Daily Standup Top Stories
Climate Change Is The Number One Problem Of… No Nation?!
According to preliminary results from the World Meteorological Organization, last month was the warmest September ever recorded around the world – the latest in a string of apparent temperature records. Nevertheless, despite the near constant barrage […]
Electrical grids aren’t keeping up with the green energy push. That could risk climate goals
FRANKFURT, Germany (AP) — Stalled spending on electrical grids worldwide is slowing the rollout of renewable energy and could put efforts to limit climate change at risk if millions of miles of power lines are not added […]
Highlights of the Podcast
00:00 – Intro
02:11 – Climate change is the number one problem of of what? No nation.
03:58 – Electrical grids aren’t keeping up with the green energy push. That could risk climate goals
06:00 – Markets Update
06:54 – Nat gas producer Chesapeake explores buying Southwest energy.
08:23 – 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 is going on, everybody? Welcome to another edition of the Daily Energy News Beat Stand up here on this gorgeous Wednesday, October 18th, 2023. As always, I’m your humble correspondent, Michael Tanner, coming to you from an undisclosed location here in Dallas, Texas. Stu is out at the International Oil Field Show in Permian. So I am rocking a solo show. Nevertheless, though, I am going to hold down the fort. We’ve got two stories I want to cover in the news segment and a few in finance. First up, though, in the new segment, guys, climate change is the number one problem of No Nation. It’s very interesting. A poll that just dropped that’s due ran this morning on Newsweek will cover that and then we’ll do. Electrical grids are keeping up with the green energy push that could risk climate goals. Well, then kick it overall quickly, cover what is happening on the finance side. Today, we did see oil and gas prices surfing up, down all over the place. API dropped their crude oil inventory estimates and we did have an exclusive potential merger between Chesapeake and Southwest. And so I’ll dive into my thoughts on that and then we’ll let you get out of here and get on your way on this gorgeous Wednesday. But before I do all that, guys, remember all the news and analysis you are about to hear is brought to you by the world’s greatest website. Energy News Beat the best place for all of your energy news. Stu in the team does do a fantastic job of making sure that website is up to speed with everything you need to know to be at the tip of the spear. When it comes to the energy business and the oil and gas business, for that matter, you can email the show [email protected] hit the description below for other ways to get involved. The best way to support the show is to go subscribe to a Spotify, Apple podcast wherever you get your podcast or on at Energy News Beat via YouTube, go hit that subscribe button. But as a 15 year old YouTuber, I’d slam my piston to smash that like button, but I won’t. I’ll refrain from saying that. So you can also again hit the description below and see all of the timestamps. Skip ahead, pick your favorite part and see all of the articles that I am going to reference here. [00:02:10][115.6]
[00:02:10] Let’s get going though. Climate change is the number one problem of of what? No nation. Very interesting. So according to preliminary results from the World Meteorological Organization, last month was the warmest September ever recorded around the world, the latest string of apparent temperature records. Nevertheless, despite the constant barrage of media attention given to the, quote, exponential threat, the topic of climate change has still not reached the top of the agenda for many people, according to data from the statistics. Consumer Insights According to that statistics. Kathryn Buckholtz, A Respondents in none of the 21 nations covered by the survey collectively rated climate change as the most important problem for their own country. When asked to name the issues of the world’s business significance, you can find more of this info as statistics. Switzerland comes in the closest, with climate change being named as a severe issue and the second highest number of respondents behind rising prices and inflation. It was lowest in Poland and South Africa. United States was actually an outlier, only 30%. So be sure to wise up here. And no, I think it’s interesting. We we hear climate change is this existential threat. Yet if you actually go pole to pole person to person, there’s other things specifically when we’re in a time of heavy inflation and we’re in a time of of high energy prices, a lot of that’s driven by this high inflation. It’s you know, it’s not on the top of people’s mind. And I think, again, as this comes as as as inflation’s not going anywhere, folks, energy prices are going to continue to stay high. I think it’s only you’re only going to see this trend continue where, yes, climate change, I think people think that’s important. But is it the most important issue, you know, surrounding them? Not clearly. And I think statistics did a great job pointing that out. Electrical grids aren’t keeping up with the green energy push that could risk climate goals. [00:03:56][105.6]
[00:03:56] This is the next article here. I’m still spending on electrical grids worldwide is slowing the roll out of renewable energy and could put efforts to limit climate change at risk of millions of power lines are not added or refurbished in the next years, according to our friends over at the International Energy Administration, these guys are based out of pairs. Great job, great place to be based, and it might as well be based out of somebody. Make it Paris. They said in their new report Tuesday that the capacity to connect and transmit electricity is not keeping pace with the rapid growth of clean energy technology such as solar, wind power, electric cars and heat pumps being deployed in the efforts to move away from fossil fuels, their executive director, Fatih Birol, told the Associated Press in the interview that there’s a long line of renewal projects waiting for the green light to connect to the grid. The stalled project could generate 1.5 gigawatts and 11.5 gigawatts if Europe or 1.21 gigawatts if you’re a back to the Future fan, but it’s 1.15 hundred gigawatts of power or five times the amount of solar and wind capacity that was added in the worldwide last year. I mean, when Stu talks about legislation through regulation, this is part of it. Now, I think some of this has to do with with just large scale infrastructure projects, specifically in the United States and Europe take a long time to roll out some of its regulation, but some of it is just in order to see the idiocy of our big government there. So we’re not going to say that I love the quote. From from Brazil. It’s like you are manufacturing a very efficient, very speedy, very handsome car, but you forget to build the roads for it. Oh, well, at least everything with the handsome part applies to, in my opinion, the things that are going on there. I also think the IEA’s assessment that electrical grids around the globe found that achieving these climate goals set by the world’s government would require adding a refurbished 80 million kilometers of power lines by 2044, the amount equal to the existing global grid in less than two decades. We’ve talked about this ad nauseam on the show, guys. It is going we’re going to need to get all for green energy to be pushed hard. The battery situation, the power grid system is going to have to be figured out. And, you know, energy news, the best place to take a look at that,. [00:06:00][123.6]
[00:06:00] Let’s kick over and quickly look at oil and gas prices here on the finance side, we did see the overall markets only, only down basically flat, S&P down about basically flat. NASDAQ down about three quarters of a percentage point. We did see oil prices inch higher, inch lower. You know, Biden did go to the Middle East today. We did see, you know, specifically some some US Venezuela talks that could ease oil sanctions. We covered that a little bit on the show yesterday, but we did see the API. Crude oil inventories are forecast to 4.38 million barrel draw from the Strategic Petroleum Reserve. That number will come out at 10 a.m. as you’re listening to this on Wednesday the 18th. So that buoyed prices specifically in the PM. Again, I think, you know, as we roll into that, they’re seeing what happens with this Israel is Israel-Gaza conflict. It’s clear that as long as that Strait of Hormuz is open, it’ll be interesting to see what happens specifically with that passage. [00:06:52][51.5]
[00:06:52] Finally, to wrap us up quickly here, nat gas producer Chesapeake explores buying Southwest energy. This is out of our favorite friends over at Routers. Chesapeake is looking at buying Southwestern right now. Their stocks trading at about 12 billion, including debt. It’s pretty interesting because if they did combine, they would overtake. Equity is the largest natural gas producer in the United States, presumably by market value by volume to be a little bit different. And, you know, Reuters points out this comes at a time of massive efficiencies. You know, I think the interesting thing to point out, our friends over at Kim Ridge Energy, they’re an activist investor. They’ve got 2% stake in Chesapeake. They’ve they they love this. We love ourselves. Mark Viviano, he’s their managing partner for public equities. Quote, A potential merger between the Chesapeake and Southwest are aligned with their views on industry consolidation. Given the high degree of operational overlap of opportunity for material synergies and revaluation. Opportunity, a.k.a., we’re going to acquire Chesapeake, we’re going to acquire Southwestern fire the staff, lower the DNA and increase the valuation and pump that money back to shareholders. Never been a better time to invest in oil and gas business folks. They’re gutting it. So if you’re if you’re reading this is Southwestern, keep your resume sharp. You know, I wish I knew who was hiring, but it’s not Chesapeake, I’ll tell you that much. It’ll be interesting to see what this goes for in terms of the primary natural gas deal. You know, what they use as the basis for their their their strip pricing. It is interesting. You know, in 2014, Southwestern bought some of the West Virginia and Pennsylvania acreage from Chesapeake for 5.4 billion. So clearly making a nice little turnaround. We love that, guys. [00:08:23][90.4]
[00:08:23] I’m not going to bore you to that, though. I don’t really have much else. Guys, Stu’s going to also, I think, be out tomorrow. So you’re stuck with me again. I’ll make sure to come on with everything that’s happened. But then you look for Stu back in the chair Monday, and we will rock and roll. Appreciate you guys checking us out. World’s greatest podcast and energy News website. Energy News Beat for Stuart Turley, I’m Michael Tanner. I’ll see you tomorrow, folks. [00:08:23][0.0][486.8]
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The post Daily Energy Standup Episode #232 – Climate Concerns, Electrical Grid Challenges, and a Potential Industry Mergers appeared first on Energy News Beat.