Daily Standup Top Stories
Texas producers hope debt limit deal puts oil and gas projects on the fast track
WASHINGTON — Congress tucked into the debt limit-raising law a host of provisions to accelerate new energy projects, such as pipelines that could move cheap natural gas from West Texas to energy-thirsty consumers in California […]
Fossil fuels got a boost from lawmakers aiming to fix Texas’ grid, while renewable energy escaped stricter regulations
Texas legislators largely ignored pleas for reform from environmental advocates during this year’s legislative session — failing to act on lowering energy use, reducing greenhouse gas emissions and lessening the disproportionate impact of pollution on […]
Highlights of the Podcast
00:00 – Intro
03:35 – Texas Producers Hope Debt Limit puts oil and gas projects on the fast track
07:33 – Fossil Fuels got a boost from lawmakers aiming to fix Texas grid while renewables energy escaped stricter regulation
11:37 – Market Update
13:09 – 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 Wednesday, June 14th, 2023. As always, I am your humble correspondent Michael Tanner here in Dallas, Texas, Rocking a solo show today Stuart Turley is out on assignment, so we wish him well. [00:00:31][16.1]
Michael Tanner: [00:00:31] He will be back tomorrow rocking a solo show I am in route to the greatest place in the world Denver, Colorado will be attempting to go downtown and party. Congrats to the Denver Nuggets. First off, I’d be remiss to say our first championship ever as as an organization I’m a local Denver guy it’s been a great, really like six seven years for us. Even going back to 2015 when we won the Super Bowl with Peyton Manning, going back to 2013, those Super Bowls. [00:00:58][26.8]
Michael Tanner: [00:00:58] And then the you know, we’ve got the Avs obviously winning last year at Denver Nuggets winning this year. It’s been it’s been pretty awesome to see all the success prime time coming to see you so great time in Colorado sports. So I’m fired up I will be back there on Thursday, Friday, Saturday, be back Sunday so that I will be in the seat ready to deliver. You guys the news I’m Stu will take care of you tomorrow so you can suffer through one of his solo shows, much like you’re about to suffer through this. [00:01:25][27.3]
Michael Tanner: [00:01:26] I’m going to keep you pretty short today you know, we officially are past the debt ceiling deal up in Washington. So I think it’s, again, one more helpful time to kind of look back and say, okay, what was in it? What’s not in it? What do we think the situation moving forward is specifically for oil and gas producers, Stu, got a nice article that will cover. [00:01:46][19.7]
Michael Tanner: [00:01:47] Then next thing will do is is come back here to the state of Texas they had a really interesting, you know, decision title of the article is Fossil Fuels got a Boost from lawmakers aiming to fix Texas grid While renewables energy escaped stricter regulations. They went ahead and had a huge Senate debate. Multiple bills either got passed or failed and we’ll see who came out on top great article that covers that. [00:02:11][24.6]
Michael Tanner: [00:02:12] I’ll pop over and cover a little bit about what happened on oil prices today they were all the way up to $69, yahoo! And then that’s really it. We did see the API drop their estimates for the the EIA numbers. So I’ll cover all that and a bag of chips in my segment but first, guys as always check us out world’s greatest website www.Energynewsbeat.com Both these articles and what to cover are courtesy that website. [00:02:35][22.7]
Michael Tanner: [00:02:35] Stu does a great job of maintaining that and making sure it’s updated with all of your top line energy news Dashboard.Energynewsbeat.com the best place for all your energy news. We are rapidly rolling out V2. We’ve actually got a landing page coming your way. So very quickly here we’re going to have the link in the description below where you can sign up for version two and get some early access, which is going to be great. [00:02:58][22.7]
Michael Tanner: [00:02:58] Because that Dashboard is really the best data on the market. It’s definitely at some point going to cost you know, if you if you get in now, you might be able to what do you say, get some long term free and early subscriber access to the when this thing becomes $3,000 a month, you pay a hundred or something, who knows, we’ll see where teams hard at work at that. [00:03:19][20.4]
Michael Tanner: [00:03:20] But let’s go ahead and dive into today’s show I think the best place to start really is, with this debt deal. You know, we saw that get officially passed yesterday, you know, to kind of rewind a second. The fallout specifically for the oil and gas and energy business was really the regulations surrounding NEPA. NEPA stands for the National Environmental Policy Act. [00:03:43][23.7]
Michael Tanner: [00:03:44] And one of the things that was included in this debt ceiling negotiation from the Republican side of the aisle was, hey, if we’re going to have all of this spending for renewable energy, and this was also a position taken by some of the Democrats, we need to make large scale energy projects permit quicker. [00:04:01][16.7]
Michael Tanner: [00:04:01] And so what happens under these new rules is NEPA is now basically attempting to streamline and make sure that multiple agencies are really all three doing the same job. You know, particularly there are, you know, particularly the agreement to approve the Mountain Valley pipeline in West Virginia to Virginia has gotten the Sierra Club all riled up. [00:04:24][23.4]
Michael Tanner: [00:04:27] We could spend all the time in the world and I’m not the one to talk about the political fallout from the debt ceiling still will do that and probably scare us all. What I look at it is large scale energy projects need a level of regulation, but they don’t need the level of regulation that they’ve always had I think I talked about this in a previous solo show. [00:04:44][17.6]
Michael Tanner: [00:04:44] I mean, the NEPA process is absolutely insane you’re talking about Wells if drawing them up mines years in this process, pipeline’s years in this process, large scale offshore wind years in this process, and I’m down for cutting that time down now. I think, you know, they will always find a way to regulate or to regulate through legislation or legislate through regulation. Excuse me, but I think it’s going to be it’s going to be very fascinating about how these new rules are applied. I can guarantee you there’s some consultants, there’s some regulatory consultants running around now in the energy business reading whatever these documents are. [00:05:23][38.9]
Michael Tanner: [00:05:24] You know, again, when your companies like you and your clubs like Sierra Club and, you know, the Center for Biological Diversity come out and are against it. I mean, that tells you all you need to know about where the rules are taken. This is going to apply not just for large-scale energy projects like pipelines, but it’s probably going to help get oil and gas fields develop, no doubt. [00:05:44][20.1]
Michael Tanner: [00:05:44] So, I mean, all in all, if you’re in the oil and gas business where I am, this is going to be helpful. I think if you’re in the midstream business I think if you’re in the mining and metals business, this is going to be a lengthy renewables business it’s going to help you. Again, they want slow regulation. It’s clear you read this article I didn’t even mention the title of the article Texas Producers Hope Debt Limit puts oil and gas projects on the fast track. See, that’s how bad I am when I’m doing these solo shows. I need to get to the article title at the end. [00:06:14][30.2]
Michael Tanner: [00:06:15] But I say all that to say. The debt deal I think is good for oil and gas. It’s good for energy, all types of energy. I’m all about streamlining regulations and go from there. You know, Texas at the same time of this little national battle going on with the debt ceiling, Texas within its own borders was having sort of a battle. Obviously, there’s this stuff going on with the attorney general we’re not going to dive into all of that. But really, it was these are a slew of Senate bills which were attempting to do a lot of different stuff. [00:06:42][27.1]
Michael Tanner: [00:06:42] So first off, we had I mean, you had a slew of things. You had Senate Bill 258, you had Senate Bill 1017, you had Senate Bill 1860 and House Bill 33. So let’s let’s start with what those bills are and what they were. So these were all surrounding, again, title of the article, Fossil Fuels got a boost from lawmakers aiming to fix Texas grid while renewables energy escaped stricter regulation. [00:07:08][26.3]
Michael Tanner: [00:07:09] So this fight directly is going on specifically about how do we regulate the or how do we regulate the energy business moving forward. And these four bills, one of them which failed, two of them which passed mainly were requiring more electric. [00:07:24][15.2]
Michael Tanner: [00:07:25] So Senate Bill 258 included a 1% energy efficient goal on replacing items. You know, the quote by State Representative Rafael Anchia, Democrat from Dallas. Energy efficiency programs are really the lowest-cost cost solution to energy waste. You know, as much as I don’t like to agree with a Democrat, he’s probably right on that standpoint. They really are when you look at sort of the large scale you that the replace you know, replacing the appliances is a very from an economic standpoint looks very good. I mean, you have to think about, you know, how did we cut down on smog in L.A.? Well, we put catalytic converters on, you know, we we we we completely we change tailpipe designs. And in ten years, we got rid of it all. [00:08:09][44.6]
Michael Tanner: [00:08:09] So I think when you talk about what are ways to cut energy off, to cut emissions, I’m all for upgrading and going to more efficient appliances you’re not going to see any faults there. I do again, think the real question is who’s going to pay for that? If you’re going to push out all these, you know, higher cost thing, higher cost items onto folks, who’s going to pay for that? And, you know, everyone’s guy got to go buy a new fridge, but time to get in the fridge business. Here’s what did pass, though. [00:08:38][28.7]
Michael Tanner: [00:08:38] We’ve got Senate bill 1080 blocks cities from adopting ordinances that prohibit engines based on their fuel sources. Starting September 1st, we’ve got another bill, 1860, targeting a, quote, proposed climate charter in El Paso, quote unquote, Proposition K, which El Paso residents voted down early in May, would have amended the city’s charter to create aggressive renewable energy goals and make controlling carbon emissions a cornerstone of major city decisions the Senate bill, which is still awaiting approval by the governor, is going to and require the city to get permission from the legislature before approving changes. [00:09:09][30.5]
Michael Tanner: [00:09:09] Basically the opposite of what Colorado did, which was give all the power to the cities. Texas in classic in what I would say non Texans fashion taking power for themselves and I just joking on that is Texas pride themselves as a freedom country when they’re now consolidating all the power so it does crack me up a little bit. [00:09:26][17.1]
Michael Tanner: [00:09:26] But I think it’s smart to have one body they can do I think you start having multiple different sets of rules it gets actually gets, as we’re seeing in Colorado, it’s extremely difficult to permit well, because of this exact reason. [00:09:37][10.5]
Michael Tanner: [00:09:37] So, you know, I think one of the interesting this article points out the ignored extreme heat and, you know, I’m not saying that that I’m someone who should be, you know, expounding on heat. I don’t I do horrible in heat. This will be my first actual Texas summer and I’m I will die. So yeah I think there should have been something in here to specifically make me cooler but they this article does go to point out that we did ignore extreme heat. [00:10:01][23.4]
Michael Tanner: [00:10:01] But again, you see where the tides are turning on all of this stuff you know, it’s there’s a lot of other stuff in this bill it’s funny trying to install air can. In prisons. I mean, I’m for that you know, I don’t think we should be like hearing, like, keep prisoners out of jail cells just because there’s no air conditioning. So maybe figure out a way to allocate some money there. [00:10:22][21.0]
Michael Tanner: [00:10:22] But there’s some interesting things that we did see a lot of environmental justice proposal die. So big day in the Texas Senate in the House a lot of these bills are going to to Governor Abbott to sign. But, you know, again, the themes seem to be people are getting to the point of regulations are rolling back. [00:10:39][16.6]
Michael Tanner: [00:10:40] I mean, let’s quickly go over and cover what’s going on in the oil and gas markets. Know we did see prices rise about three or four percentage points currently on time stands about 545 here on the 13th and we’ve got oil trading 6914. [00:10:54][14.3]
Michael Tanner: [00:10:56] And really, you know, you know, if you go to Reuters, they’re going to tell you that, you know, China cut rates. So you know more, you know, if they’re now going to know need to start doing quantitative easing in their markets, it’s only going to, you know, continue to flow the cheap goods so it’s pretty interesting you know we can thank Xi Jimping for today’s news on today’s oil’s price. [00:11:16][20.4]
Michael Tanner: [00:11:17] You know we did see about a 1.4 million barrel build from the crude oil or an estimated crude oil reserve rise. EIA will confirm that number tomorrow. API dropped their estimate today. So, you know, even on the back of that, you know, again, the financial markets are driving where crude oil goes to China, cutting their overall interest rates, which, you know, hey, they’re doing the same thing we’re doing so at least we’re all going down the same spiral circle. [00:11:41][24.1]
Michael Tanner: [00:11:41] But I’m going to let you guys get out of here appreciate you guys sticking with us. Please check us out. World’s greatest website www.Energynewsbeat.com for Stuart Turley I’m Michael Tanner we’ll see you tomorrow, folks. [00:11:41][0.0]
For Questions Email us at Questions@Energynewsbeat.com
