Daily Standup Top Stories
Trump Truths a Strategic Shift: China Can Buy Iranian Oil
In a surprising pivot, President Donald Trump announced on Truth Social that “China can now continue to purchase Oil from Iran. Hopefully, they will be purchasing plenty from the U.S., also.” This statement, made on […]
China Planned for the Middle East Crisis and Has Oil Stored
China, the world’s largest crude oil importer and a powerhouse in global energy consumption, has long prioritized energy security as a cornerstone of its economic and geopolitical strategy. With escalating tensions in the Middle East—a […]
Texas Legislative session came close to solving the Grid issues
ENB Pub Note: This is another article from Doug Sheridan on LinkedIn, and he raises some excellent points. The Texas legislature did address some grid issues for Texas data centers and would likely want the […]
Highlights of the Podcast
00:01 – Intro
00:54 – Trump Truths a Strategic Shift: China Can Buy Iranian Oil
03:08 – China Planned for the Middle East Crisis and Has Oil Stored
06:05 – Texas Legislative session came close to solving the Grid issues
10:01 – Markets Update
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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] By the rumor, sell the news. Next, on the Energy Newsbeat Daily Standup. [00:00:04][4.0]
Michael Tanner: [00:00:12] What’s going on everybody? Welcome into the Wednesday, June 25th, 2025 edition of the daily energy news beat standup here are today’s top headlines. First up Trump’s truth strategic shift. Can China buy Iranian oil? Very interesting headline here. Did not have that on our bingo card. Next up China plan for the middle East crisis and has oil stored. They’re smarter than we tend to give them credit for. And finally, in the new segment, Texas legislative session came close to solving the great issues. Stuart, then toss it to me. I will quickly cover what happened in the oil and gas markets. As always, I am Michael Tanner, joined by Stuart Turley. Where do you want to begin? [00:00:54][41.8]
Stuart Turley: [00:00:54] Hey, Michael, let’s start with President Trump. Truth strategic shift. China can buy Iranian oil. I did not have this on my bingo card. This is amazing. President Trump announced on truth social, China can quote now buy and continue to purchase oil from Iran. Hopefully they’ll be purchasing plenty from the U S also. Holy cow, Batman. This statement made on June 24th. Uh, marks a significant departure from the Trump administration, maximum pressure campaign reinstated in February. Michael, this is huge. And in this article, I added how much do they actually buy? And why is this significant? Let’s look at this list. I ran 1.4 million barrels per day, Russia, 2.1 million barrels per day. But notice. 1.3 million of the russian barrel is seaborne through the dark fleet and 0.8 million barrels is pipeline saudi arabia 1.7 million iraq 1.1 million uae 1. 7 angola oman and some others but that is a significant uh holy cow batman pivot in this Why and what does this mean to investors? I think that this is we saw last week or in the last several weeks OPEC really not able to bring extra supply to the market when they said, okay, guys, go forth and drill more. They didn’t. So this is huge. Maybe this is going to be a shift to get rid of the dark fleet. Great news for Iran getting the war over and for China. We may have some deals on the table. [00:02:42][107.5]
Michael Tanner: [00:02:42] Yeah, I think Trump is going back to the art of the deal. I think he understands the motive behind a lot of this stuff. I think you rightly understood that I ran while they might threaten to close the Strait of Hormuz will actually not do it for this specific reason right here. And I think this was probably part of the back channeling negotiations that went down before all this happened. So I completely agree with you, Stu. Let’s stick with China though. They’ve been storing up oil. It looks like. [00:03:11][28.3]
Stuart Turley: [00:03:11] This, as I’ve been doing study and around the world, this story, China plan for the middle East crisis has stored oil. This to me was absolutely mind boggling in their energy mix. It’s still the backbone coal 50 to 60, 55 to 60%. Oil is about 20% to the energy mix with 74%. Consumption met through imports. That’s a lot of oil that they import. Natural gas makes up 9% of the, uh, that is coming from LNG. But anyway, let’s get to the storage buffer here. China invested heavily in strategic commercial oils, oil, not oral storage. That’s that’d be a podcast host at that point. Oil storage to mitigate risk supplies is March 31st, 2025. Their SPR is 401 million barrels above ground with an additional 130 million underground. They evidently don’t have Biden working for the CCP because he would have sold it off to get to a midterm. The commercial stocks of 668 million barrels above ground and total 1.18 to 1.4 billion barrels with 56% above. That’s a lot of oil. And how long can it last got it calculated out here in there basically about four to five months that’s not bad you sit back and look at that go holy smokes you can call china a lot of bad things but they’ve planned for energy security [00:04:50][99.0]
Michael Tanner: [00:04:51] Well, they think in a hundred year cycles. And so I think they’re accurately seeing that we need to make sure we have large storages for whatever comes. Is this a, you know, I don’t know if this is, this is probably not a signal that they’re going to invade anytime soon. It might be, it’s eventually probably a plan for that. If they get cut off planning for things like this, any sort of tensions break out in the middle East. So I completely agree with you. I mean, you, you talk about their You know, they’re they’re basically the 4.4 to 5.8 million barrels per day. Like you said, that’s that, you know, 203 to 206 days. You know they also have a bunch of alternative supplies. You know. They they get a bunch from Russia. They also have some domestic production. That’s the thing you have to know. China does have domestic production, they are not like Japan where they have nothing and they’re fully imported. They can create domestic production And I wouldn’t necessarily be surprised to see if they go all in on that. [00:05:49][57.6]
Stuart Turley: [00:05:49] No, and the Siberia 2 pipeline has been negotiated. They’re in the final stages of approval, and that is going to open up a whole new line of natural gas for China coming in. Whew. Let’s go to this last one. Michael, Texas legislative session came to a close solving the grid issues. Not so much, it came close. Bitcoin miners are looking for stranded gas in their own micro grids. This was really pretty funny, Michael. First, the legislators simply don’t believe there’s a risk in continuing the years long transformation of the state’s grid from driven from affordable, re not liable 24 by seven capable generation to one dominated by subsidized part time renewables. They did do a good job, but Michael in the SB six is the new law and signed in this legislative will do among other things, force deep pocketed data centers and other large loads on ERCOT to underwrite the generation grid needs. The bill effectively allows ERCot to drop large loads defined as 75 megawatts or more should conditions on the system get too tight. If you’re a Bitcoin miner or a data center, this should send a gigantic warning to you. If you are a big business, you better have backup generators. You have your own supply of natural gas. [00:07:20][91.0]
Michael Tanner: [00:07:21] No, absolutely. You better make sure you have your own backup generation. I love this that they got close. They didn’t quite finish it off. I think again, as you mentioned, they’re, they’re waiting for some stuff to come through on the U S Congress standpoint. But they’re the Texas legislative sessions are a little weird. They’re only in, they are only in for about six months out of the year. They also don’t get paid. So at least there’s, there’s [00:07:44][22.9]
Stuart Turley: [00:07:44] It’s every two year, you know, thing. [00:07:46][2.1]
Michael Tanner: [00:07:46] Yeah, exactly. So, you know, it makes it real easy to, uh, to make this happen. So I, again, I, we talked about this on the show last week. I think this is a great thing for SB six to happen. And I think you said the impact of what goes on here in Texas is going to be great. You’re going to see, as you mentioned in your article, I think you’re actually going to. Data centers, which are already spinning up like crazy. And you’re going need that if all of a sudden data centers are going to start flocking here, you’re. Going to need that. [00:08:15][29.0]
Stuart Turley: [00:08:16] Hey, um, I’m interviewing, uh, Mark Lancaster tomorrow, uh Thursday, and then we’ll have that ready for next week, but Mark Lancastor is got a very good idea and pulse on Bitcoin mining, stranded gas and the Permian and how to source data center equivalent on cheap, cheap power, pretty cool stuff. [00:08:37][21.6]
Michael Tanner: [00:08:38] No, absolutely, absolutely. So why? Well, let’s go ahead and jump over and quickly touch on oil and gas finance guys before we do that. Let’s quickly pay the bills as always. Thank you for checking us out. Energy newsbeat.com. Check out the links in the description below. Um, all timestamps, um, all of our great stuff. Check that out. Check us out on sub stack, the energy newsbeat.substack.com, the best place for articles and are, and for posts you can not get anywhere else. Stu does a great job of writing really custom stuff there and it’s a great way to get much more of our analysis there. And that’s again, TheEnergyNews.substack.com. Feel free to sign up for a subscription, help support the show. Thank you to friends of the show, Reese Energy Consulting for making this show possible. It’s a, great, we love them. If you’re in the midstream space or in the upstream space and need midstream help. I mean, guys, they work with two guys in a garage all the way up to the largest publicly-traded company. So they have a solution that can help you at every step of the way. Reeseenergyconsulting.com. And finally, guys if you’re considering adding oil and gas to your portfolio, go to investinoil.energynewsbeat.com You can fill out our portfolio survey and we will get you information on what investing in oil and gas looks like. That’s investin oil.energy news beat. [00:10:00][82.4]
Michael Tanner: [00:10:01] Let’s look at top line headlines to Nasdaq and S&P 500 both up about 1.2 and 1.6 percentage points respectively. Two in 10 year yields dropped by about 1 point 3 and 1 point 06 percent respectively. Dollar index down about a half a percentage point. Bitcoin back over 100,000, 105, 500. Crude oil took an absolute plunge from a WTI perspective. Down 5.3 percentage points all the way to 64.72 Brent oil down basically the same down to 67.59 natural gas down 4.3% points down to $3.57 XOP which is our EMP securities contract is down about a full percentage point to 128.09 I mean Stu this really is by the rumor sell the news I mean there was this anticipation that we were about to be in war with Iran this idea that if we struck Iran we are going to go to war, you know, I might have fallen for it a little bit, but on the other hand what what we’re seeing with this drop in oil is a reversion back to the fundamentals. We are still in an oversupplied market. You cannot, that’s just what the numbers say, you don’t have to convince, there’s no need to convince you one way or the other. We’re in an over-supplied market, so when supply outstrips demand, prices fall. Now, You have to then start from the fundamentals. And layer in the geopolitical aspect of it. So obviously with the geopolital tensions, it can get super crazy right there. So I think what we’re seeing is the reversion back to the mean. We, you know, obviously the ceasefire that happened between Israel and Iran, it could be on shaky ground. That’s what we’ve seen out of here. I mean, both were both, both apparently violated it just hours after it was signed. So that’s pretty unbelievable. But I mean the oil chart looks crazy. Obviously, the Strait of Hormuz did not do that. Analysts are forecasting about an 800 million barrel draw from the EIA’s Strategic Petroleum Reserves, which could be interesting. You’ll see that here at about 10 AM as you record this. Other than that, too, everything’s all quiet. It’s a lot of oil price stuff that’s going on on everybody’s news desk. [00:12:15][133.5]
Stuart Turley: [00:12:15] Oh, it, it is. And I’ll tell you what, I want to give Nathan hammer a shout out. We appreciate the new song that he just did for it is a cool cat song. Once we got half of it, I was, I was cracking up. Isn’t that great? Yeah. I, we have to, uh, we’ve got, we got the copyright laws. He just sent it to me so we could use it on the show. [00:12:36][20.1]
Michael Tanner: [00:12:36] So we’ll play it at some point. We absolutely love it. We appreciate everybody who reaches out and no, it’s great. So we’re with that guys. We’re going to let you get out of here, get back to work, start your day. We. Appreciate you guys checking us out here on the world’s greatest daily show. Energy newsbeat for Stuart Turley I’m Michael Tanner. We’ll see you tomorrow, folks. [00:12:36][0.0][740.9]
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