Texas Flags Endangered Lizard

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Texas Oil Regulator Flags Endangered Species Designation

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Michael Tanner: [00:00:14] What’s going on, everybody? Welcome into the Thursday, May 23rd, 2024 edition of the Daily Energy News Beat stand up. Here are today’s top headlines. First up Texas oil regulator flags endangered species designation next up, EIA warns severe hurricane season could disrupt U.S. oil and gas. Next up, many countries pledged to reach net zero by 2050, but few plan for it. Interesting. Next up electricity information on peak demand for power plants. Stu will then toss it over to me. I will quickly cover what happened in the oil and gas markets today and talk a little bit about what happened with the EIA crude oil reserves. After that, it’s a pretty small light day for oil news. So we will let you guys get out of here and start your day. As always, I am Michael Tanner, joined by Stuart Turley. Where do you want to begin? [00:01:09][54.6]

Stuart Turley: [00:01:10] Hey, let’s start there. Lizards here. Texas oil regulator flags. Endangered species designation. I gotta hand it to this. This is, kind of a funny one. Only in Texas. You gotta love it. Wayne Christiansen, actually came out and says this is a, quote, the new EPA ruling on this stupid lizard. Excuse me. Did I say stupid? I didn’t mean to insult any lizards that are possibly listening out there. This doesn’t have a thing to do with saving lizards. It’s about shutting down U.S. oil and gas production to win political brownie points, which will only increase inflation and jeopardize billions of lives globally, said our, railroad Commissioner, Christian. Wayne Christian said in a statement. I gotta hand it to he’s dead on. Right. Go, Wayne. I like it. [00:02:03][53.0]

Michael Tanner: [00:02:03] Yeah. I mean, I’m not the biggest Wayne Christian fan for a bunch of different reasons, but I think what he’s what he’s doing is actually lines like this. [00:02:11][8.0]

Stuart Turley: [00:02:12] This one’s better. It doesn’t matter if it’s a lizard, a chicken, a whale or a unicorn. Radical environmentalists won’t be satisfied until we get our all of our energy from firewood and are living in a cave again. I’m sorry. That’s the first thing I’ve really heard from him that I like. Yeah. [00:02:30][17.3]

Michael Tanner: [00:02:30] Two things. My mice. Fine cheese once in a while. And if they’re going after whales, we know I’m all for it. You know, maybe he is right about this again. I’m not, you know, just because of. Just because my feelings about Wayne Christiansen aren’t the best. What he is calling out is something that’s great. Is that this, you know, this United States Fish and Wildlife announcement that this dune sagebrush lizard is going to be classified as an endangered species under the Endangered Species Act. Is is clearly a political, you know, political framework attempting to shut down majority of oil gas development here in the state. [00:03:08][38.3]

Stuart Turley: [00:03:09] Oh it’s unbelievable. And and, our good buddy out there, my, in California, was sitting there and his video when that’s when we interviewed him about how much extra work he had to do to go out and look and look under some sagebrush out in California and go there. Lizard. Hello. Yeah. And I was. [00:03:29][20.3]

Michael Tanner: [00:03:30] Like, bro. [00:03:30][0.4]

Stuart Turley: [00:03:31] Yeah. My camera. There’s a thousand of these little things out there. Yep. Absolutely. [00:03:35][4.1]

Michael Tanner: [00:03:36] All right. What’s next? [00:03:36][0.4]

Stuart Turley: [00:03:37] Let’s go to the EIA. Warns severe hurricane season could disrupt disrupt U.S. oil and gas. Here’s where I think it’s kind of funny quote out in the article. Recent hurricanes have had a much smaller impact on total than U.S. natural gas supply, because natural gas production in the, Dom has been declining for years. Gulf of Mexico geom for years, the EIA noted. In 2005, Hurricanes Katrina and Rita caused major natural gas disruptions. However, gas production from the Gulf of Mexico territories only accounts for under 2% of the total. Wow. That has changed a ton. [00:04:20][43.5]

Michael Tanner: [00:04:21] Well, yeah, no one’s going to go drill for gas out in offshore. I mean, that’s just dumb. You spend $150 million and try to get gas. I mean, even though we’ve covered gas prices here, they’ve spiked recently. But no, everyone’s after that. The black gold. But, yeah, obviously with, you know, a large increase, if we’re about to see that of hurricanes, that is going to disrupt oil and gas, supply, which is going to impact oil and gas prices. So it’s going to be very interesting to see how this fits in there. [00:04:49][28.0]

Stuart Turley: [00:04:50] Oh, it is. And, you know, it’s amazing. They can predict the weather, but they can’t predict who’s going to win on an election. Just kidding. Okay. Did I just say in a minute that was good. We’re going to the next. We’re going to the next story here as we have to for our podcast listeners. Michael is hitting his head. On the desk laughing. So I think it was a funny joke, but I’m not sure. Many countries are. The next door in many countries pledged to reach net zero by 2050. Few plan on it. Wow. Most net zero plans lack estimates for how much residual emissions will need to be captured or removed from the atmosphere. I’m going to go one step further. Nobody knows how much it’s going to cost because they really don’t know. [00:05:38][47.6]

Michael Tanner: [00:05:39] Yeah, it’s it’s. [00:05:40][1.2]

Stuart Turley: [00:05:41] The new study. [00:05:41][0.3]

Michael Tanner: [00:05:42] It’s it’s easy to say something. It’s much harder to actually do. You know, we talk about it’s easy to make it. You know, I was I was on a, you know, a call today and we were talking about software in, you know, vendor selection. And one of the big things I said was it’s not about the selection, it’s about the implementation. You can talk about selecting whatever vendors you want, but then when you have to get down, like we do in our day jobs and actually implement these things, it becomes a whole new ballgame. And I think we spend a lot of time doing lip service to selection and not enough time thinking about what does this mean from an actual actual implementation standpoint. Same thing with net zero. It’s easy to say, let’s go net zero. Question is, how do you actually get there using the technology that we have available right now? [00:06:26][44.0]

Stuart Turley: [00:06:27] Top exactly 195 countries signed the Paris Agreement. Only 72 submitted voluntary long term strategies, to achieve the low low carbon economy by 2050. And of those, 26 include an estimate of future residual emissions. It’s just too expensive. There’s other articles that are running around out there about the the trillions needed to get to net zero. Net zero ain’t gonna happen. You heard it. Here first. [00:07:00][33.0]

Michael Tanner: [00:07:00] Let’s go to the net. I’m all for net zero. If it if it means killing more whales, that’s all I’ll say. The algorithms don’t like that. What’s next? [00:07:07][6.7]

Stuart Turley: [00:07:08] No, I don’t like that. I like me some whales. All right. Electricity. Information on demand. Power plants. This is pretty much an eye opener on this one. There are some facts in here. Natural gas, fuels 999 of the speakers in the US. Yes. For the podcast listeners, I said speakers. There’s a thousand speakers in the U.S.. Not like Biden’s pants. When we have other power plant. Did I say Biden’s plants are power plants? I’m sorry. Like other power plant speakers emit several pollutants like dioxide. And whether they’re sitting on standby, there’s a lot of peak demand. And natural gas power plants are wonderful for peak demand. [00:07:57][49.0]

Michael Tanner: [00:07:58] Yeah, it’s it comes back to what? How do we maximize, you know, demand on a daily basis? We ever seen a power demand chart on a daily basis? It looks like a sine wave. If you don’t know what a sine wave is, Google it. Because what you’ll find is that it’s, you know, it peaks during night, peaks during the morning, but levels out during or drops during the day because everybody’s at work, thank goodness. [00:08:21][23.9]

Stuart Turley: [00:08:22] A sine wave that I’m giving Biden when he’s driving by is got one fake, one digit in it, one finger. [00:08:28][6.1]

Michael Tanner: [00:08:30] That’s that’s funny. Again what you know, I love this chart here. If we don’t mind throwing up this this chart here, it’s the one right below the United States. It is example of average annual, our capacity factors by plant intermediate or intermediate peaker. Yep. You need the base, the baseload energy. Why do we have why is it slide up near the top? Because you always have to make sure that at the peak, whatever that peak demand is during the day, you can match it. And natural gas and coal are the two things that can require that right now. [00:09:03][32.9]

Stuart Turley: [00:09:03] That’s exactly right. And then the intermediate and pearl balancing authorities, in California and with the heavier solar states are just driving themselves nuts. And the balancing authorities are truly like air traffic controllers that are needing therapy. So maybe we need to have some of the Texas Legislature offer therapy from the Petting Lizard Zoo. We could open the petting lizard Zoo. [00:09:30][26.4]

Michael Tanner: [00:09:30] That’s that would solve our first article’s problem. [00:09:33][2.1]

Stuart Turley: [00:09:33] It would, it would. All right. [00:09:35][1.8]

Michael Tanner: [00:09:36] Look at us. Just solving problems here on this podcast. [00:09:38][2.7]

Stuart Turley: [00:09:40] I. I’ll talk to you, too. [00:09:41][1.2]

Michael Tanner: [00:09:41] All right, well, before we dive into oil prices, guys, we’ll go ahead and pay the bills around here. As always, thank you for checking out Energy News Beat.Com. All the news and analysis you just heard is brought to you by that website. You can hit the description below for all the links to the timestamps, links to the articles and ability to go ahead and grab anything you want. Again, the Stu and the team do a great 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. www.energynewsbeat.com. [00:10:11][29.4]

Michael Tanner: [00:10:14] Overall markets today. And then we got in earnings. As you can see behind me here. They beat earnings per share by a little bit. Didn’t do much though for the overall markets S&P 500 still down a quarter of a percentage point. Nasdaq fairly flat has recovered a little bit from that beat on in earnings. We did see the two year yield up about one percentage point. ten year yields only up a quarter of a percentage point. So good to see the two year yields rising faster than $10 index up about you know, 0.3 3/10 of a percentage point. Bitcoin down about a percentage point below 70,000. Again 69,469. As we record this year, oil drops about 1.5 percentage points off some bearish crude oil inventory builds. We’ll cover that in a second. 7333 as we stand here, in the afternoon, Brant oil drops about a half a percentage point 8186. Natural gas up five percentage points, $2.80. $3. Natural gas. Here we come. You know, on the oil side, you know, the EIA did confirm a small crude oil inventory build and gasoline draw which is is not going to do well for for overall prices. We did see a an increase about 1.8 million barrels week over week ending with May on May 17th. As you we know, yesterday the AP estimated about a 2.4 million barrel build. So not quite as as as bearish as the API projected, but nonetheless a build. You know, we did it did come out today, that the Biden administration will be releasing about 1 million barrels from the gasoline inventories upcoming year. I mean, we we, you know. [00:11:52][98.3]

Stuart Turley: [00:11:53] They’re not releasing it. They’re destroying it. [00:11:55][2.4]

Michael Tanner: [00:11:56] Well, you’re right there. It doesn’t take it to figure out why he’s doing that. So it’s it’s you know, that will be interesting to watch as we come up here. We did see, you know, those, production of gasoline inventories, or production of natural or oil was about 10 million barrels per day. This this is on the back to back draws for gasoline stocks. Distillate stocks rose by about 400,000 barrels. And, I think that that’s really it on the crude oil front, you know, really why prices are falling is, is, you know, you know, again, interest as interest rates cuts become less and less likely we that is only going to hurt forecasted demand, if only because that’s where a lot of the growth comes from is when the economy is booming. Now on the natural gas side, things are going to get hot, folks. And that’s really what’s what’s happening here. Strong, strong heating demand or cooling demand is upcoming for this U.S Memorial Day weekend, which is a boon to natural gas prices. Obviously regional pricing isn’t great. We’re still seeing some problems out in Omaha and down in the Permian, but overall, that natural gas spot price up at $2.80. Very interesting. I mean, yesterday we saw Chesapeake lay off a bunch of people. They had maybe just waited, two weeks. Maybe they’d actually see, some increases. But this is themselves right sizing themselves for that, southwestern merger. Obviously, you know, when you hear about quote unquote synergies, just know what that happened. So it’s really about the only things I’m seeing that H2 kind of quiet on the on the oil and gas markets. Please check out, the interview, episode seven with Bennett Williams on the Deal Spotlight podcast. You can see that in the same feed we covered the Chevron Exxon debacle that is the Guyana and Stabroek block. So super interesting there. Really appreciate Bennett for coming on. And you know, we’re getting episode eight lined up guys. So they take a little bit too. I got to do a lot of research behind the scenes. Got to find somebody who’s an expert on that deal. And then and then, you know, we like to make sure they’re cut up well. So super interesting guys. We’ll go ahead, and get out of here. But what should people be worried about? Stew, this is our last, show for the week. You’ll hear, you know, listen to episode seven of the deal spotlight. You know, tomorrow, Friday, Saturday, you hear the weekly recap. What should people be worried about going into the weekend? [00:14:13][137.6]

Stuart Turley: [00:14:14] Just buckle up, and, I’m looking forward to this with Ted Cruz next week. Getting to share that out there, say hi, Julie. Ask him some questions. That’ll be fun. [00:14:24][9.4]

Michael Tanner: [00:14:25] Yeah. You’ll get kind of two minutes to give a little soliloquy. So hopefully we talk about legislation through regulation. We’ll have to work on a little speech that you can give, figure out what topic you really want to bring up. It’s going to be super fascinating. Down there at the, American. It was it, American prosperity. [00:14:40][15.9]

Stuart Turley: [00:14:42] Yes. And, it’s going to be a great time. [00:14:45][2.9]

Michael Tanner: [00:14:45] We love ourselves some Genevieve Collins and everybody there at the Americans for prosperity. So. Well, we appreciate you guys hanging with us this week. We’re going to let you get out of here hopefully your weekend. I know it’s Memorial Day weekend, so maybe you’re off Friday if you are off Friday and Monday. Great. We will be back though on Monday no doubt. With that guys. Have a great weekend. We’ll see you on Monday. [00:14:45][0.0][842.7]

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