Wind And Solar Are BACK?!

The U.S. energy market is reeling from a massive 11.5 million-barrel draw in crude oil inventories, one of the largest weekly declines in recent memory. Despite this significant tightening of supply, oil prices have remained […]

Highlights of the Podcast 

00:00 – Intro

01:08 – The Senate Caves on IRA Wind and Solar Subsidies – David Blackmon

04:46 – Dozen US States Oppose Offshore Oil and Gas Drilling, File Complaints with BOEM: A Look at Their Energy Mix, Policies, and Electricity Prices

08:47 – Market Updates

11:04 – U.S. Crude Stocks Plummet by 11.5M Barrels: Oil Prices Steady as Geopolitical Tensions Ease

11:27 – Outro

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

Michael Tanner: [00:00:00] Our wind and solar subsidies back on the table next on the Energy Newsbeat daily stand up. [00:00:06][6.0]

Michael Tanner: [00:00:13] What’s going on, everybody? Welcome into the Thursday, June 19th, 2025 edition of the Daily Energy Newsbeat standup. Here are today’s top headlines. First up, the Senates caves on IRA wind and solar subsidies. This one is a great friend of the show, David Blackman’s substack article. Next up, dozens of US states oppose offshore oil and gas drilling, according to complaint with the Bureau of Ocean and Energy Management. We’ll do a quick dive into what those states are. Kind of look at their energy mix policies and electrical prices. I will then jump over quickly, cover what happened in the oil and gas markets today, mainly talking about the Iran and Israel conflict, which enters sort of its sixth day. And then we’ll quickly touch on a pretty crazy crude oil draw from released by the EIA. And we will, we’ll take a look at what that means for the overall markets, and then we will let you get out of here. Stu is on an assignment. So I am rocking a solo show. Let’s kick it off. [00:01:08][54.2]

Michael Tanner: [00:01:08] The Senate caves on IRA wind and solar subsidies this one is by the great great friend of the show David Blackman his sub stack highly recommend checking him out it’s really interesting I mean if you go back and look last week you know the one of the big positives of the Big Beautiful bill outside of the fact that it would add four trillion to the debt but one of the big positive of that bill was that they were really going to yank the wind and I.R.A. Provisions. And the version that was basically outlined by the Senate Finance Committee was very strict, or at least the one that got presented to the Senate finance house committee. The problem is the one that came out of the Senate financial committee basically sort of walked it back. So what specifically. Happened. So specifically, and I’m going to read straight from his sub stack here, specifically, the Senate does away with the hard house provision that a wind and solar project must be placed into service by 2028, with softened language requiring only that developers, quote, begin construction on a site by 2030 to, in order to receive these subsidies. And to give you guys an idea, in reality, what does that mean? It means big oil and gas, or excuse me, big solar and wind companies like Orsted, you know, like, you know any number of these offshore wind and solar companies, all they need to do is make minimal down payments by 2030 to claim, quote, had to have started construction in order to then continue to receive the IRA subsidies and those tax benefits through 2040 without having to basically do anything and even like pick up a pound of dirt. Unfortunately, so unless there’s amendments, that’s what’s going to happen. I mean, it’s it’s, it it’s unfortunately not good because you can rest assured, and I love, I’ll just read now straight from the article here, you know, you can rest assured and you can be sure that in the 15 years between now and 2040, the wind and solar companies and their associations will most likely drafted the this revised language and handed to a friendly rhino on the Senate Finance Committee, which will continue to spend millions of dollars with well-connected lobbyists on efforts to remove this. Absurdly soft fake deadline he then goes to list out who are the people on the finance committee and he does i love this he he goes if you’re looking to rank likely rhino sellouts on this issue i’d rank them as follows number one texas senator john corn next oklahoma senator and chairman subcommittee james langford kansas senator roger marshall and montana senator steven dane he both i love his quote senators corn and langford are notorious wind shills No less, less socials for the solar industry, but it’s, it’s pretty crazy what they want to do with this. I mean, basically, they’re moving this deadline back in order to appease somebody. Who they’re trying to appeas- well, obviously it’s the wind lobby, and, you know, and the wind-lobby, which is funded by Big Wind, you, know, Big Wind. Big Pharma. Big Oil. They’re all in there. You know, big everything. But the point is, like everything that happens in Reconciliation, we go for the moon, and we end up somewhere down here in- To me, this is not good. You’ve got to go ahead and get that out of there, because everything needs to be on a level playing field. I cannot stand when people say, well, oil and gas has tax benefits. It has benefits. It does not have subsidies. What the IRA is, is subsidies. And there’s a difference between a subsidy and a tax benefit. So if you want, call up your senator, make sure This doesn’t happen, but. You know, if this bill goes through, it may end up being where those subsidies actually stay in there. [00:04:46][218.0]

Michael Tanner: [00:04:46] Next up here, dozens of U.S. States opposed to offshore oil and gas drilling goes ahead and files a complaint with the Bureau of Ocean Energy Management. So to give you guys an idea, there’s a coalition of about 12 states who have petitioned That bureau, the BOE, to exclude Atlantic and Pacific Ocean planning. From oil and gas leasing. There’s the upcoming 11th National Outer Continental Shelf Oil and Gas Leasing Program. You know, this is led by probably one of the largest oil and gass producing states. Maryland Attorney General Anthony G. Brown. That’s a joke. Maryland literally has zero oil. This coalition is going to argue that offshore drilling threatens marine ecosystems, coastal economies, and state level clean energy goals. So to give you an idea, here’s the coalition. You got California, Connecticut, Delaware, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, Oregon, Rhode Island, and Washington. And drum roll please, the only state that actually has oil and gas offshore is California. And we all know oil slick himself, Governor Gavin Newsom is not going to be in favor of drilling. So you can maybe take out California and we can talk a little bit later about how They are but In all these other states, Connecticut, Delaware, Maine, Maryland, Massachusetts, New Hampshire, New York, New Jersey, New York Oregon, Rhode Island, Washington, this is all just hand It’s a lot of what I do on this podcast, just hand waving with not much substance to because it’s not like they were going to drill for oil anyway. And I think that’s the funniest part about this is that’s what your hard-earned tax dollars are going Okay, your hard-earned tax dollars are going for, if you live in those states, it’s going for these hand-waving petitions that don’t mean anything. It’s not like Exxon’s lining up to drill offshore New Jersey. It’s like they’re lining up offshore Washington. I promise you. They’re not. And so it’s the only state that you could say… Is really shooting themselves in the foot and if you listen to show you know exactly what state it’s california near the only state that actually has some offshore oil that theoretically could be drilled now with the permitting it wasn’t gonna happen anyway now the fact that they want to go ahead and ban it it’s It’s sort of like, okay, you weren’t really drilling in any way. There are actually two rigs, Offshore California. It would be dumb for California to do this, but they’re going to do what California is going to do. It’s a lot of hand waving, but I find it funny. Your hard earned tax dollars are going towards banning oil and gas drilling offshore in Connecticut. So if you’re Connecticut and you’re in that 35% tax bracket, guess what? Your hard-earned money is going towards that. [00:07:25][158.8]

Michael Tanner: [00:07:26] Let’s jump over and quickly touch on some finance stuff guys before we do that let me quickly pay the bills as always thank you for checking us out world’s greatest website www.energy newsbeat.com the best place for all your energy and oil and gas news hit that link the the links in the description below for all the timestamps links to the articles check us out the energy news beat.sub stack.com a great great place to and kind of a great place. You know, to get going and, and learn about what’s going on in the oil and gas business, we’re putting a lot of stuff there that you can only find that you can only on our sub stack. It’s a lot news and analysis highly recommend checking that out. If you sign up for paid subscription, that would be great. And then also guys shout out to Reese energy consulting for supporting the show, you know, it’s if you’re in the midstream space or in the upstream space and you need help in the. They work from everybody. They’ve got clients that are two guys in the garage, all the way up to the largest publicly traded companies and everybody in between. ReeseEnergyConsulting.com. Let them know that Energy Newsbeat sent them. And finally, guys, if you’re wondering if oil and gas is right for your portfolio, we have a great portfolio survey that you can hit in the link below or go to investinoil. EnergyNewsbeat.com if you want to. Fill it out, we will get you a great e-book, and then depending on what it looks like, we will go ahead and put you in contact with some people that might be able to help you with that. [00:08:47][81.1]

Michael Tanner: [00:08:47] Let’s go ahead, and look at the top line pickers though, S&P 500 is flat, NASDAQ is flat. Two and 10-year yields actually flat themselves. Dollar index was basically flat. The whole market was really flat on a day-over-day basis from that standpoint. We did see crude oil was up. It was choppy today. It was down. It was up. We saw Brent Oil up to $75.96, $73.50, and then we did see natural gas up about 3.5 percentage points, you know, cooking at that $4 mark, so natural gas is continuing, continuing to climb. XOP, which is our E&P Securities contract, is down about 3 tenths of a percentage point from that standpoint. And then, you now, really the big thing that we saw today was Oil was up, again, you know, continuing on the, continuing on the. You know, Iran-Israel conflict. I mean, right now they’re not targeting their energy infrastructure, but there is a chance that they do that. I think the real thing was that Iranian Supreme Leader Ayatollah Khomeini has outright rejected US, you know, Donald Trump’s demand for an unconditional surrender. Trump did say his patience had run out, but did not really come out and say what he’s going to do next about that. There is a change that the Strait of Hormuz becomes a choke point. You know quote that came out of ing this morning is quote the biggest fear for the oil market is the shutdown of the Strait of Hormuz If they decide to do that oils could go as high as 120 dollars a barrel which would be unbelievable The other very interesting thing that we saw today was the us federal reserve We saw a a little note out and a little press conference by jaron powell who basically decided to hold interest rate steady Today so no cut and you know while they did signal that borrowing costs are likely to fall They have kind of tempered the overall pace of expected future rates cuts in sort of what they’re saying the face with which what they’re faced with they believe is higher inflation that’s coming from the tariff plan that they said that there still is a half a percentage rate cut expected this year. They’re slightly lowering their pace to a single quarter rate percentage point each of 26, 27 and a protracted what they are calling fight to return to inflation back to their 2% target. [00:11:04][136.7]

Michael Tanner: [00:11:04] And we did see a… Crude oil stocks dropped by 11.5 million barrels, which was unbelievable. There was an expectation of a 1.8 million barrel draw. So absolutely unbelievable. When it comes to that in the market. Yeah, it didn’t really do anything. So that’s the funny part. Sometimes it’s physical supply demand. Other days, it’s geopolitical. Today is a geopolitical,. [00:11:26][21.7]

Michael Tanner: [00:11:27] But that’s really all I’ve got guys, nothing too much. We appreciate you sticking with us all this week. You will hear a long form podcast tomorrow. Check out, I’ll actually be running today, if you’re listening to this, there will be a great article out on our Substack on what to look for if you are looking to invest in oil and gas, kind of a cheat sheet of what you need to look for signs, questions, all that good stuff. So check that out, theenergynewsbeat.substack.com. But with that guys, we’re gonna let you get out of here, finish up your week. Thank you for sticking with us. Like I said, you’ll hear our long form interview tomorrow. You’ll hear a weekly recap on Saturday. We will take Sunday off and be back in the chair, Monday, bright and early. Thanks for checking us out, guys. For Stuart Turley and Michael Tanner. We’ll see you tomorrow, folks. [00:11:27][0.0][676.5]