Daily Energy Standup Episode #237 – Current Affairs in Energy: Jamie Dimon’s Views, Russia’s LNG Trade, and EV Challenges

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Jamie Dimon says central banks got forecasts ‘100% dead wrong’ — and it doesn’t matter if Fed hikes rates again

Saudi Prince Says US Megadeals Show Oil Here to Stay: FII Update

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

Stuart Turley: [00:00:15] Hey, everybody. Welcome to the Energy News Beat podcast. My name’s Stu Turley, president, CEO of the Sandstone Group. We got us an action packed discussion today. Michael’s out on assignment. I think he’s having way too much fun. But let’s get started in here. We’ve got several big stories for you. Jamie Dimon says that central banks got or cast 100% dead wrong. And it doesn’t matter if the Fed hikes rate again. You know, you got to love Jamie. He’ll call it like he sees it. Let’s go over here to Germany and a fly around from around the country here to Germany, Germany, maintaining LNG trade with Russia. This is from Bloomberg. Let’s go to the next story here. We are also, we’re going to cover a story. This is by David Blackmon, and it went out on the Telegraph out of the U.K. Biden would sooner kneel before dictators for oil, then let America produce its own. Wow. David Blackmon does not hold any punches in this article. Let’s go to the next one. Saudi prince says U.S. mega-deals show U.S. oil is here to stay. Boy, he is really pretty good. I’ll see if I can get him on the show. He was on there with Red Bear, but you never know. We’re more fun than Brett. All right. Let’s go here to the last story. GM scales back TV plans as buyers hesitate. This is another systemic story of some serious problems coming around the corner for the TV industry. With that, hey, like a subscribe hug your family, hug your pets, Tell your pets about the Energy News Beat podcast. We are well, well, our 4 million impressions and reads on our article pages. We’re about a million downloads this year and 2023 unbelievable success that we’re having as a team and we just really appreciate everybody’s comments and likes and subscribes. And we’ve had some pretty fun ones and we answer all emails [email protected], not come and check us out on all your favorite platforms. [00:02:41][145.8]

Stuart Turley: [00:02:42] This first article with Jamie Dimon says central banks got it forecast 100% dead wrong and it doesn’t matter what the Fed hikes do. I agree with him. I think there’s a couple of paragraphs in here that are pretty important and it says Fed Chase CEO blasted the Federal Reserve, which has hiked the benchmark federal funds rate between 5.25 and 5.5 on a 22 year high and downplayed the importance of the central bank’s next move. This is him. This is from Diamond. I don’t think quote, I don’t think it makes a piece of difference whether rates go up 25 basis points or more, Diamond said during a panel at the Future Investment Initiative in Riyadh, Saudi Arabia. Per Bloomberg, whether the whole curve goes up a 100 basis points, be prepared for it. I don’t know if it’s going to happen. He noted that inflation was at 8.3% in April 2020 to nearing its peak in 2022 of 9.1, even though the Federal Reserve had requested that Consumer Price index, the inflation gauge would sit between 2.5 and three. And he brings up another good quote here Fiscal spending is more than it’s ever been in peacetime. And there’s this feeling that central banks and governments can manage through all this stuff. They can’t. And I couldn’t agree more with Jamie on this. The next Fed meeting will be October 31st through the first. His other I’m cautious quote from Jamie. I’m cautious about what will happen next year, noting the real need for real leadership to navigate the geopolitical concerns it it’s going to be I have been and called out on a lot of folks by saying that I firmly believe there’s nothing that the Fed can do that will solve inflation unless energy is fixed. The global energy market has to be fixed. It has to be delivering the lowest cost kilowatt per hour to all citizens of the planet with the least amount of impact on the environment through sustainability, fiscal sustainability and being able to continue the low cost is not going to happen. You cannot. Have low inflation without low cost of energy. Germany is losing all of its business because of the high cost of energy. That’s a whole nother story there. [00:05:25][163.1]

Stuart Turley: [00:05:26] Oh, let’s go to Germany coming around the corner here. Germany maintaining LNG trade with Russia. This story is pretty interesting. And even though Russia or Germany is not importing direct from Russia, it is continuing to transport Russian LNG despite the ties. Here’s part of the problem on this. The cargo is being shipped and it’s being shipped to India and it’s not subject to Western sanctions. However, the German owned company is facing sharp criticism for maintaining energy ties with Russia, even after Berlin vowed to stop using Russian gas. So there is a little bit of a play on words in the article, and I believe that this is probably a Christian lie has he is a member of parliament from the opposition left. The economic entanglements with Russia are apparently not as easy to resolve as politicians would have us believe. It is pretty tough to untangle yourself out of these kind of things. That’s how Germany and the EU got into this, is they did not have any long term contracts. Takeover of the former Gazprom last year cost German taxpayers between €6.3 billion and 7.7. Canceling the contract would be as bad as much as 10 billion. So do you cancel the contract or do you go further into debt? I don’t know. Money matters. [00:07:05][99.0]

Stuart Turley: [00:07:05] So let’s go ahead and go to the next one. Tell us your thoughts and let me know your opinions on on that article as well. Biden would sooner kneel before dictators then for oil, then to let oil. Let America produce its own. This is from David Blackman out of the Telegraph. I really love David Blackmon. He is one sharp cat when he’s describing this in this article from a recent low of 450,000 barrels of exports per day. A year ago, Iran was able to export 2.2 million barrels per day in August, and it’s even gone up from there. That increase is the quiet decision of the U.S. to ease off enforcement of the sanctions. The Biden administration says it released all controls of sanctions on Iran that caused the geo political funding of Hamas. And so when you sit back and go here’s a quote from Senator Manchin. On the heels of announcing the smallest five year onshore oil and gas leasing plan in decades, this administration is turning to Venezuela, one of the world’s dirtiest energy producers and oppressor of its own people. Senator Manchin, you are right on this one. And then Wyoming Republican John Barrasso told The Hill that the move shows once again that President Biden would rather go to dictators on a bended knee than to allow the U.S. to use American energy. I’ll tell you what, until we get our energy policies fixed, the Fed’s not going to be able to fix interest rates. We’re not going to have prosperity that we’re expecting. And this is another great line in here. David has has we’ve imposed sanctions on Iran for support to Hamas and other terrorist organizations. It’s going to continue, believe me, said a quoted senior administration official, who was granted and not in being anonymous. Here’s the problem with that. You can have sanctions. You can say you have strict sanctions, but if you don’t enforce them, you don’t have sanction. So Biden administration, it does matter who you vote for. Saudi prince. [00:09:37][151.8]

Stuart Turley: [00:09:37] We’re going to go to the next story here. Saudi prince says U.S. Mega-deals show oil is here to stay. You’ve heard me say on this podcast several times, Saudi Arabia is doing it right with Saudi Arabia first. They are getting to fund all of their social programs through their oil profits. They’re funding their renewable and going to the net zero. That’s important to them on. I don’t agree with their social in their abuse and in some areas I do not agree with their human. Unitarians stance on things on a government and energy policy. They’re running right down the right road on that. So let’s take a look at this, AMD’s said. Ambassador Prince bin Salman said strategy for managing the oil market. The kingdom has to, quote, ensure that we have a less volatile oil market that will help the global economy grow and prosper. And again, he goes he says, quote, I don’t think Exxon would merge with Pioneer for charity purposes. I agree with him there and for Chevron would do that with has is a testament by its own virtue that hydrocarbons are here to stay. And I applaud him for stepping up and going through that. He continues on further on and says oil will see significant demand growth as economies bounce back. Now, let’s come in here to down here. He says that Saudi Arabia and OPEC and OPEC plus he says that they’re really going to target $110 before they start curbing back any production. So we still have a long way to go up before they start cutting back. I thought that was very interesting. And I think it’s going to be very interesting. [00:11:41][123.7]

Stuart Turley: [00:11:42] All right. Let’s go to the next one here. Boy, I’ll tell you what. Renewable energy and ezviz and everything else is just really taking a beating, if you would. GM scales back EV plans as buyers hesitate. Buyers can’t afford it. And that goes back to the other discussions that we had. Detroit automaker boast strong profit but side slowing market for electric vehicles and says it’s losing 200 million a week on the UAW strike. So here’s where there are some numbers in here. In July, Ford pushed back its average output target by one year. In recent months, amid higher interest rates are making for the already pricey cars for more expensive EV buyers. Sales growth has slowed and unsold models are piling up on dealership lots. GM, as we’re talking about here, plan to have produced 400,000 EVs over roughly a two year stretch by the middle of next year, but has abandoned that goal. The laborer is probably part of it, but part of the labor is upset by the fact that EV used to make fewer employees. So now they’re going to go to a right to work state. And so this could really backfire on the unions, rightfully so. I think the unions are trying to do what they feel is best. However, the auto dealers excuse me, the auto companies are putting in record profits except for their EV divisions. So this is really one to watch. I think that you’re going to continue seeing more slowdowns in EVs. So several factors were slowing down. So this is going to continue the delay in this. But you’ve got infrastructure problems that there’s a lot of other problems that are going on in the U.S. these days. Now, you have the labor and you have the fact that it’s going to slow down. I don’t know that it’s going to happen. And here’s where I’m going to say this again. Why don’t we go to hybrids first, use less batteries. You get 50, 60 miles per gallon on the gasoline. You do both. I’m sorry. I think hybrids would be pretty cool. [00:14:13][150.8]

Stuart Turley: [00:14:14] So that’s all I got to say on that one, As Jeannie would say, off of the five. Hey, with that, please send us your questions and q[email protected]. Write to me if you are an industry thought leader, we want you on the podcast if you are in the renewables. If you have any information you want to get your name out on the company. If you want to visit, send me a note, find me on LinkedIn or find me on the bottom of the show notes. I want to interview you. We’ve got some fabulous interviews coming up on The Conversations was due to really have a great one and look forward to seeing you soon. Thank you all so much for all of your support. Talk to all you soon. [00:14:14][0.0][834.0]

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