Daily Standup Top Stories
What Are The BRICS Planning With August 22nd Durban Accords?
Authored by Peter Reagan at Birch Gold Group, Khashayar Kouchpeydeh In my first explainer about the BRICS nations, you met the players and you know why their decisions affect the global economy. But why do […]
Russia confirms BRICS will create a gold-backed currency
(Kitco News) – The gold market could see new bullish momentum as the world could see a new type of gold standard. Friday, according to state-run RT, the Russian government has confirmed that Brazil, Russia, India, China […]
Russia’s largest independent gas producer delivers first train to flagship Arctic LNG 2 project
Russia’s largest independent gas producer Novatek has successfully delivered the first train of its flagship Arctic LNG 2 project on the western shore of the Gydan Peninsula in West Siberia, which is slated to start […]
Higher energy prices push United States energy trade with Canada to record-high value
Data source: Standard International Trade Classification data published by the U.S. Census Bureau Note: Prices are adjusted for inflation. In 2022, the value of energy trade between the United States and Canada surpassed the previous 2008 record […]
China Abandons Paris Agreement, Making U.S. Efforts Painful and Pointless
It was a bad week for anyone who thought China would cooperate on emissions reduction. President Xi Jinping reiterated that his country would set its own path on the issue and not be influenced by […]
Highlights of the Podcast
00:00 – Intro
03:12 – What are the BRICS planning with August 2nd Durban Accords?
06:08 – Russia confirms BRICS will create a gold-backed currency
08:03 – Russia’s largest independent gas producer delivers first train to flagship Arctic LNG 2 project
09:32 – China Abandons Paris Agreement, making U.S. efforts Painful and Pointless
13:29 – Higher Energy Prices Push the United States Energy Trade with Canada to Record Value
14:57 – Market Updates
15:44 – Chesapeake going in and divesting of their South Texas assets, selling its remaining Eagle Ford assets for 700 million
19:50 – Outro
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Video Transcription edited for grammar. We disavow any errors unless they make us look better or smarter.
Michael Tanner: [00:00:07] What is going on Everybody, Welcome into another Edition of the Daily Energy News Stand up here on this gorgeous Tuesday, August 15th, 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? [00:00:31][23.8]
Stuart Turley: [00:00:32] Its a beautiful day in the Neighborhood and I’m getting ready to interview Doomberg tomorrow. [00:00:35][3.6]
Michael Tanner: [00:00:36] Yeah, that will be Awesome. You can check that out both on our YouTube and our Podcast link here on this same channel as you guys listen to it. Love Doomberg have it subscriber to his newsletter so hopefully we’re going to make sure that we use his image in the video. When when we do the video, you’ve got to make sure that you have his little ah… [00:00:54][18.8]
Stuart Turley: [00:00:55] Oh. [00:00:55][0.0]
Michael Tanner: [00:00:56] Doomberg Bird there [00:00:56][0.3]
Stuart Turley: [00:00:57] Oh, he’s now a talking bird and he’s there the whole time. David Blackman, our team mate, just interviewed him and it was a hoot. Yeah. I mean, he’s really cool. [00:01:08][10.8]
Michael Tanner: [00:01:10] No, that’s Awesome. So we appreciate him coming on and you can get checked out on our Podcast, but we have an excellent show for you today. First up on the menu, What are the BRICS planning with August 22nd Durban Accords? I mean, this just sounds outright spooky here. Stu’s been doing a great job of keeping us up to speed on BRICS. We also will cover, Russia confirms BRICS will create a Gold backed Currency both these go hand in hand. And Brick seems to be continuing to push the melt here. [00:01:45][35.2]
Michael Tanner: [00:01:45] Next up, Russia’s largest independent gas producer delivers first train to flagship Arctic LNG2 Project. Russia continue despite sanctions to push energy this is a large project they’ve been looking to turn online. [00:01:58][13.0]
Michael Tanner: [00:01:59] Next up, Higher Energy Prices Push United States Energy Trade with Canada to record value. Next up, China Abandons Paris Agreement, making U.S. efforts Painful and Pointless. That’s, I think, the real key. [00:02:12][12.6]
Michael Tanner: [00:02:13] Stu, they kick it over to me. I will cover what’s going on in the oil and gas markets. We saw oil drop to 82,36 on the close. We also saw silver BOE go ahead and pick up for about $700 billion Chesapeake South, Texas assets so I will open a little bit on that deal. And then once you get on out of here, get to it and start your Tuesday. [00:02:33][20.6]
Michael Tanner: [00:02:34] Before we do all that, guys, remember all these Stories and Analysis are brought to you by the World’s Greatest Website, www.EnergyNewsBeat.com the best place for all of your Energy and Oil and Gas News. Stu does a great job of curating that site to make sure it stays up to speed with everything you need to know about the Oil and Gas Business. [00:02:49][15.6]
Michael Tanner: [00:02:50] Dashboard.EnergyNewsBeat.com the best place for all of your Energy and Data News Combo. Hard at work at V2 get that before it goes behind a paywall. Check out the description below guys links to all the stories we are about to cover. Follow us on YouTube, Spotify and wherever you get your Podcasts. Im out of breat tho Stu. Where do you want to begin? [00:03:09][18.7]
Stuart Turley: [00:03:10] Hey, let’s go rumbling. Hey, What are the BRICS planning with August 2nd Durban Accords? Okay, this is coming up quick. And you know, it is Brazil, Russia, India, China and South Africa are in the BRICS. [00:03:25][15.6]
Stuart Turley: [00:03:26] Now, let’s go through this here, This is Global Trade runs on U.S. dollars. This is where we were talking about this and that is Nixon got us off the Gold Standard. [00:03:40][13.8]
Michael Tanner: [00:03:41] Yep. [00:03:41][0.0]
Stuart Turley: [00:03:41] That allowed our government at that point to just print money whenever they wanted to and it just drives me nuts. He puts in this article, okay. He says right here, “It’s our Currency, but it’s your problem” President Nixon said that. I mean, not only was he like a real loser, they had to bail out, but “It’s our currency but it’s your problem”, Okay. [00:04:11][29.8]
Stuart Turley: [00:04:12] Every guy, every President since then has notched that attitude up and weaponized the Dollar. So now The result of the “shock and awee” economic warfare were underwhelming. The Russian economy failed to collapse instead, they used business as usual taking payments in Rubies or Gold. [00:04:35][23.2]
Stuart Turley: [00:04:36] Michael the number one and number two countries for buying Gold. China and Russia. Two of the members of BRICS China and Russia. Who’s going to be the primary backers of this new gold? And then there’s another article that we ran last week that says they’re going to do the same thing. While the U.S. denied the U.S. citizens in 1933 to change Dollars for Gold. You can’t buy gold as a U.S. citizen. That’s going to be the same thing they’re not going to have to go through and do the same thing they had limits on it, Michael. [00:05:18][41.7]
Michael Tanner: [00:05:19] Okay. So you don’t think going to be able to buy Gold here soon? [00:05:21][2.7]
Stuart Turley: [00:05:22] No. Now and so what you’re going. [00:05:25][2.5]
Michael Tanner: [00:05:26] Conspiracy Stu. [00:05:26][0.0]
Stuart Turley: [00:05:27] Well, hey, it’s what it is. Hey, you want to talk about conspiracies? There’s a lot of conspiracies floating around here about Hawaii, and I’m not going to bring us up on that one. Okay. [00:05:38][10.9]
Michael Tanner: [00:05:39] Okay. [00:05:39][0.0]
Stuart Turley: [00:05:41] August 22nd may mark the beginning of the end as business as usual. This has been coming fast and I’ve been warning you and you said, hey, everybody says, oh, it may take us years to get off of the U.S. dollar. I think it’s going to happen sooner or not. [00:05:57][15.3]
Michael Tanner: [00:05:58] Interesting. Well, what’s what’s going on now with Russia? Russia’s confirming something about BRICS here? [00:06:02][4.6]
Stuart Turley: [00:06:03] Yes, Russia, William Medal Club there you go. It’s official. BRICS is planning to introduce this bill, trading in currency backed by gold, many analyst gold backed currencies the next evolution in this process. [00:06:20][16.5]
Stuart Turley: [00:06:20] And Michael, you brought it up being the you’re the mines graduate with your master’s and know it all and the most knowledgeable millennial I know on this was it 10% is the only Gold are you looking for somebody that. [00:06:37][16.3]
Michael Tanner: [00:06:37] Because you werent describing me. [00:06:38][1.3]
Stuart Turley: [00:06:40] Well, both you and I have haircuts for our podcast listeners, so we get smarter. At first glance, the new transaction unit, backed by gold sounds like good money, and it could be foremost a major challenge. [00:06:52][12.0]
Stuart Turley: [00:06:53] Now for making the new currency as good as gold it must be convertible to gold on demand. And there’s where the argument comes in. Is it going to actually be or is it going to be backed by Russia and China, very much like the U.S. said. “No gold for you. It’s only mentally”. [00:07:14][20.6]
Michael Tanner: [00:07:16] The full faith and credit of the CCP. [00:07:17][1.4]
Stuart Turley: [00:07:19] So this is turning out to be really interesting. You be able to buy Gold. Boy, I’m I’ll tell you what, I want a Gold mine right under my bunker. [00:07:28][9.2]
Michael Tanner: [00:07:30] And this is when we should probably run an ad for some Gold Coast Company to be like Buy Gold Now!. [00:07:35][5.1]
Stuart Turley: [00:07:36] Yeah. [00:07:36][0.0]
Michael Tanner: [00:07:36] If we were Fox News, we’d run an ad for a gold go below us. [00:07:39][3.1]
Stuart Turley: [00:07:40] I’m going to call William Devane. Hey, I’m William Devein. [00:07:43][3.1]
Michael Tanner: [00:07:44] Yeah, Lear Street Capital, where you can buy and sell Gold in a 45% markup from us. [00:07:52][8.5]
Stuart Turley: [00:07:53] Right. And so that’s where it gets in. You have to buy them through those as opposed to just going to the government and exchanging it for gold. Nonsense. [00:08:00][7.4]
Michael Tanner: [00:08:02] While we’re in Russia they had something I mentioned this at the top. They had something with their some gas shipment just got shipped up to the Arctic. Are they seeing gas in the Arctic? [00:08:13][11.3]
Stuart Turley: [00:08:14] Well, no. The Arctic is actually where they’re getting all of their natural gas from Boston. It goes into the Boston, which, as you know, does New York and everything else they are not ESG friendly on the Arctic. [00:08:32][18.0]
Stuart Turley: [00:08:33] And so they have their second train, Arctic LNG 2 train is now coming online. What this means is that Russia is really piling in on the long term energy contracts for Russia. What’s not covered in this story is the fact that the Arctic Express or the shipping route from right over the pole over to Asia is really working now. [00:09:01][28.4]
Stuart Turley: [00:09:03] They have 5 Nuclear Icebreakers and those dudes are running all the time and says that you’re going to go right on through to Asia and it’s it’s going to be cheaper and very efficient. So they’re not ESG, but they’re selling a lot of LNG and they’re going to be doing a lot. [00:09:24][20.7]
Michael Tanner: [00:09:25] Yeah. What’s next here? [00:09:26][1.4]
Stuart Turley: [00:09:27] China. Bannon’s plan. This one’s a nutty one. China Abandons Paris Agreement, making U.S. efforts Painful and Pointless. [00:09:38][10.6]
Michael Tanner: [00:09:42] Okay, words. [00:09:42][0.5]
Stuart Turley: [00:09:43] Let me let me go through a couple Trump isms here. And so when Trump got out of the Paris Accords, I’m just setting the tone for this article. Trump got out of the Paris Accords and he he did it because, look, we’re reducing our Carbon Footprint, China’s doing nothing. It’s the same thing he did with NATO. We’re going to back out of the NATO payments until you all pay your fair share. Brilliant. It was one of the best things he could have done. [00:10:12][28.9]
Stuart Turley: [00:10:13] He backed out of the Paris Accord and said, Let’s retake the Paris Accord, which was good business. And then China, in the last four months has insulted Biden as insulted Xi and then, he has turned back around and insulted Kerry. Kerry is now turned back around. And now they’re having people trying to pull Kerry’s money out of a unapproved thing so all this has got a lot going on in the background let me go through the article now. [00:10:46][33.1]
Stuart Turley: [00:10:48] Xi says remarks came when Climate Envoy and former Secretary Igor no, John Kerry was visiting Beijing to open it up. The clear signals from China are a deliberate slap in the face to America and to. And now Representative Chip Roy is sending filing things to de-fund Kerry’s climate change office at the State Department. [00:11:17][28.2]
Stuart Turley: [00:11:20] Based on China’s energy and resource endowments, we will be able to advance initiatives to reach peak carbon emissions in a well planned and phased way, with the principal getting before the new discarding the old he announced in the address to the party Congress. [00:11:37][17.3]
Stuart Turley: [00:11:39] He basically is saying Michael, Xi is saying he’s not getting rid of coal, he’s not getting rid of oil and gas because the energy per cost in the energy is not there in renewables, but they’re going to make a lot of money selling it to us. They’re pretty smart. We have to buy all of our stuff from them, but they’re smart enough to realize that it’s too expensive and that does not work within their their frames. [00:12:09][29.9]
Michael Tanner: [00:12:11] Yeah, no, I mean, what cracks me up is we are shooting ourselves in the foot while China is growing a third leg. I mean, it’s really what’s happening is they’re putting themselves ahead of the curve and ahead of us along for all of this stuff. [00:12:29][18.3]
Stuart Turley: [00:12:30] Right? [00:12:30][0.0]
Michael Tanner: [00:12:30] And we decide. No, no. Stu you have to go? You have to move to mouse powered now. [00:12:34][3.9]
Stuart Turley: [00:12:35] Okay, here’s where I here’s where the funny thing is, Michael. If the U.S. does everything that we say we can, okay, It is we 002 percent degrees. The U.S. is going to impact. We are a flea on a dog. But in the game of the net zero and climate criteria, we have no impact. None. And yet we’re going to spend trillions on this. Guess who’s going bankrupt? [00:13:14][38.7]
Michael Tanner: [00:13:17] Yeah. No, not me. But unfortunately, it’s going to be us. [00:13:21][3.6]
Stuart Turley: [00:13:22] So. And then higher energy prices we’re off to Canada here this is from the EIA put this out. Higher Energy Prices Push the United States Energy Trade with Canada to Record Value. When we want to take a look at this. It’s just crazy. [00:13:40][17.8]
Stuart Turley: [00:13:42] The value of U.S. exports to Canada and U.S. imports to Canada increased by a combined 41% in 2022. The value of the U.S. energy imports from Canada is $156.3 billion. When adjusted for inflation, it is adjusted value. Energy exports to Canada was 33.8 billion. That’s a lot of billions going back and forth it could have been a lot more if we had a Keystone XL pipeline. [00:14:15][33.7]
Michael Tanner: [00:14:18] What happened with that again? Oh, yeah. [00:14:19][1.6]
Stuart Turley: [00:14:20] Oh, that was President depends. I mean, Biden and he went out and then he said, I think it was this weekend, Michael, the IRA, the Inflation Reduction Act, really wasn’t going to ever reduce inflation that was kind of funny. [00:14:36][15.9]
Michael Tanner: [00:14:38] Okay. That is funny. I mean it’s unfortunate, but we had an opportunity to solve this issue with the Keystone pipeline and we and we swung and missed. So it is what it is. [00:14:51][13.4]
Stuart Turley: [00:14:52] Oh, you bet. Hey, this next article, I think, is all you. [00:14:55][3.0]
Michael Tanner: [00:14:57] Yeah, well, I’ll just come over and we’ll cover a little bit what’s going on in the oil and gas markets today. We saw overall markets choppy today. We were up about a half a percentage point. And the S&P NASDAQ got a bit about 1.8 percentage points. Crude oil dropped about a 10th of a percentage point, sits at about 80 to 40 right now fairly choppy throughout the day, though. [00:15:16][19.0]
Michael Tanner: [00:15:16] I think you’ve got two different things pulling prices one way or the other. Obviously, China having some softened demand expectations, is obviously going to pull back those numbers but on top of what we’re seeing on the supply side from a exceeded from a record demand here your you know market is kind of weighing those two things. I think ultimately this week we’re still going to end up bullish. [00:15:40][24.6]
Michael Tanner: [00:15:41] I thought the only other interesting thing, Stu, that I saw was Chesapeake going in and divesting of their South Texas assets, selling its remaining Eagle Ford assets for 700 million to kind of bring that total Eagle Ford package that they’ve been selling over the years now to 3.5 billion. [00:15:58][17.0]
Michael Tanner: [00:15:59] To give you guys a idea of the transaction size, 42,000 net acres, 540 wells in that Eagle Ford area, mainly in Webb County. Average daily production was about 29,000 BOE. So to give you guys an idea, 700 million divided by divided by 29,000, that gives you $24,000 per flowing BOE. It’s pretty good. I mean, considering the fact that this is gas. [00:16:24][24.8]
Michael Tanner: [00:16:25] You know, you look at somewhere around 50, you know, 35 to 50000 was what, you know, prime oil rich Permian was going for 50,000, you know, 35,000 or $50,000 per BOE. This is sitting at about 60% liquid so there you go should do about 75 or 50 million EBITDA and that’s a pretty it’s it’s a long payout. It’s a little bit interesting considering the price that they paid for it. [00:16:51][26.6]
Michael Tanner: [00:16:52] You know, this will close February, effective February one they’re going to receive 650 million upon closing final 50 million install will be paid a year from later. There is a little sweetener of oil. Prices are between 75 and 80 they’ll get an extra 25 and an extra 50 if it’s over $80. [00:17:09][16.6]
Michael Tanner: [00:17:11] I like the deal. I don’t love the deal, Stu. I think it’s, you know, if if it’s a little bit expensive, if you’re silver bone, you’re going to drill this asset up it natural gas prices I think you’re you’re buying may be a little bit low. I mean, it’s again, it’s liquids heavy. When they tell you it’s liquids heavy, it’s because they’re trying to convince you there’s not that much gas there there’s a little bit oil. No, No, No, we get it. [00:17:35][23.5]
Michael Tanner: [00:17:35] We get you’re buying a gas assets low price, hoping that when it gas prices, Poppy, come in and drill that baby up. I get it. I just don’t know if I agree with the play. Now, I. I know some people that would absolutely love this play, some of them working at Silver Bow. [00:17:48][13.1]
Michael Tanner: [00:17:49] But I think there’s two sizes. I probably you know I think if you’re your Nick Dell so you’re you’ve probably you’re trying to sell this to Silver Bow for four months now and it’s probably the silver bow side it’s been holding this up Obviously the oil prices has something to do with it, which is interesting, but. [00:18:05][16.3]
Stuart Turley: [00:18:06] They cove CNX?. [00:18:07][1.3]
Michael Tanner: [00:18:09] What’s up? [00:18:09][0.3]
Stuart Turley: [00:18:10] Was that Nick over at CNX? [00:18:11][1.1]
Michael Tanner: [00:18:12] No, I. Chesapeake. [00:18:14][1.5]
Stuart Turley: [00:18:15] Chesapeake. Thank you. [00:18:15][0.7]
Michael Tanner: [00:18:16] No, not quite. Nick, we love over the way you’re digging gas. I know you’re trying to put the podcast up. I like it, though. Nick, this is Nick D’Alessio. I nick the I don’t know who the CEO is. Nick DiLeo. They’re similar sounding names. [00:18:29][13.2]
Stuart Turley: [00:18:30] Yeah. I’m sorry I wasn’t paying attention. [00:18:31][1.3]
Michael Tanner: [00:18:32] Apples to oranges. Alright Stu what should people be worried about? [00:18:35][2.5]
Stuart Turley: [00:18:36] China, and crude has been overbought in the territory for some now in this article, Defying expectations of correction, it has been singularly focused on US economic out, optimism, exclusion, increasingly stronger headwinds and blowing in the Eurozone and China. China is announcing today when this is airing on their economy numbers. So I bet we’re going to see some ups and downs tomorrow on the crude oil based on China reporting how good their economy is. [00:19:14][38.3]
Michael Tanner: [00:19:16] Well, you always are scary, but unfortunately, you’re right most of the time. [00:19:19][2.9]
Stuart Turley: [00:19:21] Most attacks are mostly dead. [00:19:23][2.3]
Michael Tanner: [00:19:25] Only Mostly Dead! [00:19:25][0.0]
Stuart Turley: [00:19:26] Mostly dead!. [00:19:26][0.5]
Michael Tanner: [00:19:27] All right, Guys, We Appreciate you checking us out here Energy News Podcast. Reach out to us Follow us on LinkedIn, YouTube, Spotify, Apple Podcasts wherever you listen to us guys, you can find us for Stuart Turley, I’m Michael Tanner. We’ll see tomorrow, folks. [00:19:27][0.0]
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