liberty Frac. Oh, Chris, right over there’s going to be look in his chops on this one. [00:20:00][8.9]

Michael Tanner: [00:20:00] Yeah we love Reg Frack we’ve interviewed into and know Garrett Fowler over there very well he’s the COO, he was quoted in this article as saying they can be up to 40% cheaper. So, again, that’s not a fraction of the cost that’s about a little less than half but it gives you an idea of how much fracs are drilling costs. [00:20:16][16.1]

Michael Tanner: [00:20:17] I mean, when someone tells you $10 million, well, think 4 million of that’s going to the frack. If you’re in here, West Texas, and you’re going high volume, high water, slick water frack, you did 6 million bucks. If you’re doing, say, 2 million to £10 million a year to £10 million of sand by the babies up. [00:20:35][18.5]

Michael Tanner: [00:20:35] And if you want to use Liberty’s quiet frack fleet, add another 250 K on that sucks to your net. But I’m out on refracts, not out on refracts. I shouldn’t say I’m out. I’m skeptical because I don’t think there’s as much meat on the bone there. And if that’s all that this article is basing its statistics on in order to say we’re going to double air, I’m good. Whoever this Alex guy is, come on the podcast, let’s debate, let’s debate, because Im not investing in this [00:21:02][27.1]

Stuart Turley: [00:21:03] I will reach out to him. [00:21:04][0.9]

Stuart Turley: [00:21:04] I’ll reach out to him because that’s important when I read this, I was like, man, I got a I got to get Michael on this one he’s going to be so proud of me. I got a good article for him. [00:21:14][10.1]

Michael Tanner: [00:21:15] One of the quotes considering inflation supply chains issue, rising wages, all for that and a great time for operators to start looking at wells for refrac opportunities again I’m yeah I know just drill again I just have the issue that most in my experience refracts it’s like a 5050 shot whether they work and then, then what you depleted zone my bad. [00:21:40][25.2]

Michael Tanner: [00:21:41] Now maybe in again I think when you get into some of these core shale basins which a lot tighter formations who are maybe fracked with older technology, there’s that opportunity, but there’s only so much lateral like you have. So it’ll be interesting to see if, again, I’m out on the refrac, I’m out on the booster shot. [00:22:00][18.4]

Stuart Turley: [00:22:00] Then your out of the booster. No booster for you. [00:22:01][0.6]

Michael Tanner: [00:22:03] That’s just me Booster. Don’t tell me Refract that’s not going to encourage me to get on your point when you start calling a booster. [00:22:10][6.4]

Stuart Turley: [00:22:10] No you lose me a booster because I would curl up in the fetal position, throw up, and then I’d like get my armament and start playing Death Invaders or some computer game. I’m never taking a shot again, so. [00:22:23][13.1]

Michael Tanner: [00:22:24] Well, good. [00:22:24][0.2]

Stuart Turley: [00:22:25] Thats it for me man. [00:22:26][0.2]

Michael Tanner: [00:22:26] All right, well, we’ll kick it over and we’ll have a quick moment of silence for oil and gas prices. That was a name in. But because it was a pretty rough day today, guys. Oil currently trading 6737. That’s down 4% today off the back of the S&P and the Nasdaq, both up one and 1.7 percentage points respectively. [00:22:46][19.9]

Michael Tanner: [00:22:47] Again, what’s going on is mainly due to the US Fed meeting this week it’s expected that they’re not going to raise rates, but there’s an expectation that with the economy continuing to show life in it, that it not this meeting but the following meeting in July, they will raise rates. So I think people are are fairly I don’t want to say concerned about it, but I think they are definitely the sentiment around where oil prices are going are not good. [00:23:11][23.9]

Michael Tanner: [00:23:11] We saw Goldman Sachs yesterday go ahead and cut their oil price forecasts so they obviously aren’t interested in hiring Stu anymore. So we’ll be lucky to have him back on the show long term, which is awesome makes him a little cheaper. He’s not he’s not cheap, guys we’ve got to try to keep him around he ain’t cheap so thank goodness Goldman Sachs is out of the running now. [00:23:30][18.9]

Michael Tanner: [00:23:31] And to give you an idea, they brought that down they brought Brant down to 86 from 95 and specifically WTI. They brought down to 81 from 89. So they’re there they’re cutting it hard. Kepler analyst Matt Smith, one of 50 Kepler analysts named Matt Smith. I mean, talk go by. Matthew Mann we get it whatever Matt Smith. [00:23:51][20.4]

Michael Tanner: [00:23:52] Goldman is capitulating on their bullish price forecast appears to have been the catalyst to kickstart selling today. If that’s the truth Matt Smith we should all go home and quit because I don’t want to live in a world where Goldman Sachs oil and gas analysts are kickstarting selling today but if that’s the case, it is what it is. [00:24:10][17.9]

Michael Tanner: [00:24:10] We did see some stuff come out from UBS that was talking about interest rates are expected to stay the same this month, as I mentioned in the open. But also there, the sentiment is, you know, it’s their numbers in next month. And again, this is Robert Yeager he’s at a UBS I’ll make him up with a really long note. And are there people are really tuning in to what Jay Powell is going to say on this Friday he’ll come out about noon and meet and, you know. [00:24:32][22.4]

Michael Tanner: [00:24:33] If he shocks the world Stu and comes out and rate hikes, I mean, we could see $60 oil very quickly. I mean, that’s what people have to realize is if something unexpected happens, who knows? I mean, the market seems to think there’s no cuts we are up again percent on the S&P. GREEN on the Nasdaq, You know, Dollar was up a little bit. So I don’t think people are as. [00:24:53][20.0]

Michael Tanner: [00:24:53] So. Again, I think the sentiment around what Jay Powell is going to do, which is going to have a huge effect on oil prices, is on the same. We saw natural gas trading $2.27 after opening just below a two dollars and $0.22. So it’s good to see that. [00:25:08][14.4]

Michael Tanner: [00:25:08] Other than that, pretty quiet stuff. I mean, we got Chesapeake releases, their corporate sustainability report, so we’ll pass on reading that. Let somebody else listen to that that’s really about it. Guys Stu what do you have? What should people be scared about? [00:25:22][13.8]

Stuart Turley: [00:25:23] There’s there’s some really stuff coming around the corner I’ll go into here in a little bit I’m working on it. [00:25:28][5.2]

Michael Tanner: [00:25:28] I love I’m mostly joking when I say that and I love how you take me seriously you just used to back out. Oh, man. If only you knew what I knew. [00:25:34][6.2]

Stuart Turley: [00:25:35] But then I’d have to be in the knee and talk too hard at time. [00:25:38][2.5]

Michael Tanner: [00:25:38] Then but then I’d have to kill you then I…. [00:25:42][3.8]

Stuart Turley: [00:25:43] Is it Tonya Harding that beat the snot out of her with a stick. [00:25:45][2.0]

Michael Tanner: [00:25:46] Yeah, Yeah. No, it’s true. [00:25:47][1.0]

Stuart Turley: [00:25:48] Okay,. [00:25:48][0.0]

Michael Tanner: [00:25:50] That is funny. Yeah. I mean, I don’t really have anything else, but, you know, we’ll keep it light we’ll keep it light this week. I know. I’m off Thursday show, so you’ll be stuck with Stu, so I just apologize up front hopefully you guys will still tune in. [00:26:05][14.9]

Michael Tanner: [00:26:05] But with that, guys, we won’t let you out of hereto get back to work. We appreciate you checking out world’s greatest podcast Energy News Beat for Stuart Turley. I’m Michael Tanner we’ll see you tomorrow, folks. [00:26:05]