In The Oil Patch – Episode 202: This week on “In The Oil Patch”: host Kym Bolado welcomes Steve Levy, President and Founder of Common Sense Strategies!
Aside from being the President and Founder of this company, Mr. Levy is also a former elected official for the state of New York, and currently hosts a radio show aptly named “Speak Out Long Island with Steve Levy”.
Kym is also joined by David Blackmon, Editor of SHALE Magazine!
-Originally aired on 5/18/2019 – 5/19/2019-
Alvin Bailey: (00:00)
Welcome to the In The Oil Patch, presented by Shale Magazine and sponsored by STEER broadcasting today from Aggreko Studios. Aggreko powering the Permian. In The Oil Patch is where together we explore topics that affect us all in oil, gas, business and in your community. Every week, your host, Kim Bolado, will visit with the movers and shakers in this fast paced industry. You’ll hear from industry experts, elected officials, and many more right here on In The Oil Patch.
Kym Bolado: (00:29)
Welcome to In The Oil Patch radio show. I’m your host Kim Bolado. Today, we have a great show lined up for you. We will be joined by Steve Levy who is a talk show host on IA news radio 103.9 but first it’s time to bring on our editor of Shale Magazine, David Blackman. David, welcome to the show.
David Blackmon: (00:49)
Hey, it’s a beautiful day in Texas.
Kym Bolado: (00:51)
It sure is. You know, we have a lot to talk about, David. There’s a lot going on, of course in energy, a lot of different moving parts, a lot of global situations that I want to get into. But you know, later on in the show we are actually going to be joined by Steve Levy who is a radio show host himself out in the New York area. And so the most interesting information that he’s going to tell us is probably how problematic it is here in the United States when we have problems with infrastructure pertaining to oil and gas and how it really comes back to the just the general population dealing with either higher taxes, access to energy, your utilities are higher. It’s so strange to see that in the United States, we’re importing from other countries that are not so friendly to us like Russia.
David Blackmon: (01:54)
Oh, it’s crazy. Yeah. The situation in New York is not tight. I really look forward to listening to that interview.
Kym Bolado: (02:00)
Exactly. So, let’s take it back to a global picture. Your area of expertise as well. You know, we have a growing trade war going on between the U.S. and China. It’s dominating the news. And so the Houston Chronicle had a story that was talking about the fact that oil industry has already been a casualty at this conflict and even before the recent tariffs. So what do you think the outcome will be pertaining to the tariffs and on oil and gas?
David Blackmon: (02:33)
Yeah, that actually was a very interesting story and it’s all true. You know, we do have the tariff situation that is increasing costs to the industry because of the tariffs on steel imports and aluminum imports. The US oil industry, the oil industry in general, is very, very dependent on steel products. And so to the extent, companies are having to import from China. Those terrorists are increasing their costs. Now of course, as time goes on, fewer and fewer companies are going to be using Chinese steel as long as the tarrifs remain in place, becoming less of a problem over time. But the chronicle piece was actually focused on U.S. Crude exports and LNG exports to China. In particular, LNG more than crude even. You know, China has really restricted the amount of petroleum products they’re importing into their country from the United States since last August, I think. Actually July of last year they cut it to zero in that month and sporadically had been importing loads here and there ever since. But in the eight months since last August, in five of those months, they’ve imported zero from the United States. Well, that’s a pretty sizable market that our industry here in the United States had been able to access. And as a part of the trade war, the Chinese government has basically cut that off. So it has been a significant impact to the U.S. industry.
Kym Bolado: (04:18)
And, you know, when you don’t get access to something, you find other ways of surviving or doing business. How much do you think, as an outlook, is this going to really have an impact on China long term?
David Blackmon: (04:33)
Yeah, it’s a problem for China. And here’s the thing. This is why president Trump hasn’t done, which pretty much every other president in the past would’ve done in cut and run because of bad news media. China needs a deal more than we do, much more than we do. You know, the U.S. market for China’s about six, $700 billion a year. The China market for the United States is less than a hundred billion dollars a year. So this is a far greater detriment to the Chinese economy than it is for our domestic economy here in the United States. And where the industry is concerned. Yeah, we’ve had these companies that are exporters server losing access to that Chinese market at least temporarily on a temporary basis. But these companies are very creative in their marketing practices. They’re strong at going and finding other customers for the oil and gas and that fact is born out by the increasing export numbers from the United States and it’s just going to other countries now rather than China. So it is an impact, but it’s not an overwhelming one it’s not going to kill the industry.
Kym Bolado: (05:50)
But will it have a long negative impact on China the longer they continue to allow, you know that that’s what saying is. I think they really need to think about what’s the longterm when you let the United States go out and do business elsewhere because they have no choice.
David Blackmon: (06:06)
Oh, it’s really impacting economic growth in China. You know, the United States economy is booming. That’s the other thing. The Trump administration doesn’t really have much of an incentive to give in on anything because our economy is booming. We have 3.2% economic growth in the first quarter. Growth remains strong. Unemployment’s below 4% whereas in China, their economic growth has slowed down dramatically since this trade war started. So the Chinese just don’t really have a lot of leverage in this negotiation and I continue to believe that ultimately there’s going to be an agreement here that’s much more favorable to the United States.
Kym Bolado: (06:51)
Well, I’d like to be a fly on the wall in it and just ask China, where are you going? Yes, seriously, Let’s do a laser focus on midstream cause that’s an equally troubling market when we talk about China. The steel and aluminum tarrifs. How much are they gonna hamper the U.S. Industry with this continuing tariffs on these two products?
David Blackmon: (07:16)
Well, it’s the same principle there. Yes, some companies got caught short because they were planning to use Chinese steel in their pipeline projects here in Texas. We’re having this massive build out in new pipeline capacity to bring all this Permian oil and natural gas and natural gas liquids down to the Gulf coast. And so yes, some of these companies got caught shore. They got caught in a situation where they, I mean, I don’t mean to make that sound in a bad way. You know, they were going to use Chinese steel all of a sudden the cost went up 10% with the tariffs. So they’ve had to either bear that cost or look for another source for their steel. But at the same time, the domestic U.S. steel industry is really cranking up much stronger now than than it was just a few years ago. And so there’s a lot more domestic steel to use and a lot of other countries around the world produce steel that there’s no tariffs on right now. So it’s the same thing. We have very creative people within these companies who will be able to find better deals on steel elsewhere and quit using Chinese steel.
Kym Bolado: (08:33)
Right. And I think the other thing is, you know, we attended an event yesterday in which a a midstream company, a very large one that’s coming online pretty strongly is saying it is what it is and we’re going to make due with what we have to. And I think that’s kind of the overall belief of Americans is, you know, nothing’s going to stop us. We’ll just, we hit brick wall, turn around, back up and go around another way. It is what it is. We have to still exist in business. And so therefore, if we have to find an alternative way, we will and we’ll grin and bear it. So at the end, what this means is, you know, everything. Eventually, the deals will finally get back to normal so to speak and we’ll get on down the road.
David Blackmon: (09:21)
One of my favorite sayings about the oil and gas industry is, “It’s an industry run by problem solvers.”
Kym Bolado: (09:27)
David Blackmon: (09:27)
This is a problem and these problems solvers will solve it.
Kym Bolado: (09:30)
There you go. Very good. Well, you know, we’re gonna take a quick break, but when we return I definitely want to get on one of the biggest news pieces we’ve had in a very long time is this very, very interesting story between Anadarko, Chevron, Oxy. New developments are happening and I want to get your take on that. But we are going to take a quick break. You are listening to In The Oil Patch radio show. We’ll be right back.
Alvin Bailey: (10:01)
In The Oil Patch radio show is proud to bring you this week’s energy minute produced by Shalemag.com. Here’s Texas Railroad Commissioner Ryan Sitton with your current industry update.
Commissioner Sitton: (10:09)
This is Texas Railroad Commissioner Ryan Sitton with your energy minute. Tension in the Middle East, continues to escalate. As 4 oil tankers were attacked Monday and a pipeline was targeted by a drone in Saudi Arabia on Tuesday. Saudi Energy Minister Khaleed Al-Falih said the attack will not disrupt Saudi oil production but the attacks were claimed by Houthi militias in Yemen that are backed by Iran, further heightening tensions in the region. WTI was up only 30 cents to end the day at $61.34 a barrel. As the U.S. China tariff increases potentially weigh on crude oil demand. Nymex natural gas prices also closed up 3 cents to end the day at $2.65 per MMBtu. This is Ryan Sitton and that’s your energy minute.
Alvin Bailey: (10:58)
Listen to In The Oil Patch radio and keep up with the oil and gas industry online at Shalemag.com.
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Kym Bolado: (12:27)
We’re back. You’re listening to In The Oil Patch radio show. I’m your host Kim Bolado and we are now being joined by David Blackman, the editor of Shale Magazine. David, before the break we covered all things happening, pertaining to China and the tariffs. Very interesting situation that we’re monitoring and keeping everybody up to date on. Let’s switch gears a little bit and talk a little bit about the big story that has been coming out over the last couple of weeks. The ANADARKO, Chevron, Oxy, saga. So Oxy ended up winning over Chevron when Chevron pulled out on May the 9th. And so going forward, first Chevron is going to receive a $1 billion separation fee for their troubles, of course, from Anadarko. But do they make that a down payment on another takeover target? So there’s that question I have for you. And then also, where do we go with Oxy and Anadarko? Now what will we be seeing from them?
David Blackmon: (13:29)
Yeah, you’re right. Chevron does get that billion dollars. Their CEO announced that’s part of what they’re going to do with it is increase their dividend in the coming months that they’re paying to shareholders. So they’re returning some of that.
Kym Bolado: (13:44)
Oh, you know, they’re happy.
David Blackmon: (13:45)
Sure. And of course that’s, been the big pressure on oil and gas companies for the last year now is from investors and from shareholders to increase the rate of return on capital, you know, at the expense of drilling more wells. And that’s part of the reason why the rig count, you know, has been in this slow decline since the first of the year. But, so that’s what Chevron announced they would do. But of course the rumors are still out there that there are a lot of takeover targets in the Permian basin. I mean, you can just look at, you know, some of the companies, Pioneer is a good example. You know, they are now a pure Permian play company. They don’t have any production anywhere else. They’re a very compact company with a very attractive production base, asset base. Their operations are you know, very, very much connected or adjacent to some of Chevron’s operations. And so there’s a lot of potential synergies between those two companies. Diamondback.
Kym Bolado: (14:49)
Does it really matter also though, like leadership, cause I mean Scott Sheffield is back and he’s just an experienced leader. He’s come in and made some, not to say anything negative about previous executives just, he’s a really top notch, very experienced leader in this area.
David Blackmon: (15:06)
And to be clear, you know, Scott has made it very clear repeatedly that they weren’t selling off all those non Permian assets in order to set the company up to be sold. They were just getting rid of what they considered to be non core assets because the Permian Basin has just a better rate of return on investment. And so I’m not sitting here saying that, oh gosh, Scott Sheffield wants to sell Pioneer. So nobody take it that way. But those rumors do float around in the media and on CNBC and Fox business. And so you see that out there and there’s no doubt, I think Chevron wants to grow its asset base there in the Permian and other big companies do too. So yeah, we could see some more consolidation as we go through time.
Kym Bolado: (15:53)
Excellent. What about a Oxy? They won the competition with Chevron. But they still have investors and shares shareholders to convince. There’s still some issues there to tell me a little bit about that.
David Blackmon: (16:05)
That’s true. And so the irony is Oxy did when the competition with Chevron and some of the investment advisers are now knocking Oxy for overpaying for Anadarko and praising Chevron for not trying to match Oxy’s offer. So there is some sentiment on Wall Street. It’s not universal, so please don’t get me wrong there either. But there is some sentiment that maybe Oxy overpaid a little bit for Anadarko. Some of their shareholders are also upset about that and concerned about that. So, yeah, Oxy does have a job. Like any acquiring company has a job convincing it’s shareholders and it’s investors that they made the right deal. And, I know Vicky Hall, the CEO, believes that in all of her heart, you can see going through that, you know, she was very firm and committed to it, so she believes she made the right deal. But yeah, there is a job there to convince everybody who has a stake in their company.
Kym Bolado: (17:06)
Well, David, that’s interesting. I guess over time, I’m sure she’ll be able to also give reassurance to the investors and shareholders that they did the right thing. Well, David, you know, we briefly covered Pioneer. What other companies could be targeted for takeovers in your opinion?
David Blackmon: (17:27)
Well, there’s quite a few. And, with companies like Chevron, like Exxonmobil, BP and Shell. Conoco Phillips is another giant company that would no doubt like to increase it’s position there in the Permian. So there are other companies that appear, Permian plays like Parsley Energy, that we had on the cover of Shale Magazine about a year ago. Again, another company with a very focused and compact and high quality asset base. Diamondback Energy is another company whose name comes up. Diamondback is all over the whole basin. I mean they have assets everywhere and a lot, a lot of acreage, so you know, it would be a big, big bite to chew off. But you know, they’re another company that gets mentioned. Concho Resources gets mentioned quite a bit. They’re not a pure Permian play but close to it. And so what, what these acquiring companies will look for is companies that first of all have contiguous acreage to their own operations. Because when you’re able to do that, when you’re able to tack on acreage that’s right next door, you’re able to get economies of scale and do water sharing across leases and then use the same operations people and things that allow you to become more efficient cost wise. And then they’re going to be looking for companies that have, you know, the lowest possible debt loads. It becomes harder to acquire a company that has a really high debt load. So some of these companies will be less attractive because of that. And then they’re going to want to look at companies that are getting really good results from their own drilling operations. Because you don’t want to go out and buy companies who drilling operations have not been successful. So there are several other companies out there that get mentioned quite a bit. I don’t have any doubt at all that we’re going to see more mergers and acquisitions over the coming year or two and it’s mainly going to be focused on companies in the Permian Basin. So it’s going to be a very interesting time in the industry.
Kym Bolado: (19:39)
Excellent. Well, we’re going to get ready for break, but when we returned, David, I want to get on the recent attacks on Saudi Arabia, on the infrastructure. We’ve had some activity out there. So let’s get on that when we returned from break, you’re listening to In The Oil Patch radio show. We’ll be right back.
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Kym Bolado: (20:35)
And we’re back. You’re listening to In The Oil Patch radio show. We’re talking with David Blackman, the editor of Shale Magazine. David, we’ve covered a lot of territory. I want to switch gears and talk about some troubling things that are happening outside the United States. Saudi Arabia had some attacks on some of their oil tankers. There’s also been some pipeline attacks as well. What is going on out there? And how, how concerned should we be pertaining to what’s happening over there?
David Blackmon: (21:16)
Well, I think we should be very concerned. So first of all, yes, Saudi Arabia did say that the two are their tankers and then there were two other tankers. One was owned by Norway and the other owned by the United Arab Emirates. 4 tankers total were attacked by some kind of sub sea explosive devices over the past weekend. And The Trump administration issued a statement from the U.S. Military, from the Pentagon saying that we suspected that Iran was behind those attacks. And then, the next Monday, 4 different pipeline installations there in Saudi Arabia were attacked by aerial drones. And that action where the Yemeni rebels, the rebels in Yemen, the country in the neighboring country there on the Arabian peninsula, took credit for those attacks. Well, the rebels in Yemen have been backed by Iran. And so the Trump administration also obviously suspects that that attack had been ordered by the Iranians. Well, that of course escalates everything in the Middle East. And so Trump administration had already ordered an aircraft carrier group, the U.S. Abraham Lincoln and its carrier group, into the Persian Gulf the week before. And now 5 B-52 bombers have also been sent to the Middle East. So we’re increasing our military presence there. Tensions are escalating. And that by the way also causes the oil price to go up because everybody’s afraid of war breaking out in the Middle East. So it’s a really bad situation.
Kym Bolado: (23:04)
Interesting. Well these are fairly new, drone attacks. And that strait and the Hormuz Strait is a very important area for oil tankers. So this is kind of troubling to see but do you see that this is going to continue in the way of, could this be happening in other places? Is this something that is a new bar they’ve reached and looking at new technology to create terrorism? And of course focusing on oil and gas. Where do you think we go from here? I mean, how concerned are the oil companies this is something fairly new, where drones are now attacking pipelines and being successful and oil tankers are being attacked at sea.
David Blackmon: (23:59)
Well, yeah, I mean, you would be very concerned about that potentiality, particularly if Iran is behind it. The Iranians we’ve known for many years sponsor terrorist attacks all over the world. To the extent that if somebody wanted to and have the ability to coordinate and plan such a thing on U.S. soil, that could potentially happen. It never has happened. I don’t think anybody’s loses sleep at night thinking it’s going to happen here in the United States. The reality is that drone strikes, you know, have been a thing now for the past 15 years or so in the Middle East. The United States is used drone strikes quite often to attack terrorists installations there in Afghanistan and Iraq and even in Syria. So to the extent Iran has this ability and has the ability to sponsor the sort of thing, then, you know, it represents an escalation in the global war on terror and puts everybody at higher risk unfortunately. But I don’t think anyone should lose any sleep that it’s going to be happening here in the United States anytime soon.
Kym Bolado: (25:12)
Well, I’m wondering about if, so the potential outside of Saudi Arabia and other parts of the world.
David Blackmon: (25:20)
Oh, absolutely. I think there is, yeah. I mean, okay. I don’t want to be overly belligerent, but let’s be honest. This is a country that again, has sponsored terrorist acts in all parts of the world even here in the United States. And so yes, they obviously have the goal of committing these kinds of things. Whether or not they actually were behind these specific attacks on Saudi assets still hasn’t been demonstrated, I don’t think clearly. But, if you assume they are that creates a risk globally because Iran has it’s tentacles everywhere.
Kym Bolado: (26:01)
Interesting, interesting conversation pertaining to what’s going on out there in Saudi Arabia. That is all the time we have for this week. I look forward to talking to you next week when we’ll bring you back on to talk more about energy and politics.
David Blackmon: (26:14)
Great. I’ll look forward to it.
Kym Bolado: (26:15)
And with that we do have to take a quick break. When we return, we will be joined by Steve Levy who is a talk show host on IA news radio 103.9. You don’t want to miss this segment and we’ll be right back. You’re listening to In The Oil Patch radio show.
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Kym Bolado: (27:19)
We’re back. Our guest today is Steve Levy who is a talk show host on IA news radio 103.9 and the president and CEO founder of common sense strategies. Steve, welcome to In The Oil Patch radio show.
Steve Levy: (27:46)
Thank you very much Kym it’s a pleasure to be on with you.
Kym Bolado: (27:49)
It’s a pleasure to have you because we are on of course, our radio show and I want to briefly cover you’re radio show host too. You’re also an assemblyman, a state assemblyman from the state of New York. And you also have a lot of, you’re very, very talented and an attorney. So can you introduce yourself to us a little bit please?
Steve Levy: (28:13)
Sure. I’m a former elected official. I was a 15 year member of the Suffolk county legislature. Suffolk County is the largest suburban county in the state of New York. It’s on long island. 1.5 million residents. I there after went to serve in the state assembly up in Albany in New York, and then rounded it off by coming back as Long Island and becoming the county executive for that rather big county. And thereafter, when I left the office in 2012 I wore great number of hats, but one of them being the executive director of a think tank called The Center for Cost Effective Government. Somewhat of an oxymoron, but we do a lot of good work with it. And one of the things we looked at was this is nonsense going on with people trying to eliminate the use of natural gas, which we believe is a bridge fuel. But I should just add that I’ve also been doing a great deal of commentary to my strategy group, common sense strategies for Fox News, News Max. I write, I’ve been published in the Washington Examiner and The Washington Times. So I throw a lot of opinion from here to there. And you picked up on my recent article and I’m glad you did. I’m happy to chat about it.
Kym Bolado: (29:42)
Well, let’s begin with the opted that you wrote. It’s titled “War on Natural Gas Will Stunt the Economy and Crush the Working Class”. And that’s a big statement and a big title, but it’s a very, very truthful one. So, let’s get started with, tell little bit about why you wrote this article. What is the main driving force behind something titled in your area, you have war on natural gas.
Steve Levy: (30:13)
Well there a number of environmental radicals who are getting far more attention and power that you think they’d be able to get, but they’re controlling the agenda in New York to such an extent that they are now blocking needed pipelines to bring in natural gas to give us the power we need for our businesses and residents on Long Island and also in Westchester. Now prior to that these environmental radicals were successful in bending Governor Andrew Cuomo to ban fracking in New York state. Which I think was an abysmal decision while you had Pennsylvania and Ohio and these other neighboring states having these economic boons thanks to the capturing of natural gas. Our upstate region, which is in very bad shape economically. We’ve had more people leave New York state than any other state over the last 10 years. This is one of the reasons we could have had an economic revitalization there. He blocked it. Now that’s one thing if you want to say we’re going to block future development. It’s quite another, even worse when you start saying we’re blocking pipelines to feed the people, the millions of people in the metropolitan area and that’s what prompted my article. Say this insanity has to stop.
Kym Bolado: (31:48)
Well, and that is one problem. There’s other problems too when you look at, you know, them blocking the pipeline or blocking pipeline development. Some of it is you guys are also, there’s parts that are actually importing natural gas from other countries like Russia. And you wouldn’t think that’s happening in the United States. And yet it is. And it has a lot to do with the blocking of these pipelines. And furthermore, the state officials are also calling for to reduce by 50% fossil fuels admission. And by the year 2030, which is too far away. What, in your opinion, does this have the impact on the residents that live and work in that community? I mean, the taxes and the cost of doing business, I mean, how does this affect that area by these troubling trends that keep occurring in these elected officials that keep pushing anti fossil fuel policies?
Steve Levy: (32:52)
Well we’re already the highest taxed region in the nation here in New York. As far as property taxes go, Westchester which is just north of New York City. Is the number 1 highest property taxes in the nation. Nassau County which is on Long Island, is number two. Suffolk are rounding out the top 10, 10 or 11. So it’s already brutally expensive to live here. Now add to that, high energy costs. We have some of the highest energy costs anywhere in the nation. What’s ironic is that instead of looking to cut costs here, which can be done with proper policy, we’re seeking to mirror the insane decisions in California, which has gone way overboard that they now pay 50% above the national average for their energy costs. And here we are trying to mirror them. We’ve got a lot of these radical leftists, theoretical environmentalists who will look at Germany as their model. And we even have a number of editorialists who will award what they’re doing in these other areas. But they fail to mention is Germany’s electric costs have gone to the roof. That’s three times what they are in many places in the state. So we’re actually going in the wrong direction when natural gas can be such an important component in not only bringing down costs, but also lessening the need for dirtier type of fuels. And also lessening our dependence on the bad actors around the world. You know, you mentioned that Russia. I mean, not only is it insane that we be having to be dependent on, you know, the old Middle East oil barons if we had to be at one point, but you want to get yourself away from Russia. You see Germany and Europe making these longterm packs with our political enemies over in Russia when they can be bidding amply supplied by the U.S. which would help us economically and makes them much less dependent on these really bad guys in Russia and elsewhere. So it’s a no brainer that we should be fracking more and developing more natural gas to help us save money, to build our economy, to provide a cleaner of sky and to lessen our dependence on the bad guys around the world.
Kym Bolado: (35:28)
Exactly. Now, Steve, we do have to take a quick break when we return. I’d like to talk to you a little bit more about some of the long term projects that you’re supporting in some of the other areas of interest that are happening out there in your area, but we do have to take a quick break. You’re listening to In The Oil Patch Radio show. We’ll be right back.
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Kym Bolado: (37:46)
And we’re back. Our guest today is Steve Levy, who is the president and CEO founder of Common Sense Strategy. Steve, before the break we were really discussing what is going on in your area long island. Some of the anti friendly oil and gas policies that the elected officials in your area have been pushing and the cost that has been pushed to the American taxpayer in your area. Let’s switch gears just a little bit and tell me in a big picture do you see down the road, where does this end. Cause we’re starting to see a lot of movement here in Texas as well. We’ve seen some really bad bills passed in Colorado too, and it’s a troubling trend that’s occurring. Give me a more global picture of what you see happening and why this is important to pay attention right now when it comes to energy.
Steve Levy: (38:50)
Well it’s very rough when you have those academia and that media that really combined forces with the left that just paint one side of this picture. The irony that I see here is that, you know, the far left such as the newly minted congresswoman, Ocasio-Cortez and some of her allies on the fringe, they profess to be advocates for the poor and the working class, and yet they promote a green new deal that’s so radical that the people who are going to be hurt by the implementation of this plan, are the very same poor and working class individuals that they claimed that they wished to help. That’s one of the reasons that you’re seeing the backlash with the yellow vest protests over in Europe. You know you have the elite saying, we know what’s best for you. We’re going to save the planet by imposing these taxes on you. Well, if you are the elites who are making $1 million a year, youroll it right off your shoulder. If you’re a middle class or working class guy or Gal who you know, just saw gas tax go up by 10% that’s crippling to you that’s food on your table, that’s a job you can’t hire. That’s a layoff. That’s a truck you can’t buy. That’s means you can’t go out to have a vacation you can’t have. So the irony here is that these proposals that the left is pushing are very, very regressive and it doesn’t have to be that way. Look up, I’m a believer that we have to look long term and I think technology is going to help us deal with the particulate that’s accumulating in our atmosphere. And I do believe that there is an impact by what man does. But to say that the United States should shut down it’s economy to enact these proposals that will have zero effect on the overall climate is actually ludicrous. So there’s better ways to do it. If they were really so concerned about, you know, the world ending in 12 years, they can go to, you know, nuclear if they want but they don’t say that.
Kym Bolado: (41:18)
Exactly. And you know, Steve, the other part is i want to actually get my hands on the science and the data that AOC is actually touting. We’ve got 12 years and I think Irishman Beto O’rourke also is stating 12 years because I just can’t seem to find where that specific data is that shows we have 12 years. What I do know is that United States is definitely the leader in using natural gas, which is a far cleaner burning fuel and it does definitely help clean the planet up and we are the leaders to show these other countries how to become more energy conscious and energy efficient. And I just cannot see, you know, the lunacy you’re talking about and it just, it has a platform every day in some of these media circles in it. I just scratch my head like why are people listening to this?
Steve Levy: (42:08)
Another thing to think of is, again the left is who professed to be for the poor not only here but around the world. Forget that over the last 20 years there has been a remarkable reduction in the poverty level around the world. I mean 700 million people lifted from poverty and that’s in large part because of investments of capital and the global economy that’s been growing. Now, with that comes more production and with that comes more particulate and that’s a problem. But you have to look at this with the whole picture in mind. If you shut down that growth more people die of starvation and disease. That poverty level that we started to erase does not go down anymore, it reverses. So you might think, oh I saving this patch of the planet by cutting off all of this natural gas. But how many people are now starving to death because of your crazy politics? So there has to be some balance here and you’ll have to look at the whole picture. We have to bring our greatest lines together to harness energy for the new phase of clean energy down the road. That can happen. That will happen, but it’s not happening tomorrow. They can start tomorrow, but it’s going to take a few years to make this happen, maybe a decade. In the meantime, you have to have the bridge fuels and natural gas to me is a better alternative than the dirtier fuels that are out there. So have to think long term. We can’t have a radical shutdown. We have to have a plan and we have to get there in a way that doesn’t create more poverty, more dependent on the bad guys that were out there like the Sheiks and the Russians. And allows our economy to grow while still cleaning on by.
Kym Bolado: (44:04)
Exactly. Steve, thank you so much for joining us today and we look forward to having you back on the show here in the near future.
Steve Levy: (44:11)
Thank you. It’s been a pleasure Kym.
Kym Bolado: (44:13)
Well, that’s all the time that we have for this show, but please be sure to like us on Facebook. That’s facebook.com/intheoilpatch. Or follow us on Twitter at ShaleMag. That’s s h a l e m a g. And if you have any questions for me or if you have questions on oil and gas, I encourage you to email me at [email protected] That’s going to wrap up another great show. See you next week with more exciting news and insightful interviews. Until then, adios.
Alvin Bailey: (44:44)
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