Daily Energy Standup Episode #54 -US Reserves UP, ESG Investing Proving Not Profitable, US Refineries See High Prices To Increase Due To Russian Sanctions

Michael was on assignment to a bachelor party in California, so if he does not show up on Monday, we might send out a search party. I will be watching the Hangover series to get ready to fly to California to find him. Thank you to all of our great listeners. Your feedback has been phenominal! If you have any questions you would like covered, send us questions to questions@energynewsbeat.com or fill out the form on the top menu bar.

Have a great weekend, and see you Monday morning.


Highlights of the Podcast

00:00 – Intro
02:56 – US proven reserves of crude oil increased significantly in 2021
05:30 – All eyes look to permitting reform as next potential energy move
06:20 – ESG Investment rule Emerges as Top Woke target for republicans Battling Biden
10:47 – U.S. refiners expect Russian fuel sanctions to keep margins high
12:59 – OPEC plus to leave oil production quotas unchanged


Show Notes –

All Eyes Look to Permitting Reform as Next Potential Energy Bill to Move – Tim Tarpley

OPEC+ To Leave Oil Production Quotas Unchanged

EU must extend gas demand curbs to prepare for next winter -think tank

ESG investment rule emerges as top ‘woke’ target for Republicans battling Biden

U.S. refiners expect Russian fuel sanctions to keep margins high

EU struggles to agree Russian oil product price cap, seeks Friday deal


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

Stuart Turley: [00:00:14] Hi, everybody. My name’s Stuart Turley, president and CEO of the Sandstone Group. Welcome to the Energy News Beat Podcast I sure appreciate you guys stopping by. We’ve got a action packed show today, and what’s even more fun is Michael Tanner is out on assignment. He drew a tough assignment. He’s out covering a bachelor party in california. So if he does not come back, we will have a report on what happened to him. But until then, we got us a great show today. [00:00:46][31.3]

Stuart Turley: [00:00:46] We’re going to start in the U.S. and we’re going to work our way across the pond. There’s some things going around around the world. Our first story is now the U.S. proved reserves of crude oil increased significantly in 2021. The next one, all eyes look to permitting reform as next potential energy move. This is important this is not just oil and gas this is any kind of energy that’s very important. [00:01:16][30.5]

Stuart Turley: [00:01:17] ESG Investment rule emerges as top woke target for Republicans battling Biden. This is an interesting article because it comes up off of a tucker Carlson the video and I truly like Tucker. He’s one of the guys out there that’s pretty entertaining. [00:01:37][19.9]

Stuart Turley: [00:01:38] Then we go around to the first step before we go over to the pond, and that is in a article titled. U.S. Refiners Expect Russian fuel Sanctions to Keep Margins High. What does that mean to you? Higher prices. [00:01:53][14.9]

Stuart Turley: [00:01:54] So then the EU while we’re over there, we’re going to talk about EU is not out of the woods for next year. They’re going to have to extend gas cut demands in order to prepare for next winter. It means that, as we talked about, they are not going to be able to fill up their reserves with LNG for next year. [00:02:13][19.7]

Stuart Turley: [00:02:14] Last one, OPEC plus announced to leave their production quotas unchanged. So coming around the corner, let me give you a little heads up any of these stories are on EnergyNewsBeat.com. Please go there. Check out these stories like on your podcast or podcast are available anywhere that podcast are released. Please also go to Energynewsbeat.com, go to the questions up there. Send us questions. We’re already getting some great fan mail. And so believe it or not, fans do like us and so send us nails, me, emails. And everything else so we’re off and running. [00:02:53][38.7]

Stuart Turley: [00:02:53] And let’s go to the first story here. US proven reserves of crude oil increased significantly in 2021. It’s pretty good report that just came in the EIA report came in on february 1st crude oil. Texas is the state with the largest amount of volume let me read you this quote of least condensate and in 2021 had the largest net increase in proved reserves in the United States. [00:03:23][29.9]

Stuart Turley: [00:03:24] 12% or 1.9 billion barrels and expected to reach 18 billion barrels which is slightly less than the 2019 record. It’s pretty darn cool, especially for the Permian and for the state we just covered a little while ago how many billions the U.S., Texas oil and gas employees tax money and everything else went and paid for billions to the Texas schools. So lots of good information there for Texas. [00:03:57][32.9]

Stuart Turley: [00:03:58] Oh, look at the next thing here. One of the biggest problems with energy, it doesn’t matter if it’s wind, it doesn’t matter if it’s solar, it doesn’t matter if it’s nuclear regulations are a problem. Permeating is the number one reason people are paying higher energy prices. [00:04:16][18.4]

Stuart Turley: [00:04:17] I can’t make it anything plainer that is a huge issue they are slow walking everything around. They’ll say they want to do this, but it actually comes into instead of putting it, walking it down the hall, they’re like putting it in somebody’s drawer and leaving it for five or six months. I’m kidding, of course, but. [00:04:37][19.7]

Stuart Turley: [00:04:38] This is an analysis by Tim Tarpley. In fact, Tim, if we can get you on the podcast, that’d be fantastic. He is an analysis by Energy Workforce President. I thought this was an outstanding read. When you take a look at the SPR bill that was put out. [00:04:56][17.9]

Stuart Turley: [00:04:56] This comes in he adds. Some great quotes in here. Senator Senator Joe Manchin tried to cobble this together at the end of last session but wasn’t able to to make it happen with the SPR declared. We’re increasingly hearing comments from energy leaders on both sides of the aisle that a package with the intent of easing permitting rules to expand energy production and mining critical minerals is coming together in the next few months. [00:05:25][29.0]

Stuart Turley: [00:05:26] This is just incredibly important chairman Bruce.Westerman said, quote, We are going to look at much broader energy bills where we are not just focused on onshore and offshore oil and gas, but also the other components that goes along with renewable energy with electrification and decarbonization. That’s mining. [00:05:49][23.0]

Stuart Turley: [00:05:49] I’ll tell you what, this is extremely encouraging we’re going to follow this and we want to give a shout out to Tim Tarpley with the Energy Workforce Group and reach out and see if we can get him on the burn gas. [00:06:03][14.2]

[00:06:04] So let’s roll to the next one. There has been a dramatic change in in ESG and its fundamental fundamental impact on on the whole investment energy space. The title of this next article. Is ESG Investment rule Emerges as Top Woke target for republicans Battling Biden. [00:06:27][22.7]

Stuart Turley: [00:06:28] I’m trying to phrase this correctly there is nothing wrong with ESG. Environmental, social and governance are good things. When they’re weaponized they’re not good things. And what has happened is that investing, hypocrisy, ESG investing, hypocrisy is now a thing. BlackRock lost 1.7 trillion first half of last year. [00:06:53][25.5]

Stuart Turley: [00:06:54] Now you’re seeing all these bP announced yesterday that they’re putting less focus on coming around and going into the renewable space. You had Chevron that really said we’re going to go into renewable but not nearly as heavy. Then you had oxy that was actually going into CCU as carbon capture storage and utilization, and they’re going after that as a different market. As Michael pointed out yesterday that is an absolute wonderful thing. [00:07:24][30.6]

Stuart Turley: [00:07:25] So what we’re seeing here is the evolution of the ESG investment hypocrisy coming to fall back around. So in this article, it says a couple of really, really good points. President Biden said the other day that climate change is more harmful to the planet, has the potential of harming the planet more than nuclear war. [00:07:52][27.4]

Stuart Turley: [00:07:53] I couldn’t disagree any more with him at all. Anyway, I’m going to keep that will just keep that one quiet there. The calls for environmental social and justice governance in the financial industry are a public relations ploy focused on placing more Twitter risk than any material risk to investors. [00:08:17][24.2]

Stuart Turley: [00:08:18] Let me read that again. The calls for environment, social and corporate governance, ESG and the financial industry are a public relations ploy more focused on placing twitter risk than any material. Material risk to investors that was Kevin Cramer. I disagree. [00:08:38][20.4]

Stuart Turley: [00:08:39] When we take a look at the oil and gas industry, they have done a really, really good job in looking at how they’re producing oil. They are looking at the environment side of this extremely well in the U.S. in the rest of the world they do not have the same standards that we have. John BURNETT says equally alarming the recently proposed federal supply climate risk and resilience rule would require certain federal contractors to publicly disclose not only their greenhouse gas emissions, but also their scope three emissions compounding the burden. Imposed by the SCC. [00:09:21][42.1]

Stuart Turley: [00:09:22] We covered this on one of our earlier podcasts. How can a MP operator producing low cost natural gas that we all need and that people are now around the world are admitting that natural gas is needed and is being categorized in the renewable space? [00:09:41][18.4]

Stuart Turley: [00:09:41] How can we go forward and say that natural gas ENP companies are going to be held liable for the scope three emissions all the way through refineries and all the way down through the to the car. This is ludicrous absolute nut hole proposition for this. And this goes into the woke aspect of this and really changing it. From an ESG. Good thing to being hijacked in ESG is now becoming worthless because of it being hijacked. All right. Thanks for that rant I’m going to go ahead and go to the next one. [00:10:25][44.0]

Stuart Turley: [00:10:26] US refineries. Now, this is where it gets a little fun. President Biden went out and he said that the gasoline, high gas and diesel prices were because the quick potent price hike, the food price hike is actually not a real thing. What’s going to happen is the article is. U.S. refiners expect Russian fuel sanctions to keep margins high. The reason for that is going through the whole fuel chain. It is not something that you just flat out and say, oh, I’m going to pump more gas. Fuel supplies expected this year will hold margins high, said Exxon chief executive Darren Woods, saying that a tailwind could last into 2024. [00:11:14][47.8]

Stuart Turley: [00:11:15] Some numbers here marathon refining margins last year surged 81.5% from a year ago to 28 82 per barrel wow. Windfall profit taxes don’t work. Because they come back around and then the consumers get to pay it again. This is some force all to watch as it comes around the corner. [00:11:41][26.0]

Stuart Turley: [00:11:41] Next one, we’re going to go over the pond. EU. EU is not out of the woods and I think. Everybody can remember when they were sitting back and kind of saying hey, we’re going to sit back and kind of take a look. Everybody needs to take a cold shower. Everybody needs to not have any heat on. Well, when we’re taking a look at this, Michael and I talked about that there is no way you can replace the Russian gas with LNG. [00:12:08][26.2]

Stuart Turley: [00:12:09] Norway has stepped up to the plate and has knocked it out of the park. They are actually producing, bringing in more. They can’t replace the gas but they’re bringing in a lot. LNG has taken a bunch, but they’re not going to be able to fill their reserves again in the summer. So it says assuming limited russian exports continue like zero weather conditions are typical demand up to october one must remain 2023. 13% than the previous five year average. [00:12:44][35.3]

Stuart Turley: [00:12:45] Wow. That that’s going to be a big shocker. So that one’s going to make some real interesting events coming around the corner. All right. Last one this is going to be a real short one we’ll let you get back to work. [00:12:59][14.0]

Stuart Turley: [00:12:59] OPEC plus to leave oil production quotas unchanged. Why do you think they’re going to do that? It’s because they don’t need to do anything. There is so much going on in the world right now revolving around oil demand. China’s demand is coming up. There’s all these things in play. It used to be just a basic supply and demand formula. Not anymore,. [00:13:25][25.5]

Stuart Turley: [00:13:25] Anyway. Well, that’s it. And hey, hope he has a great day. It will be february 3rd and you guys are going to have a great Friday go out and have a great weekend as well, too. Thanks and. Appreciate. [00:13:25][0.0]