Daily Energy Standup Episode #234 – Navigating Energy Realities: Nord Stream 2, Carbon Capture, and Global Energy Challenges

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Germany needs Nord Stream 2 – MP

Why is the Climate Crisis racist where Africa is concerned? The West policies towards Africa are like environmental racism. – Alex Epstien

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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 Standup here on this gorgeous Monday, October 23rd, 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, publisher of the world’s greatest website, Energy News Beat.com, Stuart Turley, my man, how are we doing today? [00:00:37][22.8]

Stuart Turley: [00:00:38] That beautiful day in the neighborhood? I’m back up in their country. My dude. [00:00:41][3.5]

Michael Tanner: [00:00:42] You are back up in Bear country, man. It was a crazy week. A lot. [00:00:45][2.9]

Stuart Turley: [00:00:45] Happened. Oh, it was it it is just amazing what’s going on around the world. [00:00:51][5.6]

Michael Tanner: [00:00:51] Absolutely none the less. Energy news beat is the best place to stay up to speed with all of that. First up on the menu for the show, we’re going to start out in Europe. Germany needs Nord Stream two, and this is out of our Russian news sources. So take that with four for what it’s worth. But yes, Nord Stream two, remember, we haven’t solved that Nord Stream issue, which I think is hilarious. We just blew it. US just blows it up. Everyone else is left to figure it out. I’m going to slide the Ukrainian SEALs, but still will cover everything that’s going on with both Nord Stream pipelines. We’re going to stick. They’re in the EU. Major gas supplier issues warning to EU. Spooky stuff. Crank out the shoes again, guys will burn it. Next up, Navigator CO2 Ventures cancels 1300 mile carbon pipeline project in the US Midwest. In another the back to the kneecaps for the ESG move. Next up, the great great interview that you had written. This one up. Why is the climate crisis racist Where Africa is concerned? The West policies toward Africa are like environmental racism. That’s a quote from Alex Epstein. But really tees up the interview that Stu did with Cyrus Brooks. He’s with the RBAC and specifically Stu talked with him here at the Permian Basin International Oil and Gas Show. So great interview. We will tee that up and then we will end with Bidenomics at work. Green hydrogen is a very expensive waste of money, something that Stu loves lose, loves himself, some green hydrogen. And so turns out it’s an expensive waste of money in a move nobody saw coming so wild segment guys then stool kicker over me I’ll quickly cover the thrashing that really happened in the markets on Friday. We saw the S&P and the Nasdaq both tumble. We saw natural gas get hit hard. And after a rise on Thursday in oil prices, we saw a little bit of a tumble on Friday. So I will cover everything that happened in the finance segment on towards the end and then let you guys get out of here, get back and start your week before we do all that. Guys, as always, remember 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. We like to say if you if you want to be at the tip of the spear when it comes to the energy business, it is important to check out energynewsbeat.com. You can check out the description below for all the timestamps and all links to the articles. Doing the team Do a great job of curating. Make sure everything stays up to speed. We can email the show [email protected]. You can check out our latest data news combo product [email protected]. Get it before it goes away. You never know where it might go. You can also in the description below, get in contact with the show, leave us a review. We appreciate all the feedback we’ve been getting. I’m out of breath Stu where do we want to begin? [00:03:27][155.6]

Stuart Turley: [00:03:28] Hey did we got a heck of a story thread today? I mean, this is just that Germany needs Nord Stream two. And remember, do you remember before somebody blew it up, Why didn’t somebody blow it up? It was absolutely supplying German natural gas and one of the four pipelines survived. So here’s a couple quotes from Chancellor Schwartz. He’s very happy about devastating companies and private consumer. The surge in gas prices leads to the deindustrialization of Germany. To ensure competitiveness, Germany should agree to purchase gas through the surviving branch of the Nord Stream pipeline. Now, remember, this branch in this runs through the Baltic Sea. There was another pipeline blown up two weeks ago in the Baltic Sea from Norway. Oops. So whoever it is, this is like an arsonist. Michael You always see in some TV show, somebody hooked on blow it Up pipelines, as they say in Texas. So. [00:04:43][75.9]

Michael Tanner: [00:04:44] I mean, regardless of whether or not we want to admit it, Germany is still going to need gas this winter and you’re going to have to send it somewhere. So if you if you know, whoever was in the United States, the Ukrainian SEALs, you know. [00:04:58][13.6]

Stuart Turley: [00:04:59] That went out for. [00:04:59][0.5]

Michael Tanner: [00:05:00] Three knows who it was. You know, we can only speculate there. You’re still going to you now have to have to pump all that same amount of gas through now, just one pipeline that we’re about to cover. And I think this is a good segway into it looks like. According to the next article, you’re going to cover that Germany’s gas reserves are actually sitting or the EU’s gas reserves, I should say, are actually sitting at 97%, which exceeds the target of 90%. But there’s still issues here. [00:05:25][25.2]

Stuart Turley: [00:05:25] Exactly. The tie between these stories is pretty amazing. Here is the gas reservoirs, as you said, 97.89 capacity. But in this article, the Equinor CEO, Anders Opel, told the Energy Intelligence Forum, We currently expect the market to be quite volatile over the winter. We will do everything we can to make sure we maximize gas to come through the pipelines, but Europe will be dependent on the LNG. Holy smokes, LNG is not capable of sustaining German businesses because they’ve capped. The reason that they’re up there is because they’ve shut down so many businesses in Germany. Michael. Germany is the number one country with the biggest GDP in the EU. In the EU is now getting clubbed in the back of the head with a shovel for their GDP. The entire thing is having a problem. [00:06:25][59.4]

Michael Tanner: [00:06:26] Yeah, in OC they’re at 97% capacity. But what happens when forecast? The demand is still above that, but you’re still going to be reliant, as the Equinor CEO is saying, on Russian gas flows. So, you know, the fact that now there’s only one operational Nord Stream one. Thank you, Ukrainian seals. I’ll never get over the fact that they tried to say it was the Ukrainians. Those cracks. [00:06:46][19.8]

Stuart Turley: [00:06:46] In the sailboat, in a cell, in. [00:06:48][1.6]

Michael Tanner: [00:06:48] A sailboat, you know, just as likely. That’s true. And I ran out there with a little rowboat, just dropped a few C-4 charges. But nonetheless, it could be spicy. I remember last year we covered an article that you had to they were recommending burning your shoes in order to stay warm. Hopefully it doesn’t come to that. I find it hilarious. I mean this. When did the Nord Stream one blow up? What time of year wasn’t it like in the spring? [00:07:10][22.7]

Stuart Turley: [00:07:11] Oh, no, it was before that in. And Biden even said there will be no gas. He can ensure it. I believe he said that in December. And then shortly after, I think it was February or March. [00:07:23][12.2]

Michael Tanner: [00:07:24] I’m glad I’m glad we’ve got second order thinking, oh, Russia’s not going to be able to send gas. Well, who’s buying the gas? Do you think they need it? [00:07:31][6.6]

Stuart Turley: [00:07:31] And in that, in several other articles, real quick, Michael Putin, he said, why would I want to blow it up? And that doesn’t sound like him, but it’s my imitation to him. He goes, Why would I want to blow it up? I’ve got the turbines right here that Canada couldn’t fix. They got down to one problem. They run some of those pipelines and they need eight. [00:07:51][20.3]

Michael Tanner: [00:07:52] All right, so what’s next here? Let’s come back to the U.S.. [00:07:53][1.9]

Stuart Turley: [00:07:55] Well, this one is actually not the US. Why is climate crisis racist where Africa is concerned? Michael, this was a hoot of an interview. I got to interview Cyrus Brooks, who’s a humanitarian over there at RBC, and I thoroughly enjoyed visiting with him. I was like at the Permian and I had all these people in 30 people in this booth at the air compressor solutions, and we were just loving it. And I’m talking to him. He’s live in Africa at the show. And Alex Epstein was there and brought up some great points the next day. Michael, I got to interview the secretary general of the African OPEC that’s in charge of 18 oil producing countries that carry some heavy weight. He’s a heavyweight down there. Now, let’s go over this article and the in the Energy Monetary Fund, the World Monetary Fund is always tying their money to renewables. In the common theme of the Africa Energy Conference was Africa first. Why are we forced to cover what the the West is forcing on us? When you all pollute, we don’t pollute. We’re trying to survive. And one out of two people in Africa are in energy poverty. This is despicable. So they’re trying to bring why don’t we go ahead and work with them and try to get them elevated out of energy? Think about the markets. And let me tell you what it was in this interview. Here’s the key thing. The West should do this from a business sales perspective, Michael. They’re buying cheap phones now. But think about the iPhone market or the Tesla phone market. If we could get them electricity, they would be hungry for material built out of the West. This is selfish on business thinking they would a love getting elevated out for health reasons. A million people die from smoke inhalation from cooking. This is a new hockey man. [00:10:15][139.7]

Michael Tanner: [00:10:16] And this is something that you specifically have been on for a while. And I think it’s really great that you had an opportunity to interview these absolute heavy hitters. I mean, yes, Dr. Farouk Ibrahim, he’s the secretary general of the Africa OPEC. I mean, that’s to me. Next up is who who’s ever running the real OPEC. So I need to think about a big heavy hitter. These are two awesome interviews. I think you’ve done a great job of kind of over viewing, you know, what they’re going to be. I’m really excited to listen. I’ve had an opportunity to listen to the Dr. Ibrahim one. I have listened to Cyrus Brooks great episode and I think he brings up and again, he hits it’s all the hot points that mean you have been on. It’s it really comes down to what’s good. You know, allowing me to do something without you doing it. We were allowed in the United States and in the West to exploit, quote unquote, the fossil fuel, natural resources. But now we’re saying to another part of the world that wants to take that same step and move up from and completely change the standard of living for their entire country. Huge, huge gas reserves in Africa and gas reserves and energy. [00:11:20][63.7]

Stuart Turley: [00:11:20] Hypocrisy is that’s where Alex Epstein came up with racism and I couldn’t agree with. [00:11:27][7.0]

Michael Tanner: [00:11:28] I’m really excited to keep and covering and keep doing a lot of work with the African Patrol Organization. So look for these two interviews, same feed as would you get this show. You can also check out the article, Energy Newsweek.com. What do we got next? [00:11:41][13.2]

Stuart Turley: [00:11:42] My favorite buddy Biden comics and I don’t know if our producer has time to do this, but I love the picture that the editor put on here. Biden with his Arms. For our podcast listeners, I’ve got my hand over my eyes and he’s kind of pointing like like this. [00:12:01][18.8]

Michael Tanner: [00:12:01] I think he’s pulling a shoulder. I said. [00:12:03][2.1]

Stuart Turley: [00:12:04] I see this. And actually I think he’s trying to say, Don’t tell me I need my depends. I don’t know what he’s doing. Okay, let’s go here. This story is about hydrogen. Hydrogen suffers from the very problem it’s supposed to cure. Part time weather dependent on unreliable wind, solar energy. Hydrogen storage is supposed to function as a part of battery scale, as well as powering cars, trucks and heavy equipment. Michael, I’m busted. I used to really be the hydrogen cheerleader for energy news mean and I mean I love me some hydrogen until I. [00:12:45][41.0]

Michael Tanner: [00:12:45] Actually green blue hydrogen you probably at one point I’m sure we ran a story on red hydrogen. We covered. [00:12:50][4.7]

Stuart Turley: [00:12:51] Them all. We did the rainbow of hydrogen. And here’s the problem with hydrogen. Whoa. Sorry. And I mean, the hydrogen is really about 35. Hydrogen requires massive amounts of full time electricity, 35% more energy than the hydrogen contains. And then for the climate activists, the climate folks in the funny thing about the climate folks is think about all the cars. There are some numbers in this article that are about hydrogen. Create generation creates a lot of water, hydrogen use creates a lot of water. So let’s go in here to more than 5%. You can only pipeline the infrastructure. It’s a smaller molecule. So it escapes, you know, kind of like Steve McQueen in the Great Escape. You know, he’s got a motorcycle over there going over to pipe over the fence. Hydrogen escapes into more greenhouse gases than as anything else. And you can only run 5% in a natural gas line. So you can’t use the same infrastructure because it escapes. So you get actually less than 1%. Okay. So let’s go down here. Biden nomics, which makes everything more expensive by making energy more expensive, spending our tax money lavishly on unproductive wasteful spending for climate ideology are adding to an estimated 33 trillion national debt. Interest payments on this is inflationary. Okay. This is unbelievable amount of Biden nomics and club and baby seals. This is horrible. [00:14:38][107.8]

Michael Tanner: [00:14:39] Yeah. I mean hydrogen. It never made sense to me. I’m going to fill up my car with hydrogen and create a bomb. I mean, it’s the same plan. They’re like, oh, we’re going to have these small modular nukes that run everything. Maybe I got. [00:14:51][12.3]

Stuart Turley: [00:14:52] It. Nord Stream one and two was attacked by people throwing hydrogen cars off of carriers. They didn’t have to do anything. What do you say? [00:15:02][10.1]

Michael Tanner: [00:15:02] I The interest was no harm, no foul. So no, no foul. But I think it’s interesting. I mean, could hydrogen be the future of. Energy? Well, it could be, but there could be a lot of other things that solve it. And I’m always wary when they say, you know, making coke, green, hydrogen. I love this stew. There’s this quote in here. You know, making green hydrogen requires massive amounts of water, 35% more energy than the hydrogen created units, a.k.a., if you put a hundred units of energy, whatever, you know, say 100 jewels of energy into it, you get 65 back. Well, that’s not a great trade. No, that sounds like a lot of shale oil and gas companies say we’re going to drill a $10 million well. It’s going to be worth six and a half, but it’ll be fine. [00:15:47][44.6]

Stuart Turley: [00:15:48] The only way you can make hydrogen is if you got lots of water and there’s going to be a water lot. [00:15:55][7.7]

Michael Tanner: [00:15:56] We’ve got lots of that. We’re not in a drought or anything. [00:15:58][2.0]

Stuart Turley: [00:15:58] Oh, no. In fact, the World Economic Forum said they’re going to start controlling water. So, you know, there’s going to be a battle for you. And then if you have to. [00:16:08][10.3]

Michael Tanner: [00:16:08] Bring that up at the next board meeting for the World Economic. [00:16:11][2.0]

Stuart Turley: [00:16:11] Forum. Oh, yeah, Me and Schwab, we’re going to really talk. [00:16:14][3.3]

Michael Tanner: [00:16:16] To Larry Fink, right? [00:16:17][0.7]

Stuart Turley: [00:16:17] Oh, yeah. [00:16:17][0.2]

Michael Tanner: [00:16:17] And the Saudi CEO or the Aramco CEO. [00:16:20][2.5]

Stuart Turley: [00:16:21] I like him. He’s cool, dude. Now, Bill Gates, not a fan. Now, here’s the thing, though. Let’s go to the next story. I had a brain cramp. I’m senior. I’m here at Bear Country. I just had a brain cramp. Okay. Navigator CO Ventures Cancels 1300 mile carbon pipeline project in the U.S. Midwest. This is systemic. Michael. I used a big word. Don’t fall out of your chair, but this is actually even to get a defibrillator. Your dog just got a defibrillator. Oh, we’re navigator. C02 Ventures is canceled its Heartland Green Pipeline aimed at capturing 15 million metric tons of carbon dioxide annually from Midwest ethanol plants. Here’s me something that’s absolutely a waste of energy. So you sit back and kind of go, this is systemic from people backing out of wind, backing out of anything that is not sustainable. Wind farms are starting to be abandoned. Nobody is bidding on these. Nobody is now trying to permit what they’re doing. Is this one they’ve ask in in application where they are absolutely right, the asking for permitting to be shut down. Michael, can you imagine going up and going to a ref on Saturday, football in college and going, would you please give me a foul because I just did this and you missed it? That’s exactly what this is. [00:17:55][93.9]

Michael Tanner: [00:17:56] But what’s funny is you’ve got guys like the Sierra Club whose was help organizing the resistance. The Sierra Club is against this. The administration. If I’m in the Biden administration, I’d be at least, hey, we’re right here. We’re at least trying to put CO2 into the ground. But we can’t get it passed because the Sierra Club’s now not on our side. It’s hilarious, you think, where everyone would land on these subjects, but then all of a sudden you’ve got the Sierra Club. Who’s organizing, stopping this? Wouldn’t you think they would be the big It would be a huge proponent of this considering taking carbon dioxide out of the atmosphere. Unbelievable. [00:18:30][33.8]

Stuart Turley: [00:18:31] It is today’s theme that we always have tried to do, but very have not explained very well some of the feedback that I’ve gotten on our podcast. By the way, thank you to all of our listeners and all of our folks that are giving us great reviews. Go out and tell your family, tell your dogs, hug your dogs, and give us a lot of great reviews. [00:18:52][21.4]

Michael Tanner: [00:18:53] Yes. Hug your dogs. Your dogs. All right. Let’s let’s go over here and cover what’s going on in the finance markets. We saw we saw the overall markets on Friday drop. The S&P was down about 1.2 percentage points. NASDAQ drops about one and a half percentage points. Oil tumbles a little bit all the way from about $89 sit now 8808. As we record this here on Sunday afternoon, I’m Brant oil trading 92 I’m 67. Main reason for the market’s drop on Friday ironically was because of tensions specifically in in Israel and what’s going on with the Israel-Hamas conflict. There was a few hostages released specifically from the United States which I guess overall markets saw that as a good de-escalation event, which I think eased tensions on oil and gas prices. We did see rig counts come in only moderately up two, which is again, interesting considering the fact that we’ve seen oil now on on really a year long tear here. But I want to bring it back to Israel. Hamas do what? What’s the you know, you’re usually again, on the tip of the spear. This stuff is a ground invasion. As we record this on the 22nd of October, they did start a ground invasion. Israel did, correct? [00:20:05][72.2]

Stuart Turley: [00:20:06] That is correct. [00:20:06][0.4]

Michael Tanner: [00:20:07] And what do you see then happening going forward? What should we expect? At least from a geopolitical. [00:20:13][5.7]

Stuart Turley: [00:20:13] Standpoint, the world is going to stop backing Israel. They’re already starting to back Hamas and they’re the there is a major demand for people already calling for them for Israel to not go in to Hamas. Here’s where I am very disappointed in the Biden administration. They just gave Hamas several million dollars. Hamas, the 20 trucks that they let in for humanitarian reasons, did not go to the people. They did not. [00:20:49][36.2]

Michael Tanner: [00:20:51] So you’re telling me we brought 20 trucks into a place controlled by terrorists and it didn’t get to the people it should know. [00:20:58][7.4]

Stuart Turley: [00:20:59] And so the hypocrisy, again, is against humanitarian issues. There are innocents being killed. And all of this is despicable. But it’s like our other story that we had. The only way that Putin is going to stop going in to Ukraine, which, you know, I don’t think we ought to fund anymore. But the only reason Putin will stop is if NATO’s stops and if Germany starts buying gas again. I think that that seems to be a compromise. We are in two wars now and Biden and his administration is shooting the United States in the foot. [00:21:38][39.9]

Michael Tanner: [00:21:39] Yeah, I mean, it’s it is it’s it’s a travesty what’s going on. And and and we’ll make sure to keep everyone the street Appreciate that. The other thing that happened was it was a tumble of natural gas currently sitting at $2.92. And we were all the way above, you know, 340 earlier in the week mainly. So the EIA weekly lower storage working gas did rise or did you know when I say rise in injection of about 97 Bcf. Usually when we see a withdrawal this time of year considering the fact or excuse me, withdrawal of 97 Bcf instead of an injection again, now we’re in withdrawal season during the summer, we go ahead and inject gas and then in the winter we draw that So range of expectations according to natural gas intelligence, we love them 76 to 100. We came in about 97. And again, rig counts has dropped on Friday only up to really fascinating stew would have expected, you know, conventional wisdom would say rig count should go up. But I think as we’ve delved into it more, there’s a reason why that rig counts are going to be interesting to see where it goes from here, considering oil probably is going to stay at this range for for the time being and see where that rig count again, a year ago, that rig count was was 147 higher. So, again, we will be following that. What else ships do people worried about this week? [00:22:57][78.2]

Stuart Turley: [00:22:58] Oh, that’s a loaded question. You know, there’s a lot going on, but I will make sure that I try to get you informed. And our listeners, I am getting a lot of great feedback from folks and I’ve got some really nice folks from Africa and Europe, as well as the U.S. that are industry experts coming on the podcast. [00:23:21][22.8]

Michael Tanner: [00:23:22] Yep. And again, you can follow it all. energynewsbeat.com Hit us up. Subscribe Apple Podcasts. Sponsored Podcast Sponsor is your right. You know, anywhere in the World Bank accounts open, we talk to our banker. He said It’s good to go. I’ll just take one. We appreciate all of our sponsors that we’ve worked with to get us here and we appreciate everything. I think that’s it, those two to go and let these people get out of here, get back to work. It’s Monday. Survive, guys. We know you’ve got a few meetings that suck, but you you make it through Monday night. Football’s on tonight and we’ll have a great week. You’ll be able to catch everything here. Energy NewsBeat.com For Stuart Turley, I’m Michael Tanner. We’ll see you tomorrow, folks. [00:23:22][0.0][1355.6]

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