September 19

Oil’s Uncertain Future

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Daily Standup Top Stories

Oil Is Not Out of the Woods Yet

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Can the North Sea become a “clean energy super basin”?

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Sounion salvors prep next stage in race to avert Red Sea environmental disaster

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Highlights of the Podcast

00:00 – Intro

01:13 – Oil Is Not Out of the Woods Yet

03:17 – Relying on electricity interconnectors adds to market risk

05:17 – Can the North Sea become a “clean energy super basin”?

07:10 – Renewable Energy’s Rise Creates Challenges for Traditional Power Utilities

08:35 – Sounion salvors prep next stage in race to avert Red Sea environmental disaster

09:54 – Outro

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

Stuart Turley: [00:00:11] Hello everybody, welcome to the Energy News beat daily. Stand up. My name is Stu Turley, president and CEO of the Sandstone Group. And I mean, we’re having way too much fun around here. Michael is out running around on assignment. And I’ve got some stories for you here. Oil is not out of the woods yet. This one is by Irina Slav over at Oilprice.com. We’ve got relying on electricity interconnectors adds to market risk. Energy security is something we all could use. Can the North Sea become a clean energy super basin? I don’t know about that. Renewable energy rise creates challenges for traditional power utilities. You can’t make this one up. And just an update on the. Sounion salvors prep next. Challenger’s next stage race to avert a Red Sea environmental disaster. First, urban environmental disaster is to the hoses blowing up ship. That would be one way around it. [00:01:13][62.2]

Stuart Turley: [00:01:13] Oil is not out of the woods yet. This article is from Irina Slav and this was posted out on Oilprice.com. Crude oil prices revived this week with WTI recovering to $70 per barrel this week being fueled by the Federal Reserve, which just released today that they were going to do a half a point. And it’s actually going to have more expect the number of investment banks and forecasters have revised down the oil price forecast for the remainder of 2024. Morgan Stanley, for instance, revised down its Brant crude forecast for the fourth quarter to $75 a barrel. At the time of recording this, it’s about $70 a barrel from $80 a barrel. Swedish financial major s e b concurs with its chief commodities analyst, also putting Brant average around $75 a barrel. BCA research is very pessimistic. This is quote, The cyclical global growth outlook ultimately suggests that the worst has not yet passed. For the oil market, the path of least resistance is prices down the downside for a 6 to 9 month horizon. I believe it’s, Abrams said. The investors who are long oil should cut back their exposure. Anticipation of lower prices ahead. I’m really not sure on that, but we’ll see how that turns around. A rate cut would probably buoy oil prices for some time and signal the U.S. economy is truly on the mend. We’ll have to see how this is. Here is fund manager Gary Ross told Bloomberg the weakness is at the back of the market. The industry is bearish in 2025. The financials drive the flat price and are hugely short by historical standards. They’re clearly pricing a very poor economic outlook. I think Irina did an outstanding job on this article. [00:03:16][123.2]

Stuart Turley: [00:03:17] And let’s go to the next one here. Energy security for countries is critical. Relying on electricity interconnectors adds to a market risk. You’ve got to control your energy future and control your energy grid in its 2023 Future scenarios. National Grid CSO Engie said to manage I phone call periods, dispatchable thermal power plants, gas and or hydrogen, depending on the scenario, are likely to be required. A combination of these compressed air, energy storage and liquid energy storage. L.A. East Pumped Hydro storage, P, h. S and interconnectors will all be required to manage the network during these period. One thing out of that paragraph that is not being told is the cost. The raw cost of that paragraph is incredible. Interconnector Incredibly expensive. The storage mechanisms that they were talking about are incredibly expensive and it would be a lot cheaper just to use natural gas and a lot less impact on the environment. Ofgem has identified electricity exports as a source of consumer dis benefit. One might assume that the countries from which countries prop up our grid with exports might realize this is bad for their domestic consumers and have a rethink. What you put in a grid interconnect between countries and then you expect that you’re going to rely on another country’s fiscal responsibility. That’s a that’s not something I would want to do as a leader of a country interconnects. Are bad for energy security and long term plans, in my opinion. [00:05:16][119.0]

Stuart Turley: [00:05:17] Let’s go to the next story. Can the North Sea become a clean energy super basin, the North Sea, as potential of becoming a, quote, clean energy super basin and integrating oil and gas offshore wind carbon storage to drive the UK’s energy transition, according to the industry. A chief executive, Stuart Paine. Love is a name spelled the same way as mine. Speaking of the Offshore Energy’s UK annual conference in Aberdeen, Mr. Paine emphasized that the oil and gas industry has the resources and infrastructure to transition to a cleaner infrastructure while continuing to support the UK’s energy needs. I couldn’t agree with this statement more. The UK is not doing their oil and gas companies any favors by by doing the windfall profits tax and not reinvesting in their oil companies. They’re basically, for lack of a better word and excuse me, bastard izing the oil companies in the UK and they will not be around for them to kick around. They may be leaving. You can bookmark this podcast. We’re going to need the best team possible to be successful, Mr. Payne said, calling for a greater inclusion industrial traditional. And he is missing the point in that they’ve got to look at not necessarily saying, Hey, wait a minute, our oil and gas companies can do this. They have the expertise, they can build equipment in a hostile environment, do a great job. They have great people. And I think it’s a great idea, but they have the wrong plan in order to make this thing even work. So the answer is I think they’re dreaming. [00:07:09][112.2]

Stuart Turley: [00:07:10] Renewable energy creates challenges for traditional power companies. Renewable energy generation in Europe has surged over 280% since 2000 and now accounts for more than 50% of the continent’s total power generation. Solar power has been particularly strong growth in recent years due to significant cost declines. However, the rise of renewables has also led to the challenges for the power industry, such as the underlying profitability declines and increasingly competitive energy landscape emerges. Government support for renewable energy is also changing. Renewable projects are underwritten through government support. People are tired of paying these exorbitant energy prices. Renewable energy, when it’s not implemented incorrectly equals deindustrialization. Deindustrialization in Germany is a perfect example. New Jersey, New York and California are following along. You have those kind of green energy policies following along with the left leaning Biden-Harris policies, and you get deindustrialization just like in Germany. Excellent article from right said. [00:08:35][85.0]

Stuart Turley: [00:08:35] Let’s go to the south. So union salver salvage jurors prep next stage in a race to avert the Red Sea environmental disaster. This poor ship was struck several weeks ago by the Houthis and I am surprised it is still afloat. It says a lot for the work being done so they can try to get the oil off of the tanker. But what is not being talked about and I want to bring to light is the amount of extra harm to the environment that the Houthis are actually causing by sending all of the LNG tankers around the world. The records that are being broken by the shipping over through the Arctic regions doing more damage there and the ships and containers that are being lost off of the cape going all the way around this entire mess. I believe that if we had a very good president that actually was paying attention, the Houthis would actually stop blowing up tankers and we would actually have less costs, less supply chain problems and actually have some stop to the Houthis blowing things up over there. [00:09:53][78.2]

Stuart Turley: [00:09:54] So anyway, with that, please, like subscribe share, read this to your pet several times. And then also, if you are looking to buy and sell LNG, jet fuel, oil, crude. Let us know. Go to energy news beat.co Forward slash trading desk. Reach out to me at any time and we want to get you in touch with the right people. Thank you. And have an absolutely wonderful day. Talk to you all soon. [00:09:54][0.0][579.8]

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The post Oil’s Uncertain Future appeared first on Energy News Beat.

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