Reform Boosts America

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

Stuart Turley: [00:00:00] What he’s talking about is putting it into the, the bill for funding through reconciliation rather than have to go through this good news, bad news thing. I think if Congress would actually do their frigging job, we wouldn’t have to go through the shenanigans, but I think it’s one way to do it. [00:00:18][18.4]

Michael Tanner: [00:00:18] Yeah, it’s and reconciliation has already has, has always confused me. And basically as a layman’s term for what reconciliation is, is it’s a way for an, basically is Congress has the power of the purse. So if you want to spend money, you’ve got to go through Congress. It’s one of the interesting parts about what Doge is doing. What’s going on everybody. [00:00:46][27.2]

Michael Tanner: [00:00:46] Welcome into the Monday, April 14th, 2025 edition of the daily energy news beat stand up here are today’s top headlines. First up an opinion piece from friend of the show, David Blackman, reconciliation permitting reform will make America go big again. This will be a great, great one to cover next up. UK will be more skeptical of Chinese investment after steel rescue. interesting, some global. energy conundrums going on. Next up, the energy storage market is getting clobbered by the tariff wars. And finally, why falling oil prices are not always good news. Fascinating, fascinating little kind of zig when everyone’s zagging. Friend of the show Robert Rapier wrote this one. We love him. Stu will then toss it over to me. I will quickly cover what’s happened with the markets over the last couple of days. We actually did see prices rise a little bit on Friday, mainly due to some possible Iranian crude restriction. And then we’ll look at rig counts, which have began its plunge. So we’ll, we’ll kind of opine about all that and a bag of chips guys. As always, I am Michael Tanner joined by Stuart Turley. Where do you want to begin? [00:01:52][66.2]

Stuart Turley: [00:01:53] Hey, let’s start with our buddy, David Blackman. What a cool cat he is. Reconciliation permitting reform will make America… big again. I’ll tell you what, this is really critical because either we’re going to have low cost energy or we’re not going to. Have low cost energy. And the only way to get there is through the regulatory issues. And he outlines it really well. https://energynewsbeat.co/david-blackmon-reconciliation-permitting-reform-will-make-america-go-big-again-opinion/https://energynewsbeat.co/david-blackmon-reconciliation-permitting-reform-will-make-america-go-big-again-opinion/. Take the keystone XL pipeline canceled after a decade of NEPA induced delays. I think if we can get this done and what he’s talking about is putting it into the, the bill for funding through reconciliation rather than have to go through this. Good news, bad news thing. I think if Congress would actually do their frigging job, we wouldn’t have to go through this shenanigans, but I think it’s one way to do it. [00:03:07][74.6]

Michael Tanner: [00:03:08] Yeah, it’s, and reconciliation has already has, has always confused me. And basically as a layman’s term for what reconciliation is, is it’s a way for an, basically is Congress has the power of the purse. So if you want to spend money, you’ve got to go through Congress. It’s one of the interesting parts about what Doge is doing. And I think why there’s a lot of pushback on Doge because it’s coming from the executive branch and not necessarily Congress, how can you. get rid of funding that Congress has approved. And that really screams, well, Congress shouldn’t have approved it in the first place, but will that? [00:03:41][33.1]

Stuart Turley: [00:03:40] Well, that is not doing their job, so. [00:03:42][2.0]

Michael Tanner: [00:03:42] So we’ll leave that elsewhere. But basically, what reconciliation allows is for an expedited process in order to consider bills that would implement policies. that go within the Congressional budget. Basically, it’s a way to almost streamline the whole, I mean, because we haven’t passed a budget in 20 years. I think Bill Clinton, ironically, was the last person that actually passed a budge. More and more sounds like a Republican every day. If you go back and listen to the stuff he talked about in the mid-90s, it kind of funny. [00:04:13][30.8]

Stuart Turley: [00:04:14] You know, it’s even Hillary where it’s like Hillary and Bernie sounded a lot like President Trump. They got the clips that are comparing them. It’s hilarious. [00:04:23][9.1]

Michael Tanner: [00:04:26] in in in Clinton’s defense, he did balance the budget. So but we’ll leave it, we’ll we’ll leave it there, we will leave it there. But the point is, so in all of this reconciliation can be used for good. can also be used for bad specifically within and what David Blackman’s bringing up is within this NEPA policy, which if you’re in the mining space, you know about NEPAs, not your enemy, but it’s your quagmire. You’ll spend years and years in these environmental reviews about sagebrush grass and making sure that you don’t step on a squid in the middle of Idaho. And finally, after 10 years, you’ll get a final ruling from NEPA and boom, you can build a mine. Now, some of this is good, as I like what David Blackman points out, that While this was in, when this was enacted in 1970, there was great reasons for it. And it was a good bill, much like the Clean Air and Water Act. When it was enacted, in the mid seventies, it was a great thing. We needed it. I mean, you could light the Ohio river on fire and it would burn because of all the stuff you were pumping into it. Now, is that what we need today? Maybe, maybe the, maybe what, what worked today, maybe doesn’t work 10 years ago or 20 years ago. What worked 20 years ago, doesn’t work today. It’s not to get off track here, but it’s a little bit of my argument with tariffs. Everyone says, well, they worked in 1913. Great, well let’s just get rid of all the cars and we’ll go back to the horse and buggy. [00:05:49][83.8]

Stuart Turley: [00:05:49] horse and buggy did you say you’re on crack no i am not on you said oh not to get off track oh not get off [00:05:56][7.3]

Michael Tanner: [00:05:56] Some people might think I’m on crack, but no, it’s just caffeine and water is usually what I’m consuming. But again, Oh, it worked in 1913. Okay, great. Well, let’s just go back and go, let’ go live in 19 13 then. Let’s get rid of the car. Let’s go ahead and, you know, let get rid off plumbing and indoor plumbing. You can go use the outhouse outside if you want and going with this. I’m not sure what I’m saying is what he’s bringing up is that the fact that when was enacted, it was good. and today it’s bad and so being able to use things like reconciliation to go after NEPA is critical because we need to be able to be nimble with our laws. A law shouldn’t be static to a point they should mold with what’s going on. Now obviously there are some things like that are in the constitution of the bill of rights that shouldn’t Be as malleable but some some law that was passed in 1970 should be malleatable to work with the times and I really like what he’s pointing out there. is that yes, this was good, but now it’s bad and here’s how we gotta go about changing it. [00:06:59][62.5]

Stuart Turley: [00:06:59] Cool. Hey, let’s roll to the next one. Speaking of this, we’ll come back up again here in the, in one of this other stories here, but Michael, you can’t buy this kind of stuff to tee this next article, you will be more skeptical of Chinese investments after a steel rescue. Okay, Michael, they, their steel industry was bailed out by China. Okay. They got some real problems. What happened was they’re now having to look at nationalizing the soul, their, their steel mills because China is having a tit for tat with China. The UK government will make a skeptical approach to future Chinese investments in sensitive sectors of the economy after it was forced to rescue the country’s last primary steel manufacturer. Michael, Chinese broke owner broke down Reynolds saying that had been speaking more than double the 500 million or 654 million by the government to sustain the operation part of it is coking coal. The government had to step in and buy coking coal from Japan. Well, I backed up and track down that coal. Coal came from Australia. Japan does not have any coking. Coal. So the amount of metric tons, are you ready for this? That that shipment did let’s go through the numbers per ton cargo, Australia to Japan, 2,400 metric tons of CO2, Japan to the UK, 4,895 for a total of 6,938 metric tons of CO2 for shipping that coking coal across both legs. So here we have the left Green New Deal shutting down their coal plant and having a foreign agent buy it and now throw this into the ugly squirrel on the treadmill. They’re trying to get back to the weapons manufacturing to help the EU out and potentially join the EU again. You can’t buy this kind of stupid. This is about the dumbest thing I’ve heard of in years. [00:09:18][139.0]

Michael Tanner: [00:09:20] I mean, you’ve said it absolutely correct. There’s there’s very little for me to other than this is what happens when you try to green signal, you always are going to end up on the wrong side of something, because I mean this decision is is is clearly leading to more CO2, which is what they don’t want. Now we can argue whether or not putting more CO 2 in the atmosphere is ultimately bad or good. We asked a friend of the show, Gregory Wright, so he’d tell you it’s a great thing, but the fact is they’ve adamantly said they don’ want this. And now they’re having to make decisions that add to it. And in the. [00:09:53][32.7]

Stuart Turley: [00:09:53] The amount of money that has been wasted, Michael, is absolutely horrific. You know, if you’re going to have power, you’re gonna have to have low cost power period. And Chris Wright is let’s build back, build baby build is what Chris Wright in order to do that. He understands you got to have a low cost energy, but let’s go to the next story here. This one is really kind of fun. I had fun with Groke on X on this one. The energy storage market is getting clobbered by the tariff wars, and Felicity Broadstock on OilPrice.com gave me the idea for the story and she had some really good points in there. The tariffs will reach up to 82% on Chinese grid batteries by 2026, could force US energy companies to reconsider spending decisions. I think this brings up Michael a bigger question and when you look at the direct effect of tariffs on energy and storage it’s going to really have to redefine how grid operators look at renewable energy. If they don’t look at renewable energy as fiscally responsible you shouldn’t have battery storage unless it’s for temporary. Battery storage is not economically, nor is it good for the environment. It’s unbelievable. [00:11:16][82.7]

Michael Tanner: [00:11:17] No, it is unbelievable. And I think for the people that think lithium ion batteries are green, I highly, highly recommend recycled yet. [00:11:24][7.8]

Stuart Turley: [00:11:25] They can, but it costs almost three times the amount just to get rid of them. And then they’re burning and the fires are just absolutely horrific. [00:11:34][9.4]

Michael Tanner: [00:11:36] Unbelievable. Let’s go to this last one here. [00:11:38][2.0]

Stuart Turley: [00:11:38] Let’s go to the last one. Why oil prices are not always good news. And I thought this was a great one from Robert Rapier. Oil is a huge boon for the Texas economy. In fact, how many billions of dollars did we have in surplus because of the great oil and gas environment out there? Why is Texas half the price of the electricity than the other states? It’s because they have a balanced grid. and so when we take a look at The U S and as this article points out that Robert points out, we are looking from net importer to net exporter for right now, the import U S was importing 12.5 million barrels of oil and finished products per day at that time, dropping oil prices translate to major savings, but in 2025, the pictures reversed. The U.S. is a net exporter of about 2.3 million barrels per day in oil-refined products. When oil prices fall, the U. S. now loses more on exports than it does on its imports. And I was like, holy smokes, that’s a huge impact on the budget. [00:12:49][70.8]

Michael Tanner: [00:12:49] No, I mean, this is a great, great article when, when talking about the reason why low oil prices aren’t always good. I mean they are good from a, from a cheap gasoline price. Now there is a little bit of, well, the price of oil is not quite as tied as this article talks about to gas prices. If oil prices drop... you may not see gasoline prices drop as much as it used to be mainly because we’re a huge net importer of oil and obviously net oil or oil traded on the global market trades at a premium. You have to add in transportation costs and add in all this other stuff to where it may not actually fallen out. We actually know that this article I think points out very keenly that falling oil prices actually worsen the U.S. trade deficit. I was on vacation last week and I was having this talk with my brother and I was just trying to get an answer to the question. Do we have to be a net, a net exporter? Obviously there are certain things we need to export energy, technology, things like that, but do we have do on a net net basis actually be a net exporters? [00:14:01][71.4]

Stuart Turley: [00:14:01] What it is, what was your brother’s response? [00:14:03][1.7]

Michael Tanner: [00:14:04] Well, he didn’t really have one because we just, you know, no one knows, but you just hear from Laura, you hear from Paul Krugman that, oh, we need to be a net exporter of It’s like, well, do we? We need to make sure we export the right stuff, but we may need to import certain stuff because guess what? That’s the free market working. [00:14:20][16.8]

Stuart Turley: [00:14:21] Well, here’s where I’m going to throw this ugly baby squirrel on our doorstep. And an ugly baby would look like in EPA regulations, why have we not updated our refineries to run off of our own sweet light crude as opposed to having to blend and mix? We wouldn’t even have to worry about importing oil per se if we didn’t have to blend it. in order to be able to run into our refineries. And now we are the light sweet crude being blended is our exports are down in oil because people don’t have their refinerys set up for that. So it’s an EPA issue and Lee Zeldin needs to make sure we get some new budgets enabled or put. better refineries that are better for the environment. And we wouldn’t have that problem. [00:15:17][56.1]

Michael Tanner: [00:15:18] And obviously the Jones act makes it difficult to take oil. And I was actually having a really interesting conversation. I got a call a couple of weeks ago from a, from an old buddy of mine, who now works at the Hawaii state energy department, and they get pounded with the Jones Act because they have to buy all their oil overseas. They are a 90% of their economy and energy is, is oil based, not even natural gas based oil based. So the Drones Act… kills them, and it’s one of the big reasons why they’re- [00:15:49][30.9]

Stuart Turley: [00:15:49] prices are so high. 63% of the electricity generated in Hawaii is by oil. Heating oil is basically what it is. It is the worst for the environment. Here we have… [00:16:03][13.6]

Michael Tanner: [00:16:03] They can’t even get it from the Middle East. They don’t even need to get it from America. [00:16:05][2.3]

Stuart Turley: [00:16:06] No, it’s actually disgusting. [00:16:07][1.4]

Michael Tanner: [00:16:08] It is so this is a great article. I’d highly recommend everybody go checking it out. You can hit the description, but let’s jump over here and talk finance guys. But first let’s go ahead and pay the bills. As always, thank you for, thank you, for checking us out here on the world’s greatest website, energynewsbeat.com. Stu and the team do a tremendous job making sure that website stays up to speed. Everything you need to know to be at the tip of the spear when it comes to the energy and the oil and gas business. Go ahead and hit that description below for all links to the timestamps, links to the articles. You can also check us out, theenergynewsbeat.substack.com, a great place to stay up to speed with some of our top articles from the website, along with some custom articles that subscribers and paid subscribers only get, highly recommend. You check that out, great way to support the show. Go ahead and give us a subscribe there and also on YouTube. And we also wanna thank Reese Energy Consulting for supporting the show, guys. If you’re in the upstream space and you’re not getting your. Net purchaser statements reviewed by a marketing team. You’re losing hundreds of thousands of dollars a year. Highly recommend calling up Reese Energy Consulting. They will help you out with everything. If you’re in the midstream space looking at and looking to get into the LNG space or are in the LNG space, not working with Reese Energy consulting is costing your company hundreds of thousand, if not millions of dollars per year because they know how to, they’re connected everywhere. They work with some of the top companies. We love everybody over there. So guys, as always, reeseenergyconsulting.com, you can see them in the description below. And finally, guys, it’s never too early to start thinking about your taxes. If you wanna be able to walk around and pretend you’re Billy Bob Thornton from Land Man, investing in oil and gas is a great way to do that. Don’t be deterred by low oil prices right now. If, much like you dollar cost average into the S&P 500 index funds, you got a dollar cost averaged. into oil and gas. So it’s a great time if you’re interested in getting involved and learning about what it takes to get into the oil business. We have a great e-book that we can send you a bunch of resources. Go ahead and go to investinoil.energynewsbeat.com, fill out the form, and we’ll get you all the information on what investing in oil and glass looks like. Again, that’s investinoil.energynewsbeat.com. Let’s go ahead and look at some of these indexes too. S&P 500 on Friday is up market. We actually, you know, S&B 500 was up a 1.8 percentage points. NASDAQ was up 1.89 percentage points, two and 10 year yields. The spread was absolutely incredible. Two year yields was up 2.93 percentage points the 10 year yield was up, 1.6 percentage points dollar index dropped about one percentage points below 100 for the first time in a hot minute. So very interesting there. Bitcoin popped above 84,000, sitting about 84,800. Crude oil was up about $1.50, closed at 61.50. Brent was up 1.3 percentage points, or about $0.87 to 64.75. Natural gas, fairly flat, dropped about $3.00 to $3 and 25 cents. I mean, the main reason for the pop, I think everybody is obviously wondering what tariffs are going to do. It was a wild week, Stu. We saw we were all the way at at one point down to $55 oil. It was Armageddon in my inbox. It was a crazy week to be on vacation. I had to pop. That’s why I had to pop on and do a quick show. It’s a massacre in my inbox, but I think people have calmed down a little bit. Obviously with, with the backing off of the tariffs, we, you know, the, the idea that a recession may, may or may not happen. We did see on Friday, you know, U S energy secretary, Chris Wright, who, you know, came out and basically said they’re going to end Iran’s oil exports as part of its effort in order to get them to come to terms over their nuclear agreement. We saw Steve Witkoff was there. They were in Qatar, I think in Doha, doing some negotiations there. And so that really what drove the market up, because that could be about another three, 400,000 barrels. We did see the EIA come out and actually drop its global economic growth forecast. And basically said, because of that, that’s going to weigh heavily on oil prices. Everybody is basically dropping their oil price forecast. They also estimated that China’s 2025 economic growth is expected to fall relative to where it was last year. And, you know, we did see that oil consumption. This was an A and Z bank analyst. They forecast that oil consumption will decline by about 1% if global economic growth falls below 3%, which is at this rate, it does look like that’s going to happen at least in the short term. So that 1% of global oil production, of consumption, that’s gonna put us in a highly oversupplied market. We did see stew rig counts drop on Friday. We lost seven rigs. So this is kind of the beginning of what’s going, I think, going to be a massive drop in the amount of rigs running right now. I mean, obviously there are. through our rigs under contract that have already been agreed upon. And so what that means is you’re going to see kind of a slow fall off. You know, if you’ve got a four rig program running, you got to go ahead and finish that four rig programs before you get it off. So, but it’s going to be very interesting to see where and what happens with this program. and where rigs go from here. I know the frac, the frat count spread is dropping and tumbling even more. So a pretty, pretty spicy week. It’s really all I’ve got. I mean, the only thing I’m, you know, kind of everyone’s quiet right now. And on the M and a front for good reason, no one’s trying to, they’re waiting for prices to bump a little bit before they can sell, but a lot, a lot of interesting stuff, Stu, what, what are you saying? What should people be worried about in this week upcoming? [00:21:46][337.7]

Stuart Turley: [00:21:47] Oh, I think just watch for more entertainment. The United States is going to be the happening place for business and commerce. And I truly believe that the golden age is upon us. I think we’re at, everything’s going to be fine. [00:22:01][14.6]

Michael Tanner: [00:22:02] That’s what we want to see. So why, guys? Well, with that, we will go ahead and let you get out of here and get back to work. We appreciate you starting our week here with Energy Newsbeat for Stuart Turley. I’m Michael Tanner. We’ll see you tomorrow, folks. [00:22:02][0.0][1306.2]

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