Daily Energy Standup Episode #184 – Clashing Currents: Grand Canyon, Greek Shipping, Russian Energy, and Green Transition in the Spotlight

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Grand Canyon monument won’t end fight over uranium mining

August 9, 2023 Mariel Alumit

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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, August 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 www.EnergyNewsBeat.com Stuart Turley, my man. How we doing today? [00:00:32][25.1]

Stuart Turley: [00:00:33] It’s a Beautiful day in the Neighborhood. Man I was in Fort Worth today you got to love it. [00:00:37][4.4]

Michael Tanner: [00:00:37] You were driving all over the place today, surviving that excessive heat warning that seems to be a staple on my phone now so we hope everybody is stable and staying cool right now. But we have an absolutely fire show lined up for you guys today. [00:00:51][13.3]

Michael Tanner: [00:00:51] First up on the menu, Grand Canyon Monument won’t end fight over uranium mining. Dun! Dun! Dun! Something that’s near and dear to our heart. Uranium mining, That’s a joke, but Stu will cover what’s going on in the Grand Canyon. [00:01:04][12.7]

Michael Tanner: [00:01:04] Next up, Greek ship owners control 21% of global tonnage and 100% of all tiziki source. I added the last part, but Greek owning about 21% of global tonnage for LNG specific are shipping tonnage. Stu will dive in to what that means for the U.S. or for the global energy market at large. [00:01:25][20.6]

Michael Tanner: [00:01:25] Next up, Russia Anticipates 11 Billion Energy Revenue Boost Despite Embargoes in the words of Stu, “Sanctions Don’t Work”. And finally, we’ll end with two opinion articles. First up, Rex Murphy Trudeau Carbon tax is nothing more than a senseless money grab completely agree with him there. Next up, our favorite random guy on Substack David Blackmon is the Green Energy Transition Falling off the Rails, we’ll see what David has to say. [00:01:55][30.1]

Michael Tanner: [00:01:56] Stu will kick it over to me will cover a pretty great day in oil we topped over $84 for the first time really in 2023. So great, great, great news to see on the Oil and Gas front. We did see Natural gas spike all the way up to $2.96, Do I hear the bull market coming, baby? It’s perfect. I got Goldman Sachs is on the line with me, Stu they’ve got me lined up for their not gaffes interview out of your bullish interviews. [00:02:21][25.5]

Michael Tanner: [00:02:22] But we will then quickly cover EIA, we did see a little bit of a build but clearly didn’t affect the oil markets much at then an interesting proposal out of White Hawk energy two of the I’m a a minerals company is is trying to go to the people to force another minerals company to buy them in what they would consider a stock for stock transaction well read the press release. And I think it’s kind of interesting and I mean, I want to do the same thing with us and Aramco, but we’ll dive in to all that and a bag of chips at the end, guys. [00:02:53][31.5]

Michael Tanner: [00:02:54] But first, check us out World’s Greatest Website www.EnergyNewsBeat.com the best place for all of your Energy News. Dashboard.EnergyNewsBeat.com the best place for all of your Data and Energy News Combo get it while you still can definitely go behind a paywall. [00:03:10][16.5]

Michael Tanner: [00:03:11] Big shout out to Stu and the Team for keeping up Energy News Beat, they do a great job. It’s really, I mean, telling you is the place to be for all your Energy News, you can hit the description below. Questions@EnergyNewsBeat.com and again, that description below. If you’re listening to this on Podcast, going to tell you how to get in contact with the show and links to all of the articles which are courtesy that World’s Greatest Website. Well, kick us off, Stu are we starting with the Grand Canyon? [00:03:37][25.8]

Stuart Turley: [00:03:38] Let’s start with the Grand Canyon. Grand Canyon Monument won’t end fight over uranium mining. You know, you can’t buy a good Grand Canyon story. I rappelled into the Grand Canyon in college, had these murals running up and down the thing it was. Never mind. Oh, I’m regressing. [00:03:57][18.9]

Stuart Turley: [00:03:58] Okay. If President Joe Biden creates a national monument around the Grand Canyon, that doesn’t mean the long fight over potential uranium mining in the area will end this beloved president chowder head, President Chowderhead, we could use that. He is traveling to arizona where he actually entered was interviewed by Michael the weather channel and hard beginning interview by the weather channel. Biden has faced increasing pressure. [00:04:35][37.0]

Michael Tanner: [00:04:36] Im glad my grandma saw that interview then. [00:04:38][1.5]

Stuart Turley: [00:04:39] The What?. [00:04:39][0.2]

Michael Tanner: [00:04:39] I’m glad my grandma saw that interview that. [00:04:41][1.8]

Stuart Turley: [00:04:41] Oh My Goodness. [00:04:42][0.5]

Michael Tanner: [00:04:42] Every Grandma in America saw that Interview. [00:04:44][1.6]

Stuart Turley: [00:04:45] In recent months, a coalition of bipartisan lawmakers and tribes, including the Havasupai and Hopi, have pushed the administration to create the 1.1-million-acre I don’t even want to pronounce is the Baaj Nwaavjo I’tah Kukveni Grand Canyon National Monument. [00:05:02][16.6]

Michael Tanner: [00:05:07] So so let’s let’s stop walk me back here Stu, So I assume the area around the Grand Canyon is rich in minerals is that basically what’s happening here? And there’s a new and and so what there’s this new bill that’s if you establish a natural, a national monument or a national park, you then can’t necessarily drill that is that or mine it is that basically going on?. [00:05:30][22.8]

Stuart Turley: [00:05:30] Open mine, Open mine. That is correct. And the Open mine in there is uranium. Here he is. He is saying, yes, we want nuclear and then, no, we’re not going to mine in the area that they’re talking about after being in the Grand Canyon, you can enjoy the beauty from the bottom looking up it is spectacular we need to guard that. [00:05:55][25.2]

Stuart Turley: [00:05:56] I’m not saying that that is not something we got to guard, but where this Proclamation in 1996 barred new mineral leases, mining claims, prospecting or exploration activities, they’re reaching way outside where they were already approved for mining. So what they’re now doing is they’re going, Oh, we want these other million acres over here. So it’s unlikely that any existing claims would be valid, So they’re going retro. [00:06:30][34.6]

Michael Tanner: [00:06:32] Here’s the and this is this highlights the unfortunate truth about the Energy Transition and specifically the move to renewables under the current, you know, Solar, Wind, EV battery, all that. [00:06:46][14.4]

Stuart Turley: [00:06:47] Right? [00:06:47][0.0]

Michael Tanner: [00:06:47] Is that we need minerals. People want they don’t want it’s it’s the old adage with with homes not in my backyard. [00:06:53][6.6]

Stuart Turley: [00:06:55] NIMBYs are liars. [00:06:56][1.1]

Michael Tanner: [00:06:57] Everybody wants batteries, Everybody wants a Tesla until the mines got to now come in your backyard, well I don’t want the mine there the uranium is. So this highlights an interesting conundrum that we’re I don’t think anyone really knows how to solve and it’s why up until now we’ve been okay outsourcing that to other parts of the world. [00:07:17][20.6]

Michael Tanner: [00:07:18] China, Africa, eventually to support the amount of, you know, minerals that we’re going to need. I happen to know a little bit about this subject the about minerals that we’re going to need is going we’re going to have to come here home and get them at some point, we’re going to we’re not going to end it. [00:07:37][19.2]

Michael Tanner: [00:07:37] If China controlling 90% of the critical minerals market, if we for the eventual war that were that are our leaders tend to, you know, want to get us in with, you know, World War Three or Four whichever one we’re going to get in with China. [00:07:49][12.2]

Stuart Turley: [00:07:50] Right. [00:07:50][0.0]

Michael Tanner: [00:07:50] We know that’s coming you know, No. One No. You know, when that happens, we’re in trouble. So that’s I think that’s what this article, in my opinion, highlights specifically is, okay, we’ll get it. All right. We’re not going to get uranium from the Grand Canyon. Cool. I think we should keep The Grand Canyon is a national monument. You don’t have to you. [00:08:08][17.7]

Stuart Turley: [00:08:09] There’s lots of area [00:08:09][0.0]

Michael Tanner: [00:08:10] Ill hop on that Train i like the Grand Canyon I’d never seen it with my own eyes. The problem is, you start doing this to every single place, you’re going to run out of minerals. So where’s the medium? [00:08:18][7.9]

Stuart Turley: [00:08:19] Here’s. Here’s the Gotcha, And I, since I have been it’s a grand bottom of the Grand Canyon many, many miles rappelling in, love it. The problem is the United States gets 60% of its uranium from. [00:08:38][18.6]

Michael Tanner: [00:08:39] China? [00:08:39][0.0]

Stuart Turley: [00:08:40] Russia. [00:08:40][0.0]

Michael Tanner: [00:08:41] Oh,. [00:08:41][0.0]

Stuart Turley: [00:08:42] Guest who bought most of our uranium supplies? Russia. Guess who sold them to Russia? Bill and Hillary Clinton. I am not kidding. So when you sit back and take a look, we now have a place that you can you can actually have a uranium mine and it won’t impact the Grand Canyon. How this plays into these next two articles is about Russia’s control. You walked right into that one, didn’t you? [00:09:20][37.4]

Michael Tanner: [00:09:20] I walked. Anything to get a Clinton initiative in there you yield. So What’s Next to Stu? [00:09:27][6.9]

Stuart Turley: [00:09:28] Okay. Let’s go to your favorite topic, the Dark Fleet. You know, I almost want to get at Darth Vader we’re talking about the Dark Fleet. You know, Greek owners control 21% of global tonnage. This has a lot to do with the Dark fleet. [00:09:48][20.7]

Stuart Turley: [00:09:50] There’s 5520 Greek merchant fleet having grown by 50% in the last ten years. This is one of the main areas. More than 40% of the eco friendly oil tankers and 16% of the LNG carriers being built today will be delivered to Greeks. The average age of the Greek is ten years, not people, but the fleet is average Ten years that’s huge. [00:10:24][33.8]

Stuart Turley: [00:10:26] When you sit back and take a look Greek shipping is the main facilitator of the transport of essential goods in terms of controlling 31.27% of the world’s oil tanker fleet. 25% of the world’s bulk carriers. 22% of the LNG carriers 15% of chemical and product tankers and 11% of LPG carriers and 9% of the cargo. These guys are on the throat of energy. Think about that. [00:11:06][40.1]

Michael Tanner: [00:11:07] They really are. They obviously they have a location advantage being there in the Mediterranean they’re. You know, being a ports. Basically, every part of Greece is available via a port so you have a lot of places to dock these things. They’ve identified early on. I mean, this is something that goes back years now with the Greek economy it’s not necessarily. [00:11:27][20.6]

Stuart Turley: [00:11:29] Right. [00:11:29][0.0]

Michael Tanner: [00:11:30] And, you know, remember, you know, when I was, you know, you know, coming up in in really learning about what’s going on in the world, all I remember was Greece was always going bankrupt, (Bankrupt! Bankrupt! Bankrupt!). [00:11:40][9.8]

Michael Tanner: [00:11:40] And when you don’t what you realize now that I didn’t realize then was part of the reason they were able to get they were keep getting bailed out was because of their importance to the Energy Ecosystem. You don’t realize that at least me, when you first, Oh, Greece is going bankrupt let them go bankrupt Cool! Do you want oil? [00:11:57][17.1]

Michael Tanner: [00:11:58] You know, I mean, seriously, when you talk about it, I mean, even though that they’ve you know, they said they’ve increased their fleet, you’re still talking about ten years ago there were still 2500 Greek vessels, which was still probably the same, you know, 20, 25% of the market. So You know, it’s it’s the last bastion that Greece really has besides, you know, with Santorini, you got you got ships in Santorini, it’s all you got. [00:12:24][26.2]

Stuart Turley: [00:12:26] But anyway, I thought it was pretty interesting because this is their covering for the Dark fleet and I’m just it’s the way it is. And they’re they’re right in the middle of selling the old ships new ships they’re a ship broker, if you would. [00:12:45][18.5]

Stuart Turley: [00:12:46] All right. So let’s go to the next one, Michael. Russia Anticipates $11 Billion Energy Boost despite Embargoes. Embargoes only get Sanctions, only get the consumers in the drive through. Russia is expecting extra oil and gas revenues to reach 1 trillion rubles or 11 billion in the last five months of the year despite Sanctions. Wow. [00:13:15][29.4]

Michael Tanner: [00:13:16] Wow. [00:13:16][0.0]

Stuart Turley: [00:13:17] The finance minister hopes to put the fat revenues toward covering his budget deficit, which has ballooned thanks to the war. I’ll tell you, we called it last year you know, you want to call them whatever it is I was going to I said this is not going to hurt Putin. [00:13:34][16.4]

Stuart Turley: [00:13:35] And so far, the Ruble has weakened compared to the Dollar, which means more Rubles and the additional revenue for the government. The extra windfall from oil and gas revenue comes even as their gas revenues fell by 47% even though that they did. [00:13:56][21.1]

Stuart Turley: [00:13:56] Now, Russia is going to be dropping their production by 300,000 barrels. I got to figure out where that is coming into play and how it is in OPEC Plus, as they’re going to be dropping that in so forth, 300,000 barrels excuse me a day is what they’re going to be dropping. [00:14:14][18.2]

Michael Tanner: [00:14:15] 3 million a day that’s a little much, but it’s. [00:14:17][2.6]

Stuart Turley: [00:14:18] 300,000 so that’s not much, but it is significant. [00:14:20][2.4]

Michael Tanner: [00:14:22] Yeah. I mean, guys, Sanctions they don’t work. [00:14:25][2.9]

Stuart Turley: [00:14:25] Sure. Oh, there it is. It’s in the bottom line. [00:14:27][1.5]

Michael Tanner: [00:14:27] Russia might not may have made more money if we didn’t have sanctions, but oil stands at 85 bucks right now, guys. [00:14:34][6.8]

Stuart Turley: [00:14:35] But you know what? [00:14:35][0.5]

Michael Tanner: [00:14:35] Sorry. Sanctions don’t work! [00:14:37][1.4]

Stuart Turley: [00:14:38] No. And you know what? If I was in Russia’s shoes, I would say to the U.S. as well, too. I mean, when you Weaponize the Dollar, you get back, aren’t you? All right. All right. Let’s go to the next one here. [00:14:54][16.4]

Michael Tanner: [00:14:54] These two opinion articles here. On the bumps we got First up, Rex Murphy. Trudeau Carbon tax nothing more than a senseless money grab. [00:15:06][11.4]

Stuart Turley: [00:15:07] I’ll tell you if this is him in the picture. He looks like either a muppet. Or it looks like Oscar, you know, with glasses all clean up, you know, out of the. Anyway, In this opinion article. Liberals don’t even like to call it a tax they the phrase you hear is climate ministers in the green warrior Justin Trudeau says putting a price on pollution. [00:15:38][31.5]

Stuart Turley: [00:15:40] Michael you can’t Tax Carbon all you’re going to do is people that produce carbon are going to buy it and then pass the cost on to the consumers. It does not change anybody’s behavior. They won’t call the Carbon Tax what it is they call it what it is not. [00:15:58][18.1]

Stuart Turley: [00:15:58] You put another name on something only when you are or should be ashamed of it. I thought that was pretty cool. Liberals desperate to sell the senseless curb on growth and industry head to Cannes Fact Some moronic twist of logic any reality to justify it. Hmm. [00:16:18][19.5]

Michael Tanner: [00:16:19] Yeah. Here’s where I agree and disagree with our boy Rex here. I agree with him on the fact where he says, hey they don’t they’re masking this Carbon Tax in all of this other swanky terminology, which is Call it a tax. [00:16:47][27.9]

Michael Tanner: [00:16:49] Where I disagree with him. Is that if you actually look at the literature, something I’ve done, unfortunately, because I’ve been required to. Unfortunately, it’s not fun to read through papers that are, you know, peer reviewed articles talking about the difference between, you know, what’s more effective Carbon Tax, Different types of Carbon Markets. [00:17:10][20.3]

Michael Tanner: [00:17:10] If you were to do a Meta analysis of all of those and lay out the pros and cons and lay out where it’s work, where it hasn’t in most the way that Meta Analysis would show most likely the most effective way to handle lowering emissions is through Carbon Taxes. That’s the reason why the AP has come out and supports a Carbon Tax, the American Petroleum Institute is why Tammy’s come. [00:17:36][26.1]

Stuart Turley: [00:17:38] You said Carbon tax? [00:17:39][0.8]

Michael Tanner: [00:17:39] Tax! Tax! Because Carbon Markets can be gamed in, generally, they’re going to be gamed for the big guy. You don’t think ExxonMobil is going to spend a lot of money to figure out how to game the system so that they get all the permits? Come on, people. Come on. Wake up. Hello, McFly. You know, wake up. [00:17:59][19.9]

Michael Tanner: [00:18:01] So. You tax it now it’s just a line item on your economics and it makes the whole lower band of economic projects uneconomical. I mean. And this is where I get pushback from heart you probably from you and people, hard core people on the right. [00:18:19][18.4]

Michael Tanner: [00:18:20] I think Carbon Tax is probably the only way you actually solve emissions from a true level. Now, I’m not saying $1,000 per metric ton, but somewhere in that 10 to $20 range, that’s probably where it needs to be, to be honest with you. And it’s being inadvertently taxed already considering what companies are having to do and report. [00:18:42][21.8]

Michael Tanner: [00:18:43] But in Canada, it’s different again part of this is there’s this new tax they’re trying to apply is basically doubling down. They’ve had a carbon tax in British Columbia for 14 years. So again, I’m with Rex here this new law is probably a money grab. [00:18:57][13.9]

Michael Tanner: [00:18:57] What I think the more important, in my opinion, overarching fact about this is, is I’m actually probably more for Carbon Taxes than I am Cap and Trade, if only because it’s just simply it’s much more simple to roll out and I prefer simple over complex. I don’t know what you think Stu. [00:19:14][17.1]

Stuart Turley: [00:19:16] I think it’s a money grab period. [00:19:17][1.8]

Michael Tanner: [00:19:18] In this situation. But let’s step back for the real question. Carbon tax? Carbon Markets? What do you prefer? [00:19:24][5.7]

Stuart Turley: [00:19:25] Both are equally gameable and I think that the only way that you’re going to do this is through a true plan of not having any taxes associated with it, but rather doing the best that is meeting physics. And fiscally, if you meet physics fiscally and ecologically, you will solve all that problem without any taxes. [00:19:53][27.7]

Michael Tanner: [00:19:54] I’ll take that. Put that. Put that on a T-shirt, folks. We’re going to think about it. What was it? What can you say those three again? I mean, that T-shirt I don’t even know what that means but I’m down. [00:20:05][10.4]

Stuart Turley: [00:20:05] Technologically. If you do it ecologically and you do the lowest cost impact or lowest impact to the environment, that’s Natural Gas, that’s Nuclear. You know, and you take a look at those kind of things. So it’s ecologically, fiscally. What was the other one? [00:20:23][18.0]

Michael Tanner: [00:20:25] I don’t know. [00:20:25][0.3]

Stuart Turley: [00:20:25] It was good I had to go play the tape. [00:20:27][1.4]

Michael Tanner: [00:20:28] All right, let’s get to our favorite guy on our favorite random guy on Substack, David Blackmon. What’s he got? [00:20:33][4.6]

Stuart Turley: [00:20:33] Oh, man, I love me some David Blackmon he is one cool cat. Is the green energy transition falling off the rails? And I think that there is an Ms. Producer if you could fly in this video, we would greatly appreciate this about a one minute video so bear with us. [00:20:54][21.2]

Stuart Turley: [00:20:55] For our podcast listeners you’re going to hear the Benny Hill song and when you’re done with it. So bear with us here. It’s about 30 seconds to the minute we’ll just have it flying around for a second so here we go. [00:21:10][14.7]

Short Video Clip: [00:21:10] (Video Clip) [00:21:10][0.0]

Stuart Turley: [00:22:12] Okay. Now, Michael, how did you like that tracker and everybody else dragging those people out of the UK? They were people trying to stop Oil. Just stop Oil and people are tired of it so this is the UK. David Blackmon was talking about a worldwide kind of thing, and I think that video pretty much sums it up as people are getting tired of it. [00:22:37][25.3]

Stuart Turley: [00:22:38] But David goes in and says, There’s much type Energy Transition is starting to crumble at its foundation they’ve seen the following. These are key, Ford Motor wants its investors to lose 4.5 billion in 2023. China has commissioned another 50 gigawatts of coal fired plants. Brits have led by prime minister beginning to back away from aggressive transition timelines. [00:23:11][33.7]

Stuart Turley: [00:23:13] They’re getting all grumpy and then people are getting all thrown around on this because they can’t afford it. The Scottish Government, forced to admit, had facilitated the felling of 16 million trees. You can’t buy that. When we had a couple of stories go. 60,000 views a day on those things. [00:23:33][19.9]

Michael Tanner: [00:23:34] Yeah, that was that’s the best article we’ve ever had on Energy News Beat, which cuts down 60 Minutes. I remember I was in Dallas moving. It was a little over a year ago,. [00:23:43][9.8]

Stuart Turley: [00:23:44] Right [00:23:44][0.0]

Michael Tanner: [00:23:45] Less over a year ago. I remember sitting in the airport watching the statue just go off because we had 1000 users reading about the Scottish government. So no i think this article does a really great job of stooges summarizing how it really in this last couple of weeks, we’ve seen a huge shift to, you know, what I would call smoke when there’s smoke, there’s fire. [00:24:06][20.8]

Michael Tanner: [00:24:06] You’re starting to see drips and drabs of people coming out and saying, oh, renewables, this British government, this German coal act, you know, mining for new coal Scotland for stupid Japan government firing up, calling in all these little things and you start piecing the tea leaves together for what could be an eventual swing towards what we’ve always said, natural gas, which is probably the transition. You will, you know, until we get fusion ready. [00:24:36][29.8]

Stuart Turley: [00:24:37] Well, what we’re seeing is there’s about two or three things that are coming around the corner that people need to look out for. A couple articles that I’ll talk about tomorrow US is now looking at a recession by the end of this year, beginning of next year. And the Global Economy is also looking to roll into that recession period. [00:25:00][23.0]

Stuart Turley: [00:25:01] And when people are starting to get worried about it and the number one reason is Energy Poor managed Energy. When people start getting all grumpy down and they start getting drug around by the these truckers in that video, it’s absolutely who we’re about to see more of that, Michael. And God bless David Blackmon. I love David. He has a way of articulating it everybody follow him on his Substack. That’s about it for me, Thanks for let me Rant. [00:25:30][29.0]

Michael Tanner: [00:25:31] Yeah, no absolutely packed show Before I go ahead and dive into the Oil and Gas markets for the day guys were pumped to announce a new sponsor. I’m Reese Energy Consulting this is somebody who we’ve worked with we’ve worked with our team multiple times we really love them. [00:25:50][19.1]

Michael Tanner: [00:25:52] Reese Energy consulting their your oil, Natural Ggas and NGL midstream partner they do everything, guys, midstream marketing, project management, anything around that game, they’re the best. Steve Reese, the guy who runs that absolute great guys. [00:26:07][14.8]

Michael Tanner: [00:26:07] Stu, I know you’re you’re really close with Steve we’re pumped to have them on as part of a sponsor, guys, so check them out. ReeseEnergyConsulting.com. You can look up Steve Reese on LinkedIn, one of the best LinkedIn followers you could get. Again, guys, that’s ReeseEnergyConsulting.com. [00:26:22][15.5]

Michael Tanner: [00:26:26] But I mean, great day Stu for the markets. I mean we’ve got a 5 million barrel build in the Crude oil reserves or in the crude oil reserves excluding Hezbollah which normally would be bearish that we see a 2023 high up to 84,23. [00:26:40][14.4]

Michael Tanner: [00:26:42] You know, if you Google routers would tell you mainly what’s coming out is we’ve got tightening fuel supplies, which is a gave we’ve got refinery tension that begins to work its way backwards and eventually hits oil prices considering people see what’s coming down the pipeline. [00:26:58][16.6]

Michael Tanner: [00:26:59] Also, OPEC plus has come out and reaffirmed and specifically the Saudi cabinet has signaled, hey, yes, Septembers ago, we might even see more and this could be something we put. All the way to the end of the year. [00:27:12][13.2]

Michael Tanner: [00:27:13] Again, it’s you know, this is not a good term to think about when we you know, this has been since debunked in the world of economics. But the idea of the last Laffer Curve, Stu, was the idea of how much revenue versus how many people are paying revenue in terms of how much taxes the government would get. [00:27:33][20.2]

Michael Tanner: [00:27:33] And there was this economist i think his name was James Lafferty. Jim Lafferty. He worked for the Reagan administration. It basically came up with the concept of this curve, which showed if you lower taxes but increase the taxable base, you actually raise revenues the same concept Saudi works with here. [00:27:50][16.8]

Michael Tanner: [00:27:50] They can actually cut oil, see a rise in prices and see a subsequent rise in their revenue even while cutting back on Oil and Gas. So, you know, think of it as the Saudi curve, the Saudi Lafferty Curve, as we would like to call it. So, you know, you learn something a little bit new today. Lafferty Curve. No. So someone who knows what they’re talking about is listening to this like, well, that’s been debunked multiple times. It has, but it works in this situation so just play along with me there. [00:28:20][29.7]

Michael Tanner: [00:28:21] Next up, I thought was interesting, Stu. You know, we we’ve seen some earnings continue to roll out, actually, before I get into that. Natural gas was up to $2.96, again, off at insane future heat. You know, we’re sitting here it’s 103 right now. The outlook is just going to continue to be hot, hot, hot all those weather models continue to be bullish. [00:28:44][22.3]

Michael Tanner: [00:28:44] You know, we might we might by the time so close tomorrow, Stu, we might see $3 natural gas would be absolutely unbelievable considering most of that stuff that’s coming out of mid con and East Texas is high beam MMBTU gas which means we get a nice premium over MCF so you know, depending on where you at in the country you begin to see this. [00:29:03][19.0]

Michael Tanner: [00:29:05] So natural gas going through a little bullish streak if you do see me move over and start working for Goldman Sachs, just understand once it tanks again, I will be back right here in the show. I thought it was this was really interesting, Stu we saw today there was a few earnings that dropped nothing. I thought that was you know, we know we saw Crescent Point or Crescent point drop earnings. We saw who else did we see today? Let me let me go back here, Stu. We saw a few nothing interesting tho. [00:29:32][26.9]

Michael Tanner: [00:29:32] Inter Plus announced results nothing to port Crescent Energy, as I mentioned. TALOS drop. Nothing interesting there. What I thought was interesting, though, Stu, was specifically, you know, we talk about M&A deals in how they happen behind the scenes well, when an M&A doesn’t happen around behind the scenes, you can go public and that’s exactly what’s happened right now. [00:30:01][29.1]

Michael Tanner: [00:30:01] White Hawk energy, a smaller mineral shops, is attempting to propose a combination with Phenix Minerals in a stock for stock transaction, and they’re going public with it. So shout out IR Guy of the week. What’s his name?J Slaughter back WhiteHawkEnergy.com. [00:30:17][16.5]

Stuart Turley: [00:30:19] Nice. [00:30:19][0.0]

Michael Tanner: [00:30:20] Oh but I don’t use the IR Guy of the week but basically what they’re trying to say is they are they are attempting and they’ve sent multiple letters to say hey we should combine we you’ll hold 61% of the new pro forma company and White Hawk minerals will receive a one time $0.20 per cash dividend it’s probably a cash grab for the White Hawk guys they probably are trying to finance college. You know, it’s quite expensive now. You get you’re sending your kids to Harvard. You know, no scholarship ain’t cheap. You know, you might need to cash out for $0.20 on the dollar. [00:30:55][34.9]

Michael Tanner: [00:30:55] I kid mostly they they announced you know they basically say that this new pro forma company is going to have you know, about 850 would have 880,000 gross units, save about 4 million of GNA per year. Yeah. Cut salaries, baby. We call that layoffs, baby. [00:31:12][16.9]

Michael Tanner: [00:31:13] Next, The Increase of Stockholder Payout, which is again, all of the White Hawk mineral guys, 50 to 60% of distributable cash and will increase the dividend by over 100%. Okay. Cash grab meaning accretion to PHENIX, distributable cash flow, again, hand out to the investor or hand out to management, accelerated conversion to an even an increased weighting in mineral royalty assets interesting there. [00:31:36][23.3]

Michael Tanner: [00:31:37] A larger company more liquid stock. Aha! Now we know cash it all comes down to money liquids they slip that in in the last one, they slip that in in the last what good IR Guy of the week what J slaughter back hi my friend and you see what they’re going for they’re a larger company with more liquid so it’s a cash grab, folks. It’s a cash grab. [00:31:58][21.7]

Michael Tanner: [00:31:59] Now. I’m all for it. if I was on the White Hawk side I do it. There’s probably a reason they had to go public with this offer because behind the scenes didn’t work because Phenix looks at this is like, what is the cash grab? [00:32:10][11.0]

Stuart Turley: [00:32:12] Yeah. Oops. [00:32:12][0.2]

Michael Tanner: [00:32:13] Look at the quote from Daniel Hertz, White Hawk Chairman and Chief Executive officer. While we have been disappointed with the engagement to date, just stop there. This isn’t going to work. This is a Hail Mary at the five yard line, this probably won’t work. And if it does? Good for you. I doubt it, though. [00:32:32][19.4]

Michael Tanner: [00:32:34] I thought this was funny before we let people go Stu. You know, it’s all headed downhill there’s this great Jim Cramer meme where it says, Now, Civitas today announced the appointment of Jeff Kelly as chief transformation officer retroactive to August 3rd, 2023. Oh, my goodness. [00:32:56][21.5]

Stuart Turley: [00:32:56] Stu, did you say the chief trends? What? [00:32:59][2.3]

Michael Tanner: [00:32:59] I said, Chief Transformation Officer. Oh, because that’s what they need. That’s what civic they don’t need. You know? Now, what he’s really brought in to do is the integration of its recent acquisitions, the Permian Basin. He’s going to be responsible for establishing a high performance organization, inspiring innovation, approval effectiveness and align stakeholders to help achieve the discoveries vision. [00:33:22][22.8]

Michael Tanner: [00:33:22] I had to sorry, I had to, like, stop puking before I threw up, you know? You know, it’s all you know, if I if I was giving you investment advice and I don’t I don’t give investment advice. I would tell. Sell, sell, sell, sell. [00:33:37][14.2]

Stuart Turley: [00:33:38] Sell, sell, sell. Or just. [00:33:38][0.6]

Michael Tanner: [00:33:38] CRAMER Sell, sell, sell, sell, sell, sell. For no other reason that they have a chief transformation officer. I mean, it’s just what’s that got to do with it? Can you guess we’re used to work Stu he most recent at Blackstone Group [00:33:50][12.1]

Stuart Turley: [00:33:51] I’ve never heard of a Chief Trans.. [00:33:53][2.3]

Michael Tanner: [00:33:53] Sweet. [00:33:53][0.0]

Stuart Turley: [00:33:54] I’ve never heard of a chief transition officer or trans officer or whatever. [00:33:58][3.9]

Michael Tanner: [00:33:59] Transformation. Chief Transformation Officer We’re going to transform us into a better version of ourselves. Theoretically. [00:34:06][7.5]

Stuart Turley: [00:34:08] Right? [00:34:08][0.0]

Michael Tanner: [00:34:10] Yeah. Yeah. Luck with that. [00:34:12][2.0]

Stuart Turley: [00:34:13] Yeah, that’s right. [00:34:13][0.7]

Michael Tanner: [00:34:15] Good luck with that. Yeah, copy that. He’s. He’s brought in so that when they he brought in. I mean, what what’s funny is Civitas at some point they go buy all this Permian Basin acreage. Well, what does that mean for their Colorado stuff? Are they eventually attempting to exit Colorado? Are they looking to offload their Colorado and go all to the Permian [00:34:35][20.0]

Stuart Turley: [00:34:35] I would. I would. Can you blame them? I would exit I notice you’re not in Colorado anymore. [00:34:44][9.1]

Michael Tanner: [00:34:46] Greatest state in the union. I mean, I’d love to be back. Well, literally in this chair, I’m sweating right now. I’ve got the AC on at 65. [00:34:53][6.8]

Stuart Turley: [00:34:54] I was one of the. It was till everybody moved from California. [00:34:57][3.5]

Michael Tanner: [00:34:59] I know. I am part of I will tell you this, though. I did recently get a bonus. I’m very glad I’m in Texas. Tell you what, I’m very glad I’m in Texas I’ll tell you that much. [00:35:07][8.5]

Stuart Turley: [00:35:08] We love us some Texans. [00:35:08][0.8]

Michael Tanner: [00:35:10] Love it. I don’t know property so I don’t get I don’t get screwed on the back end. So, yes. Civitas, Chief Transformation Officer. Ooh. Yikes. You got anything else Stu? [00:35:21][11.4]

Stuart Turley: [00:35:22] Now, we got a lot coming around the corner. I think people are going to see more ESG waking up. Supposedly more finance people are tired of losing money and we’re just going to be all over that news. [00:35:36][13.6]

Michael Tanner: [00:35:37] Yeah, we will be all over it. Guys, we appreciate you checking it out the World’s Greatest Energy Podcast. We got our weekly recap, which is now going to come on Saturday. So as you’re listening to this tomorrow, you can hear our new revised schedule. We’re going to start with the Start release excuse Longform podcast on Friday. So who you got this Friday? Who were you releasing on Friday? [00:35:58][21.0]

Stuart Turley: [00:36:00] Genevieve and she is a very good let me pull it right up here. [00:36:11][10.7]

Michael Tanner: [00:36:11] I’m I’m fascinated by she’s just she going to be even she’s very good, guys that’s all you need to know. [00:36:17][6.1]

Stuart Turley: [00:36:17] Genevieve Collins she is the AFP Texas State Director and it’s a very, very good interview. [00:36:27][9.4]

Michael Tanner: [00:36:27] She Firearms and Tobacco baby? [00:36:29][1.5]

Stuart Turley: [00:36:29] Absolutely not. It’s about getting America back on their feet again. It’s really good. [00:36:35][5.2]

Michael Tanner: [00:36:35] So check it out, guys World Greatest Podcast Energy News Beat. We appreciate you guys checking us out. You’ll hear us tomorrow you’ll hear Stu Friday you the Weekly Crap, Weekly Recap on Saturday. [00:36:45][10.1]

Stuart Turley: [00:36:48] Weekly Crap? [00:36:49][0.3]

Michael Tanner: [00:36:49] Depending on what you think of our takes, it could be the Weekly Crap and then you’ll hear us back on Monday for the next week, guys. Appreciate you sticking with us so far, we will see you Monday. [00:36:49][0.0]

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