Daily Energy Standup Episode #272 – EV Subsidies, Shale CEO’s Green Transition, and Global Energy Dynamics

Daily Standup Top Stories

Germany Ends Electric Vehicle Subsidies Abruptly In Latest Blow To Tesla

December 17, 2023 Stu Turley

Highlights of the Podcast

00:00 – Intro
03:08 – Germany Ends Electric Vehicle Subsidies Abruptly In Latest Blow To Tesla
04:31 – EU’s green funds are under the guillotine
06:28 – A Shale Oil CEO’s Second Act: Going Green
09:37 – Natural gas expansion project to add more reliable energy to Texas grid
11:25 – The US isn’t the only one eating into OPEC’s market share — Brazil and Guyana are hitting record oil production volumes
14:40 – US electricity load growth forecast jumps 81% led by data centers, industry: Grid Strategies
14:59 – Rising peak demand, 83 GW of planned retirements create blackout risks for most of US: NERC
17:06 – Markets Update
18:37 – Outro

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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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Michael Tanner: [00:00:14] What is going on, everybody? Welcome to another edition of the Daily Energy News Beat Standup here on this gorgeous Monday, December 18th, 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 that prepared the show and the director and publisher of the world’s greatest website, Energy News Beat.com, Stuart Turley, my man, how are we doing? [00:00:37][22.5]

Stuart Turley: [00:00:37] It is a beautiful day in the neighborhood here in Dallas, Texas. [00:00:40][2.8]

Michael Tanner: [00:00:41] Absolutely. It’s it’s a gorgeous day outside. And we have an absolutely packed show today. First up on the menu, Germany ends electric vehicle subsidies abruptly. In latest blow to Tesla, Elon Musk must not be happy. I wonder if you’d be tweeting about it. Next up, EU Green funds are under the guillotine. Oh, interesting. Another good play on words. Next up, a shale CEO’s second act going green. Great story. Next up, natural gas expansion project to add reliable energy to the Texas grid. Good for Texas. Next up, the US isn’t the only one eating into OPEC’s market share. Brazil and Guyana are hitting record oil production volumes. Next up, the U.S. electricity load growth forecast jumps 81% led by data centers, according to grid strategies. Absolutely insane. And then finally, rising peak demand of 83 gigawatts. Planned retirements create blackout risks for most of the U.S. according to NERC dun dun dun. We know the grid sucks, so. A packed show today. Steal your cup, you kick it over to me. I’ll quickly cover oil prices on Friday and we had rig counts drop so I’ll cover that and we’ll let you guys get out of here and start your week before we do all that. Guys, remember the news and analysis analysis, maybe I should say with quotes, but the news and analysis you’re about to hear is all brought to you by the world’s greatest website. www.EnergyNewsBeat.com The best place for all of your energy news you in the team do an outstanding job of staying on top of everything that you need to know and keeping the website up to speed with everything you know to stay at the tip of the spear. When it comes to the energy business, you can hit the description below to see all the show notes, links to the articles, Time stamps. Again, the team does a outstanding job making sure that’s maintained and up and running. You can follow us Apple Podcasts, Spotify. Check us out on YouTube. Same in YouTube. You can have all the links to the descriptions and the articles there. You can email the show questions@EnergyNewsBeat.com You can check out our new news product dashboard.energynewsbeat.com You could sign up for our newsletter via the description below that goes out every Tuesday. Kind of a breakdown of some of the top articles. Trust me, we’re going to bomb you every day. You can also subscribe to our substack that’s available on energy news beat. com as well, where you’re going to get something a little bit more day. But our our newsletter that we send out is actually only goes out on Tuesday so a little bit different than our Substack so we’re everywhere folks if you’re anything so I’m going to Bret those too. Where do you want to begin? [00:03:06][144.9]

Stuart Turley: [00:03:06] Oh hey, we’re off and running to Germany in the electric vehicle subsidies abruptly in the latest blow to Tesla. I’ll tell you, this one goes hand in hand with the US is having some serious problems with the EVs because the subsidy program is really nobody knows what’s going on there. Tesla’s BR Land Area plant reportedly will shut production after December 22nd, not open till January. The plant is move comes amid tighter restrictions on TV subsidies in France. The the limited subsidies of €7,000, which is 7600 new electric cars made in Europe. Chinese, including the Tesla, are no longer eligible. They’re playing a they’re playing a trick in Biden’s playbook. But the credit in the US, the IRA credits are scaling back as well. [00:04:06][59.8]

Michael Tanner: [00:04:07] It just brings to the point how vulnerable all of these electric vehicle companies are on subsidies. [00:04:12][4.6]

Stuart Turley: [00:04:12] Yes, and here’s the problem that we’re going to be tracking, and that is bail outs. Now people are saying, hey, wait a minute, you forced us to these EVs, we want our bailouts. So we’re going to track that. David was on this one. David Blackman was on it. First, EU green funds are under the guillotine. I would put my French accent on it, but it would sound more like an Okie from Muskogee. Now billions of euros are earmarked to boost renewable energy and slash emissions are on the cutting block after EU leaders propose moving them over to fund immigration and defense efforts. So I think it’s pretty funny, Michael, when you read this article, The left’s immigration and migration policy of illegal folks is actually killing the climate agenda. That was a second order of magnitude that I was sitting there going, Michael would be proud of me for putting this one together. And they’re pulling down on more green funds and they’re forcing anything. The WEF is going out to Africa or to any of the other emerging countries trying to renewable, but nobody wants those projects. We’ll turn it into some stuff. I have no clue. It’s now turning into a quote unquote renewable crisis. Here’s a quote in here. Previously, you would guesstimate that around 50% of state funds would go into climate. And now you can guesstimate that it be 0%. That money could go from five out of 10 billion to 0 at a time. It’s brutal. It’s like the guillotine. [00:05:59][106.7]

Michael Tanner: [00:06:01] And that’s straight out of the the Army’s Carlon, the director of EU Climate Investments mouth. [00:06:05][4.9]

Stuart Turley: [00:06:06] Oh, absolutely. So if you think COP 28 did not have an impact, it did. And do you think that when they stood up there and clapped and said, we got us a deal, it wasn’t a deal, it was, Holy smokes, Batman, It’s the death of the net. Zero is what it was. So shale oil. Let’s go to the next one. A shale oil CEO’s second act going green. Michael, I want to tee up our deal spotlight of oxy and crown. And the reason for that is you and I didn’t know the outcome until we went through the steps. And it fits right into this because there is a way that Saudi Arabia is funding their move to green, just like Oxy is funding. Their move to green with oil and gas are a balanced approach is the only way that you’re going to get there, not shutting everything off. So let’s go to this story, Tony Sanchez. The third was the epitome of a shale boom, CEO drilling oil wells, piling on debt and hunting quail. I love that. In his ranch in south Texas, he got caught up in the the oil crash and everything else. But what were some of the things that caught you in this article, Michael? [00:07:31][84.9]

Michael Tanner: [00:07:32] Well, one, it’s one thing that caught me is if you’re familiar with the name Tony Sanchez or I’ve heard of Sanchez energy, absolutely the epitome of the early the mid 20 tens shale boom. I mean, when and when I mean, boom. And then I also should say the bust as well, because it ended with Sanchez Energy filing for bankruptcy. So I love nothing more than a failed oil executive pivoting now through selling GRI. And whoa, So what’s his so if you read this article, do his current business oneNexus is a little bit different. This is his new business. He started I read a paragraph down here. OneNexus offers oil producers policies that pay out only when their wells are capped, ensuring that companies have money set aside. He’s now an insurance salesman. We went from he went in. He’s literally an insurance salesman now. The rates are determined by actuary models that were adapted from human life insurance calculations, and the policy is structured to survive. Even if the oil producer or one Nexis goes bankrupt. He says, This is incredible. This is a legitimate it’s the biggest grift I’ve ever seen. [00:08:40][68.6]

Stuart Turley: [00:08:41] I love it, to be honest with you. If it’s, Hey, insurance rules the world, baby. You think the deep state does not. It’s insurance companies, insurance. [00:08:50][8.9]

Michael Tanner: [00:08:50] Sooner or later, Stu, you’re going to invite me to an event where I show up and it’s going to be Tony Sanchez up there. Hey, if you sell our policies and get five people underneath you, you’re going to be able to go to my president’s retreat with me in Cabo. This has multilevel marketing. I can see it now. Stu oneNexus, I’m a oneNexus business owner. [00:09:09][18.8]

Stuart Turley: [00:09:09] Yeah. Hey, if you see him as a sponsor of the show, you’ll know it’s on the way. [00:09:14][4.8]

Michael Tanner: [00:09:15] You’ll know he sold out when one Nexis authors the show and I’m here pushing insurance policies on you that wouldn’t you know but take us off air. [00:09:23][8.3]

Stuart Turley: [00:09:24] Then we would have cradle to grave. We would not only be on the front end evaluating M&A, we’d be evaluating on the back end there. So that. [00:09:32][8.2]

Michael Tanner: [00:09:33] Being said. [00:09:33][0.3]

Stuart Turley: [00:09:34] Let’s go to the next one. Michael, before you give me a hook. Natural gas expansion to project add more reliable energy to the Texas grid. I love this one because it goes along with the the other stories along here, and that is Texas is doing something about needs. This Governor Abbott said the bottom line is Texans need more electrical power because we have a collective responsibility to make sure that we provide the power and electricity to support our growing state by adding new reliable plants like this one from Calpine. Erica Beazley. Power generators are better prepared this winter before because I signed over a dozen laws to ensure they have the tools and strategies. This is important. In 2021, 4 million homes in Texas lost power. I think ERCOT kind of got woke up a little bit in 2021 now. [00:10:30][56.5]

Michael Tanner: [00:10:31] And you know, we can’t lose sight of the fact that, yes, this is a natural gas plant, but Texas is ironically one of the best states when it comes to energy mix between renewables and using the sources that are available at the time. We have a lot of wind power. We’ve seen it that you’ve showed me stats news at some point, 33% of the power generation in Texas is wind. Why? Because it’s available and it’s it’s the right form of energy, that right moment. The problem is when things get tight, that natural gas wins the day. And so ensuring enough baseload power is critical. And again, I think it’s a great I think it’s a great move. It remains to be seen. We haven’t had a crazy storm yet since 2021. It’ll be interesting to see when the next one hits. There’s all this stuff that they do help remains to be seen. [00:11:18][47.6]

Stuart Turley: [00:11:19] Oh, it does. I want to tie this in to our oil and gas discussion here. The next article, Michael, is The U.S. isn’t the only one eating into OPEC’s market share. Brazil and Guyana are hitting oil production volumes as Governor Abbott is signing in. You know the deals that he’s doing, we’re getting more natural gas plants online. And when you sit back and take a look at not only total energy he is investing in in Texas. [00:11:49][30.5]

Michael Tanner: [00:11:51] But we we. [00:11:52][0.9]

Stuart Turley: [00:11:53] We you were doing well. What was it, Mike Myers, that you were just doing. [00:11:57][4.7]

Michael Tanner: [00:11:58] That like some old school French way. We we. [00:12:00][2.1]

Stuart Turley: [00:12:00] All know that you were talking about doing some one of them evil characters that has a cat, Mr. Evil mystery. [00:12:07][6.3]

Michael Tanner: [00:12:07] Out on cats. I’m sorry. [00:12:08][0.9]

Stuart Turley: [00:12:09] No, but Mr. Evil, Mike Myers, bald. And he said from home, I’m going to hold the world ransom for million. [00:12:16][7.1]

Michael Tanner: [00:12:17] Okay. [00:12:17][0.0]

Stuart Turley: [00:12:18] So let’s go back to this one. Brazil and Guyana, you have the pricing model around the world. We’re going to cover this in more detail in the next few weeks. OPEC has seen its market oil market share fall to 51%, the IEA said while U.S. output has soared, Brazil’s output has soared 400,000 barrels a day to 3.6 million. Now, here’s the thing. Part of that number, Michael, I’m digging around on the CIA’s number, and it’s 51%. It is the dark elite. I’m going to do my Biden real quick. Everybody on our podcast, I’m leaning into the mic. I’m losing my mind as I lean in and go, It’s the 51%. Okay, so that was my Biden. That’s about all I can pull on that knucklehead. So why don’t we sit back and take a look? The pricing model, Michael is busted and I’m working on some more stories on this because it effects Texas. So goes Texas goes the rest of the world. Anyway, I don’t know why my camera just assumed. [00:13:22][64.0]

Michael Tanner: [00:13:23] That, as you’re saying, it knows it knows that that’s exactly. [00:13:26][2.5]

Stuart Turley: [00:13:27] About as creepy as it gets. [00:13:28][1.4]

Michael Tanner: [00:13:28] I mean, it is interesting that OPEC is losing its grip and it’s kind of clear with with that over the years, OPEC has been losing its grip, if only because, look what’s happening right now. OPEC has continued to cut and signal that they are going to cut production and are going to continue to cut until they can bring Brant Oil up. And what is oil done the past three months? Tumble, tumble, tumble. I mean, can’t be too mad at $71 oil but thinking about where Saudi Arabia in back in Russia and everybody wants oil prices to be, it’s insane that they haven’t been able to achieve yet that so it’s clear that there are other sources a.k.a. Brazil and Guyana, as this article rightly points out, is the reason for that. I mean, it’s it’s it’s pretty high. It’s pretty insane. [00:14:14][45.1]

Stuart Turley: [00:14:14] It’s pretty insane. And the whole pricing paradigm, Michael, is changing. So it goes back to our great oil and gas in the US and then the war on oil. The Biden administration is done by trying to source oil through Venezuela or other countries. It’s just criminal. But anyway, let’s go on to the next two that are and the last two, they’re kind of the same theme or thread. U.S. Electricity load Grows. Forecast jumps 81% by data centers, industry grid strategies. We can’t. The part of the death in the thread of the renewables is not only from the money side, it’s from the side of the grid. Michael U.S. electrical load is growing significantly faster than grid planners ever expected. Here’s where it gets goofy. People are leaving California coming to. Texas. I wish they’d leave their voting policies there. You can see where Houston and Austin are following their voting patterns. And please, if you are moving from California to Texas, stop by in Arizona at a charging station. Lick the thing as it’s charging your car. Maybe that will stop your voting practices here and cause a la bottomley. Now that all this is for a very important reason. The flat. The era of flat powered demand is over is likely the first nationwide compilation of utility load forecasts. The low and falling rates of load growth over the last 20 years have decisively reversed a new mode. Part of the problem is the Biden administration. Michael we need all forms of energy and we now have 24,000 regulatory problems holding up a tad power sources to the grid, renewable wind, solar, natural gas. So this is a holy smokes, bad man. This is an alert to regulatory issues. [00:16:28][133.9]

Michael Tanner: [00:16:29] You know, and it’s it we got to keep building. I mean, we we covered Texas building that natural gas expansion. We need thousands of those across the country right now in order to handle all this stuff, especially if we do want to, again, continue to go green. [00:16:44][14.7]

Stuart Turley: [00:16:44] Oh, yeah. Hey, I’m all about it. You know, I’m energy agnostic, I’m humanitarian. Let’s end energy poverty. [00:16:52][8.1]

Michael Tanner: [00:16:53] Absolutely. [00:16:53][0.0]

Stuart Turley: [00:16:54] What’s next? I’m all done. [00:16:55][1.0]

Michael Tanner: [00:16:56] Okay. Nice. [00:16:57][0.5]

Stuart Turley: [00:16:58] Well, thank you. Thank you. As Michael says. [00:17:00][2.1]

Michael Tanner: [00:17:02] No, no problem. We got to keep you. Well, we’ll keep you going. Let’s move to finance guys real quick. You know, S&P and the Nasdaq fairly flat On Friday. We saw oil prices take a small dip, but still settling, 7178. They look here to open. If the markets are about to open here as we record this on Sunday, 7210. So hopefully we see a little bit of overnight strength. Again, you know, IEA comes out and says global crude oil demand is going to grow in 2024, that it kind of buoyed some of some of the sentiment right there. Again, we saw last week the US central bank and the Fed deciding to keep interest rates the same, but did forecast a potential three rate cuts in 2024. Now we’ll see where that all comes in right now. Again, you know, lots going on from a from a macro standpoint. We saw rig count on Friday, drop about three, 3 to 3 rigs in the United States is 623. Canada saw nine rigs drop internationally. We saw a rise of 16 rigs. So a little bit of a burning sentiment there. But, you know, I think, you know, we covered the big news, Stu, in our deal spotlight, which was Oxy and Crown Quest. Things have been kind of dull up until then. We’re about to roll into earnings season now. Quarterly annual reports are due, so we might be doing some deep dives into those. But I will we’ll we’ll we’ll cut this finance segment off early buy only say go check out our deals Spotlight with Crown Quest and Oxy. Episode number two. Again in our deals spotlight, you can see that energy news become or we’ll put the the recordings of it out on YouTube and Spotify. Better to watch the video, though, so go check it out on our website. What do you guys do? What should people be worried about this week? [00:18:38][96.3]

Stuart Turley: [00:18:38] Well, I’ve got several law enforcement folks to come up because is energy and the open border matter. I’ve got some experts on the open border and what’s coming around. And so that’ll be kind of interesting to see. We also have some great podcasts coming out. We have an Bradberry, the CEO of the American Exploration and Production. We have Joe Ferrell, founder and CEO World Database coming out this week. So we got some really cool ones and I’ve got Paula Glover coming out this week as well too. We got three rolling out. It’s pretty cool. [00:19:17][38.2]

Michael Tanner: [00:19:17] And Paula Glover, she’s fantastic. [00:19:18][1.2]

Stuart Turley: [00:19:19] Yeah, I. [00:19:19][0.2]

Michael Tanner: [00:19:19] Love that American was who because she was originally at the American Association of Blacks in Energy, which we knew very well, did a lot of work for them. We love love. [00:19:27][7.4]

Stuart Turley: [00:19:27] Them. Great. [00:19:27][0.4]

Michael Tanner: [00:19:28] Now what’s the name of it? The Alliance to Save Energy. [00:19:31][3.1]

Stuart Turley: [00:19:31] Alliance to Save Energy. Thank you very much. And I love Michael. I’m going to say this for three years working with you, you’re the most fun I’ve ever had working. The other part of this is we’ve never talked about saving my curiosity. No. And this is huge because it would take a huge load off the grid. In fact, absolutely. I was like, Wow, what are the epiphany? [00:19:53][21.4]

Michael Tanner: [00:19:53] No kidding. So I guys will with that, we’ll let you get out of here, start your Monday. Hopefully there’s no meetings or it’s meeting chill. Otherwise, guys, we’ll be with you all week. For Stuart Turley, I’m Michael Tanner. We’ll see you tomorrow, folks. [00:19:53][0.0][1146.7]

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