Good Monday Morning – Michael survived the bachelor party in California, and Stu did not have to role-play the “Hangover” movie and find him.
Watch for a wild week in prices. – Turkey and Middle East earthquakes, and inventory draws could be interesting. –
Show Note:
Manchin Says Yellen Is ‘Not Following the Law’ on EV Tax Credits
European Union bans Russian diesel, oil products over Ukraine – Consumers are in the cross hairs
NYC Natural Gas Soars to Highest Since 2003 Amid Bitter Cold – “Lighting the fire for the gas stove ban.”
India ditches dollar to bypass sanctions on Russian oil – helping downward shift U.S. global influence
U.S. Natgas Drops 3% to 25-Month Low on Less cold Weather in February – What will prices do?
Highlights of the Podcast
00:00 – Intro
02:41- Manchin says a Yellen is not following the law with every tax credits
04:34 – New York City Natural gas soars to its highest since 2003 amid bitter cold
05:10 – U.S. Natgas Drops 3% to 25-Month Low on Less cold Weather in February
08:54 – European Union bans Russian diesel, oil products over Ukraine
10:45 – India ditches dollar to bypass sanctions on Russian oil
12:10 – Outro
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Video Transcription edited for grammar. We disavow any errors unless they make us look better or smarter.
Stuart Turley [00:00:07] Hey, welcome, everybody. Today is Monday morning. It is February six. Good morning and welcome to the Energy News Beat. Stand up. My name’s Dude Hurley, CEO of the Sandstone Group, and my goal is actually on his way back from the bachelor party. So I did talk to him. We don’t have to go hunt for him. So that is some good news. I was afraid it was going to be the hangover where I was going to have to go bail him out and see if he met the tiger.
Stuart Turley [00:00:39] So with that, he’ll be back tomorrow. We’ve got a lot to talk about over this weekend and there’s a couple of things that are going on. Manchin is saying that Yellen is not playing by the rules with the EV tax credits.
Stuart Turley [00:00:55] New York City natural gas prices soar and it’s because of the cold coming in. We got some information on that. India is ditching the dollar to buy more Russian oil.
Stuart Turley [00:01:11] There’s also the European Union is banning it’s kicking in here today as well, too, as far as the ban on diesel and gasoline. So that is really going to start kicking in here in a little bit. So then we have the U.S. oil and rig count down.
Stuart Turley [00:01:31] So we’re going to sit here and have a little bit of time. Also got a bit of sanctions from an author in US in Russia. It’s kind of interesting hearing from the sanctions from a Russian point of view. So got a lot of that. Let me go ahead and get started.
Stuart Turley [00:01:53] But before we get started on that, I want to thank all of the listeners and all of the great feedback that we’ve been getting. Michael and I have just had an absolute blast. Want to give a shout out to all of our other podcast host under the Sandstone media brand, and they are also doing it quite well, just knocking it out of the park as well too.
Stuart Turley [00:02:15] So if you want to get your name out there and your impressions, we have sponsorships available on all eight of our podcast family. We also produce podcasts for you. If you want to be an industry thought leader in your chosen markets. Anyway, with that, let’s get down to the discussion here.
Stuart Turley [00:02:40] Okay. Manchin says a Yellen is not following the law with every tax credits. Boy. Senator Joe Manchin has been on a lot of the different kinds of areas. Remember when it was the Inflation Reduction Act, when he was a hold out for that? You take a look at not following the law on electric vehicle tax credits. As of May, automakers push the Biden administration to apply broad interpretations to a bill that he largely wrote last year. Quote, She’s basically not following the law and this administration is not, he told reporters on Thursday.
Stuart Turley [00:03:27] They’re cherry picking is his biggest issue the rules for the EV tax credits. This is actually driving a whole new shift on which is going to be an EV that is now under the rules or not under the rules. And so then you have Tesla, who is the most profitable EV company out there. They are just now reducing their prices.
Stuart Turley [00:03:54] And so this is really going to see a big fight going on between all of them scratching for their market share. So it is actually going to be pretty interesting when you sit back and take a look what is going to be going around on on the EV market. So the legislation known as the IRA has been hailed as a major piece of industrial and climate policy, with about 270 billion in tax breaks for EVs and renewable. This is one we’re going to keep watching.
Stuart Turley [00:04:30] So let me go to the next one. And the next story here is New York City. Natural gas soars to its highest since 2003 amid bitter cold. But this is lighting the fire for the gas stove ban. Let me kind of give you two things here. At Boston’s Algonquin City Gate Hub for Friday’s delivered trade price of $58, up from $12 the previous day.
Stuart Turley [00:05:00] In the words of Michael Tanner. Holy smokes, Batman. I mean, that is just unbelievable. Here’s part of the problem. Natural gas is sitting there right next within an eight hour drive over in Pennsylvania. The pipelines are not there. They’ve had to import all of their natural gas in the LNG through Boston and up through that way.
Stuart Turley [00:05:31] They’re basing this off of international pricing. International pricing is not as low right now. At the time of this. I’m recording this at 432 on a Sunday for our Monday show. And the natural gas is at $2.51. So when you start looking at the hub pricing, it is not based off of Henry Hub down in the South or any of that. It is because it’s coming in from international. That is all because of political issues going on in the past. It’s not going to happen to we can get some new pipelines done.
Stuart Turley [00:06:15] So let me go ahead and go over here to the next one. India is we’ve known we’ve been talking about this for quite a while now. And India is doing the best it can. We’ve talked about that for a long time and they are bypassing sanctions. There’s a couple of things that are happening right now.
Stuart Turley [00:06:36] The newest layer of sanctions are coming in and they are the second wave. They’re on the anything out of the diesel gasoline. But this is even taking it one step further. And this is going into the crude side of it. And they are now doing business outside of the dollar. This whole push is getting another step away from the dollar. Getting the oil off of the dollar. Standard is going to continue to devalue the U.S. as a in international market impacting country so you got to hand it to our leaders in not doing their job.
Stuart Turley [00:07:24] This one. Indian refineries reportedly make most of their purchases at Russian crude from Dubai based traders. It’s pretty interesting. So, again, my hats off to India for trying to do what’s best for their country. I just wish that our leaders had the same kind of belief system. So let’s go to the sanctions as we’re talking about sanctions again.
Stuart Turley [00:07:55] Let me again, Corby Okoh, I’m sorry if I missed pronounce your name. He is an interesting cat. He has got his substack and I highly recommend I’ll have his substack in there. I don’t agree with everything he says, but when he does come out with articles, it is interesting to take a look at all sides of a discussion.
Stuart Turley [00:08:19] You take it side of a renewable, you take a side of a troll on Twitter and I’ll go into that here in a minute. I’m having a lot of fun on Twitter with the new Elon Twitter, and quite honestly, I love throwing questions out there and getting trolled. You cannot buy this kind of entertainment and put something out there that seems reasonable and it is fun. Thank you, Ian. By the way, I know you’re listening to our show. Anyway. The official narrative surrounding the Ukrainian conflict has flipped in certain recent weeks because of the seriously warning about its loss.
Stuart Turley [00:09:05] This next article, The New York Times just admitted that the West’s anti-Russian sanctions are a failure. It’s pretty wild when you sit back and take a look and say that The New York Times just admitted that the West anti-Russian sanctions are a failure.
Stuart Turley [00:09:23] And when you take a look at Corey Ogle, he’s got an interesting substack. His substack is really pretty good. I don’t always agree with what he says, but his points in here are neither. The New York Times. The Western experts that write Anna Swanson cites nor the IMF credibly can be accused of being Russian friendly,.
Stuart Turley [00:09:52] Let alone so-called Russian. Propagandist or even Russian agents, which confirms the observation that this dimension, the golden billions anti-Russian information warfare campaign has devised severely shifted. The official narrative surrounding the Ukraine. Conflict has flipped in recent weeks from prematurely celebrating Kyiv’s supposedly inevitable in victory in to nowadays seriously warning about it’s likely lost.
Stuart Turley [00:10:27] The real thing about this is we’ve always said sanctions don’t work. Iran has always figured out through years of how to get around sanctions. We’ve seen that. The sanctions I just talked about that in the article a minute ago with India buying outside of sanctions by going away from the dollar.
Stuart Turley [00:10:51] Having The New York Times admit that there are now sanctions are just not going to work. We’re now rolling into a whole new phase with the diesel and gasoline. The EU runs on diesel. There’s a lot more diesel demand there, and so does India. So buckle up. I think we’re going to see some more price hikes come in around the corner because of this.
Stuart Turley [00:11:15] So and let’s go ahead and on the U.S. front, U.S. oil and rig count falls by the most in week since June 2020 from Baker Hughes. Let’s see here. U.S. oil rigs fell from 10 to 599 this week in their lowest since September, while gas rigs dropped to 2 to 158. U.S. futures were down 8%. So this year after gaining about 7%. Wow.
Stuart Turley [00:11:51] All right, guys. Well, with that, we want to just say thank you all very much. Michael will be back tomorrow. I am so grateful I didn’t have to go out and try to find him just like it was in the movie The Hangover. I’m too old for that. Anyway, thank you and look forward to hearing from you soon. We’ll see you tomorrow for.
