PowerGab Ep126 – Net Zero = High Gas Prices

This was an absolute blast, and I am looking forward to having Amy Cooke and the Energy Bad Boys on the Energy News Beat Podcast. Amy does a great job wrangling tPowerGab Podcast: Energy Policy, Grid Reliability, and the Cost of Net Zero

In this episode of PowerGab, host Amy Cooke sits down with Stu Turley, president and CEO of the Sandstone Group and host of the popular Energy Newsbeat podcast, to explore the critical energy challenges facing America—and Colorado specifically.

From the puzzling disconnect between crude oil prices and gasoline costs to the cascading effects of net zero policies on grid stability, the conversation reveals how global energy disruptions, aging refinery infrastructure, and aggressive decarbonization mandates are creating a perfect storm of energy scarcity, soaring costs, and blackout risks. Turley and Cooke argue that while renewable energy has a role to play, the wholesale abandonment of reliable baseload power in pursuit of net zero targets is driving deindustrialization, pushing out smaller energy producers, and leaving Americans vulnerable to rolling blackouts—making home energy security and backup power systems no longer optional, but essential.

Amy mentions Doomberg and quotes from his Substack, and we are gearing up for the next Doomberg interview with Steven Wang, CEO of Jackery Americas. We will keep you posted on that episode.

PowerGab Ep126 - Net Zero = High Gas Prices

Watch this video on YouTube.

For Ann and our subscribers who are facing local government regulations, Amy’s interview is spot on. She does a fantastic job hosting! She asks the right questions!

Key topics covered on this one.

1. Oil Prices vs. Gasoline Prices Disconnect

The hosts explore why crude oil prices are around $85/barrel while gasoline costs $4.30+ per gallon in Colorado. The explanation centers on a global refinery capacity crisis—refineries worldwide have been damaged (Ukraine, Saudi Arabia, Iran), creating a shortage of refined products. The U.S. has only 128 refineries (the last major one built in 1977), and California is closing 6 of its 7 refineries due to net zero policies. This drives up refining costs dramatically—$5 per barrel at Gulf Coast refineries vs. $15.25 at California/Colorado refineries with net zero regulations.

2. Net Zero Policies = Deindustrialization

A central theme is that net zero mandates are causing economic damage, not environmental benefit. Examples cited:

Germany destroyed nuclear and coal plants, now energy-dependent
California and Colorado are following suit, creating “energy islands”
Blue states show 38% higher energy costs than other regions
Regulatory burden is pushing out mid-sized oil producers; only large companies can absorb the costs

3. Refinery Utilization Crisis

U.S. refineries are running at 96% capacity—dangerously high. Scheduled maintenance in September/October will reduce output further, pushing gasoline prices higher. Only two new refineries are being built in the U.S. (one coming online in Texas in 2027).

4. Global Energy Instability

Drone warfare and geopolitical conflicts are disrupting energy supplies:

Russia and Ukraine refineries damaged; Russia now imports fuel
Iran hit Qatar’s LNG exports, affecting European natural gas
Saudi refineries hit; losing refinery capacity
Tanker insurance costs up $1 million per trip due to wartime risks

5. Grid Reliability & Data Centers

Data centers are exposing grid vulnerabilities caused by bad energy policy
Texas paused 1,800 data center requests; only 28% would use natural gas
Recent blackout cascaded across 5 states when a data center went offline
Rolling blackouts predicted as the norm due to over-reliance on intermittent renewables (wind/solar)

6. Colorado’s Energy Crisis

Production down 20%+ due to regulatory burden
Only large oil companies remain; smaller developers pushed out
Colorado’s regulatory framework (KOGA) is described as “mind-numbingly stupid”
The state is shutting down coal plants while becoming more grid-dependent

7. Physics & Grid Reality

A recurring theme: Physics doesn’t care about political ideology. The grid requires:

Synchronous balance within nanoseconds (60 Hz)
Fiscal responsibility
Reliable baseload power (not just wind/solar at grid edges)
Backup power for homes and businesses

Bottom line: The hosts argue that net zero policies are creating energy scarcity, higher costs, and grid instability—and recommend citizens install solar, batteries, and backup generators because blackouts are coming.

I also mentioned a food shortage, and it is rolling in fast. Especially an edible food shortage. What I mean is that I just learned there are flour tortillas made with canned cream in a paste, then cooked. This is nuts.

Prepare your homes for any danger; have a go-bag in case climate change- I mean arsonists- show up and burn remote areas; harden your homes with energy, water, and medicines of all types. Your normal medicines, and look at old home remedies. Also, don’t forget the fuel stabilizers, baking soda, and borax. I will have more articles on those in the future.

Thank you, Amy, for having me on the Power Gab podcast, and look forward to having you on the Energy News Beat podcast once for your expertise, and another time with the Energy Bad Boys.

Amy’s Power Gab YouTube Channel: We Recommend Subscribing.

Thanks to all of our subscribers, paid subscribers, and sponsors.

We have lots rolling through production right now!

A shout-out to Steve Reese and the Reese Energy Consulting group for sponsoring the Podcast https://reeseenergyconsulting.com/

Data2 if you have any business systems, can you trust A? Well, they have the patent on validation. . https://data2.zoholandingpage.com/energy

And we have WellDatabase rolling, and we use their tools for the Energy News Beat weekly Rig Reports: https://welldatabase.com/