Daily Standup Top Stories
Renewables growth did not dent fossil fuel dominance in 2022, report says
LONDON, June 26 (Reuters) – Global energy demand rose 1% last year and record renewables growth did nothing to shift the dominance of fossil fuels, which still accounted for 82% of supply, the industry’s Statistical […]
Larry Fink “ashamed” to be part of ESG political debate – Hypocrisy Has No Limits
BlackRock CEO Larry Fink said he’s no longer using the term “ESG” (environment, social and governance) because it is being politically “weaponized” and he’s “ashamed” to be part of the debate on the issue. Why it matters: How the […]
Oilfield Service Giants Are Betting Big On ‘New Energy’ Tech
Oilfield services companies are ramping up activity in low-carbon energy. Service companies focused on equipment and technology naturally benefit from new businesses earlier in the cycle. Current revenues from new energy businesses for the top […]
Saudi Aramco looks to China and India to prop up oil markets
Aramco’s CEO Amin Nasser believes that the oil market fundamentals remain generally “sound” for the rest of the year. “Although China is facing some economic headwinds, the transport and petrochemical sectors are still showing signs […]
OPEC says oil demand will hit 110 million barrels per day in 2045
Global oil demand will rise to 110 million barrels a day in two decades, bringing the world’s energy demand up 23%, said OPEC. “We see global energy demand increasing by 23% through 2045,” said the […]
Highlights of the Podcast
00:00 – Intro
02:53 – Renewable growth did not dent fossil fuel dominance in 2022
06:26 – Larry Fink now says, quote, He’s ashamed to be part of the ESG political debate
08:13 – Oilfield service giants are betting big on new Energy Tech
09:59 – Saudi Aramco looks to China and India to prop up oil markets
12:19 – OPEC says oil demand will hit 110 million barrels per day in 2045
14:07 – EU looks into blocking out the sun as climate efforts falter.
17:34 – Market Updates
20:31 – 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 Wednesday, June 28, 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][24.2]
Stuart Turley: [00:00:40] It’s a beautiful day in the neighborhood and it is hot, Wow! [00:00:44][4.5]
Michael Tanner: [00:00:45] Yeah. I mean, it’s it’s absolutely absurd I don’t know how people live here it’s great we can’t even think about it because it’s it’s so unbelievable. Thankfully, we have a much cooler menu lineup tonight Stu got some great stories. First up, Renewables growth did not dead fossil fuel dominance in 2022 report says. [00:01:07][22.1]
Michael Tanner: [00:01:08] Next stop, BlackRock CEO Larry Fink, quote, ashamed to be a part of the ESG political debate, something the ENB team has been on for years now. Next up, Oilfield Service giants are betting big on, quote, new energy tech we’ll see how that plays out for them. Next up, Saudi Aramco looks to China and India to prop up oil markets and then ending specifically with OPEC they say demand will hit 110 million barrels per day in 2045. [00:01:39][31.2]
Michael Tanner: [00:01:40] Stu will kick it over to me then I’ll cover what’s happening in the oil and gas financial markets. Oil down to 6790, mainly off because of consumer confidence data that, you know, again, this new interest rate increase, I wouldn’t say new, but this much maligned forecasted increase that’s coming here in July, as we ever creep closer will begin to hit and I think that’s what we’re seeing on the market side. [00:02:02][21.2]
Michael Tanner: [00:02:02] We’ll break it all down and a bag of chips, guys but first, check us out world’s greatest website, www.EnergyNewsBeat.com It’s were all the stories you are about to hear come from the description below. Our team does a great job of curating that to make sure you can hit all the different times against all of the articles we’re about to. [00:02:18][15.6]
Michael Tanner: [00:02:19] Stu Curates Energy News Beat making sure it’s all of your top energy news. You can also check out Dashboard.EnergyNewsBeat.com the best place for your data and energy news combo definitely going behind a paywall, guys, so get it while you still can. Where do you want to begin today’s show Stu? A lot, we have a lot of stories going on. [00:02:36][17.6]
Stuart Turley: [00:02:36] Oh, and you know what? I go, I don’t think I’ve ever seen such nuttier stories that’s out there this is going to be entertainment. Okay, First one, Renewable growth did not dent fossil fuel dominance in 2022 this report says, this is just interesting Global Energy demand rose 1% and record renewables growth did nothing to shift the dominance of fossil fuels, which accounted for 82%. Michael of supply. Wow! [00:03:15][38.5]
Michael Tanner: [00:03:16] I love this quote we are still heading in the opposite direction that is required by the Paris Agreement. Well duhhh! [00:03:23][6.1]
Stuart Turley: [00:03:25] The annual report, a benchmark for the industry, was published for the first time by the Energy Institute, together with salted seized from KPMG and Kearney after they took it over from BP, which had authored it since the 1950s. [00:03:41][16.0]
Stuart Turley: [00:03:43] Global consumption further on down in their energy demand, grew around the 1%, but demand was still around 3% above pre-COVID levels. Every energy consumption grew everywhere, apart from Europe, including Eastern Europe. Renewables, excluding hydropower, accounted for 7.5 of Global Energy consumption around 1% higher it still remained 82% from fossil fuels. [00:04:18][35.0]
Michael Tanner: [00:04:19] I mean, we still need power we can’t just say, Oh, we’re going to solar, sorry, you don’t have power. People won’t accept that. [00:04:28][8.5]
Stuart Turley: [00:04:28] No,. [00:04:28][0.0]
Michael Tanner: [00:04:29] This is not surprising study. [00:04:30][1.2]
Stuart Turley: [00:04:30] Whole was 35.4% I think that’s up I need to go double check. Oil consumption was 2.9 million barrels per day so was up increased up to 97.3 million barrels per day with growth slowing year on year. [00:04:51][20.3]
Michael Tanner: [00:04:51] 97 million barrels of oil consumed per day. [00:04:56][4.5]
Stuart Turley: [00:04:57] We got another discussion coming up on that. [00:04:59][2.0]
Michael Tanner: [00:04:59] And they want and they want to ban and they want to move all the rules it’s insane Stu what’s next? What’s going on in Aspen. [00:05:06][7.4]
Stuart Turley: [00:05:07] Well, in that report, let’s go to Larry Fink when you sit back and you think you and I have talked about ESG hypocrisy that is the thing. And when yesterday’s show you and I talked, you almost boomed this article. What was BlackRock investing in? [00:05:29][22.3]
Michael Tanner: [00:05:31] Nvidia, Microsoft, Apple, I mean, literally slaves. [00:05:35][3.4]
Stuart Turley: [00:05:35] Chevron. [00:05:35][0.0]
Michael Tanner: [00:05:37] Chevron, Exxon. [00:05:37][0.0]
Stuart Turley: [00:05:39] Exxon, and they have been doing the old bait and switch kind of a thing here and saying we’re ESG. We talked about it yesterday how in the heck can Google be ESG since 2007 and those servers put out more Xi than the politicians in DC? It’s unbelievable. [00:05:59][20.0]
Stuart Turley: [00:06:00] Okay. So Larry Fink now says, quote, He’s ashamed to be part of the ESG political debate. This came out yesterday. We put we recorded that on Sunday, that original stuff. He said he’s no longer using the term ESG because it’s politically weaponized and he’s ashamed to be part of the debate on the issue. Why it matters because BlackRock is the largest asset manager and it manages 9.2 trillion. [00:06:34][33.9]
Michael Tanner: [00:06:35] With a T. [00:06:36][0.3]
Stuart Turley: [00:06:36] T trillion. Now, here’s the thing. BlackRock’s bullish outlook on responsible environment in a social governance investing has been blasted by conservatives woke capitalism has drawn boycotts from Florida and Texas. You got to love this. [00:06:55][18.7]
Michael Tanner: [00:06:56] I also love this. They had this conversation at the Aspen Ideas Festival. [00:07:01][5.8]
Stuart Turley: [00:07:02] Oh, geez. Oh, geez. [00:07:04][1.3]
Michael Tanner: [00:07:04] Yeah. You know who would have been there if he was not if he didn’t kill himself? Epstein, That’s who I that’s who shows those are the type of people that show up to these events. [00:07:14][10.0]
Stuart Turley: [00:07:15] Actually, John Denver would have been, too, because his place was up there beautiful place. Right before he I met him. [00:07:22][6.7]
Michael Tanner: [00:07:23] Aspen Ideas Festival. [00:07:24][0.6]
Stuart Turley: [00:07:24] Right. [00:07:24][0.0]
Michael Tanner: [00:07:25] That’s spooky. [00:07:26][0.3]
Stuart Turley: [00:07:26] Yeah. Okay. [00:07:27][0.6]
Michael Tanner: [00:07:28] Those are the dark rooms we talk about, those are the dark rooms that we talk about. [00:07:32][4.2]
Stuart Turley: [00:07:33] Yeah, and never mind. Yeah. [00:07:36][3.5]
Michael Tanner: [00:07:37] They do show. [00:07:37][0.3]
Stuart Turley: [00:07:38] Okay, let’s go to Oilfield Giants I like this story, Michael. Oilfield service giants are betting big on new energy tech. Oilfield service companies are ramping up activity in low carbon energy. Now, what is that? Low carbon energy. Looking to take advantage of the soaring investments in clean energy. [00:07:59][20.9]
Stuart Turley: [00:08:00] I like this because it’s talking about geothermal. I’m. I really think geothermal has got a pretty good thing that they can do. Baker Hughes, for example, booked almost 300 million of new energy orders in the first quarter of 2023, CEO Lorenzo Somali said on earnings call. New energy is expected to account for 10% of Baker Hughes Tech gas technology within four years is huge. [00:08:30][30.0]
Michael Tanner: [00:08:31] What’s what I just find crazy is that these energy, you know, and not crazy, but just the fascinating thing is you see the forefront of technology being attacked by service company, not operators. [00:08:41][9.9]
Michael Tanner: [00:08:42] Operators are generally some of the last people to adapt technology and all of this increased efficiencies when it’s the service companies who are pushing it. So I love this if we’re ever going to get investment and brought in, but it has to be done and I applaud these companies for doing it. [00:08:57][15.7]
Stuart Turley: [00:08:58] And think about how many orphan wells are out there that actually could be tapping into geothermal, I love me some geothermal. And here’s where we’re going to talk about this next week, Michael, is the difference between heat pump and geothermal pump. Heat pump drives me nuts and we’ll go into that next week. Okay. [00:09:16][18.3]
Michael Tanner: [00:09:17] Okay. [00:09:17][0.0]
Stuart Turley: [00:09:18] All right. Saudi Aramco coming around the corner Dude, Saudi Aramco, looks to China and India to prop up oil markets. What do you think my next words are going to be here? Well, duh, yes, sanctions don’t work. And Saudi Aramco’s really taking advantage of this because Rush has they’re selling everything they can below. You know, they’re giving India and China some really good brakes. [00:09:46][28.4]
Stuart Turley: [00:09:47] Saudi Aramco is beefing it up and they’re also doing it, let me jump into this. Is bullish on oil markets for the rest of 2023 as demand from China and India is expected to be strong despite the global. [00:10:04][17.3]
Stuart Turley: [00:10:05] Here’s a quote, We believe that oil market fundamentals remain generally sound for the rest of the year, CEO Aman Nassir said Energy Asia Conference at the Malaysian capital. Despite recession risks in several OECD countries, the economics of developing countries, especially China and India, are driving oil demand of more than 2 million barrels per day this year, said Nassir. [00:10:34][29.1]
Michael Tanner: [00:10:34] Oh, well, I mean, why would you not? Why would you not if you’re Saudi. [00:10:39][4.7]
Stuart Turley: [00:10:40] Saudi Arabia and again, I keep handing it out to Saudi Arabia they are using their natural resource. They’re going to pay for hydrogen, They’re going to pay for all this stuff, they’re going to go green, but they’re going to do it in a timely manner. [00:10:53][13.2]
Stuart Turley: [00:10:54] Indian demand is equally robust, with the latest readings for May showing both gasoline and diesel breaking records. Oh, Wow! While the energy transition picture is hardly rosy, even at the tip of the transition sphere, the picture is hardly rosy is what you said. [00:11:21][27.3]
Michael Tanner: [00:11:22] You know, I mean, this is what’s funny you’re talking we’ve only got 97 million barrels a day today. They’re forecasting 110, well, where’s the IEA in all this situation? Where’s our friends at the IEA? Where’s the orderly transition? [00:11:37][14.9]
Stuart Turley: [00:11:39] The IEA yesterday put out and said that by 2028, you and I covered this, that they do not need to be investing, investors do not need to invest because it’s going to go below that in 2028. So the IEA is over here going renewable and energy transition is going to happen without oil and gas get rid of oil and gas. Saudi Aramco and Saudi Arabia going let’s be realistic IEA dumb as a rock Saudi Arabia let’s get there, but let’s get there at least slow. I loved it. [00:12:12][33.0]
Michael Tanner: [00:12:12] No, I think I mean, I’m going too much, I’m going to trust OPEC oil demand production forecasts over the IEA. I’m sorry, you know, I’m just going to. [00:12:22][9.8]
Stuart Turley: [00:12:22] Leaders of Saudi Aramco and Saudi Arabia over the IEA, they are bought by the WHO, by the UN and everybody else. [00:12:30][7.7]
Michael Tanner: [00:12:31] Faucci, Faucci,. [00:12:31][0.0]
Stuart Turley: [00:12:33] Yeah Yeah Yeah Faucci. [00:12:33][0.1]
Michael Tanner: [00:12:33] I just I throwing Faucci out there, Is that all you got? [00:12:37][4.1]
Stuart Turley: [00:12:38] No, I got one more here, this one. Okay. I thought this was like, what was the movie that was a. Oh, it was The Spy who Shagged Me or whatever it was, it was a. [00:12:51][13.0]
Michael Tanner: [00:12:51] Austin Powers the Spy. [00:12:52][0.9]
Stuart Turley: [00:12:52] Austin Powers thank you, this sounds like an Austin Powers movie hold that thought okay. EU looks into blocking out the sun as climate efforts falter. I could just see Mike Myers running around and going, you want to shag? You know, that’s what this all reeks of. I got to give a shout out to David Blackmon he again pointed this out to me. [00:13:20][27.8]
Stuart Turley: [00:13:20] The European Union will join an international effort to assess whether large scale intervention, such as deflecting the sun’s rays or changing the Earth’s weather patterns, are viable option for fighting climate change. [00:13:39][18.8]
Michael Tanner: [00:13:40] More about it. [00:13:40][0.5]
Stuart Turley: [00:13:41] These technologies, the further quote these technologies introduce new risk to people and ecosystems really, while they could also increase power imbalances between nations, spark conflicts, raise a myriad of ethical and legal and governance and political issues. [00:14:03][21.7]
Michael Tanner: [00:14:05] I can get behind this I can get out blocking the sun for climate change these environmentalists are trying to win me over. They’re killing the whales and now they’re trying to block the sun out? You’ve almost gotten me to your side. [00:14:17][11.9]
Stuart Turley: [00:14:18] Oh, don’t start me on the Whales again, dude, you’re killing me. Save. [00:14:21][3.1]
Michael Tanner: [00:14:22] Hold on. I’m just getting a call here. Oh, yes my tickets to the Aspen Ideas Institute have been booked? [00:14:28][5.9]
Stuart Turley: [00:14:28] No, that was actually it was Free Willy he was calling up to grump at you so that. [00:14:35][7.2]
Michael Tanner: [00:14:36] They’re going to block the sun out. Insane. [00:14:38][1.6]
Stuart Turley: [00:14:38] Insane I mean, this is absolutely the nuttiest. The potential options also include Michael, stratospheric aerosol injection, which involves increasing the concentration of particles in the atmosphere to reduce the amount of sunlight reaching their service this almost sounds like women going in and getting their lips blown up by Botox. This is absolutely. [00:15:04][25.7]
Michael Tanner: [00:15:05] Dog. [00:15:05][0.0]
Stuart Turley: [00:15:06] Oh, this is the Botox let’s put some Botox in the atmosphere. [00:15:10][4.0]
Michael Tanner: [00:15:11] I’m down to just drop nukes I’m down to just detonate nukes in the sky. I’m all about it [00:15:15][3.9]
Stuart Turley: [00:15:15] Where’s Joe in the volcano when you need him. Because the volcano is the number one way to cause global cooling. Right? [00:15:24][8.7]
Michael Tanner: [00:15:24] Yeah. We need Pompeii that’s exactly what we need. [00:15:27][2.1]
Stuart Turley: [00:15:27] Yeah,. [00:15:27][0.0]
Michael Tanner: [00:15:27] Mount St Helens. [00:15:28][0.5]
Stuart Turley: [00:15:29] You can’t buy this kind of entertainment, you have the IAEA, You have Saudi Aramco battling we got more of this. You got the failure of renewables, you got the EU knuckleheads go lower over there. [00:15:45][16.5]
Michael Tanner: [00:15:46] I mean, it’s hypocrisy at its finest and convenient. [00:15:51][5.1]
Stuart Turley: [00:15:52] There were times three years ago, you and I were looking for stories to talk about. We don’t have that problem now. [00:15:58][5.6]
Michael Tanner: [00:15:58] There’s too many. Too many. I can’t keep track of the onslaught that Stu just sends over just Boom! Boom! Boom! [00:16:05][6.7]
Stuart Turley: [00:16:05] Oh, it’s funny. And you get you got to go knock on boom in this one. Im Booming this one all right. Hey, after you now, man. [00:16:11][5.9]
Michael Tanner: [00:16:12] Yeah, I mean, there’s not much. Guys, We saw oil prices tumble here to about 6786. That’s down about $2 from the open this morning. It’s kind of funny. We saw U.S. consumer confidence rise to its highest level in about a year and a half, mainly due to some renewed labor market optimism. The unfortunate part is due to that, we’re definitely going to have a rate increase, as I mentioned, in the open and the bank. And Jerome Powell last week signaled there’s at least two more. [00:16:39][27.1]
Michael Tanner: [00:16:39] So the fact that we’re seeing increased consumer confidence only means the Fed. I mean, the Fed’s going to again, the Fed is not your friend. The Fed with the more you are happy, the more the federal raise rates so just lie is the solution. No, it’s not the solution. [00:16:55][16.3]
Michael Tanner: [00:16:56] But really, it’s what it is. If you want the Fed to stop raising rates, tell them the economy sucks that sucks you’ve done it it’s success. I’ve run out of money no need to print, no need to raise but do guys give you an idea since March 2022, 500 basis points, interest rates been raised. [00:17:13][16.9]
Stuart Turley: [00:17:14] The Fed is incompetent. [00:17:15][1.1]
Michael Tanner: [00:17:16] Yeah, they had a Yeah, yeah. We have a whole segment on that natural gas up to $2.81. I’m fairly choppy today again we’re off the back of just some really bullish weather news I mean it’s it’s little as we joked in the open it’s deathly hot today. It literally it’s I think tomorrow was like 105 you’re it’s ridiculous I don’t know this place. [00:17:38][22.1]
Stuart Turley: [00:17:39] It’s 109 here in west Texas. [00:17:41][1.7]
Michael Tanner: [00:17:41] Yeah I would I there’s not much I can say about other than I’m it’s unfortunate. What else you got to Stu? What should you be worried about? [00:17:49][7.3]
Stuart Turley: [00:17:49] I’ll tell you. I don’t know what to tell people to be worried about when we have these kind of stories coming out. And I think that as politicians and people are warning, afraid they’re going to lose power as the WHO, as the U.N. and all these people coming around. [00:18:05][15.6]
Stuart Turley: [00:18:05] And the climate change you now have, the ESG funds are now realizing people are going, I can’t make any money with ESG funds. People are going to get nuttier when they start losing power or they start fighting against the climate change it’s going to get nuttier Dude. You think we’re nutty now? Hold on we ain’t seen nothing yet. [00:18:27][22.5]
Michael Tanner: [00:18:28] That’s depressing. [00:18:29][0.3]
Stuart Turley: [00:18:30] It’s going to be entertaining, it’s going to be great. [00:18:32][2.1]
Michael Tanner: [00:18:33] And guess what? We will be here to cover it all, guys but with that, we’ll let you get out of your get along your day we appreciate you checking us out for Stuart Turley I’m Michael Tanner we’ll see you tomorrow, folks. [00:18:33][0.0]
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