Daily Standup Top Stories
Venezuela Looks To Pay Down $20 Billion In U.S. Debt With Oil Exports – Why is there an extimated $6 B price difference?
The opposition party in Venezuela is working up a proposal that would see 200,000 barrels of crude oil per day exported to a trustee, who would then pay creditors who have laid claim on various […]
David Blackmon: A Backlash Against Net-Zero Policies Is Finally Beginning To Take Shape
The past week has been a very interesting one, to say the least, as the media has suddenly filled with story after story documenting a rising backlash against net-zero policies in the Western world. From […]
New Iceland Tech Shakes Up Global Geothermal Energy
Amongst the many common facts about Iceland (Björk, Chess in Reykjavik, and Viking Sagas), many know the island’s nickname, “The Land of Fire and Ice.” Beautiful landscapes draw tourists to volcanos and geysers, contributing to an […]
Toyota’s solid-state battery breakthrough will reduce costs and size by 50 percent
In what is considered to be a significant breakthrough in the transition to electric vehicles (EV), Toyota says it has developed new solid-state battery technology that will allow it to reduce the weight, size and cost of […]
At least two dead in oil platform fire in Gulf of Mexico
At least two people were killed and one person is missing after a fire broke out Friday at the Nohoch Alfa offshore platform at the Bay of Campeche, in the Gulf of Mexico, the state-owned oil […]
Highlights of the Podcast
00:00 – Intro
03:17 – Venezuela looks to pay down 20 billion in U.S. debt with oil exports. Why is there an estimated 6 billion price difference?
06:51 – David Blackmon This article is a backlash against net zero policies is finally beginning to take shape
08:54 – New Iceland Tech Shakes up Global Geothermal energy
11:56 – Toyota’s solid state battery breakthrough will reduce cost in size by 50%.
15:18 – At least two dead in oil platform fire in Gulf of Mexico
18:17 – Market Updates
21:46 – Outro
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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 Monday, July 10th, 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? [00:00:38][23.0]
Stuart Turley: [00:00:39] It’s a beautiful day in the neighborhood and I got to talk to H.R somebody called to say we got to have a white shirt on for our podcast listeners. [00:00:46][7.4]
Michael Tanner: [00:00:47] We’re coming down from above to deliver you guys the all seeing News we have an absolutely banger show lined up for you packed menu Stu has done a great job of keeping energy news beat up to speed this weekend first up. Venezuela looks to pay down 20 billion in U.S. debt with oil experts. Why is there an estimated $6 price difference? Stu will dive into some interesting numbers and what Venezuela is looking to do. [00:01:13][26.2]
Michael Tanner: [00:01:13] Next this is from Energy News Beats own David Blackmon. A backlash against net zero policies is finally beginning to shape shape, that’s a substack article from our favorite random guy on substack. Next up, New Iceland tech shakes up global geothermal energy, you know, here at Energy News Beat, we love geothermal highly interesting to see what’s coming out of Iceland. [00:01:34][20.5]
Michael Tanner: [00:01:34] Next up, Toyota’s solid state battery breakthrough technology will reduce cost and size by 50%. You’re gonna have to convince me of that I’m skeptical just on the headline, but Stu will convince us otherwise. And then finally, we’ll check in in the Gulf of Mexico, where we have At least two dead on that Pemex oil platform vile Stu will dive in to the fallout and get us up to speed on what we know today. [00:01:56][21.8]
Michael Tanner: [00:01:57] He’ll toss it over to me I’ll cover, you know, really what happened really on Friday, but also last week and oil were up 3% to a nine week high, mainly on some supply concerns. I’ll jump into maybe where I see and where Stu and I see oil prices and natural gas prices moving this week. [00:02:13][16.5]
Michael Tanner: [00:02:13] And then we’ll let you gone on get out of here, start your Monday and we really hope there’s not too many meetings, but I have a feeling you guys are about to get pounded with meetings so please stand strong we’ll get you here, we’ll get you prep with the news, and then we’ll get you on your way. [00:02:25][11.7]
Michael Tanner: [00:02:25] Before we do all that, guys, remember all the stories we are about to read and go over are courtesy World’s Greatest Website, EnergyNewsBeat.com. You can check them all out in the description. Blow Team does a great job of curating that to make sure all the stories are in there you can check out the timestamps below if you want to go ahead and jump ahead and figure out what David Blackmon saying you can go ahead and do that right now. [00:02:45][19.5]
Michael Tanner: [00:02:45] Dashboard.EnergyNewsBeat.com the best place for all your data and news combo. We are hard at work at pushing V2 guys, so remember, let’s it’s going behind a paywall, so let’s hit the dashboard sign up link. Tell us what you think V2 and we’ll throw that link below as well we’ll make sure the team’s on that. Aight Stu where do you want to begin? Pack show today. [00:03:04][18.9]
Stuart Turley: [00:03:05] It is let’s go swooping around the world down to Venezuela this one reeks of potential like, Hey, where’s my crayon? Venezuela looks to pay down 20 billion in U.S. debt with oil exports. Why is there an estimated 6 billion price difference? There’s a B there refresh your screen. [00:03:27][21.9]
Stuart Turley: [00:03:27] So when you take a look at this, Michael, why are we allowing Venezuela to get use oil in trade? Okay, Now, the way I did, I took a look at this parting with 200,000 barrels of barrels per day of its crude that generates much needed revenues but they’re going to give it to the United States in lieu of doing that. [00:03:57][29.5]
Stuart Turley: [00:03:57] And I started doing my crayon there’s $6 billion difference between what they would sell it to us for supposedly. And, you know, where is that price difference? I’ll have to I’m going to put a spreadsheet in here for the folks that will be on here. When you start having 20 billion and then the 14 billion is what Venezuela is really going to get credit for, what is that 6 billion difference going to do Michael? that seems a little odd to me. [00:04:27][30.6]
Michael Tanner: [00:04:28] Yeah, I’m on I don’t know. I I’m going to have to see this crayon in this napkin that you’re using. So you’re going to this is like the missing 13 minutes on the Nixon files, like missing napkin. Where is it? I’m going to need your crayon math on that one. [00:04:42][14.3]
Stuart Turley: [00:04:42] I can’t Trust. [00:04:43][0.5]
Michael Tanner: [00:04:44] Right now there’s 200,000 under this newly proposal, 200,000 barrels of crude oil per day that’s being diverted to China would currently be diverted basically cost free to the United States. I mean, basically what it would be doing is it would generate revenues that would immediately go back into paying off the values. [00:05:01][16.8]
Michael Tanner: [00:05:01] You got to remember, Citgo, which is Venezuela’s most prized possession, sits within the United States, too it’s already been seized. So now all of a sudden, there’s not much else to do other than go get some free oil. [00:05:12][10.1]
Michael Tanner:[00:05:12] This proposal still requires sign off from the Maduro regime, you also have to remember, guys. In January, Washington went ahead and signed off on a license that would allow Chevron to ship 134,000 barrels per day of Venezuelan crude up to the United States coast. Venezuela is currently exporting about 750,000 barrels per day and refined products. So remember, they use refineries down there and that’s up over the last year. [00:05:37][25.1]
Stuart Turley: [00:05:38] Okay. Here’s a squirrel for you in the hamster wheel. Okay. If we sit back and take a look, there also is Biden is is kicked out more SPR releases I’m trying to get information on that as well, too. So we’re also lowering our strategic oil reserves well, this kind of crap is going on what’s going on? [00:06:00][22.1]
Michael Tanner: [00:06:00] Yeah, I mean, again, produce that napkin and we’ll cover the math and we’ll save that next. All right let’s move to David Blackmon. [00:06:08][7.7]
Stuart Turley: [00:06:09] Okay. Yeah, but you’re my crayon analyzer, and I’ll have that done for everybody. I love David Blackmon. David Blackmon is one of the coolest guys out there David Blackmon of. [00:06:20][11.5]
Michael Tanner: [00:06:21] The original random guy on Substack. [00:06:22][1.9]
Stuart Turley: [00:06:24] He is not only is he’s got the energy absurdity of the day I was actually in on the energy absurdity of the day, and I’ve got that going for me on my deathbed. David Blackmon This article is a backlash against net zero policies is finally beginning to take shape there’s a little bit to this when you sit back. First line, first past week has been a very interesting one to say the least, as the media has suddenly filled with story after story documenting a rising backlash against net zero policies in the world. [00:07:02][38.0]
Stuart Turley: [00:07:03] Austria’s national energy and climate plan said Tuesday its climate targets for 2030 will not be reached the new revised plan this week cuts the country’s greenhouse gas reduction goals from 48% below 2005 to 35. [00:07:21][18.4]
Stuart Turley: [00:07:23] This is really an excellent article because this is teeing up COP 28 there is a huge backlash between the ESG investing. We’ve had some of those articles on Energy News Beat about even Larry Fink of BlackRock bailing out of ESG, the ESG investing hypocrisy. Now we’re seeing a whole trend, global trend from some random guy on substack I guess you’d love to say, Michael, and that is David Blackmon he’s one of the guys I trust. [00:07:58][35.6]
Michael Tanner: [00:07:59] Yeah, but what’s interesting is this article actually comes from The Daily Caller. So he’s, you know, this is it you know, he’s no random guy on Substack. [00:08:07][7.6]
Stuart Turley: [00:08:08] No, he’s he’s a Forbes contributing author and a Daily Caller and he’s also on the 3 Podcasters walk into a bar and he’s on another podcast. But, you know, we got a new. [00:08:20][12.2]
Michael Tanner: [00:08:20] Energy Question courtesy of Sandstone Media World’s greatest media platform. [00:08:24][4.0]
Stuart Turley: [00:08:25] Okay. [00:08:25][0.0]
Michael Tanner: [00:08:25] That’s a that’s a plug right there. [00:08:27][1.5]
Stuart Turley: [00:08:27] Oh, yeah that’s a shameless plug, but we’ll take it all right hey, let’s go to the next one, dude. New Iceland Tech Shakes up Global Geothermal energy. We’ve got a couple energy tech stories here we’re off to Iceland. [00:08:42][14.9]
Stuart Turley: [00:08:43] And while Iceland is fortunate that it has all three required characteristics for accessible geothermal energy in the Icelandic model of geothermal is not merely due to natural that’s due to technical technology. [00:08:59][15.9]
Stuart Turley: [00:09:00] This article refers to also Japan, in Japan, they’ve got man they always see the monkeys sitting in the hot tubs you know, over there in Japan, the problem is 80% of their geothermal lands are in national reserves, and so they only have 20% in China. [00:09:21][21.2]
Stuart Turley: [00:09:22] So when we take a look at what’s going on different, it’s creating positive feedback loops where geology activity components, the strengths and weakness of other green power sources instead of only generating electricity for consumption. So it is a force multiplier, as this article says. I kind of like it from that aspect. [00:09:44][22.0]
Michael Tanner: [00:09:45] Yeah, I think here’s the thing I think it’s great for Iceland the problem is can you take this same Icelandic model and scale it up for the United States? Probably not. [00:09:53][8.8]
Stuart Turley: [00:09:54] Yeah, in Yellowstone but then again, you know, the cold air is going to blow up next week as everybody saying so, you know, Yeah, let’s go. [00:10:01][7.0]
Michael Tanner: [00:10:02] Poking things into the cold air I’m probably good on that. [00:10:06][4.3]
Stuart Turley: [00:10:08] Yeah, but you blow up all the whales, so anyway. [00:10:10][2.6]
Michael Tanner: [00:10:11] I mean, the green people would finally have our way then me and Greenpeace would finally have our way. [00:10:16][5.8]
Stuart Turley: [00:10:17] The new in the new and updated Greenpeace. [00:10:20][2.6]
Michael Tanner: [00:10:21] Yes, the one that’s funded by Russian oil. [00:10:23][1.9]
Stuart Turley: [00:10:23] Oh, yeah. But the new technology, I think, is also being brought up in to Chevron and BP and we’ve been talking about Exxon going through the geothermal I’m thrilled to try any of this stuff and really notch it up I’m all for geothermal. [00:10:39][15.2]
Michael Tanner: [00:10:40] No because it is, what the Icelandic model is showing and I think with this article you guys got this up saying is that geothermal is a great baseload power source. [00:10:50][9.7]
Stuart Turley: [00:10:50] Exactly. [00:10:50][0.0]
Michael Tanner: [00:10:51] To back up and ensure all your other energy sources, the mix of your energy, you have a strong baseload mix. [00:10:58][6.8]
Stuart Turley: [00:10:59] Yeah, it will. It provide everybody’s thing. No. Will solar do it? No. Will wind? No. Will nuclear they could but when you talk about [00:11:09][10.2]
Michael Tanner: [00:11:10] SMRs Baby SMRs [00:11:10][0.1]
Stuart Turley: [00:11:12] SMRs baby, you need all energy okay, let’s move. [00:11:16][4.1]
Michael Tanner: [00:11:16] Let’s hear about Toyota’s solid state batteries. [00:11:18][1.7]
Stuart Turley: [00:11:19] Its Pretty cool there’s a little nugget that is not in the article. Toyota’s solid state battery breakthrough will reduce cost in size by 50%, this is really huge. You know, you and I have laughed about I mean, we’ve talked about EVs for a lot and they pollute people just think that they’re clean. [00:11:41][21.8]
Stuart Turley: [00:11:42] Here’s the key difference the largest automaker in the world said by using its new solid state battery architecture, it can produce batteries with a range of 745 miles that’s 1200 kilometers for our international listeners, which can be fast charge in about 10 minutes, that is cool. [00:12:06][23.9]
Stuart Turley: [00:12:07] Now, when you take a look, Jerry, you didn’t on a Prius, do you? I mean, those were hideous. Okay. So when you take a look at the technology right now, we have kids in the Congo being forced into slave labor in order to do the lithium ion batteries. [00:12:26][18.7]
Stuart Turley: [00:12:27] Then when one goes on the dog, it starts burning all the fire departments leave, and then everybody gets their marshmallows out and just expect that thing to go for several days. Hey, this is a great idea why don’t we burn Teslas for power sources? They could heat all the water what do you think? [00:12:47][20.2]
Michael Tanner: [00:12:48] How you go geothermal by burning Tesla’s. Let’s. Let’s pitch that to Elon. [00:12:52][3.6]
Stuart Turley: [00:12:53] No. That was horrible. Okay, so here’s where this the little nugget is in here Toyota and Tesla are signing deals last week. [00:13:03][10.9]
Michael Tanner: [00:13:04] Uh oh, of course. Of course. I mean, this is what’s going to happen in the EV industry everyone’s going to share. Everyone’s going to share technology certain companies will have all the batteries certain companies will have the software certain companies will manufacture you know. [00:13:20][16.2]
Michael Tanner: [00:13:21] Maybe Tesla continues to do all of it but if what this article is saying is true, this switch from, you know, the the liquid polymer gels that basically to these solid state solid electrodes and electrolytes, which sounds funny because we think of electrolytes as a Gatorade. [00:13:36][15.5]
Michael Tanner: [00:13:37] But if what they’re saying is true this solid, I mean, that’s what you’re talking I mean ten minute battery I love they say, and a fast charge in about 10 minutes that’s still a lot that’s still a while. 10 minutes sitting at a gas station. You know, a lot of records and a half hour that’s not that quick. [00:13:54][17.3]
Stuart Turley: [00:13:55] No, but it sure beats the 3 hours that people are having to do right now. [00:13:59][3.8]
Michael Tanner: [00:13:59] I like to the 2 minutes it takes my gas truck to fill up, though. [00:14:02][3.5]
Stuart Turley: [00:14:03] Oh, yeah. Here’s the other piece of this puzzle, though when you sit back and take a look Tesla signed a deal with Ford, Ford is going to be using the Tesla plugs. So your point is phenomenal, Michael, so that when you start looking at companies that allow market opened up their technology for other manufacturers to use are the winners. [00:14:27][23.9]
Michael Tanner: [00:14:28] Yeah, absolutely. [00:14:28][0.3]
Stuart Turley: [00:14:29] I think it’s fantastic. So anyway, I was pretty darn excited about this one. [00:14:33][3.7]
Michael Tanner: [00:14:33] All right, last one what’s going on with that Pemex platform? Okay. [00:14:36][3.0]
Stuart Turley: [00:14:37] Let’s take a look here At least 2 dead in the oil platform fire in the Gulf of Mexico they get they did get the fire out and emergency crews there In the story here, 321 workers out of the 328 who were working on the structure when the fire started have already been evacuated that’s as of yesterday morning so they’re all off the fire’s out and the video is here in Spanish so I was trying to watch it 16 times [00:15:08][31.3]
Michael Tanner: [00:15:09] I saw a little bit of it they’re going to shut in about 700,000 barrels of oil because of that which is going to do a little bit of a pop here as the markets open up. It’s about 230 here on Sunday, here on the 9th. [00:15:21][12.1]
Stuart Turley: [00:15:21] So do you think it’ll even do you think it’ll even matter? Because we’ve had tankers hijacked that years ago it would have devastated the thing. [00:15:30][8.5]
Michael Tanner: [00:15:31] Maybe a bump you might see a small bump. I mean, we’re already dealing with supply concerns. I’m just saying it’s about 700,000 barrels a day so it’s not that hard. It’s not that it’s not that small. [00:15:39][8.3]
Stuart Turley: [00:15:40] No, it’s not that small but also, you know, the market seems to be fairly impervious to some of these things. [00:15:46][6.4]
Michael Tanner: [00:15:47] Yeah, no kidding you know, I don’t know why Pemex has a long record of it you know, I look on this article says Pemex, which has a long record of major industrial accident. [00:15:56][9.3]
Stuart Turley: [00:15:58] Continue to re report on control extension of the fire and damage assessments. Yeah retro retro. you know, but Michael, this goes back to why is the current administration declaring war on the U.S. oil and gas when we were the cleanest on the planet? [00:16:20][22.9]
Michael Tanner: [00:16:21] Oh, it’s almost like we’ve never talked about that no, it’s I because I always it’s true I mean, this is you want you want no domestic oil and gas production sweet Pemex is in charge now. It’s true. [00:16:34][12.5]
Stuart Turley: [00:16:34] Then, you know. Anyway, Well, that’s it for me we’re going to have a crazy week. I’ve got a bunch of stories coming around I got my sources on COP 28 they are announcing some real struggle points, getting ready for this thing. [00:16:49][14.3]
Stuart Turley: [00:16:49] And part of the problems, Michael, is that like we just talked about, the ESG investing side coupled with Sweden and Spain have bailed out and they have changed their energy policies. People cannot afford to print money so I got a lot coming around the corner. [00:17:10][21.0]
Michael Tanner: [00:17:11] You know, you’ve got a lot coming around the corner. I’ll quickly just cover what happened last week in oil prices. We were up 3% for week over week, up to a nine week high, really based off those supply concerns. [00:17:22][11.0]
Michael Tanner: [00:17:23] You know, we closed the day, Brant closed at 7847, WTI, settled at 7386, our open somewhere in their 7360 range here in about 2 hours and the one quote from from Phil Flynn of Price Futures group we’re knocking on the door again of a major breakout to the upside I think you’re seeing some short term covering here today because a lot of people have been betting the short side to interesting we think we have a little rally coming. [00:17:46][23.5]
Michael Tanner: [00:17:47] Again. You have to remember that Saudi Arabia decided to have keep its 1 million barrel crude oil lollipop in demand, which is are intact for August, which is basically a fresh cut and Russia came in along with the UAE and decided to cut a little bit. So that’s, you know, going to, again, keep things up. [00:18:06][19.6]
Michael Tanner: [00:18:06] You know, we also did see Equinor paused a little bit of their oil production in the North Sea due to staff shortages so you got to love that after, you know, we don’t see the dollar falling to a two week low last week, mainly based on the fact that they think the US Federal Reserve is going to continue to continue to raise rates. [00:18:23][16.2]
Michael Tanner: [00:18:23] It’s pretty funny you watch CNBC this morning each morning and it’s depressing because new numbers come out and they’re good numbers, good jobs numbers. Everyone’s depressed because now that means the Fed’s going to raise rates. [00:18:32][9.3]
Michael Tanner: [00:18:33] I’m convinced the Fed needs new tools to fight inflation because they can’t be saying, Oh, yay, everyone’s employed, let’s raise rates, put them out of, you know, I mean, that there’s some there’s a misaligned of incentives there of incentives there. [00:18:46][12.6]
Stuart Turley: [00:18:46] I think the Fed cannot and does not have the tools they got us here they do not have the tools to fix it. [00:18:54][8.3]
Michael Tanner: [00:18:55] They don’t they really don’t. [00:18:56][1.1]
Stuart Turley: [00:18:56] My opinion is that you got to fix the energy policies you know you know, you’re just going to shut up, Stuart. [00:19:04][7.2]
Michael Tanner: [00:19:04] Well, on a positive note, we did see six rigs get added week over week Baker Hughes dropped out on Friday. Kirk’s guy rig count stands at 680. We did see two natural gas rigs come off and eight onshore rigs. So, hey, at least we’ve got that going for us. What should people be worried about this week Stu? What’s on your radar? You said COP 28 when is that by the way? When is COP 28? [00:19:27][23.5]
Stuart Turley: [00:19:28] Some time in November but they’re having a meeting. [00:19:31][2.4]
Michael Tanner: [00:19:31] Spooky. [00:19:31][0.0]
Stuart Turley: [00:19:33] Oh, but it’s there’s meetings coming up right now trying to get ready for it and they they’ve got some acreage going on and that’s not a good thing for them. [00:19:43][9.9]
Michael Tanner: [00:19:43] No, it’s not a good thing for them at all. I don’t think there’s anything else the oil and gas news front to worry about Guys, we’re working up for earnings, so I don’t think you’re going to see too many M&A deals around the corner. [00:19:53][10.0]
Michael Tanner: [00:19:53] I do think you’re going to see here probably after that first after that Q2 earnings call, I think you’re going to see that M&A actually pick up fairly quickly. But with that, guys won’t let you get out of here, start your Monday we appreciate you guys checking us out. EnergyNewsBeat.com for Stuart Turley, I’m Michael Tanner we’ll see you tomorrow, folks. [00:20:10][16.9]
Stuart Turley: [00:20:11] Subscribe Like! [00:20:12][0.6]
Michael Tanner: [00:20:13] Smash that Like button! [00:20:13][0.0]
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