Daily Standup Top Stories
Italy’s central bank backs helping poorer countries fund energy transition
ROME, Sept 16 (Reuters) – Italy’s Central Bank governor Fabio Panetta on Monday threw his weight behind a plan to help poorer countries reduce their carbon emissions, saying it would ultimately reduce the overall cost […]
LNG pipeline fire threatens homes, Houston-area neighborhood evacuated
Firefighters are battling a massive pipeline fire in suburban Houston on Monday. The fire sparked grass fires and burned power poles while threatening several homes. A giant plume of fire shot high into the air, […]
U.S. Natural Gas Power Is Booming Thanks to AI
The AI boom is driving a significant increase in demand for electricity in the United States. Natural gas-fired power generation is on the rise to meet this increased demand. The surge in natural gas use […]
Canada and Mexico Boost Competition for U.S. LNG Exports to Asia
The U.S. North American neighbors are emerging as the latest competitors of the United States to ship LNG to Asia, the world’s biggest and most important LNG-importing region. While U.S. LNG development has suffered a […]
Highlights of the Podcast
00:00 – Intro
01:14 – Italy’s central bank backs helping poorer countries fund energy transition
03:33 – LNG pipeline fire threatens homes, Houston-area neighborhood evacuated
04:56 – U.S. Natural Gas Power Is Booming Thanks to AI
06:43 – Canada and Mexico Boost Competition for U.S. LNG Exports to Asia
09:44 – Markets Update
13:44 – Outro
Follow Stuart On LinkedIn and Twitter
Follow Michael On LinkedIn and Twitter
– Get in Contact With The Show –
Video Transcription edited for grammar. We disavow any errors unless they make us look better or smarter.
Michael Tanner: [00:00:10] Welcome in to the Tuesday, September 17th, 2024, edition of the Daily Energy News. Beat Stand Up. Here are today’s top headlines. First up, Italy’s central bank backs helping poorer countries fund energy transition. A tale as old as time. We’ll see how that works out for them. Next up, LNG pipeline fire threatens home in the Houston area. And a neighborhood was evacuated. Yeah, yeah, yeah, yeah, yeah. Not good. Next up, U.S. natural gas power is booming. Thanks to a I checked. Got to love it. Next up, Canada and Mexico boost competition for U.S. LNG exports to Asia Stu. Then possibly I will cover what happened in the overall oil and gas markets. And we’ll talk a little bit about the Fed rate decision that is coming up tomorrow or Wednesday, September 18th. As you listen to this. We will talk about all of that when a bag of chips, guys, as always. I’m Michael Tanner, joined by Stuart Turley. Where do you want to begin? [00:01:13][63.2]
Stuart Turley: [00:01:14] Okay, let’s start with our buddies over in Italy. Italy’s central bank helps poorer countries fund energy transition. Bull hockey. I’m sorry, I just had to do that one. I love that in Animal House and it is absolutely applicable here. Financing transition projects in emerging market and developing economies. Ease, Michael. Just for those uneducated guys like me can be twice as expensive in advanced economies, Panetta told AG seven international agency IAEA conference in Rome. The resources would be more than offset the economic damage avoided from the climate change would suffer. This is bullcrap. They are missing the boat. Why don’t we export the West’s great technology of clean coal, burning natural gas and reduce emissions and teach there and then make money with the poorer countries instead of making money on the poorer country. [00:02:20][66.8]
Michael Tanner: [00:02:21] I look at it this way. This is a basically here’s the thing. You’re not going to get economic energy output from building this stuff. Okay. So hopefully because this money is just going to be get distributed to companies to build the infrastructure, Hopefully those companies are based in these poor countries. They’re not showing. What will most likely happen is large multinational companies will come in, they’ll bring in multinational workers, and none of that money will actually flow into the country other than they will be stuck with this horrible, higher cost energy when they should have probably just built natural gas. Even if natural gas, multi conglomerates come in and build a natural gas infrastructure, at least you end up with cheaper power, whereas this you’re going to end up with higher power and no jobs. That’s the I mean, I’m not against just injecting money into a poorer economy. Might as well. I mean, there could be worse things, but I’m down to give you. No, but. [00:03:20][59.3]
Stuart Turley: [00:03:21] I would say there’s. [00:03:22][0.9]
Michael Tanner: [00:03:22] A great way to do it. [00:03:23][0.8]
Stuart Turley: [00:03:23] No, this is and this is a typical deal that is going on with the West to the poorer countries. It is ludicrous and the wrong way to do it. So let’s go to this next story here. LNG pipeline threatens homes in a Houston area neighborhood. Evacuated. Holy smokes, Batman. Michael. The fire began at 855 in La Porte, located about 25 miles south of Houston. And at the time we recorded this, there’s about 4000 people. I looked down the power map there and you can see on the power map that it’s in that little lower left hand corner of the Texas border area. And some people I noticed were saying that this was started by illegals. And I’m like, you’re going to blame illegals for everything now. So I’m like, you got to be kidding me. An email that officials have ordered the residents out, Please avoid the area anyway. You never know how it started, but I just our prayers go out to everybody there. [00:04:23][60.2]
Michael Tanner: [00:04:23] Yeah, I know. It’s it’s not good energy transfer. As we all recall, it is the company that’s suing Greenpeace for their role in the Dakota Access pipeline. Obviously, there’s nothing to do with that. I’d like to point that out. Not good, though. We hope everybody is safe. It’s, you know. [00:04:37][13.6]
Stuart Turley: [00:04:37] Pipelines. [00:04:37][0.0]
Michael Tanner: [00:04:38] Always talk. Pipelines are the safest ways to transport materials. They are. With the caveat of when things go wrong, it go really wrong. And so that and. [00:04:47][9.2]
Stuart Turley: [00:04:47] And I’m going to I’m going to yeah, I’m going to be honest with you. Pipelines are notoriously safe until terrorism gets in. So anyway, let’s go to the next story here. U.S. natural gas power is booming thanks to a I noticed the pun on these story line near my home. Booming. Yeah. The boom is driving a significant. An increase in demand for electricity in the United States. Michael, did you have that on your bingo card this morning? [00:05:14][26.6]
Michael Tanner: [00:05:15] No, no, no, I did not. [00:05:16][1.0]
Stuart Turley: [00:05:16] During the first half of 2020 for electricity generating firms unveiled plans for the new gas powered capacity to equal all capacity announced in 2020. According to the data from this year. A club cited by Bloomberg. Don’t you know the Sierra Club’s heads exploding? Speaking of exploding, they are so unhappy that all these natural gas plants are going in. [00:05:41][24.8]
Michael Tanner: [00:05:41] Yeah, no, I mean, I think that’s you know, if if you’re Ekiti, if you’re a natural gas provider, this will probably help you. I also you know, we look at Waha today and, you know, the Matterhorn Pipeline is coming online, which means there’s just even more gas to stuff in there. Again, a lot of this stuff isn’t necessarily, you know, our are these data centers exactly where natural gas is? Yeah, a lot of them maybe aren’t Appalachia around the East Coast. But I think it becomes again, the issue in my opinion, is not the power. I think it’s the water in the cooling. They’re going to become an issue with this now. Some of the cooling can be done internally, but we talked about that a while ago. The amount of water that’s being used for these data centers is actually incredible. I think that’s the bigger story here. [00:06:28][47.1]
Stuart Turley: [00:06:29] I think it’s a hidden story right now. This year, natural gas is expected. Michael, are you ready for this? Around 42% of America’s electricity. Holy smokes. That’s a lot of natural gas. [00:06:41][11.9]
Michael Tanner: [00:06:41] Maybe that’s a lot. All right. What’s next? [00:06:43][1.5]
Stuart Turley: [00:06:43] Okay, let’s go to Canada and Mexico. Boost competition for LNG for U.S. exports to Asia. This should be pretty cool. Canada could potentially supply 36.2 million tons of LNG per year by 2040, and Mexico another 36.7 million tons. That’s a lot of LNG. [00:07:09][26.2]
Michael Tanner: [00:07:10] That’s a large part of LNG. I think they’re getting on I think they’re getting in on that game relatively because we’ve seen now the LNG export facility ban get lifted and there now there’s a global competition. It’s the great part about allowing us to participate in the global market is allows us to take a lot of the natural gas that’s stored up here and shipped but elsewhere. Now, from a security standpoint, I like all the natural gas here because we need cheap energy here. It hurts those people out in west, you know, those oil and gas producers who who are selling negative, you know, negative differentials to Waha. But joke’s on you. [00:07:45][34.3]
Stuart Turley: [00:07:45] Yeah, right. I’ll tell you, though, and I want to just talk to any Sierra Club. If you’re a Sierra Club out there and you’re head still not exploded by having more LNG exporting around the world, come talk to us. We want you on a podcast. We’ll be nice to hear and you ask some real questions. Do you want the lower pollution around the world? Then let the U.S. export LNG and put an end to coal plants where they have an import facility? [00:08:13][28.1]
Michael Tanner: [00:08:14] I know, absolutely. I completely agree with you. You know, if and you know specifically with Canada and Mexico trying to boost their output, I mean, this is this would be great for Mexico, to be honest with you. Mexico needs to find ways to increase revenue. And this would be a great, great way to do that. [00:08:31][16.7]
Stuart Turley: [00:08:31] Right now, their number one export is human trafficking into the U.S.. Yeah, that’s right. I’m kind of disgusted at this point. It was funny, though. [00:08:39][8.5]
Michael Tanner: [00:08:40] You’re hilarious, Stu. You’re hilarious. Follow him on X-Files. I guess that’s that’s that’s the a perfect place to advertise your X account. What do you got out. [00:08:48][8.3]
Stuart Turley: [00:08:48] After user. [00:08:49][0.3]
Michael Tanner: [00:08:50] Brought it to me after that and he took my guy. [00:08:52][2.0]
Stuart Turley: [00:08:52] In like manner that beat his head on a desk. I have made my day. [00:08:56][4.4]
Michael Tanner: [00:08:57] But before we do that, we probably better pay the bills around here before we get shut down. We appreciate everybody checking us out on the world’s greatest website. Energy news beat.com. All the news and analysis that you just heard is brought to you by that website. Doing the team do a tremendous job making sure that website stays up to speed. Everything you need to know to be at the tip of the spear when it comes to the energy in the oil and gas business. Go ahead and hit that description below for all the links, timestamps, links to the articles. You can also hit us up the energy news beat that substack.com and you can also check out invest in oil dot Energy News Beat.com For access to our Working Interest project. We are partnering up with our friends over at Pecos Country operating and Rey Trevino. So check that out that’s invest in oil dot energy newsbeat.com. [00:09:42][44.9]
Michael Tanner: [00:09:44] And pretty please slow down the markets Stu I Mean overall markets had had a decent day S&P 500 was basically flat. Tech stocks did not do well not about a half a percentage point. A two year yields down about a half a percentage point ten year yield down about 8/10 of a percentage point. Dollar index tumbled about three quarters or 3/10 of a percentage point. Bitcoin down about two percentage points, $57,000. Crude oil jumped about 2 to 2 point. Five percentage points. Up above 70, 70, 37. Brant oil basically flat, only up about a 10th of a percentage point up to 7202. Natural gas up 3.3 percentage points, $3.82. And we saw that XLP contract up a little less than a percentage up to 129 and $0.62. I mean, I mean, the big thing, I think what we’re seeing with prices is there is still some residual effects hanging out from Hurricane Francine. Currently, as of noon this morning, about a fifth of all crude oil production at about 28% of all natural gas production out of the Gulf of Mexico was still shut in. So still have some interesting effects there. Tomorrow, as you guys listen to this, the U.S. Fed will be meeting and we will hear a decision on whether or not rate cuts are coming. The consensus is 50 basis points, which would obviously be a boost to the U.S. economy, which could increase demand a little bit. Now, on the blank side, if if they do increase or do cut rates by 50 basis points, that is a sign that they don’t feel like the economy is doing that great relative to where it could be. The only reason you cut rates is because you need to stimulate the economy a little more. If if if the economy was doing great and they interest rates were at this level, you’d like to think they would keep them there now a little bit, a little bit of there as to inflation. So I think there’s a bunch of different, you know, factors that will weigh in to what Jerome Powell and the Fed will do if it’s a 25 basis point cut. Who knows what happen? You know, obviously, if you meet our good friends over at Routers, play on words there, but, you know, they’re still kind of shouting, touting some of the stuff coming out of China. Doesn’t look great. Did see their oil refinery output fell for a fifth month, mainly as a sign of weak fuel demand. And, you know, mainly a lot of that then turns into decent export margins falling, which, you know, is not great. We also did see over in China that industrial outgrowth has slowed, which is convenient to a five month low in August, while retail sales and new home prices also weakened further. So a lot of mixed data coming out of China. I think a lot of people are weighing that. You know, did you kind of wrap it up? I think the big thing right now, that’s that people are waiting for specifically in the overall energy economy is what the Fed will do. Obviously, lowering interest rates is going to open up, lending a little bit, could get people back into some of these larger capital project that depend a lot on lending in the banking institutions where if they need to for if they do, if, you know, rates get lowered. Capital still needs to find a home and it’s going to go farther out on that yield curve, which could open up some of these more energy projects to me. What do you think the Fed’s going to do on Wednesday? [00:12:42][178.3]
Stuart Turley: [00:12:43] That’s a tough call from the couple points. If they admit, like you alluded to at the beginning, if they admit and they lower it, that the economy’s not good, that’s not good for Camilla Obama, Camilla, It’s not good for her and it’s not good for the announcement that, by the way, our economy is not that good. So you sit back and kind of go, whoa, wait a minute. And we’re going to drag it out even more. Part of the problem is the global markets are facing the same thing. So it’s not just the US economy. I think there are other economies that are going to be worse off than the US. I think. [00:13:17][34.0]
Michael Tanner: [00:13:17] They’ll cut. Yeah, it’s it’ll be interesting to see what happens. I think it’ll be interesting to see what they’re, you know, we’re going to get a lot of Fed speak out of there, but I think it’ll be interesting to see what their underlying the obviously the decision that they make. But then the speech that Jerome Powell gives for kind of rationalizing what they do, I think that will be telling and whether or not he says more rates are coming, whether this is a one off thing, I think it’ll be it’ll be very interesting, but it’s really all I got. Stu Everything else, you know, the oil and gas here beside somewhat chill. But I do think that it’s I do think that it’s a an interesting and interesting market out there. But, you know, I think we’re going to kind of just wrap it up here unless you don’t got anything else for people. [00:13:54][36.7]
Stuart Turley: [00:13:54] I know. Just keep your head on this. Well, okay. [00:13:56][1.9]
Michael Tanner: [00:13:57] We will we will do that. So. All right, guys, we’ll let you get out of here. Thanks for checking us out here on the World’s greatest podcast. Energy News Beat Podcast for Stuart Turley, I’m Michael Tanner. See you tomorrow folks. [00:13:57][0.0][811.4]
– Get in Contact With The Show –
Be the first to comment