Speaker 1: (00:00)
And welcome to in the oil patch radio show. I’m your host Kimball lotto and today we have a great show lined up for you. We will be joined by the editor of show magazine, David Blackman, but before we bring David on, I want to tell you about the latest issue of show magazine and which the cover feature story is Tracy Bentley, the president of the Permian basin strategic partnership, an amazing organization of some of the largest operators in the Permian basin that have come together to create a mission that is unlike any other trade association. You really need to read up on what they’re doing out there in that area. For more information and to catch up with David and read his story, visit Shail, S H a L E M a g.com. Let me tell you also about the fastest growing networking group. Right now as we’re coming out of the Corona virus, everyone is looking for a party, an event, a networking event that you can grow your business.
Speaker 1: (01:03)
You should join Texas energy advocates coalition. They do a lot of mixers and events and they’re going to start virtual mixers very soon. For more information and to join, go to TX energy advocates.org again, that’s TX energy advocates.org and lastly I’d like to tell you about our state of energy that was rescheduled due to the Corona virus. It is now set for its new date of September 22nd in beautiful Corpus Christi, Texas. It is a luncheon with a networking mixer that evening. For more information or to go buy tickets, please visit [inaudible] dot com again, that’s S H a L E M a g.com and you’ll see the link to purchase your tickets. We’re still looking for sponsorships, but one thing is for sure folks, this will be a sold out event, so you definitely want to get your tickets now and we’ll see you there and now it’s time to bring on the editor of shale magazine, David Blackman. David, welcome back to this week’s show.
Speaker 2: (02:04)
Hey, it’s another beautiful day in Texas.
Speaker 1: (02:06)
It sure is. We have a lot of things to talk about and there’s a lot of moving parts. Once again, but it sure is exciting to see that Texas is starting to open up. And of course, you know, we won’t probably do our full shows anymore. You’re still, we’re lucky we’re still keeping you on the show. But tell me a little bit about, before we get into the really topics that we need to get into, is there anything you’re seeing with Texas opening up in the area of oil and gas that you can quickly put your finger on? As far as immediate changes we’re seeing,
Speaker 2: (02:39)
well, you know, the only gas sector is going to kind of lag. You know, we, we were never subject to a shutdown per se in the oil and gas business, although people had been working from home and uh, you know, companies, it’s going to be a company by company decision when to start bringing those employees back into the office store and what conditions there’ll be working. I think one of the, my viewpoint is that one of the, I think positive outcomes, if you can say anything’s positive about this is I really anticipate these companies with many, many employees are gonna have realized over the last six weeks that, you know, they have a lot of employees who can be just as productive working from home as they can be coming into an office. And I think when you think about that, and I think probably what we’re going to see is millions of employees across the country from this point forward are going to remain working at home.
Speaker 2: (03:36)
And that’s going to have a lot of positive impacts for, for our society though it’ll reduce the amount of traffic on the roads, it’ll reduce emissions from automobiles. Um, it, it will for the companies, it will enable companies to move into smaller office space and save money on office rents. And part of that is of course that, uh, you know, the real estate market for, for office real estate was already struggling in big cities. And I suspect that you’re going to see a negative impact on commercial real estate business in these big cities as a result of that. But by and large, I think the, uh, you know, the move to, to have more workers working from home is a net positive for the country as a whole.
Speaker 1: (04:25)
You know, it just really does have a lot of efficiencies and benefits to it and I think that honestly people are going to be far more happier to work from home. Of course, you know, you have to set up an office and you have to continue to take the kids to daycare so you can have quiet time to get your work done. All those things matter. But I think as a whole, not having to get up and, you know, spend an hour getting ready to get out the door to go to work, to look presentable in a professional attire when you can work from home and there’s so many great technologies available now. I think it’s just going to make a more enjoyable work force, if you will. That’s far more independent as well as helping these companies become more efficient with how they get their work done.
Speaker 1: (05:06)
Of course, you know, shell magazine has always operated in that capacity, so it’s nothing new to us and I just look at it and I’m like, all of our, you know, staff employees love it. I think we don’t hear any complaints because they don’t have to come to the office, but once a week, so it’s set up for me. We’re going to transition into the Texas railroad commission. We’ve had a past four shows on this topic because there’s been a lot going on. But before, you know, we, you know, we really get set up in what’s going on currently. Can you, can you take us through what was the whole situation with the Texas railroad commission leading up to a decision that they made last week?
Speaker 2: (05:43)
Sure. Yeah. Um, back in March, it was late March when partially energy in pioneer natural resources seeing the situation we were moving into because of the Corona virus, uh, requested, made a formal request of the railroad commission that they consider, uh, using their authority called proration. Uh, which allows them to limit all production in the state, uh, in this emergency situation because the, the market of course has been massively oversupplied. It was already substantially over supplied before a coronavirus. And this of course, all the shutdown is killed global demand and, and we’ve, gosh, in April, uh, and verus tells me that in April the market was over supplied by about 15 million barrels of oil per day. So parsley and pioneer natural resources believe that this was a time for the railroad commission to intervene and take action to reduce production in Texas and encourage regulators and other States to do the same thing, you know, to help alleviate that massive glut on the market. Um, the railroad commission first considered the question that it’s April 14th hearing, uh, did not take the action at that hearing at their next hearing on the 21st. They took it up again, did not take action. And then they met this past week, um, on the 5th of May and formally voted to forego taking that action. And by the time they took that load, frankly it was, you know, the market conditions had already passed them by anyway.
Speaker 1: (07:26)
Commissioner Ryan Sitton. So there’s three commissioners, commissioner Ryan Sitton, uh, brought the motion forward and commissioner Craddick and chairman Wayne Christian, uh, commissioner Wayne Christian opposed it. But my question is, is there, is there a lesson learned for the future? Is there a role that you think that um, the Texas railroad commission could play? Should things fall out again or should we be facing something like this once again? And are they studying the topic to where the next time while this came out of, you know, this quick, you know, a whiplash type of thing. I think that there’s an opportunity for them to look and see it. Does this really apply? Should we ever get into a situation cause this, they hadn’t done anything in a hundred years. Right. And so here we go with trying to figure out what to do, how to do it, what does that look like? There was no one there at the regulatory agency that had any experience in doing this.
Speaker 2: (08:23)
Right. It hadn’t been a hundred years. The last time they had done it was in 1972 but it would would’ve been a very long time. It’d been almost half the century. Yeah. Um, yes I do think there is a role. I don’t think the commissioners believe there’s a role. I I I wish they would take a longterm view. You can conduct a study about it because what’s going to happen here is that once the demand is restored and the projections now from embarrass and other companies is that global demand is going to rise back close to where it was by the end of this year. And, and the shell industry will start drilling Wells again and these companies will still be having a hard time finding capital to fund fund their drilling efforts because all the investors are going to fear they’re just going to ultimately oversupply the market again in just a couple of years. Why is that? Because the whole market rebalancing depends on the OPEC plus deal in which all those other countries are agreeing to mining to take almost 10 million barrels a day off of the market of their own production. And as we saw in March, that deal is not going to hold together forever. And so these companies, these shell companies are going to be restarting their drilling program based on a business model that relies on that OPEC plus deal holding together.
Speaker 1: (09:51)
And they have shown that they don’t have the patience to continue to do this.
Speaker 2: (09:56)
That’s right. So my view is the railroad commission, but I don’t think any of the commissioners believe this. The railroad commission ought to be thinking long term about proration and limiting what can be produced in the state of Texas and working with their colleagues in North Dakota and Oklahoma and New Mexico and Wyoming to do the same thing. So that this all in gas industry here, which cannot under antitrust laws, get together to control themselves. The regulators need to act to control them and control what they can produce overall in this country in order to prevent a massive crash happening again in three years when when the OPEC plus deal falls apart.
Speaker 1: (10:39)
Yup. And Harold ham,
Speaker 2: (10:41)
no one on the commission is taking a longterm view.
Speaker 1: (10:44)
I think that Harold Hamm has also brought this forward to a couple of years back at a luncheon that he uh, spoke at [inaudible] did. When we come back from break, there were a couple of energy companies that announced that they could be profitable at $30 per barrel. So I want to get into that. You’re listening to in the oil patch radio show and we’ll be right back and we’re back. You’re listening to and the oil patch radio show. I’m your host Kimball auto. And today we have David Blackman joining us, the editor of shell magazine. David, we were talking about on previous segment, the Texas railroad commission and their vote to not get involved in pro rationing oil, if you will, here in Texas. Both parsley energy and diamond back energy said this week that they can be profitable drilling in the Permian basin there, those Wells at $30 a barrel. That’s a really amazing thing there. You know, to be able to be profitable. How much profit do you think, and are there any other companies out there that are able to, to to make a profit to it? 30
Speaker 2: (11:48)
yeah, that’s a very low price per show. Um, you know, and I don’t know exactly what the debt load of those companies is. Uh, if they have a very low debt load, it’s conceivable that you could, you know, drill these him. Both of these companies have leasehold acreage in the very sweet spots of the Permian basin and so they, the Wells they drill are very highly productive and I assume that’s what they’re talking about. They can target their most productive drilling locations and drill Wells. It could be profitable at $30 a barrel. I across the basin, you know, you have the acreage varies in potential profit producing potential. Um, and so, no, I don’t think it’s widespread that, that a whole lot of these producers can be profitable at that price level, but, uh, both Diamondback and parsley say they can. And so,
Speaker 1: (12:47)
but they also announced too that they were going to even cut back on, on drilling in the same area too. Right.
Speaker 2: (12:54)
In fact, they already have both. Both companies have already canceled their drilling program temporarily, you know, because prices are, have stayed below that threshold. But, uh, Travis spy, so I know personally and, uh, he was the CEO of diamond back, uh, you know, told his investors that, uh, once you get the price back up around $30, you know, they’re going to reconsider that decision. So, you know, he’s an honest guy and I believe,
Speaker 1: (13:20)
yeah. What about West Texas intermediate, better known as WTI. It’s now trading at about $26. Um, do you see, when does it going to get up to 30? When does the diamond back in parsley kept back to drilling in the Permian basin?
Speaker 2: (13:36)
Well, you know, it’s, it’s, it’s a good question. I, we see that $26 price. That’s the Timex, uh, June contract price. When you look out at the Ford months out through the end of the year, they do, you know, uh, on those futures contracts that all is trading higher than $30 during those out months. Um, but how permanent that is, I would assume. And, and of course he, he didn’t say during the investor call, I would assume that the management teams at those companies would take a look and you know, they’re not going to say if the price goes above $30 for a day or two, they’re not going to automatically reactivate those rigs. It’s going to have to get up there and stay there for, for a period of weeks. And the Outlook’s going to have to be pretty positive before they’re going to be really ready to start reinvesting in drilling.
Speaker 2: (14:32)
So, but I do think, I mean, I believe that the price by the end of the year is probably going to be up around $50 a barrel. I know many of the analysts are being more conservative than they have. But when you look at the way we’re headed directionally in terms of how rapidly we’re supply here in the U S and the OPEC plus deal and how rapidly we believe they, these firms believe that demand is going to return, it says countries restart their economies. I just think we’re going to have a actually a, a shortage of crude production in the fourth quarter of this year. So,
Speaker 1: (15:12)
and I think he wrote on that, I think he wrote on that, uh, on the shale daily that you posed every, every day on a, the shelf Facebook page and of course on the website and if any of our listeners want to follow your expert advice and just to get your daily dose of what’s going on around the world and energy, I highly encourage them to like our Facebook page, [inaudible] dot com and they can follow you. Meanwhile, David in Houston, Halliburton just announced that they are laying off a thousand employees at their headquarters. Now, let’s back up just a little bit and put this, they’ve been laying off and furloughing they announced, I think last week that they were closing the city of San Antonio’s entire facility that they, it’s, it’s less than eight years old and I would imagine a lot had to do with of course the price of a crude, but also San Antonio seems to lack in some ways a real appreciation for what the energy service companies here in this area are doing and when you just do not have the revenue to be able to keep all these people employed and be able to generate a profit.
Speaker 1: (16:24)
The service companies, they really don’t have any options except to lay off. And I think there was an issue between Halliburton here in San Antonio facility and the leadership here in San Antonio, but then there also is Weatherford and BJ right around the corner and they too are in the same processes. Halliburton with the city’s demands for them to keep a certain amount of people employed at a certain rate. And it’s so funny because no other company could do that or would do that. You know, if you’re not making a profit, you’re not keeping people employed and you’re not keeping everybody on the books the way, you know the city. San Antonio expects the service companies to do that. Talk to me about Halliburton and do you see that Weatherford and uh, and BJ and then of course all the service little service companies that have moved in around Halliburton in the San Antonio area.
Speaker 1: (17:20)
Do we start seeing the fall like dominoes? Like they’re just gonna slowly start going, you know, out and shutting down their facilities because to be honest with you, David, they moved in because of Halliburton and because of Weatherford and they build buildings and now that they’re leaving and they’re moving further into Eagle Ford, the city San Antonio lost a huge amount of revenue. And I wonder if Houston, at least they, uh, I think do appreciate the service company being there. When we get back from break, I want you to give me the differences of what you feel is happening in San Antonio with the service companies. And then of course, announcement in Houston at the Halliburton headquarters out there. Stay tuned. You’re listening to in the oil patch radio show and we’ll be right back. And we’re back. You’re listening to in the oil patch radio show. Our guest today is David Blackman, the editor of shell magazine. David, before the break I was asking you your opinion on what’s going on in San Antonio at the Halliburton facility and the Weatherford and BJ facility. What’s your opinion on what’s happening there? And then also the announcement that Halliburton released that they are going to be laying off a thousand employees at their headquarters in Houston, Texas.
Speaker 2: (18:32)
Yeah. Well, you know, it is unfortunate as we talked about last segment that city of San Antonio voters have installed a city council and mayor who seemed to believe they’re governing Seattle rather than a city in Texas. And you know, putting these kinds of requirements on companies. Well, you know, obviously when it comes time to shut the facility down, uh, some of these companies are going to look at cities where their costs are much higher and, and regulatory restrictions are much higher and those are going to be the first to go. And unfortunately you’re right, it will the closure of the Halliburton facility and the other BJ services and the other big, uh, all field service companies is going to lead to probably closures of a, of a lot of those smaller companies that sprung up around them. And you know, we’re Halliburton’s concerned they did at first attempt to weather this storm with furloughs, you know, where people were retaining all of their benefits, but only working every other week, two weeks a month. Um, unfortunately it’s, it’s gone on so long that they’re unable to do that. So they have begun laying off and shutting facilities. When you look at Halliburton and the oil field, they are heavily involved of course in hydraulic fracturing operations. The national number of frack crews still operating today is around 75 where before the coronavirus said we had over 400 crews
Speaker 1: (20:10)
from 100 to 75. Yeah.
Speaker 2: (20:12)
Yeah. And so you’ve had this massive loss of activity and it’s very unfortunate, but companies have to make a profit and these are companies that are in business to make a profit, not to cater to the whims of city council. And, and mayors and uh, so you know, this is what’s happening in the city of Houston fortunately has not moved in the same direction that the city of San Antonio has. It has a better appreciation for the oil and gas industry. Uh, it doesn’t put those kinds of requirements and restrictions on companies that want to provide jobs and you know, a lot of income and pay a lot of faxes within their community. So it just, it’s very unfortunate the direction the city government has taken.
Speaker 1: (20:58)
Very unfortunate, especially when you consider that not only Halliburton and Weatherford and BJ and all the service companies on the South side of San Antonio that are out there are dealing with such devastation. Then we also have announcements from Valero and Neustar that they too are experiencing losses. I mean this is, yeah, this is all over the, the oil chain. It isn’t just upstream if you will. And you report from Logan finds that 25% of the state’s entire oil and gas workforce is already been laid off and 50% of producers surveyed said that they are considering bankruptcy. Yikes. What the heck is going on? I mean, yeah,
Speaker 2: (21:37)
Louisiana’s getting hit as hard as, uh, as, as Texas is. Logan is of course, uh, one of the greatest trade associations in the industry based there in Louisiana. I love those guys. And they, they did release a survey on Thursday of this week. Uh, yeah. Uh, detailing those things, 50%. Think of it, 50% of the producers in the state of Louisiana are on the verge of filing bankruptcy. 25% of all the oil and gas employees in that state have already been laid off. That’s probably not exceptional really around the country. I suspect you would find similar responses to a survey taken in North Dakota or Wyoming or New Mexico, um, of the industry. And, and, and this is just what’s happening in the oil patch right now. So it’s extremely unfortunate. You know, I’ve, uh,
Speaker 1: (22:34)
the hits just keep coming.
Speaker 2: (22:37)
Yeah. You know, I’ve been in this industry for 40 years and um, no, so many of these people and it’s just really very, you know, it’s very tough to watch so many people getting put out of jobs and, and having their careers disrupted this way. It’s just terrible.
Speaker 1: (22:53)
Exactly. When we get back from break, I want to talk about some statistics that have come out for global demand. You’re listening to in the oil patch radio show and we’ll be right back and we’re back. You’re listening to in the oil patch radio show. Our guest today is David Blackman, the editor of show magazine. David set us up on also, there was a report from the Marcellus organization out there, one of their organizations that Andrew Cuomo, that their state would have varied a lot better if they had not outlawed hydraulic fracturing. What’s going on over there in their area and what are they facing?
Speaker 2: (23:29)
Well, you know, the, here’s a really, so this is a really significant thing that the state government of New York state is essentially bankrupt.
Speaker 1: (23:38)
Yes. They want to bail out, which
Speaker 2: (23:40)
is why, which is why New York and other States like California and new are begging the federal government for a bailout right now because their, their governments are basically bankrupt and they’re without a government bailout. They may actually have to go through bankruptcy, which state governments have never done. But you could come to that. And part of the reason why New York is in such dire straits is because governor Cuomo himself in 2012, I believe it was, made it illegal to conduct hydraulic fracturing operations in New York state where the Marcellus shell gigantic swath of the Marshall is sort of a shell formation runs underneath New York state. It would have provided billions of dollars and state revenues of over the last decade had not done that. And the state would be in a much better financial position because thanks to the oil and gas industry. But you know, this is what audio logs do. It’s just like city of San Antonio’s government. You have a bunch of audio logs, uh, who make these decisions without thinking through all of the unintended consequences that are going to come later on. And so that’s the physician Andrew Cuomo finds himself in today, which could have been largely greatly alleviated by a vibrant oil and gas industry in this state.
Speaker 1: (25:02)
And not to mention the citizens are paying a lot more in their utilities and just taxes because they’re refusing to allow hydraulic fracturing area. Let’s switch gears and talk about innervates. They released a new study projecting that natural gas prices will climb to about $4 by winter, or the average will be two 88 during 2021. So what are the factors behind this and what will we be seen as consumers? Will we be seeing higher utility costs? What will we be seen when, when the price goes up? I mean, the price going up is good, but it also has that unintended consequence too. Right? Right,
Speaker 2: (25:38)
exactly. And, and so, you know, right now, natural gas selling around $2 per Raymond BTU and, uh, uh, embarrass is expecting it to double, you know, temporarily over the winter for just a few months. And then, but it’s, they, they say they think that will average, you know, close to $3 in M and BTU, uh, for 2021 and yes in Texas that could lead to higher utility prices. Um, although I’m not convinced my electric provider has passed along all the lower gas price costs in my bill.
Speaker 1: (26:14)
Yeah, for sure.
Speaker 2: (26:14)
You know, Texas over half of our power generation is, is provided by natural gas power plants. So when natural gas prices go higher, uh, our utility bills tend to a few months later go higher as well. Hopefully, I mean, this kind of a price increase for natural gas would not create a big spike in pen utility prices, but it could, could go somewhat higher.
Speaker 1: (26:40)
Interesting. Well also continuing on with interest in some of their projections as well as Ronstadt energy predicts that global demand for oil will rebound around 98 million barrels per day. Um, by the end of this year, does that seem like we are reopening the economy fast enough for that to happen? And, and, and honestly, does it seem realistic to you? Cause you’re always making projections, you said like 50 earlier in the show. So do you see it being, this is an accurate assessment?
Speaker 2: (27:13)
You know, I, I think so. Certainly in Texas we’re opening up quickly enough, um, and very carefully over in our, avid is being very careful about, you know, the pace of this. But I think when you look at there are States who are going much slower, but they’re also States going much quicker than Texas is. So I think we’re striking kind of a good balance here in Texas and around the country in getting this economy going again and uh, globally. Uh, you know, a little tote story and all of this is, is the country South of the equator have not been nearly as hard hit by this farce as those in the Northern hemisphere. And China has already largely reopened its economy. Uh, several European countries, Germany being one of them are rapidly reopening their own economies. And so, you know, embarrass takes all that into account when they’re doing these projections and yeah, they, they think it’s, it’s going quickly enough. I, I hope it is. Um, you know, we’ll just, we’ll know a lot more in a month when we do say, but um, just based on the fact that both where I stand and embarrass are saying this makes me pretty optimistic about it.
Speaker 1: (28:27)
So even if it’s at $50 a barrel, like you’re kind of thinking by the end of the year and we know that there’s some of the operators have announced in the Permian basin area they can make a profit at 30. What happens at 50? I mean, how robust do we see shale coming back, uh, in your opinion? If it’s 50
Speaker 2: (28:46)
well of course, so, so yeah,
Speaker 1: (28:50)
get your crystal ball. Same
Speaker 2: (28:51)
question because you have to also think about who’s going to be left to drill those Wells if after your company is declaring bankruptcy over the next few months, and some of those companies are going to probably not just declare chapter 11, some of those companies are probably going to have to go all the way to chapter seven and, and be liquidated. Then who’s going to be around a drill those Wells and are the companies that do survive, are they going to be able to obtain the capital they need from lenders or investors in order to fund the drilling all these new Wells and keep their production levels going? And I think that’s an open question right now. You know, because it’s, you just have to think through what all is involved in that chain. The banks were already shying away from lending more money to oil and gas drillers, uh, before all of this here. And even private equity investors were also beginning to rethink their investments in the oil and gas upstream sector. And so after all of this, when the sector’s been decimated this way and the economic situation is, I think she’s going to be still pretty bad, uh, during the fourth quarter of this year. It’s, it’s an open question to me whether or not these companies, particularly independents are going to be able to obtain the capital they need to restart their drilling.
Speaker 1: (30:21)
So it’s a waiting game when we get back from break. David, I want to get on the topic of some climate change information as well. You’re listening to an oil patch radio show and we’ll be right back and we’re back. You’re listening to in the oil patch radio show. Our guest today is David Blackman, the editor of shell magazine. David, I want to get on the topic of uh, the environment and the climate change folks. But before we do, I want to go back. Um, I don’t know if we necessarily completed the whole entire conversation on the increased price that’s coming for natural gas and that we clarified why is it going to go up, what’s causing that,
Speaker 2: (30:59)
right. Yeah, no, I forgot to talk about that part, which is kind of important and calm. So one of the ironic things about the Permian basin is that even though every drilling rig that’s been drilling out there for the last five years has been drilling what is classified as an oil well, all of those Wells produce a lot of natural gas along with the oil. And the Permian basin is turned into the second largest gas producing basin in the country. So what’s happening when we lay down all of these drilling rigs and the drill, the rig counts down by almost 70% now year over year, um, is that we’re not only reducing oil production, we’re reducing natural gas production, a vast amount of natural gas production here in the United States and really all over the world. And so what’s happening is, and what’s going to happen by the winter is we use a lot more gas in the winter because so many millions of Americans heat our homes with natural gas.
Speaker 2: (32:03)
Um, and so the uses goes way, way up. But at the same time, our supply of natural gas for the first time in many years is going to be declining over the winter. And that’s why we have to create a significant shortage of natural gas come January or so is what embarrass is thinking. So that’s why the price would go up during that period of time. But then once you get past winter and starts warming up again, naturally supply becomes more plentiful because demand goes lower and the price will go back down. And why that $4 price is always, you know, really projected the last two, maybe three months tops. So that’s what’s going on.
Speaker 1: (32:48)
Well, let’s switch gears and talk about the environmental extremist. Um, this is definitely a unique time. Uh, there was a piece in show magazine that everyone should read and it’s for the first time in history, the healthier being quarantined along with the sick and you know, literally shut down the entire world. And there was an article that came out in, in, in show magazine. This opted is in there and it’s discussing, some of these environmentalist are saying we could shut down and stop the virus. That also means that we could probably shut down and stop climate change and you know, we did see a drop in in a lot of different areas, but I, I can see where they’re going with this and I can see how some people will jump on the bandwagon for this of like, you know, we have fresher air and this and that, but that’s not really logical like this.
Speaker 2: (33:43)
Well, I mean, yeah, what value is it to have pressure air if you’re living in a century squalor because that’s what they’re talking about. Maybe we can’t keep this economy shut down for more than a few months before the bread line start. Then the soup kitchens have to start up to feed people. The federal government has been able to mask a lot of the major impacts from putting everyone out of work with these stimulus bills. But, but these climate people seem to think, well, Congress can just keep pumping $6 trillion into the economy every few months and we’ll all be fat and happy. No, that’s, that can only go through one cycle of that stuff before the federal government. Two years on the edge of bankruptcy. Okay, we have to pay these bills at some point folks, we just can’t all live in our, in our business for the rest of our lives are like Joe Biden in our basements for the rest of our lives. America has to work and, and so, but you’re right. I mean, these are environmental extremists. This is Nirvana for them. This is exactly what their green, new deal would produce for our society.
Speaker 1: (34:57)
Well, you know, I mean, let’s just look back and uh, while we were having, of course, our president speak to us every day and his team and the task force, a lot of it we were listening to was there kind of just listening to what they believe best practices are and making it up as you go along the way. Not, not in a negative way, but just we’ve never been here before. Well, isn’t it the same thing with energy in reference to like, we can’t just like you’re saying, go into our houses and stay in there. Energy is the life support for us all. And while, you know, there’s this great debate going on, you know, do we take it offline? If so, when, you know, do we slowly take it off? Is there another energy source out there we can develop? I just think there’s a great deal of uncertainty when we’re looking at other people dictating to us what we should be doing when you don’t really know that.
Speaker 1: (35:49)
And I’m not okay with shutting down my business and staying inside and uh, doing away with hydraulic fracturing cause you have these unintended consequences. Again, that puts us more to risk like we were for getting into Wars in the middle East. We’re less secure as a nation and as a country. There’s national security issues here at hand too. When we start tinkering with, let’s just walk away from keeping it in the ground, not to mention, look what’s happening in New York. They’re paying a higher price because they refuse to allow hydraulic fracturing in their backyard. So what is the energy industry need to do to start combating the new narrative that’s coming out on with these environmentalist?
Speaker 2: (36:31)
Speaker 1: (36:32)
Speaker 2: (36:32)
Well you and I have been talking about three years now. The industry needs to communicate more and communicate better and more effectively. Um, all the things that, uh, executives in the owners, many executives, not all of them in the oil and gas industry fight against doing every day. Um, and it’s sad. Uh, the, the industry has, you know, basically allowed its opponents to dominate the playing field when it comes to messaging and education, uh, for all these years and you know, refuses to invest in doing it the right way and in an effective way. And so, you know, we just continue to lose ground that by the way, the article you’re talking about that was cited in our shell magnet, uh, piece was printed in teen Vogue magazine. Now think about this. This is brainwashing teenagers.
Speaker 1: (37:32)
Oh yes. They start early.
Speaker 2: (37:34)
It is completely absent void of any factual basis whatsoever for real world observations. At all, but that’s where these people are going. They, they, they just, they start brainwashing your kids with this stuff when they’re in nursery school
Speaker 1: (37:51)
and now they’re getting upset that we got to get the kids back to school so they can continue on their brainwashing because they haven’t had access to them for awhile. They kind of go back
Speaker 2: (37:59)
scared to death that parents are figuring out what in the world they’ve been teaching their kids. But I having the homeschool and they also, yeah, a lot of education people are getting a little nervous about all this.
Speaker 1: (38:11)
Yeah. I mean they don’t have access to the brainwashing of the children anymore. We got to get them back into the schools and back into their classrooms. David, I want to thank you for joining us this hopefully obviously you will continue to be a part of the show, uh, our first segment of the show. However, I do think that moving forward we probably will be going back to our normal programming since we’re out Corona lockdown, Corona, panic, Corona locked down, and it’s time to resume our regular guests and get some people on the, get some guests on the show that actually can, uh, break things down for us. Thank you for joining us this week and I look forward to having you back next week.
Speaker 1: (00:00)