Daily Energy Standup Episode #82- Biden has 30% Crypto Electricity Tax – UK ‘to class nuclear as environmentally sustainable’ – Kevin O’Leary Says Avoid Bank Stocks and Buy Energy Instead.

Highlights of the Podcast

ENB Podcast Daily Stand-up Episode 82.mp3[12:43 PM] 00:00 – Intro
03:08 – Biden’s 30% crypto electricity tax may be too blunt of a solution
06:12 – Kevin O’Leary says of Avoid bank stocks and buy energy instead
09:36 – UK to class nuclear as environmentally sustainable
12:29 –  IEA Global oil demand will outstrip supply in late 2023
16:49 – Colorado’s high energy costs are part of a regulatory game
21:14 – Market Updates
23:46 – Outro

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

Michael Tanner: [00:00:15] What is going on, Everybody Welcome into another edition of the Daily Energy News Beat. Stand up here on this gorgeous Thursday, March 16th, 2023. As always, I’m your humble correspondent, Michael Tanner, coming to you from an undisclosed location here in Dallas, Texas, joined by the executive producer of show, the preveyor of the show and the director and publisher of the world’s greatest website, EnergyNewsBeat.com, Stuart Turley. How you doing, my man? [00:00:39][24.3]

Stuart Turley: [00:00:40] SB everyday neighborhood and way busy day. [00:00:43][3.7]

Michael Tanner: [00:00:44] Busy conveniently not bank to Credit Swiss?. [00:00:46][2.4]

Stuart Turley: [00:00:47] Oh hey now that’s you. [00:00:48][1.5]

Michael Tanner: [00:00:50] Have you I I’m interested we’re going to definitely get a bank segment coming up but I’m interested what’s due to these doors. Are you buying all gold now. [00:00:56][7.0]

Stuart Turley: [00:00:57] Ammo. [00:00:57][0.0]

Michael Tanner: [00:00:58] Ah, ammo. That’s the new currency. I can see you stacking hard. I love that guys, you have a great, great show for us lined up. Stu, you’ve picked out some absolutely banger articles. First one we’re going to cover. Biden’s 30% crypto electricity tax may be too blunt of a solution. He will cover what’s pending I assume this is in his latest budget, which it is Stu We’ll cover what that means for the crypto markets. [00:01:23][25.2]

Michael Tanner: [00:01:23] Next. Kevin O’Leary says avoid bank stocks and buy energy instead. Here are two names to consider. Without looking at them. I’m going to not consider them if only because he was the face of FTX advertising but we’ll see what he has to say and which companies we should be shorting. Stu, will cover that one. [00:01:40][17.0]

Michael Tanner: [00:01:41] Next. UK to class Nuclear as environmentally sustainable. This is a great move UK chancellor Jeremy Hunt is going to announce some great things. Stu will cover what is going on in the UK. [00:01:53][12.2]

Michael Tanner: [00:01:53] Next. The IEA global oil demand will outstrip supply in late 2023. On the day oil drops five percentage points, the IEA decides to drop their global oil demand model, which as they you see in the title will outstrip supply in late 2023. Stu will cover all the details. [00:02:10][16.6]

Michael Tanner: [00:02:10] And then finally, to the greatest state in America, Colorado. Looks like they high energy costs are now part of a regulatory game. It is really sad what’s going on there Stu will cover what’s going on in that beloved state. [00:02:22][11.4]

Michael Tanner: [00:02:22] He will kick it over to me. I will cover it really just a brutal day in the oil and gas markets. What’s what’s what’s going on in the banking industry is is having a kind of a fallout effect specifically in the oil markets. [00:02:32][9.2]

Michael Tanner: [00:02:32] We’re down five percentage points, slightly worse than expected. EIA crude oil build on that side, natural gas still to 48 so there’s not much choppiness there. [00:02:41][9.4]

Michael Tanner: [00:02:42] I will cover all that and a bag of chips, guys. But first, check us out, world’s greatest website, Energynewsbeat.com. Look at the description below. All the articles we are about to cover are via that website. It’s again the best place for all of your energynewsdashboard.energynewsbeat.com. We are hard at work at V2 to deliver data and news to you in a convenient format. I’m out of breath though. Stu. Where do you want to be? [00:03:04][22.7]

Stuart Turley: [00:03:05] Let’s start with my buddy Biden. On the Biden’s 30% crypto electricity tax may be too blunt of a solution. All right, Arizona, I’m interviewing a very nice guy tomorrow on Bitcoin, so it’s going to be a good educational thing for me, ESG, Bitcoin. So I guess this will help. [00:03:29][24.4]

Stuart Turley: [00:03:30] In his latest budget for fiscal year first paragraph, fiscal year 2024, President Biden has proposed new tax on electricity use from cryptocurrency mining. If the budget becomes law a 30% tax, it will be phased in over three years. [00:03:50][20.6]

Stuart Turley: [00:03:51] The proposal aims to address the growing concern about the environmental impact of cryptocurrency, right where most of the crypto miners are going as they’re looking for trapped natural gas, they’re looking to get off the grid and if they can find a trap net or where trapped natural gas means, where they cannot export it out on a pipeline. [00:04:18][27.5]

Stuart Turley: [00:04:19] And there’s a bunch of places where you’ve got a lot of natural gas or flared wells or those things in areas and use that for low cost energy. Every bitcoin mining person or people I have talked to are looking for that low cost kilowatt per hour. It can be hydro, it can be anything. [00:04:40][20.7]

Stuart Turley: [00:04:41] So the high cost of energy in the ESG movement in Bitcoin is already there without taxation. This is just another way of trying to get more revenue coming in and all it will do is drive bitcoin mining underground, if you want my opinion. [00:05:03][22.1]

Michael Tanner: [00:05:03] Well, because you know, it’s they’ve got to get their grubby little hands on it, you know what I mean? We got to tax it, baby. You know you’re not going to let it go. We’re not going to let it. On tax. [00:05:12][8.7]

Michael Tanner: [00:05:12] You don’t think there’s a way to weasel around And for us to be able to the federal government to be able to get their take. Here’s what I think. I think that it’s clear when they don’t like something they branded as unclean, when they don’t like something. Oh, it’s emissions. Sure. Creating emissions. [00:05:28][15.5]

Michael Tanner: [00:05:28] Because if what you’re saying is true, Stu, that the primary use case for crypto mining is to captured flare gas, which would normally be flared into the atmosphere and release CO2, the very thing that causes climate change, which the federal administration is then taxing people to do that. [00:05:49][20.5]

Michael Tanner: [00:05:49] Now I get what they’re saying they’re going after people who are plugging into a wall. But how do you even know that? I mean, this is just where they’re throwing things in the budget to virtue signal to their base, Hey, look at us. We’re on your side. They’d never implement this. [00:06:03][14.4]

Stuart Turley: [00:06:04] You never know what stupidity lurks in the mind of a politician. [00:06:08][4.0]

Michael Tanner: [00:06:09] What’s next Stu? Before I go crazy. [00:06:11][1.8]

Stuart Turley: [00:06:12] All right. Kevin O’Leary says of Hungary, Avoid bank stocks and buy energy instead. Here’s two names to consider. I saw him interviewed. I think it was MSNBC the other day on this. And he said, hey, I lost a couple billion in what’s a couple billion between friends and SVB and so I said, I ain’t got a couple billion dollars yet. [00:06:39][27.8]

Stuart Turley: [00:06:40] And when you you sit back and kind of go, if you thought about putting this is a quote, if you thought about putting your money in the bank stocks was a good idea, says O’Leary, you should change your mind this morning for ever. [00:06:54][13.9]

Stuart Turley: [00:06:54] So Marathon Petroleum. Here’s where I do agree with him. Marathon has got good management, good numbers, and here is a quote, strong FCF generation cash balance and distributions from NPLEx gives us confidence in MHP, sees Marathon Petroleum Corp ability to return capital to shareholders through the cycle. [00:07:22][27.3]

Stuart Turley: [00:07:22] This is the group that is the downstream or refining group and they are a great group and a good investment for the long term. So I agree with that there’s… [00:07:34][12.0]

Michael Tanner: [00:07:35] Down four percentage points today. Great call. [00:07:36][1.5]

Stuart Turley: [00:07:37] One day does not make a pattern. [00:07:38][1.5]

Michael Tanner: [00:07:40] I’m mostly yanking Kevin O’Leary’s chain this dude’s been on the wrong side of two recent historic collapses. One, he’s the spokesperson of FTA. We can’t forget that I’m not just going to gloss over the fact that this dude was basically shilling for FTA and Sam Bankman-fried, and now he’s exposed to Silicon Valley Bank. I mean, what’s next, Stu? What’s next? [00:08:03][23.0]

Stuart Turley: [00:08:04] Well, I’ll tell you, it. [00:08:05][1.6]

Michael Tanner: [00:08:06] Takes a Ponzi scheme. [00:08:07][0.9]

Stuart Turley: [00:08:09] He’s richer than I am. [00:08:10][1.3]

Michael Tanner: [00:08:11] I know. I’m just Yank at his chain. He’s smart. It is just funny that, you know, he’s telling us which stocks to buy. You know, maybe he’s the time to just relax and go enjoy your yacht. Don’t need to be. Pitch me stocks now. [00:08:21][10.5]

Stuart Turley: [00:08:22] Oh, there you go. But NBC is rated as a strong buy. And then you have a take a look at the other one. [00:08:30][8.1]

Michael Tanner: [00:08:30] What is next one’s target resources. Largest independent midstream player, I will admit, is he has something correct. He’s he’s identified the midstream and the refining space as where the long term value is. He’s got that right. Exactly. [00:08:43][12.3]

Michael Tanner: [00:08:43] Because that’s where if you’re an investor looking for a stable dividend, that’s the difference. Dividends happen in the oil and gas upstream sector all the time, but they’re variable. They go over all over the place. [00:08:54][11.1]

Michael Tanner: [00:08:55] You don’t know what it’s going to be they sometimes don’t get one they sometimes do. Midstream well, maybe only yields in Marathon’s case, 2.4 percentage points and a 1.94 on target. [00:09:05][10.0]

Michael Tanner: [00:09:05] That’s very consistent and you can really target that. So if he’s done one thing correctly, he’s identified two sectors that if you’re just looking for disciplined yield, if you’re yield hunting, as we call the business, they’re good bye. So I’ll give him credit where credit’s due. It’s just fine. The Yankees Chain. [00:09:21][16.2]

Stuart Turley: [00:09:22] Oh, it is. And yes, just find a Yankees chain and let’s go to the next one here. Okay. The UK is in trouble. Let’s just start with the UK. UK to class nuclear as environmentally sustainable. And this is actually huge and I’ll go through that here in a second. [00:09:46][23.4]

Stuart Turley: [00:09:46] First paragraph, the UK is Chancellor Jeremy Hunt has announced that nuclear will, subject to consultation, be classed as environmentally sustainable in our green taxonomy. He also launched competition to be completed at the end of the year, which could lead to co-funding for small modular reactors SMR. [00:10:11][24.6]

Stuart Turley: [00:10:13] This is huge the whole world is looking at smart, small modular reactors. They’re easier to build, easier to get funded. And if they’re like Copenhagen Atomics, they can be built on a factory line and shipped out and you get better controls. Even, you know, union labor, whatever you want to say, you got controls over something like that. I think that’s fabulous. [00:10:40][27.4]

Stuart Turley: [00:10:41] Now, Scotland is producing most of the oil for the UK. Scotland is shutting down their oil and natural gas. They also import a bunch out of Norway and other areas. So you sit here and take a look and then they have the North Sea up there and they’re shutting down the North Sea from the UK’s perspective. [00:11:06][24.8]

Stuart Turley: [00:11:07] So the UK is actually a bunch of dopes running around, like off the cliffs of Dover, a bunch of lemmings running off into the ocean. This was a smart move and it was the about the only move that they had. [00:11:22][14.4]

Michael Tanner: [00:11:22] Hey, I mean, I’ll take it. I think this is better than pouring into some stupid offshore wind farm. So, you know, as much as I joked about, we’re just supplying everybody with nukes now it’s gone. Unfortunately, it’s the cleanest way to go forward. [00:11:34][11.8]

Michael Tanner: [00:11:35] So we got to figure it out. And these small modular reactors, these Smarties, as you’ve talked about, and I highly recommend going and listening to some of the interviews that Stu has previously done on this podcast. Just go look at the feed, scroll down, you’ll find who’s the top nuclear guy you’ve interviewed they need to go listen to what’s the name?. [00:11:51][16.5]

Stuart Turley: [00:11:52] I’ll tell you the CEO of Copenhagen Atomics I mean he is. hes a cool cat [00:11:58][6.7]

Michael Tanner: [00:12:00] That was Tom Jensen. [00:12:01][0.5]

Stuart Turley: [00:12:02] Yes. [00:12:02][0.0]

Michael Tanner: [00:12:03] Tom Jensen. [00:12:04][0.5]

Stuart Turley: [00:12:05] He was I learned a lot from him and they that I’m going to reach out to him and find out because I believe that they’ve already fired up their thorium reactor and it uses nuclear waste in order to do it. [00:12:20][15.1]

Michael Tanner: [00:12:20] I like. It. All right. What’s next? [00:12:22][1.7]

Stuart Turley: [00:12:23] Let’s talk about one of the most fun organizations on the planet, the IEA. Global oil demand will outstrip supply in late 2023. I put the IEA in the same category as the WHO, the World Health Organization, as well as the U.N., and then the International Monetary Fund. I put all of these guys into the same bucket of squirrel. [00:12:53][29.9]

Stuart Turley: [00:12:54] I think. Have you ever seen any of those buckets, Michael, where you have a trap, you have a loose bucket, and then you have a ramp that goes up with the rats that jump in and then there’s a lid that flips. I wish we would put that right there and tell them there’s green money at the bottom of them and let them all run up into that trap. I do not like any of them. All right, let’s go on here. [00:13:23][29.4]

Stuart Turley: [00:13:24] The IAEA. Thanks for letting me rant, by the way, Michael. The IAEA expects oil markets to swing from a surplus of the first half of 2023 in a deficit in the latter part of 2023. China’s recovery is expected to drive global oil demand to record highs, with oil demand hitting 102 million barrels a day. That’s up quite a bit. I mean, I believe that’s up almost just shy of 2 million barrels a day. That’s up. [00:13:58][34.0]

Michael Tanner: [00:13:58] So it is up. I think they also point out that, you know, instead of a 710,000 barrels per day increase of growth in the first quarter, we might see 2.6 million barrels per day in that fourth quarter, which is pretty, pretty insane. [00:14:13][15.0]

Michael Tanner: [00:14:14] They also expect between Q1 of 2023 and Q4 of 2023, the global oil demand is said to surge by 2.3. 2 million barrels per day, taking average growth for the year to 2 million barrels per day. Global oil demand is set to reach a record 102 million, as you mentioned, Stu. [00:14:30][16.3]

Michael Tanner: [00:14:31] So, you know, on the day that oil prices dropped all the way down to $66, currently sitting at $68, IEA comes out again, they’re putting this all on China. So whether or not you buy it or not, that’s what they’re saying. [00:14:43][12.6]

Stuart Turley: [00:14:44] Two things. Russia will only be able to get back to pre-pandemic levels barely, even with all of their production and all of their move, all to the Dark Fleet in the Graveleet, which we’ve covered on other podcasts. [00:15:02][17.5]

Stuart Turley: [00:15:04] Russia is being taken out of the mix from the global mix. So the let’s take a look at. You and I were kind of laughing. You had to fact check me on Delta yesterday. And I was looking at some of the other airlines and airline traffic is going up, which is going to help the marathons of the world, the downstream players. [00:15:25][21.6]

Stuart Turley: [00:15:26] So we do have a lot of things going on but the financial crisis, I think we don’t know how bad it is yet. And I quite honestly think that there are some squirrels laying around out there that have yet to be uncovered. So. [00:15:43][17.4]

Michael Tanner: [00:15:44] Yeah, I can imagine. Do I think the IEA is wrong in this analysis? No, I do think what they’re trying to do is they’re shilling for Middle Eastern oil companies who want higher oil prices. And there’s a tone to their report that is extremely bullish. You know what they want as much as they want to go green. They know who pays their bills. [00:16:06][22.1]

Stuart Turley: [00:16:07] There’s a couple new things that have developed out of there The Middle East as well. One of them is Qatar, bringing in several companies to bring it to do green hydrogen, which is just unbelievably. Yeah, there you go. [00:16:25][17.3]

Stuart Turley: [00:16:25] Now, here’s the other thing about the IEA, and that is their reporting. If you look at their funding, their funding comes from renewable or oil in their report match, depending on the way the wind is blowing. Wait a minute. The wind is blowing this way. It’s renewable. It’s more than it’s oil. [00:16:45][19.7]

Stuart Turley: [00:16:46] So. All right. Well, let’s go to the next one. And Colorado’s high energy costs are part of a regulatory game. I saw this one, Michael. And I love me some Colorado. My kids were born in Colorado. I love Colorado. Love skiing. [00:17:04][17.8]

Stuart Turley: [00:17:04] The Mary Jane in-between Winter Park and Mary Jane. Mary Jane is just all black. I love Mary Jane. The drunken Frenchman is the one run coming in there. You got moles everywhere. I’ve done so many helicopters down that hill that is so much fun. I’ve even screwed myself into the hill. I was doing some helicopters so bad. [00:17:29][25.0]

Stuart Turley: [00:17:30] All right, Love, Colorado. This is. This is really sad. Colorado’s first where Colorado’s high energy costs are partly due to high stakes regulatory game, quote unquote, being played largely out of the public’s view, he said. Officially, the official advocating for customers before the Colorado Public Utilities Commission. [00:17:55][25.2]

Stuart Turley: [00:17:55] This is absolutely a tale telling article, and I recommend everybody go out to energy News Beat.com and take a look at this. Here’s a quote that’s pretty important. I would say if ratepayer is deciding between paying their heating bill or paying their prescriptions this month, then yes, something is wrong. [00:18:16][20.8]

Stuart Turley: [00:18:17] Senator President Steve Finberg, Democrat out of Boulder, who chaired that hearing. Something clearly needs to change. Well, yeah, Why don’t we get all politicians out of office, Republican or Democrat? Let’s go to down here. Here’s where it says. Pearce says when they started the Advocate office, he was introduced to the concept of the rule of 60. This one’s critical. A utility comes in for a rate case. [00:18:46][29.2]

Stuart Turley: [00:18:47] They’re likely to get 60 to 70% of what they ask in. In my short period of three years, it’s held very true. So, Michael, when you go in and you want to you want something, you ask for 130%. And if you get 70% of that 130%, you’re happy. You just inflate the numbers you need. Yep. All right. So guess what? The consumers are getting. [00:19:14][27.2]

Michael Tanner: [00:19:15] Higher prices. [00:19:15][0.3]

Stuart Turley: [00:19:16] They’re getting it in the drive thru just like they always do and and so this is taxation through regulation at its finest. It’s an unbelievable how porkulus the Democrat system in the Democrat and Republican system in Colorado is on the approval process of energy. [00:19:39][23.1]

Michael Tanner: [00:19:40] Yeah, I’m with you I love that states do. We can sit here and have a whole podcast talking about how how much we probably both love that state. I was born there. I went to college there, high school. I mean, I’ve died. I know that state just as well as you do. I can picture, but I can. I can picture you falling down Winter Park slopes as we speak. I can see you banging out those moguls. Stu actually was the one that found Winter Park all the way back on the Oregon Trail. So his legacy goes way back to that area. [00:20:05][25.2]

Michael Tanner: [00:20:06] This isn’t just a problem that’s new to Colorado. It’s a problem with any regulated system is when. You go ask for rate increases. The problem is there are excel is a public utility, which means they have to get approval from the state Senate in order to set rates, a.k.a. rate charges. [00:20:21][15.5]

Michael Tanner: [00:20:22] So I think there’s the utility chief advocate what’s his name is Guy’s name, the Colorado Utility Consumer Advocate chief. Yeah, Jared is Joseph Perea. This is his guy and he’s doing a great job. [00:20:34][12.0]

Michael Tanner: [00:20:34] He’s explaining how these regulators and basically he says, quote, how the regulation compact between monopolies, utility providers and state can affect the consumers Bill or your door. Yeah as much as I love the state. [00:20:46][12.1]

Stuart Turley: [00:20:47] But the problem with Colorado is they have gotten most of their people imported in from California. They don’t want to produce low cost energy and they are absolutely shooting themselves in the consumer’s foot. So. [00:21:04][17.0]

Michael Tanner: [00:21:05] Oh, absolutely. I mean, unfortunately, the state is on a decline there’s a reason we don’t live there anymore. [00:21:09][4.3]

Stuart Turley: [00:21:10] Makes. Yes,. [00:21:10][0.7]

Michael Tanner: [00:21:11] Unfortunately. [00:21:11][0.0]

Stuart Turley: [00:21:13] It’s back to you now, Michael. [00:21:14][0.9]

Michael Tanner: [00:21:14] Yeah, we’ll keep it quick, guys. You’ve heard the news. Credit Suisse is down, but stocks were up today, though. You know, I’m not going to opine on what’s going on in the European banks other than it’s affecting oil prices. [00:21:25][10.3]

Michael Tanner: [00:21:25] We are down to $68.27 as we record this on the 15th, you’re at about 645. We’re all the way down to below $66 due off the news of both that and a 1.6 billion barrel crude oil inventory build, 1.2 million barrels was the API number and that was what was expected. [00:21:43][18.5]

Michael Tanner: [00:21:44] With dollar rising relative to other currencies. We saw crude oil tumble. Remember, they’re inversely correlated as the U.S. dollar gets stronger, oil gets weaker because it costs down more dollars to secure Merrill or you your dollar can buy more barrels so the price inherently drops. [00:21:58][14.1]

Michael Tanner: [00:21:59] That’s not good, especially as interest rates continue to rise with other currencies really again on the downtick. So everyone is pretty just concerned about what’s going on in the banking sector. You know how this looks for a long term commodities view? I don’t know, guys. Again, I’ve always thought this $100, you know, bread’s current at $74. [00:22:15][16.2]

Michael Tanner: [00:22:16] I mean how does everybody feel about $100 Brant crude do. Goldman Sachs is still on the phone with you trying to get you out. You know, they’ve shifted focus from me and they’re not gas analyst back to you. Sure. Up that oil desk because man, we need some bulls over there now. [00:22:30][13.4]

Stuart Turley: [00:22:31] They can’t afford me and so now I still think it’s going to be between 85 and 95 coming up real soon. [00:22:40][8.5]

Michael Tanner: [00:22:40] And the IEA. [00:22:41][0.6]

Stuart Turley: [00:22:41] By the 98 sounds good and I think it’s there is one thing that is dependent and that is how bad the financial global markets get. And you’ve heard me say for a long time that a global recession and depression in some countries has been coming for a long time. [00:23:04][22.5]

Michael Tanner: [00:23:04] And if that’s the case, oil and oil prices are going not to the moon, but to the floor. So your hundred dollar oil price is not going to happen. [00:23:15][10.4]

Stuart Turley: [00:23:15] We’ll see, because I think people are still going to print money because of stupidity and then it’s going to crash later on. [00:23:21][5.9]

Michael Tanner: [00:23:22] Okay. Well, we will we will see that that’s really all I’ve got. Folks, I don’t want to keep you too long here, if only because, you know, you can go back due to worry about Credit Swiss and converting all of your cash into Bitcoin. So we’ll let you go, guys. For Stuart Turley, I’m Michael Tanner. We’ll see you tomorrow, guys. [00:23:22][0.0]