Oil Demand Rising 1.6 Million Bpd

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Saudi Aramco Sees Oil Demand Rising by 1.6 Million Bpd in Second Half of 2024

How Investors Are Capitalizing on AI’s Insatiable Appetite for Energy

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

Stuart Turley: [00:00:14] Hello, everybody. Welcome to the Energy News Beat Daily. Stand up. My name’s Stu Turley, president and CEO of the sandstone Group. Michael’s got the night off, and it is a wild show out there right now. Let’s start out with the top stories of the day. Saudi Aramco sees oil demand rising by 1.6 million barrels per day in the second half of 2024. There’s more to this story than meets the eye. How Venezuela’s election unrest will impact global markets. Hold your breath. Got you some good stuff there. More U.S. LNG set to flow into European energy mix in the 2030s. If Cheniere rubber stamps Sabine Pass expansion. This is pretty cool. Fact checking the Biden administration’s SPR narrative. The Biden administration is throwing wrong numbers out again, and we’re here to fact check them. Let’s go to the next story here. Clean energy may be growing, but it’s not replacing dirty energy. I think this is absolutely hilarious. What a great story. Here’s one for our investors how investors are capitalizing on an insatiable appetite for energy. There’s a lot to that story. So just buckle up, sit back. Let’s have a laugh or two while we’re laughing, while we’re sitting here thinking about this. [00:01:37][82.5]

Stuart Turley: [00:01:37] Hey, let me start off with Saudi Aramco sees oil demand rising by 1.6 million barrels per day in the second half of 2024. There’s a little more to this story than just the sound of the title. If you take a look, Miss Producer, if you could bring up the chart. EIA, OPEC and EIA. The IEA, the OPEC and the IEA. All three of these energy agencies actually have different numbers of what global demand is going to be. Saudi Aramco CEO has a forecast of a strong increase in global demand for the second half of the year, ranging from 1.6 to 2 million barrels per day. Aramco’s outlook contrasts with the most cautious forecast from the IEA, which is predicted lower demand growth. The recent decline in oil prices due to recession fears has been dismissed by Aramco CEO as an overcorrection to the market sentiment. I’ve been out looking around at some other trusted folks that are in the energy space, and there’s been a huge drop in oil storage, so I believe we will see some price hikes here and in the short near term. Aramco’s Nasser said today that the market has overreacted to the bearish demand signals in the market, and my view is overreacting to the fundamentals do not support the drop in the prices we’re witnessing today, and I tend to lean in and agree with him. Saudi Aramco’s Nasser more than I do with either the EIA or the IEA, either one of those two organizations I do not. I trust as far as I would trust OPEC with numbers. So OPEC is and Saudi Aramco, both of those organizations I would trust more with their numbers. Excuse me. [00:03:36][118.4]

Stuart Turley: [00:03:36] So let’s go ahead and go to the next story here. How Venezuela’s election unrest will impact global markets. I can tell you right now let’s just cut to the chase on this. It’s hard to see. This is the bottom paragraph here. It’s hard to see a meaningful revival of Venezuela’s energy industry under the Maduro government. Failing oil production has severely adverse effect on the economy, with GDP currently a third of it was a third of what it was a decade ago. So the longer that Maduro holds on to power, the longer the corruption is going to be there and the less oil that they’re going to pump. Venezuela’s crude production averaged 922,000 barrels per day in June. So they’re they’re really not talking a ton when you’re talking about our on the markets, as a general rule, they’re flaring most of their gas and they’re sitting on the largest natural gas reserves in South America. And it is just a shame that they’re not taking advantage of this to increase the wealth for their Venezuelan people. So socialism does not work. [00:04:53][77.2]

[00:04:54] Let’s go to the next one here. More U.S. LNG set to flow into European energy mix into the 2030s. If Cheniere Rubber stamps a Sabine Pass expansion. This is pretty exciting from this aspect. Mr. Producer, if you could bring up the chart in the middle of the. Age year. You’re going to see that 41% of the LNG that’s bought by the EU is from the US. But what you’re also going to notice is that 20.4% is still being bought by Russia, 14% is bought by cutter and then 10% is bombed by Algeria. This is just amazing. If you take a look at this, the we need to export as much LNG as we can manufacture. And it is better for the environment, the global environment, to do that than to use coal. I don’t get it. But if you’re not using new coal plants with new scrubber technology, you are better off. Excuse me, you are better off to use LNG, quote unquote. We are looking forward to providing flexible, reliable and cleaning burning LNG to go up under this new long term agreement. This SBA is expected to provide further support for the SBL expansion project, and demonstrates continued momentum as we progress in the development of the project. This wonderful story is on the heels of yesterday’s news that the DOJ Department of Energy has filed an appeal to the halting of the LNG ban by the Biden Biden Harris administration. This is despicable that they’re continuing to appeal this decision because of this Chevron deference failure that the Supreme Court handed down. This is a complicated story. It’s a great story. But our Biden Harris administration continues their battle to shut down the LNG exports. [00:06:59][124.9]

Stuart Turley: [00:07:00] Let’s go the next one here. Fact checking the Biden Harris administration’s SPR narrative. I cannot believe it. The Biden administration says they’ve replenished 180 million barrels, which it redrew from the Strategic Petroleum Reserve in response to high prices and Russia’s invasion of Ukraine. They robbed the SBR in order to lower gasoline prices for an election. Wrong reason to do it. We’re now going to war, and we have an SBIR that is at its lowest rate it has been in 60 years. Let’s take a look here. The most important aspect of this story is the D.o.e. work with Congress to cancel previously mandated sales. So it wasn’t the 140 million barrels were put back. They’re saying they avoided depleting another 140. So they’re using false numbers. They’re saying they put it back. They didn’t put it back. They just didn’t take another 140 out. The SBIR remains at 40% below the level when Joe Biden took office, and it will remain approximately that level through the election. So they, again, are lying through their teeth. And it is despicable that not only the IEA, but the EIA and the Department of Energy will use numbers in order to sway a vote. It is really sad that they are not putting America first on this. [00:08:32][92.2]

Stuart Turley: [00:08:33] Let’s go to the next story here. Clean energy may be growing, but it’s not replacing dirty energy. I thought this was a pretty good article from the standpoint that it goes. Even the energy fossil fuel mix is getting worse. Oil was up faster than fossil fuel consumption. Demand passed 100 million barrels for for the first time. Coal hits a new record in carbon emissions from energy consumption are up 50% from the turn of the century. Fossil fuel share primary energy slipped by only oh point 4% to 81.5%. So that means that fossil fuels, coal and oil and natural gas are still 81% of the energy mix. You’re not going to replace those any time soon, especially with the advent of AI. When you sit back and look at the the man that AI is putting on the grid, you’re not going to see an energy transition. And this is a great line in here from Nick waste. I would argue the energy transition hasn’t even crossed the start line. He said one of those now the chief executive of the Energy Institute, and he even started there are things that the grid has to have. It has to have physics that work in fiscal responsibility. So you got to have those two things. It is very much reliant on that. [00:10:00][87.5]

Stuart Turley: [00:10:01] Let’s go to our last story for the day here. How investors are capitalizing on I’s insatiable appetite for energy. AI data centers are rising at. Demands prompt investors to buy utility stocks. I am Michael and I laughed about this a little while ago. I never would have thought that I would have looked at utilities as being really, really cool places to stake your money. About a month ago, Google admitted that its annual sustainability report emissions had climbed nearly 50% over the past five years since 2019. The reason? Data centers and artificial intelligence. Here’s where I think they got their hand caught in the cookie jar a while ago. They used to have on their Google have on their their site. We’ve been carbon neutral since 2003. They’ve been lying and gaslighting for years. And now there is this new structure coming around for actually tracking carbon and having them responsible for this. There’s so many different ways of tracking carbon. You’re going to have to come clean and say, we’ve been gaslighting everyone for a long time. Inflows into utility funds, though, for investors, are on the rise, adding 1.7 billion just over the two months in May this year, the Financial Times reported, citing morning Morningstar data. But let’s sit here and take a look at this. ESG investing has done a great thing for oil and gas companies over the years. They are giving money back. In fact, we see it with shell announcing more to their investor returns and share buyback programs. You’re seeing that investors are getting their money back from the oil and gas. It’s not like you’re having the old days in years gone by where oil companies were less. They really did not do a very good job in giving back shareholder and stockholder stakeholder values back to their their shareholders. That is now changed. Now we’re seeing that the wind industry is not capable of delivering any returns to investors. We’re seeing that power companies are not wanting to invest now that we’re on the brink of a global financial recession. The renewable market is actually under pressure. And if you’re looking to invest, it appears there are a lot of folks out there that are shouting, hey, let’s go invest into utilities because they are doing what the oil companies have been doing and that is giving share money back to shareholders. [00:12:50][168.7]

Stuart Turley: [00:12:51] So with that, if you are looking for LNG, natural gas, if you’re looking for any assets, oil, crude oil, gas, jet fuel, go to Energy News Beat.co forward slash trading desk and reach out to me. Look forward to visit with you. And so with that like share go to the energy Newsbeat substack.com and look forward to hearing from everybody and talk to you all soon. Thanks. Have a wonderful day. [00:12:51][0.0][751.4]

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