Daily Energy Standup Episode #189 – Energy Chronicles: Duke’s Diverse Plans, Inflation Act Woes, Climate Concerns, and China’s Intentions Unveiled

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Video Transcription edited for grammar. We disavow any errors unless they make us look better or smarter.

Michael Tanner: [00:00:15] What is going on. Everybody, Welcome into another edition of the Daily Energy News Beat Stand up here on this gorgeous Thursday, August 17th, 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 Producers or the Purveyor of the Show, the Director and Publisher of the World’s Greatest Website, EnergyNewsBeat.com, Stuart Turley, my man, How we doing today? [00:00:37][22.0]

Stuart Turley: [00:00:37] It’s a Beautiful day in the Neighborhood, hey, I’ve been having some great conversation with people from around the world. [00:00:42][4.3]

Michael Tanner: [00:00:42] And now you have been you’ve been flying all around the world. We’re about to fly all around the world for this show today guys, Great Menu lined up. First up, Duke Energy Files, IRP, Propane Gas, Nuclear and Renewables Permitting. Stu will cover what’s going on there with Duke Energy and in South Carolina. [00:00:59][16.7]

Michael Tanner: [00:00:59] Then we’re going to stay home and talk about the inflation reduction at this one is titled One Year Later Inflation Reduction Act Implementation remains a Mess, which is a complete shock to the show. And I’ll be interested about that. [00:01:12][12.6]

Stuart Turley: [00:01:12] No [00:01:12][0.0]

Michael Tanner: [00:01:17] Next up, we have an opinion piece, Wake Up America: Our Climate Policies are a Catastrophe in the making. This is a breakdown of some of the stuff of what’s going on, I’m excited to have Stu dive into this opinion piece. [00:01:28][11.2]

Michael Tanner: [00:01:29] And then finally, another opinion piece, Don’t be fooled folks China’s Investment in Renewables is not about Net Zero it is about preparing for war with the United States as always, Stu brings the fire and the doom and gloom. So we’ll be talking eventual nuclear war with China so I can’t wait for that segment. [00:01:46][17.5]

Michael Tanner: [00:01:47] Stu’s then going to kick it over to me. I’ll cover what happened in the oil and gas markets today quickly and then cover two things that I saw on the finance side. One, EQT go ahead and actually it was clear to close their Tokyo acquisition by the FTC. We’ll dive into a little bit of what that regulatory mess look like. [00:02:02][15.1]

Michael Tanner: [00:02:03] And then on the back side, we’ll cover quickly Energy Transfer, they go out and buy Crestwood Equity Partners that’s a 7.1 all equity deal gets them into a new markets, kind of break down what that looks like and then we’ll let you get on out of here and finish up your Thursday. We appreciate you guys sticking with us through on this long week. [00:02:19][16.0]

Michael Tanner: [00:02:19] Before we dive into all of that, guys, all of the Stories you’re about to hear, all the Analysis you just you are about to hear is Courtesy of the World’s Greatest Website www.EnergyNewsBeat.com. You can head out the description below, see the links to all of the articles it’s really the best place for all of your Energy News. [00:02:35][15.6]

Michael Tanner: [00:02:35] You can check us out at Dashboard.EnergyNewsBeat.com it’s our latest data product kind of doing a little data news combo in an effort to kind of streamline that. So check that out Dashboard.EnergyNewsBeat.com team’s hard at work at V2. Also check us out Questions@EnergyNewsBeat.com to get in contact with the show you can find Stu and I on LinkedIn. Packed shows Stu, Where do you want to begin? [00:02:57][21.7]

Stuart Turley: [00:02:57] Well let’s start with my one of my favorite Energy Companies Duke energy. [00:03:00][3.2]

Michael Tanner: [00:03:02] Yes sir! [00:03:02][0.1]

Stuart Turley: [00:03:03] Love me some Duke Man they are good people. Duke Energy Files IRP Proposes Gas, Nuclear and Renewables. Where do you think I do like this one huh? They’re doing all in dude their are some stats in here that are pretty wild. [00:03:17][14.4]

Stuart Turley: [00:03:18] Let’s take a look here, Over the next 15 years, electric use by Duke Energy customers in the Carolinas is projected to surge by around 35,000 gigawatt hours, more than the annual electrician and electrical generation of Delaware, Maine and New Hampshire combined. [00:03:39][21.2]

Michael Tanner: [00:03:41] Wow!. [00:03:41][0.0]

Stuart Turley: [00:03:41] Holy smokes, Mike Callahan said. “We are preparing for this growth, extraordinary growth in energy demand by prioritizing grid responsibility energy affordability in the deployment of a diverse range of energy options”. You know how they’re doing it? Getting rid of Coal, Rolling out Natural Gas, beefing up their Nuclear and then rolling in when they can the renewables. Wow! What a Great Plan! [00:04:11][30.2]

Michael Tanner: [00:04:12] And I was I’m trying to come up with a way to not like this, but I absolutely love this. [00:04:17][4.9]

Stuart Turley: [00:04:17] I think it’s great. And the only way to get to Carbon Net Zero in have a good environment, elevate people out of poverty, is use all forms of energy and have the least amount of impact on the environment and they are doing it. [00:04:34][16.7]

Stuart Turley: [00:04:34] Let me give you some quotes here. According to the release, Duke Energy Carolinas owns 19,000 megawatts of energy capacity, supplying 2.8 million residential and industrial. As soon as you start throwing heat on this bed, you’re going to need more than the 65,000 gigawatts. Duke Energy Progress is 12,000 megawatts to 1.7 million, that’s just that’s some big numbers, man. [00:05:04][30.2]

Michael Tanner: [00:05:05] Yeah. I mean, all of these these large power companies, they’ve got their own subsidy areas that they claim own. It’s. It’s it all gets wrapped up into that big Duke umbrella. But no, again, I was trying to find something about this plan I hate. I like it even like the name Integrated Resource Plan. I mean, they’re they understand and whoever wrote this, the folks over at Duke, they’re smart. They understand that a mix of the three allows for each of the negatives to be offset by positives of the other. [00:05:31][26.7]

Stuart Turley: [00:05:32] You know, I’m over here going all energy and here’s Duke Energy, and you’ve heard me say a lot, I love me some. Duke. [00:05:39][7.5]

Michael Tanner: [00:05:41] What’s next? [00:05:41][0.4]

Stuart Turley: [00:05:42] Let’s go to the next one. This is one my Favorite Administration I’ve ever had. And One year later, in the Inflation Reduction Act, Implementation remains a mess. You see Biden, I’m just going to sidetrack here for a second. Did you see Biden last week when he said maybe we shouldn’t call it the Inflation Reduction Act because it’s not going to do it. He actually said it you got to love that. I mean,. [00:06:08][26.4]

Michael Tanner: [00:06:09] I did not see that but… [00:06:09][0.3]

Stuart Turley: [00:06:10] He had a momentary lapse of sanity. Today marks the One Year Anniversary of Signing the Inflation, the IRA and the law, the law was never about reducing inflation. The IRA is a quintessential example of the Democrats vision, and it is basically the Green New Deal hidden in wolves cloak, Let’s take through some of this stuff. [00:06:37][27.2]

Michael Tanner: [00:06:38] This is by Economist James Bruegel, and his his title is I Am an Economist focus on Economics of Regulation. Well, have fun without this one, dude. [00:06:47][8.9]

Stuart Turley: [00:06:47] Oh, yeah he’s he’s worse than a CPA or an Accountant. I mean, this guy’s got to be fun at a party just to avoid. Based on an initial estimate at 260 billion in energy tax credits for renewables like wind, solar or hydro, 80 billion for consumer rebates for purchasing electric vehicles. Hold that thought I’m coming back to in a sec. [00:07:09][21.3]

Stuart Turley: [00:07:10] Installing rooftop solar panels and adding more efficient home features. The IRA amends a tax credit up to 7,500 for purchasing electric vehicles and extended another up to 30% off the cost of solar. [00:07:25][14.8]

Stuart Turley: [00:07:25] Let’s talk about this for just a second, out of all of the $1.3 trillion in the Porkulus bill that I loved in my genome for saying it in the Porkulus bill. Okay. The $7,500 tax credit is very not used by very many American cars. You got to like you’ve got to be a really good rocket scientist to get that payment. [00:07:56][30.3]

Stuart Turley: [00:07:56] Now, here’s the other side of that coin, South Korea yester yesterday or the day before they announced they have found a way around the U.S. policies on this. So they’re going to be selling under the Inflation Reduction Act. Our own folks can’t, South Korea is going to be muscling our money. So this one kind of just gets me. [00:08:18][21.3]

Michael Tanner: [00:08:18] Did you see they had to bring John Podesta back for this? They had to recycle that guy from the grave. Who is John Podesta? John Podesta is the guy that got caught in the WikiLeaks phishing scam who ended up giving up all of the documents to WikiLeaks. [00:08:33][15.6]

Michael Tanner: [00:08:34] Remember, how did WikiLeaks get those documents? Somebody hacked Hillary Clinton’s emails. Well, what did they actually do? As it turns out, this person got access to the emails through John Podesta’s email, which he subscribed through a phishing scam. So actually, we love the dude. [00:08:49][15.3]

Stuart Turley: [00:08:50] Oh, yeah. [00:08:50][0.2]

Michael Tanner: [00:08:51] Prevented a crisis in 2016. [00:08:52][1.2]

Stuart Turley: [00:08:54] Already this later in the Article it says Already parts of the IRA are backfiring, which could further erode support countries like South Korea. I just told you that. In there the IRA massive industrial policy cronyism is masquerading as climate and inflation policy. You know what’s missing? They only had 38 million. I mean, it was some ungodly little number for the grid. Oh, oh, I just got airsick when I was reading that part of it. [00:09:27][33.1]

Michael Tanner: [00:09:27] Well, let’s let’s bring you back down to Earth, We got to come back to America were gonna stay here in America. [00:09:31][4.4]

Stuart Turley: [00:09:32] I’m going to ask our Producer here to do me a favor on this one. Wake up, America our Climate Policies are Catastrophic in the making. Uh, Mr. Disher, could you bring this picture in and fly it in? And I want to ask you, Michael, for our Podcast listener, we have President Biden wearing a hat, his Ray-Ban, you know, is pilot Raymond Newsom, and he’s got a shiny suit on his suit. [00:10:01][28.9]

Michael Tanner: [00:10:01] It literally looks like Biden Jr. [00:10:03][1.3]

Stuart Turley: [00:10:03] It does! Hunter! But what else does it look like? They’re sitting on a bench they’re looking at the banks is historic climate action, and it’s in an open farm field. Go figure this one out. I think it looks like Forrest Gump sitting on a on a bench and he had the forest gump and his younger brother Bo, and they’re sitting here I’m waiting for the the feather to come flying in. You know, this is what is going on, on steroids, all right. Let’s go back to this story. [00:10:33][29.9]

Stuart Turley: [00:10:34] The Senate hearing let’s say one of the United States is currently responsible for only 13% of the carbon emissions. And we cannot control what China, India and other countries do. It will cost an estimated $50 trillion to decarbonize the U.S. by 2050. [00:10:55][21.5]

Michael Tanner: [00:10:56] We always say do what’s a couple trillion before even friends. [00:10:59][2.8]

Stuart Turley: [00:11:00] Three years. Michael, you and I were talking what, a couple billion between friends. Holy smokes. It only took three years of printing money to now go. What’s a few trillion? [00:11:10][10.0]

Michael Tanner: [00:11:11] Three. Well, really since since 2008 but yes, you’re right. [00:11:14][3.2]

Stuart Turley: [00:11:16] You know. Okay. The grand illusion here, the first that electric vehicles will save the planet. Now flush it down the toilet. 650 million of stockholder money, 6.5 billion of government grants and 45,000 of subsidies for every bus it sold. [00:11:35][19.4]

Stuart Turley: [00:11:42] A part, an electric bus merged company and an electric bus company just go bankrupt. So when Vice President Kamala goes in, the wheels on the bus, go. [00:11:54][12.4]

Michael Tanner: [00:11:54] Round and round. [00:11:55][0.9]

Stuart Turley: [00:11:56] I like my bus, I like an electric bus well, they’re now bankrupt and they’re they’re going away. So anyway, okay, let’s just go to the other one. [00:12:03][6.9]

Michael Tanner: [00:12:03] The give the eventual bankruptcy let’s talk about China. [00:12:05][2.0]

Stuart Turley: [00:12:06] Okay, We’re going on here. China, Don’t be fooled by China’s Investment in the Renewables is not about Net Zero it’s about preparing for war with the United States. This article will pucker up. Okay. There was a pucker factor. Yeah. Yeah, their is about a 90% you’re going to get puckered. [00:12:28][21.4]

Stuart Turley: [00:12:28] The first half of this article I’m not going to cover very much, although the author does a great job talking about Russia, Germany in World War Two. Ukraine was a big deal in there and not much changed between then and now. The same people are hating everybody except all the German Nazis moved to Ukraine have you seen all that? We’ll just leave that along moving right along here. So let’s go down here to sure it’s like a six or seven paragraph. [00:13:01][32.1]

Michael Tanner: [00:13:01] I see it here. [00:13:02][0.6]

Stuart Turley: [00:13:03] Its installing so much wind and solar that it could power the entirety of the UK grid. So it’s true that every third car in China is EV. Here’s the Gotcha. They’re requiring so much energy just to keep the peasants I mean, the citizens are into power that everything that they can bring in on renewable energy is actually additional power that’s needed. [00:13:30][27.7]

Stuart Turley: [00:13:31] They’re not retiring any Coal Plants they’re still building two Coal Plants a week. I’m serious. This they’re bringing them online larger than the rest of the world combined seems to be a common metric when you’re talking about China’s energy. [00:13:47][15.8]

Stuart Turley: [00:13:48] Well, let’s come in here. They are using their manufacturing they’re telling manufacturing to build solar and wind, and they’re taking the profits to that. They’re selling it to the rest of the world. The rest of the world is printing money so that we can give it to China. And then they’re going to take all this. I mean, this is like, you know, Michael and I are over here doing some Scooby Doo movie. [00:14:14][26.3]

Michael Tanner: [00:14:15] But you’re going left, right, left, right but no, it’s a big circle to where they’re amid. They’re not cutting their machines they’re just doubling down on it. [00:14:23][8.1]

Stuart Turley: [00:14:23] They’re tripling down. Because by the time the fourth order of magnitude of emissions, food order or we’re going to eighth order so, I mean, this is like ridiculous. Policymakers in the West should not believe their own propaganda and realize that outside of Brussels and Washington bubble, climate change is an efficient propaganda tool for the Chinese, but not the main motivation of their energy policy. [00:14:54][30.4]

Stuart Turley: [00:14:55] I talked about this earlier in the week. President Xi stood up and go, No Climate Change for China because he says it’s not efficient. He backed out of the Paris accord and Trump backed out of the Paris Accord in the reason Trump did. He loves it. He loves the environment. But he backed out because he said nobody else is paying for it. [00:15:17][21.7]

Stuart Turley: [00:15:17] He says, I’ll come back in when they’re paid for President XI he doesn’t care. He is like the soup Nazi. He is in no soup for you out of the same job. He is actually the renewable Nazi. Oh, no, no renewable for China. [00:15:33][15.6]

Michael Tanner: [00:15:33] Well, he knows. He knows the economics work when you’re selling it, not using it. I mean, it simply comes down to it. He understands the economics of renewables thats some scary stuff, though. [00:15:43][9.8]

Stuart Turley: [00:15:44] It was a fun show tonight. [00:15:45][0.8]

Michael Tanner: [00:15:46] It was well quick to cover oil and gas, the finance side of things, guys. Markets were down about 75 basis points or 70 three quarters of a percentage point excuse me, 4404. Natural oil did tumble. We open the day somewhere around 81, $82 sitting, 72 hour, 79, 22 Excuse me. [00:16:07][21.1]

Michael Tanner: [00:16:07] Main reason for that is just as we talk about China, there is a growing concern that China is entering and the part of what’s still left out of his analysis of what’s going on in China, the fact that there could be a large Economic Recession. [00:16:20][13.0]

Michael Tanner: [00:16:21] There has been rumors leaked today part of the reason why our stock market was down and the Nasdaq was down even more about a percentage point was the fact that it was leaked today that China has been going around to its largest investor, its largest hedge fund, and telling them not to sell expecting that a market sell off could ensue very shortly. So we are integrated with China more than we can imagine and what goes on there affects us here that is affecting oil, It’s affecting the overall markets. [00:16:45][24.3]

Michael Tanner: [00:16:46] Natural gas, we saw $2 and 60 says even as it trades right now, there’s two interesting deals that happened today. First, on EQT, I wouldn’t say this is a deal, but we heard from the FTC that EQT can officially close its trans acquisition of Tug Hill and Xcel Midstream. This was under review by the FCT, mainly to make sure that they agreed with the Hart-scott-rodino Act of 1976, which basically sets and applies to how much monopoly power certain areas can have. [00:17:14][28.5]

Michael Tanner: [00:17:15] EQT with this acquisition was was attempting to, you know, slip by this. It’s going to be difficult to see how they can get more acquisitions if they’re already at this level, which I didn’t think was necessarily a a outright blatant disregard for the Hard Scott Act, which is which is normally called, you know, it’s close, but it’s nowhere near some of the stuff that, you know, the U.S. is using right now or the FCC is trying to go after Microsoft in its purchase of Activision things. [00:17:44][28.4]

Stuart Turley: [00:17:44] And I thought that that act actually in this deal was being held up so that Pelosi could invest in this and then make the Pelosi dollar. [00:17:52][8.3]

Michael Tanner: [00:17:53] It was So this that’s exactly what it is the Hardin Scott Rudindo Pelosi Act of 2022, where you hold it in regulatory capture for a while. So you can you can put your longs on it. To give you guys an idea, guys, Tug Hill and Excel Midstream, those are quantum energy partners so a little, little pee making some money. [00:18:09][16.0]

Michael Tanner: [00:18:10] We also saw a midstream deal. Energy transfer goes out and swipes up Crestwood Equity Partners for 7.1 billion all equity deal though so fairly interesting I’m paid a little bit more of a premium for that to give you an idea, this gives energy transfer access or gives it more extended coverage in both Montana and North Dakota there in that Wils Basin. Also they’ve got some West Texas and New Mexico stuff they’re in Permian Basin they also get access to their first time in Wyoming, Powder River Basin. [00:18:36][26.6]

Michael Tanner: [00:18:37] You know, to give you guys an idea, they have about 2 billion feet of gathering capacity per day in about 340,000 barrels of crude oil passing both stocks are trading up two and 5% for Energy Transfer and Crestwood. So not necessary the deal I think we were expecting to see made, but an M&A deal nonetheless. [00:18:53][16.5]

Michael Tanner: [00:18:54] I think it’ll be very interesting to see what happens there they go ahead and assume the 3.3 billion of debt are rolled over from Crestwood. To give you an idea what’s going on, about 6% of the Energy Transfer, when it’s all said and done. Alright Stu you know, we you know Friday you’re going to hear one of our long, who we got coming out on Friday for the Podcast? [00:19:13][18.7]

Stuart Turley: [00:19:14] We had Ronald Stein and it’s a heck of a book. I really enjoy all my gas but Clean Energy releasing Friday. It is a van tastic book the guy knows what he’s talking about. Also next week in the week after BRICS meeting. So there’s going to be some more information coming down on BRICS but we we’ve been on the front edge of that but it sounded like panic on with that. [00:19:44][29.8]

Michael Tanner: [00:19:44] Now it’s it’s it just makes me squeal. So with that, guys, we’re going to let you get out of here, get back to work, finish up your Thursday we preach, you guys sticking with us. Take a look for Ronald Stein on the Podcast on Friday and then our Weekly Recap will be on Saturday and we will see you guys back here on Monday. So have a Great Weekend Guys! [00:19:44][0.0]

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