IBM, Jim Hello Jason, Don Hey Brian discussed on Oil and Gas This Week Podcast

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Complete control. Hey good afternoon from whiskey cake in. Houston this jason here from ibm so guys. I think these blocks forgot who pay the bills frontier. We've taken over just for this week unless we really do a bad job by be back again. So hey guys. I brought a higgins. So did they brought six t members with me from ibm discordant through sunday. The door run the table of afternoon. The jerry hey jay. How're you doing. Good jim hello jason. Hello don hey brian. Hey jas to whiskey. Neil going man debate like me. That i'm tracy adoption expo. Hello hello hello. How's everyone doing today. Whiskey cake chew softly cubby bada. I got a big burger my belly. You've got a big valley okay. An old fashioned on the brain washing the brain whiskey that anyone forget what actually had to do a podcast. Let's right one hundred percent. That's today so listen. Let's get into the to actually before we get into the news. This is the ibm team would all based in houston as maybe some people. Strange accents right. Brian. that's right and i'm not one of them. That's for sure. I think you all the way to budapest bucharest. It really depends on where you're from jas because you know if you've really from texas it doesn't really matter so what we've done this weakest. We've taken over from page and mark and we thought we'd give it a bit of an it. Ibm see where we go. It's all guys. Why don't we hit the news to kick off the big stories. The biggest foreign hostility. The shale pyramids the sail off. Shell to the pair. Men to conoco phillips. That's a surprise. So you being the shell the shell it. Okay upon and for me. That's the biggest one. I think we can agree. That's maybe the biggest. This just came out yesterday the game yesterday. So it's a big old deal. Nine point five billion. The personalities clinical phillips. It's what's so fascinating about it is. It's just all the undertones of the politics behind it talk about the carbon emission reduction agenda that shale is pushing the moment for for reasons that are legal as well as say they're gonna push and so the real interesting thing is here whether this will be trained for shale only for shale mvp for shale everyone else but at the moment what we're seeing is a beffa strange little mix here the way this was released. That was pretty funny because they were talking about the fact that shale claim that they were selling a good price giving money back to the shareholders. Too it's good for shareholders. Seven billion of fat was going back to shareholders and allows them to meet their carbon credits. The targets have been set by the the netherlands government on the flipside. Conaco phillips argued. This was great for shareholders. Cerebal to give money back and able to meet the baby. So i called me. They were also just say that they were able to raise their emission. Reduction targets right. So how much of this is sue. Difficult to unpick the amount of spin going on here because it seems to be a little bit unusual having said that on it i understand why book companies have done. What they've done. It makes perfect saints so hang out. Let's pick up on that trade with the congressional meetings coming up and all the ceos of the super majors been called in front of congress in october. It might not just be definitely. I think this could be something that we see throughout everywhere right and does that mean that we start to see a degradation of some of the volume of some of these high carbon emissions assets because green needs to be the way people need to go. Are they going to find different ways to meet those targets. Whatever targets are set by the values start to degrade as you point out. Neil then perhaps companies like chevron that are sitting on a pile of cash not investing right. Now we're going to wait back in the wings and make some purchases on the come on. What do you think jim. Yeah well interesting point on that. Jerry is just this week. Sharman announced their significantly increasing their budget around sustainability. Ten billion dollars to twenty twenty-eight really focusing on three areas renewable fuels hydrogen production finally carbon capture yourself fair amount of money flowing in from that angle. Jim did they talk at all about partnering with exxon with the carbon capture hub. They've got going in houston which meant to capture one hundred million tons per co two. Which is i don't know they've got like five thousand years capacity and that the storage vault they're building and it will the store something like one hundred and thirty two years of us emissions over the history of the country. Just there any partnership plans. You think they're on the carbon capture it off to thanks so given the size of that one just said when you if they are. They haven't told me. What's your view of conaco buying. Shell any any views of surprise surprise in the upstream estimate you know upstream to me. i think. basically if we look at all the independence and how they've produced in commun- full ten fifteen years they've always had been approached going about this than the super majors. Try to capitalize on that coming in. But they haven't quite gotten formula right because of all the overhead so makes perfect sense to me true. There's a win win for both going to say i. I was just going to say you know. The industry's obviously get an infinitely complex right where these companies are having to diversify themselves into into sustainable or green solutions. But i think at the same time. We're seeing a lot of consolidation and specialization. Right because of volatility volatility of energy prices. You really need to be good at what you're at. I think if you're still in the fossil fuel space. And i think we're seeing a lot of these. We're gonna see a lot of these. Us land assets consolidate insert to be run more factory. Like you know may a lot more censored a lot more integrated from an operational perspective. Because it's going to be about scale and margin and a ton of margin preempt. It is a good point. Brad because the more of the it was that brad. I'm sorry people the accent. Excuse me sorry bryan. Bryan woodward their lead account part of her slumber j. You guys could see the difference between brad and brian well. It was a good point on the scale out especially around data. Because there's a lot more federation possible if you start aggregating those assets and if you can bring all that data together you can do a little bit better. Forecasting a little bit better drawdown of you know the capacities wells and i think there was another article about the centralization of some of the equipment and software that baker was doing with lit is lit or light. I don't know how to pronounce it. A. l. y. Tt which if you think about. It enable much better use of the data. You're getting out of the out of the wellborn reservoirs. And then if you don't have that people inside of that you can save a lot of money. So that kind of scale becomes a lot more. We consolidate his assets. Yeah for sure. And i think obviously the subsurface digital play has been mature. You know operating environment for for years but i think. Now it's all about you know. How do you increase production. And how do you optimize your assets and you know. Obviously i support summer on this team and you know starting what year and a half two years ago you know the the all the whole push inside is digital and how you digitally enable a sensor driven field an integrated operations and better efficiency and better intelligence on i mean. I think we're getting to the point. This industry where we're we're literally got. You're you're gonna start to see these guys running like very lean factory operations because you cannot survive in the market anymore now under under.

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