Daily Standup Top Stories
Solar Panels Are More Carbon-Intensive Than Experts Admit
By C. P. Colum and Lea Booth in collaboration with The Blind Spot. Last August, in an amalgamation of ‘The Green New Deal’ meets ‘Build Back Better’, President Joe Biden’s Inflation Reduction Act gifted the […]
Bolivia’s Economic Upheaval Threatens Renewable Energy Development
Just four months after agreeing to give a Chinese consortium led by the lithium-ion battery manufacturer, Contemporary Amperex Technology, control over the development of Bolivia’s lithium deposits, Bolivia’s economy is undergoing a severe crisis. For […]
Highlights of the Podcast
00:00 – Intro
02:19 – Solar Panels are more carbon intensive and experts admit
07:47 – Bolivia Economic upheaval threatens Renewable Energy Development
08:55 – Market Updates
12:50 – 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, July 06, 2023. As always, I am your humble correspondent, Michael Tanner, coming to you from an undisclosed location here in. Dallas, Texas, rocking a solo show today Stu is out on assignment, so we wish him well. We will see him back here for the Monday show, remember, tomorrow is the weekly recap. [00:00:39][23.8]
Michael Tanner: [00:00:40] Never fear, though we do have a pretty great show lined up, we’ve got a lot of stories I don’t know how in-depth I’ll cover all of them. But First up on the menu, this is the one I will probably cover the most. Solar Panels Are More Carbon-Intensive Than Experts Admit in something that we’ve been preaching for years I’m excited to dive into some of the numbers here. [00:00:58][17.8]
Michael Tanner: [00:00:58] And then we might lightly touch them we’ve got Bolivia’s economic Upheaval Threatens Renewable Energy Development it sounds like something we should cover with Stu. And then I just had to throw this in here. We won’t cover, but Nuclear Diesel a Game Changer. So if you if you two did hear Stu’s thoughts on nuclear power, we will make sure to cover nuclear diesel next week that seems insane. I’ll finish by talking a little bit about what happened with oil prices we are currently trading about 71,90, which is really catching up with WTI having the day off yesterday. [00:01:26][27.7]
Michael Tanner: [00:01:26] We did see the API come out and drop their estimates of what tomorrow will see or as you listen to this on Thursday, what you’ll see from the EIA in terms of crude oil storage reserves and then we did see a little oilfield services M&A, Patterson UTC buying Altera drill bits all dive into why I think it’s a pretty wildly expensive price but we’ll cover that when we get to it. [00:01:47][20.6]
Michael Tanner: [00:01:47] But first guys remember all of the stories I’m about to talk about is courtesy on the world’s greatest website, www.EnergyNewsBeat.com the best place for all of your Oil and Gas in energy news. [00:01:57][10.1]
Michael Tanner: [00:01:57] Stu does a great job of curating that website, making sure it’s up to speed. Team does a great job of making sure it’s up to speed as well so shout out to them. Dashboard.EnergyNewsBeat.com again the best place for all your data energy news combo get it while you still can. We are hard at work trying to throw that behind a paywall, so I get it while you still can. [00:02:14][16.3]
Michael Tanner: [00:02:15] Let’s start with the Solar Panel one I think you know the title of the article Solar Panels Are More Carbon-Intensive Than Experts Admit this is by C.P. Collum and Lee Booth in collaboration with the website The Blind Spot you can check it out at EnergyNewsBeat.com. But really what this is is is talking about is information that was unearthed by the Environmental Progress organization. [00:02:36][21.2]
Michael Tanner: [00:02:37] So basically what this is all saying is that what you’re hearing about the carbon intensity of photovoltaic, which whenever you hear the words photovoltaic, think solar is a fancy way of saying solar and really solar PV is what you should call it, because there are other types of solar energy. [00:02:54][16.8]
Michael Tanner: [00:02:54] But to give you an idea, there’s this guy out of Italy who’s been doing some interesting work who tells you that the IEA is fudging the numbers a little bit. So to give you an idea, remember, we’ve got the IPCC. What is the IPCC? The IPCC is the international well, it’s I don’t actually know the terminology let me look this up it’s the it’s the climate change organization, Yes. The Intergovernmental Panel on Climate Change. [00:03:22][27.8]
Michael Tanner: [00:03:22] So this is kind of the all seeing eye of climate change they’re the ones every year that put out there. Here’s what’s going to happen, we’re all going to die because of climate change, which they actually don’t. It’s interesting, you’ve used the guys like Michael Shellenberger, the guys like Bjorn Lomborg they’ll tell you if you actually read the IPCC reports, the inter panel, even the Intergovernmental Panel on Climate Change, you would see that they’re not actually is doom and gloom as maybe someone like AOC would like to make them out. [00:03:48][25.9]
Michael Tanner: [00:03:49] But what they come out and say, the IPCC claims that Solar PV solar energy is basically consuming 48 or emitting 48 grams of CO2 per kilowatt hour. And this Italian researcher, Enrico Mariutti, was drinking wine in pasta and figuring that this number based on his research is a little bit closer to 600 to 1200 grams of CO2 per kilowatt hour. [00:04:17][28.9]
Michael Tanner: [00:04:18] If that is true, to give you an idea, Natural gas with Carbon Capture is around 50, and without Carbon Capture it’s 400 to 500. So even without carbon capture, natural gas feeds what solar may or may not be. Now, again, we have to trust this Enrico Mariutti guy do we trust him? So let’s come down, let’s come down and take a look at what he’s got going on here. [00:04:41][23.4]
Michael Tanner: [00:04:42] So what he’s saying, he first noted something wasn’t quite right with these photovoltaic assessors About two years ago, he was preparing for an online renewables debate with Niccolo Ahmadi, a research director at the Italian Research Council being a data judge, he decided to pore over the source module and try to figure out why. [00:04:56][14.8]
Michael Tanner: [00:04:57] What he discovered unnerved him the data didn’t reconcile. Remember, guys, he holds a degree in Geopolitics and Global Security, which, while unrelated to the field, equipped him with enough Quantitative skills to ensure that he can recognize between good and bad data that’s key, I was having this debate at work today. [00:05:14][17.2]
Michael Tanner: [00:05:15] The model is only as good as the data going into it, the website is only as good as the data going into it. People want to see a report while the report’s made of numbers, all the numbers, right? No matter how well your report sucks them. [00:05:29][14.2]
Michael Tanner: [00:05:29] So I like what this is good to see there’s a there’s a skill and having enough what they would call quantitative skills to understand the difference between good data, bad data, how you get to good data, how you don’t get to good data. I think this is absolutely critical. His quote is The data showed how much solar fatigue systems are used in terms of raw materials silicon, aluminum, copper, glass, steel, silver then I saw the carbon footprint it just seemed way too small. [00:05:55][25.4]
Michael Tanner: [00:05:55] According to his findings, the carbon intensity of these solar panels manufactured in China and installed in European countries like Italy was likely off by an order of magnitude his initial back of the envelope calculation put it between 170 and 200 grams of of carbon dioxide per kilowatt hour as opposed to the official estimates, but then he up those as he moved on. [00:06:14][18.8]
Michael Tanner: [00:06:14] But I mean, to give you guys an idea, people are coming to the conclusion that solar is not better for the environment than natural gas, specifically with carbon capture. I mean, you talk about 50 grams of carbon dioxide per kilowatt hour that’s pretty good, that’s good that’s going to not do climate change. [00:06:31][16.6]
Michael Tanner: [00:06:31] You know, I’m again, I’m not an expert on this stuff, but if you’re telling me 40 is photovoltaic, if that’s what the IPCC is telling us. Yeah. Because IPCC is saying, 48 staying with Carbon Capture, it’s the same? Interesting, although they rounded up to 50, they get quite say it’s the same. [00:06:46][14.5]
Michael Tanner: [00:06:46] They got to say solar is 48, natural gas 50 but you know we see the IPCC the same data analyst they share data analysts with the IEA. So we know you’re getting the best quality data analysis and whatever. So very interesting, you guys, Solar Panels, they’re more Carbon intensive than we thought. Again, in a move nobody expected. [00:07:06][19.9]
Michael Tanner: [00:07:07] We’ve got Bolivia Economic upheaval threatens Renewable Energy Development, I don’t really care as we just saw in the last article, who cares. It was probably means I mean it’s not good for them as do would say well I’m probably being a little bit too coy. [00:07:19][12.1]
Michael Tanner: [00:07:20] But to give you guys the idea they’ve got huge amounts of lithium reserves, that’s really what it comes down to when we talk about renewable energy development we’re not talking about they’re throwing up wind farms we’re talking about we need to extract minerals from them so the rest of the world can go EV. [00:07:32][12.0]
Michael Tanner: [00:07:32] That’s the sad part about it, it’s EV for me and not for you. Clean energy for me, but not for the It really is. Who cares about Bolivia? They’ve got a lot of lithium it’s insane. And now we’re going to be shoving Nuclear Diesel in our cars, we’re going to cover this, when Stu get back. [00:07:47][14.9]
Michael Tanner: [00:07:47] Nuclear Diesel you will never get me to put something in my car that says Nuclear Diesel. I’m sorry. You have to convince me otherwise you’re going to have to do a lot of tests before I start throwing nuclear diesel in my car that’s all I have to say about that the rest of this news will cover on Sunday night when Stu get that to you out Monday Morning ASAP. [00:08:07][19.5]
Michael Tanner: [00:08:07] From a finance perspective, guys, we did see oil prices rise to about 71,90. Again, we we had the markets closed for July 4th. So really what we’re seeing is a catch up to Brant, really backed by two things. We saw the API come out today forecast about a 4.4 million barrel draw. The EIA will confirm that to confirm or deny that tomorrow. [00:08:26][18.4]
Michael Tanner: [00:08:26] You know, we also did see Saudi Arabia come out today extend their voluntary cuts which extend their lollipop, as they called it, of 1 million barrels per day they extended that into August.Russia and Algeria also are lowering their August output and export volumes, which is critical at this time by about 500,020 thousand barrels respectively. So at least 20,000 barrels a day. We’ll take it. Well, that’s barrels for those barrels a day you know. I’d love to have 20,000 barrels a day flowing into my tanks. I don’t know, unfortunately. [00:08:55][28.8]
Michael Tanner: [00:08:56] But, you know, I think what you’re seeing on the oil side is, is prices are going to continue to be stabilize as long as they keep cutting the question is, how much is Saudi Arabia willing to cut? They’re going to be the driver of this 20,000 barrels from Algeria to do it, you know what I mean they aint gonna to do it? It’s going to take a little bit more a little bit more help. [00:09:14][18.5]
Michael Tanner: [00:09:15] Natural gas prices, $2.66. You know, don’t get don’t let natural gas fool you it loves to be loved don’t don’t pull the mistake that I did getting sucked in to being a bull map to 60 it’s back in the right direction. You know, we’ll see natural gas inventories drop on Friday, so we’ll get a little better of an idea there. [00:09:33][18.2]
Michael Tanner: [00:09:33] You know, we did see a little bit of an oilfield services M&A. Patterson UTI I remember they last week bought next tier oilfield services actually merged with them to form about a $5.4 billion firm but Patterson knew Charles may be bigger than them. [00:09:47][13.2]
Michael Tanner: [00:09:47] They go out and go ahead and scoop up Ulterra drilling technologies if you if you’re in the patch you know them is just the bit people they actually gave me at one point a couple months ago or like six months ago, I got free tickets from them to go see I’m a Ranger. So I texted, I texted my boss today and I said and I said, Are we still getting I almost I was like, oh, we’re still getting tickets to the next star, still getting Rangers tickets? He didn’t know. [00:10:12][25.4]
Michael Tanner: [00:10:13] So hopefully they still keep bittersweet I’m hearing all that would be dope you know how to keep and keep the tickets flowing to me. I’m down, but they scoop them up 370 million in cash and 34.9 million Patterson, UTI shares kind of insane that’s like a $700 million valuation of a, you know, basically $180 million worth of EBITA that’s a three, four multiple. So a little high, a little high for a bit company, a little bit. I get the day I get that one, I get to do other stuff, you know, a little high, a little high. [00:10:44][31.3]
Michael Tanner: [00:10:44] Blackstone, who’s the controlling entity of of what was Ulterra it got a good deal on this got a good deal on this. They got some cash and they got some shares they got a little bit, a little bit upside and they got a little bit of sugar and be interesting to see what they use that for but I a little bit rich for my blood, a little bit rich for my blood. But as long as they keep them tickets low on my way, I don’t care. [00:11:05][20.7]
Michael Tanner: [00:11:05] Again, it all comes down to how I feel. No, mind you, what the market feels. I think that’s about it guys, I don’t have anything else on my desk. You can always email us [email protected] for Stuart Turley and Michael Tanner, folks we’ll see you tomorrow on the weekly recap and it we’ll see you Sunday to kick the week off. Have a great one! [00:11:05][0.0]
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