Spain’s Solar Blackout: What Happened?

ENB Pub Note: Lawfare and energy hypocrisy run deep in the Democratic supermajority in Hawaii. It is truly a shame that physics and fiscal responsibility are nowhere to be found on the beautiful islands. They […]

ENB Pub Note: When the United States or China need additional money, they just print more than what they need. That system is set up for failure, but when Russia, Iran, Iraq, and other OPEC+ […]

ENB Pub Note: Michael and I will cover this article from David Blackmon’s Substack on our Daily Show. We highly recommend subscribing to his and our Substacks. David is at Energy Transition Absurdities Alright, folks, […]

Highlights of the Podcast

00:00 – Intro

02:28 – Why Spain’s Rooftop Solar Owners Weren’t Spared From the Blackout

05:19 – House Votes To Overturn Biden-Era Rule Letting California Impose EV Mandate

07:55 – Why is Grid Inertia Important?

10:40 – Hawaii Backs Natural Gas To Cut Emissions, Then Sues Oil Companies Anyway

16:27 – Markets Update

18:15 – Saudis Warn of More Supply Unless OPEC+ Cheats Fall in Line

26:34 – Ranking the Major Oil Company Q1 Results

33:21 – Outro

---

Follow Michael On LinkedIn and Twitter

ENB Top News

Energy Dashboard

ENB Podcast

ENB Substack

ENB Trading Desk

Oil & Gas Investing

---

– Get in Contact With The Show –

---

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

---

Stuart Turley: [00:00:00] And a power grid on fossil fuels including LNG. They don’t have an LNG plant yet. We couldn’t even get it to them. We’d have to buy it from Russia because we have the Jones Act. [00:00:13][13.1]

Michael Tanner: [00:00:13] It’s exactly what I was going to say. That’s the craziest part about this whole thing is the Jones Act. For everybody who doesn’t know what the Jones act is, the Jones acts says that in order to ship energy, and in this case we’ll call it fuel, liquid-fired petroleum, LNG, whatever you think about it, if it goes from a United States port to another United States or dish. What’s going on everybody? Welcome into the Monday, May 5th, 2025 edition of the Daily Energy Newsbeat Stand-Up. Here are today’s top headlines. Following up on our coverage from Spain. Why Spain’s rooftop solar owners weren’t spared from blackout. Very interesting articles. You would have thought it’s all off grid. Super interesting stuff there. We’ll jump back over to our favorite state, California. House votes rule to overturn Biden era rule, letting California impose EV mandates. Next up, why grid inertia is important. A good friend of the show, Clark Savage, wrote that one. Next up Hawaii backs natural gas to cut emissions. Then as to whose oil company anyway, it doesn’t get much, much more interesting with that stew of intossibility. I will quickly cover what happened in the oil and gas markets this weekend, mainly covering rig count, frat count spread, and talking plenty about what the Saudis are doing with increasing oil production, and then we’ll touch on Saudi warning of more oil supply, unless OPEC Plus sheets fall in line, and we will finally touch on BP and some of our major oil company Q1 results that was basically what we saw all last week was the four big, big fours. We like to call them Exxon, Chevron, Conical Phillips, and BP all dropped their earnings. So we will cover all that and a bag of chips. Clearly not in the home studio, stuck here in an airport, was planning on being back for the show, Stu. Then we had plane had some mechanical issues, so we’re getting it swapped out, but we still found some time to pop on here. So if you don’t like you, Feel a little bit like you used to be. [00:02:20][127.0]

Stuart Turley: [00:02:20] Oh, I used to be flying out on Sunday afternoons and home on Thursdays and I hated it for years. But hey, let’s get ready to rumble here. Why Spain’s rooftop solar powers weren’t spared from the blackout. Michael, this is really critical. And I really enjoyed this article from Bloomberg when there were 55 to 60 million people without power last week when we were talking about this. And Robert Bryce and David Blackman and I had a great podcast talking about this, but this article, from Bloomberg brought up a great point today. The experience for the solar panels on the roof. The predicament may have come a surprise to thousands of Spanish households who now have rooftop solar. But the problem of the number of installations surged in 2018 on tax using from energy solar panel was canceled. Since then, residential solar capacity has shot up from 300 megawatts to 2,400 megawatte according to the Bloomberg NEF data. Here’s the problem. Just because you have rooftop solar. And it’s not tied to a local backup storage system, it means when the grid goes down, the grid goes down and this creates more of a non-inertia, what’s called non-Inertia to the grid and the grid operators just basically are having really a hard time trying to balance the grid, Michael. It is just amazing. I find it hilarious that people are gonna [00:04:01][101.1]

Michael Tanner: [00:04:01] go through all this crazy setup to get solar deployed, you think that you’re then throwing up these panels so you’re off grid so that in situations like this, you’ll be fine. It turns out no, is this, this isn’t a cost cutting move by the way, right? This is a, it’s really the better way for these solar panels to operate is actually connecting them to, you know, through the grid so there’s almost it’s kind of like an interconnect, which basically then renders them useless in whatever happens because we still haven’t figured out what happened here yet, whether it was a malfunction somewhere internally, cyber attack. [00:04:35][33.8]

Stuart Turley: [00:04:36] I think it was I think was a combination of all the above and we have a podcast tomorrow on or today on the energy realities and we’re covering it with some folks from what logic out of the UK and they’ll bring some Catherine is one of our guests there. So what I’ve learned Michael is when putting together my microgrid I’ve got twin propane Generators, I’ve got batteries. I’ve gotta win But it’s expensive and I can manually pull my compound off of the grid so that I can run independently. It’s expensive micro grids are here to stay. [00:05:16][39.7]

Michael Tanner: [00:05:17] You need them. All right, let’s jump to the next one here. [00:05:18][1.9]

Stuart Turley: [00:05:19] Alright, let’s go. House votes to overturn Biden-era rule, leaving California impose EV mandate. Michael, you can’t buy stupid, but you can sure jump off a cliff like a lemming. There are 11 other states that follow California’s Clean Living Act. It’s advanced Clean Cars 2 rule signed under a Biden administration environmental protection agency under the EPA clean air act. December of 2024 was set to ban the sale of new gas-powered vehicles in that California state and 11 other states and for the U.S. Consumers. California’s unlawful ban should never have been authorized and Governor Newsom should have never been allowed to seize this much control over the American vehicle market. Governor Newsome is absolutely has the brain power of a potato bud and the offer is there. I’d love to have him on the podcast at any The man is absolutely destroyed. It’s single-handedly California. California was energy independent before he got in. He is there. They used to have thousands of drilling projects, oil and gas. They were totally independent. Now they import 70% of their oil and they had, I think, less than a hundred permits last year. You cannot feed that kind of state on a hundred permit. This is the interesting. [00:06:45][85.7]

Michael Tanner: [00:06:45] Part also is that. So basically, this was introduced using the Congressional Review Act, which actually lets Congress bypass filibuster rules and overturn federal rules with a simple majority vote in both the House and the Senate. Now the problem is, we’re not sure if this is going to make it to the Senate here. And then what has to happen is now it gets kicked back to the EPA to go through sort of this lengthy rulemaking process to kind of unwind it. You can’t really negate the rules, but you can create rules around these rules. I mean, it’s really insane that you can’t just renege a rule, especially in the era of no Chevron or a Chevron deference. But I guess that’s the point now that EPA can’t make these rules. It’s got to go through the Congress. So the ironic part is, while I think a lot of us are for some of this, the Chevron ruling, I know I was, hey, let’s allow people who will be elected to Congress who are accountable to us to actually make laws. Here’s an instance where it could be a little bit instant string. But basically the point of all that, Stu, is that if EPA has got to go through this process. It could be years before this and the fallouts coming quick. [00:07:49][63.7]

Stuart Turley: [00:07:49] Exactly. And those 11 states besides California, those are 12 states you do not want to live in. Let’s go to the next story. Why is grid inertia important? And this is articles actually from Gene Nelson. He’s a PhD and I reached out to him to get him on the podcast. Inertia refers to a system’s capacity to resist change for a power grid. The great synchronous inertia counters ability, greater ability to resist frequency changes. Michael, when you put one solar panel or one wind turbine, it changes the grid frequency. This is something that Meredith Angwin, who wrote the book Shorting the Grid, who’s been on the podcast, wrote about. But this article really covers it very nice. Egos. A simplified example of each pair of the DCPP’s generators have rotating components which weigh in excess of a million pounds, 500 tons apiece. DCPP turbines rotate 30 times per second and the rotating magnetic fields induce the 60 cycle per second, the Hertz or the AC voltage and keeps it current. If you don’t have natural gas, nuclear, you don’t have these frequencies. Frequencies matter to the grid. You, again, it wouldn’t matter in the old days, Michael, you just sit there and say, we need another 15% for another power plant. And boom, there’s our backup recovery and everything else. This is critical for a grid. And they bro, they’ve thrown physics and fiscal responsibility out in the States of Hawaii, California, do Jersey, Germany, physics and fiscal matter to the grid. This is an excellent article. [00:09:45][115.7]

Michael Tanner: [00:09:46] Yeah. And I love this, the, the last set or the, the first sentence and start the last paragraph synchronous generation provides a muscle for a power grid. It proposed theoretical model for grid reforming, huge energy storage spices that mimics mimic. The functionality of large synchronous generators, and the best part, these proposed devices do not exist yet. So it’s all intertwined. And it’s one of the, Stu, I love some of the stuff that you’re doing with the substack now breaking down these articles in a much more cohesive way, kind of adding that color on top, because yeah, that’s what you see right here. Exactly. It’s, it’s becoming to the point where the train is moving so far down the tracks outside of some man holding on for dear life on either side. That’s about our only hope at this point. [00:10:29][43.6]

Stuart Turley: [00:10:30] Or her man is holding a bus with a shot and he’s got one arm from the bridge and he holding them. Yeah, that’s exactly what’s happening to the grid right now. And the grid is going to fail. Absolutely. The next story here, speaking of failing, Hawaii backs natural gas emissions and then sues oil companies. Anyway, Michael, let me just take a second and go through the power sources and I added this in here the power electrical source for the Hawaii. If I was Yoda, and I was looking at this story, I would go, energy hypocrisy you are. This is absolutely horrific. Petroleum, which is almost, it’s worse than heating oil and diesel. It’s basically just terrible. 76%. It is the highest US oil. It is dirty. Solar is only 8%. Wind is 7.2. Biomass 2.7. Geothermal 2. 7. Hydroelectric 1. They need natural gas and LNG bad because they’re not going to get a nuclear reactor. The most petroleum dependent state in the nation has built an economy on tourism and a power grid on fossil fuels including LNG. They don’t have an LNG plant yet. We don’t we couldn’t even get it to them. We’d have to buy it from Russia because we have the Jones Act. [00:11:59][89.4]

Michael Tanner: [00:11:59] It’s exactly what I was going to say. That’s the craziest part about this whole thing is the Jones Act. For everybody who doesn’t know what the Jones act is, the Jones acts says that in order to ship energy, and in this case, we’ll call it fuel, liquid-fired petroleum, LNG, whatever you think about, if it goes from a United States port to another United States port, the ship has to be owned by the US or by a US company. And what was the original reason for that? [00:12:29][29.3]

Stuart Turley: [00:12:29] Cause it was back in like world war two. No, it was before that it was world war one. And, and, and it was, it’s it’s really hideous and it’s also has to be built by us so you can get a war time exemption for it. We have one LNG flagged tanker in the United States. It would not, it just made a delivery to one Dominican Republic or something, but there’s not even an LNG. To electrical power that’s why this whole hypocrisy that they’ve got going on is just absolutely Yoda wouldn’t even waste his time going to Hawaii that’s how bad this is anyway he might not you can’t buy this kind of hypocrisy so I don’t know why the super majority in California Hawaii New York, New Jersey, Delaware. Any of those states you’ve got to have fiscal responsibility because the grid only understands physics and physics matters to the grid and to your energy prices. [00:13:28][59.4]

Michael Tanner: [00:13:29] No, it really does. It really does well. Let’s go ahead and jump over and quickly touch on some finance stuff, guys. Before we do that, let’s quickly pay the bills here. As always, thank you for checking us out on the world’s greatest website, www.energynewsbeat.com, the best place for all your energy and oil and gas news. Stu and the team do a tremendous job keeping that website up to speed. Everything you need to know to do in a typical spirit when it comes to the energy and the oil and the gas business. Go ahead and hit that description below for all links to the timestamps, links to articles, specifically if you want to stay in contact with us, show one of the best ways is our substack Stu is doing a great, great job synthesizing some of the top articles that we drop on. We’re dropping 20 a day on Energy News. You’re going to get the one to two top at top, top articles summarized with a nice little brief by Stu. We’ll start to call him Stu’s briefs. We will come up with a fancy name for it. But either way, you’re going to get briefs by Stu and it’s a great way. That’s the energynewsbeat.substack.com. Also thank you to Reese Energy Consulting for supporting the show guys. We love everybody over at Reese Energy. Stu’s done some great, great interviews over the last couple of weeks with Steve Reese. So check that out on our platform. But guys, if you are in the upstream midstream space and you have not gotten to work with Reese Energy consulting, you’re doing yourself a disservice. Call them up right now. Tell them Energy Newsbeat sent you. If you’re an upstream company and you are not working with a marketing company, I’m not talking about social media, I’m talking about increasing your dollar, your bottom line, getting your first purchase of contracts updated, making sure you’re getting as many deducts wiped off the table as you can, and especially in today’s pricing, every single dollar matters. So, I can reach them in and go in and give them a call. If you’re in the midstream space, do anything for an LNG plan. Planning, implementation, jet fuel sourcing, crude They are our go-to folks for that guys that’s reeseenergyconsulting.com. We appreciate them for supporting the show and finally guys, it is never too early to get your 2025 investment portfolio lined up. Check out investinoil.energynewsbeat.com where we have all the resources on what it takes to get into the oil and gas business. There’s a bunch of ways you can get into it, but the big reasons why you need to be thinking about energy, portfolio diversification, massive tax implications, and Finally, finally, let’s not forget this one. Becoming Billy Bob Thorne from landmine. And I know what you might be thinking, oil prices are low, why would I consider investing in oil and gas? Well, you’re not wrong from that standpoint, yet there are still strategies out there that oil prices make money. We’re about to talk about shale horizontal wells, may not be the best place to allocate your capital. But if you’ve got other strategies that may or may not, be much more efficient in these lower prices, it’s a great way to get in, begin your oil field investing journey. But then again, also One of the big benefits is lowering your tax bill. Check that out. InvestInOil.EnergyNewsBeat.com  [00:16:27][178.0]

Michael Tanner: [00:16:27] I’m going to look at some headlines here, S&P 500 is up 1.47 percentage points on Friday NASDAQ at 1.6 percentage points, really fought back. We were a little above 6,000 on the S&p 500 dropped to a little bit below 5,000. I think the lowest we saw was 4,800 all the way back up to 5,600. So, a lot of resiliency. It kind of goes to show you a little bit of, I think, what’s happening with the tariffs. I think a lot the stuff, specifically what’s going on with China. There’ll be an interesting follow-up, but the stock market has shown some resiliency here. Two- and 10-year yields increased tremendously. Two year yields up 3.3 percentage points, 10- year yields up 2.18 percentage points. That’s great for my U.S. Treasury bonds I got sitting there. So, We’d love, love, love to see that dollar index basically flat at about 100, even Bitcoin 95,000. It’s been down about a half a percentage point this week and food oil took out. To got an ax hit to it on Friday guys 5829 that’s about a dollar off what it opened at or about 1.6 percentage points Brent oil is actually fairly flat 6164 natural gap was up 4.3 percentage points to 3.3 dollars and 36 cents xlp which is our EMP securities contract actually up two percentage points which is fascinating again there’s a little bit of a stock market rotation going on on Friday a little bit of some unwinds But it was up to $114.95, or about $2.25. I mean, pretty fascinating, Stu. I think there’s a couple of different things, I think, that are pressing on oil prices. And I think as the market opens, will open at night, and as it’s going to flow into this morning, it’s gonna be bad. Because the two things that happened really. [00:18:14][106.5]

[00:18:15] On Wednesday and Thursday was that OPEC Plus decided that they were going to add another 411,000 barrels to the market, basically in a tit for tat show to Iraq and Kazakhstan. Is that the other one, Stu? Yes, that is. Yeah, so Iraq and Kazikstan have been blamed for overproduction. And so now the way to punish them for overproducing is add more barrels to market in order to drive the price down. I mean, it’s diabolical what they do here. They’re able to, you know, quote, unquote, punish Iraq and Kazakhstan, but also go back to originally what they’re planning is lower oil prices does bring back more market share to them. I think it’s going to be fascinating. That meeting was moved up and happened on Saturday, which was supposed to happen on Monday. It’s super interesting. No one knows why they rescheduled, but obviously hitting that policy and that 114,000 barrel number thrown out on Saturday allows the market to digest. Maybe it’s not as big of a drop as people expect, but I mean, it’s a bloodbath out still, you know, multiple, multiple people that I trust when it comes to just kind of forward-looking price signals, they think we’re going to see low 50s with this number. They think that oil might trade down to 50. And I’ve got a big, big friend of mine who says he wouldn’t be surprised if for a little bit we see a forehand on oil for a bit as the market is kind of absorbing, especially with the sentiment around the upcoming. I’m not saying a recession is coming, the sentiment that a recession is coming is loud and clear with these tariffs, specifically what’s going on with China right now. So it’s going to be a very interesting couple of weeks for prices. Are you still holding fast to your $80 prediction? I am, and I’ll tell you. It’ll eventually swing back. Absolutely. The question is when, though. [00:20:01][106.1]

Stuart Turley: [00:20:01] Exactly i am right there with you cuz on end and when you take a look at demand if india is now the world’s largest importer and you take look at those numbers in twenty twenty three india imported four point six million barrels per day of crude that is a thirty six percent increase oil demand though is five point four million you take the look at china. Imported 11.1 million. So China is now going through major trade issues right now. And if China can remain some what level and India continues on its growth path, we’re going to see global domain remain stable. If we see that formula play out and I think you’re going to see. The trading block shift to Europe and what’s going to happen. China is going to be absorbing some of the manufacturing out of Europe instead of the U S China will be just fine, but it’s going be the European that’s going become a subservient trading block to China, not the U. S. This is huge and positive. Make sense. Yeah. [00:21:20][79.3]

Michael Tanner: [00:21:21] I mean, we didn’t quite get an answer in there, but I enjoy the statistics. No, no, no. It was a great non-answer in the terms of ultimately what you’re seeing is steady demand and these lower oil prices are going to cause a fall in supply. If oil supply specifically, if in the United States falls below 12 million barrels for the year, you’re going to see prices in early 2026 rocket back. And, you know, there’s going to be nothing that, that, you know, President Trump or Joe [00:21:52][31.6]

Stuart Turley: [00:21:52] Josh young, yes, Josh young with bison and interest, great friend of the show, absolutely nailed it most wonderfully when he said the longer the prices hover in the lower margin, they will spring like a rubber band to the higher side and, and go even higher. So, Josh Young is right in his formulation on this. [00:22:16][23.8]

Michael Tanner: [00:22:16] No, it just, just, and, and he’s one of many people that I’m hearing from this sentiment as well. So it’s going to be, it’s gonna be really, really fascinating, you know, again, to quickly touch on Saudi’s warning of more oil supply, unless, unless cheats fall in line, I mean. [00:22:31][14.9]

Stuart Turley: [00:22:32] I would not want to hurt her, those cats. [00:22:34][2.0]

Michael Tanner: [00:22:34] No, it’s actually one of the funnier, I assume that was created by Grok, Stu’s favorite buddy now. But if you haven’t had a chance, go take a look at that. It’s, you think trying to corral OPEC is hard. It is about as hard as herding cats. But yeah, so obviously they’ve come and agreed the 411,000 barrels in June. But the real question is, are they going to do more than that if there continues to be overproduction? And whether or not they’re using this overproduction as a cover to increase production or lower oil price to appease the United States government and people in the government who want lower oil prices so that there may be eventually other deals that take place, that remains to be seen. I’m not saying anything, but Stu’s smiling because he knows what’s going on. The part that, and I’ll just take a quick tangent here, Stu, because I’ve got time I’ve got an hour and a half before my flight, before I now need delayed flight takes off. So I want to ask you about this. So Chris Wright, he’s out in Saudi yesterday tweeting up a storm about how he’s at the first well that was ever found there. Ironically, the first well in Saudi was actually found by an American company that has since been taken over. He knows better than anybody that in this low price environment, the industry gets disrupted, and sometimes in a good way, but it comes at the expense of people. Layoffs are coming. You see oil hit to the 40s. We’re going to see rig count, frac count spread fall off a cliff. We’ll touch on that in a second year that just dropped. I mean, it’s, I wonder how he’s balancing these two things as of mine. I mean obviously he serves at the pleasure of the president. President Trump has come out and said he wants lower oil prices. So I guess that’s what you have to do. Maybe he was able to sell all his Liberty stock before he became secretary of energy. He was able do it tax-free, which is convenient because now all of a sudden those margins, you know, that valuations going just down a little bit, especially if we see a 4-0. So it’s really interesting to see him step into this role. And, you know, obviously he understands what’s going on, but I just think the dynamic is fascinating. [00:24:43][128.6]

Stuart Turley: [00:24:44] Uh, I agree. And I still think that I’m still a permable oil is only going to hang out here for so long, but the answer to the question is how long we’ve got to get through this trading block change, you’re getting right side is by Trump on the tariffs and trading blocks are huge. And once we get past that, it will shoot through the roof, uh, because there’s not enough investment in oil and gas, the difference between the The Iranians and the United States, you know what the difference is? Michael, the return shareholder returns on private and public gets back and the discipline that are great oil and gas, private and public are giving money back to investors. We will recover faster than they will be able to recover faster. So we are able to spin off and spin up. Yes, it is jobs. it is down. But it is a capitalism at work at its finest and it’s all about well economics, Michael, you are one of the best well economic guys that I know out there and you know, when you drill a well and it has got good economics, you go in and say, I’m going to be doing this well. If not, we’re still going to have rigs. And you’ve said this where it’s cheaper to drill now, but just leave them as a pud. [00:26:07][83.5]

Michael Tanner: [00:26:07] Yeah. So you’re not, you’re not adding barrels to the market, but you’re giving yourself an ability to bring in a completion of the rig as a later date, you know, for all that stuff. So I mean, we’re, we’ve seen that play out tremendously speaking of rig count and frat count spread. Stu, we did see rig counts drop by three week over week. And we did see the frat counts spread drop from 205 to 201. So we saw four completions rigs fall off. I continue to see that as a trend. [00:26:34][26.4]

Michael Tanner: [00:26:34] This last one I want to, I want to touch on Stu. I‘m raking the major oil companies results in Q1. This is a great overview we have to hit on from David Blackman’s Substack. Know, specifically to the energy transitions of servities. But it’s pretty interesting. We’ll start here at a high level with Exxon. You know, they announced about $7.7 billion in earnings, about $1.76 per share, which actually surpassed Wall Street’s expectations, about $1,75. Revenues were firm at about $83.13 billion. But the crazy part was the fact declare upstream business unit, which is kind of their larger thing, cranked out 4.4 million BOE per day, which was actually a 20% jump over last year’s 3.78 million. And the crazy part is last year number did not include Pioneer. So this year, so that 20% in BOE is just because of Pioneer, but it’s crazy to think about how big Exxon was relative to Pioneer and Pioneer was sitting at about a million BOE a day. So pretty, pretty unbelievable right there. We did see the Permian, Exxon saw Permian and Guyana basically as David Blackman puts it, firing on all cylinders, upstream earnings were up 19% to $6.8 billion on cash flow from operations of about $13 billion over $8.8 of free cash flow and had about $9.1 billion in shareholder returns, about $4.3 of dividends and 4.8 in stock buybacks, though. So they continue to swing and swing, and we’re seeing the outperformance right now in those offshore assets. Let’s jump to Chevron. They had about $2.18 a share, which actually topped estimates that were down at about $2 and 14 cents. Revenues did fall a bit shy of expectations, though guidance was $47.88 billion, and They came in at about $47.61 billion. They did see a production climb of about 7% up to $2.35 million BLE per day, which is actually, we had a quarterly record in the Permian and boosted by a couple new Gulf of Mexico projects, specifically Anchor, then Jax, St. Paulo, which was down there in some of those deep high pressure offshore stuff down in the Gulf of America, they might not add. They did see earnings drop from a record $5.6 billion, which was recorded in 23, and mainly was due to the fact that the refining margins they had in their downstream unit was a little bit slimmer than usual. Obviously, the wait is still going on to see what’s going to happen with the $53 billion heck acquisition, mainly through the arbitration that’s going on over those giant assets. The hard part is what happens is Chevron has their stock price is appreciated to the point where people assume this acquisition is going to happen. Now, the problem is if it doesn’t happen by September, I think you’re going to see a big hit to them. So I think it’s a lot of people are betting. But if I was a betting man, and I think the markets are betting, that test is actually going to end up in Chevron’s hands, which means all of that incremental bearish subayana is going flow back there. Let’s quickly look at the other, the last two here, Shell and BP. I’ve been saying this now for a few weeks, kind of reading some of the key leads. I think there’s a merger in the works here and something here. Shell and Q1 had an adjusted earnings of about $5.6 billion, slightly, slightly which was actually crushed expectations of $5,08 billion. So they announced, because of these great results, they went and they announced another 3.5 billion share buyback program, which it will attempt to complete over the next three months. And they basically decided to cut all of their allocations to both wind and solar investment. With new CEO, Will Swant is moving extremely hard back into oil and gas. The problem is, though, their exposure to European price metrics, specifically Brent price swings, and a lot of the trade war stuff, it could theoretically impact them. But again, what I think is happening is all eyes are them and setting up to make a run at BP who ironically finished last of the bunch here with what it expected. Because they’re a British company, they do it slightly differently based upon the regulation or based upon what their security and the change commissions in Canada or in UK like to see, excuse me. So they refer what’s called underlying replacement cost profits of 1.4 billion, which was a drop and below expectations of about 1.6 billion though. The funny part was CEO Murray actually classified this as a great start in order to basically because of this whole reorganization of the company’s strategy after activist investor Elliott Management, who about six months ago came in and decided to start buying stock and we gave a small 5%. This is not something you want to hear from the CEO. Love this quote. We’ve had a great operational quarter. We’ve had our highest upstream operating efficiency, our refineries in the first quarter ran the best blah, blah, but we’ve had a great operational quarter. That’s like you’re on a, I played a bunch of golf this weekend as I was cracking up because I hit a ball slicing into the woods and some guy on my team would say, outside of the swing and the execution, that was great. I mean, that’s basically what that quote is. We had a very operational quarter, I know it didn’t result in anything fiscally good for people, but- So he’s the IR guy of the week. Someone that’s a huge call for IR guy. The week, right there. Everyone showed up on time, you know, we didn’t take too long a lunch break. Just fire anybody. They might need to in a little bit. So certainly interesting. And again, I think what’s happening is BP is now setting up, but really, you know it’s clear and basically what, what Blackman and I would agree with here at the bottom is, you know, it’s best to be in the U.S. And these U. S. Majors. Obviously, they have tier one assets available, but they also take advantage of the U.S. Oil infrastructure or the financial infrastructure that takes place. And again, I would not be shocked if you see BP reorganize in the United States to make it a lot easier for an acquisition of some sort, so. [00:33:01][386.5]

Stuart Turley: [00:33:03] I agree. You cannot survive in the EU or the UK under their net zero carbon tax methodology. There’s no way any oil company will do business with them. [00:33:15][12.4]

Michael Tanner: [00:33:15] No, there is no way. So, well, all right, folks, my favorite part of the week, we get asked to, what are you scared about? [00:33:22][6.2]

Stuart Turley: [00:33:22] I’m not scared of anything, man. I think the world is having a right size. We’re going to have a great week buckle up. And I think that you’re going to see a shell and BP eventually. I think you are spot on become a United States oil companies. And the reason is because we have the EU and the UK running down the California and Germany road. [00:33:46][24.0]

Michael Tanner: [00:33:46] No, they’re they’re running as fast as they can, guys. So thanks for hanging with us here on this airport edition of the Energy Newsbeat stand up. I appreciate you guys checking us out and starting a week with us for Stuart Turley and Michael Tanner. We’ll see you tomorrow, folks. [00:33:46][0.0[2013.4]