Daily Standup Top Stories
Elon Musk and Donald Trump X Interview Transcript
“The interview that broke the internet”
“Green” Hydrogen Subsidies Are 1,900x Larger Than What’s Given To Nuclear
ENB Pub Note: Please follow Robert Bryce on his Substack for great commentary and throught leadership in the industry. I have enjoyed my conversations with Robert and he is a great friend to the show. […]
In Pennsylvania, Harris can’t shake her anti-fracking past
ATLASBURG, Pa. — After years of positioning herself as a climate crusader and ardent opponent of fracking, Kamala Harris has avoided mention of such credentials in this must-win state for Democrats, where natural gas drives the economy, culture and everyday […]
Ukraine and Russia Plan to Keep Gas Flowing Amid Fighting
Fears of disruption to supplies have driven up European prices Gazprom’s flows via Ukraine have so far remained stable Russia and Ukraine intend to keep pipeline gas flowing to Europe even as fighting continues near […]
The True Cost Of The Biden-Harris Bet To Electrify Vehicles
Billions of tax dollars have been poured into what is increasingly a failing effort to convince or cajole auto buyers into going electric. Two months into his Presidency, Joe Biden announced a $2 trillion infrastructure […]
Oil Prices Under Pressure Despite Continued Geopolitical Uncertainty
Oil prices are under pressure from continued demand concerns but geopolitical risks and the recent rally from last week’s crash means Brent is still sitting comfortably above the psychologically-important $80 mark. – Ukraine’s incursion into […]
Highlights of the Podcast
00:00 – Intro
01:35 – Elon Musk and Donald Trump X Interview Transcript
05:07 – “Green” Hydrogen Subsidies Are 1,900x Larger Than What’s Given To Nuclear
08:05 – In Pennsylvania, Harris can’t shake her anti-fracking past
10:49 – Ukraine and Russia Plan to Keep Gas Flowing Amid Fighting
12:39 – The True Cost Of The Biden-Harris Bet To Electrify Vehicles
15:19 – Oil Prices Under Pressure Despite Continued Geopolitical Uncertainty
19:11 – Chevron Starts Production at Anchor With Industry-First Deepwater Technology
21:57 – Outro
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Video Transcription edited for grammar. We disavow any errors unless they make us look better or smarter.
Michael Tanner: [00:00:14] What’s going on, everybody? Welcome into the Wednesday, August 14th, 2024 edition of the Energy News Beat. Stand up. Here are today’s top headlines. First up Elon Musk and Donald Trump X interview. We’ve got the transcript live on our Substack. We’ll dive into some of the energy stuff they talked about. Next up, green hydrogen subsidies are 1900 x larger than what is given to nuclear. We gotta love a good Hindenburg impression there on the cover page. Next we’ll move over to Pennsylvania. And in that Harris can’t shake her anti fracking pass there specifically in Pennsylvania. It’s a big deal. So we’ll we’ll look at everything that’s going on with VP Harris’s or potential fracking ban though we’ll say potential. Next up we’ll fly overseas. Russia and Ukraine plan to keep gas flowing amid fighting. This is kind of a funny story actually. Next up, the true cost of the Biden Harris bet to electrify vehicles. You won’t want to miss this one. And then finally we’ll end up. Or then we’ll finish up with a new segment stu, then toss it over to me. I will quickly cover what happened in the oil and gas markets today, and specifically talk about where the markets today. We saw a little bit of a pop oil down a little bit. So we will cover all of that and a bag of chips guys. As always I’m Michael Tanner joined by Stuart Turley. What do you want to begin. [00:01:35][81.1]
Stuart Turley: [00:01:35] Hey let’s start with our buddies there Donald Trump and Elon Musk on X. And I tell you, where do you go with these two great guys having a total conversation? The fact that they had this kind of a conversation, if you go to the energy News beat that substack.com, this is there. And the staff did a great job on putting a outline of every major topic with timestamps in the transcript so that you can sit down and go, military waste, nuclear risk awareness, nuclear threat. I mean, they could Michael. They covered the whole gamut. And I love Trump. When he said he wants to lower energy costs, I thought that that was very, very telling. And I also loved Elon’s story, saying, we need to stop vilifying the fossil fuel industry from the standpoint of we wouldn’t be here without him. [00:02:32][57.1]
Michael Tanner: [00:02:32] Yes. I think there’s some very interesting stuff that we learned about that. Elon Musk has definitely done kind of a 180 on the oil and gas business. And I also it’s an unlikely combo. Elon Musk and Donald Trump. And I think we all need to be honest that, you know, Trump is being kind to Elon Musk because Elon Musk has given a lot of money. Elon Musk is being kind to Donald Trump because he feel like feels like the Democratic Party has really boxed him out. We know that with what happened with Twitter and all that. So it’s really an unlikely pairing. I thought it was a very interesting interview. I mean, obviously it took about 45 minutes for them to kick the thing off, right? You know, man, for reasons that, you know, of, of course, it was a denial of service attack. There was millions of people trying to flood in. Of course, the conversation started about 45 minutes late. You know, I do think obviously, you know, Elon Musk, I think a little bit is trying to have his cake and eat it too. I mean, he’s he’s got Tesla, which is trying to I mean essentially put the put oil and gas out of business. From a vehicle standpoint. [00:03:32][59.5]
Stuart Turley: [00:03:33] I think Tesla and Tesla will survive where the other EVs want, and it’s because it’s going to fit a market. [00:03:38][5.2]
Michael Tanner: [00:03:39] I get I get that, and no, I think he’s having moved to Texas. He’s being red pilled a little bit, so I can’t be too sad about that. I think he’s also seeing the fact of, I think his involvement in SpaceX shows you how you’re not going to have an electric rocket. It’s never going to happen. So there is obviously still a role for fuels. I think he’s obviously become aware. I do, you know, I think some of the talk on nuclear energy was a little bit. But hey yeah, I’ll, I’ll leave that to the rest. But overall it’s a great conversation. They talk for a while once they were able to get going. But yeah. No. So I thought it was great. You know I think, you know Elon Musk is definitely hesitant to come out and go the full climate change red pill. You know he’s he’s still kind of holding himself back a little bit. But who knows. Maybe in a couple of years he’ll be full on. He’ll be willing. [00:04:26][47.0]
Stuart Turley: [00:04:26] To read the one paragraph that was very critical from general Mike Flynn on ex last night. Mark the death of big corporate media, their inability to understand why they gloated, why they wake up in their New York corporate offices and view the numbers listed on last night. Mr. Trump’s ex SpaceX realize who got the last laugh and it wasn’t them. People don’t like mainstream media anymore. [00:04:52][26.6]
Michael Tanner: [00:04:53] Now they don’t, you know, especially. Yeah, yeah, good old Michael Flynn. We gotta love it. [00:04:58][5.3]
Stuart Turley: [00:04:59] I, I love me some Michael Flynn, man. [00:05:00][1.7]
Michael Tanner: [00:05:01] I. Yeah, I know you do. You need a win for president Hat. All right, what’s next? [00:05:05][3.6]
Stuart Turley: [00:05:05] He’d be a great, great VP. Let’s go to the next story here. Green hydrogen subsidies are 1,900% larger than what is given to nuclear. This is from Robert Bryce’s Substack. You need to follow Robert Bryce. He is a friend of the show. He is absolutely a national treasure. Bear with me while I read this one paragraph, because this is critical here in the U.S., the 45 the tax credit in the Inflation Reduction Act provides lucrative subsidies for hydrogen production. Big businesses lining up to get those subsidies. In February, energy Exxon energy giant ExxonMobil warned that it might cancel proposed hydrogen project at its Baytown, Texas, refinery, depending on how the Treasury Department interprets the clean hydrogen rules in the IRA. The Inflation Reduction Act, regardless of tax credits and subsidies, making and using hydrogen, is a high entropy, high cost process. As a friend in the oil refining business told me last year, if you like $6 gasoline, you’re going to love 14 to $20 a gallon of hydrogen. Hydrogen is insanely expensive in energy terms. The manufacturer. It takes about three units of energy in the form of electricity to produce two units of hydrogen. In other words, the hydrogen economy requires scads of electricity and high quality former electricity to make tiny molecules that are hard and difficult to expensive to store. Hence, the Hindenburg is not anything you want to name a business. [00:06:52][106.9]
Michael Tanner: [00:06:53] Yeah, I mean, that’s that’s like that’s like naming your new well, Macondo. I mean, you might want to stay away from that. Yeah. I mean, I’ve been saying this for a while. I’m not putting hydrogen in my car for risk of it. Now it’s turning it into a nuke. Much like stew wants to put small modular nuclear reactors in everybody’s car and turn everybody into a nuclear bomb. I’m not putting hydrogen in my car, but it’s clear. I mean, they they want they want to dump subsidies into stuff that they feel like they can control. Again, this all goes back to control. Why do they like wind and solar? Well be because it’s not oil and gas. It’s not captured. You know, whatever. It’s all about control. They’ve got no decision. They could at the end of the day, they could care less where the energy comes from, as long as whoever makes the money off the energy donates to them. That’s the difference. People that make money off wind and solar donate to them and not oil and gas comes down. [00:07:46][53.5]
Stuart Turley: [00:07:47] And wealth transfer because the grid. But you didn’t. [00:07:50][3.3]
Michael Tanner: [00:07:51] Well transfer to people that they like. They don’t mind people they like. They mind people they don’t like getting rich. Why? We’re poor here? Because they hate us. [00:07:58][7.2]
Stuart Turley: [00:07:58] Well, yeah, until we get our own tanker. I’m. I’m working on that. [00:08:02][3.4]
Michael Tanner: [00:08:02] Keep working on it, please. [00:08:03][1.0]
Stuart Turley: [00:08:04] Okay. Let’s go next. Let’s go to Pennsylvania. Harris can’t shake her anti-fracking pass. I got a joke, but H.R. would just really stop me right now, so I’m going to stop with that one. All right. In business, we’ll leave that in your gut. [00:08:18][14.5]
Michael Tanner: [00:08:19] We will, but just. Well, I’m cutting you off even before the joke starts. [00:08:23][3.8]
Stuart Turley: [00:08:23] I cut myself. Aren’t you proud? Good. In Pennsylvania. Harris can’t shake her anti-fracking past. The vice president of a hostility toward fossil fuel creates an acute political challenge in a must win state. Pennsylvania’s got a lot of drilling going on. Going there. Here’s a quote. It’s not like we can just shut off everything else and switch to solar and wind, Parrish said at the business office of the century Old Firm started by his grandfather, an Italian immigrant who leaned on New Deal projects to grow the business in its early years. A fourth generation contractor, he requires oil and gas in order to survive. [00:09:02][39.1]
Michael Tanner: [00:09:03] Well, she’s flip flop and more than a fish on wall, on land, on everything. The border, fracking. I mean, it’s going to be tough to win Pennsylvania and be anti-fracking. We’ve seen that for years now going back, it’s the one thing that makes it super interesting. And I think the you know, again, I think the establishment there is hesitance. One of the reasons why I don’t think they picked Josh Shapiro for VP was because he’s very pro fracking. He understands as the governor, he may or may not like the guy, but he understands completely that the oil and gas business is critical to their. [00:09:35][31.9]
Stuart Turley: [00:09:36] The last line of this. [00:09:37][1.1]
Michael Tanner: [00:09:37] I think the whole fracking ban is is just all bark and no bite, all bark and no buy. I don’t think there they can come out and say they’re going to ban fracking. They’re going to shut down oil and gas. And it’s not going to happen. It’s it’s it’s it’s just not I have a there’s too much externalities that that they know would happen. And it’s just to can’t people I mean we’re going to we. You know, the Joe Biden in 2020 said he was going to get rid of, you know, he was going to go to Medicare for all. And then guess what? We haven’t heard a peep out of him for Medicare for all. Well, people talk and they they swing way far. You know, you used to be where you you went you went in the nomination. You went far to one side. Then for the general election, you came back into the middle. No, no, no. You actually almost like come to the middle in the primaries and then go extremely far the other way during the general to make sure that you get your whole constituency. It’s kind of crazy, right? [00:10:33][55.3]
Stuart Turley: [00:10:33] Here’s the bottom line in this article. Is the person that was asking this question said back in the day, I would just vote Democrat right down the ticket. Now today I won’t. So the people are starting to think and go, wait a minute, if you ban fracking, I’m not going to have any food and see eat food. I agree. Let’s go to Ukraine and Russia. Plan to keep gas flowing amid fighting. Michael, you and I talked about a little about this. Russia and Ukraine are fighting right in the middle of a key gas field and interconnects going on. But this is important. This article really came out from Bloomberg and said both sides have no intention of halting flows. View of the Souda gas intake station in the Kurdish region, with knowledge of the matter said, asking not to be identified because they may getting beat up. The biggest incursion is right there and there where we intend to continue to provide gas transportation services within the framework of the agreement they’re wanting, delivered that agreement and here’s why I did not know this. But there Ukraine is wanting to use their system as gas storage for the EU. After this, after they stopped transporting the the Russian gas. [00:11:45][71.9]
Michael Tanner: [00:11:46] Yeah. I mean it’s I think one it’s kind of scary that they’re now attacking Russia in, you know, Russia’s internationally recognized Russian territory. Now generally I don’t care. I mean, Russia did attack Ukraine, which was internationally recognizes Ukraine, not Russia. So in in, in in my mind. Yeah. Great. Go attack Russia. Problem is they’re doing with our weapons which is scary. But that’s a that’s a conversation for a whole nother topic. I mean, obviously again, if Russia and Ukraine are at war with each other and they’re still going to keep gas flows, that goes in. So again, you think here they’re going to shut off fracking because Republicans and Democrats can’t get no, no. If Russia and Ukraine can figure out how to keep gas flowing, we’ll figure out how not to ban fracking. Trust me. But I think it’s just an all out, you know, it’s the saga continues. [00:12:33][47.2]
Stuart Turley: [00:12:34] It is and and and fortunately money talks and people want to understand who pays the bills. Let’s go to the true cost of the Biden harris bet to electrify EV electric vehicles. Two months into his presidency, Joe Biden announced $2 trillion infrastructure plan that included 174 billion in grants, subsidies and other payouts to encourage Americans to switch to battery electric Beavs BEVs emphasis and links added. Billions and billions have been poured into what increasingly fall short or convince buyers to switch. I think this is really amazing. 50% of Tesla owners say they will buy another Tesla, but the numbers like 30% of regular EV buyers are buying another EV. [00:13:21][47.4]
Michael Tanner: [00:13:22] Well, I mean, I mean, yeah, people want to buy Tesla because there’s actually some value to it other than just a bad EV. You know what I mean? [00:13:28][6.8]
Michael Tanner: [00:14:02] I mean, we’ve we’ve dated for years. [00:14:03][1.1]
Stuart Turley: [00:14:04] Yeah. Hey, let’s go build this hybrid, buddy. [00:14:06][1.7]
Michael Tanner: [00:14:06] Yeah, we’ll go build this a hybrid tanker, but all right, we’ll go ahead and jump over and talk about, the oil and gas finance markets. But before we do that, guys, we got to pay the bills around here. As always, thanks for checking us out here on the world’s greatest website. www.energybeat.com the best place for all your energy and oil and gas news during the team. Do a tremendous job making sure that website stays up to speed. Everything you need to know to be the tip of the spear when it comes to the energy and the oil and gas business. Go ahead and hit the description below for all links to the timestamps links to the articles that we cover. You can also hit us up on Substack. The Energy News. Beat that subject commentary. You can hear the full Elon Musk Donald Trump. Transcript. You can also check out this awesome project that we’re partnering up with our friends over at Pecos Country operating The Crude Truth. You may know him as Rey Trevino III. We just know him as our we’ve got an awesome oil and gas project. If you’ve. Ever wanted to get in on the ground floor of investing in oil and gas. Please give us a call. You can hit the link in the description below for to sign up, and we will get you both information and get on a call and talk everything. Investing in oil and gas. It’s an awesome opportunity. We love tax deductions. Do we love tax deductions? Tell you that much? Yes. [00:15:19][72.7]
Michael Tanner: [00:15:19] But let’s go ahead and jump in to the markets guys I mean markets kind of ripped today 1.9 percentage points for the S&P 500 Nasdaq up 2.5 percentage point two. And ten year yields didn’t hold great. Two year yields down two percentage points 1010 years. Yields down 1.5 percentage points. We did see two key inflation numbers drop. A producer price index only increased about 0.1 percentage points. So there’s still some inflation. It’s just slowing down a little bit. So obviously that’s encouraged. You know it is there’s you know we’ll see. You know as you listen to this we will see a the producer price index the updated one drop. That 0.1 percentage points was actually for last year there think or last month they’re thinking it’ll be about 0.2 this month as well which is which is great. Trying to think what else we saw today just in the overall market. You know, really what what drove overall markets is the fact that Starbucks, which is a large part of the S&P 500 higher, Chipotle CEO and their stock’s up 25 percentage points. I mean it goes to tell you how you know we talk about good management good numbers. It shows you how crazy it is. You know from a you know how much a good CEO is worth to a public company. You know, whatever they’re paying him. He’s underpaid because that stock, that 25% increase in their stock price is worth a lot more than the salary they’re taking. So hopefully I as a big Chipotle fan myself, last thing I’ll say is I hope their breeders get bigger. And as a Starbucks fan, I hope their coffee doesn’t get smaller as the, you know, the big beef with with Chipotle, even though they’ve had a crazy three year run or any five year run since he took over in 2018. Right. The breeders have gotten smaller. So I saw this funny. There are a lot of good memes out there, but we’ll leave it at that other top line numbers, guys. We got dollar index was down about a half a percentage point. Bitcoin up 2.2 percentage points just above $60,000. Crude oil actually dropped about two percentage point 7835. As we record this at about 330 here in the afternoon on the 13th. Brant oil fairly flat, only up about basically flat 8122 natural gas after being up big today over $2 and at $0.24 drop now $2.15. So overall down about 1.3 percentage points today. Our top ENP overall select contract was down about one one percentage points 136 87. So overall stocks in oil and gas not doing great. You know to kind of kind of preview prices here Stewart we did see you know we’re seeing a lot of volatility in oil I mean and then and then a lot of it’s coming back to other concerns other than supply and demand. I think people have have kind of zeroed in on supply. And demand are fairly tight through the through the end of the year. And really it all comes down to what’s going on in the Middle East. What are you hearing? Because, you know, on on Sunday night, Monday night, you know, we are going to war now. Things have calmed down a little bit. And what do you see? We know the Abraham Lincoln, the USS Abraham Lincoln carrier strike group is on its way over there right now. What are you. What are you seeing? [00:18:20][180.6]
Stuart Turley: [00:18:20] I’m a little confused. Everybody was saying Iran was about to strike, and then I heard everybody was. Iran was going to lob a nuke in the desert to let and then come out and say that. And then everyone was saying that Lebanon was going to lob at least several thousand rockets to try to break the the Iron Dome. I don’t know, I am thrilled out of my mind if they don’t throw any rockets around anywhere. But on the same token, it’s kind of like everybody’s saber rattling right now and there, right now that everybody’s waiting to kind of go, when is the strike going to hit you take a look at the amount of U.S. military men that are in there. It’s just that we are at currently 8000 more in Centcom. There’s 40,000 American soldiers are now under the command of Centcom in the Middle East. That’s up 8000 troops right now. [00:19:11][50.8]
Michael Tanner: [00:19:11] Yeah. I mean, it’s it’s it’s not good. You know, I saw today that the rush also might, you know, my incorporated draft. So I mean it’s it’s the world is getting in a very tenuous place. We hope nothing crazy happens. But, you know, really it’s the geopolitical mess right now that’s driving prices one way or the other. Last thing I saw Stu Chevron they and they announced today they’ve started production at anchor at their anchor facility with some industry leading deepwater technology. This is pretty crazy stew this anchor production that they have over what’s field. What field is it in? They’ve got it. Well I got to find it down here. It’s in there I forget what what field that is out there. I’m not as familiar with some of these offshore fields. Where is it? Blah blah blah blah blah. It’s in here somewhere or the Green Canyon area. So that’s deep, deep offshore. I mean, here’s some of the numbers, dude. You’ve got. 34,000ft below sea level, 20,000 sea surface surface pressure. And you’re talking about 5000ft of water between you or seawater between you and the floor. So you’re talking in unbelievable distance here. This is their sixth operated facility producing or this is, you know, this floating production unit that they’ve rolled out, they’re officially can do about 75,000 gross barrels of oil per day, about 28,000,000 cubic feet of natural gas per day. This anchor development is going to consist of about seven subsea wells that tie into that FPU. It’s about 140 miles off the coast of Louisiana, again in depths of about 5000ft of water. You know, that could be up to 440 million of Boe available there. Pretty crazy. They own about 62% of this project, with total owning the other 37%. So deep waters back, baby. [00:20:54][103.0]
Stuart Turley: [00:20:55] Got a lot more. [00:20:55][0.4]
Michael Tanner: [00:20:56] Time to go drill deep water. It’s when you’ve got prices where they are now. It’s it’s really all it is. So pretty crazy. You know, maybe we try to get in on some deepwater development. So maybe Newsbeat goes ghost drills in our own deepwater. Well, imagine that. [00:21:09][12.9]
Stuart Turley: [00:21:09] I wouldn’t mind having an offshore rig by myself. [00:21:11][2.1]
Michael Tanner: [00:21:12] Yeah, you you would you be the one person in the country that would like that? Nobody could bother you. [00:21:16][4.4]
Stuart Turley: [00:21:17] And leave me alone. [00:21:18][1.2]
Michael Tanner: [00:21:18] When a hurricane shows up. So. All right. What are we forgetting, Stu? [00:21:21][2.7]
Stuart Turley: [00:21:22] Oh, no. Just buckle up. We’re going to have a lot of fun. [00:21:24][2.2]
Michael Tanner: [00:21:24] Yeah, it’s it’s it’s going to be a pretty big I, I do want to say, as we record this things API crude oil inventories just dropped 5.2 million. Barrel draw is the crude oil API guesstimate you’ll hear at about 1030 or 930. Excuse me East Central Standard Time. The day you listen to this, on Wednesday the 14th, you’ll hear exactly what the EIA is predicting. But man could be a big draw. We might see a boom for prices. Price already spiking QE2. We already seen about a 45 cent increase in in in in spot oil prices. So. Well hey maybe there’s less oil out there we think who knows. There’s plenty. So all right well with that guys we’ll let you get out of here. Get back to work. We appreciate you checking us out here on the World’s Greatest podcast. I check us out www. Energy news.com for Stuart Turley and Michael Tanner. We’ll see you tomorrow, folks. [00:21:24][0.0][1249.5]
