Daily Energy Standup Episode #214 – Weekly Recap: Energy News Recap: Lawsuits, Recession Warnings, and Electric Tanks

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California sues oil giants alleging ‘climate risks deception’: Report

September 17, 2023 Allen Santos

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

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Micahel Tanner: [00:00:15] What is going on. Everybody, welcome into a special edition of the Daily Energy News Beat Standard weekly recap here on this gorgeous Saturday, September 23rd, 2023. As always, I’m your humble correspondent, Michael Tanner, coming to you from an undisclosed location here in Dallas, Texas. As always, joined by executive producer of the show, the purveyor of the show and the director and publisher of the world’s greatest website, Energy News dot com, Stuart Turley, my man, how are we doing today? [00:00:38][23.6]

Stuart Turley: [00:00:39] It’s a beautiful day in a neighborhood and we had an absolute blast this week with everything. [00:00:44][5.0]

Micahel Tanner: [00:00:45] Michael I mean, it was a big week. Nothing like you going to make fun of the EIA. You get a dig and a little bit of drone power you to talk about electric battery tanks and you know, a couple of shots at BP CEO Bernard Looney can’t hurt. What what was the biggest thing you saw this week? [00:01:00][15.2]

Stuart Turley: [00:01:00] Well, I’ll tell you what, getting to see whether or not Jerome Powell actually knew what he was talking about when he actually sits back and says the American lower in income folks are doing just fine by putting all of their bills on their credit card at 26%, he thinks that’s okay. [00:01:21][20.5]

Micahel Tanner: [00:01:22] Load them up, baby. Load them on. [00:01:23][1.4]

Stuart Turley: [00:01:24] Small talk. [00:01:24][0.7]

Micahel Tanner: [00:01:24] Credit card bills after this. [00:01:26][1.1]

Stuart Turley: [00:01:26] Oh, yeah. We’re going to have our own energy news beat credit card. [00:01:30][3.7]

Micahel Tanner: [00:01:30] Yes, Yes. Where I see owing the thing initial coin offering. So you get EMV coins, you send us dollars. It’s it’s it’s a it’s a sweet thing. But we have a great show lined up for you guys. All of our top stories of the week. We appreciate you checking it out. We will be back on Monday to bring you the top stories from over the weekend and get you prepped for the week. But until then, guys, we’ll see you. I’m give it up to the weekly recap. [00:01:52][22.1]

Stuart Turley: [00:01:54] California Sues Oil Giants Alleging Climate Risks Deception. This is about as dumb as it gets. Let me come on down here. And the deception is just horrible. Rob Bonta, the California attorney, Michael, filed this and he filed it against We’re talking a who’s who of the oil companies targeted Exxon Mobil, Shell, BP, Conoco Phillips and Chevron. And it’s because of the deceptions that our oil and gas are hiding, the fact of how bad fossil fuels are. Let’s get a quote from him. Oil and gas company executives have known for decades that reliance on fossil fuels would cause these catastrophic results, but they suppressed that information from the public and policymakers by actively pushing out the disinformation on the topic. Read the 135 page complaint list. It caused a delay to global warming response. Michael I’m going to call who ha this. This is not only hoo ha. I would swear if this wasn’t a family show, this is about as kind of like an O graduate, if you would. Oh. Have you seen that meme where that little girl is crying or. It’s actually a short little girl’s crying, and she goes, Call me a Democrat. [00:03:23][89.8]

Micahel Tanner: [00:03:25] Okay, I’ve seen that. That’s funny. Okay. Well, what I think is interesting is this. So this lawsuit is, you know, as Stu mentions, alleging that they’ve, quote, downplayed the risk posed by fossil fuels. Who are those companies target? Exxon, Shell, BP, Conoco Phillips, Chevron. What I find interesting is that BP, for all of the green push that they’ve done and we talked about it ad nauseum last week with the news of their CEO stepping down due to some UN pronounced relationships. But what was the goal when he took over in 2016? They shift. They were going to become beyond petroleum. They were going to move and really push that renewables word. And guess what? For all that hard work, for all that investment, guess what? When it comes to being looped into what really is just a vanity lawsuit like this is just to get headlines. This is just for the press. They still get looped into it. Imagine being an investor relations at BP. You got to think, what more can we do with you outside of abandoning oil and gas altogether? There’s nothing you can do. So take no, if you’re an oil and gas company, you can do everything right. You can placate the ESG people. And guess what? When it comes down, they’re still going to loop you in with everybody else because it’s not a serious discussion. That’s what I took out of this. [00:04:33][68.5]

Stuart Turley: [00:04:33] Oh, absolutely. And what we’re seeing is like the climate scientist that just admitted that he fraudulently did everything, you know, to get his report. So there’s fraud on both parts. I disagree with this 100% just for the same. [00:04:50][16.6]

Micahel Tanner: [00:04:50] Laugher do and I disagree with this one. I know everyone was waiting on hands and knees, wondering where do they come down on this climate lawsuit. [00:04:58][8.0]

Stuart Turley: [00:04:59] Yeah, I’ll tell you what, I need to get my defibrillator out because, you know, I’m shocking myself here. All right. Legislature Approves plan allowing California to buy power paid with more. Surge charges to consumers. Michael, just as a tip on what this is, Governor Newsom, the pretty boy of politics, he is setting it up for permission to buy massive amounts of electricity to avoid blackouts. And, Michael, it’s going to be from neighboring states. Are you ready by natural gas and coal? I mean, we’re we’re talking things that they have been trying to avoid. But because they have gone, as John would say, greener, they have just totally gone into the solar and wind. Highest energy cost in the U.S. Five companies, roughly, Michael, they paid $750 million to lease areas off the California coast. Here’s what the problem is. Those projects could generate enough electricity for 3.5 million homes. They can’t get them connected. Oops. [00:06:12][73.0]

Micahel Tanner: [00:06:13] Five $750 million just to lease land. I mean. Right. And you think oil and gas leasing is expensive when you hear words like 10,000 an acre, 20,000 acre and things go crazy. I want to know what the per acre cost of that is, that this could go down $750 million just to lease land. Is this not just a government scheme to grab money going like, oh, we’re just going to auction off all this leases that we know no one’s going to actually build on because it’s once they actually do the math, right. Who who’s underwriting these deals. I’d love to see that financial model. [00:06:49][36.8]

Stuart Turley: [00:06:50] We’re going to talk about that and some of the next stories here. This one kind of gets me all worked up. When you sit back and say California has moved quickly to end its reliance on fossil fuels. In recent years, state regulatory have banned the sale of most new gas powered cars in 2035. But the states struggle. They’re still using 70% of the oil drilled in their rainforest, drilled by China. They’re destroying the rainforest and they are. Energy hypocrisy is alive and well. All right. [00:07:28][38.3]

Micahel Tanner: [00:07:28] Yeah, It’s I mean, what do you expect from California? [00:07:31][2.9]

Stuart Turley: [00:07:32] Oh, yeah. I’ll tell you, I like my haircut better. Newsom’s It’s faster in the shower. For our podcast listeners, I got a flesh colored hair line. All right, here’s ten red flags. A warning for a looming recession. This one is very interesting. It came from the messenger by Al Lewis. Very uncertain economic outlook. Let’s see. The outlook remains highly uncertain, said the folks at the Conference Board. The index is based off of ten components, ranging on ranging from stock prices and interest rates to unemployment claims and consumer expectations for business conditions. So let’s come down and do here. Consumers are not buying big ticket purchases. I guess Biden Economics is working here, so you got to love that one. We saw some switch even to some canned products like canned chicken and canned tuna and things like that, Costco’s chief financial officer, Richard Galani, told analysts on a may conference call. That’s huge in itself, right? They’re going to canned food instead of eating chicken because of the pricing Regarding banks outlook for the second half of 2023, banks reported expecting further tightening of standards of all loan categories. How does that impact that impacts the car loans so that the car dealers are in trouble? We already know the EVs are in trouble and there’s really piling up on the loans, the housing industry with the higher rates. They’re having some serious problems moving houses. And then you have commercial real estate because of the people leaving the blue cities and blue states. I believe New York City is around that 45% to 50% commercial vacant. So you have some harder things coming around the corner. Goldman Sachs says that 1.8 trillion in corporate debt is coming due over the next two years and will have to be refinanced at higher interest rates. Holy smokes. Recessions occur as debt levels peak and borrowers begin to default. Guys, these are some serious problems coming around the corner. Here’s another one. This is the I am manufacturing purchasing manufacturers index orders are. Are in fact falling faster than factories are cutting output. The other side effect of all this is we have a world global slowing economic forecast because of energy. The number one problem is energy and printing money. We cannot print money to pay for renewables that won’t pay for the technology in order to get. Robert Bryce says it best when he talks about the energy density. Go follow Robert Bryce by all of his books. He is an outstanding source for information. Inflation is sticky and the Fed isn’t done. Here’s the last one that I’m going to deal on this one. The only way and I have been trolled on this a lot, the only way that I feel that we are going to get inflation under control is reduce the energy cost to consumers, reduce the interest rate so that business can afford capital and they can start reinvesting into it. Get rid of the horrific regulations that are now the legislation through regulations is going on right now. And I didn’t vote for all these regulations coming through. And it is starting to really hurt all US citizens. So the only way out. Lower energy costs and go through these other steps. You don’t do that. You cannot do the any of these other steps without lowering energy costs. And it won’t happen. So, you know, buckle up. We are in for some interesting times here. David Blackmon. Monday’s energy absurdity is the day Ford CEO prioritizes transition over employee demands amid the UAW strike. Michael, I got tickled at this one. I love David Blackmon, but I want to ask you something. The Ford CEO. His name is Jim Farley. Do you think that he ever did an imitation at a Christmas party of the Chris Farley of the consultant in a van down by the river? Could you imagine the CEO of Ford going, I can bet you live in a van down by the river. I would pay money for that one. Okay. Let’s jump on to this story here. [00:12:37][304.9]

Micahel Tanner: [00:12:37] What he looked like on CNN last. [00:12:39][1.3]

Stuart Turley: [00:12:39] Week, It’s about that’s exactly where it’s going. Okay. Here we are in an interview with CNN’s Jake TAPPER. Last week, Farley left no room for doubt that his company’s pursuit of government subsidies for the ongoing EV transition far outweighs any real concerns about the company’s employees. Okay. Here’s the thing Biden now makes, which we’ll cover here in a second. Biden’s EV rebates have caused so many people heartburn. They have a new hotline for help, one 800. I don’t understand biden’s ev policies. And let’s go here. Several weeks ago, Ford plans to lose 4.5 billion on its TV unit in 2023. Michael. That’s sustainable. [00:13:30][50.9]

Micahel Tanner: [00:13:31] They’re losing $67,000 per car sold in the EV unit. [00:13:36][5.2]

Stuart Turley: [00:13:37] And he says while the company wasn’t opposed to wage increases, that double digit range going to 40% would put the company out of business. And he would not cut Ford’s push for EVs, even though the company is expecting to lose 4.5 billion this year alone. Here’s a quote from him. There is a fine line that we won’t go past, which is we want everyone to participate in our success, Farley said. But if it prevents us from investing in this transition to EVs and future products like the one we have now, the new Ford F-150, best selling vehicle in the world, in the U.S., then everybody’s job is at risk if we don’t invest. [00:14:19][42.2]

Micahel Tanner: [00:14:20] And remember, this is important because the United Auto Workers Association is striking right now. The big three, GM, Ford, and the last is whichever one that owns Jeep and Chrysler, they’re all they’re all striking right now. They won 40% wages at first. That sounds outrageous. It’s probably way too high. I mean, not do I? It’s probably a little high, but you have to take into account that’s over a four year business plan or a four year span. That’s not that’s including inflation’s if you include the inflation that we’re dealing with right now, it’s really like a 10 to 15% raise. But the fact of the matter is Ford is giving them eight is is has laid out a ten or like a 20 22% raise on the fact that they’re losing four and a half billion on EVs. So I love David Bachmann’s point here. They’re willing to. Pour money at a losing proposition in order to line their pockets, which is a quote that I’m about to read here, line their pockets with government subsidies while the workers eat it in the shorts. This is exactly how the frame of it is going, isn’t it, Sean? Then he wrote, This is an op ed. He’s the president of the UAW. He says, quote, We will not let the EV industry be built on the backs of workers making poverty wages while CEOs line their pockets with government subsidies. I can get behind that one, Stu. [00:15:39][79.0]

Stuart Turley: [00:15:39] I can’t, too. I’ll tell you, the the whole thing about this is I want the union workers to build a Ford F-150 van for Farley so that he can go down there and say, I live in a van down by the river and have him try to negotiate there. I just find it appalling. We’re here now because we should go to hybrids rather than EVs until the technology is there. You’re not going to go there. Biden’s policies have put us in this situation. In fact, today, Michael, the unions asked Biden not to help out and negotiate this deal. [00:16:21][41.5]

Micahel Tanner: [00:16:23] Can you blame. [00:16:24][0.3]

Stuart Turley: [00:16:24] Them? No, I don’t want Biden to help. I hope Biden retires early. [00:16:29][4.8]

Micahel Tanner: [00:16:29] I wouldn’t want Biden’s help making a peanut butter and jelly sandwich. [00:16:32][2.9]

Stuart Turley: [00:16:33] No, I. I would want nothing. All right. Rishi Sunak, he’s the prime minister over in the UK announces U-turn on key green targets. Michael, can you hear this? I’ve got this. POW, pow, pow, pow. The green heads blowing up, and all these. These heads are just exploding. Okay. He announced a major U-turn in the government’s climate commitments as he promised to put his party on a more radical path in an attempt to close the gap with Labor before the general election. What he’s doing is several key moves. And let’s get down into the meat here. He says, I’ve got an opportunity to change things and what I don’t want to do is make another short term decision, easy ways out, and ultimately not be straight with the country. What those mean for them, if we continued just to hear more, if we continue down this path, we risk losing the consent of the British people. The resulting backlash would not just be against specific policies, but the wider mission itself, meaning we might never achieve our goal. I’ve got to hand it to it. He is going in and one of the biggest things that he’s doing is way down in the bottom of the article. He’s also rolling back the sale of ice cars or internal combustion engine cars so that it’s going to add another, I believe it was three or four years on it. And so he’s trying to extend that out. The average person cannot afford the EVs with. Yeah, I mean, we talked about that yesterday with the strikes going on in the U.S. this is really going to change things. And when you sit back, the last thing in here, prices in the U.K. for energy. Michael, when somebody is actually having to pay their electric bill or E. That’s where they are right now in the U.K.. So do politicians want to get reelected or do they want to get mugged by the people? Let’s see, really? And then you’re going to see that this is part of the ESG movement that is now collapsing. And so the investors started it in saying we need our money. And then now the politicians in the U.K. are going, we can’t pay for this now. [00:19:05][151.8]

Micahel Tanner: [00:19:05] Because, I mean, amongst all of these rollouts, the one that has everybody up in arms is the sale of EVs or the phasing out of petrol diesel vehicles, as they call it, in the U.K., in the U.K. from 2013 to 2035. So that’s it’s really only five years. I mean, people are heads are exploding over really just a five year rollback. That’s what I think’s the craziest part about this. Everyone’s freaking out. Didn’t really do anything other than say, hey, we’re going to give ourselves more time to achieve this goal, to allow us to actually realistically hit it. I mean, again, I would have gone for hopefully gone to going farther. You know, you got to remember, this came after a pretty crazy 24 hours. You have to remember he was going to announce this in a planned speech, but it was leaked to the press. So he had to basically announce this 48 hours sooner than he would like to, because cab in the U.K., the way their government works, the cabinet still needs to sign off on this. [00:19:59][53.9]

Stuart Turley: [00:20:00] Right. Well, this is just like New York City when you and I and New York when you and I were talking yesterday, all those in favor. Let’s go ahead and cut all petroleum products. In oil and gas out of New York. All those in favor, okay? Yeah, we’re in cut off. And it’s the same thing with the U.K.. It’s now done no better anyway. It’s the same thing with the U.K. This is almost like Brexit in that they are now admitting that they have a problem. And if you want to go ahead and get there, they need natural gas, they need less renewables, and they need to keep their cars because they can’t afford the batteries that. [00:20:38][38.8]

Micahel Tanner: [00:20:39] Absolutely electric batteries on tanks. Got to love it. [00:20:42][3.9]

Stuart Turley: [00:20:43] Oh, U.S. Army electric tanks on hold as battery technology develops. You can’t buy this kind of entertainment. And, you know, do you remember, what, four months ago or so we had that maybe even five months ago we had the solar panels going on the eve. I mean, on the tanks, there’s some technology and physics involved in this. Let’s go through this here in a sec. Army needs 20 fold increase in battery charging. Let me give you some numbers here. There are no EVs deployed in the battlefield because right now, Michael, if you park in a electric bike into your apartment, they blow it up. I mean, like Larry the Cable Guy would go. That just blowed up the whole apartment. I mean, you hit a shell or a 22 round at a tank. It will blow up. All right. Let’s go in here. And it says the technology challenges mean not a single all electric fighting vehicle is currently deployed in the field. Really? [00:21:48][65.2]

Micahel Tanner: [00:21:49] But don’t worry. The Defense Department is hoping intense interest in scaling up batteries for consumer utilities will lead to break. No clash Probably won’t. [00:21:57][8.2]

Stuart Turley: [00:21:58] No. Okay. To charge of 50 ton tracked combat vehicle inside the Army’s preferred envelope of 15 minutes, soldiers would need a 17 megawatt charging station more than 20 times bigger than the largest mobile generator the Army currently has. You know how much diesel you got to hold on the front line to charge these tanks? [00:22:25][27.1]

Micahel Tanner: [00:22:26] Yeah. [00:22:26][0.0]

Stuart Turley: [00:22:28] I just. Okay. Which came first? You bring the charging thing and then you bring all the tankers to charge it. And then they said, Oh, this is safer for the men because they won’t have to deal with the fuel, the very volatile fuel. Hogwash. There aren’t. I mean. [00:22:49][21.1]

Micahel Tanner: [00:22:50] Here’s my thing. If you could actually come up with a battery that’s stored more in theory, this Army lieutenant governor, this general, General Ross Kaufman, who says this, he uses the phrase ideally, and I agree with him. Ideally, you would be able to go all electric because of the benefit. The problem is we don’t live in an ideal world. We live in a world and we live in reality. And unfortunately, reality and physics still mean something. [00:23:16][25.3]

Stuart Turley: [00:23:16] Oh, yeah. And now when you sit back and take a look, we have to be mindful of equipping, equipping our sons and daughters of this nation with something that’s going to be reliable and useful in the battlefield. All right. Leave that one alone. [00:23:30][14.2]

Micahel Tanner: [00:23:31] I know what’s going to be useful in the battlefield. Not batteries, No wood. [00:23:36][4.9]

Stuart Turley: [00:23:36] Okay, Michael, when you’ve got a 50 ton tank and you add 48 tons of battery to make that 50 ton tank work, you got a 90 ton piece of crap driving around. You think it’s going to get through the mud in a Russian snow pick? [00:23:53][17.3]

Micahel Tanner: [00:23:54] No end up in some battery graveyard in the middle of Africa. [00:23:57][3.1]

Stuart Turley: [00:23:58] Oh, yeah. And the kids are going to get to mine it. It’s going to, you know, kill all the elephants. Oh, yeah. It’s horrible. [00:24:04][5.6]

Micahel Tanner: [00:24:04] Hey, now it’s going to move from saving the whales to saving the elephants. I think you’ve identified the next round for PETA. Save the elephants, folks. [00:24:13][8.6]

Stuart Turley: [00:24:14] They call me the People’s Man, the purple poster. [00:24:19][5.0]

Micahel Tanner: [00:24:19] We appreciate. [00:24:19][0.0][1414.3]

 

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