Daily Energy Standup Episode #344 – EVs, Oil vs. Tech, OPEC Calls, Fed’s Inflation Struggle, and Maritime Nuclear

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Buttigieg rejects critics of EV future: Like people in 2000s saying we could have landlines forever

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Michael Tanner: [00:00:15] What’s going on, everybody? Welcome into the Thursday, April 4th, 2024 edition of the Daily Energy News Beat stand up. Here are today’s top headlines. First up, Buttigieg rejects critics of EV future like having people in the 2000 saying we could have landlines forever. Now that next part’s a little stupid. So we I could sniff that one out. Next headline big oil is beating Big tech as eyes turn to crucial OPEC meeting. We love it. Next up OPEC plus committee calls on members to compensate for overproduction. A quick overview of what happened to the Joint Ministerial Monitoring Committee monthly meeting. Great article there. Next up, Steve Cohen says the fed may have a hard time getting inflation down to its goal. Interesting. And finally, in the news segment new Association for Maritime nuclear Creative Jess. But we needed another association to do will then toss it over to me. I will quickly cover what happened in the overall oil and gas markets today. Really not much happened besides a really nice price increase for oil, and we also saw crude oil inventories drop in a really interesting surprise relative to what we were expecting, what we covered yesterday. We will cover all of that and a bag of chips guys. As always I am Michael Tanner joined by Stuart Turley. Let’s do it. [00:01:35][80.7]

Stuart Turley: [00:01:36] Again. Let’s start with our buddy Mayor Pete over here. Let me get to that story. buttigieg rejects critics of EV future like people in the 2000 saying we would have landlines forever. I want to just give him a little bit. Hey, Mr. Buttigieg, if you are listening to this podcast, I would love to have you come on this podcast. I got a few questions for you. And when we sit back, I’m old enough to know, a I know Moses personally, but I’m old enough. [00:02:10][33.7]

Michael Tanner: [00:02:10] I have this you’re old enough to do you. You go back a ways. [00:02:13][3.3]

Stuart Turley: [00:02:14] Yes, I do, me and Moses are buddies. And when we sit back and take a look at whether or not when did landlines come around, it was because of the market adoption in technology. And so it was I mean, I remember having a line phone line and it was a party line and everybody big piles in, can I do this? And your neighbor up the hill was a psychopath and you didn’t know what was going on. Let’s get back to this story. When America reports, anchor Sandra Smith reported on cuts to the workforce for the Ford F-150 Lightning in Dearborn. One third of the workers will remain big boys. All of the, you know, all of the big boys are cutting out their for their GM in the, union folks didn’t do it. Biden killed union job. What a chowder head. Tesla is facing more competition as GM and Ford and Stellantis and other competitive players start to make the piece of the EV market. I agree with you, my, Michael, I don’t see Tesla losing out, because I people are going to buy a Tesla. Oh yeah, it is absolutely way to go test. Love me some Tesla. [00:03:39][85.2]

Michael Tanner: [00:03:40] Well, I think what he what he says is in the wake of declining Tesla sales, this is his quote. Let’s be clear. The automotive sector is moving towards EVs and we can’t pretend otherwise. I don’t know if the overall Tesla’s gaining market share. Yes. Are EVs not as much as you would think. I think that’s, you know, interesting. I love the you know, we love the land line comment. But I mean, it makes sense. I mean, Buttigieg’s got no clue what’s going on. [00:04:07][26.7]

Stuart Turley: [00:04:07] No. And and I want to, if I miss produce or if you could pull up this Tesla. I want me a Tesla Cybertruck. I want me to say it is bulletproof. I need me a bulletproof car right here. [00:04:21][14.2]

Michael Tanner: [00:04:21] Look, it’s going through the water. It can’t work. [00:04:23][2.0]

Stuart Turley: [00:04:24] Beep beep beep beep. You know, you don’t know me. This is kind of like Biden when he’s doing a speech, you know? Okay. [00:04:33][8.9]

Michael Tanner: [00:04:33] All right. [00:04:34][0.2]

Stuart Turley: [00:04:34] Let’s let’s let’s move on. What’s next? Yeah. Okay. Big oil’s beating. Big tech. His eyes turned a crucial OPEC meeting, I mean. Okay, we’re going to change to Gene. We get to have a little money. Most investors coming out of 2024 not expecting anything out of energy I disagree. I think oil in gas investments is still some of the best that’s out there. As far as far as performing, let me give you this one right now. Investor sentiment could go either way. Pickering Energy Partners chief executive Dan Baker. Who has been on the podcast before. Said he liked Energy’s first quarter number of people on 1.5 episodes in trying to commit whether or not they want to binge this season in Q2 may be the point where, you see, I’m staying up all night. Now, here’s where I think it’s going to happen, but I can’t come up with a price for oil. No, no, but B of A. He said today that they see $90. Now I still think it’s $70 oil and $80 oil. The oil the publics are going to be giving money back to their investors. The privates are going to be giving money back depending on the deal. And you and I have been covering a lot of deals. [00:05:58][83.9]

Michael Tanner: [00:05:59] Yeah. I think from an equity standpoint, you know, this is specifically looking at the energy select XLE, you know, index fund, which is just pegged to top energy companies. And it would make sense as we’ve seen prices rise. So will energy equities go. That’s really all you’re playing. If you’re playing energy equities now within energy equities there are companies that are doing better or worse. Yes. Check out the deal. Spotlight shameless plug. We’ve got a new episode coming up next week. Ford and R plus we did with John Farrow. We love the people over at Well database. Trust me guys, we love that people check them out. But we looked at a bunch of interesting stuff and, you know, it really when you get into the which oil equities do I want to play? There’s a lot of different nuance. But as a whole, yes, I would expect oil to be outpacing tech. Tech is in a little bit of a recession right now. People have sort of it. It’s been a little bit overblown. I mean, the stock market is at all time highs. You got to take Nvidia out of it. So if you look at just like traditional technology and without oil and gas is crushing it, the only reason why it’s somewhat close is the fact that India has just basically gone exponential because of, you know, the boom in it. And as they should, more of a hardware play there, a little bit of a software. But you know, we can wrap them up in tech per se. So super interesting. Considering the fact that, oil’s beaten, you know, 13% versus 8.5%. So that arbitrage this time, you’d be great. [00:07:28][89.2]

Stuart Turley: [00:07:29] Oh, absolutely. You gotta love it. Hey, let’s go to OPEC here. OPEC plus this one is full of Holy smokes Batman. Oh OPEC plus committee calls on members to compensate for overproduction. Let me give you a quote out of here that GMC held a brief regular meeting today is widely expected. Did not recommend the OPEC plus ministers to change current levels of oil production cuts. However, the panel, which does not decide policy but only recommends the course, said it welcomes the pledge. Blah blah blah. [00:08:05][35.9]

Michael Tanner: [00:08:05] Recommends. [00:08:05][0.0]

Stuart Turley: [00:08:07] Recommends. Here’s where I got a little bit of a, good, question on it is Iraq. Venezuela and some of the other rogue nations are going to do everything they possibly can. They’re going to just pump out everything they can. One of the wild cards is Russia with Ukraine in the, drones taking out a big chunk of their downstream, which affects how much crude they can pull. Now, Russia’s natural gas is running like you wouldn’t believe. They’re selling everything they can pull out of the ground. And natural gas and LNG to Asia and everywhere else. So, pretty interesting. OPEC plus agreement will produce no more than 4 million barrels of crude. And Iraq’s oil minister. [00:09:02][55.3]

Michael Tanner: [00:09:04] Yeah. Well, I mean, they’re they’re they’re seeing prices continue to rise without cut. Why cut off price? They’re continuing to rise if the geopolitical tensions are going to happen and if Russia’s going to continue to pull back, there were fires. Why cut if even if they’re trying to put the squeeze on Biden? [00:09:18][14.2]

Stuart Turley: [00:09:18] Well, here’s where I still think the dirt fleet’s picking up. I think another 15 to 20. I know you love you just laugh every time I do Dark Fleet. The Dark Fleet tankers are being, sold off again. And there’s another big chunk of them. About 22 of them are being bought right now. Of those 22, they’re going to be going in. So the, you know, I wouldn’t want to be a transponder salesman for the, you know, fleets and everyone. [00:09:48][30.0]

Michael Tanner: [00:09:49] No. Absolutely. All right, all right, what’s next? [00:09:51][1.9]

Stuart Turley: [00:09:51] Let’s go to the feds. I want to ask you a question on this one, Michael. Steve Cohen says the fed may have a hard time getting inflation down to its goal. Let me give you this one. The fed thinks this is, quote, the fed thinks eventually going down to come down the 2% inflation rate. I think that’s going to be hard, Cohen said. See in books and. Ross Sorkin on Squawk Box. I don’t think they’re going to get anywhere near it. And I think that, the effective inflation rate is around 20%. 18.5% when you take food, gas, energy and Biden Nomics is just going nuts on it now. What do you think? I don’t think they have any way to do it. [00:10:38][47.0]

Michael Tanner: [00:10:39] I mean, these people occasionally, I mean, these people occasionally show their stripes. I mean, this is this quote scares me out of Steve Cohen. If growth is too fast, you start getting constraints on labor and wages go up. Oh, no. Wages might go up the war, you might make more money, folks. And that’s not good for Steve Cohen. So I read this quote and it just made me sick. You know, God forbid wages go up for the working person. [00:11:01][22.5]

Stuart Turley: [00:11:02] Well, let me let me throw this squirrel at you. This is an ugly baby, actually being dropped off at a doorstep. And that one is, the California this week just had their, fast food of any chain restaurant chain of more than 100, locations had to raise their, wages to, $20 an hour. And there are, fast food restaurant people being laid off everywhere. And then in the jobs market, another one came in and said, oh, the jobs market is going to stay low. And in, jobs numbers are going to stay low because of the, illegal migrants coming in. And I’m like, you can’t win for losing around here trying to, you know, get the inflation. [00:11:53][50.7]

Michael Tanner: [00:11:53] I’m I’m against mandating companies pay certain rates. What I would like to do is set up an environment in which the incentives for an employer, because of the competitive nature of the environment dollar, they’re forced to pay $20 an hour. So that’s. [00:12:08][15.0]

Stuart Turley: [00:12:08] Where it’s. [00:12:09][0.4]

Michael Tanner: [00:12:09] Like Steve Cohen says, I don’t want wages to go up. That means he’s in favor of government intervention that keeps and suppresses wages so he doesn’t have to pay more. And, you know, as someone who’s an investor, what’s the biggest line item on an on a company’s balance sheet? Payroll. I wouldn’t want it to go up 10%. So that’s what I’m talking about. The competitive I want the competitive market environment to dictate that fast food workers make $45 an hour. Now, that’s never going to happen, per se, but you get what I’m saying. I. [00:12:41][31.6]

Stuart Turley: [00:12:42] I, you and I are in this. [00:12:43][1.3]

Michael Tanner: [00:12:43] I’m interested in whether it’s setting a floor or a ceiling. [00:12:45][2.2]

Stuart Turley: [00:12:46] Oh, absolutely. Hey, let’s. [00:12:48][1.6]

Michael Tanner: [00:12:49] Now that’s a can of worms we’d open up later because trust me. Yeah, sandstone loves ourselves some good. The $85 oil is a lot of money to be spread around. You know, it’s a double of the ten to the next one. [00:13:01][12.3]

Stuart Turley: [00:13:02] Yeah, yeah, we’re. Both of us are saying let’s go to the next. Nuclear new association for maritime. Nuclear created I love me some nuclear and global group of companies. This is called memo. Now is this like. Oh, Ray wasn’t Ray Bradbury, but whoever wrote, Germany, the bottom of the sea, nuclear energy Maritime Organization memo, to be headquartered in, London, officially start second quarter 2024. That’s now, will provide expert guidance and promote the highest safety and security environmental standards. We need to go to nuclear for every single big ship we possibly can. It can be done safely. [00:13:54][52.3]

Michael Tanner: [00:13:55] And let’s just put California in charge, and it’ll cost $300 trillion. [00:13:59][4.1]

Stuart Turley: [00:14:00] Oh, you put any U.S politician in there? I don’t care if you’re Democrat or Republican. They’re going to make money on it. It’s great. [00:14:08][8.0]

Michael Tanner: [00:14:09] I do love the name of this nuclear energy maritime organization otherwise known as Nemo, IMO. [00:14:14][5.4]

Stuart Turley: [00:14:15] Yes. And you know, it’s like during journey, not during the bottom of the sea, but. What was his? Never mind. [00:14:26][11.4]

Michael Tanner: [00:14:27] Elmo. The map, finding Nemo. [00:14:30][2.3]

Stuart Turley: [00:14:31] Come on. Dude, I’m. I’m all. I’m. Never mind. [00:14:33][2.7]

Michael Tanner: [00:14:34] Hey. You’re right. You didn’t have. [00:14:34][0.7]

Stuart Turley: [00:14:35] Jules Verne. That is a kid. Jules Verne. Jules Verne. [00:14:38][3.3]

Michael Tanner: [00:14:39] Oh, I see 20,000 leagues. [00:14:40][1.8]

Stuart Turley: [00:14:41] Under the sea. Maybe that’s a real story. Finding Nemo, some lame little dory fishing. [00:14:48][7.3]

Michael Tanner: [00:14:49] I mean, that’s called. [00:14:50][1.1]

Stuart Turley: [00:14:51] Sounder. [00:14:51][0.0]

Michael Tanner: [00:14:52] Considering the name of the organization is Nemo. I figured you were just making a reference to a very famous movie that, like most people know about. [00:14:58][6.7]

Stuart Turley: [00:14:59] Oh, the only reason I know it’s because my grandson. [00:15:00][1.5]

Michael Tanner: [00:15:01] I was going to say at some point. You’ve seen it? [00:15:03][2.0]

Stuart Turley: [00:15:04] Yes. No, I haven’t seen it. I’ve only seen the little fish that I play with him. You know, it’s like, oh my God, I’m so sick of them. Back to you, dude. [00:15:12][8.4]

Michael Tanner: [00:15:13] All right, well, we’ll pay the bills here before we move in to finance, guys. As always, check us out. World’s greatest website. Energynewsbeat.com. The best place for all your energy and oil and gas news soon. The team do a tremendous job keeping that website up to speed. Everything you need to know to be the tip of the spear when it comes to the energy and oil and gas business. Check us out in the description below. All the links to the articles. All the timestamps. Check us out. Dashboard.energynewsbeat.com. Our data news hybrid combo got some great new things we’re working on. partnership. So please check us out again as always www.energynewsbeat.com. [00:15:45][32.8]

Michael Tanner: [00:15:49] I mean I’ve really got two things to cover here in finance guys in the overall markets you know fairly flat today. We’re only up about 10th of a percentage point on the S&P 500. But a two quarters of a percentage point. excuse me a quarter of a percentage point on the Nasdaq. S&P trading just a little bit above 5210 Nasdaq up above 18,000. We saw two year ten year yields drop a little bit, about three quarters of a percentage point for the two year. The ten year, about one tenth of a percentage point to that two year. Doing a a little bit worse dollar index, fairly flat. Oil prices continue to run. We’re up about 6/10 of a percentage point. Settle again at a five month high, at 85, 65 or 8567. We were on a little bit of a run until the EIA decided to come in and drop a crude oil inventory number of 3.2 million barrel build miss produce. If you can throw that image up right now. [00:16:42][53.6]

Stuart Turley: [00:16:42] Yeah. Wow. [00:16:43][0.3]

Michael Tanner: [00:16:43] You can see man. Whoa. 3.2 million barrel build for the Strategic Petroleum reserve. We also saw, we also bought about 600,000 barrels for the treated petroleum reserves. So overall inventories up 3.8 million, barrels. We saw motor gasoline drop by 4.3 million barrels. We saw fuel ethanol up 300,000 barrels, distillates down 1.3 million. So crude oil inventories, continue to be interesting. Really kind of held back where prices up above 86 before landing. As I said in that middle of that 85 range. Brant oil not quite above we quite 8983 as we record this stew. So it’s, it’s close. Will be rolling over to that 90 soon. You know, really the, the only other thing, you know, and that’s really all I’ve got. I mean, I’m looking at the story, stew, you know, you know, we not much really happened. Kind of all quiet on the Western front for oil and gas. As I mentioned, we’ve got a great deal. Spotlight. We covered the cord and or plus merger and and, you know, previewed a little bit of what might happen to watch for that next week. Excited to roll that out. But that’s about all I’ve got. Stew. [00:17:52][69.1]

Stuart Turley: [00:17:53] Wow. [00:17:53][0.0]

Michael Tanner: [00:17:54] Cool off. What are we watching for before we let them go? [00:17:57][2.6]

Stuart Turley: [00:17:57] Oh, hey, I got lots of stuff going on. We’ve got, some big ones coming out this weekend. Let’s see here monday.com. Let me get my Monday quarterback going on here and, energy news meet. Let’s see what productions got done. Nothing up my sleeve. We have, Gifford Briggs just went out. We have JT and with Tonja associate, and we have Irene Islam coming out. And we have several others that are in production. [00:18:33][35.6]

Michael Tanner: [00:18:35] Yeah. No absolutely great guys. So appreciate preciate that. Look for that energy news podcast. We’re going to let you get out of here though guys. Appreciate it. thanks for checking us out. World’s greatest podcast. We’re off tomorrow or we’re off Friday. You’ll hear. Who are you going to hear tomorrow of that list? Who are we going to run? Who do you think? [00:18:52][16.7]

Stuart Turley: [00:18:53] It’s either going to be Irene. I have to go back up here. Let me go back up. It’s either going to be Irina or JT. It’s going to be a good one I like. Yeah, TS was good on M&A. [00:19:03][9.8]

Michael Tanner: [00:19:04] Yeah. We may have to check out JT there. And then on Saturday you will hear the weekly recap. So tune in for that Sunday we’ll take the day off and we will be back in your ear on Monday. Have a great weekend guys. We will talk to you very soon. [00:19:04][0.0][1089.3]

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The post Daily Energy Standup Episode #344 – EVs, Oil vs. Tech, OPEC Calls, Fed’s Inflation Struggle, and Maritime Nuclear appeared first on Energy News Beat.

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