Karr Ingham Q & A ITOP Radio Show

Karr Ingham Q & A on In the Oil Patch Radio Show

Speaker 1: (00:00)
And welcome to In the Oil Patch radio show. I’m your host Kym Bolado, and today we have a great show lined up for you. We actually are having Karr Ingham, the President and CEO of the Texas Alliance of Energy Producers and David Blackmon, the editor of SHALE Magazine, joining us for our live show. And if you would like to join in on the show, call in and be a part of the discussion or if you just have a question because there is a lot going on in today’s world pertaining to oil and gas, please feel free to call us and join the conversation. That phone number is area code (210) 308-8867. Again, that number is (210) 308-8867, and I’ll be looking forward to you calling in. Before we bring the guys on our live show today, I’d like to talk to you about one of the fastest growing energy groups, which is better known as the energy chamber, but it is really designed to help promote your business and brand it.

Speaker 1: (01:06)
It’s called Texas Energy Advocates Coalition, and it actually is created for growing businesses and networking opportunities. For more information, please go to TXenergyadvocates.org. Again, that’s TXenergyadvocates.org. For more information, be sure to sign up and join, and I will see you at their next event. And speaking of mixers, they have an upcoming mixer going on in the Houston area at the wonderful Fogo de Chao located in the Woodlands. If you’d like to build your business catch up with SHALE and In the Oil Patch and meet other networking people like you who want to grow your business, for more information, you should visit TXenergyadvocates.org for more information. And you know, one of the latest issues that has just dropped with SHALE Magazine is the cover featuring Tracee Bentley, who is the CEO, President of the Permian Basin Strategic Partnership.

Speaker 1: (02:16)
You guys may or may not be familiar with this wonderful organization, but it is built on the concept that some of the largest operators in the Permian Basin came together and wanted to help them with the infrastructure in the areas of healthcare, transportation, road development and other vital services such as education. And so David Blackmon, our editor was able to catch up with Tracee Bentley, and we were able to put out this issue of SHALE Magazine on the organization and Tracy. And now let me bring on David. David Blackmon, welcome to our live show. So you were able to catch up with Tracee Bentley. Tell us a little bit about this cover and what can our readers expect from the latest issue of SHALE Magazine.

Speaker 1: (03:12)
Tell me a little bit about that discussion that you had, and I think our listeners would like to learn more about the association itself. It’s a very unusual association. There’s only one of a kind. So tell us briefly about it, but don’t give away the whole story because we want our listeners to go check out the latest issue of SHALE Magazine.

Speaker 2: (03:33)
Yeah, no, it’s the first real effort of its kind, and it’s 19 or maybe even 20 of the big producers, pipeline companies, service companies that are active in the Permian Basin. They put together a fund. There was initially a $100 million commitment from those companies that has now grown into a $180 million commitment over a span of five years to engage in various partnerships with the communities there in West Texas and Southeast New Mexico, where the Permian Basin activity actually is, to help those communities fund programs and plan programs designed to help them mitigate all these impacts that come along with heavy oil and gas development. The oil and gas industry is a very intensive industry when it’s in a boom time, which of course over the last two months, has been mitigated by this coronavirus plague.

Speaker 2: (04:37)
Hopefully, that won’t last too much longer. But you know all of these communities during these times of really strong oil and gas activity have impacts around education, around housing, around the health industry. You know, hospitals get a lot more activity when the population suddenly increases like that, and you have traffic related issues because the oil and gas industry uses a lot of truck trips on every well that gets drilled and every hydraulic frack job that gets performed. And so it’s a really interesting approach to this. It’s not just a bunch of companies throwing money at fire departments or buying fire trucks, and the kinds of things you see happening a lot. This is those companies led by Tracee Bentley, who’s just had a fascinating career.

Speaker 2: (05:39)
But also it’s a lot of sweat equity from the people in those companies going out into these communities, sitting down with the local officials and other community leaders to develop plans that are longterm plans, and they become evergreen projects. It’s not just one off kind of spending. I just think it is really commendable that all these organizations decided to partner up and do this. And then half the story is about Tracee and her background, which is really quite a story in and if itself.

Speaker 1: (06:17)
Two things that were very interesting to me. First, to see that this was somewhat of the first of its kind in the sense that finally after the Eagle Ford shale, which did experience a lot of infrastructure issues – the schools had a lot of issues – so it was just a lot of growing pains. Not bad actually, it just kind of imploded on them, this economic boom. And with that, they had to scramble. And I think what the operators learned is when we move into the next area, we want to provide as many resources as we possibly can to ensure that we do not have that issue again. And that is kind of the birth of this Permian Basin Strategic Partnership. And as you know, as we were focusing on this great organization, there was a lot of chatter that came out wanting to know more about it because you’re talking about the biggest and the best operators in there, right?

Speaker 1: (07:10)
So, just for everyone to understand, they are not an association that you can join. It’s just those operators, and this is not like a chamber or an association that do a networking and things like that, not at this moment anyway. It might evolve into it, but as of right now, they’re really heavily busy on trying to get the infrastructure and all the mission, the core categories, and what they created were designed to do. So it’s a pretty interesting organization. If you want to learn more about the organization, how to get involved and probably even how to do your part with them in some form of partnership, please be sure to go to SHALEmag.com, and you can read all about Tracee Bentley and the Permian Basin Strategic Partnerships. It’s time to move on. You know, David, you and I do the show a lot, and thank goodness we are taped right because the starting of this show started off on a very rocky road, but that’s what happens when you do live.

Speaker 1: (08:13)
You just kind of tap dance around. I apologize to our listeners if you were hearing an echo, and it was a little difficult to read my script. That being said, we are still looking for Karr Ingham to join us on the show. So you and I are going to do what we normally do, which is just continue on with the show. Now, David, we had a very, very interesting week this past week. There were a lot of moving parts in oil and gas. You and I did a lot of discussion pertaining to oil and gas, what was happening at the Texas Railroad Commission, what was happening with OPEC, OPEC+, is there an OPEC++ potentially, which we’ll get into that here in the show. But there was so much going on, it was really hard for anyone to really keep up with so much that was going on, and so there was a lot of interest in helping navigate. People asking, Hey, what should we be thinking is coming down the pike?

Speaker 1: (09:21)
And so I’m glad that we were able to have a couple of shows. And so, today what I hope to accomplish with our show is that we cover all those different things. And then, of course, it’s our live show. So we’re going to be taking calls as well, but I want you to set us up. We’re going to go into break here shortly. I want you to set us up. Let’s just kind of discuss what happened with the Texas Railroad Commission, not the hearing. I want to get into that in the next segment, but I want to get into what was the nature of the emergency hearing that they had.

Speaker 2: (09:49)
Sure. And that was of course related to the collapse in oil prices and the collapse of global demand for crude oil that’s been brought about by this coronavirus pandemic. Two producers, Pioneer Natural Resources and Parsley Energy – two big Permian Basin producers that have both been featured in SHALE Magazine – requested the commission to hold this hearing to consider implementing mandated reductions in oil production from wells in the state of Texas. And the Railroad Commission does have that power. It’s called prorationing. And the three commissioners agreed to hold the hearing. That was last Tuesday. It was a long and very detailed hearing in which you had, gosh, over 50 witnesses offer verbal testimony both in favor of and against making this move. And it was a fascinating thing to listen to. It was televised over the internet through a video conference.

Speaker 2: (10:53)
And it was really, I think, very rewarding and gratifying to watch how engaged the commissioners were, how truly knowledgeable and interested they were on the subject matter and the questions that they were asking of each witness. It was completely different from anything you would see happening in Washington D.C. There was no hyper-partisan language or rancor involved, no shouting and reciting of stupid talking points. It was just a well intentioned people having a very important discussion about how the Texas oil and gas industry moves forward, and what the Railroad Commission may or may not be willing to do to intervene in the current market conditions.

Speaker 1: (11:40)
Well, you know, I think the other thing that really made an impression on me was when Christie Craddock said, we’ve never been here before, and we’re looking for history. It was a hundred years ago when we did something even remotely close to this, and they were looking for those kinds of answers. When we come back from break, I want to get back on that topic. You’re listening to In the Oil Patch radio show. And welcome back to In the Oil Patch radio show. I’m your host Kym Bolado, and today is our live show in which we are encouraging our listeners to call in and ask any questions you might have pertaining to oil and gas. The phone number to call in is area code (210) 308-8867. Again, that’s (210) 308-8867. And right now we have David Blackmon, the editor of SHALE Magazine on the line and a trusty old friend here to the show.

Speaker 1: (12:33)
And, we will be joined by Karr Ingham here soon, who I think we are trying to get him activated on our studio line. David, while we’re waiting for Karr to join us, we were talking about the Railroad Commission and an emergency hearing that they had this past week, and it was a hearing that was requested by very well respected energy companies, which were Pioneer Natural Resources and Parsley Energy. The hearing, like you said, was a very long hearing, and the commissioners did a great job of listening to both sides for and against them getting involved in how they are going to regulate how much is being produced in the way of permits and being able to drill. So, I’d like to join Karr Ingham, who is the CEO of Texas Alliance of Energy Producers, who we now have on the line to join us. Karr, are you there?

Speaker 3: (13:40)
I am. Good afternoon, Kym.

Speaker 1: (13:41)
Good afternoon. It was kind of okay that we didn’t catch up with you right away on the show because we had a little bit of an oopsie in the first segment. But that’s what happens when you go live and your mic goes out on you. We had a big buzz going on, and it wasn’t a good buzz. It was a buzzing buzz. So, let me introduce you, you are CEO of the Texas Alliance of Energy Producers, but you’re also a petroleum economist, as well. I feel flattered every time I get you guys on the show because you guys come with so much information and experience. But Karr, tell us quickly about the Texas Alliance of Energy Producers before we start asking you a lot of questions because you guys were talking to the Railroad Commission as well, which is what David and I were covering prior to you joining the show. So, tell us about the Alliance please.

Speaker 3: (14:39)
Sure. I look forward to chatting with both you and David about this. If you sat through every minute that, I’ve sat through pretty much every minute of it. I’m guessing David did too, and probably read all the testimony as well. And I’ve talked to any number of other people about this issue. Texas Alliance of Energy Producers is an oil and gas trade association in Texas that represents the oil and gas exploration and production industry, what we would refer to as the upstream oil and gas sector of the business. And so it’s oil and gas operators and producers, drilling companies, service companies, and then of course all of the businesses that do business with any of those companies. And we number about 2,600 in terms of membership. We are the largest statewide association out there. Our membership profile has all sizes of companies; all kind of operators and service companies and drilling companies have different profiles and sizes. We represent very, very small to the very, very large as members, but primarily what we do is represent the independent oil and gas producer and the smaller independent oil and gas producer in particular. And so there’s a lot to be said about us, and a lot I think to be awfully proud of in terms of what the Alliance does, but that’s kind of who we are and what we do.

Speaker 1: (16:08)
Well, now that you have said that, I listened to the testimony of the Railroad Commission that a whole day, and there were a lot of speakers. It was a lot of people that wanted to be heard or companies that wanted to be heard. And, David and I did a show last week, and I guess I just want to get your opinion – and, David, jump in here too – so the Alliance was against the Railroad Commission getting involved in any kind of proration. But then you had a company like Continental Resources, one of the largest independents, not drilling in Texas, but very, very well respected and been to the White House the week before with some of the major oil and gas executives. And just as an outsider looking in, I’m just curious to understand some points of view from the associations because both associations, both your association, actually TIPRO, and then a tech SOGA were all opposed to the Railroad Commission, and that was kind of unusual in the sense of why are the associations against it versus some of the independents that are pretty large here in the state of Texas.

Speaker 1: (17:32)
Why were they recommending it? And I’m assuming it all comes down to the economics of it, but at the same time, you all must have been in a very hard spot because you’re not going please everybody.

Speaker 3: (17:51)
I a spot the commission finds themselves in as well. And what I certainly took note of over the course of that day is that you’d have one profile of company on one side and the same profile a company on the other side. There’s small independents favored it and small independents that did not. You had larger publicly traded independents, certainly the two that filed the petition favored it. Most of the other large publicly traded independents that weighed in were opposed to it.

Speaker 1: (18:22)
Let me remind you, Diamondback said, if they jump into this and get involved, they were going to stop all their drilling in Texas, which is a highly unusual. I think you had to thread that needle very, very carefully if you are an association and really look at why following your mission was this important for you to come in and decide one way or another. When we get back from break, we do have a caller waiting on the line. So when we get back from break, we’ll be picking up with Joe out of the Woodlands. You’re listening to In the Oil Patch radio show, and we’ll be right back

Speaker 1: (19:01)
And we’re back. You’re listening to In the Oil Patch radio show. Our guest today is Karr Ingham, the CEO of the Texas Alliance of Energy Producers and David Blackmon, the editor of SHALE Magazine. Guys, before the break, we had quite a bit of discussion on the Texas Railroad Commission, and it’s hearing that they had last week. And I do want to get back to it, but we have callers that have been waiting, and I want to try to get to them, too. So let’s bring on Joe from the Woodlands, a very avid friend and listener to the show. Joe, are you there?

Speaker 4: (19:38)
Sure, I’m here. Hi Kym. Hi everybody.

Speaker 1: (19:41)
How are you?

Speaker 4: (19:44)
Fine. Yeah, my question is on the issue of why those infamous 98% of scientists, including their doners and politicians, were so concerned that global warming was going to drown us all in 10 years. Yet they completely dropped the ball and ignored a pandemic and ended up destroying a lot more. You know, they had warnings from SARS, H1N, each one getting a lot worse. And I’ve even been looking through a few scientific articles on this subject, and I’m serious. It’s a hot mess of incompetence. Maybe those 98% of scientists are more interested in the, I guess, carbon tax pay-for-play money than doing legitimate research. What do y’all think?

Speaker 1: (20:28)
That’s a good question, Joe.

Speaker 2: (20:31)
There’s been a cottage industry that popped up about 15 to 20 years ago when the federal government began handing out grants to any scientist who would conduct a study that helped them prove their global warming theory. There’s no doubt about that. And there’s also no doubt that has taken away resources from other funding for other scientific studies including these kinds of viruses. And to me, the irony of this whole situation is that as we have shut down our economy and taken all the traffic off the streets and put everybody out of work, the environmentalist’s are getting the America that they envisioned for the future through the green new deal. Folks, you need to take a look around you right now because this is what America will look like if the Green New Deal ever becomes law. Cars will be off the road, no flying, no tourist industry. Yeah, carbon emissions will be down, but we’ll have no economy, no economic growth. And it’ll be a pretty bleak situation. So that’s, I guess my answer on this particular question. Karr, I throw it to you.

Speaker 3: (21:48)
I wish I had a better answer than that one. Bingo, and amen, brother. This is what I, I presume you know that the environmental community wants our economy to look like and our nation to look like. And then I wonder at times if those who kind of go along with this don’t believe that we can actually have both, that we can do away with oil and gas or with the crude oil and natural gas that literally power our economy and still have things be the way they know them to be with all the conveniences of life that they have at their disposal.

Speaker 3: (22:29)
The answer to that question is, no, you can’t have it both ways. And, nevermind the fact that the science, as Joe referred to it, is politicized. And so it becomes not science at all at that point. And I assume you’ve done a little digging into this 97, 98% number. That’s a farce. Everybody knows it. It’s not like they polled and what is the scientist anyway? But anyway, that’s 97% of a small group of people that kind of fit their purposes. Anybody who’s done research on that knows that number is a joke. And so, that’s a meaningless thing to me anyway. But when you politicize things that ought not to be politicized, such as science and economics. It happens all the time. Then you end up with this sort of situation, these sorts of arguments where people claim that whoever it is that supports them speaks the truth and nobody else does.

Speaker 1: (23:35)
Or they shut you down because of it. You know, I do want to come back from break and talk about the railroad commission because there was testimony from some of the Sierra club and “keep it in the ground” movements, and they had a good point pertaining to their position. I’m not saying I support it; I’m just saying they had a good position of how to curtail flaring, at least. And I want to get your all’s opinion on that too. You’re listening to In the Oil Patch radio show, and we’ll be right back. We’re back. You’re listening to In the Oil Patch radio show. Our guest today is David Blackmon, the editor of SHALE Magazine and Karr Ingham who is the CEO of the Texas Alliance of Energy Producers, a in great association. If you’d like to also join in and talk to us all questions oil and gas we are looking for. Call (210)308-8867. Again, that’s (210)308-8867. Gentlemen, before the break Joe from the Woodlands called in and was inquiring about the scientific data that really supports oil and gas or lack of it.

Speaker 1: (24:43)
And, the hearing that came out last week of the Texas Railroad Commission, they let anyone who wanted to speak speak, and there were quite a few organizations that really don’t support the oil and gas industry and big fossil fuel. I want to get your all’s thoughts on that. So, obviously, they had a discussion on could there be a way of curtailing some of the natural gas flaring by reducing it, and they wanted the Railroad Commission to get involved in that. So Karr, I’ll give it to you first. Tell me your thoughts on how valid their points were, and do you think it goes anywhere?

Speaker 3: (25:28)
Well, I was struck by the difference between the natural gas issue and the crude oil issue in terms of proration and limiting production. Most of the folks who were in favor of proration probably do so because they want to pull back on production, and by reducing supply, raise the price. Whether they’re right about that or wrong about that, that’s probably what the majority of them had in mind. And those that had another thought in mind, you know, kind of had to do with spreading the pain somewhat equally across the across the production sector. But in the code, in the Texas natural resources code, the authority for the Railroad Commission to implement proration is based on the concept of waste. That’s not a well-defined concept. And what most of us considered to be waste is something that is kind of frittered away and lost to future consumption, to future use.

Speaker 3: (26:38)
That doesn’t really apply to crude oil necessarily in this set of circumstances. And people were talking about this term called economic waste, which again is not very clearly defined, and economics are not really a concept such as economic waste. There is in law, but not so much in economics. And those who were talking about economic waste were just talking about selling a product that they believe to be of higher value than the market is currently fetching. While I don’t disagree with that notion; it is, but hopefully it’s temporary. And we often find ourselves with oil and gas prices kind of reflecting an out of balance supply and demand scenario. But that’s the purpose of markets, to bring those two things back into line with one another. But when you’re talking about natural gas, and you’re talking about flaring massive volumes of natural gas in Texas, in the Permian, well that’s true waste.

Speaker 3: (27:27)
And that product is lost to future use. And at the same time, they certainly make the point, and it’s a hard point to argue that there is at least some environmental consequences to doing this. But in my testimony I did suggest forthrightly verbally that I was curious if the Railroad Commission won’t talk about proration for crude oil right now, I’m curious why? No such assessment of market demand and no request to implement proration is taking place in natural gas because that’s the poster child for number one, a commodity that’s selling below its value if you simply take natural gas in and of its own market. And number two, a poster child for commodity that truly is wasted with flaring volumes, and nevermind the fact that natural gas is operating outside of the market for natural gas, it’s controlled by the crude oil markets. And its production growth is accidental based on crude oil production. So, I don’t ascribe anything but in the nefarious motives for the most part to the environmental community. It’s worth noting that they were all in favor of proration. Right. But it’s hard to argue the concept of that flared natural gas is indeed wasted. And it’s time to take a look at this.

Speaker 1: (28:51)
Very interesting. David, do you have an opinion here?

Speaker 2: (28:54)
Well, I think Karr hits exactly the right point at several points. They’re all great points. The one one that I didn’t think to mention when we talked earlier this week is the point about natural gas. Natural gas has been in a chronic oversupplied situation in the United States for a decade now. I mean, every year the oversupply becomes worse and worse. Even with all the new investment in chemical plants, we use natural gas as feed stock. And even with natural gas taking a much larger share of power generation, we just keep producing so much more of it. So, I mean, that’s a really strong point to the railroad commission. And on the flaring issue, I do think, frankly, that EDF in particular made a valid point related to the potential for using this concept to reduce flaring. But the other side of that is we’re losing so much production out in the Permian basin right now just to operators shutting in oil wells. You’re going to see the flaring issue virtually disappear in the Permian B11asin this year.

Speaker 1: (30:01)
So maybe a lot of it is moving-

Speaker 2: (30:02)
It’s not going to be a real hot topic of conversation in three or four months from today.

Speaker 1: (30:06)
So most of it is going to be moot. I do want to try to get on to two things. This will be our last segment coming up from break – the continuing prices or lack of the market reacting or lack of reacting to the OPEC plus announcement. And then, of course, the oil price bust. But I do have a gentleman on the line, Clint, San Antonio. Clint, are you there? What’s your question?

Speaker 5: (30:35)
Yes. Uh, my question is, I haven’t had a call from any of the oil fields for over a month, and we’re servicing. I was just wondering, how long do you think this will last?

Speaker 1: (30:49)
Well, let me tell you, I’ve heard quite a few people talking and asking our on our social media platforms, what is going on. It just seems to have fallen off a cliff. And is this the new norm? When we come back from break Karr and David, please weigh in on this, but I think that we’re really starting to see a dropoff in the energy industry. You’re listening to In the Oil Patch radio show, and we’ll be right back

Speaker 1: (31:15)
And we’re back. You’re listening to In the Oil Patch radio show. Our guest, Karr Ingham, the President of the Texas Alliance of Energy Producers and David Blackmon, editor of SHALE Magazine. Gentlemen, before the break our caller, Clint, asked a question, and I know it might’ve been a little hard to hear him, but he was curious. He said he had not had a call from any of the oil fields, I’m assuming the service companies or operators, in about a month. His question is, is this the new norm? When can he expect his phones to start ringing again? And believe it or not, I do get a lot of these questions. What is going on in the energy industry? I mean it’s just completely fallen off. Is this the new norm? You guys are both kind of experts in this field, so I’ll let you guys both tell me what you think and answer Clint’s question.

Speaker 2: (32:10)
It’s the new norm at least for the time being. Hopefully it won’t last too long, but the rig count is dramatically falling off. Oil field service industry is idling a lot of trucks and rigs and crews, and with any luck, we’ll start putting this economy back to work. Governor Abbott’s had a press conference on Friday talking about the initial steps he’s taking to move Texas back to work. The President talked on Thursday about his plans, and as the economy comes back, hopefully they oil field will come back as well. But I’ll let Karr take it from there.

Speaker 1: (32:44)
Yes, Karr.

Speaker 3: (32:46)
That’s just it. In terms of long term, this is not the new norm. I’m convinced of this, and I’m confident of this.

Speaker 1: (32:54)
So, oil’s going to bounce back pretty quickly?

Speaker 3: (32:58)
Well, it’s going to bounce back at some point, and it depends on when the economy kind of comes back to life, how long it takes to get on the other side of the coronavirus. But when it does and people begin to return to work again, to return to play, begin to travel, begin to live normal lives again. That pushes energy demand, ultimately crude oil demand, back too. Hopefully, at some point in the not too distant future to where it was, and that raises prices and by the way. It may raise prices pretty quickly. We’re just idling a lot of production capacity right now. So there may be just this kind of intersection of the upward sloping demand curve and a downward sloping supply curve. It may just yank prices back up pretty sharply in a not too distant future point. Whatever we say right now, we tend to look at that as a static situation that’s going last forever. Markets are self-correcting. This is going to ultimately resolve. But this is a sharp reduction in demand almost overnight relative to what supply was at that time. No doubt about the fact that prices were going to crater and take activity levels down with this. But this is not going to last forever.

Speaker 1: (34:15)
And let’s switch gears a little bit and talk about OPEC+. They made the announcement to the cuts, and it really had no impact.

Speaker 3: (34:26)
I’m not sure that’s true. I want to make sure we have the proper perspective of this. How many people said, probably everyone, that the Saudis, the Russians, OPEC, they all need to be a part of the supply management picture; they need to be a big part of the supply solution. Then what did they say after that? The United States needs to be a big part of that supply solution, as well. When lots of people say that they mean that government needs to legislate this into being somehow or other, but that’s not how that works in the United States. The United States becomes a part of the supply solution when prices are lower than they were and certainly low relative to current demand that pushes activity levels down and causes production to decline. And that is what we’re witnessing right now. And so, it makes perfect sense to me that prices didn’t have a strong response to OPEC and OPEC plus. And the reason they didn’t is because they can’t pull enough production off the marketplace to yank supply down to the level of current demand, which is low. And so, the market is still trying to push production downward. And what that means is trying to push production downward in the United States, and it’s going to get the job done.

Speaker 1: (35:50)
Excellent. Well, so there was discussion that OPEC plus needs, and you mentioned it earlier, United States intervention here, too. In your thought it’s just not going to happen. Let the market take care of itself. Do you guys both agree with that?

Speaker 2: (36:11)
I think the market will take care of itself. As Karr just pointed out, particularly if there’s strong compliance with the OPEC plus agreement, they’re talking about taking 10 million barrels a day off the market. We’re going to lose two to 4 million barrels a day in the United States once we get past April and all these economies start cranking back up. The demand for crude oil is going recover fairly quickly in the supply and demand curve. We’re going to cross sometime towards the end of the third quarter, and then as Karr said, you could have a very sharp spike upwards in crude prices at that point.

Speaker 1: (36:53)
Interesting.

Speaker 3: (36:54)
Meanwhile, we’d like to keep oil and gas operators around until then. And so I hope these federal plans for relief, not just oil and gas, but to all industries are successful. If any of us had a great solution to this, me, David, you legislature, the administration, the Railroad Commission, somebody would’ve put that plan in place right now. I think the job at this point is to try to keep people afloat and bridge this gap until the market starts to normalize again. We’re focused, in large part, on that very thing. And that’s one of the things we’ve certainly encouraged the administration to do along with getting some work with OPEC and OPEC plus. And my goodness, thank goodness for the Trump administration and for these people coming to their senses, and they got that job done.

Speaker 1: (37:52)
Very good. Well, Karr and David, that’s all the time we have for this show. I do want to thank you for joining us today, but also, it’s so important that when we talk about oil and gas, because there’s such uncertainty, and the average consumer has struggled so much to understand what is going on and how it affects their daily lives. And so, as we’ve had callers come in today, I’m not used to this. Is this the new norm? It’s kind of important. You guys are breaking it down for us to understand. Because outside of this show I just don’t really know where the average Joe goes and gets oil and gas questions answered in a way they can understand because it’s a highly complicated technical field. But I do want to thank you for being a guest today, and we look forward to having you guys back again in a month when we do our live show. Once again.

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