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Residual value of nuclear fuel to be an economic disruptor of shipping
Iran Publicly Complained About China’s Paltry Investments Over The Past Year
Highlights of the Podcast
03:49 – Residual Value of Nuclear Fuel to be an Economic Disruptor of Shipping
07:52 – Iranian explosions. Implications and impact on oil
09:52 – Iran publicly complains about China’s paltry investments over the past year
11:27 – Ice to open London Gas Hub, creating route around the E.U. price cap
12:21 – Ice trading at the ETF gas hub in Amsterdam warned it could move the market outside the EU because the bloc’s looming price cap on gas
14:38 – Market Updates
19:09 – Outro
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Energy Transition Weekly Conversation
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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 chilly Tuesday, January 31st, 2023. As always, I’m your humble, humble correspondent Michael Tanner, coming to you from an undisclosed location here in Dallas, Texas. [00:00:31][16.3]
Michael Tanner: [00:00:32] Candidly, it is actually the 30th at about 6:30 the night before when we record this apparently tomorrow as you guys listen to this, it’s supposed to be an ice storm. So stay safe, please. We don’t want anybody getting into an accident. [00:00:44][11.8]
Michael Tanner: [00:00:44] But also, it’s not that bad outside and people really here in Dallas really are just actually wimps. I thought they were kidding, you know, and be like, oh, yeah, the city freaks out when it gets like below, you know, 30 degrees and you see like a little bit of rain. [00:00:57][12.8]
Michael Tanner: [00:00:57] It’s actually true. Like these people were like rushing out of the office, like they just seen a ghost. So it’s not that bad. People sack up a little bit, but if it does ice and by the time you listen to it, this is ice. I forget everything I said. Stay safe. [00:01:09][11.9]
Michael Tanner: [00:01:10] As always, we have joining us, the executive producer of the show that prepared the show, the director and publisher of the world’s greatest website, EnergyNewsBeat.com, Stuart Turley, my man, how is it in bear country? [00:01:18][8.2]
Stuart Turley: [00:01:19] Cold. I could use me a bear to curl up with. [00:01:21][2.9]
Michael Tanner: [00:01:22] But we had to grill. [00:01:25][3.0]
Stuart Turley: [00:01:26] Yeah, I mean, we got some sleep, everything else and the way the road is here, I cannot get out. So needless to say. [00:01:36][9.4]
Michael Tanner: [00:01:36] Needless to say, you’re pumped and locked in and we have a great show for everybody. So if you’re snowed in and trying to not do work, trust me, we have a great show for you lined up. Iran publicly, complained about China’s paltry investments over the past year. [00:01:50][13.6]
Michael Tanner: [00:01:50] We’ve got ice to open up London Gas Hub creating route around EU, Prussian or EU price cap. Of course this is already in the works. Residual value of nuclear fuel to be an economics disruptor of shipping. This is very interesting Stu has a lot of thoughts on that. Iranian explosions, implications and impact on oil. I’ll give you the synopsis. Nada. [00:02:13][22.2]
Michael Tanner: [00:02:13] We will go over and cover those not a natural gas or oil and gas prices, which are currently trading at 7794. So oil takes a nice hit as hikes loom. [00:02:24][10.3]
Michael Tanner: [00:02:25] The EIA is set to report storage numbers for both crude oil on Wednesday and natural gas on Thursday. Nat gas currently trading at $2.67. Just not good for that. I will cover what that means. And a little funny story from Comstock. I think we have an air guy, the week candidate. [00:02:41][16.6]
Michael Tanner: [00:02:42] So we’ll cover all that and a bag of chips, guys. But first, check us out, world’s greatest website, energynewsbeat.com. Check out the description below. All of the links are there. You can check out our website. It’s really the home at news, the Pulse, to say the least, of what’s going on in the industry. [00:02:58][16.7]
Michael Tanner: [00:02:59] Check out Sign up for our newsletter Goes out every Tuesday Dashboard.EnergyNewsTV.com is our web application that we’re building out. V1 one is currently live v2 two currently under the works. We’re happy to say we’ve hired a new developer and our team is expanding and it will be. It’ll be great. He’s here, he’s a great guy. [00:03:15][16.4]
Michael Tanner: [00:03:16] So if you see him on LinkedIn, connect with him. Otherwise we’ll be looking to roll out. V two. I saw Stu here. He added software engineered energy news onto his LinkedIn. I thought that was kind of cool. [00:03:25][9.0]
Michael Tanner: [00:03:25] So now Energy News has a software as a certified Lincoln software engineer so for us, enough of the pleasantries. Those two, I’m tired of hearing my own voice talk to me. What do you have? [00:03:36][10.4]
Stuart Turley: [00:03:36] Well, we’re going to have some fun here, dude. I’ll tell you what, let’s start with our nuclear story. I love me some nuclear. And when we sit back and and talk, Michael, the title of this story is Residual Value of Nuclear Fuel to be an Economic Disruptor of Shipping. [00:03:55][18.2]
Stuart Turley: [00:03:56] This title, I think, was written by your Air Guy of the Week. And as we know, our podcast listeners, our Guy of the Week is not necessarily the sharpest stick in the shed. [00:04:07][11.2]
Michael Tanner: [00:04:08] So and then the most brilliant people, they’re the most brilliant is for the most brilliant and well-timed news reports. [00:04:15][6.9]
Stuart Turley: [00:04:15] Okay,. [00:04:15][0.0]
Michael Tanner: [00:04:15] A.k.a. the API. Who’s right? [00:04:18][2.4]
Stuart Turley: [00:04:18] Okay. That being said, here we go. We’re coming into this and this is pretty interesting. I’m just going to read you this one thing here. Nuclear’s been beaten up since the 1980s with fear and mistrust fostered by those who would profit from its demise. Okay, that was all I can handle there. [00:04:36][17.4]
Stuart Turley: [00:04:36] The whole article stems from this, Michael. We’ve had submarines, we’ve had aircraft carriers. We’ve had everything running safely in the Navy and run and great. I love Maine’s nuclear powered fleets. I mean, it’s couple of years and that submarine can stay down life is Good. [00:04:56][19.4]
Stuart Turley: [00:04:56] This article really is misnamed and that’s really going after liquid fuel so that you don’t have to turn a ray a reactor off and you could actually have cargo ships. You could have tankers. You could have all of these ships, zero carbon buzzing around the oil rigs and around the world at zero carbon. [00:05:22][26.1]
Stuart Turley: [00:05:23] Let me read you one of the lines in here. I thought it was fabulous. Instead of stopping the reactors, refit, refueling and intervals to remove the spent fuel and fresh fuel. New liquid reactors can be topped off at full power. They don’t stop. They don’t produce any emissions. And the little residual waste equivalent to the amount of being topped off would be extracted from the core securely in the reactor island, causing no environment to the and damage to the environment. [00:05:52][29.6]
Stuart Turley: [00:05:53] At 2% point 5%. Inflation after a 30 year with a 30 year ship life floating platform or other synthetic bunker fuels the energy in the reactor could double in value. [00:06:08][14.6]
Stuart Turley: [00:06:09] So I’m talking it. It makes a lot of sense, Michael. It scares me, though, because we got pirates hanging off of Somalia and it’s not like a military ship we got some bad ass Navy, Marines and everybody else protecting it. [00:06:25][15.9]
Stuart Turley: [00:06:25] So I’m over here going, I love me some nuclear but, you know, you can see some Somalis coming over some pirates in a in a skiff. It took out the USS Cole, but with the Apple guys going ayatollah’s ayatollah, and they came whipping in there and blew up the USS Cole. [00:06:43][18.0]
Stuart Turley: [00:06:43] So what is wrong with this picture? I love it. I think it’s a fabulous article, but the title’s misleading. And then all we’re going to get is some guy in a Zodiac coming up going, you know, long live the Zodiac. Anyway what are your thoughts?. [00:06:58][14.7]
Michael Tanner: [00:06:59] I only got one thing to say on this article. I’m the captain now. [00:07:04][4.8]
Stuart Turley: [00:07:05] You’re the captain. [00:07:05][0.4]
Michael Tanner: [00:07:06] I’m the captain now. You’re absolutely right. I can. Either one of these is going to get taken over, and all of a sudden you have a floating bomb like. And also you read the article. I don’t want to dive into it more, but they. They also talk about the economics of this thing. [00:07:21][14.6]
Michael Tanner: [00:07:21] These things will never be there like that one at one point. They’re 500 million In the next line, they’re 2 billion. You never going to be able to build these cost effectively this is a pipe dream. [00:07:30][9.4]
Stuart Turley: [00:07:31] No, I got tickled at it. So and I love the love the comment, love nuclear, but you got a bunch of guns on Navy ships protecting it. So that’s just my $0.02. Okay. Let’s go to Iran. I love me some Iran stories. [00:07:45][14.2]
Stuart Turley: [00:07:46] And speaking of that, they probably have a zodiac or two ready for them tankers. Nuclear powered tankers. Iranian explosions. Implications and impact on oil. Michael, do you remember a couple of years ago there was a terrorist attack in Riyadh and in some of the oil fields, oil went up $15 in the next day. I mean, it was like, you know, they weren’t they didn’t even have the things put out. Poof, here it goes. The price goes up. [00:08:14][28.5]
Stuart Turley: [00:08:15] You kind of gave away the story here. It’s a nothing burger. This goes on over here and it says, While no party has claimed direct responsibility for the explosions, senior Ukrainian. I can’t even pronounce his name. I’m not going to try it besides the operation and the plies. Explosive night, blah, blah, blah. Okay. [00:08:34][19.6]
Stuart Turley: [00:08:35] Will prices spike as markets price increase? No. Will the Ukraine war spill over to the Middle East? Yes, I think eventually it will, Michael. We are absolutely doing stupid things with this war. I think it will. You’ll see it spill over before it. So I think. [00:08:54][19.8]
Michael Tanner: [00:08:55] The issue is this the issue is this What’s that clear in old times, if we were doing this show back in the heydays, do we do this two years ago, this happened. Boom, prices spike. [00:09:04][8.9]
Stuart Turley: [00:09:04] Absolutely. [00:09:04][0.0]
Michael Tanner: [00:09:05] We’ve got prices down 2% today. So the fundamentals have have have completely shifted. You know, I don’t want to say I’m an Iran expert. I leave I leave you to expound upon world affairs. But it would be very interesting. You know, what scares me is the targeting military production. That scares me a little bit. [00:09:22][17.1]
Stuart Turley: [00:09:22] Well, you know, Iran was providing all that drones to Russia, and that was a little bit of a crazy thing. So Iran’s not a bunch of nice guys over there. Let’s go ahead and go finish the second story here, Michael. The second story on this is and again, it’s the Iran leaders. [00:09:44][21.6]
Stuart Turley: [00:09:45] There are great Iran folks. I’m not ever talking about, you know, people. These are Iran. This next one, Iran publicly complains about China’s poultry investments over the past year. Michael, you can’t buy this kind of entertainment. I’m sorry. I got really tickled that. Let’s go through some of the highlights here. [00:10:10][24.9]
Stuart Turley: [00:10:10] Here they are, Iran. Iranian Deputy Finance Minister Al Farooqui. Is that how you think you would pronounce it publicly? Complained on Sunday about China’s paltry investments over the past year. China has invested nearly 185 million in Iran over the 15 months, which we’re not happy with, given the amount of negotiations and meeting we had. [00:10:33][23.2]
Michael Tanner: [00:10:38] They got screened by the Chinese. [00:10:39][1.0]
Stuart Turley: [00:10:40] But it was so foreign. What they’re seeing, though, is they’re seeing all the Ukraine’s Ukrainians making bazillions of dollars. [00:10:48][8.3]
Stuart Turley: [00:10:49] They’re getting tanks, tanks a lot. You know, and so they’re getting all this stuff and they’re like, hey, we need the Ukrainian negotiators over here, and they’re going to import them in and rent them so they can start using the Ukrainian negotiators to start getting money from China and other countries. So I thought that was kind of funny. [00:11:06][16.6]
Michael Tanner: [00:11:06] So anyway, yeah, that I think it’s hilarious. I love how they’re they’re touting how the Russians have invested so much. It’s really not swift when you talk about how much the Russians have invested in your country. It’s probably not a good thing. [00:11:17][11.0]
Stuart Turley: [00:11:18] No, and China is not stupid they are very, very smart. We’re going to come around. Speaking of Russia on investments, this one, the story is ice to open London Gas Hub, creating route around the E.U. price cap. Michael, there’s a couple things going on in this world. [00:11:38][20.0]
Stuart Turley: [00:11:39] Carbon credits are a scam. Carbon credits allow you to buy credits and then you can go pollute. It’s like going to your wife and saying, I’m going to buy me some credit so I can go get drunk with a boys tonight, right? Yes. [00:11:54][14.7]
Michael Tanner: [00:11:55] Exactly like that. [00:11:56][0.8]
Stuart Turley: [00:11:56] I mean, it is it’s the same thing. I need a kitchen pass, maybe. Here’s my credit card. So ice is the Intercontinental Exchange. I see. Plans to launch a parallel market in London for title transfer. A facility of gas trading next month. Oh. It gets a little thick here. [00:12:20][24.1]
Stuart Turley: [00:12:21] Ice trading at the ETF gas hub in Amsterdam warned it could move the market outside the EU because the bloc’s looming price cap on gas. So not only are the children, not only are the the black widows eating their husbands, they’re just eating their own en masse because the traders are moving out of the EU. [00:12:43][22.0]
Stuart Turley: [00:12:44] And you’re going to see a greater systemic problem of people bailing out of the EU. This story is actually huge for them to try to get out of bypassing it again. That also goes with our Iran story. Iran had been getting around sanctions for years and all Putin goes, Hey, I’m going to learn me from some, you know, Iranians how to get it. They got around all the sanctions and everything else. Now Europe is helping them get away from the sanctions. [00:13:14][30.3]
Michael Tanner: [00:13:16] Yeah, it’s yeah, you said it. You put it perfectly. This is literally getting around sanctions. I mean, we could I could sit here and rip this apart and we can have a lot of fun talking about how they did this to themselves and how this is the free market doing what it does, finding the lowest cost solution, finding a way around regulations. But it’s all clearly there. I just think we say we told you so. [00:13:42][26.1]
Stuart Turley: [00:13:43] Right. And if anybody deserves a free hunting pass with Dick Cheney, Inc., it’s one of these new brochures. I got a brochure on it somewhere here. And it’s a new thing for international people to come to the U.S. and go on a personally hunted, hunted guy. Dick Cheney is your hunting guide and you’re going to go shoot yourself in the foot. And he’s going to like if you miss, he’s going to shoot you. I mean, that’s how bad this is. [00:14:12][29.5]
Michael Tanner: [00:14:13] Yeah, it’s it’s it’s not funny. [00:14:15][1.9]
Stuart Turley: [00:14:16] It’s not a one on one hunt with Dick Cheney. Cheney is better than this. Oh, okay. I’ve been I’ve had way too much fun on today’s show. Yeah. [00:14:25][9.7]
Michael Tanner: [00:14:26] Trust me, we will not be in my segment hunting with Dick Cheney, but I want to be talking. We are going to be talking about natural gas prices. I don’t know what’s worse, this natural gas price or on. [00:14:35][9.3]
Stuart Turley: [00:14:35] Hunting with Dick Cheney. [00:14:36][0.6]
Michael Tanner: [00:14:37] We’re currently trading $2.68. You know, cash prices do climb a little bit today. As expected on Thursday, we’re going to see somewhere between a 76 to 160 Bcf drawdown. Last year we had 262. So still way below, you know, is cold right now. [00:14:54][17.5]
Michael Tanner: [00:14:54] So you would have thought prices would have maybe popped a little bit, but they stayed fairly steady against $62.68. You know, these powerful cold shots that are impacting the lower 48 might, you know, pump up that short term demand. [00:15:06][11.3]
Michael Tanner: [00:15:06] But again, in that long term, we’re still, you know, hoping Freeport provides some relief, but. Natural gas has gotten pounded and I don’t think the fundamentals support it going anywhere other than continuing to stay around this level. So God bless natural gas price producers are. They’re going to need it here very quickly, Stu. [00:15:20][13.6]
Michael Tanner: [00:15:20] Oil didn’t have that much fun anyway. I think there’s two things impacting oil, which is currently trading down about two percentage points, 7797 as we record this about 645 on January 30th. Our first is the impending rate hikes coming this Wednesday. [00:15:33][13.2]
Michael Tanner: [00:15:34] The Street is expecting a 25 basis points bump. Anything higher than that, it’s not going to be good. Anything lower than that. We might see a pop ever so slightly, but if we come in as expected, I don’t think we’ll see anything tumble too terribly much. [00:15:47][13.0]
Stuart Turley: [00:15:48] Michael, I hate to cut you. What’s your gut? [00:15:50][2.1]
Michael Tanner: [00:15:50] They’re going to do 25 basis points, but I think they’re going to signal that they’re going to keep cutting or that they’re going to keep raising. Excuse me. So I think it’s I think you’re going to see a flounder in markets when it comes in as expected, because the speech which Powell will give after which is sometimes even more important than the actual number itself, he’ll signal that they’re going to continue to cut and go beyond the guidance of, I think it was five and a quarter basis points, which is what their original guidance was. [00:16:14][24.2]
Michael Tanner: [00:16:15] They’ll probably raise that to, you know, five and a half, five and three quarters would be my that’s my prediction is that it’s 25 basis points. The speech is going to indicate we’re going to blow through our guidance, and that’s going to send prices tumbling as also Russian demand and outflows have come in strong according to our favorite people over at routers. [00:16:32][17.5]
Michael Tanner: [00:16:34] They had a quoting here, What was it from what I was yeah, they were talking about Russian outflows. But I mean we covered that last week on Friday. So it’s kind of funny. They got to reuse the same material when it’s really just I think a floundering in in in what’s expected to come up. [00:16:50][16.2]
Michael Tanner: [00:16:50] So everybody stay strong out there. I think final thing in finance, I thought this is hilarious Stu I r guy the week year s&p smallcap 600 constituent agree realty company will replace store capital corp in the s&p midcap 400 k. So what does that mean? Oh, that’s nothing. Those are just realty companies. [00:17:11][21.0]
Michael Tanner: [00:17:12] The next part of this press release is Larry’s and Comstock Resources oh, we know them. Comstock Resources will replace a grim reality in the S&P Smallcap 600 effective prior to opening of trading Monday, February 6th. Wow. They’re in the nick of time. Did they slip in, baby? Trust me. Comstock Who’s that? Jerry Jones. Right. What does Comstock produce? Mostly natural gas. Ooh. [00:17:38][25.8]
Stuart Turley: [00:17:38] So the Dallas Cowboys lost. Do you think Jerry Jones is going to have a a another one go under? [00:17:46][7.3]
Michael Tanner: [00:17:47] No, I don’t think Comstock is going under, but their valuation significantly cut. I think it’s hilarious that, oh, you know, they’re in the small cap 600 when arguably their market cap has never been lower in the past six months or 12 months. I mean, arguably their their market cap has never been lower as it is today than it has been like an old past 12 months. [00:18:03][16.6]
Michael Tanner: [00:18:03] So it’s kind of funny that they’re now getting added to small cap, 423 months. They’re just going to get removed because they’re below the threshold. So it’s just the timing is more ironic. The timing is up for our guy. The week we will let you know at the end of Friday who wins. Stu, What are we missing the day before we let these fine people go? [00:18:20][16.4]
Stuart Turley: [00:18:20] Boy, you know, you were kind of laughing about that, Michael. You know what? The difference between trucks in Texas and trucks in Colorado on the ice and snow. [00:18:30][9.6]
Michael Tanner: [00:18:30] Hours, that four wheel drive. [00:18:31][0.9]
Stuart Turley: [00:18:32] And y’all know how to drive on ice and snow Texans. [00:18:35][2.8]
Michael Tanner: [00:18:35] Yes, because as I mentioned, it’s four wheel drive. Not for will stop, not for wheel stop. That doesn’t exist. No. But so that people are idiots here. But that’s for another story. I don’t that’s for another podcast which our guys won’t let you get out of here. [00:18:52][17.0]
Michael Tanner: [00:18:52] Get back to work. And thanks for checking us out. World’s Greatest Website EnergyNewsBeat.com For Stuart Trump. I’m Michael Tanner. Stay safe out there, folks. [00:18:52][0.0]