Week Recap: Energy Shifts: EVs, Oil, Geopolitics

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EV Slowdown Steers the World Further Off Course From Net Zero

June 16, 2024 Stu Turley

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Video Transcription edited for grammar. We disavow any errors unless they make us look better or smarter.

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Stuart Turley: [00:00:14] Hello, everybody. Welcome to the Energy News Beat podcast. Daily Standup weekend Edition. This is the weekend summary of all of our great shows this week. It was absolutely crazy this week. The amount of news that’s going on, everything is just crazy. We had everything from, blackRock now trying to hide from, ESG and policy that they’ve helped create, to Trump going drill, baby drill. And, it is just crazy. Please like, subscribe and, sit back and enjoy the best of the shows that, the stories that the staff put together. So with that, I’ll turn it over to the staff, like, subscribe, share and enjoy your family over the great weekend. Have a good day. [00:01:01][46.3]

Stuart Turley: [00:01:02] EV Slow down steers the world further off course for net zero Bloomberg e f it’s their research group over their forecast trims its sales forecast by 6.7 million battery electric vehicles for 2026. I don’t know that trim is the right word, Michael. I think amputation sounds a little more like I’m not quite dead yet. The holy smokes, there’s some interesting things in here. And the bare back, bare back battery that’s almost like Build Back Better by Biden and have bear back battery electric vehicle forecast is not nothing there. The problem is there also is a world is awash with lithium ion batteries. Look at China, global Europe, US and South Korea. Everybody’s been piling in it. But this last one here Michael the estimates are all negative. If we take a look, Miss Producer, can you bring up the last chart? They’re lowering estimates for electric vehicle sales. Black is in the U.S., which is actually the best. Germany. Germany’s in there, and it’s getting totally tanked. Then Italy and the UK are like, oh, it’s just unbelievable. [00:02:20][78.1]

Michael Tanner: [00:02:21] Now U.S. still leads in all the in all the lower estimates. [00:02:24][3.7]

Stuart Turley: [00:02:25] Oh yeah. But now here’s the thing. Michael Ford just canceled their big deal for high dollar expenses for dealerships on the Ford’s the dealership EV line. They can’t force people dealers anymore. There’s not enough money to force them to do it. So Ford’s even backing out of forcing their dealers to go to the image? [00:02:47][22.1]

Michael Tanner: [00:02:48] Yeah, pretty pretty crazy, pretty crazy. I mean, here’s the thing. I think this is what happens with a lot of new technologies. People get really, really excited about it. They make all these crazy predictions. It was really cool what Tesla was doing. You know, they seem to have aligned people like the you know, they like the fanciness of it. I think people also forget that Tesla also has full self-driving, which is another, you know, interesting kicker in this whole thing. It’s not just that they’re an electric vehicle company. They also have a legitimate self-driving vehicle capability, which is super interesting. All these other companies seeing the rise of Tesla, kind of forgetting why Tesla rose in the first place. It wasn’t because they were an EV car. It’s because they were new. It’s because of the full self-driving. It was a little bit of Elon. It was a little bit of everything. And not just, oh, they’re EVs. Everyone’s going to drive the. That was that was very little of their explosive growth. But now what is Ford and GM do. Well they misread not misrepresent. They their team of analysts swing it miss it. Whoa. What why is Tesla doing well again right. We just we just talked about so they do they think that it’s oh it’s the EV. And they dive all in on EV. We’ve seen them completely again revise you know revise guidance downward on the number of cars. They you know what was it last year we saw. Well how much did Ford lose on EVs. [00:04:03][74.8]

Stuart Turley: [00:04:04] It was $80,000 per car. Per car. So, you know, you sit back and kind of go, nah, it’s just not going to just not going to happen. And in the article, they finally had to admit it’s just pretty funny, even the. Anyway, I still think hybrids are the way to go for a while. World’s first renewable floating LNG terminal closing in on new parameters amid strong interest. This really pretty cool, Australian headquartered integrated energy company Venice Venice Energy is holding formal talks with multiple potential partners with ties the US in Asia to secure the future of the proposed LNG import project in South Australia. World’s first floating LNG terminal, which will run on 100% renewable energy. Excuse me while I inhale. As the developer of this 300 harbor in Port Urge, Dale has moved his research. I saw that I like the idea, but it’s I don’t see it’s going to happen. [00:05:09][64.7]

Michael Tanner: [00:05:10] Well, if you read the article, what they tell you is that they. Quote unquote. This carbon free LNG facility, you talked about this three years ago. You said, guys, wait a second. Natural gas will at some point be considered carbon free. Well, it’s exactly what they’re doing here. They’re using low carbon content from LNG to replace coal. So that’s what they’re that’s how they’re going renewable is going from cold to LNG, which I applaud. But I mean, you just there’s no but it’s just it’s it’s the bait and switch that’s happening. It’s the bait and switch that’s happening. LNG will become clean because they they know they need it. [00:05:48][38.3]

Stuart Turley: [00:05:48] Oh, and it’s the article that you and I read last week as well too is it’s cheaper or less impact on the environment to ship out U.S. LNG than to have somebody use coal. [00:06:01][12.4]

Michael Tanner: [00:06:01] Yeah. Now China could care less about the environment. They want it is cheaper. Possible. But yes, it’s but it’s just funny how you called this three four years ago. Hey you know watch out. LNG is going to be green here soon. It’s the sleight of hand. It’s the shell. [00:06:15][13.8]

Stuart Turley: [00:06:16] Game. It is. And now it’s becoming green. [00:06:18][2.2]

Stuart Turley: [00:06:19] Biggest winners of Biden’s green policies are Republicans. This really kind of got me a little laughing at this one. The Inflation Reduction Act, or as Dan Bongino would call it, the reckless bill contained in the largest investment in U.S. history to throw money at woke climate. Social programs won’t work, including over 350 billion for Green New Deal initiatives. But Hudson, the head of the House Republicans committee, is one of the members in Congress. Whose district are you ready has benefited most from the climate law and massive investments in clean energy. About 12.7 billion in private investment has been announced in Hudson’s district in this district alone. So the one of them was from Toyota expanding a car battery plant that’s tripled in size and 7756 football fields, and will spur 5100 new jobs. That is nothing to sneeze at, and we need that production at home. I’m glad that it’s there. However, the vast majority of the 346 billion words of announced investments, nearly 78% has gone to Republican congressional districts, according to CNN. Wow. Analysis of data from the nonpartisan rhodium Group. And my message you just have Institute of Technology, MIT for people with stuttering problems like me, it is much more like Republican skewed in the congressional district rather than at the state level, Trevor Houser at Remote told CNN. This is amazing to me. And is it because the Democrats don’t have any cities that are supporting good business practices? So the remaining places that are open to do business are in Republican places? Well, that tells me we got to work on the Democrat blue run states and cities because they’ve run most of the manufacturing out. Here’s one Louisiana solely reliant on oil and gas extraction, has the workers and infrastructure to lead the nation in green energy transition, which will lead to good paying careers at home, Carter said in a statement. Adding his state is beneficial, greatly grand of benefiting greatly from both private and public investment in law. I’ll tell you, I love Louisiana and Louisiana, and our out there are hard work and, besides home to Tyrus and National Treasure. But you gotta have it. Big projects in Texas, in Texas is running amuck. So when you take a look at Republican places to invest your money, a Democrat bill for projects that were originally turning out to be woke and still are not what I would put money in. It’s kind of interesting. Pretty good. Pretty good. A little story there. [00:09:29][190.3]

Stuart Turley: [00:09:29] Rare earth discovery could topple China’s dominance. This one is pretty interesting. Norway is a country with, resources. Rare earth element or trees. Everybody has to have an acronym or you feel left out. These are e s is rare. Earth elements could chip away at China’s, global dominance. Well, our ambition is to deliver 10% of European demand for magnet related reas in DPR in the first phase of our operation, said CEO Alfred Stead told Newsweek said trees have many high tech applications, including the for. Electric motors, wind turbines, and precision guided missile systems. Urim and and. The other 15 types of rare earths are truly rare, but are difficult to extract and purify. That is where it’s really going to be different is if they can get to the China that produces about 60% of the trees and processes 90%. You gotta chip away at that 90% of, production in order to get that done. It’s still an unbelievable goal. I hope that they do it. And I my, target raises to 10,000 metric tons, equivalent to 30% of demand by 2045. Pretty cool. Go, Norway. Love Norway. [00:11:07][97.6]

Stuart Turley: [00:11:08] The Biden administration. Because we know it is not Joe Biden running the place, but it is the Biden administration. As reported in the Washington Examiner, President Joe Biden is prepared to release more oil from the country’s strategic oil reserves if gas increases during the summer. This is the latest plan by the Biden administration to counter higher prices at the pumps to more expensive prices on various goods due to inflation. Quote we will do everything we can to make sure the market is supplied well enough to insure as a low price as possible for American consumers, said Special President Coordinator for Global Infrastructure and Energy Security, Ammon’s. Hochstein told the Financial Times. I think that we have enough in the SPR if necessary. I’m going to disagree 100% that there’s enough in the SPR, considering what this administration is doing to the geopolitical situation around there. They’ve also canceled and they’re, doing so much more on the gasoline SPR in the East Coast. This is bad management all the way around. A few years ago, Democrats blocked President Trump from filling the strategic oil preserve at $24. So it is just absolutely unbelievable. This article, though, points out Secretary Granholm has multiple closed door meetings with CCP connected energy official raises serious questions about the level of Chinese influence on the Biden administration’s energy agenda. This is out on no wonder the administration does not like the news [00:12:56][108.1]

Stuart Turley: [00:12:58] Putin vows trade security with North Korea beyond its reach. This is a pretty good article. And it was from CNBC. It is not mentioned in this article about some other sources that I have that Moscow is talking to North Korea about pipelines. So, Miss Producer, if you could bring up the map that is in this article and you’ll be able to see that you’ll see China. And in the center of that you’ll see that is locked, but that is locked. That is locked. Russia. Sorry for my Oklahoma accent there. And you’ll see that is an LNG port number two in the center of it. It’s an orange. Or if you go to number the other circle up there, that is a the Sakhalin LNG number two over. Japan’s over north, Japan. So you can see that there is a green pipeline going from Russia down to China. That is a green pipeline that is being canceled in the U.S. was rumored to have really stopped that. I know it is really is sad because energy, low cost energy for everyone is energy is low cost. Energy is ending energy poverty and is prosperity for all nations. And so right now you have Putin and North Korea visiting. If you look at this map, he’s talking about putting in pipelines for North and South Korea. So then you can see a pipeline coming in. If you look at the LNG terminal down below in South Korea, the terminals going in there, you could actually see a pipeline coming across from Japan to South Korea very easily as well to watch for these developing, especially with the failure of the U.S. pole, geopolitical things going on. So these are things that you need to watch for. And I, I am disappointed that that pipeline was was cut down because it would help Japan. And have low cost natural gas. Whether or not they want to be tied to Russia is their business. It should not mean the United States is business. So when you take a look at the public discussion points that North Korea and Russia are having, no, that in the back of the mind there are natural gas discussions going on. [00:15:37][158.7]

Stuart Turley: [00:15:38] Trump says he’ll restart oil drilling in Alaska Wildlife Refuge. I want to just first say a shout out to our great oil and gas exploration and production companies and oilfield service folks that are out there. We are the best on the planet. And I actually sold a bunch of equipment up there to the Alaska pipeline. My grandfather, is attributed to being one of the key geologists in the discovery of the North Slope. I love Alaska. I do not want to have anything harm our great wildlife up there, but yet the resources are there. Let’s go to Donald Trump. Donald Trump’s told state representatives, Republicans, that Senate Republicans Thursday that he would start drilling oil on Alaska’s Arctic National Wildlife Refuge, which is reversing the Biden administration. Well, he said, we’ll get back to that. Senator Kevin Cramer, a North Dakota Republican, told reporters after emerging from a closed door meeting with Trump and other Republican senators. He opened up to it and Biden closed it down. He said, when we get back to it, as soon as we’re a Congress. Under Trump lifted the 40 year old ban under energy development and the refuge in 2017. I’ll tell you what. He talked about us having more oil than Saudi Arabia, and then we should get back to open production. All that does is lower the price. Absolutely puts the world on their heels when U.S. is a energy leader. And when you take and look at history, at what great job our American oil producers can do, let’s turn them loose. [00:17:33][114.8]

Stuart Turley: [00:17:33] Inadvertent geoengineering researchers say low sulfur shipping rules made climate change worse. Let me first say that trying to get rid of the sulfur and the pollution out of all of our shipping and helping, I kind of like the idea it was, but it was a sweeping, absolutely devastating regulatory action on sulfur fuels in trying to reduce them. I get tickled at this. Described as the biggest change in the oil market history, the International Maritime Organization, the IMO, enforce new standards on January 1st, 2020 to cut their fuel sulfur content down down to 5% from 3.5%. The rule change resulted in an 80% reduction in sulfur dioxide emissions, team of scientists said in a recent paper. Danielle Wan, a research scientist at University of Maryland and the study’s lead author, said via the social media, the impact of the Clean Air regulations could be described as an inadvertent geoengineering event. So let’s go through what what caused it? That’s because sulfur dioxide dioxide, a pollutant which forms on sulfur containing fuels such as coal or petroleum oil, is burned, reacts with water vapor to produce aerosols that reflect sunlight back into space. Now we have all the the billionaires that are trying to put sun shields up and try to do geoengineering, and it seems to be a trend that anyone trying to do geoengineering is making things worse. So there are three interesting things that people are trying to pin down, is why 2023 was so alarmingly warm in the first one that everybody heard of is El Nino. The second one is that Hunga Tonga, which was an explosive volcano. We can understand that. And then the the third was El Nino, the weather. And and now they’re saying that it’s the shipping rules. I think there’s so many ways that the air or so cloud interactions could be underestimated in the climate models, that they’ve had an accelerating impact. Here’s the bottom line, man. Climate change happened. It is happening. But I personally think that geoengineering and climate modification by man. The is also going on, but yet it’s being denied that it is going on. And man is about the dumbest animal on the planet. I don’t know what to believe anymore, but I think that this the ammo is getting actually handed and an A for effort for trying to clean up shipping fuel. It is a great job. But now they’re in charge of climate geoengineering or accused of being a major problem for the heat waves going around. You can’t buy this kind of entertainment, folks. [00:17:33][0.0][1026.0]

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