Daily Standup Top Stories
U.S. Electricity Generation by Source in 2023: Natural Gas, Coal, Nuclear, Wind, Hydro, Solar, Geothermal, Biomass, Petroleum
By Wolf Richter for WOLF STREET. Electricity generation, as measured in gigawatt-hours, has gotten hammered by a near-stagnation in demand since 2007, as efforts to make everything more efficient have produced results for electricity users who’d invested in […]
LNG Demand Will Surge 50% in Next Decade, Woodside CEO Says
Woodside Energy Group Ltd., Australia’s top liquefied natural gas exporter, expects consumption of the fuel to rise 50% over the next decade, pushing the supplier to consider further expansions. “We’re seeing signs of that demand […]
Wyoming Likely To See Billions Of Dollars In Wind Projects Built In Next Few Years
Billions of dollars in wind energy developments are coming to Wyoming. But predicting a time when they could be connected to the electric grid is much more difficult to predict. That’s because they’ve suffered delays […]
Counties are blocking wind and solar across the US — maps show energy capacity in your area
A nationwide analysis by USA TODAY revealed a trend that threatens to derail U.S. clean energy goals: local governments are banning new utility-scale wind and solar power faster than they’re building it. Learn more:US counties are blocking the future […]
Goldman CEO Sees More Uncertainty to Soft-Landing Expectations – Will this impact global oil demand?
Goldman Sachs Group Inc. Chief Executive Officer David Solomon said softer spending by consumers calls into question expectations that the US economy will avoid a recession. “The world is set up for a soft landing,” Solomon said at […]
Permian Resources Announces Strong Fourth Quarter 2023 Results and Provides Highly Capital Efficient Full Year 2024 Plan
MIDLAND, Texas, Feb. 27 /BusinessWire/ — Permian Resources Corporation (“Permian Resources” or the “Company”) (NYSE:PR) today announced its fourth quarter and full year 2023 financial and operational results and 2024 operational plans. Permian Resources’ full […]
Highlights of the Podcast
00:00 – Intro
01:53 – U.S. Electricity Generation by Source in 2023: Natural Gas, Coal, Nuclear, Wind, Hydro, Solar, Geothermal, Biomass, Petroleum
05:02 – LNG Demand Will Surge 50% in Next Decade, Woodside CEO Says
06:15 – Wyoming Likely To See Billions Of Dollars In Wind Projects Built In Next Few Years
09:41 – Counties are blocking wind and solar across the US — maps show energy capacity in your area
10:49 – Goldman CEO Sees More Uncertainty to Soft-Landing Expectations – Will this impact global oil demand?
14:30 – Markets Update
16:53 – Permian Resources Announces Strong Fourth Quarter 2023 Results and Provides Highly Capital Efficient Full Year 2024 Plan
19:47- Outro
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Video Transcription edited for grammar. We disavow any errors unless they make us look better or smarter.
Michael Tanner: [00:00:13] What’s going on? Everybody? Welcome in to the Wednesday, February 28th, 2024 edition of the Daily Energy News Beat stand up. Here are today’s top headlines. First up US Electrical Generation by source in 2023. Great article. Natural gas, coal, nuclear, wind, hydro, solar, geothermal, biomass and petroleum all ranked great. article by Wall Street. Next up, LNG demand will surge by 50% in the next decade, according to Woodside CEO. Next up, Wyoming likely to see billions of dollars in wind projects built in the next few years. Next up, counties are blocking wind and solar across the U.S. maps show energy capacity in your area. And then finally, on the news side, Goldman CEO sees more uncertainty to soft landing expectations. What will this do to oil demand? Stu will then toss it over to me. I will quickly cover what happened in the oil and gas and finance markets today. We did see Bitcoin continue to rise, which continues to really outpace everything else in the market. We did see crude oil prices as well, up about a dollar a barrel, mainly off the tack. Off the back of OPEC considering extending its voluntary cuts till the end of the year. And then we will quickly cover the API crude oil inventory estimates, which you will find out as you listen to this here on Wednesday. And then Permian Resources went ahead and drop their earnings fairly flat. Not much to poke around, but we will we will do a good job of trying to dig in and see what we can find there. Then we’ll let you guys get out of here and start your day. As always, I’m joined by Stuart Turley. I am Michael Tanner. Go ahead and kick us off, Stu. [00:01:53][99.0]
Stuart Turley: [00:01:53] Hey, let’s get rolling around to the US electrical generation by source in 2023. Natural gas, coal, nuclear, wind, solar. Right. And ro. Geothermal, biomass and petroleum. Okay. This is by Wolff Richer for the Wall Street. I was I thought this was great. It used a lot of the EIA data, but it also really kind of put it together in a way that it was generated by source. And so when you take a look at the mix share of renewable wind, solar, geothermal, biomass was 22% share of renewables without hydro was 16.5. So you sit back and take a look is big chunk. It is love me some hydro. But when you take a look at coal, in Miss Producer, if you could fly in the second chart or. Yeah, the second chart, which is in the middle of the article. [00:02:51][57.6]
Michael Tanner: [00:02:51] Electrical generated by source gigawatts per hour. It’s got all Matt. Gas, nuclear, renewables, petroleum for everybody listening. Right. One thing that’s clear since 2001 or really since 2008, coal’s been on a slight tumble down. But. Right. But it’s seen a comeback. What’s it is, is it seen a comeback in 2020? [00:03:09][17.3]
Stuart Turley: [00:03:10] And, we had a dip back. But the world is going coking coal ain’t dead yet. So, now, when you take a look, I thought the next chart down, Michael. Gigawatt hours by wind and then, hydro, all solar. So this is just showing. [00:03:32][22.4]
Michael Tanner: [00:03:33] This is just showing the renewable sources wind, hydro, solar and then biomass. [00:03:37][3.7]
Stuart Turley: [00:03:38] The thing that I saw this was geothermal. Biomass and hydro were very closer to the, nuclear flatlines. I mean, there are a heck of a lot more, stable. And I sure like, well. [00:03:54][15.5]
Michael Tanner: [00:03:54] And, well stable is in there just not growing because it’s really hard geothermal. We haven’t had much activity happening, so I wouldn’t expect geothermal electrical generation to grow year over year. Hydro is tough. [00:04:06][11.9]
Stuart Turley: [00:04:06] Because we’re I’m going to I’m going to disagree with you, Almighty one. We are seeing some technology breakthroughs in geothermal. [00:04:13][6.6]
Michael Tanner: [00:04:14] I get that, but it’s not showing up in the data because it’s flat. [00:04:16][1.9]
Stuart Turley: [00:04:16] No, no. [00:04:16][0.2]
Michael Tanner: [00:04:17] Electrical just says the amount of gigawatts no was generated. [00:04:20][2.9]
Stuart Turley: [00:04:21] Michael, you said we won’t see any. And I’m saying yes, we will. Technology’s coming around the corner. You said we. [00:04:27][6.7]
Michael Tanner: [00:04:28] Will in this in this data set. We’re not seeing any growth in that. I get why hydro is not growing. It’s a little at some point you just yeah, at some point you’re limited by how much stuff. So yes geothermal we know there’s some stuff going on. Stu’s talked at nauseam about that. But really interesting research by Wall Street. [00:04:45][17.8]
Stuart Turley: [00:04:46] Here at nauseum. I don’t love it. But what gets me is the cost per kilowatt hour is not in this article. I just thought it was great to talk about. Actually the sources this is on energy news. [00:04:59][13.2]
Michael Tanner: [00:04:59] We got low cost of energy, of course. All right. What’s next okay. [00:05:02][2.9]
Stuart Turley: [00:05:02] Let’s go to LNG. Will surge 50% in the next decade. Woodside CEO this was an amazing one. O’Neil. He is, really pretty cool. Cat. I like what she’s she’s doing out there. And that graph in the middle of it, a new wave of LNG supply growth is just going nuts. Cutter, which vies with the U.S. and Australia as the biggest LNG shipper. Announced plans for 13% increase in annual capacity. And we’re being handicapped by the Biden administration. [00:05:42][39.9]
Michael Tanner: [00:05:43] Yeah, I was gonna say, of course, the Woodside CEO loves this because I agree with her. LNG demand will probably surge by somewhere between 30 and 50% in the next decade. And guess who won’t be able to export the United States? Where’s Woodside located? Australia? That’s right. [00:06:00][16.4]
Stuart Turley: [00:06:02] But, Australia is going through some serious problems. They’ve got some hypocrisy leaders there like you wouldn’t believe. But I thought this was a great article. Okay, let’s roll to the next one. Michael, you know, I’m up here in bear country today, and I was out there and a bald eagle came by and he was telling me about this. Bald eagles tar. If you didn’t know that Wyoming is likely to see billions of dollars in wind projects built in the next few years. And before I get into this story, there’s a couple comments that went on our Substack and they said, follow the money. Is there any graft in this? Because, whoop, it does not make sense to put wind in Wyoming. It’s it’s kind of like. And the pictures got the antelope sitting there looking at it. Yeah. And Mr. Producer, if you could pull this up, the Eagles were letting me know that they were going to watch this since the, there’s millions of eagles getting killed every year, by wind. And this is a funny video. If you’re thinking that it’s on Amazon and the Eagles are watching it. So as we play this. [00:07:18][76.4]
Michael Tanner: [00:07:20] Let’s take a look here. [00:07:20][0.7]
Stuart Turley: [00:07:27] Every eagle is hoping that this is a true story. It is? Well. [00:07:31][4.4]
Michael Tanner: [00:07:31] Because they’re killed. The problem is these wind turbines are killing them. [00:07:35][3.4]
Michael Tanner: [00:08:30] It’s my my daddy’s always say if it if it looks like a Ponzi scheme and smells like a Ponzi scheme, it’s a Ponzi scheme. And this seems like a Ponzi scheme. [00:08:39][9.0]
Stuart Turley: [00:08:40] And, you know, I’m working. You know, I’ve heard you’ve always heard me say eight years. And it becomes fiscally, from a standpoint, unsustainable. David Blackmon has let us know that the in the Inflation Reduction Act, in the infrastructure bill allow for wind farms to start at the seven that eight year mark to rebuild these things. And so to rebuild these things, they get to double dip. And who gets it in the drive through. [00:09:14][34.6]
Michael Tanner: [00:09:15] All right. Yeah. No I mean it’s we’ve talked. [00:09:18][2.9]
Stuart Turley: [00:09:18] Ad nauseum ad. [00:09:19][0.8]
Michael Tanner: [00:09:20] Nauseum really about all this stuff. So it’s. [00:09:22][2.2]
Stuart Turley: [00:09:23] It. And when you. [00:09:23][0.7]
Michael Tanner: [00:09:23] Don’t have anywhere to put it what’s the point? [00:09:25][1.7]
Stuart Turley: [00:09:26] Eggs and and I want this very clear, just for Google and everybody else. I am energy agnostic. I could care less. Let’s have wind, let’s have solar. But let’s save some money anyway. Let’s go to the counties are blocking wind and solar across the U.S.. Map shows energy capacity in your area. And, this was from the USA today, and I thought that the, just the last graphic that’s in there is all you really needed to see. Is that Kentucky? It looks like, Tennessee is just absolutely, no way are we doing it. And then look at the section in California and Vermont are all going Nimby, Nimby, Nimby. Not in our backyard, not in our state. Look at that. Look at Oklahoma and Texas. We don’t care. [00:10:23][57.0]
Michael Tanner: [00:10:24] Yeah, exactly. That’s the funny part, is that everywhere is that it’s places that are blocking it. Are some of the places that are claiming to be all for wind, solar, all this jazz. It’s hilarious. [00:10:37][13.4]
Stuart Turley: [00:10:39] Now, I did visit with the congressman from Tennessee, and he’s a cool cat. And, so, I think that that one is a little bit odd. But anyway, hey, let’s go to the, Goldman. They did not call me on this one. The Goldman CEO, sees more uncertainty to soft landing expectations with this impact. Global oil demand. You can see that I added that last sentence because, I know you were thinking that. But here’s the thing with Goldman Sachs. He says we’re the world is set up for a soft or, landing, said Solomon. The market certainty perceives there’s a very, very high delta to a soft landing. My own view is that it’s a little bit more uncertain than that. I gotta give him here, credit for at least admitting that it’s uncertain rather than, is it Yeltsin? Yeltsin? Whenever she’s always saying, oh, it’s transitory. [00:11:39][60.8]
Michael Tanner: [00:11:41] Well, I find it hilarious that he’s like, we’re set up for a soft landing, but I’m this. But as the CEO of one of the largest organizations that studies financial information, I’m uncertain about what. [00:11:54][13.2]
Stuart Turley: [00:11:55] It looks like about it. [00:11:56][1.2]
Michael Tanner: [00:11:57] That it’s your analysts, your aren’t so sure, your analysts are saying one thing and you think, would you trust your own analysts? Or are you getting different data than what they’re putting out? [00:12:07][10.0]
Stuart Turley: [00:12:08] You see where I’m reading into this? You can read what a CEO says just by that comment. [00:12:15][7.0]
Michael Tanner: [00:12:17] Yeah. No, absolutely. It it. [00:12:18][1.1]
Stuart Turley: [00:12:18] It is, it. [00:12:19][0.4]
Michael Tanner: [00:12:19] Is. And I was like, wait a second. So you’re getting you’re getting side data for. I’m your analyst team, but you’re. You know, we’re set up for a. And that’s what you know. It’s what the analysts are saying. But I don’t think so. [00:12:29][10.0]
Stuart Turley: [00:12:29] Whoa, whoa. Oh, no. Why? And I think it’s because of the global printed money. And, it’s sitting here. It’s kind of funny. Even the NGOs are now. All the is dried up for the social programs and stuff. It’s not just energy that’s running out of money. It’s. Everybody is running out. [00:12:50][20.2]
Michael Tanner: [00:12:50] No, absolutely. It’s it’s unbelievable. [00:12:52][1.6]
Stuart Turley: [00:12:54] After you did. That was a lot of fun. And and, thanks for letting me, talk to the Eagles today. [00:12:59][4.7]
Michael Tanner: [00:12:59] Yeah. No. Absolutely. Go ahead and dine and toss it over in recover finance guys. But before we do that, we’ll go ahead and pay the bills here. As always, we 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. This team does a tremendous job making sure this website stays up to speed. Everything you need to know to be the tip of the spear when it comes to the energy business. Go ahead and hit the description below. You can see links to the timestamps, links to the articles. And go ahead and find everything that you need to know to keep in contact with the show. Dashboard.energynewsbeat.com is our latest data news combo product. I’m really excited that we’re going to be rolling out some stuff. We’re gonna be launching a survey here in a little bit. So we hopefully yes, we appreciate you guys. If you go ahead and hit the description below you’ll be able to see that energy News Beat.Com backslash survey. Please fill that out. You go ahead and fill that out. You’re going to get access. You’re going to get access to be able to view our premium subscription earlier and free. We love that. So you get a little free taste in there. We absolutely love that. And we say it on the podcast now. So it’s news got now until tomorrow morning when this launches to get it up and running. So that’s the beautiful part about saying it here. We put it on. We have to go back to it. but check it out. Energy news beat.com backslash survey. You can also find it on our website. We’re going to go ahead and make one of the pop ups that highly recommend filling that. It’s going to give us some great, great feedback on how to move forward. as always energy news beat.com. [00:14:28][89.1]
Michael Tanner: [00:14:30] Let’s go ahead and flip over here and talk about what happened in the markets. I mean I mean overall we saw fairly flat S&P 500 kind of laggard. Only about up 7/10 of a percentage point gap open. but but not much from kind of the gap opened really to where things ended up Nasdaq. Same thing. It was up 2/10 of a percentage point. We saw Bitcoin as I mentioned it’s up about 57,000 4.6 percentage points. We see crude oil at 7837. That’s down actually about 6/10 of a percentage point. Brant Oil up about 0.4 percentage points. Again that that unwinding of Brant and crude is that crack as that spread continues is going to be very interesting as we move forward specifically as we now know OPEC considering more cuts. And that’s part of what we saw, why we saw crude oil prices spike today both from a WTI perspective and a Brant Oil perspective. This is out of our favorite news source. Rumors OPEC plus will consider extending voluntary oil output cuts into the second quarter according to three OPEC sources in an in in hope to apply additional support to the market and it could keep them in place until the end of the year. You have to remember, these are voluntary cuts of about 2.2 million barrels per day. That was what quote unquote, what’s on the books for the first quarter. And that’s Saudi. That’s also led by Saudi Arabia. They’re rolling over their own production cut. You know we’ve seen prices rise specifically some of the geopolitical stuff that has happened. But it’s very likely that they’re going to quote unquote, according to the source, continue those cuts in order to help support prices. You know, also, we you know, what’s what’s crazy is we saw an 8.4 million barrel estimate from the I API on crude oil inventories. That’s huge. An 8.4 million barrel increase. And we saw prices rise again. It shows you a little bit of what’s going on from the detachment of oil prices, or detachment of, of, of what’s driving the market right now. I shouldn’t maybe use the word detachment. So far. It’s really the sentiment that’s driving prices right now is what’s going on from a supply side or from a demand side and and and and and supply really outpacing really what’s going on. And that shows the difference in what’s going on in WTI. And and Brant that’s going to hurt Brant Price or WTI prices. We saw them drop I said slightly after this news. We did see Brant prices rise. So a little bit of a a contiguous there. The only other thing that I saw today was Permian resources. They go ahead and scoop up and drop earnings. You know, not much. You know, I was trying to dive in a little bit to their numbers. The problem is not the problem. But they went ahead and closed that Earth Stone acquisition, November 1st, which goes ahead and increases their enterprise value to a little bit above $15 billion. I was going to go back in, and one of my favorite is, as we’ve talked about metrics, to look on this show, is capital per, capital spend or CapEx per quarter versus quarter production increases over quarter, aka you know, EOG spends $1.2 billion and gets a 3% production boost. Again, we see why they’re buying companies. Now, the real question for perk for Permian, they spent about $350 million in CapEx. But we did see their total average production go from 137, barrels per day to about 200, and 85. Oh, we’ve got an I, our guy of the week. Cannon is right. [00:17:52][202.1]
Stuart Turley: [00:17:52] No way. [00:17:52][0.5]
Michael Tanner: [00:17:53] Read this. Here we go. Continued strong well performance combined with closing of Earth’s stone acquisition drove crude oil and total average production to 300, a 137 million barrels per day OIC and 258 million B. Okay, I thought they were, confusing barrels per day in BOE, but it’s fine. I jumped the gun a little bit. Point is. [00:18:15][21.8]
Stuart Turley: [00:18:15] You got me all excited. [00:18:16][0.6]
Michael Tanner: [00:18:17] I know. [00:18:17][0.2]
Stuart Turley: [00:18:17] I know, it is Wednesday and we’ve already got an I our guy of the week. That’s not good. [00:18:22][4.9]
Michael Tanner: [00:18:23] Yeah. No. Absolutely. So we’ll go ahead. It’s not quite an Irish guy of the week, you know, everything else is really the same. We did see their stock price pop about a quarter of a percentage point, reported net cash up to, about 846 million adjusted free cash flow for the quarter, $332 million. And then they’re going to go ahead and declare a quarterly base dividend of about, $0.05 a share, variable dividend, about $0.10 a share. Repurchase 5 million shares for $67 million. It’s really about it. Market was fairly flat. Everything kind of, lined in expectation. So nothing nothing too crazy on that front. But all I got to do. What else? What else do you have? [00:19:04][41.1]
Stuart Turley: [00:19:05] Oh, I, I’ll tell you, I’m still confused on, global pricing. The Dark fleet is getting darker or grayer, you know, is it the Dark Fleet or whatever? I have no idea. Everybody get a tetanus shot when they walk by one of them. But, pricing when you see OPEC rule, things like that. Yeah. I’m not sure I even buy it, so I don’t know. [00:19:30][25.1]
Michael Tanner: [00:19:31] You don’t have to get something. Just you just you just keep telling me to keep my gas tank full. [00:19:36][4.7]
Stuart Turley: [00:19:36] So yes, I do. [00:19:37][1.0]
Michael Tanner: [00:19:39] He’s eating. He in that tone of his voice change, folks. That tells you he’s serious. It’s it’s fine with that, guys. We’ll let you get out of here. Appreciate every for checking us out. Energy news. Be. We will see you guys later. [00:19:39][0.0][1116.5]
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