Daily Standup Top Stories
Baker Hughes Q2 Profit Beats Analyst Estimates
Oilfield services provider Baker Hughes (NASDAQ: BKR) reported on Wednesday second-quarter earnings beat analyst expectations as strong global upstream activities and the return of offshore drilling more than offset a recent market softness in North […]
Top Asset Manager BlackRock Names Saudi Aramco CEO To Board
BlackRock has named Saudi Aramco’s chief executive Amin Nasser to the board of directors of the world’s biggest asset manager as an independent director. The CEO of the world’s largest oil company by oil production, exports, and […]
Small U.S. refiners plan to challenge biofuel blending waiver denials
(Reuters) – A group of refiners plan to file a lawsuit challenging the Biden administration’s rejection of waivers to exempt oil refiners from biofuel blending mandates which has left some on the hook for hundreds […]
Kerry’s trip to China yields no breakthrough on climate
The United States and China failed to reach new climate agreements despite “productive” conversations, special climate envoy John Kerry said Wednesday after a four-day visit to Beijing, an outcome that underscores the tensions between the […]
DAVID BLACKMON: John Kerry’s Private Jet Hypocrisy Really Does Matter
Much media attention has focused on a remarks made by Climate Czar John Kerry last week about his alleged private jet usage. Many of Kerry’s defenders have responded by saying none of it matters, but […]
Oil prices dip on profit-taking despite tighter U.S. supplies
U.S. crude, gasoline stockpiles fell last week China vows to roll out consumption support policies US data boosts hopes of end to interest rate hikes NEW YORK, July 19 (Reuters) – Oil prices edged lower […]
Highlights of the Podcast
00:00 – Intro
03:25 – Top Asset Manager BlackRock names Saudi Aramco to CEO board
07:25 – Small U.S. Refiners’ plan to challenge Biofuel Blending Waiver Denials
11:19 – Kerry’s trip to China yields No Breakthrough on Climate
16:16 – David Blackmon John Kerry’s private Jet Hypocrisy really does matter
18:30 – Market Updates
18:53 – Oil prices dip on profit-taking despite tighter U.S. supplies
19:12 – Baker Hughes comes out, actually beats expectations
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Video Transcription edited for grammar. We disavow any errors unless they make us look better or smarter.
Michael Tanner: [00:00:07] What is going on Everybody, Welcome into another edition of the Daily Energy News Beat Stand up here on this gorgeous Thursday, July 20th, 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? [00:00:31][23.6]
Stuart Turley: [00:00:32] It’s a beautiful day in the neighborhood, I’m back in Dallas. [00:00:34][2.1]
Michael Tanner: [00:00:35] You are back we are close finally so we’ll be able to see each other in the flesh more often, guys. But that does not mean we will be any less likely to shoot the show guys, you will see all of the great content coming up, but we are definitely glad to have Stu back in town. [00:00:48][13.6]
Michael Tanner: [00:00:48] We have a packed show today, I mean, this is one of the headlines here are really awesome we’ll first start out with Baker Hughes they dropped earnings today, Quarter 2 profits Beat Analysts Estimates so I’ll cover a little bit what’s going on with Baker Hughes and what probably this means for the oilfield services sector in general. [00:01:06][18.1]
Michael Tanner: [00:01:07] Next up, this is absolutely hilarious, Top asset manager BlackRock named Saudi Aramco CEO to board. No, that is not a mistype, BlackRock named Saudi Aramco, CEO to board unbelievable we’ll cover it. [00:01:22][14.8]
Michael Tanner: [00:01:22] Next up, Small U.S. refiners plan to challenge biofuel blending waiver denials. Next up, Kerry’s trip to China yields no breakthroughs on climate, Shocker! And then to round that one out, a opinion piece from our favorite random guy on Substack David Blackmon. He says John Kerry’s private jet hypocrisy really does matter. He was downplaying that in a in a clip that circulated social media so I’m interested to hear what David Blackmon has to say and then Stu will toss it over to me. [00:01:55][33.1]
Michael Tanner: [00:01:56] I’ll quickly cover what happened in the oil and gas markets, they saw a little bit of a relaxed day. 75,18 is will be currently standing here about 623 mainly due to do a little bit of kind of the external data the IEA dropped crude, their storage number so we will cover that all that and a bag of chips guys. [00:02:15][19.8]
Michael Tanner: [00:02:16] But again, as always, the stories are courtesy World’s greatest website www.EnergyNewsBeat.com the best place for all of your energy news, We appreciate you guys staying with us. Check out the description below you could see all of the different timestamps and links to all of the stories. You can hit us and ask us questions via the form below reach Out. [00:02:34][18.6]
Michael Tanner: [00:02:36] Stu does a great job of curating energy news to make sure it’s got all the energy stories you need. Hit us up Dashboard.EnergyNewsBeat.com the best place for all your data and energy news combo. Hard at work at v2 so sign up for the new V2 will make sure to get that in the description as well. But let’s start Stu I’ll cover Baker Hughes in my section, so let’s start with Black Rock. This is great! [00:02:58][22.7]
Stuart Turley: [00:02:59] Oh, this is a hoot dude, and I think let me tell you this up just a little bit, Michael. There is a great awakening of investors getting tired of not making any money. And we’ve seen this over the last several months and we’ve been talking about more and more people are sneakily investing in oil and gas and energy so this one has a great story. [00:03:24][24.9]
Stuart Turley: [00:03:25] Top Asset Manager BlackRock names Saudi Aramco to CEO board. Do you remember one little engine that could get the on? Was it Exxon, Exxon’s board? They snuck in the green group in there that forced all these issues. [00:03:45][19.8]
Michael Tanner: [00:03:46] Yeah. [00:03:46][0.0]
Stuart Turley: [00:03:46] This is very eerily similar. Just to remind our listeners, BlackRock lost 1.7 trillion in the first half of last year in order to do green investing. All right. BlackRock has named Saudi Aramco’s chief executive Amin Nasser, to the board of directors for the world’s biggest asset manager and he’s also the biggest oil company. Not only are they the biggest BlackRock as a fund, this dude has been rock solid in delivering profits for the largest oil company. [00:04:37][50.5]
Michael Tanner: [00:04:39] I mean, I mean, Stu, let’s let’s be very clear here like my dog could deliver the profits to Saudi Aramco has delivered in the past 2 years like what really is there to be done? [00:04:52][13.4]
Stuart Turley: [00:04:53] Let’s back it up a little bit. Let’s go three years, maybe even for Saudi Aramco was negative. They actually lost money several years ago, they took a loan out, not negative but they didn’t have as much profit. [00:05:10][16.9]
Stuart Turley: [00:05:11] They took a loan out in order to pay the Royal Saudi fund that they’ve been giving all this fund. And then the following year, not only did they pay that back, they also paid into the Saudi fund that year. Then after that, they started really rolling through the profits and getting around. So they he stepped up. [00:05:37][26.3]
Michael Tanner: [00:05:38] Yeah, I’m being mostly facetious, I think the funny part is you have BlackRock, formerly known as the world’s greatest ESG company, bringing on, you know Nessar [00:05:49][11.0]
Stuart Turley: [00:05:50] It gets to its Oil Company [00:05:50][0.1]
Michael Tanner: [00:05:51] Oil Directors I mean, that’s really all you need to say. The quote from from from The Godfather himself, Larry Fink, Amin’s distinguished career at Aramco, spanning more than four decades, gives him a unique perspective on many key issues facing our firms and clients. His leadership experience, understanding of the global energy industry and drivers of the shift towards a low carbon economy. [00:06:14][22.9]
Michael Tanner: [00:06:14] I mean, they said this with a straight face, as well as his knowledge of Middle East region will get you immediately to BlackRock’s board diagram. I’m sure it will. I’m sure it will drive investment in BlackRock. You’re absolutely right. [00:06:26][12.2]
Stuart Turley: [00:06:27] Now, here’s the thing. You have heard me say that I applaud the Saudi Government and Saudi Aramco for not only taking the Oil and Gas and the Natural gas, but investing in gigantic amounts of Hydrogen of Renewable Energy and everything else. So I think it’s actually a good move by Mr. Funk. I mean, Larry Fink. FUNK. [00:06:56][29.1]
Michael Tanner: [00:06:57] Oh. I’m with you. It’s a great move. [00:06:59][1.8]
Stuart Turley: [00:07:00] It’s great one. [00:07:00][0.5]
Michael Tanner: [00:07:00] It just points out the hypocrisy that is, was it BlackRock two years ago telling us that we should all eat bugs because were, I mean they were on the bug train two years ago and now you’ve got the Saudi Arabia. So, I mean, what what this still shows, which is a good sign, is that money always does win. [00:07:19][18.4]
Stuart Turley: [00:07:20] That’s right. [00:07:20][0.3]
Michael Tanner: [00:07:21] And he always does win. What’s next? [00:07:23][1.9]
Stuart Turley: [00:07:24] Okay. Let’s go to the Small U.S. Refiners’ plan to challenge Biofuel Blending Waiver Denials. Just to give you a little bit of a heads up on this one, there are different regulations for small refineries so that they can compete with the big ones. Small refineries are the only reason we even have biofuels or gas currently. [00:07:51][27.7]
Stuart Turley: [00:07:53] So let me read you this one right here, The Environmental Protection Agency, which has the authority to issue the waivers on Friday, denied exemption requests from 15 small refineries in a move that corn farmers and ethanol producers welcome. What does that tell you? [00:08:17][23.9]
Michael Tanner: [00:08:20] It tells me the the EPA sucks to. [00:08:23][3.4]
Stuart Turley: [00:08:24] Close, but it also tells me that the oh, who are the folks that go in and bribe the Politicians? [00:08:36][11.9]
Michael Tanner: [00:08:37] Lobbyists,. [00:08:37][0.0]
Stuart Turley: [00:08:37] Lobbyists Unions. Thank you. Got a hold of them for this. Refineries, including Par Pacific Holdings and plan to join together in a legal challenge against the decision. We believe this is a quote. We believe the EPA’s decision is arbitrary, capricious and contrary to law, said Ashimi Patel with ParPacific. Under the Renewable Standard Oil, refiners must blend billions of gallons of biofuels into the nation mix or buy credits. [00:09:15][37.7]
Stuart Turley: [00:09:16] So by them, cutting the small refineries down is a huge problem because they made them smaller refineries and they gave them the exclusions so they could actually deliver low cost gasoline and diesel to the consumers. So the EPA is going to hammer the consumers on this on this ruling. [00:09:43][26.7]
Michael Tanner: [00:09:45] Yeah, I mean, I mean, the funny part is you’ve got, you know, Tudor, Pickering, Holt, we love them over there, they said in a note Monday that this was not a surprise. So I yes, I think it sucks what they did. The question is, I think these you know, these these refineries knew this was coming. So I think the question is for them, what’s going forward? What are they going do? [00:10:07][22.5]
Stuart Turley: [00:10:08] Right. Now the difference between Biodiesel and Bio Regular Diesel provided in the bigger refineries is $2 a gallon. So when you start averaging this out, consumers pay $2 more a gallon when it’s biodiesel out of the small refineries because of the regulations. So guess who gets the. [00:10:35][27.1]
Michael Tanner: [00:10:36] Yeah, Par Pacific Holdings, $347 million liability as of first quarter 2023 CVR Energy 528. [00:10:43][7.1]
Stuart Turley: [00:10:48] So guess who gets it in the drive thru? Michael. [00:10:51][2.6]
Michael Tanner: [00:10:51] The consumer, as always. [00:10:53][1.4]
Stuart Turley: [00:10:54] Well, always. They always get you in the drive thru. I believe that was Joe, not Joe Pesci, but the accountant in the Lethal Weapon series, they always get you in the drive thru. [00:11:10][16.1]
Michael Tanner: [00:11:11] They do. All right. Okay. We got to talk about John Kerry. [00:11:13][2.6]
Stuart Turley: [00:11:14] Got to love me some Kerry what a. All right. Kerry’s trip to China yields No Breakthrough on Climate. Let’s have a moment of silence for his trip. Okay. That moment of silence went way too long, sorry about that. [00:11:31][16.7]
Stuart Turley: [00:11:32] The United States and China failed to reach new climate agreements despite productive conversations. Special climate envoy John Kerry said Wednesday after a four day visit to Beijing, an outcome that underscores the tension between the two world’s biggest carbon polluters and economies. [00:11:53][21.7]
Michael Tanner: [00:11:56] Hey, I mean, I don’t know what you want me to say we fly carry out their private, you know, we get a staff out there, you know, they’re staying at, you know, by the Ritz-Carlton over there in Beijing, you know. [00:12:09][12.8]
Stuart Turley: [00:12:09] Right. He quotes here, Michael, We had a very extensive set of frank conversations and realized it was going to take a little bit more work to break the new ground, said Kerry, so we’ve agreed we’re going to meet. Intensively. What a? [00:12:30][20.3]
Stuart Turley: [00:12:31] Okay. When you sit back and take a look at Kerry. Kerry lied to the Congress the other day. He says Does your family own a, I’ve never owned an airplane or he’s married to the Hines folks. They’ve had jets. [00:12:47][16.9]
Michael Tanner: [00:12:49] We know that. Yes. [00:12:49][0.8]
Stuart Turley: [00:12:50] So I still remember watching him testify in Congress my dad was being shot at in Vietnam and he was a draft dodger. So I’m not a Kerry fan we’ll just leave that one alone. Now normal climate policy. Do what? [00:13:10][19.5]
Michael Tanner: [00:13:11] There. Just. [00:13:12][0.4]
Stuart Turley: [00:13:12] Okay. Climate diplomacy between the U.S. and China is back on track. Hogwash. I’m going to call bull hockey on this one it’s because Kerry went over there to do this. Miss producer, can you fly in this video I’m going to show you in this next 32 second video. Sit back and take a look at this video. [00:13:39][27.2]
Stuart Turley: [00:13:40] It is the Biden administration and in their funding of $14 million, I believe, of what John Kerry‘s office is all about. He’s not even approved by the Congress, he’s not even approved anywhere in this. [00:14:00][19.8]
Stuart Turley: [00:14:01] So this 33 second video for our podcast listeners is very important. You’ll hear some noises, these noises, Michael, and I’ll tell you what’s going on right as we come back from this 33 seconds. John Kerry treating the U.S. customers. [00:14:19][18.2]
33 Second Video: [00:14:23] Haigh!, Haigh!, Haigh! [00:14:25][1.8]
33 Second Video: [00:14:43] Heigh!, Height!, Heigh!,. [00:14:45][2.1]
33 Second Video: [00:14:46] Heigh!, Heigh!, Heigh!, Heigh! [00:14:48][1.1]
33 Second Video: [00:14:51] Hut! Hut! Hut! [00:14:50][-0.3]
Michael Tanner: [00:14:54] But I mean, Stu, he he he! [00:14:57][2.8]
Stuart Turley: [00:14:59] Okay. [00:14:59][0.0]
Michael Tanner: [00:15:00] That hurts. That hurts. [00:15:01][1.1]
Stuart Turley: [00:15:02] You know Michael, What did you think of that? I mean, wasn’t it kind of like the consumers are getting it in the nuts? [00:15:08][6.0]
Michael Tanner: [00:15:09] I think. I mean, yeah, I think as always. I mean, this. I mean, of all the things we’ve got to worry about China with. A.I them nuking us, them cutting off Taiwan for, you know, chips, you know their eventual invasion of Russia, you know, all the things we have to worry about with China and we’ve got to worry about climate like climate change. [00:15:33][23.5]
Michael Tanner: [00:15:33] Like I hate to agree with Mitt Romney, but he’s got a great quote on this in here. He says, you know, the you know, what was it? I missed it here, let me pull it up here. [00:15:44][10.8]
Stuart Turley: [00:15:45] What did Mitt say? [00:15:45][0.6]
Michael Tanner: [00:15:46] Climate change is probably not our highest priority in dealing with China, But if we can get them to reduce their emissions, that would be a good thing. Senator Mitt Romney told POLITICO. Before the announcement, like, that’s how I feel. [00:15:57][11.7]
Stuart Turley: [00:15:59] They’re putting two coal fired plants a weekend. What are the odds? [00:16:05][6.4]
Michael Tanner: [00:16:07] Make coal great again. [00:16:08][0.5]
Stuart Turley: [00:16:08] Make coal great again. [00:16:09][0.8]
Michael Tanner: [00:16:10] Speaking of that Private jet David Blackmon, our favorite random guy on Substack [00:16:14][3.8]
Stuart Turley: [00:16:15] I Love me some David Blackmon. David Blackmon John Kerry’s private Jet Hypocrisy really does matter, David Blackmon you got to follow him he is on Energy Absurdity and he is a nut we’ll include all of his contact information here. [00:16:37][22.8]
Stuart Turley: [00:16:38] Czar Kerry controls a reported 16.7 million budget, allowing for 45 people, unconfirmed in an unofficial assignment, which has him jet setting around the globe on climate issues. And every decision he makes is not approved by Congress. Holy smokes. This is… [00:17:07][28.9]
Michael Tanner: [00:17:07] Hes like a rogue agent. [00:17:08][0.6]
Stuart Turley: [00:17:09] Yes. And we this is not an elected official going out and doing official business. This, to me, reeks of that 33 second video. This John Kerry is doing that to anger every single United States citizen. [00:17:32][22.6]
Michael Tanner: [00:17:32] My only advice for the Private Jet, folks, we have to find a new angle. I think we’re coming to the end of the usefulness of the Private Jet, I’m with you. The Private Jet is hypocrisy let’s use something else. They’re all doing other things that are energy hypocrasy can we pull them out? [00:17:49][17.2]
Michael Tanner: [00:17:49] Can we pull out the fact that Al Gore in his home in Tennessee, I think at one point was like the third most electrical spend in the entire state. Let’s go look at how much pools these I mean, there are other things we can pound these people with. [00:18:02][12.5]
Stuart Turley: [00:18:02] Right? [00:18:02][0.0]
Michael Tanner: [00:18:02] I get the private jet. It’s an easy one, but it’s getting wary on people. [00:18:07][4.2]
Stuart Turley: [00:18:08] Oh, absolutely. And in the chatter anyway, let’s move on. So hats off to David, I that it. U.S. consumers and voters are always getting it in the drive through just look at our video. [00:18:25][17.4]
Michael Tanner: [00:18:26] Absolutely this is great, check David Blackmon out on substack. We’ll cover oil prices here quickly, Stu. Overall markets were actually up today, Nasdaq dropped about a 10th of a percentage point, but S&P was up a quarter. But oil prices ended down about 2/10 of a percentage point, mainly off the back of a what, you know, kind of a supply rebalance. [00:18:46][20.1]
Michael Tanner: [00:18:47] We did see about a two 700,000 barrel draw from the Strategic Petroleum Reserves. Reuters was proposing a 2.4 million barrel draw, which was interesting. But we saw the API yesterday, did about 400,000 U.S. dollars, did increase by about three quarters of a percentage point and that also led to a bit of weakness in the energy market. [00:19:06][19.0]
Michael Tanner: [00:19:07] Natural gas still steady, about $2.62. We did see a few earnings roll out. Baker Hughes comes out, actually beats expectations, which is a great sign for the oil food service and I think a sign, a good sign of things to come for companies like Liberty, who we’ll see later in a few weeks, we’ll see Halliburton, and then we will see this merger of Patterson Utility next year Oilfield. It’ll be interesting really to see what they say in their perspectives. [00:19:30][23.0]
Michael Tanner: [00:19:30] Those are three things I’m looking for in terms of bullishness. It’ll be, you know, that that probably means there was CapEx spend. Does that mean that the companies who the oil gas companies will be reporting here shortly, does that mean they make money? I don’t know. Just because the service company made money, doesn’t your oil and gas company made money so it’ll be interesting to see how things play out that’s really what I’m watching for. [00:19:51][21.0]
Michael Tanner: [00:19:52] That’s really all I’ve got Stu, I think we’re going to go and let these people get out of here. Unless you don’t, you don’t have anything. Hey, that means the Weekly Recap Tomorrow this is the last time we get to talk with them. What should they go away with this week? Thinking about? [00:20:02][10.5]
Stuart Turley: [00:20:03] Have an Absolutely Wonderful Weekend! Hug your family and absolutely know the United States is still one of the best single countries in the world and we just need to take care of it. [00:20:19][15.4]
Michael Tanner: [00:20:20] I’m tearing up, Stu, thank you. Go ahead. Weekly recap will be good as a lot of solo segments. So if you want to look back and see what we talked about this week, please check that Episode out. For Stuart Turley, I’m Michael Tanner. We’ll see you folks! [00:20:20][0.0]
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