Colorado, Koga, Asia discussed on #hottakeoftheday
And that got us into some trouble and so we really had to learn how what it means to go out and be an active part of our communities to have conversations with people in neighborhoods to say. We're going to develop here. Here's what it's going to look like. Here's what it's going to sound like. Here's what it might smell like. You smell anything. Give us a call. Here's the number to call all of those things and then explain why it's important why it's good for our communities and our state and our country. We never did that and when we weren't doing that we created a vacuum that these folks without a state money came in and filled and scared people and told them that you're going to get a buddy knows. Your kids are going to get sick all of those things. We're still battling Gaslan from from twenty ten right and didn't respond well when that came out very flat footed right. So we're we're still figuring all of those things out figuring out a trade association figuring them out as companies but one of the things that I think I've really seen in those five years again. We don't even talk about the social license to operate we understand it and as I said earlier everybody understanding that we have to operate at a very high level. And I think that's what hopefully will begin spreading if not already to other states to understand that if you if you don't have to flare you don't flare That you really address these issues. Now we've got to. I mean the world is changing. It's changing quickly. We have to change with it. We have to learn to talk about climate change. And how we're GONNA talk about climate change and what our industry is doing to reduce those emissions to make sure that those greenhouse gas emission aren't going up into the atmosphere. We have to talk about that. We'RE GONNA lose entire generations of Americans. Does Koga have a a platform or a position on climate change? We do. It's on it's on our website. It's about a page and a it's more of a statement than anything that says that we acknowledge that the climate is changing. We acknowledged that this is something that governments and people should be debating and we feel like for the long foreseeable future. You're going to need oil. You'RE GONNA need natural gas. You've got more than a billion people on the planet that don't have access to electricity that deserve and need to have access to affordable reliable and efficient energy. That's GONNA come from natural gas. We are a part of the solution but we need to be able to be as clean as possible as safe as possible and reduce our emissions. So we're not part of the problem. Where part of the solution and we need we need to be invited into the con-. The greater conversation I think sometimes it appears or seems that will and gas is excluded from the options that are conceived for our future energy supply. And that's just not. It's not a responsible approach. Well and this. This is a good pivot to to what? Bp's recently announced and again. I know you're trade associations I'm not going to ask you specifically comment on one of your members or not members but an industry company but they've come on said twenty-fifty They WanNa be net emission net carbon neutral and as part of that. They released a whitepaper last week where they looked at all the trade associations they were sponsoring and they came up with a non aligned partially aligned fully aligned and what shocked me was aided they wrote a position paper on it and published it shows sort of how ESPN has come to the forefront but but secondarily how many trade associations there are and so we try and think about the consistency of one voice or the lessons we learned in the peons that we can apply. Call two to one Brookefield but then we have New Mexico and then we have arguably California Texas Oklahoma. What kind of formal or informal things can trade associations doing are we gonNA see consolidations to sort of like the voice of energy or or something as we move forward similar Lewis? We're going to see on these large scale. Operators Kinda coming together. What was the response to that as what we need to do? So we can tell you a little bit about the Lou short history in Colorado Kogas been around since eighty four The Colorado Petroleum Association was around even longer than that and way. Back in the day The two organizations signed a memorandum of understanding. Kind of breaking out our duties of what we would focus on years later by the time I got here different leadership. Cpa. We didn't even realize that you had been signed but we were still following it and largely doing the same things. So I think those types of things are important to understand so again knowing that resources are limited and we need to be very mindful of the dollars that we're spending we're not duplicating resources trade associations that we're not stepping on each other's toes that were communicating collaborating and coordinating wherever possible. We do that very well here in Denver About three maybe four or five years ago. Api started to branch here was called Qatar Petroleum Council now called API Colorado. We work with them all the time. We have joint calls different working groups that we do jointly to make sure that we're aligned if possible But sometimes it's okay if you're not aligned In in different companies have different voices. And you can kind of work through those issues. But it's important that you're having those conversations. We owe it to our members especially those who are members of Multiple Trade Association. That we're having this conversation not duplicating our efforts and really working well together to be more efficient on behalf of of this industry. I don't think I could add anything to that. I think that was a very well. Say there's a lot of different interests you know. One of their organization would be the Western Energy Alliance relief concentrating on. Who if I recall correctly if I recall correctly actually cut them Western energy lines? I don't know about that but I think that dance point that different trade associations have different objectives. I think as long as we're all communicating and talking together we can coordinate it in effective ways so if you could wave a magic wand or you know just repeat one of the mandates in terms of the greater good of all of our of the members of Koga May wave your magic wand and implement one regulation that would make our industry better and I know that a lot of people would say anti regulation and we can talk about that but but if if you could wave your one in have one thing we talked about a regulated better but but it would also buy you freedom on the others is there is there one can can you. It's a hard one. I know I'm kind of boxing. On that question. I will use my example and maybe you can feedback so I think that flaring is a very visible issue it is. It is a scar on the landscape at night. Which makes it even more so and it's very easy to point to a lack of planning people. Say Well I don't have access to the midstream pipe and it's full and it won't be built for seven months but I really want my oil so for I fractured and I'll just flare it. Because no economic incentive to to do something with the gas so if I were to wave my magic wand for the industry I would have the industry come forward and regulate out flaring like other than emergency upsets with a twenty four hour time period. Or something I would ban flaring now in exchange I would like the conversation around fracking totally stop because I think the fracking is essential for what we're doing as a country but Dow would be my example of an issue where industries should be regulating itself. And because there's an economic disinterest we have to be the ones to regulate it because no one is incentive to do something about it. That's that's my and I understand that. I think you're asking probably the wrong people in that. Every single aspect of this industry has been under the regulatory microscope. Either in the last ten years or currently as we undergo this entire rulemaking process for Senate bill one eighty one so I feel like so. Many of these issues have been addressed here. Right started with groundwater monitoring we increase setbacks. We increase school setbacks. We did hydraulic fracturing disclosure. We did the first methane rules in the country. We're doing alternative site analysis. We'RE LOOKING AT CUMULATIVE IMPACTS. All of these things are happening. Now we just did another air rulemaking. We're going to do well bore integrity coming up so we have hit every single APP. Every single aspect of this industry has been under the the regulatory microscope in Colorado. That is that is actually a great. And also the scariest point to me of the whole thing. Is that if we have been doing all of the things and responding in every single way and we've just never been able to pivot the narrative that this isn't about wind or gas solar or oil. It's an and conversation and and we've never been able to advance that and conversation but we have to show. Is that for the foreseeable future? You need oil and natural gas. We all know that we need to show to who you're getting. We should all know it and we should know that to make renewables. You need oil and natural gas to to do that. We need to show that these are the cleanest molecules in the world. That you care about the environment you want oil and gas developed here in Colorado you want it developed in the United States where we have standards where we have regulations where we about the environment. If we're going to need this product you want it developed here. This is good for the environment and it's good for our country and I know I get I get passionate about it because it. It drives me crazy that we're having these conversations we've done it we've been through these regulations here in Colorado so of your opposed to this now after all of these regulations you're opposed oil and gas. You want to keep the product in the ground they can. I had the APP. Is I want to ask you this question. What do you think is is safer or more environmentally responsible when choosing between two options option as developing our oil and natural gas responsibly? Cleanly to really. What is a gold standard here in our own backyard employing coloradans protecting our economic security but also national security or turning everything to battery storage and renewables and thinking of the fact that when you were going to produce a one thousand pound you have to mind five hundred thousand pounds of raw material somewhere around this world. Lots of times in countries with Labor conditions. That are not of a high standard and environmental rules and regulations that are not a high standard and then ship that raw material back and forth across the oceans until you finally get to a battery. That's here in Colorado. Which do you think is better for the environment I mean and that's the crazy thing is is it's so obvious and the frustration. And really what I think. The heartache of the day is starting to do is you know you guys are in a position as our industry leaders as heads of public companies. He can't really come out and engage in a big debate. Because I know like on twitter I say one thing and I get eighty people coming out of the Woodwork. And say whatever they want to say. But you're absolutely right. There is not a realization of the the level of importance to our economy and the cleanliness of the molecules that were producing and that people are are blind to the fact that we're offshoring are pollution. I'll even use just the most basic example. Seventy four percent coal fired. Electricity generation in the world is in Asia. Asia is where we have offloaded all of our manufacturing process so that we can have goods for cheaper here because they don't have the same labor cost over there and so Americans are actually creating the c o two that is far worse over in China and yet it's to me. It's so obvious which again pulls me back to the first question that I asked you guys. Which was we've done everything we've communicated everything we've played nice and we've tried to be emotional. Tried to do white papers. We've tried to keep the moral high ground. We've never just shut off oil and gas for twenty four hours and I'm not advocating that you that you do this but I'm just you know to everyone in the industry tarred to mobilize people to come down from wherever that support our industry that's why we have these small rallies whereas the anti rallies seemed to be more fun to go.