Daily Standup Top Stories
Shell to build carbon capture and storage projects in Canada
Shell Canada Products, a subsidiary of Shell plc, announced the Final Investment Decision (FID) for Polaris, a carbon capture project at the Shell Energy and Chemicals Park, Scotford in Alberta, Canada. Polaris is designed to capture approximately […]
US Treasury imposes sanctions on Iranian shadow banking network laundering oil money
The US Treasury Department on June 25 imposed sanctions on parts of a shadow banking network that Iran uses to launder billions in oil proceeds used to provide weapons to Russia and regional proxy groups […]
Dutch and French terminals remain top destinations for US LNG supplies
Dutch and French LNG import terminals remained the top destinations for US liquefied natural gas supplies in April, as European terminals continue to receive the majority of US LNG volumes, according to the Department of Energy’s […]
Saudi Aramco Set to Buy 25% in U.S. LNG Project
Saudi Arabia’s oil giant Aramco has signed a non-binding agreement to buy LNG from Sempra’s Port Arthur LNG project and potentially acquire 25% in the project’s Phase 2, the U.S. and Saudi firms said on Wednesday. Under […]
Quantum Capital to acquire Caerus Oil and Gas in $1.8bn deal
US-based private equity company Quantum Capital Group has reached an agreement to purchase Caerus Oil and Gas, valuing the Rocky Mountain energy company at $1.8bn, reported Bloomberg, citing sources. The deal involves Quantum Capital buying Caerus […]
Highlights of the Podcast
00:00 – Intro
01:22 – Shell to build carbon capture and storage projects in Canada
03:35 – US Treasury imposes sanctions on Iranian shadow banking network laundering oil money
05:07 – Dutch and French terminals remain top destinations for US LNG supplies
07:37 – Saudi Aramco Set to Buy 25% in U.S. LNG Project
10:20 – Markets Update
11:41 – Quantum Capital to acquire Caerus Oil and Gas in $1.8bn deal
14:21 – 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 Thursday, June 27th, 2024 edition of the Daily Energy News Beat stand up. Here are today’s top headlines. First up, shell to build carbon capture and storage projects in Canada. A tale as old as time. Next up, U.S. Treasury imposes new sanctions on Iranian shadow banking network laundering oil money. Tisk tisk task. Next up Dutch and French terminals remain top destinations for U.S. LNG supplies. And then finally, Saudi Aramco said to buy 25% in a US LNG projects to within Taslima. I will quickly cover what happened in the oil and gas markets today, covering a really fascinating crude oil inventory rise didn’t quite necessarily have the effect on prices as we thought. And then we will quickly cover Quantum Capital Group going ahead and buying kerosene, oil and gas in a $1.8 billion deal in a rare secondary market exchange. So super fascinating. We will cover all that and a bag of chips. Guys, as always, I am Michael Tanner, joined by Stuart Turley. Where do you want to begin? [00:01:21][67.3]
Stuart Turley: [00:01:22] Hey, let’s get rolling here with our buddies there in shell to build carbon capture and storage projects in Canada. You know, this just amazes me. Polaris is designed to capture approximately 650,000 tons of CO2 annually from the shell owned Scotford refinery and chemicals complex. I think it’s actually pretty cool that they’re trying to take care of some pollution. This is a quote out of it. Carbon capture and storage is a key technology to achieve the Paris climate accord, said Holbert. Van Gogh, Shell’s downstream renewable and energy solutions director. They will build onsite on the success of the Quest carbon Capture and Storage, which is CC, s not CCU as utilization, CCU as is utilization and storage facility at Scotford, which is safely captured and stored and more than 9 million tons of CO2. I’m very happy for him, but let’s have a moment of silence for this project on the impact that it’s going to have on the world. Okay, thank you very much. This will mean absolutely nothing in the way of ESG. All this is, is for either a tax credits or virtue signaling, because there is nothing that this amount of carbon coming out will do anything. [00:02:46][83.4]
Michael Tanner: [00:02:47] Yeah. I mean, I’m I’m right there with you. A lot of the carbon capture and sequestration is a little bit of hand-waving. You know, pump some carbon over here, get some credits over here, but don’t look over on the backside because we’re, you know, just now producing more oil and gas. So, you know, it’s a tale as old as time, as I mentioned in the open in Canada and been doing this and, and been you know, I mean, this technically since 2015, they’ve been theoretically sequestration. See, you know, sequestering this stuff over 9 million tons of CO2. But they’re telling us climate change is getting worse, so it’s not working. [00:03:22][35.1]
Stuart Turley: [00:03:23] Climb. There’s nothing that we can do. We talked about this. You know, on this show before, there’s nothing that we can do except pollute less. And, you know, whether or not CO2 is actually a pollutant is up to it. Let’s go to our next one here, buddy. This one. Our buddies up there in Iran. U.S. Treasury imposes sanctions on Iranian shadow banking network laundering oil money. Holy smokes. Quote unquote. Listen to this. U.S. Treasury Department on June 25th imposed sanctions. No, no sanctions on a part of a shadow banking network that Iran uses to launder billions in oil, proceeds to provide weapons to Russia and regional proxy groups like the Houthi rebels in Yemen? You mean they finally, I’m the Biden administration is actually doing something good? Is that what I’m reading here? [00:04:17][54.4]
Michael Tanner: [00:04:18] It might be they’re going after, you know, not the Dark Fleet, but the dark, dark banks. [00:04:23][4.9]
Stuart Turley: [00:04:24] The dark bank and and sanctions impact. But this is now called if you look lower in the article, Michael, it goes shadow banking. [00:04:31][7.2]
Michael Tanner: [00:04:32] Oh but I mean shadow banking is is absolutely true. We do know that places like Iran, in which we do have massive sanctions on, they do have to somehow get around our banking laws. So it’s super interesting. Again, as you always said, sanctions don’t work. It’s going to be very interesting to see how they decide to play this one. [00:04:50][18.3]
Stuart Turley: [00:04:50] And why are they doing that now? Because poor old Janet Yellen needs to just go get a haircut. She does not. She hasn’t done anything in three and a half years. Why should she start now? That’s what I’m I’m a little wondering. Anyway, let’s go to the visit with the Dutch here. Dutch and French terminal. Remain top destinations for U.S LNG supplies. I’ll tell you this. You know our trading desk. If you go to, energy news beat.co/tradingdesk/ you’ll be able to. If you want to buy and sell crude oil, let us know. But this is pretty important. In French LNG, import terminals remain the top destination for U.S., LNG gas supplies in April, as European terminals continue to receive the majority of the U.S. LNG volumes, according to the Department of Energy’s newest LNG monthly report. This is some amazing numbers. 47.5 BCF of LNG to the Netherlands in April. 37.7 BCF to France. 22 BCF to Japan. 21.5 BCF to Germany. And and then look at this one 20.8 BCF. Dude. India. Michael, what do you think the great American, oil and gas producers could do if we had our hands untied? [00:06:16][85.9]
Michael Tanner: [00:06:17] Well, we could produce a lot. Now, as we covered the story we covered yesterday would matter because we can’t move any of this LNG via the pipeline grid. So it may not matter until you fix the pipeline issue, which is a whole nother can of worms. But but it does show you that, you know, the United States has a has the capacity to send out a lot of LNG if we decide and this this ban on new LNG export facilities that Biden has put in place is, is is is pretty crazy. I think that weaves into your next one, though. It looks like international companies are coming in hot now and trying to fund already approved LNG export projects. Exactly. [00:06:56][39.1]
Stuart Turley: [00:06:58] And, before we hop over to that big one, U.S. terminal shipped 105 LNG cargoes in April, down from 119. So, I mean, you sit back and think, that’s still a lot of LNG. And I want to say this about the climate alarmist out there in the world. If you have if you can pick up the phone and even talk to President Biden or Podesta or anybody else in the white House, let them know that the more the U.S. ships LNG out to our allies, the better it is for the environment. Wow. Go figure that one out. Hey, let’s go to Saudi Aramco here. Let’s save the planet. Saudi Aramco said that by 25% in the U.S. LNG project. This is the Port Arthur LNG phase two expansion project. Michael. Under the non-binding heads of agreement, the HOA, Aramco and Sempra are set to discuss a 20 year sale and purchase agreement for the offtake of 5.0 million tons per year from the Port Arthur LNG phase two expansion. That’s impressive. [00:08:11][73.3]
Michael Tanner: [00:08:12] It is. I mean, it’s a clear playbook that we’re seeing from these international companies coming in and buying in on already approved LNG export projects because of what the Biden administration has done, banning new builds or putting on hold, permitting of new builds. So, it’s a it’s an obvious move if you’re an international company with a lot of CapEx and especially somebody like Saudi Aramco. [00:08:36][23.8]
Stuart Turley: [00:08:36] And when you take a look at TotalEnergies that has bought, enough natural gas power plants in Texas. They’ve also bought wind farms in the U.S.. So there’s still a lot to be said. And then why is, BP and shell looking at getting listed on the U.S. Stock Exchange? It’s because the windfall profits taxes are coming their way. So lots going on around the world, Michael. [00:09:03][26.8]
Michael Tanner: [00:09:04] Yeah. No. Absolutely, absolutely. There’s there’s a lot going on, and we’re, we’re staying up to speed. I’m going to jump over and cover the crazy API or. Excuse me, EIA crude oil inventory print. Before I do that, guys, as always, we got to pay the bills around here. Thanks for checking us out on the world’s greatest website. Energy news. Beat.Com The best place for all your energy and oil and gas news. Stu and 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. You can also check us out in the description below for all links to the articles and timestamps. And it will, get all the information you need to know. Check us out on Substack. You can subscribe to Tomorrow’s News today, which is a early glimpse at the stories We Are cover. As you guys probably realize, we released these every morning, Monday through Thursday, but we actually record them Sunday, through Wednesday night. So if you want an early peek at what those stories are and get tomorrow’s news today, go ahead. And sign up at the EnergyNewsBeatsubstack.com. You can also hit us up at the, dashboard.energynewsbeat.com. You know, overall markets do, you know, fairly flat today. You know we we saw two year yields flat ten year yields popped tremendously up 1.5 percentage points. Dollar index up 4/10 of a percentage point. we did see bitcoin tumble about four percentage point and then crude oil currently sitting at 8107. That’s sort of up and down after a mixed day. Mainly the big big thing that we saw was the EIA crude oil inventory. Brant, which came in at an astounding 4.9 million barrel build that comes after a pretty a tremendous difference between what we saw yesterday with only about a 400,000 barrel build via the API estimate. So crude oil, inventories not looking technically too bullish, but we did see on the demand side, we did see we are still seeing some some demand side pulls. And I think that’s what’s what’s kind of putting pressure both sides there. You know we can again we can just throw up that chart here. You can see 4.9 million barrel crude oil inventory build 3.6 of that. Yeah, via the commercial over there at Cushing and 1.3 million of that be in the SPR. We did see other, total gasoline stocks increase as well. So lots of lots of increase in. We did see total stocks. They’re down at the bottom 9.4 million barrel increase there. You know, the last thing I find interesting to do, quantum capital to acquire terrorists oil and gas in $1.8 billion deal. Two things I love private equity. Not really. I’m not a big fan of private equity. So that’s mainly a joke. But second is Colorado. Love me some Colorado and specifically love me some carries oil and gas. They go ahead and get picked up by quantum Capital. I mean, everyone kind of knew Chris was on the market a little bit. They, they’re represented and their, their investment is, is a combination of Oak Creek Capital, and shoots investment in Old Ironsides energy. What’s interesting about this deal mainly is the fact that this goes from private equity back to private equity back. It’s kind of a rare secondary market transition. Generally what you see is private equity company selling out and selling to a public company or selling out to, you know, some sort of, you know, and tapping the public equity markets mainly off the fact, you know, because the, you know, public companies are going to tend to have a little bit more capital to be able to spend. But quantum capital comes in, and swoops them up a $1.8 billion. Just to give you guys an idea, Kerry has about 4700 wells, via the Ponds Basin, which stretches, Colorado into Utah. They also have a little bit in the Uinta Basin, which is fully in, in Utah. So, you know, they also have a decent infrastructure of about 300, 3.8, 30, 800 kilometers of gas and water pipelines is as, among a bunch of different water treatment and storage facilities. Super interesting though. They’re obviously gas heavy on this one. So my, my my question really here is, is quantum playing and what quantum resources is most likely and quantum capital group is most likely. Playing is an appreciation of natural gas prices. As we record this word about $2.70, do they see three four? You know, do they see, you know, between 3 and $4? If so, they probably made a great deal, for quantum or for carries in terms of, you know, that PDP value is is probably somewhere around that. So if you’re if you’re buying at PDP strip, you’re just assuming that you’re going to, you know, you’re obviously hoping for either a price increase or, you know, you know, something extraneous to happen to help drive the value of your assets. So, you know, one reason I again, just wanted to highlight this is, is a, you know, really interesting secondary transaction, or what it’s called a secondary buyout, which means, private equity comes in and buys out a private equity investor right there. And specifically, they go ahead and buyout the whole position. Whereas Kerry’s was, owned by, Oak Tree and shoots in a combination of Old Ironsides. So super interesting there. That’s really all I got. Stew. Oh, it’s our last show for the week. What should people be worried about going into the weekend? [00:14:22][318.3]
Stuart Turley: [00:14:23] Oh, I’ll tell you what the. Let’s let’s take a listen. Today is going out. Today’s Thursday, it is going to be the, debate. And I want to ask everyone, is Biden going to get a drug test? Is because I know Trump would want a drug test. And are we going to see the same hyped up as Trump called him, juiced up Biden before the debate? I don’t know. I want that. [00:14:50][27.3]
Michael Tanner: [00:14:50] Cocktail is for both of them. They’re both on a cocktail. I want, I want that, I’ll tell you that much. [00:14:55][4.8]
Stuart Turley: [00:14:56] Yeah, whatever he’s on, I’ll take two. Yeah. So I’m not sure. [00:14:59][3.5]
Michael Tanner: [00:14:59] Maybe two might be a little heavy, but all right guys, with that enjoy the debate tonight. We’re going to let you get out of here. Get back to work. Start your day. Thanks for checking us out on the world’s greatest website. Energy news beat.com The world’s greatest podcast. You’ll hear the weekly recap on Saturday. Who’s dropping tomorrow for the podcast? [00:15:14][14.9]
Stuart Turley: [00:15:15] We have Irene Islam stopped in from Bulgaria. [00:15:17][2.3]
Michael Tanner: [00:15:18] Love us some Irene a slob. I’m so great to, great to have her. And then always we will be back in the chair on Monday. But for Stuart Turley and Michael Tanner, guys, we’ll see you tomorrow. [00:15:18][0.0][890.5]
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