Daily Standup Weekly Top Stories
Oil markets are still volatile, U.S. energy chief says, calling for further supplies – But will they allow drilling?
Volatility is still weighing on oil markets, U.S. Energy Secretary Jennifer Granholm said Saturday, reiterating calls for additional supplies. Jennifer Granholm said she expects oil demand in the U.S. to increase to 12.5 million barrels […]
Shipowners splash out $47 billion for LNG carrier newbuilds in 18 months
Spending on new LNG carriers since the beginning of 2022 represents 27% of total newbuilding investment and more than any other sector including containerships. With owners having racked up some $47 billion in investments in […]
Chevron Posts $6 Billion Quarterly Earnings, Beating Estimates
Chevron Corp. reported second-quarter earnings of $6.01 billion, beating analyst estimates. The figures, while down 48% from the same period last year, topped the second-quarter profit of $5.5 billion expected by analysts in a Bloomberg survey. […]
Biden Officials May Be Blowing America’s Shot At Rare Earth Independence
A recent story in the Wall Street Journal chronicles the fact that, for this energy transition to succeed, the United States is going to need massive quantities of cobalt, among other energy minerals. Yet, the Australian owners of […]
“It’s A Way To Destroy The Dollar” Jim Rickards Warns Of Supply Chain Fragility and BRICS Currency Plan
Via Greg Hunter’s USAWatchdog.com, Seven-time, best-selling financial author James Rickards predicted in his most recent best-seller called “Sold Out” why broken supply chains would cause big inflation. He was right, and he still contends, […]
Highlights of the Podcast
00:00 – Intro
01:39 – Oil markets are still volatile, U.S. energy chief says calling for further supplies but will they allow drilling?
05:42 – Ship owners splash out 47 billion for LNG carrier newbuilds in 18 months
09:25 – Chevron Posts $6 Billion Quarterly Earnings, Beating Estimates
11:22 – Biden Officials may be blowing America’s shot at rare, rare earths independence
16:25 – It’s a long way to destroy the dollar. Jim Rickards warns of Supply Chain Fragility and Brick’s currency Plan
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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 the special edition of the Daily Energy News Beat Stand up here on this gorgeous Friday, July 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 we doing today? [00:00:30][23.4]
Stuart Turley: [00:00:31] Its a Beautiful day in the neighborhood, I can’t complain it’s almost Friday. [00:00:34][2.9]
Michael Tanner: [00:00:36] Well, it is Friday if they’re listening to this Stu, well record in this intro. But as you listen to this, it is Friday you made it through the week, folks so give yourself a pat on the back and we have a treat for you guys our weekly recap here, we bring you the top segments from the past week. [00:00:52][16.2]
Michael Tanner: [00:00:52] A lot happened. We had a lot of earnings happen this week you know, obviously our climate hypocrisy, some of our favorite stuff we talked BRICS I mean, all of the different stuff. The team’s going to select the top stories, throw them in here. [00:01:03][10.7]
Michael Tanner: [00:01:03] We would just like to say again, www.EnergyNewsBeat.com Is where all of these stories come you can hit the description below. Dashboard.EnergyNewsBeat.com, Questions@EnergyNewsBeat.com. You made it through the weekend guys I’m giving it up to the Weekly Recap, See Yah!. [00:01:17][14.4]
Stuart Turley: [00:01:18] Let’s start with my buddy Jennifer Granholm and I can’t I keep Pat myself on the back and if she ever got married to Fetterman it’d be Fetter Graham or Graham Fetter I don’t know. [00:01:34][15.5]
Stuart Turley: [00:01:34] But anyway, she is sitting there looking at this article I only smokes. Oil markets are still volatile, U.S. energy chief says calling for further supplies but will they allow drilling? This one is hypocrisy at its finest. [00:01:47][12.8]
Stuart Turley: [00:01:47] Volatility is still weighing on oil markets, as Secretary Jennifer Granholm said Saturday, reiterating calls for additional supplies. Here’s where it gets a couple quotes that just drive me nuts. She says that oil demand is going to go up to 12.5 currently, we’re doing around the 11 range. [00:02:10][23.1]
Stuart Turley: [00:02:11] And so in that 11 range now, remember, we have to import the heavy because there’s no Keystone pipeline we could get the heavy out of the Canadian oil sands just thought I’d throw that little miserable piece of news out there. [00:02:25][13.4]
Stuart Turley: [00:02:25] Here’s where she comes up with this, We want prices to come down the president is really focused on the impacts of real people who need to get to work and cannot afford that premium Granholm highlighted. [00:02:41][15.8]
Stuart Turley: [00:02:43] Here’s a little bit of tidbit. They’re thinking of pulling even more out of the SPR, and the SPR is at the lowest it’s been in 30 years to 300 million barrels somewhere in that range they still want to draw down, even though they can’t afford to put the oil back in like I told you a little while ago. [00:03:07][24.8]
Stuart Turley: [00:03:08] So let’s come in to this one, We want to see more supply it gets dangerous when the prices are so high. I think the prudent course is to ensure that transportation is affordable for people and that course means making supply is stable. She doesn’t understand how pricing works in the oil and gas market. [00:03:29][21.0]
Michael Tanner: [00:03:30] Well, I think she understands exactly how it works she just can’t come out and say we want to produce more oil and gas because it would go against the stated goals of this administration. It’s a catch 22. It’s it’s like a fat person nominating their doctor in attempting to tell them how they’re going to keep their horrible diet up. [00:03:49][19.0]
Michael Tanner: [00:03:49] It’s like the doctor’s got to come out and say, well, you know, really four bags of Eminem’s is actually in our case, it could be good, you know, for all these five I mean, the tap dancing that they have to do around to come up with the idea of. Well, we don’t want the consumers paying too much for energy, we expect demand to increase, but we don’t want any more drilling. [00:04:07][17.6]
Stuart Turley: [00:04:08] Right. [00:04:08][0.0]
Michael Tanner: [00:04:08] What do they want they want to restrict the they want to restrict the amount of drilling of oil and gas capital that it’s available in the industry. Yet they also keenly understand that supply, that demand is going to increase to 12.5. They want their cake they want to eat it, too. [00:04:22][14.1]
Michael Tanner: [00:04:26] I feel sorry for her because I think she actually knows what the solution is. More investment in drilling, more more barrels coming out of the U.S. ground. The problem is she’s hamstrung. She can’t say it. She can’t go out and say the answers drill more Stu she can’t, What do you expect her to say? [00:04:40][14.4]
Stuart Turley: [00:04:41] I expect her not to laugh like she did when she asked that one question, How are you going to drill more oil? And she just started laughing like her Vice President. [00:04:51][9.5]
Michael Tanner: [00:04:51] I’m not saying she’s I’m not saying she’s a great person, but I’m just saying, like, I think we keep expecting her to come out and say what we all already know. [00:05:00][8.4]
Stuart Turley: [00:05:00] Okay. But here’s the here’s the last line, Michael. We have to do everything everywhere, all at once deploy, deploy, deploy clean energy because if we don’t, our planet is on fire and we must address it. [00:05:14][13.6]
Michael Tanner: [00:05:14] And she loses all credibility when she says our planet is on fire. [00:05:17][3.1]
Stuart Turley: [00:05:18] Oh, done. And so here’s here’s my take. You know, I’m a big fan of Grenelily Debra Wold they can do renewable energy time and time again without this. So if Granholm called Jennifer Wold, I mean Debra Wold she ought to be our next secretary of energy. [00:05:41][23.6]
Stuart Turley: [00:05:42] Ship owners splash out 47 billion for LNG carrier newbuilds in 18 months. Michael, this is a big story, especially when we consider what’s going to go on in the other stories. So I got kidneys up here for our podcast listeners I’m pointing to my head and saying, I got kidneys,. [00:06:02][20.4]
Stuart Turley: [00:06:03] So okay, spend it, listen to this. Spending on new LNG carriers since the beginning of 2022 represents 27% of new shipbuilding investment and more than any other, including container ships. That’s pretty amazing in 18 months, 47 billion. [00:06:26][22.7]
Michael Tanner: [00:06:27] Yeah. Considering that that what normally was happening was you know in my. Yeah, you know, it was much, much lower than that. I think the idea that LNG is going to be plentiful and is going to be seen as a bridge fuel between crude oil and whatever this this, this holy grail of renewable energy is, it’s definitely going to be a bridge fuel. [00:06:48][20.5]
Michael Tanner: [00:06:48] We’ve covered last week and we’ve covered on the show at nice long term LNG contracts signed by both China with Saudi Arabia and the UAE and Qatar have come out and signed large deals around the world. You’ve been covering India. This investment comes at the right time because they’re needed in order to achieve these products. [00:07:08][20.4]
Stuart Turley: [00:07:09] Oh, and this is huge to the US because we can’t ship out our great products because we don’t have any tankers. [00:07:17][7.9]
Michael Tanner: [00:07:18] So, you know, they know that, you know, this rising LNG demand in Asia, you know, and the role of relatively clean hydrocarbon in the energy transition are both underlying growth drivers. [00:07:30][11.2]
Stuart Turley: [00:07:30] You nailed it! And Asia has picked up where the rest of the world is and they’re rolling out LNG far superior than Canada or the U.S. So, I got to hand it to them. Let me throw this at you here’s some other numbers. [00:07:49][18.5]
Think about that that’s just as bad as in your day job drilling wells and going from a $7 million well to a look in about the ballpark there, probably about a $14 million Dollar well. [00:08:37][46.4]
Michael Tanner: [00:08:39] Right now, you’re right. That’s a that’s a double this is not a 50% increase. This is somewhere around a 20% increase. You’re talking going from somewhere around 7 to $10 million Dollars I’m with you it’s going to keep going up. What I want to know is how do we get our hands on one of these 331 vessels? I vote Energy News Beat crowd sources, our own LNG tanker. [00:08:58][19.2]
Stuart Turley: [00:08:59] I think we should and we owe it to ourselves to become a skipper. You know, the three was it they went out for a three hour cruise. You and I could do podcast from that. [00:09:10][10.7]
Michael Tanner: [00:09:10] Exactly. Well, Captain, the ship, you just fill it up, we’ll drive you get us for 6 hours. So, yeah, we’ll but seriously, maybe we’ll give them some Energy News Beat tokens. You think they take Energy News Beat tokens instead of Dollars? [00:09:24][13.9]
Stuart Turley: [00:09:25] Chevron posts 6 billion quarterly earnings, we’re talking billions a lot today, aren’t we? Beating estimates, What are your thoughts on Chevron’s earnings? [00:09:38][12.1]
Michael Tanner: [00:09:39] So I think two things. One, they come in at about $6.1 billion for second quarter earnings, beating analysts expectations. You know, I think you’re going to read o down 48% year over year. You realize that it does top second quarter profit per 5.5 billion, which was expected by analysts the Bloomberg survey. [00:10:01][22.0]
Michael Tanner: [00:10:01] I think they’re interesting note that that Chevron dropped on on a Sunday night was that they produced 772,000 BOE out of the Permian during quarter three which or second quarter which is an absolute record which is truly incredible. [00:10:17][15.3]
Michael Tanner: [00:10:17] To give you guys an idea, they gave away dividends of about 2.8 billion and did about $4.4 billion of share repurchasing. They also announced that they’re doing some senior restructuring its current CFO is retiring, bringing in somebody else so I got to love that. [00:10:35][17.6]
Michael Tanner: [00:10:36] I mean, Chevron continues to be a beast Stu it is what it is. I mean, when you’re when you’re doing 700,000 barrels of oil out of the Permian, you’re going to be just fine. [00:10:46][9.8]
Stuart Turley: [00:10:48] Oh, yeah. [00:10:48][0.2]
Michael Tanner: [00:10:49] Just fine. [00:10:50][0.3]
Stuart Turley: [00:10:50] Well, do you think he’ll ever get invited over to Jennifer Granholm’s house for dinner? [00:10:56][5.2]
Michael Tanner: [00:10:57] Probably not. Well, but you should that the more he invests, the more he lowers prices. [00:11:02][5.1]
Stuart Turley: [00:11:03] Oh, yeah. Hey, wait a minute aren’t most on their mind now I was thinking about insider trading maybe Nancy Pelosi knows about this one. [00:11:14][11.2]
Michael Tanner: [00:11:16] Well get we’re going throw a ball to Pelosi Right. [00:11:18][2.2]
Stuart Turley: [00:11:18] Hey, Nancy, if you’re listening to this podcast, we’d love to interview you. [00:11:21][2.9]
Stuart Turley: [00:11:22] Biden Officials may be blowing America’s shot at rare, rare earths independence. This one’s kind of crazy it is actually from Forbes David Blackmon is the author and he had a great interview here let me get the quotes in here. [00:11:45][22.9]
Stuart Turley: [00:11:47] Um, the the mine that they’re missing on this is actually from Greenland, this is critical. Christopher Messina, CEO of Tanbreez, just interviewed David just interviewed him this is the quote out of it. [00:12:07][19.9]
Stuart Turley: [00:12:08] This mine is one that could basically drive civilization over the next 20, 30, 50 years. Christopher Messina said, CEO of Tanbreez, told me in a recent interview that David Blackmon for the United States and its needs that is no probably no exaggeration giving the resource was recently ranked by mining.com as number one on the list in top ten rare earth mining projects in the world. [00:12:39][31.4]
Stuart Turley: [00:12:40] This is huge. Nobody in the private sector the article comes on down in here where David’s article says just one problem nobody in the private or public sector sector seems interested to be the first to take on the risk of funding the project. Massena says it had funding secured in early 2020 from prominent backers on such project. [00:13:09][28.7]
Stuart Turley: [00:13:10] But. You know, you sit back the person died of COVID, so he lost anyway it’s hard to get that one out, but it’s a situation where everyone cannot wait for five years, ten years to get these things rolling at least he has a good sense of humor of it. Forbes article Van tastic go read it we’ll have the link to it in the show notes. [00:13:40][30.1]
Stuart Turley: [00:13:43] And so when you take a look at Rare Earth Minerals, also, the Biden administration is not helping on any of the permitting. So when you come in and take a look at it, we’ve got to have permitting reforms and allow for the investing of these kind of projects in order to try to get rare earth minerals and critical earth minerals to the United States. And let’s make our own gear rather than letting China sell us the gear at a higher price and then use coal in order to manufacture the things. [00:14:23][40.2]
Stuart Turley: [00:14:24] So when you take a look at the Manhattan Institution, mines, minerals and a green energy reality check. So when you take a look at this, I believe this is Mark Mills and some of the things in this article are just phenomenal. The material cost of clean tech he has in here, the material requirements to build different energy machines this is critical when you sit back and take a look how many materials used in tons per kilowatt hour. You got to look at the kilowatts produced by resources, and that’s exactly what they’re looking at here. [00:15:09][45.0]
Stuart Turley: [00:15:10] So in solar PV, you’re looking at about 16 million tons per pair per terawatt hour. Hydro is about 14.2, wind is about 10.1. Geothermal is down around five Natural gas is is under a thousand. [00:15:49][39.0]
Stuart Turley: [00:15:51] So when you sit back and take a look, your energy delivered to the consumers is significantly less and less impactful on the environment using natural gas. Let’s use natural gas and get to carbon net zero using renewables but you’re not going to do it with China and coal we’re going to have a plan. So all these stories fit in and you got to look at all the different places they fit in. [00:16:24][33.5]
Stuart Turley: [00:16:25] It’s a long way to destroy the dollar. Jim Rickards warns of Supply Chain Fragility and BRICS currency Plan. This article is phenomenal and I’ve already reached out to him to come on the podcast. He is a seven different book is Sold Out was his recent best selling book Why Broken Supply Change would Cause Big Inflation? Oh yeah, we’ve had a bunch of it. But I’ve been reading some of his other stuff and I’ll let you know as soon as he calls me if I have to get off this podcast because he’s calling, I’ll let you know. [00:17:00][35.4]
Stuart Turley: [00:17:03] I love one of these his line in here, Richard Rickards points out Putin has been very patient about the deal is in the Green Deal is what he’s referring to he had a deal. [00:17:15][12.0]
Stuart Turley: [00:17:16] Ukraine was not living up to their end of the deal, Putin says we are the ones getting attacked, so screw the deal. What’s that going to do to the price of grain? It’s going to send grain prices up, and that’s already up 10% in a matter of days. [00:17:31][15.5]
Stuart Turley: [00:17:33] Now, here’s where it fits into BRICS and everything else. Putin’s over there. Putin in Kiev already had a signed contract and the U.S. begged. So here he is again. And Putin had a grain deal with Kiev and they backed out and redid it. So old Putin’s over here, tired of everything and it’s coming in. [00:18:00][27.0]
Stuart Turley: [00:18:00] But here’s where it gets down to it. BRICS Michael, as you know, is going to be a gold backed security. He comes down into here and says, you don’t actually have to have gold in order to be a gold backed security I’m kind of intrested on that. [00:18:17][16.6]
Michael Tanner: [00:18:17] So what does that make it? I mean, it may part is, is that what BRICS decides to do is going to be extremely influential around the world. [00:18:27][10.0]
Stuart Turley: [00:18:28] Exactly. Here’s here’s what he says. Let’s say the BRIC quote unquote, break or, you know, their dollar is worth one ounce of gold today that is 1,970 per ounce. Except the BRIC is not anchored to the dollar. It’s anchored to gold, which stands in the middle of this equation. [00:18:46][17.9]
Stuart Turley: [00:18:47] So the dollar is the price of gold going up or down all the time, which means the dollar or the BRIC exchange rate is going to go up all the time. They don’t have to back it up with gold they actually don’t need any gold. [00:19:01][14.3]
Stuart Turley: [00:19:02] If you make your currency anchored to gold, you will want the price to go up or down. You want the price of gold to go up because that means the BRIC is worth more in the dollar. [00:19:13][10.5]
Stuart Turley: [00:19:14] To summarize the rest of the article, he says, all you have to do then is you get off the dollar, you have a fake gold standard that you’re going to use and then crumple the supply and everything’s going to go to hay in a handbasket. He’s he’s just outlined a whole blueprint on how to take down the dollar. [00:19:36][22.2]
Stuart Turley: [00:19:36] Now, everybody was saying that we go to BRICS it could be years and decades. If you have people that really understand the supply side of things, you combine BRICS and a gold standard with somebody trying to kill the supply side, That’s a really, really quick that’s a I found this very, very important. [00:19:58][21.8]
Michael Tanner: [00:19:59] Yeah. No, I mean, I think as I’ll say it again, I sound like a broken record. What Briggs decides to do with the currency is scary because they’re going to have a lot of weight influentially, who are the companies in BRICS? Brazil, Russia, India, China, South Africa just like the biggest economies in the world. [00:20:15][16.1]
Stuart Turley: [00:20:16] So when they get done with BRICS plus, Michael, 50% of the world’s population will be in it. [00:20:23][6.9]
Michael Tanner: [00:20:24] And Energy News Beat, Don’t forget that [00:20:24][0.0]
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