Episode Transcript
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Speaker 1 (00:00):
Welcome to another edition of Charged Conversations, where this week
we will be talking about global insights from President Trump's
Middle Eastern energy policy, as well as as unpacking the
Iberian energy crisis that recently unfolded. I'm your host to
Brigham Accown. I appreciate you joining me today. So where
(00:28):
to start? There's so much that's going on in the world.
President Trump's current Middle Eastern tour has captured global attention,
as it usually does. His announcement signals a major, significant
pivot from previous US administrations. His message has been pretty clear.
Strong American leadership will underpin stability, enhance energy security, and
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de ter regional threats, most especially from Iran. Here's President Trump,
in his own words, how commitment is strong and our
message is clear. We stand united with our partners to
promote peace, stability, and economic prosperity through the Middle East.
His diplomatic approach emphasizes bilateral partnerships and direct negotiations, with
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just today meeting with the new leader of Syria dropping
sanctions against that country. One of the core pillars of
President Trump's Middle East agenda is enhancing energy security. Recently,
he announced several landmark agreements aimed at stabilizing global energy
markets and securing energy flows. They're vital to global economies.
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The idea behind his recent tour is to obtain agreements
with key Middle Eastern allies aimed at increasing oil production,
increasing the stability of oil production, streamlining American lergy exports,
and we're protecting critical infrastructure from geopolitical threats. By emphasizing
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energy cooperation with major oil producers such as Saudi Arabia
and the United Arab Emirates, President Trump is seeking to
reduce global energy price volatility, mitigating economic disruptions which could
significantly impact Western and global markets. So while the US
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is more energy independent than in decades past, we still
rely on some oil imports and the global economy and
pricing of oil is still a fungible commodity where disruption
around the world can spike prices, at least temporarily. Central
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to Trump's strategy is a robust stance against Iran. His
administration continues reinforcing alliances with key they traditional Arab allies
aimed at isolating Iran diplomatically and economically. Recently, his administration
has re announced hope that a nuclear agreement can be
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reached with Iran, yet underpinning the lack of Iran's stability
and reliability at the negotiating table. Key to this is
the Trump administration's policy of placing maximum pressure on Iran
as that rogue state continues to reinforce terrorism and support
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terrorism through allies such as the Huthis, has Belah and
others in the region. Recent announcements of increased military and
intelligence cooperation with the Gulf States, when combined with heightened
economic sanctions against Tehran, underscore this commitment to limiting Iranian
expansion and influence. While these strategies promise enhancedability and security,
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have suggested that while Trump's aggressive stance could pressure around
back to the negotiating table, it could also risk further escalation,
potentially destabilizing already volatile regions like Iraq and Syrium. We've
seen iron make inroads in Iraq and try to recapture Syrium,
and hence the United States is pushing hard to bring
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Syria into the US orbit. Also, the recent attacks and
Iran directly firing missiles toward Israel have increased tensions, and
the concern there, of course, is that since Iran was
not able to effectively damage Israel despite firing directly, an indirectory,
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and indirectly thousands of missiles toward Israel. The pursuit of
nuclear weapons and nuclear fuel not for peaceful purposes, but
for weapons maybe their only hope at defense. Again a
strong axis of allies, including the Golf States, the United States,
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and Israel. Nuclear energy is in fact used in a
peaceful commercial manner in the Golf States, but that fuel
is not enriched in the Golf but is rather controlled
by and given out for commercial reactors at a very
low enrichment rate. It's difficult to believe that Iran seeks
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to pursue a peaceful commercial application of nuclear power when
it has been hell bent on increasing and enriching nuclear
fuel far beyond anything that is needed for commercial applications.
So is Trump's Middle East strategy unfolds it success hinges
upon sustained diplomatic engagements, clarity of American commitments, and effective
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conflict management. We'll see how well this works out, but
its current visit in recent announcements could significantly redefined America's
Middle Eastern policy, impacting regional dynamics profoundly and if successful,
help drive energy prices to affordable levels not seen in years.
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That's my thoughts on Trump's Middle Eastern strategy. But while
staying abroad in this podcast, let's shift to unpacking the
Iberian energy crisis. On April the twenty eighth, twenty twenty five,
a massive power outage swept across Spain and Portugal, leaving
most of those countries without electricity. The blackout disrupted transportation,
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halded industrial operations, affected hospitals, communication network. A Spaniard told
me earlier this week that everything stopped. We were fine.
It was sunny outside, a normal day, just afternoon, and
then all of a sudden, everything just started shutting down.
Nothing was working. He smiled and said, I even tried
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to call my house, but even though I have a
traditional landline, I don't even know what the phone number is.
Train car stopped, escalator stopped, people were trapped in buildings.
Nothing seemed to work well. So what happened and what
can we learn from it? And is it a cautionary
tale of what we need to make sure that we avoid. Right,
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All of that is true. Actually, investigators revealed that the
crisis originated from a sudden loss of power in just
five seconds. The epicenter was identified at the Granada's substation
and a cascading ferry led to widespread disconnections across the grid.
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Like any grid operator, and in America we have multiple
grid operators, but in Spain they have one. And for
the illustrations of this, I think keep it simpler. You
have to take a look and say, okay, guys, how
much power are we going to need to do across
the country, and we need to add a little lexture
as a fudge factor. Right. Well, traditionally that's not very
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hard because fossil fuel producers of electricity pretty reliable. Sure,
a plant may go down here and there, but you
have backups. You also have additional plants that you pay
to be an idol. I'm going to pay you to
be on call. I may not call you, so I'm
gonna pay you a little bit, not your full rate,
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but you're on standby. You're on reserve. If I need you,
I'm going to place the phone call and I need
you to crank that up. We do that in many industries.
Police fire pilots were on standby, doctors waiting for the call.
Got it, We know how to do this, okay, So
we should be good. Well, Spain wasn't good because in
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the middle of the day, while the sun was shining,
cloud cover emerged and hey, the sun stopped shining. B
there was a tech nicole issue at one of the substations,
and lo and behold the grid became unstable. For you
electrical fans and nerds out there, we operate at one
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hundred and ten volts or I guess two twenty if
you want to use the main lines and at sixty hertz, Well,
Spain's on fifty hertz, and Hurtz is the flow of energy,
the amplitude of energy, and you have to remain in
a fairly tight corridor if we're to stay stable. Well,
instead of fifty HRTs, it started dropping forty nine, forty eight,
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forty seven, triggering safeguards unstable energy. And I'm sure people
out there listening know much more about this than me,
And I'm sorry for butchering a layman's view of how
electricity works. Can damage equipment, can damage systems. So as
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a precaution, when the grid becomes unstable, it starts to
shut down. Why did the hurtz frequency drop? It dropped
because of a loss of significant amounts of renewable energy,
and the plants on standby called into action were not
able to make up that difference. Spain lost fifteen gigawatts
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of power, that's sixty percent of their total power output
in just five seconds. Spain has been a leader in
renewable energy, with over fifty percent of its power electric
power coming from sources like wind and solar. However, this
blackout has sparked a debate about the reliability of renewable energy,
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something we've been talking about a long time. Renewables great,
but don't turn your back. Critics argue that the intermittent
value of renewables contributed to the grid's instability. Well, supporters
counter that that issue lies not with the renewables themselves,
but really the infrastructure supporting them. They point to a
need to better man it grid management and storage solutions. Well,
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news flash, guys, you can't really store electricity. We're trying
with batteries, but those batteries, although massive, will only last
a flash of a second. It's not like water hydro
electric power, where you can store available energy ready to go.
Electricity is a user lose solution. It's a user lose proposition.
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So Portugal by the way, heavily reliant on electricity imports
from Spain, faced its own challenges during the blackout, The
country suspended power imports to protect its grid, leading to
a surge in electricity prices nearly five times higher than
Spain at one point, and so right now all the
Portuguese officials are reconsidering the nation's own energy strategy, emphasizing
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the need for increased domestic production. Once the grid goes down,
by the way, it's not a flip of a switch
to turn it back on. It has to be slow,
stabilized and brought up one section after another. Thanks to
France eighty percent nuclear power for their electricity, France was
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able to reverse importing electricity from Spain and provide power
back to Spain to begin to bring the grid up.
They're also investigating, that is Spain's National Cybersecurity Institute, on
whether vulnerabilities to the grid's digital infrastructure played a role.
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I'm guessing it didn't, but we'll wait and see. The
bottom line is the Iberian blackout served as a stark
reminder of the complexities involved in transitioning to renewable energy,
highlighting the need for robust infrastructure, effective grid management, and
by the way, a reliable I keep saying this right, affordable,
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accessible mix of energy resources. As countries continue their pushed
towards sustainable energy, balancing these goals with pragmatism and realism
will be crucial. You've been listening to Charge conversations as
a Joe Strector production. I'm your host, Briggan McCown, and
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we'll see you next time.