Spanish LNG imports down, reloads up in November

Energy News Beat

Spanish liquefied natural gas (LNG) imports dropped in November while reloads rose compared to the same month last year, according to Enagas.

LNG imports decreased by 14 percent to about 22.8 TWh in November and accounted for 69.4 percent of the total gas imports. In October, LNG imports reached some 21.8 TWh.

Including pipeline imports from Algeria, France, and Portugal, gas imports to Spain reached about 34.5 TWh last month, a slight drop from some 34.7 TWh in November last year, Enagas said in its monthly report.

Moreover, national gas demand in November dropped by 6.8 percent year-on-year to some 26.1 TWh.

Demand for power generation declined by 35.5 percent year-on-year to about 6.1 TWh last month, while conventional demand rose by 7.9 percent to 19.9 TWh, the LNG terminal operator said.

The firm previously said that August of this year marked the first time in its history that Spain has managed to fill 100 percent of its underground storage facilities.

Storage facilities were also full in October and November, according to Enagas.

Enagas operates a large network of gas pipelines and has four LNG import plants in Barcelona, Huelva, Cartagena, and Gijon.

It also owns 50 percent of the BBG regasification plant in Bilbao and 72.5 percent of the Sagunto plant, while Reganosa operates the Mugardos plant.

In August, Spanish power group Endesa delivered the first commercial cargo to the El Musel LNG terminal in Gijon.

Enagas awarded the logistics services contract to Endesa in July and it also completed the sale of a 25 percent stake in the El Musel LNG terminal to Reganosa.

The seven operational Spanish LNG regasification terminals, unloaded 25 cargoes last month, down by five cargoes compared to November 2022, according to Enagas.

The US was the biggest LNG supplier to Spain for the second month in a row in November with about 12.7 TWh, up from 8.17 TWh last year, followed by Algeria with 9.35 TWh, a rise from 6.39 TWh in November 2022.

Nigeria was the biggest LNG supplier to Spain in September and the US in August. Prior to that, Russia was the biggest supplier for three months in a row.

Spanish LNG terminals received 6.43 TWh from Russia in November, up from 5.95 TWh last year, while Nigerian volumes reached 3.7 TWh, and Qatari volumes reached 0.87 TWh, the data shows.

Spanish LNG terminals loaded about 2.79 TWh in November, up 41 percent compared to some 1.98 TWh in November 2022 and also slightly up from about 2.66 TWh in October.

The Sagunto LNG terminal reloaded about 1.84 TWh of LNG, followed by the Cartagena terminal with about 0.48 TWh and the Barcelona terminal with about 0.29 TWh.

Moreover, the number of truck loads at the LNG terminals rose by 9.2 percent year-on-year to 1017, the data shows.

The Barcelona LNG terminal completed 211 truck loads in November, while the Huelva terminal completed 204 truck loads and the Cartagena terminal completed 197 truck loads.

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Daily Energy Standup Episode #267 – Unveiling Russia’s Shadow Fleet, Climate Realities, and Media’s Vital Role in Energy Narratives

Energy News Beat

Daily Standup Top Stories

Russia’s Shadow Fleet – 24 min Bloomberg Video – “Ships aquired by “We don’t know who; and insured by who knows?”

ENB Pub Note: Michael and I have talked about the “Shadow Fleet” for several years. Iran had been ahead of Russia in avoiding sanctions, but both have successfully made the United States irrelevant after the […]

EU country still buying Russian gas – media

The Netherlands reportedly purchased over 200 million cubic meters of Russian LNG in September, RIA Novosti has reported The Netherlands continues to import Russian gas despite earlier pledges to stop buying the commodity, the news […]

Russian Natural Gas and Geopolitical Realignment—a reverse domino theory

ENB Pub Note: This is one of the Energy News Beat series’s most important articles. I interviewed George McMillan on a 2-hour podcast interview. He is the CEO of McMillan Associates, a geopolitical and analytical […]

The left is silent on the imperialsit war for oil from Venezuela – Why?

Patrick Robertson posts on LinkedIn: While Western peace movements have eyes only for Gaza, their former model socialist republic, Venezuela, is threatening to invade its smaller and less Left-wing neighbour, oil-rich ex-British Guyana. Deafening silence […]

We no longer need the Cop circus – technology and markets are already solving the climate crisis

ENB Pug Note: The author from the Telegraph raises some interesting points about the COP Circus. I agree that the baton has been passed to big oil and that money is now available for green […]

Mark Masters’ Eleven Steps for Saving America Via the Energy Sector’s Renewed Thought Leadership and Ultimate Narrative Dominance Within National Media

I never dreamed that my podcast would reach the global market and the success that we have obtained. And when guests like Mark Masters are on the podcast, it really starts to sink in. The […]

ENB #160 What is the United States afraid of? George McMillan, CEO of McMillian Associates, stopped by the Energy News Beat podcast. – UPDATE

I have to tell you that of all the podcasts that Michael Tanner and I have done; it seems like they are getting more critical and covering more ground in the energy market. I had […]

 

Highlights of the Podcast

00:00 – Intro
02:35 – Russia’s Shadow Fleet – 24 min Bloomberg Video – “Ships acquired by “We don’t know who; and insured by who knows?”
05:17 – EU country still buying Russian gas – media
06:47 – We no longer need the Cop circus – technology and markets are already solving the climate crisis
09:11 – ENB #160 What is the United States afraid of? George McMillan, CEO of McMillian Associates, stopped by the Energy News Beat podcast. – UPDATE
09:35 – Russian Natural Gas and Geopolitical Realignment—a reverse domino theory
11:41 – The left is silent on the imperialist war for oil from Venezuela – Why?
12:44 – Mark Masters’ Eleven Steps for Saving America Via the Energy Sector’s Renewed Thought Leadership and Ultimate Narrative Dominance Within National Media
15:02 – Outro

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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 podcast. My name Stuart Turley, President and the Sandstone Group. I’ll tell you what, today is kind of an exciting day from a standpoint. We’ve got a couple new series that we’re announcing today is December 11th. Welcome. And we are going to have a Zen tastic discussion. Michael’s out on assignment today. But today I’m going to talk about Russia’s shadow fleet. This really fits into the ENB thread very nicely. There’s EU countries still buying Russian oil and gas. Here’s another great article. We no longer need the cop circus. Technology and markets are already solving the climate crisis. Tell you what is going on. I had some great interviews, but this one I agree with and don’t agree and I’ll cover that here in just a minute. OPEC leader tells members to block any climate summit deal to curb fossil fuels. You’re starting to kind of get a little bit of a thread here. Russian natural gas in geopolitical realignment. A reverse domino Theory. This is by George Macmillan. George Macmillan I had an earlier podcast and I mean, it was a two hour podcast that is phenomenal. It seemed like five minutes for me. Unbelievable. We’ve got a geopolitical series by George just kicking out. The next one is the left is silent on the imperialist war from oil from Venezuela. I’m on the inner energy transition with David Blackmon, Armand Gavin from Brazil and Tammy Nemeth tomorrow morning line at 8:00 Central on LinkedIn. And looking forward to being live with them to talk about this. So with that, all of these stories will be in the show note. Also want to give a shout out to Mark Masters. Mark is a phenomenal leader in the media space. The staff is rolling his podcast out that we did. We are starting a series with Mark and other energy leaders about how the energy space can change and potentially make a gigantic difference to the future of the United States. We got a lot on the table today, guys. [00:02:34][139.6]

Stuart Turley: [00:02:35] So let me start off with Russia’s shadow fleet. Michael and I have been talking about this for a very, very long time. The Shadow fleet is old tankers that are being bought by Iran, Venezuela. There’s an estimated 500 to 600 tankers in the fleet. They take their transponders, they turn them off. They’ll meet with a legitimate tanker. Here’s the catch. These tankers are not insured through the normal insurance companies for oil. If something happens and these rust buckets have a problem. Let me bring up this one right here. This rest bucket, one of the best movie lines that’s out there says, I think I need a tetanus shot just from looking at it. That was from up Periscope with Kelsey Grammer. This is an amazing movie. It’s a Bloomberg video that they have had a excellent aging discussion or of the aging fleet that’s out there. And they’re a direct response to the weaponization of the U.S. dollar that has gone on. This weaponization of the U.S. dollar is going to come back and bite the U.S. in the market. It is not going to be pretty. So in this article, it says this little piece of paper on a dark ship may say that it’s insured, but it’s not worth the paper it’s written on, said Simon Lockwood, a marine executive with the insurance broker. Two thirds are carrying Russian crude, are now insured by unknown source these tankers are registered to I don’t know. And they are insured by unknown or who knows? So this is a Abbott and Costello skit waiting to happen. I was planning on that today. Michael’s out on assignment. We’ll have to come up with that again some other time. So with that, how this plays in and this is an excellent video, it’s worth all of your time to watch it. The key thing is this plays into OPEC and OPEC plus, because they’re worried that all their OPEC members are producing more than their quotas, their quotas that are imposed on them that they’re allowing or they’re going to do. In fact, Brazil says, oh, we are now in OPEC and oh, by the way, we’re going to go ahead and produce everything that we can anyway. The CEO of Petrobras just basically put that out last week. So let’s go to the next one that feeds into that. [00:05:17][162.0]

[00:05:17] The EU country is still buying Russian gas for us as well. United States. Go figure that out. The Netherlands reported purchase 200 million. Let me get to the point here. 200,000,000m³ of Russian LNG. The i r a Novosti has reported it is importing. I’ll tell you what countries are going to buy energy because it’s either goes through energy poverty, as George McMillan says, or you’re going to realign your entire entire geopolitical alignment on energy. So if you think you have an ally, think again. If you can’t protect their energy supply lines. So with that, let’s go ahead and go to the next one. I love this article from the standpoint that with I had the pleasure of producing Rey Trevino’s podcast with Grace Dennehy. She is the Miss America 2023. And also I also put a short out and want to give a shout out to Grace. She is a nuclear engineer, graduating, I believe, this month. And I mean, she is one sharp young lady. And I mean, she was in Dubai. It was midnight in the U.S. and it was 9 a.m. and she was on fire. So excellent. I want to give her a shout out. But this is an interesting article saying that we cop no longer needs the cop circus. The U.N. has been putting this on for a very long time. I couldn’t agree more. But when we sit back and say that humanity and the markets know the best path has, it’s kind of a misnomer from the standpoint that they are still printing a lot of money. The energy hypocrisy from Bill Gates and BlackRock is out there. BlackRock is saying that all ESG funds have lost billions of dollars. They lost over $5 billion in their ESG funds. It’s now okay to invest in oil and gas. There’s a little bit of energy investing hypocrisy. Bill Gates came out and said, oh, by the way, climate change is not going to kill us. He’s now rescinding that. I saw an interview with him saying, oh, no, it’s now bad. Somebody must have got to him. So I’m not totally sure that it is 100%. They’re saying, well, we are seeing the oil and gas companies. Let’s take Saudi Arabia and Dubai. Saudi Arabia is using their oil profits in order to pay for green energy. Again, as I’ve always said, Saudi Arabia, I don’t agree with everything socially that they do, but I applaud the leadership for taking care of Saudi Arabia, first taking the oil and gas profits and then moving to renewables and funding both. That is actually an applicable thing to go forward with. And so the fact that there were so many oil companies there and so many of the green agenda folks that were not pleased by that, the best thing about cars was nuclear. The 22 countries that signed the nuclear deal is phenomenal. We need all forms of energy. You hear me say this all the time, but we need it nuclear. We need natural gas. We need oil. Because, as you know, you sit back and think, Ronald keeps telling me, you know, you can build an iPhone from a wind farm. You have to have oil. The just stop oil folks need to check their living standards. So let’s go to the OPEC leaders. Now, I’ve already mentioned that story. I don’t want to overdo it, but let me step into the next article. George Macmillan. Absolutely a hit. I had the two hour interview with George. It is already out there. It is phenomenal. I can tell that people are listening to it and then having to come back to it. It is just amazing. On time, on Page, who’s been on there and the article. Unbelievable. [00:09:34][257.5]

Stuart Turley: [00:09:35] This is this article is Russian Natural Gas and Geopolitical Realignment a Reverse Domino Theory. This article is incredibly important because this really is the first part of a series where George is talking about how all of the pipelines matter, how the geopolitical alignment is, and that the West is really got things going on and they’re got one mission. That mission is to stop Russian low cost natural gas and oil. Going to market the geopolitical strategies and chess matches that are out there. I don’t understand why. I understand now better after talking to George, after seeing all of his academic studies that George has done and what is out there. He is putting the thread together like you wouldn’t believe. So when you talk about now, here’s another tidbit. I visited with a one of the head of the investment side for Gazprom years ago. $0.13. That is what Gazprom cost to market on their natural gas was at that. That is profit to the Russian countries. So when you sit back and think of the amount of money that sanctions have not cost Russia, what it did was it built the dark fleet. It built additional pipelines. It’s realigning all of what we think is the United States, our political allies. This article from George is critical. Come in, read this. And when you sit back and think about our $34 trillion in debt, we cannot sustain our country in this particular model. Who you vote for matters. [00:11:37][121.5]

Stuart Turley: [00:11:38] Here’s where I’m bringing up this next piece of the puzzle. The left is silent on the imperialist war for oil from Venezuela. This is an excellent article. And when you sit back and take a look, it’s from Patrick Robinson. He posted this on LinkedIn. Want to give him a shout out? It’s amazing that the left is really not saying anything about Western. The we’re kind of like just kind of ignoring Venezuela’s power grab over the oil and gas of Guyana. I’m going to be on the energy transition with Armando tomorrow, as I mentioned, and I’m going to have to do some research on this. Tami Nemeth is just with the Nemeth report is phenomenal. David Blackmon is also phenomenal, and I’m enjoying visiting with them about this article, as well as the other key issues and sources that they’re bringing to the table. So the last one that I want to just bring up is Mark Masters. 11 Steps for Saving America via the Energy Sector, Renewed thought leadership and Ultimate narrative dominance within a national media. I think personally, one of the reasons Michael and my podcast, the podcast series with our Daily Show with Michael and I and then my CEOs and industry thought leader articles has gone nuts. 5.5 million article reads on energy news And we’ve had over a million downloads on our podcast this year. Unbelievable. I’d like to thank every one of our listeners. I can’t begin to tell you. Thank you very much. This is an important podcast from Mark Masters. I’m going to have several more podcast with Mark. I’m writing several other things. This is I’m already in discussions with other oil and gas CEOs about this entire process. Mark lays out several key things that I’m going to talk about again in a few others. Understanding number one with no friends, the national media, the entire energy sector must become the media. This is critical. The understanding to the ESG form of corporate communism is designed in part to curtail investment in the domestic energy producers. Understanding number three Domestic energy unleashed is far better faster to break the back of inflation. That is huge. Understanding for an energy sector supported media machine will make the energy sector be loved by the general public. The only way this ties in to all of the other articles, this energy thread today is about the most important that we’ve done. And then the last piece of this puzzle is it can only be the energy sector that the agriculture sector helps. So we can tell the agricultural story. And the agricultural story is the only one that we can tell. I’ve got to get this articulated correctly with Mark. Hold tight. I’m teeing you up for these. [00:15:02][203.9]

Stuart Turley: [00:15:02] So with that, make sure that you have an absolute wonderful day, a wonderful week. Hug your family and be prepared for any unknown natural disaster Or manmade. The government may not be there for you just because of the volume. The f e r c said major blackouts may be coming because of the grid issue. So. Manmade or natural disaster. Make sure that you’re ready to take care of your family. Thank you. With that, my name’s Do. Turley and Michael will be back here tomorrow. Thanks. Have a great. [00:15:02][0.0][884.5]

 

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ExxonMobil And A Possible War In South America

Energy News Beat

On December 3, 2023, a large number of registered voters in Venezuela voted in a referendum over the Essequibo region that is disputed with neighboring Guyana.

On December 3, 2023, a large number of registered voters in Venezuela voted in a referendum over the Essequibo region that is disputed with neighboring Guyana. Nearly all those who voted answered ‘yes’ to the five questions. These questions asked the Venezuelan people to affirm the sovereignty of their country over Essequibo.

“Today,” said Venezuelan President Nicolas Maduro, “there are no winners or losers.” The only winner, he said, is Venezuela’s sovereignty. The principal loser, Maduro said, is ExxonMobil.

In 2022, ExxonMobil made a profit of $55.7 billion, making it one of the world’s richest and most powerful oil companies, notes Vijay Prashad, the Director of Tricontinental Institute for Social Research, and co-author to famous philosopher Noam Chomsky.

Companies such as ExxonMobil, exercise an inordinate power over the world economy and over countries that have oil reserves. It has tentacles across the world, from Malaysia to Argentina. In his Private Empire: ExxonMobil and American Power (2012), Steve Coll describes how the company is a “corporate state within the American state.”

Walking through the various polling centers in Caracas on the day of the election, it was clear that the people who voted knew exactly what they were voting for: not so much against the people of Guyana, a country with a population of just over 800,000, but they were voting for Venezuelan sovereignty against companies such as ExxonMobil. The atmosphere in this vote — although sometimes inflected with Venezuelan patriotism—was more about the desire to remove the influence of multinational corporations and to allow the peoples of South America to solve their disputes and divide their riches among themselves.

When Hugo Chávez won the election to the presidency of Venezuela in 1998, he said almost immediately that the resources of the country — mostly the oil, which finances the country’s social development — must be in the hands of the people and not oil companies such as ExxonMobil. “El petroleo es nuestro” (the oil is ours), was the slogan of the day. From 2006, Chávez’s government began a cycle of nationalizations, with oil at the center (oil had been nationalized in the 1970s, then privatized again two decades later). Most multinational oil companies accepted the new laws for the regulation of the oil industry, but two refused: ConocoPhillips and ExxonMobil. Both companies demanded tens of billions of dollars in compensation, although the International Center for Settlement of Investment Disputes (ICSID) found in 2014 that Venezuela only needed to pay ExxonMobile $1.6 billion.

In 2015, ExxonMobil announced that it had found 295 feet of “high-quality oil-bearing sandstone reservoirs”; this is one of the largest oil finds in recent years. The giant oil company began regular consultation with the Guyanese government, including pledges to finance any and every upfront cost for the oil exploration. When the Production Sharing Agreement between Guyana’s government and ExxonMobil was leaked, it revealed how poorly Guyana fared in the negotiations. ExxonMobil was given 75 percent of the oil revenue toward cost recovery, with the rest shared 50-50 with Guyana; the oil company, in turn, is exempt from any taxes.

Even worse for Guyana is that the deal is made in waters disputed with Venezuela since the 19th century.

The December 3 referendum in Venezuela and the “circles of unity” protest in Guyana suggest a hardening of the stance of both countries.

War does not seem to be on the horizon. The United States has withdrawn part of its blockade on Venezuela’s oil industry, allowing Chevron to restart several oil projects in the Orinoco Belt and in Lake Maracaibo. Washington does not have the appetite to deepen its conflict with Venezuela. But ExxonMobil does. Neither the Venezuelan nor the Guyanese people will benefit from ExxonMobil’s political intervention in the region. That is why so many Venezuelans who came to cast their vote on December 3 saw this less as a conflict between Venezuela and Guyana and more as a conflict between ExxonMobil and the people of these two South American countries.

Source: Modern Diplomacy, 

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Putin’s Russia is closing in on a devastating victory. Europe’s foundations are trembling

Energy News Beat

We need to talk about Ukraine. While the world’s attention has been focused on the war between Israel and Hamas, grim tremors have been shaking that rich, black soil. Ukraine’s counteroffensive has failed – or, in Volodymyr Zelensky’s words, “did not achieve the desired results”.

As exhausted Ukrainians fall back from Russia’s ramparts and minefields, the initiative is swinging to the invaders. Russia is advancing through the skeletal remains of what used to be Marinka, a city in Donetsk, perhaps of greater psychological than strategic importance. Missiles are again hitting Kyiv. Ukraine’s first lady, Olena Zelenska, has taken to the BBC to warn that her country is in “mortal danger”.

Now, it is the Ukrainians’ turn to dig in, to try to hold what they have. As in 1914, a fortified line runs the length of the front, from the Dnieper delta to the Russian border. And, as then, military technology favours the defender, so that tiny gains are bought at terrible cost.

The First World War eventually ended in part because the Allies had greater manpower. Brutally, they were able, especially after America had fully mobilised by the beginning of 1918, to throw more men at the front lines than the Central Powers.

This time, the demographic advantage is with Russia, whose population is three-and-a-quarter times the size of Ukraine’s. Russia has switched a third of its pre-war civilian production to weapons and ammunition, and may now have the edge when it comes to drones – that modern equivalent of the barbed wire and machine guns that gave the defending side such a lethal advantage in the Flanders mud.

The long-term costs to the Russian people of this shift to a wartime economy are dreadful. Vladimir Putin has condemned his long-suffering muzhiks to years of penury and hunger. But, for now, it has done the trick. Russia has made it through to winter without a Ukrainian breakthrough.

We are all prone to hindsight bias, and there will no doubt be articles about how it was always going to be tough to unseat entrenched defenders. But this stalemate was far from predictable when the counteroffensive was launched in June.

I was one of those who expected Ukraine to break through to the Sea of Azov, a move that might well have ended the war. During 2022, Ukraine had demonstrated that Russia could not resupply Crimea across the Kerch Strait. Breaking the land bridge would have left the Russian garrison on the peninsula cut off. Ukraine could have turned off its electricity and food, and a negotiating space would have opened.

Why did I get it wrong? I had been talking not only to Ukrainians, but to British military observers with direct knowledge of the battlefield. They had watched the extraordinary Ukrainian gains in Kharkiv and Kherson in 2022 – gains that had emboldened the West to offer the kinds of matériel that they had previously held back from sending, lest it fall into enemy hands.

Ukraine now had long-range missiles, mine-clearing kit and modern tanks. At the same time, the Prigozhin mutiny had shown how soft Russia was behind the hard shell of its front lines.

But the invaders had learnt from their earlier mistakes. While Ukraine rushed to train its men in how to operate their new weapons last spring, Russia seeded mile after mile of landmines, built fortifications, dug trenches and amassed drones.

Putin needs only to hang on for another 12 months. Even if Donald Trump is not elected – the former president makes no secret of his admiration for the Russian tyrant, once going so far as to declare that he trusted Putin before the US security services – Republican congressmen have turned against the war. Last week, they blocked President Biden’s £88 billion aid package to Ukraine.

Their concern is supposedly financial, but a bigger motive may be their partisan dislike of Biden, the same ignoble impulse that led an earlier generation of Republican congressmen to oppose Harry Truman’s war in Korea. For the MAGA wing, there is also a lingering resentment of the cameo role that Ukraine played in the Trump impeachment drama.

You can’t have missed the spring in Putin’s step. For a long time, he was too scared to stray beyond Russia’s borders. Quite apart from an international arrest warrant, he had a well-founded fear of assassination. His only foreign ventures were to former Soviet states, and two friendly dictatorships: Iran and China.

But, this week, he visited two neutral dictatorships – the UAE and Saudi Arabia. The footage shows beyond doubt that it was the despot in person, not a body double. What gave him confidence to travel to places that have security links with the West? Is it possible that some tentative entente has been reached? Might the Saudis have been asked to sound him out, discretely and deniably, as a possible prelude to peace talks?

If so, we risk a Suez-level disaster for the Western democracies. Any deal that rewards Russian aggression will signal to the rest of the world that Nato, with all its collective wealth and weaponry, could not succeed in the minimal goal of rescuing a country that its two most powerful members, the US and the UK, had undertaken to protect.

The case for intervention in Ukraine is not that it is a liberal democracy. Sure, it is vastly more liberal than Russia, but it falls well short of our standards. Russophile parties have been banned, and there is a worry that the crackdown might extend to pro-Western opposition politicians, too. This week, I was at a meeting of global Centre-Right parties at which Petro Poroshenko, the former president, was meant to speak. At the last minute, he and two of his MPs were banned from leaving Ukraine – and though Poroshenko patriotically declined to make a fuss, it left me wondering, not for the first time, why Zelensky refuses to draw other parties into a wartime coalition.

Then again, Poland was run by an authoritarian government in 1939. That did not alter the fact that it was attacked without provocation after we had guaranteed its independence – just as we guaranteed Ukraine’s independence in 1994 when it surrendered its nuclear arsenal.

While we are not ourselves at war this time, we are so invested in the Ukrainian cause that a Russian victory – and absorbing conquered territory is a Russian victory, present it how you will – would mean a catastrophic loss of prestige for the West and the ideas associated with it: personal freedom, democracy and human rights.

Conflicts will spread as regimes that never cared for liberal values in the first place realise that there is no longer a policeman on the corner. Venezuela’s outrageous claims against Commonwealth Guyana are just the start of this process.

“The West won the world not by the superiority of its ideas or values or religion… but rather by its superiority in applying organised violence,” wrote Samuel Huntington. “Westerners often forget this fact; non-Westerners never do.”

But this is not yet over. Ukraine has driven Russia out of the western Black Sea, which is open again to international shipping. We should be on our guard against the tendency that George Orwell observed during the Second World War, whereby intellectuals over-interpret each new military development – a tendency, he believed, not shared by ordinary people. Just as there was excessive pessimism immediately after Russia invaded, and excessive euphoria when Kherson was retaken, so we should not infer too much from this setback.

It is still possible to imagine a peace deal that does not overtly reward aggression. Perhaps the eastern oblasts could win autonomy under loose Ukrainian suzerainty; perhaps an internationally supervised referendum might be held in a demilitarised Crimea.

But if Russia ends up annexing land by force, it is not just the West that will lose; it is the entire post-1945 international order.

The world is getting colder. The nights are drawing in.

 

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ENB #163 – Live from COP28 an update with Grace Stanke, and the 22 countries signing a commitment for nuclear energy.

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This is my second podcast with Grace Stanke, Miss America for 2023, and she was in Dubai for COP28. Several other interviews around COP28 are getting teed up, and it should be fun.It was phenomenal also to produce an interview with Grace for Rey Trevino on the Crude Truth.

We got an entirely different feel for COP than what the regular news media puts out with having a conversation with “boots on the ground.” Grace had a great story about the nuclear reactor right outside of Dubai that was finished on time and within budget. That reactor is now supplying 25% of the UAE’s electricity. This is huge. Helping the markets through good regulations and regulatory processes will help the world get to net zero.

Legislation through regulations will not help the energy markets nor help the United States hit any climate goals committed.

Thank you, Grace, for your leadership, nuclear advocacy, and great year as the reigning Miss America. You are always welcome on the Energy News Beat podcast to help share your insights on energy and our next generation of energy leaders.

00:00 – Intro

01:37 – Highlights global commitment to triple nuclear capacity by 2050, stressing reliability, emissions-free nature, and widespread cross-sector support.

03:16 – Tell us a little bit about that new reactor.

04:08 – How do we get the regulators or the people running the regulations and permitting to the United States?

04:37 – Discusses her role at the World Nuclear Expo at Cop 28, noting the enthusiasm of 40-50 nuclear youth advocates.

07:09 – What’s the blue zone versus the red zone in Cop28

10:29 – Tell us what your thoughts for Dubai.

10:50 – Outro

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Russian Natural Gas and Geopolitical Realignment—a reverse domino theory

Energy News Beat

ENB Pub Note: This is one of the Energy News Beat series’s most important articles. I interviewed George McMillan on a 2-hour podcast interview. He is the CEO of McMillan Associates, a geopolitical and analytical energy company with extensive global studies and expertise. He is the CEO of McMillan Associates, a geopolitical and analytical energy company with extensive global studies and expertise. The podcast “ENB #160 What is the United States afraid of? George McMillan, CEO of McMillian Associates, stopped by the Energy News Beat podcast. – UPDATE” seemed like 5 min. It has answered so many “Energy Threads” that it is mind-blowing. Enjoy this first article from George: 

Russian Natural Gas and Geopolitical Realignment—a reverse domino theory

George McMillan, November 27, 2023

With the Cold War in the rearview mirror for over three decades, it turns out that cheap Russian natural gas delivered by pipeline is the biggest threat to the United States’ superpower status.

Natural gas delivered by pipeline is significantly cheaper than any other form of energy, and any industrial power center with natural gas pipelines to Russia will have significantly lower energy costs, boosting the price competitiveness of their machine tool, heavy equipment, automobiles, advanced electronics, consumer products, and agricultural fertilizer products in the global markets.

Those not connected will be less competitive industrially and will experience higher levels of inflation associated with declining living standards.

The Russian Federation has an abundance of clean and inexpensive natural gas ranging from the Caspian Sea region, to the Urals mountains, along the entire Arctic Ocean range, and to the Far East, including Sakhalin Island just 30 miles North of Japan’s Island of Hokkaido. Russia can supply all United States’ allies with natural gas by pipeline much more cheaply than the US can with liquified natural gas (LNG).

The domino theory, originally applied to Marxist communism, is more appropriate for natural gas shipped by pipeline.

Warhawks

The United States and United Kingdom war hawks since the Reagan and Thatcher administrations have been worried about Russia’s ability to deliver cheap natural gas via pipeline to Germany in Western Europe, China, Japan via Sakhalin Island, and even to the entire Korean peninsula via Vladivostok.

The fear is that once one industrial power center Western ally connects to cheap Russian natural gas, then it becomes a race for the other coastal industrial power centers to gain the same competitive advantage in the global markets.

 

The US and UK counter strategy has been based on preventing a) natural gas from reaching an end user among the Western European or the Pacific Rim allies and b) the end user from paying Russia directly in Rubles, thus undermining the petrodollar financial system that supports the United States’ burgeoning $34 trillion of debt.  It does not matter where or how a natural gas pipeline is sabotaged, inside Russia or outside Russia, the motive is always to prevent “a” then “b.” This makes the understanding of the conflict zones all along Eurasia easier to understand—they are not random.

The hypothesis from Halford Mackinder, the father of geopolitical theory at Oxford University at the turn of the 20th Century, was that the more Russia can deliver its abundance of raw materials from the “Eurasian heartland” to the Eurasian “coastal rimland” industrial power centers, the more Russia will become the global political center of gravity. This hypothesis has only become truer with the advancement of railways and pipelines that speed low-cost overland delivery.

Diplomatic, Infrastructure, Military and Economic (DIME) Alliances

The economic diplomatic concern is that since (1) Russia and China have been infrastructurally integrating with the completion and expansion of Power of Siberia 1, with Power of Siberia 2 in the works;  (2) Russia and Germany are becoming increasingly infrastructurally integrated with Nordstream 1 and 2; and (3) if Japan were allowed to complete the Sakhalin to Hokkaido railway tunnel and pipeline project, then South Kora would be sure to follow with a Korean Peninsula pipeline to keep its automobile and consumer products industries competitive globally.

Following suit, India may not be able to connect to Russia via pipeline directly as Turkmenistan, Afghanistan, Pakistan, and India pipeline has been stalled for decades due to the ongoing religious and ethnic rivalries in the region, but the Modi government nevertheless wants to complete the International North-South Trade Corridor (INSTC) project culminating at Chabahar, Iran. The three-fold goal here is: (1) to gain an overland route that is as direct as possible to receive Russian and Iranian oil and liquified natural gas (LNG), (2) avoid rival Chinese and Pakistani territory, and minimize the distance and time that cargo and tanker ships are on the ocean.

In geopolitical petroleum circles, many believe that the concern of cheap Russian natural gas associated with the loss of its allies is the motive behind the US sabotaging the Ural pipeline in 1982, politically sabotaging the notional Black Sea Southstream pipeline from Novorossiysk to Burgas in 2014, and steadfastly opposing Gerhard Schroder’s approval of Nordstream 1 and 2 going under the Baltic Sea that avoided US/UK/NATO controlled Poland, Ukraine, and Georgia.

The idea is that once one ally gains that economic and living standard advantage, then the other allies would be incentivized to follow and the US and UK would become isolated.

Ambassador George Kennan’s five industrial power center [strategy] of the US being allied with Germany in Western Europe and Japan in the Pacific Rim [was] in order to isolate the Soviet Union and China.

It is this Five Power Center strategy (six, with the inclusion of India) of the US and UK that would have been eclipsed had the series of pipeline projects between Russia and Germany, India, China, South Korea and Japan been permitted to continue. The Russian invasion of Ukraine led to the US sanctions on Russia that stopped all of the projects—just in the nick of time.

Part 2: Releasing tomorrow. Please reach out to George on his LinkedIn: https://www.linkedin.com/in/george-mcmillan-5665b015/

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We no longer need the Cop circus – technology and markets are already solving the climate crisis

Energy News Beat

ENB Pug Note: The author from the Telegraph raises some interesting points about the COP Circus. I agree that the baton has been passed to big oil and that money is now available for green energy. The markets and humanity should decide on the best path for the environment. Printing money and using energy that is not based upon actual physics and ecological impacts needs to stop. 

Whether the world cuts carbon emissions fast enough to secure a 1.5-degree planet depends on the arms race for clean-tech dominance between the US and China.

It does not depend significantly on anything done, and even less said, at the Cop28 summit in Dubai, a process that risks becoming a net negative for progress, if it has not already crossed that line as a full army corps of lobbyists converge with 97,000 others at petroleum ground zero.

The annual Cop gathering foments division. Its format pushes an anachronistic showdown between the West and a victim category of “developing countries” that is frozen in time and contains some of the richest and most brazen polluters, or others that still build coal plants and persecute ecologists.

The environmental press will anguish over whether the text progresses from a “phase-down” to a “phase-out” of coal power plants, and whether petrostates lift their veto on such language for oil and gas. Passions will fly over a get-out clause for “abated” fossil fuels, and whether carbon capture really counts.

The language matters, and the precise wording can be mobilised for climate lawfare in civil courts, at least in rule of law states. But technology and geo-economic reality are already moving faster than the Cop curriculum can keep up.

“A global, irreversible, solar tipping point may have passed where solar energy gradually comes to dominate global electricity markets, without any further climate policies,” concluded a recent paper by the World Bank and Europe’s leading universities.

The “technological learning rate” of solar, wind, and now batteries is so relentless that a 24/7 mix is already cheaper than new coal in most of the world, and will become massively cheaper almost everywhere over time.

The report said the priority now is to sort out the details, upgrade grids, and channel the necessary funds to Africa. It is also a ferocious indictment of the “energy modelling community” that failed to see this coming.

China is rolling out 210 gigawatts (GW) of solar this year, not far short of the entire installation worldwide the year before. Carbon Brief says it is expanding its solar panel capacity to 1000GW by 2025, and increasing its battery capacity six fold.

This is not the result of altruism. It is happening because China a) wants a cheap and secure source of home-grown power beyond American naval reach, b) has acquired manufacturing dominance of renewables and wishes to leverage the advantage, and c) aims to dethrone the West’s auto industry.

America is responding with $2 trillion of manufacturing rearmament because it a) cannot let this happen, b) still leads in applied sciences, and can win the fight, and c) recognises that clean tech is the economic prize of our time.

Europe is responding because its industries will be obliterated if it does not. None of this has much to do with the Cop process.

“The transition to clean energy is happening worldwide and it’s unstoppable. It’s not a question of ‘if’, it’s just a matter of ‘how soon’,” said Fatih Birol, head of the International Energy Agency.

The pace depends on whether vested interests succeed in delaying the rollout of technology that already exists, and whether they can head off investment in new technology at the point of critical breakthrough.

Electric vehicles are already there. Decent EVs retail today in the Chinese mass market for $10,000-15,000 without purchase subsidies. Credible analysts in China think EVs will surpass 50pc of sales within two years.

Europe will catch up as cheaper models flood showrooms circa 2025, albeit nearer $20,000-25,000. This is before the arrival of solid-state batteries and other variants that should triple range before the end of the decade, without the need for cobalt.

The US Energy Department is targeting green hydrogen at $1 a kilo by 2030. Anything from $1.50-2 opens the way for a displacement of fossils in dirty hydrogen, and then for fertilisers, steel, shipping, etc, going down the Liebreich “hydrogen ladder”, covering some 20pc of emissions.

Cell-grown chicken and lab-fermented milk is on the market today in the US, the first of a wave of bioidentical meats and dairy likely to undercut Big Meat on cost within five years, disrupting the industrial-scale market for sausages, burgers, nuggets, and so forth, with a fraction of the water needs and CO2 emissions.

This will alleviate the strain on croplands used for animal feed. It may enable some reforestation and surplus biofuel for jet travel.

More exotically, nuclear fusion at competitive cost may not be as far away as people think. The Fusion Industry Association says 65pc of its members think commercial fusion power – at viable cost, and the radioactive waste of a hospital – could be a reality by 2035, and 90pc by 2040. They are eyeing costs of $60-80MWh. That would seal the argument.

The Cop process was necessary to kickstart clean technology and bring it to scale. The Paris Agreement in 2015 sent the message that the game was up for the carbon economy. It was the moment when Big Money grew wary of fossil finance. It defected to the other side, discerning larger fortunes to be made in the new industries.

This pulled forward investment and brought us to where we are today.

The baton has by now passed. With each year the Cop process is more clearly becoming a venue for vested interests – Big Oil, Industrial Meat, Old Auto, you name it – trying to slow down the post-carbon juggernaut.

Sultan Al-Jaber has proved a capable president of Cop28, earning plaudits even from some green activists. He is right that you need “smart decarbonisation” and political “buy-in” from fossil producers and users. What are we going to do about the 2,000 coal-fired plants in Asia built mostly between 2005 and 2018 with a lifespan of 40-45 years that must keep burning to pay off project debt?

But he also presides over Abu Dhabi’s national oil company, which is expanding crude output from three million to five million barrels a day over the next seven years, with emissions to match, and “no credible plan whatsoever to reduce them”, in the words of climateer Al Gore.

Al-Jaber said two weeks ago that there was “no science out there, or no scenario out there, that says that the phaseout of fossil fuel is what’s going to achieve 1.5”.

He is right. We will still need some oil and gas in 2050. The CO2 will be offset by removal technologies, or captured and sequestered.

But Mr Gore is also right that fossil interests are promoting “falsehoods on an industrial scale”, intervening at every level across the world, “with their lobbyists and with their fixers, doing everything they can to slow down progress”, and have “brazenly seized control of the Cop process”.

Whatever language comes out of Cop28, it will not inconvenience coal, gas and oil interests in any serious way.

Like all large synods that grow too big, lose focus and fall prey to carpetbaggers, the Cop process has outlived its original purpose.

It is a jarring mix of climate doomerism and delaying-tactics. It should stick to scientific reports and to helping vulnerable nations at the sharp end of climate change.

Technology and market price signals are already solving the problem without need for degrowth, hairshirts and sacrifice. That is what we should be proclaiming from the rooftops.

 

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The left is silent on the imperialsit war for oil from Venezuela – Why?

Energy News Beat

Patrick Robertson posts on LinkedIn:

While Western peace movements have eyes only for Gaza, their former model socialist republic, Venezuela, is threatening to invade its smaller and less Left-wing neighbour, oil-rich ex-British Guyana.

Deafening silence is the Left’s response to the looming threat over oil swells. Time was it would have had Jeremy Corbyn and his acolytes marching down Whitehall chanting “No war for oil”.

But now as the Maduro regime in Venezuela has staged a referendum to legitimise its claims to the oil-rich region in neighbouring Guyana, warning lights of an impending conflict ought to be flashing among Britain’s peaceniks as much as in the Biden White House.

Even The Guardian has acknowledged that turnout in the referendum was “minimal”. The regime claimed ten million out of 22 million voted, but in a country where queuing for hours for basic supplies is the norm, there was no sign of lines at the polling stations.

Maduro’s economic record makes Communist Cuba seem well run. His oil-rich regime has overseen Weimar-style hyper-inflation and currency collapse, so boosting the turnout by five times may seem a rather modest fraud. Seven million Venezuelans have fled abroad.

The Biden Administration has been courting Maduro by suspending sanctions on his oil production despite his dictatorial policies to replace Iranian oil supplies with Venezuelan ones. But Mauro and the Ayatollahs see Biden as a sucker and proceed in harmony accordingly.

The destabilising impact of any Venezuelan aggression would roll well beyond Guyana. Further waves of migration northwards across Central America and the Caribbean to the USA would follow.

Feckless as Joe Biden’s administration is becoming, it would be mad for the Republicans to abandon the Monroe Doctrine to a dictator who evokes Simon Bolivar’s vision of a united region along the Caribbean from two hundred years ago to justify a plundering raid on his smaller neighbour.

Maduro’s regime survives on drug trafficking to fund its armed loyalists. Like Saddam a generation ago, Maduro now sees seizing oil wells next door as the solution to impending bankruptcy. Putin’s Russia sees more chaos as grist to its geopolitical ambitions.

American oil assets are at stake, but more importantly another pillar of global stability and respect for small nations is wobbling.

It says a lot about how distracted the Biden Administration is at present that it was Brazil’s Left-wing President Lula da Silva who mobilised his armed forces to try to deter Maduro from invading a neighbour while Washington stuck to words, not action.

The Left here turns a blind eye to the reality that it is Venezuela’s Left-wing neighbours who are acting to back up their warnings to Maduro to back off, not their Yankee bugbear.

Check out the live discussion on Monday 12-11 at 8:00 Central on Armondo Cavahana’s LinkedIn.

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EU country still buying Russian gas – media

Energy News Beat

The Netherlands reportedly purchased over 200 million cubic meters of Russian LNG in September, RIA Novosti has reported

The Netherlands continues to import Russian gas despite earlier pledges to stop buying the commodity, the news outlet RIA Novosti reported on Saturday, citing Dutch trade data.

According to the report, in September, the EU country imported some 211.5 million cubic meters of liquefied natural gas (LNG) from Moscow worth €109 million ($117 million). This followed a three-month break in Dutch imports of Russian LNG, which came after the country’s climate and energy minister, Rob Jetten, announced that the government was working to stop importing hydrocarbons from Russia.

In his announcement in April, he pledged that the Netherlands would stop signing new contracts for Russian LNG supplies and terminate pre-existing agreements, which prompted imports to drop sharply in May and stop altogether during the summer months.

While the EU placed numerous sanctions on Russia amid the Ukraine conflict over the past 22 months, Russian gas has so far not been targeted by restrictions. Nonetheless, EU imports of pipeline gas from the sanctioned country have mostly been halted amid the bloc’s general drive to end its reliance on Russian energy. However, the EU continued to buy record volumes of LNG from Moscow this year, with shipments hitting an all-time high of 1.75 million tons in November, according to data by Kpler.


READ MORE:
Cold weather causes surge in EU gas consumption

Meanwhile, according to the latest media reports, the EU is working on legislation allowing member states to end gas imports from Russia unilaterally. According to the document, which has been seen by the Financial Times, the measure would give any member state the power to “partially or, where justified, completely limit” or block Russian and Belarusian companies from buying capacity in European pipelines and LNG terminals.

For more stories on economy & finance visit RT’s business section

 

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Leaders of Venezuela and Guyana to meet amid border dispute

Energy News Beat

Venezuela’s President Nicolas Maduro will meet Guyana President Mohamed Irfaan Ali amid a territorial dispute between the two countries, according to a letter from Saint Vincent and the Grenadines Prime Minister Ralph Gonsalves.

Tensions have been mounting between Venezuela and Guyana in recent weeks due to a long-running border dispute over Esequibo, an area in Guyana where massive discoveries of offshore oil and gas have been made.

The bilateral meeting is set to take place on December 14 in Saint Vincent and the Grenadines where they will be accompanied by Gonsalves.

Venezuela’s government said the meeting “is in order to preserve our aspiration to maintain Latin America and the Caribbean as a zone of peace”.

The Office of the President of Guyana confirmed Ali had agreed to the meeting, but added, “Guyana’s land boundary is not up for discussion.”

The regional blocs of the Community of Latin American and Caribbean States (CELAC) and the Caribbean Community (CARICOM) are mediating to bring the parties together.

Earlier on Saturday, Brazil’s President Luiz Inacio Lula da Silva, who has also been invited to Thursday’s meeting as an observer, spoke to Maduro and called for dialogue, saying it was important to avoid unilateral measures that could escalate the situation.

Venezuela has for decades laid claim to Essequibo, claiming that the Essequibo River to the region’s east forms a natural border and has historically been recognised as such.

The country’s latest efforts to overtake the territory were piqued in 2015 when ExxonMobil announced it had found oil in commercial quantities off the Essequibo coast.

Last weekend, voters in Venezuela also rejected the International Court of Justice’s (ICJ) jurisdiction over the area, backing the creation of a new state.

Maduro also proposed a government meeting that a bill be sent to the National Assembly for the creation of a “Guyana Esequiba” province.

However, Guyana, of which Essequibo makes up more than two-thirds and hosts 125,000 of its 800,000 citizens, has administered the territory since the frontiers were determined by an arbitration panel in 1899.

 The planned meeting comes after Venezuela threatened to annex the oil-rich territory of Esequibo currently in Guyana. 

     

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