Tom Shepstone, Energy Security and Freedom joins The Crude Life’s founder Jason Spiess for an update on the New York’s attempt to fine oil and gas companies.
Last week, New York enacted a law that requires large energy companies to pay $75 billion into a “Climate Superfund.” Although the statute’s language targets fossil fuel producers and oil refiners, it will remain unclear until regulations are issued as to whether other participants in the energy industry will be covered by the law. New York is the second state to have enacted Climate Superfund legislation, and numerous other states have proposed similar bills.
“This is a political stunt,” Shepstone said. “But I think at the end of the day, the NRDC gang, as I call them, I think put a lot of pressure on her and she (Gov. Kathy Hochul) caved.”
The interview shifted to Artificial Intelligence and Tech Data Centers that are being approved, publicly funded and rushed into operation. Shepstone comments on
AI and data centers have become massive energy consumers due to the computational power required for artificial intelligence operations. These centers demand significant electricity to maintain servers and cooling systems, which has led to increasing interest in alternative energy sources such as nuclear power, natural gas, and renewables. Companies are exploring nuclear energy due to its potential for providing stable, low-carbon power for energy-intensive AI operations, while natural gas offers a more readily available and cleaner alternative to coal.
Despite these efforts, AI data centers are causing substantial issues for power grids and local communities. The high and often unpredictable energy demands of these centers can distort electricity supply quality, leading to grid instability and power quality issues in surrounding areas.
“I think there's an awful lot of corporatism in America and around the world these days,” Shepstone said. “And I think that's what you're seeing with all this stuff is you're seeing a lot of people who start out with a lot of wealth and they're the elites of the world, the globalists, if you will, whatever term you want to use and I see a lot of special deals being made through government and between companies that are kind of freezing out the ordinary player.”
These challenges highlight the strain on existing baseload power infrastructure, as grid operators struggle to balance supply with fluctuating demands. Communities near these centers may also face higher electricity costs and environmental concerns due to increased reliance on fossil fuels or resource-intensive setups.
The interplay between digitalization and decarbonization will require innovative solutions, as the rise of AI underscores the need for a sustainable and resilient energy strategy.
"I think you're going to see that with these AI centers, they're going to be so powerful and that's why the effort in Pennsylvania to get a special deal at the Talon Energy Facility in Berwick," Shepstone said. "It has not happened, at least not yet, I think because everybody surmised that the rate problem was going to be an imposition on ordinary ratepayers."
Shepstone next comments on a couple of President Donald Trump’s cabinet picks. First he comments about Interior Secretary nominee and former Governor of North Dakota Doug Burgum. Shepstone said as of right now he’s a fan of Burgum and his stance on energy, however their is one sticking point with this nominee.
“One of my best friends has spoken to him frequently about energy issues and had several lengthy conversations with him,” Burgum said. “And he tells me that he is a good guy and he's looking forward to what he's going to do, but he's a little hesitant about one thing, and that is that Bergum is a fan of carbon sequestration.”
Carbon Sequestration refers to the process of capturing and storing atmospheric carbon dioxide (CO2) to mitigate climate change. It can be done through natural methods like forests or more technical approaches like underground storage in geological formations. This process helps reduce the amount of CO2 in the atmosphere, combating global warming.
Tax Subsidy Structure for carbon sequestration typically involves government incentives such as tax credits for businesses and projects that implement carbon capture and storage technologies. Billions, if not trillions of public dollars are being proposed for these projects.
Burgum has been a strong advocate for publicly funded carbon capture and sequestration. He has pushed for policies that promote the state’s adoption of these technologies as long as they are subsidized with tax dollars and AI Data Centers are a top priority. Burgum also has a well documented history of growing government and directing public dollars to corporations, family members and political interests.
Shepstone next comments on Liberty Energy’s Chris Wright, Trump’s Energy Secretary nominee.
Chris Wright is the nominee for U.S. Energy Secretary under President Donald Trump. He has emphasized his vision for "energy abundance" through innovation and the development of new technologies.
“Chris Wright, fantastic appointment,” Shepstone said. “Who could be better than Chris Wright?”
Wright has highlighted the importance of national labs in advancing energy technology. His background includes a commitment to a free market approach to energy policy, focusing on growth, deregulation, and the continued expansion of energy sources.
Shepstone also reminds the audience of Wright’s North Face challenge.
“I recall a few years ago how he went after North Face,” Shepstone said. “That was absolutely fantastic. He’s a brilliant man.”
Wright’s confirmation hearing also covered his goals to improve the country's energy independence, enhance energy efficiency, and promote innovation to achieve affordable energy solutions for Americans.
He has been rated highly by organizations like the National Rifle Association (NRA), reflecting his alignment with conservative principles, particularly in terms of market regulation and energy policy.
Shepstone also threw out a name to keep an eye on.
“There's another guy who is not being appointed, but a very interesting guy, Nick Deiuliis, who is the CEO of CNX,” Shepstone said.
Nick Deiuliis is the President and CEO of CNX Resources, a major natural gas exploration and production company. With a background in chemical engineering and law, Deiuliis has built a career spanning over 30 years in the energy sector. He is a strong advocate for the "natural gas economy," often emphasizing the importance of natural gas in America’s energy future. Under his leadership, CNX Resources has focused on responsible energy development and community engagement
Deiuliis authored the book Precipice: The Left's Campaign to Destroy America, where he delves into the political, social, and economic challenges facing the U.S. He argues that certain ideologies and political movements are undermining the country’s foundational principles. The book critiques contemporary American society, offering an urgent call to preserve freedom and capitalist values.
“He calls it radical transparency, where he kind of lays everything out, no holds barred in terms of the whole fracking thing and all that,” Shepstone said. “And I think that's a smart way to go rather than trying to polish things with PR - Radical transparency is a good concept - and I would like that involved in government at some point too. But again, I don't want to see him leave CNX either.”
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