Daily Energy Standup Episode #162 – Controversy and Contradictions: UN Climate Report Mocked, Shell CEO’s Green Dreams, and the Electric Car Dilemma

The auto industry is beginning to crank out more electric vehicles (EVs) to challenge Tesla, but there’s one big problem: not enough buyers. Why it matters: The growing mismatch between EV supply and demand is a […]

Highlights of the Podcast

00:00 – Intro
02:53 – UN report predicting climate catastrophe in 2030 met with mockery: ‘Every single prediction’ has been ‘wrong’
05:40 – Shell CEO Dreams of Leaving UK for Greener (Profitable) Pastures in the US
09:25 – Why I’ll be buying a brand new petrol car just before the 2030 ban, says MATT RIDLEY
12:46 – Unsold electric cars are piling up on dealer lots
16:46 – Market Updates
19:16 – Outro

Follow Stuart On LinkedIn and Twitter

Follow Michael On LinkedIn and Twitter

ENB Top News

ENB

Energy Dashboard

ENB Podcast

ENB Substack

– Get in Contact With The Show –

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 Tuesday, July 11th, 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 the show, the purveyor of the show and the Director and Publisher of the world’s greatest website, EnergyNewsBeat.com Stuart Turley, my man. How are we doing today? [00:00:38][23.0]

Stuart Turley: [00:00:38] Hey, it’s a beautiful day in the neighborhood and we got a packed show. [00:00:41][3.2]

Michael Tanner: [00:00:41] Did we got a good show lined up, folks, as always, these articles, courtesy, EnergyNewsBeat.com. First up, we’ve got U.N. Report predicting climate catastrophe in 2030 met with mockery quote, Every single prediction has been wrong, that’s absolutely true. Next up, Shell’s CEO dreams of leaving UK for greener, profitable pastures in the US, love that little play on words there. [00:01:09][27.5]

Michael Tanner: [00:01:10] Next up, Why I’ll be buying a brand new petrol car just before the 2030 ban, says Matt Ridley. This is a great article talking specifically about the petrol ban that’s going on in Britain that’s why I said petrol. For all you lovers out there, I’m just trying to stay up with the times. [00:01:29][19.0]

Stuart Turley: [00:01:29] That was good one [00:01:30][0.3]

Michael Tanner: [00:01:31] It’s a good one, but this is a fascinating article on what happens when you put time constraints on efficient things, this dual cover that and then finally Unsold electric cars are piling up in dealer lots in a move absolutely nobody expected looks like no one’s buying EVs so Stu will cover that he’ll toss it over me. [00:01:47][16.6]

Michael Tanner: [00:01:47] I will quickly cover oil prices easing a little bit today and then we’ll give a quick update on what’s going on with that Pemex platform Stu`s got an interesting number that’s just actually breaking as we speak, so he’ll cover that in a bag of chips, guys. [00:02:00][12.9]

Michael Tanner: [00:02:00] But first, before we start our stories again, all of these stories courtesy World’s greatest website www.EnergyNewsBeat.com the best place for all of your energy news. Stu does a great job of curating that website, making sure it’s up to speed with all the things that you need to stay up to speed on the ever changing energy markets. [00:02:18][17.0]

Michael Tanner: [00:02:18] Dashboard.EnergyNewsBeat.com the best place for your data and energy news combo. I’m sounding I’m beating a dead horse here, guys, but it’s going behind a paywall here soon, so give us your feedback sign up for the description check out the description below what you’ll find a form to get access to our to see some of those early features before we decide to do something crazy with it so help yourself out and do it. [00:02:39][20.6]

Michael Tanner: [00:02:39] Hit us up. [email protected] follow Stu follow me on LinkedIn everything in the description below, all the timestamps, all the stories. I’m out of breath tho Stu where do you want to begin? [00:02:47][8.6]

Stuart Turley: [00:02:48] Let’s start with my least favorite organization in the world next to the World Economic Forum the U.N. The UN in reporting predicting climate catastrophe in 2030 met with mockery every single prediction has been wrong they got brutalized Michael on Twitter. [00:03:08][19.5]

Michael Tanner: [00:03:09] Who came up with this title this is a Fox News article make sense [00:03:11][2.8]

Stuart Turley: [00:03:12] Yes it was not me I did I’m standing in a scenario. [00:03:15][3.1]

Michael Tanner: [00:03:15] Like this seems like I was like, this is a Stu title. [00:03:18][2.4]

Stuart Turley: [00:03:18] No, it was too good. It caught my eye. Let’s see here. United Nations released a report on Monday that claimed the planet will approach catastrophe the threshold in 2030 less further action is taken. It says that global average temperatures are expected to rise 1.5 Celsius above pre-industrial levels. Anyway this just makes me airsick. The sea they started for 40 years they’ve been claiming this and nothing has happened. Let’s go through some of the numbers on this thing I’ll tell you. [00:03:55][36.6]

Michael Tanner: [00:03:55] All of the tweets they’ve quoted in here. Climate apocalypse has been 5 to 10 years away for the last 70 years. Ain’t that the truth? Oh, yeah. [00:04:04][8.7]

Stuart Turley: [00:04:04] Isn’t that great? Sean Parnell, USA. Quick everyone jump on their private jets to discuss this immediately from Carol Obama. [00:04:11][7.6]

Michael Tanner: [00:04:13] I love that one. [00:04:14][0.7]

Stuart Turley: [00:04:14] And then you have a mad owl skin I’ve probably butchered it. AOC promised it was going to happen again sometime in 2018 al Gore said it was 2014. Elijah Manly Because we ran by psychopaths, we won’t do anything and the consequences won’t be severe at all. [00:04:36][21.4]

Michael Tanner: [00:04:36] by psychopaths. [00:04:39][2.8]

Stuart Turley: [00:04:40] But you know, Michael, this is the first time that I’ve ever seen Fox News say that the climate from U.N. has actually been beat up by folks on Twitter that’s giving credence to Twitter’s, you know, beating them up. And then the the last quote in here, humanity is on thin ice and the ice is melting fast humans are responsible for virtually all global heating over the last 200 years. [00:05:07][26.7]

Michael Tanner: [00:05:10] We’re all dead, Stu this article says all you need to say. What’s next? [00:05:14][3.5]

Stuart Turley: [00:05:14] Okay, let’s go to the next one. I’m sorry. I got really taken by the way, we’ve been banned by the U.N. on several things, so I got to hand it to the U.N. for being idiots. Let’s go to Shell. Shell CEO dreams of leaving UK for greener and more profitable pastures in the U.S. This brings up a bunch of different questions I love the picture picture is a big shell on fire it’s like hell you know, I don’t know where where that really came from. [00:05:43][28.1]

Stuart Turley: [00:05:43] But remember, Shell was over in the Netherlands and Dutch, and then they moved to the U.K. Now U.K. is coming in with a windfall profit tax. Oh, so Shell, who went totally ESG and we’re getting out of the oil and gas business. So they moved it to the U.K. because the Netherlands was also trying to get out of that oh, they have a lot of natural gas fields there oh, they need them now. So the U.S. why would any business want to come to the U.S. with our administration? [00:06:24][40.7]

Michael Tanner: [00:06:25] Well, because it’s not the U.K. administration I mean, it’s absolutely clear that even a Democratic administration here is going to be a little bit nicer to the industry than what goes on in the U.K.. I mean, I think it’s interesting, it’s purely financials, though what’s interesting is that Shell does trade at a discount relative to its U.S. counterparts. [00:06:43][17.8]

Stuart Turley: [00:06:44] In that paragraph. [00:06:44][0.3]

Michael Tanner: [00:06:45] That out. [00:06:45][0.2]

Stuart Turley: [00:06:45] He has wanted Dollar [00:06:46][0.8]

Michael Tanner: [00:06:46] Interview. He he called it, quote, the valuation gap between them and it’s truly that just evaluation gap. I mean, they had record profits in 2022 of over $40 billion Dollars that’s huge. That was I mean, it would be it’s absolutely insane so, you know, I think what’s interesting is, okay, now, are they relocating their headquarters to the U.S.? Probably not but it might be interesting to think about it. [00:07:10][24.3]

Stuart Turley: [00:07:11] Let me ask you this, because you’re usually very good about picking this out. Do you think this was one of those posts or articles that they lobbed out there to try to get a waiver from the windfall profits tax? [00:07:23][12.2]

Michael Tanner: [00:07:24] No, I think this is this seems to be a little bit this is not initially from Shell Direct, like this is somebody interpretation of what Shell is doing. Shell has come out what is Shell come out and said they’ve come out now and said they’re moving more towards U.S. return and asking more into the United States. [00:07:40][16.8]

Michael Tanner: [00:07:41] What does that mean? It could mean a lot of stuff does it mean they want to ultimately move to the United States because the U.K. government is screwing them out of, you know, excess profits from windfall taxes? It’s likely probable It’s it’s a small likelihood, I don’t think necessarily more likely then what exactly this, you know, the CEO will give them credit. [00:08:01][19.8]

Michael Tanner: [00:08:01] Waylon Swann, CEO of Shell here, this quote unquote, Valuation Gap between where Shell sits and where these large, you know, where Exxon and Chevron and Conoco Phillips set. So that’s probably got more to do with it in that if you get more involved, the United States oil and gas business, maybe there’s more to it. [00:08:20][19.0]

Michael Tanner: [00:08:20] I mean, you know, it’s bad when companies are trying to get more involved with the U.S. oil and gas business, that’s when you know it’s gone completely south. [00:08:28][7.9]

Stuart Turley: [00:08:30] Exactly what. [00:08:31][0.6]

Michael Tanner: [00:08:31] you know what we need more of we need more 500 quality drilling locations. [00:08:35][3.5]

Stuart Turley: [00:08:35] Yeah. [00:08:35][0.0]

Michael Tanner: [00:08:36] Well, I wonder who they can call for some high quality drilling locations. [00:08:40][3.7]

Stuart Turley: [00:08:41] I got a few. [00:08:41][0.3]

Michael Tanner: [00:08:41] You got a few in your backyard? [00:08:42][1.0]

Stuart Turley: [00:08:43] I do. All right, let’s go to the next one dude, I thought you’d get a kick out of that one. Why I will be buying a brand new petrol car right before the 2030 band says Matt Ridley. This one is actually pretty funny because this goes back to Britain as well. Britain’s electric vehicle transition and the ban on petrol cars in 2030, this is absolutely some great numbers in this article. [00:09:10][26.7]

Stuart Turley: [00:09:11] Let’s go through some of these. Most electric car batteries are being made in China and that’s hold on the market huge investment in lithium and other minerals. We all know that China is now banning is going to be a major supply line issue. [00:09:27][16.8]

Stuart Turley: [00:09:28] Let’s come in here to wean ourselves off China over the next seven years would require 100 times as much battery capacity as we have now, which is neither affordable or feasible to lure battery makers to the UK despite our sky high energy prices this caused by the massive investment in wind power and the refusal to tap shale gas, the government is going to throw armfuls of taxpayer money at the battery and car manufacturers. This is sounding like the US. [00:10:03][35.3]

Michael Tanner: [00:10:04] It is. I mean, it’s what happens when you put deadlines on things that people still want you’re going to increase the demand for those things up until the ban happens and then you’re going to create a Black market or what they would aptly call a secondary market for this type of stuff that’s what’s going to happen. [00:10:19][14.7]

Stuart Turley: [00:10:20] Oh, yeah and Mark Mills,. [00:10:21][1.2]

Michael Tanner: [00:10:21] Let’s get into that, let’s get into the black market of petrol car. [00:10:24][3.4]

Stuart Turley: [00:10:25] I in, as Mark Mills, I’ve interviewed twice on our podcast Cool Cat, he’s over at the Manhattan Institute as a fellow. Mark Mills, an energy expert with the Manhattan Institute, explained in a recent article to match the energy stored in £1 of crude oil from petrol and diesel are produced requires £15 of lithium battery, which engage entails digging up £7,000 of rock and dirt to get the minerals needed lithium, graphite, copper, nickel, aluminum, zinc, manganese and so on. A single half ton EV battery requires mining and processing of 250 tons. That’s a lot of diesel. [00:11:12][47.0]

Michael Tanner: [00:11:13] I mean, here’s the thing people are going to be buying gas cars the demand will probably initially not be as high for these EVs as you. I mean, this is, again, as I said in the open, in a move, nobody expected it, nobody expected no one’s buying EVs. Well, yes, because you can go about ten miles in them and they cost $82,000. [00:11:29][16.4]

Stuart Turley: [00:11:32] Right. [00:11:32][0.0]

Michael Tanner: [00:11:32] Some Korean luxury brand. You know, Tesla has increased their prices substantially since when they first came out, you know. [00:11:38][6.3]

Stuart Turley: [00:11:39] Oh, yeah. Let’s go to the last article here all these kind of fit together here. Unsold electric cars are piling up on dealer lots. Michael, this is really a great article and there’s some great numbers in here. There is a huge mismatch between the EV supply and the EV demand. Michael I’ve talked to everybody that I know says they wouldn’t mind an EV for a second car. [00:12:06][26.8]

Michael Tanner: [00:12:06] Yeah, I mean, again, you said it best second car. I think what’s trying to get shoved down our throats is primary vehicle only. [00:12:15][8.9]

Stuart Turley: [00:12:16] Right. And it and if they, if they get it that way we’re not even be able to afford a car and I think they want us not to have cars. So let me go through some of these numbers. EV sales, which accounts for 6.5% of the US auto market so far this year, are expected to surpass 1 million units for the first time in 2023. Cox survey found that 51% of consumers are now considering either a new or used EV up from 38. [00:12:44][28.2]

Stuart Turley: [00:12:46] All right, So let’s go into some of these details. Nationwide supply has swelled 350%, Michael, to 92,000 that’s a 92 day supply. Dealers normally have a 54 day supply worth of gasoline in inventory. So you sit back and talk the genesis, which you just mentioned, the Korean luxury sold only 18 of its nearly 82,000 sedans in 30 days, 18 you can’t keep a manufacturing going that way. [00:13:25][39.4]

Michael Tanner: [00:13:26] Now. I mean, who’s buying the genesis though and in reality? [00:13:29][3.6]

Stuart Turley: [00:13:30] And it’s got a 350 day supply. [00:13:32][2.2]

Michael Tanner: [00:13:35] Musk the Mustangs got 117 day supply it’s pretty crazy. [00:13:37][2.8]

Stuart Turley: [00:13:38] Oh, yeah. And so you sit back, here’s where I want you and I have talked about this one, the intrigue. Hybrid vehicles have much lower inventory levels. [00:13:50][11.5]

Michael Tanner: [00:13:50] Ding, ding, ding, ding. [00:13:51][0.9]

Stuart Turley: [00:13:53] Toyota Ding, ding, ding, ding, ding that consumers want stepping stones you are you and I love hybrids. Why? I would buy a hybrid tomorrow. [00:14:02][9.1]

Michael Tanner: [00:14:03] I’m all about hybrids. [00:14:04][1.2]

Stuart Turley: [00:14:05] All about the hybrid. And they’re in short supply under 30 days. [00:14:09][4.4]

Michael Tanner: [00:14:10] I’m glad we ran something from Axios on our web site, giving them some back links. Nice job. [00:14:14][4.1]

Stuart Turley: [00:14:15] Why is that bad? [00:14:16][0.5]

Michael Tanner: [00:14:16] Axios is pretty left wing. [00:14:17][1.0]

Stuart Turley: [00:14:18] Is what? [00:14:18][0.2]

Michael Tanner: [00:14:19] Axios is pretty left wing. Oh, well, I mean, let’s just go see the I mean, let’s just go look at the I guarantee on their home page, their top story what’s their top story on Axios? This is a sidebar I just found that hilarious were running Axios, whatever. Yeah, right here. Top story Extreme heat during Europe’s hottest summer killed over 61,000 study set. Ohhhh… Climate change Stu, you’re killing us all. [00:14:44][25.0]

Stuart Turley: [00:14:44] Oh, yeah? Well, you know what? I’m not picky on where I get my news I just want the truth. [00:14:50][5.7]

Michael Tanner: [00:14:51] Yeah, no kidding. So well, don’t come to Energy News Beat, then. Trust me. [00:14:54][3.1]

Stuart Turley: [00:14:54] Oh, yeah we’re going to bag you on that one, dude Im gonna cut all your pay in half. [00:15:00][5.5]

Michael Tanner: [00:15:04] You got anything else Stu? [00:15:05][0.7]

Stuart Turley: [00:15:06] Naahh we beat up on the poor climate folks heavily today? [00:15:09][3.1]

Michael Tanner: [00:15:09] We do. We do. But they needed they they some they they they got too big of a head. [00:15:13][3.8]

Stuart Turley: [00:15:14] Yes. John Kerry can a test to that. [00:15:16][2.2]

Michael Tanner: [00:15:16] Yeah, no kidding Al Gore, no kidding. Oil prices, you know, we’re we’re down about 1% day over day. Currently sitting 73,13 as markets open here where we’re recording this about 6:30 Monday on June or July 10. [00:15:31][14.2]

Michael Tanner: [00:15:31] Brant settled down at 77,69 after touching their highest levels in about two months quote Out of BOK Financial this is Dennis Castle’s senior vice president trading. Everyone’s very nervous about higher interest rates, which could kill demand very quickly. [00:15:44][12.6]

Michael Tanner: [00:15:45] We are seeing a continuation of that million barrel a day output from Saudi Arabia and Russia with some fresh output cuts that made both benchmarks rise by about 4.5 percentage points over a weekly basis. [00:15:57][11.8]

Michael Tanner: [00:15:57] So, again, as we come to this next Fed announcement. Dun, dun, dun, what happened? So I think that’s really all eyes are on the Federal Reserve right now and what happens, which will almost likely be a rate increase. We will tomorrow see what the API says in in in relation to crude oil inventories. Stu, quick update on Pemex you’ve got some breaking news coming across the desk. What is it? [00:16:18][20.9]

Stuart Turley: [00:16:19] It is they’ve got already got 80,000 barrels back. [00:16:23][4.1]

Michael Tanner: [00:16:24] 85% of it back online. [00:16:25][1.2]

Stuart Turley: [00:16:25] Yep. Yeah. So it’s like, you know, hey, wait a minute here so you sit back and kind of go, Oh, it’s really not that bad. You know. [00:16:34][8.7]

Michael Tanner: [00:16:35] It could be worse. [00:16:36][0.4]

Stuart Turley: [00:16:36] Hey, I’m glad. I am very sorry for any deaths, but it looks like there were only two deaths so I think that they did get away with such a disaster to already have that much production back on line. It’s pretty impressive. [00:16:52][16.3]

Michael Tanner: [00:16:53] Yeah, well, they’ve got great training in in massive industrial accidents so I mean when in doubt. [00:16:58][4.9]

Stuart Turley: [00:16:58] Oh Dude, that’s harsh. [00:17:00][2.1]

Michael Tanner: [00:17:02] But they do very little with the it’s literally what the article said three days ago they were like Pemex has a history of large industrial actions so I’m just quoting Reuters. [00:17:10][8.7]

Stuart Turley: [00:17:12] That’s funny. [00:17:12][0.3]

Michael Tanner: [00:17:13] All right anything else Stu? What should they be worried about? [00:17:15][1.8]

Stuart Turley: [00:17:16] What the Fed does? [00:17:17][0.9]

Michael Tanner: [00:17:18] Yeah watch out for the Fed, folks. So. All right, guys, we’ll let you get out of here get back to work we appreciate you tracking this out here on this Tuesday for Stuart Turley, I’m Michael Tanner. We’ll see you tomorrow. [00:17:18][0.0]

– Get in Contact With The Show –