Joe Raia, Chief Commercial Officer at Abaxx Exchange, had a fun interview as he stopped by to give us an update. As a commercial tanker captain who moved into commodities trading, he has the knowledge and background to help guide the US Markets.

Connect with Joe on his LinkedIn here: https://www.linkedin.com/in/joe-raia-4982a417/

Follow Joe on X here: https://x.com/JoeRaia5

Check out Abaxx Exchange information here: https://abaxx.exchange/

The core focus is on ABEX's innovative physically deliverable LNG futures contracts. Joe Rea explains how these contracts are unique because they price actual waterborne LNG molecules rather than using proxy benchmarks like Henry Hub or Brent crude oil. The contracts cover three key regions: Gulf of Mexico (FOB), DES North Pacific Asia, and Northwest Europe. This addresses a major gap in the market where there was no transparent, regulated pricing instrument for LNG.

A significant discussion centers on why traditional pricing proxies fail for LNG. Henry Hub has remained at $3 for 15 years while waterborne LNG ranges from $11-15, and Brent crude oil has no correlation to delivered LNG in Asia. ABEX's contracts provide proper pricing correlation, which is critical for midstream suppliers to get fair value for their molecules.

The conversation covers Europe's energy crisis following Russia's invasion of Ukraine, the shift from long-term contracts (40-50% of the market) to spot and shorter-term contracts, and the EU's struggle to refill natural gas reserves to 85-90% capacity. There's also discussion of Russia's new icebreaker LNG carriers and potential sanctions implications.

Topics include the U.S. becoming the world's largest LNG producer, with 200 MTPA coming online this year. There's discussion of floating LNG terminals (FSRUs) as faster alternatives to building permanent facilities, and potential expansion in the Middle East with pipelines connecting to floating LNG infrastructure.

Abaxx has expanded beyond energy into metals, launching gold and silver futures contracts with physical delivery capabilities in Singapore vaults. The silver contract has been particularly successful, and these contracts address logistical issues that previously plagued gold trading between London and New York.

A major theme is energy security, including discussions of the Jones Act, U.S. tanker capacity, and the importance of American-flagged vessels. The conversation highlights how a 60-day Jones Act waiver resulted in more U.S. energy exports to Puerto Rico in 2 months than in the previous 20 years, and the need to rebuild U.S. shipbuilding capacity.

Discussion of Middle East pipeline infrastructure (Saudi Arabia's East-West pipeline, UAE expansion, Kuwait's plans), Iran's territorial claims, and how geopolitical tensions affect energy markets and shipping routes through critical chokepoints like the Panama Canal and Strait of Hormuz.

Abaxx's integration with major pricing platforms like Refinitiv, Bloomberg, and TradingView to make pricing data accessible globally. The conversation emphasizes the importance of having standardized, transparent pricing that can be referenced in trading agreements.

This episode essentially showcases how ABEX is revolutionizing commodity trading by creating transparent, physically backed futures markets that better serve the global energy and metals industries.

Thank you, Joe, for your service in the United States Merchant Fleet as a Captain and for your continued service in helping balance the markets.

Check out the Energy News Beat SubStack https://theenergynewsbeat.substack.com/

A shout-out to Steve Reese and the Reese Energy Consulting group for sponsoring the Podcast https://reeseenergyconsulting.com/.

Data2 if you have any business systems, can you trust A? Well, they have the patent on validation. . https://data2.zoholandingpage.com/energy

And we have WellDatabase rolling in as a new sponsor. https://welldatabase.com/

Rey Trevino, Pecos Operating Company, and Podcast host for the Crude Truth stopped by the Energy News Beat Podcast. We had a blast filming at the Petroleum Club in Downtown Fort Worth. Hat tip to all of the great people at the Petroleum Club, making it a great place to have business meetings.

Follow Rey on his LinkedIn: https://www.linkedin.com/in/reytrevinoiii/

Also, Pecos Operating Website: https://pecosoperating.com/

1. Strait of Hormuz & Global Oil Supply

The hosts extensively discuss the critical importance of the Strait of Hormuz, through which 20% of the world's oil passes. They explore the geopolitical tensions affecting oil shipments, insurance challenges, and the impact on global energy markets. The conversation touches on Iran's role, potential nuclear concerns, and how these factors are keeping the strait effectively closed despite not being physically blocked.

2. Paper vs. Physical Oil Prices

A significant focus is placed on the divergence between paper oil prices (set by Wall Street traders based on market sentiment) and physical oil prices (actual tanker sales to refineries). The hosts note a $25-50 per barrel gap, with physical prices significantly higher—indicating potential market instability and currency devaluation concerns.

3. California's Energy Crisis & Net Zero Policies

The podcast criticizes California's aggressive net-zero policies, which are driving energy costs to unsustainable levels. They highlight how California has become an "energy island" with sky-high electricity and fuel prices, yet continues doubling down on restrictive policies. The hosts contrast this with Texas's regulatory environment and economic success.

4. Texas vs. California: Regulatory & Economic Comparison

A key theme is the stark difference between the two states—Texas has a $24 billion surplus due to oil and gas production, while California faces a $24 billion deficit due to regulatory burdens. This $50 billion swing illustrates the economic impact of energy policy.

5. U.S. Oil Production & Refining Capacity

The hosts discuss America's leading position as the world's largest oil producer (~14 million barrels/day), but highlight a critical gap: the U.S. lacks sufficient refining capacity. They mention a new refinery in Brownsville, Texas that will process 250,000 barrels/day—still less than 5% of total U.S. production.

6. Maritime Industry & Icebreaker Ships

Discussion of revitalizing the U.S. maritime industry through the Shipping Act, including a multi-billion dollar contract to build U.S. Coast Guard icebreakers in Galveston—important for Arctic oil exploration and national security.

7. Dark Fleet & Sanctions Evasion

The hosts detail the "dark fleet" of ~1,583 tankers (750 Russian, 320 Iranian) used to circumvent sanctions, with ships turning off transponders to avoid detection. This represents a significant challenge to global energy security and sanctions enforcement.

8. Insurance & Lloyd's of London

Questions are raised about Lloyd's of London's role in restricting tanker movement through the Strait of Hormuz, with speculation about potential coordination with Iran. The hosts contrast this with alternative insurance options like Chubb.

9. Oil & Gas Investment & Tax Incentives

The importance of active tax deductions for oil and gas exploration is emphasized, noting that 50% of U.S. oil production comes from privately held companies—a unique advantage that no other country offers.

10. Future Oil Price Predictions

The hosts predict oil prices will remain elevated (around $60-120/barrel) for at least 90 days, with potential short-term spikes if the Strait of Hormuz situation escalates, driven by ongoing geopolitical tensions and the need for capital investment in declining oil fields.

Check out the Energy News Beat SubStack https://theenergynewsbeat.substack.com/

A shout-out to Steve Reese and the Reese Energy Consulting group for sponsoring the Podcast https://reeseenergyconsulting.com/.

Data2 if you have any business systems, can you trust A? Well, they have the patent on validation. . https://data2.zoholandingpage.com/energy

And we have WellDatabase rolling in as a new sponsor. https://welldatabase.com/

This was another great discussion with Doomberg, and we had over 100k listens and views, plus even more impact from social media during his last visit. This discussion included several key quotes, and I have about 10 of them listed below the video.

Make no mistake, the global energy, oil, and gas markets have changed permanently.

The hosts explore Iran’s potential permanent control over the Strait of Hormuz and what this means for global energy markets. The key insight is that while many assume this would drive oil prices higher, the real issue is about sanctions and U.S. dollar hegemony—Iran would need sanctions lifted to collect tolls, which threatens the dollar’s position in the global financial system. Long-term, alternative pipelines and infrastructure will mitigate any supply disruptions.

A major focus is on how the Western Hemisphere (particularly the U.S. and Canada) is becoming an energy powerhouse through:

• Natural gas production and LNG exports (growing from near-zero to ~30 BCF/day by decade’s end)
• Oil development in Argentina (Vaca Marta), Guyana, Venezuela, and Brazil
• Pipeline infrastructure like Mountain Valley Pipeline
• The concept of “energy security starts at home” and exporting energy as a display of dominance

While Qatar supplies 20% of global LNG, the real story is helium—Qatar controls about a third of the global helium market. Helium is critical for semiconductors and MRIs, and there’s no easy replacement. Recent attacks have disrupted Qatar’s production.

The hosts discuss:

• The SpaceX IPO as a potential “top of the Ponzi cycle” with a $1.75 trillion valuation
• How AI is simultaneously a transformative technology AND a massive bubble (like railroads and the internet before it)
• The importance of AI validation and verification—AI without accountability wastes money
• How companies must be built with AI at their core to survive; large legacy companies may struggle to adapt

Practical discussion on:

• How AI can eliminate inefficiencies (e.g., reducing invoice processing from 2 months to 2 minutes)
• The need for human oversight and “AI-aware” workers vs. “AI-ignorant” ones
• Authentic human content creation remaining valuable in an AI-saturated world
• How small, lean businesses with owner mentality adapt faster than bloated corporations

The hosts predict a shift toward new trading blocks: the U.S., India, Russia, Saudi Arabia, UAE, China, and Japan forming alternative economic structures, with the EU and UK potentially falling behind.

Check out the Energy News Beat SubStack https://theenergynewsbeat.substack.com/

A shout-out to Steve Reese and the Reese Energy Consulting group for sponsoring the Podcast https://reeseenergyconsulting.com/.

Data2 if you have any business systems, can you trust A? Well, they have the patent on validation. . https://data2.zoholandingpage.com/energy

And we have WellDatabase rolling in as a new sponsor. https://welldatabase.com/

Kim Farrington, a candidate for the U.S. Senate in Virginia, stopped by the EnergyNews Beat Podcast to discuss her campaign strategy of listening to Virginia voters and addressing their concerns.

Wow, I had a lot of fun visiting with Kim, and she hit all of the right marks on the Podcast. She supports the 2nd Amendment and America First, and has put about 49,000 miles on her car, driving around Virginia to listen and gather feedback on policies, waste, and energy.

Her experience in accounting and in managing large federal budgets, while ensuring audits pass, is extensive.

She highlighted her experience in the federal government, including her work as a chief financial officer, and her plans to tackle fraud and inefficiencies if elected. Farrington expressed support for President Trump's agenda and the importance of putting America first.

She also shared her views on energy policy, emphasizing the need for data-driven decision-making and accountability in renewable energy.

We have offered to help with energy policies and get information for her campaign, as she is data-driven. That was one of the key points that hit me today. She loves data and wants to curb waste and fraud.

Please reach out to Kim at the Campaign website to donate or contact her office. https://kimforvirginia.com/

Kim Farrington is running as a candidate for U.S. Senate in Virginia to replace Mark Warner. She emphasizes her extensive listening tour (19 months, 48,000+ miles) where she engages directly with Virginia voters to understand their concerns and propose data-driven solutions.

A central theme of her campaign is combating fraud and waste in federal government. With 33 years of federal service experience, Kim claims to have identified over $236 billion in fraud and inefficiencies and aims to write legislation to recover these funds for taxpayers.

Extensive discussion on Virginia's energy mix (56% natural gas, 26% nuclear, 8% solar, 3.4% coal, etc.) and the challenges of renewable energy integration. Key points include:

• Wind and solar subsidies and their true costs to consumers
• Grid resiliency and the need for proper data on renewable performance
• The importance of nuclear energy as clean, reliable baseload power
• Environmental liabilities from wind and solar farms (estimated $89 billion)

Kim's strong support for the Second Amendment (influenced by her Texas parents who owned a gun store) and her alignment with President Trump's agenda on constitutional issues.

Support for the SAVE Act to protect voting through internal controls, auditability, and accountability in election processes.

Kim's commitment to consulting experts and relying on data rather than ideology when making policy decisions, particularly regarding energy, data centers, and government spending.

Emphasis on "America First" principles and support for President Trump's anti-fraud task force and cabinet appointments.

Check out the Energy News Beat SubStack https://theenergynewsbeat.substack.com/

A shout-out to Steve Reese and the Reese Energy Consulting group for sponsoring the Podcast https://reeseenergyconsulting.com/.

Data2 if you have any business systems, can you trust A? Well, they have the patent on validation. . https://data2.zoholandingpage.com/energy

And we have WellDatabase rolling in as a new sponsor. https://welldatabase.com/