13 Episode results for "API Energy Houston"
Oil & Gas + Coronavirus on Permian Perspective PP040
"The Permian Basin is an abundant oil and gas producing area already one of the world's leading oil producing regions the area in West Texas and southeastern New Mexico could nearly double crude oil production by the year. Twenty twenty three but who are the leaders behind this economic powerhouse and what is their story. This is permian perspective. I'm your host Krista. A skinny today show is sponsored by Baker Hughes who recently launched a new and reimagined Baker Hughes Brand has an Energy Technology Company. They strive to make energy safer cleaner and more efficient for the people and the planet. Hello everyone welcome to this special edition of Permian perspective. I'm Krista as skinny. Thank you so much for sharing your time with us today. I really appreciate it and I also want to let you know. This is a special edition. I will be visiting with you alone today. I just thought with everything that is going on in the world right now that we could just spend this time talking about what's happening what's happening in the Permian and share what's on my heart so I just WanNa say thank you for being here and it's been almost a year since I ran my first Permian Perspective podcast and what a ride. It has been a short year ago. The Permian was challenged with growth pains housing schools traffic and healthcare and those were the issues that were at the forefront of our community today we are faced with a whole new set of challenges that were sparked by the corona virus which is now a global pandemic as you know and now more than ever we must be permian strong. I know that it has been an emotional week for many of you as stressful. I completely understand. I know I have been right there with you. Every step of the way worried about my kids. My husband my family. My parents my in laws. My brother a the list goes on and I understand what you're going through. I know the developments around the coveted nineteen has really intensified here with school closings and colleges finishing up the semester online the NBA suspending play. The remainder of their season March madness cancelled Disneyland. That's right the happiest place on earth has closed their theme park in California and President trump restricting travel from nearly all of Europe to the United States also this week the World Health Organization who declared the corona virus at pandemic. So I wanted to catch you up a little bit on. What's happening here in the basin with some of the news and events that we have seen here locally so that I could share that with you if you are listening around the World Pioneer Natural Resources Chief Executive Scott Sheffield told The Washington Post this week that the company is preparing for two years of low prices and will make the necessary adjustments to maintain our great balance-sheet Sheffield also told the Post that pioneer is secure. But there will be. Many bankruptcies are industries and tens of thousands of layoffs over the next twelve months also according according to the Midland reporter telegram earlier this week diamondback reported it was immediately reducing its completion crew count from nine to six and will lay down to drilling rigs in April and a third rig later in the quarter this week according to CBS seven news Apache says it will reduce its permian rig. Count Two zero over the coming weeks and plans to lower activity in Egypt in the North Sea. According to seeking out the DOT com it also announced plans to cut twenty twenty capital spending to one billion to one point two billion which is actually down from one point six billion to one point nine billion a thirty seven percent. Drop at the midpoint now. The company says it has ample liquidity throughout its fourbillion dollars undrawn revolver and flexibility to manage the nine hundred and thirty seven million dollars of bonds maturing between twenty twenty one and January of two thousand twenty three. Those are just a couple of the interesting stories. I wanted to share with you coming out of the business world. Of course we will be hearing more over the next couple of weeks and I will definitely do another follow up on what's happening businesswise here. In the basin of course we also have the University of Texas Permian Basin that is a wonderful education facility here in Odessa. Texas and they are continuing to track the rapidly evolving Kovic nineteen virus. As of right now there are no reported are known cases in the Midland. Odessa area. Now you TB is extending their spring break and hold no face to face classes from March sixteenth to the twentieth. That is what they have just announced. They will not cancel current online classes. That are in progress now during this time. Utd Faculty and staff will begin the process of preparing for a possible transition to online classes. If it's needed sometime in the future however the university will remain open during the spring semester. Of course all of this information is unfolding and by the time you listen to this podcast at will have changed even more but I hope that I can bring a little bit of hope to you during this time. What it all boils down to is uncertainty when we are uncertain about what the future holds. It is easy to become fearful right. Just go to the grocery store you can see the toilet papers out here locally also water and of course hand sanitizer but I wanNA remind you something that. My husband reminded me of today. He said do not. Fear is in the Bible three hundred sixty five times one for each day of the year. If there's one thing I know about all of the leaders of the companies I mentioned above and those leading in the Permian is they are fearless so as this may be Challenging Week. I referred to one of my favorite quotes. You know how I love quotes right. Well this is a good one. Remember this story to will run out of rain. Yes this too shall pass and so to all my friends in the Permian. We will prevail and be better and stronger. I wish you and your families a healthy week please be safe and I look forward to seeing you all soon. Thank so much for joining us. This concludes this special edition of Permian perspective. The story behind the oil and gas leaders in the Permian Basin of course remember my favorite quotes on life. Matas dream big. Believe in yourself and never give up you make it a great day. Hey everybody Alex here. With the events on deck for the next month we have some exciting things coming up to happy hours one in Pittsburgh and one in Denver so the first one will be happening on March twenty second at Bubbas Gourmet Burgers and beer. This event won't be from forty seven and will feature a live recording of oil and gas this week with Jake Corley and Markel Corp so be sure to check that out. You can sign up our social. Media's we have bent bright sign up and should be good to go from there. The next event will be a happy hour in Denver at Liberty Oilfield Services on April second once again. Check our social media's for the event bright sign up and sign up there as some of our social media followers may know we are headed to Aberdeen Scotland. The first week of March in a couple of days actually for Doku con creating high impact sales and Energy Dokru is excited to launch. Its very first sales development conference and Jeans Mark and Patrick will be hosting a panel and recording alive podcasts. That we're really excited to be joining map. The leaders in industry luncheon is on March eleventh at the Petroleum Club of Houston. Port of the future is happening on March tenth and Eleventh in Houston your registration to the port of the future conference also allows you access to exclusive events including TSA security and terrorism research showcase and many more so be sure to view the agenda and see what they are offering the Houston energy. Breakfast will be on March twentieth at the Norris Conference Center in Houston the API Energy Houston three gun. Chapter will be on March Twentieth. This event is filling up very quickly so make sure to get a team in as soon as possible. The BP Energy Outlook Two thousand twenty edition will be on April twenty first. It's happening online. And this event is about transitions. That will take place to a low carbon energy system as offer this month. Everybody hope you guys have a good month and check back in next month to see what we're having thanked tune in next week for another episode of Permian Perspective a production of the oil and gas global network learn more at www dot org G. N. dot com.
Impacts of COVID-19 on Permian Perspective PP042
"The Permian Basin is an abundant oil and gas producing area already one of the world's leading oil producing regions the area in West Texas and southeastern New Mexico could nearly double crude oil production by the year. Twenty twenty three but who are the leaders behind this economic powerhouse and what is their story. This is permian perspective. I'm your host Krista as skinny today show a sponsored by Baker Hughes who recently launched a new and reimagined Baker Hughes Brand has an Energy Technology Company. They strive to make energy safer cleaner and more efficient for people in the planet. Hello everyone and thank you for joining us for the special edition of Permian perspective. It is so wonderful to be spending this time with all of you. I hope and pray that you and your family are doing well. During this difficult time I know many of you are likely working from home while listening. Or maybe you're out enjoying a walk. The weather has been absolutely beautiful here in West Texas little windy but were used to that but it has been really really nice so hopefully. You're taking advantage of that. I know we've seen a lot of people in our neighborhood out walking and it is such a joy to see families together spending that time so let us know what you're doing during this time if you're working from home or if you are going into the office on a limited schedule just let us know what is going on. We can stay connected through social media. I'm on facebook instagram. And of course on Lincoln so I would love to hear from all of you speaking of hearing from you. I heard a wonderful review from one of our listeners and I wanted to share it with all of you a special thank you to slide jumper for this five star review. Whoever you are slide jumper I want to thank you for these kind words. Here's what you had to say. The different perspectives that make up the Permian Basin all one podcast with a great interviewer and facilitator of conversation. If you live West Texas you should have this on your list. Very very kind. Thank you. So much jumpers for those kind words I really appreciate it and if you would like to leave a five star review please feel free to do. So you can head over to itunes or Google play or you can just shoot us an email and let us know your thoughts on in perspective. We appreciate all of you so much for listening so this week. I wanted to catch you up on the very latest on what is happening here. In the Permian Basin due to the COVE NINETEEN CORONA VIRUS. As you know we are all affected by the pandemic the economy across the nation. And of course right here in the epicenter of oil and gas is taking a big financial hit so I wanted to begin with where oil is trading at an remember this as at recording time of this podcast. Wti is at twenty dollars and fourteen cents. A barrel. Now rig counts dropped dramatically last week. According to the weekly count from Baker Hughes the impact of cuts layoffs are starting to show more than half the weeks losses came here in the Permian Basin which lost twenty three rigs for account of three hundred eighty two now the US rig count dropped forty four to seven twenty eight. It was the largest single week. Drop since the bottom of last oil downturn according to the Houston Chronicle New Mexico the only other producing state with the triple digit recount lost three rigs down to one. Oh nine in other news. Pioneer Natural Resources. Ceo Scott Sheffield spoke to CNBC. Recently and said the current price downturn reminds him of nineteen eighty six and opposition to a settlement with the Saudis from companies like Exxon Mobil threaten the future existence of independent companies. He went on to say that it will take a long time to the market and the next on is an example of the oil industry. Heavyweights that WANNA see all independence. Go bankrupt and then pick up the scraps. He also predicted there will only be ten out of the seventy four independence left at the end of twenty twenty one that will have decent balance sheets once again. Those were the words. Scott Sheffield the CEO of Pioneer Natural Resources recently on CNBC and the layoffs continued. Hit our area hard pro. Petro notified the state Friday at plans to lay off three hundred eighty eight employees in its hydraulic fracturing division according to the Houston Chronicle slumber j. The Largest Oilfield Service Company in the world plans to cut up to thirty percent from its budget as oil prices continue to drop and cove nineteen cases rise. The company also expects to lay off workers and reduce compensation in North America Shumba. Jai Joins Chevron and numerous other companies in the energy industry who are cutting billions of dollars in response to the falling oil prices Kirk Edwards. Who is an odessa-based independent oil and gas producer wrote a letter to President trump that was printed in our local paper? The Odessa American in it he says the following to President trump quote. I asked President trump to immediately place. They've forty dollars per barrel tariff on Saudi oil coming into the United States. I ask you to quit defending Saudi Arabia with our troops and aircraft carriers and start defending your most critical domestic industry. The one that keeps US country moving with affordable gasoline and electricity the forty dollar TARIFF IS THE DIFFERENCE IN PRICE. American energy producers. Were getting just two months ago versus the twenty dollar per barrel that we are getting this week that tariff would generate nearly one point two five billion dollars per month to the US government. The government can direct that revenue back to the oil producing states like Texas Louisiana New Mexico and Oklahoma in an effort to help those states. That are being massively impaired by the current dumping on Saudi Arabia filling the Strategic Petroleum Reserve. Twenty dollar oil does nothing for the American energy producer. We need jobs and we need a price. We can economically drill for and twenty dollars per barrel. Certainly. Isn't it end quote once again that was from Kirk Edwards who is an odessa-based independent oil and gas producer? Writing a letter to president trump. That was permitted in our local paper. The Odessa American in Other News Governor Greg Abbott Expanded Quarantine Orders for travelers heading into Texas on Sunday any air traveler entering Texas from Miami Atlanta Detroit Chicago and the states of California in Washington must self quarantine for fourteen days at it said his original order which included air travel from New Orleans now includes any road travel from people entering Texas from Louisiana. He also recently announced an executive order requiring a mandatory self quarantine for air travelers arriving to Texas from airports in New York New Jersey Connecticut and New Orleans here on the local front. The city of Midland has confirmed thirteen positive covered. Nineteen patients and actor county has confirmed five positive cases the city of Midland Memorial Hospital mist acs. D have done a phenomenal job. Keeping the residents of West Texas updated on the situation most residents on the Permian Basin or following the advice of our local and state officials and staying home. Now Land is following governor. Greg Abbott's executive order limiting social gathering to ten people prohibiting eating and drinking at restaurants and bars while still allowing takeout closing gyms bannon's people from visiting nursing homes except for critical care and temporarily closing schools now. The city of Odessa decided this week to sign a limited shelter in place that will close many businesses including hair and nail salons gems massage businesses food courts parks and pavilions and ratliff ranch golf links. They're also asking real estate. Businesses to close on homes. Virtually not face to face and childcare can stay open but not have more than ten kids at a time. Of course. Most of this information can be found on facebook. You can go to actor county health department. You can also find nightly updates on midland mayor. Patrick Payton's facebook page and of course all of our local news are covering these stories from top to bottom. Of course also these regulations and rules are changing. Is this as a fluid situation. So by the tiny here this they may be different but as of recording. These are the very latest happenings here in West Texas. Now I know this is all hard news to hear and I wanNA share some good news with you and what I've been calling. Tell me something good. If you WANNA sing along with me feel free. Tell me somethin' good. Let's right we have to find the good. I know that this is a difficult time. But there's always a beacon of light and I would love to share good stories with all of you just like this one was shared with me. I love it in front of Middleham Memorial Hospital. Someone surprised the nurses and doctors with the sign out front that reads heroes work here. It's one of those huge signs. I believe it's Card my yard. Who does these and it is just a fantastic way for those nurses and doctors to be reminded that we are so thankful of them and they truly are the heroes. They're working the front lines and that is why for the second week in a row our community. Mvp Our nurses and doctors who are the real heroes. Working to heal those west Texans who are sick and we cannot thank you enough now. They're truly has been so much good. That has come out of the pandemic kids all over town or Writing Bible verses on the sidewalks in front of their houses and in front of stonegate church there is an entire block of encouraging words in scripture so beautiful to walk by just brightens your day. If you are feeling a little bit down and you need to get out and get some fresh air highly encourage you to walk up and down the sidewalk there and you will immediately feel your spirits lifted. I've witnessed over and over the past couple of weeks. The Permian standing firm and helping others their restaurants who are delivering to nurses and doctors the elderly the homebound of course West Texas Food Bank just doing outstanding work here in our community the volunteers and in so many others that are just helping out Libyan Craig everyone. There are just wonderful people and they are doing their part to make sure that nobody goes hungry. During these times so in in traditional West Texas Manner Permian Basin is coming through for each other. Like no other. I do want to thank you all for joining me for this. Very special edition. I'm going to do this from time to time as we just have these weekly updates and everything is changing so much that way all of you who are not here in the Permian can know what is going on here in West Texas. I would love to hear from you. Reach out to me on Lincoln on Instagram. I'm also on facebook at KRISTA ESKIN MIA and we can keep the conversations going. Tell me the good that you're seeing in the world because there is so much good and we want to spread that and spread that joy with that said I wish you all good health love and joy and take care of yourself stay healthy. This concludes this episode of Permian Perspective. The story behind the oil and gas leaders in the Permian Basin. Remember my mottos dream. Big believe in yourself and never give up. You make it a great day. Hey everybody Alex here. With the events on deck for the next month we have some exciting things coming up to happy hours one in Pittsburgh and one in Denver so the first one will be happening on March twenty second at Bubbas Gourmet Burgers and beer. This event will be from four to seven and will feature a live recording of oil and gas this week with Jake Corley Markel Corp so be sure to check that out. You can sign up via our social. Media's we have an event bright sign up and should be good to go from there. The next event will be a happy hour in Denver at Liberty Oilfield Services on April second once again. Check our social media's for the event bright sign up and sign up there ask some of our social media followers no we are headed to Aberdeen Scotland the first week of March. But he had a couple of days actually for. Doku con creating high impact sales and energy dokru excited to launch its very first sales development conference and Obgyn's mark and Patrick will be hosting a panel and recording alive podcasts. That we're really excited to be joining map. The leaders in industry luncheon is on March eleventh at the betraying club of Houston. Port of the future is happening on March tenth and Eleventh in Houston your registration to the port of the future conference also allows you access to exclusive events including TSA security and terrorism research showcase and many more so be sure to view the agenda and see what they are offering the Houston energy. Breakfast will be on March twentieth at the Norris Conference Center in Houston the API Energy Houston three gun. Chapter will be on March twentieth this spilling out very quickly so make sure to get a team in as soon as possible. The BP Energy Outlook Twenty twenty edition will be on April twenty. First it's happening online and this event is about transitions that will take place to a low carbon energy system. That's offered this month. Everybody hope you guys have a good month and check back in next month to see what we're having. Thanks tune in next week for another episode of Permian Perspective it production of the oil and gas global network learn more at www dot org G. N. dot com.
Permian Strategic Partnership on Permian Perspective PP041
"The Permian Basin is an abundant oil and gas producing area already one of the world's leading oil producing regions the area in West Texas and southeastern New Mexico could nearly double crude oil production by the year. Twenty twenty three but who are the leaders behind this economic powerhouse and what is their story. This is permian perspective. I'm your host Krista. As skinny today show is sponsored by Baker Hughes who recently launched a new and reimagined Baker Hughes brand as an energy technology company they strive to make energy safer cleaner and more efficient for people and the planet. Hello everyone welcome to this week's episode of Permian Perspective. I'm sitting here today in Midland Texas with Tracy Bentley. The C. E. O. of Permian Strategic Partnership Tracy. Thanks so much for being here. Thank you so much for having me back. I know I'm so excited can't believe it's been a year since we visited a lot has happened. I'll your hottest happened. Oh what a difference a year makes and just so so. Everyone knows the date of today's recording. It is March nineteenth twenty twenty and as many of you know we are going through a pandemic and a lot of changes due to the cove in nineteen and as you mentioned a lot of changes in the past year. So we'll we'll get to that in a minute. I WANNA think you've of course for being here and I wanNA thank our listeners for joining us. You left such kind comments on a not only on facebook but also through itunes leaving those five star reviews so thank you so much. We really appreciate you for sharing those kind words and also for sharing our podcast with friends and family and colleagues we now have listeners all over the world and of course right here in the Permian Basin and I appreciate each and every one of you so feel free to leave review stop by and send me an email go to permian perspective dot Com however you wanNA connect. I'd love to connect with all of you so tracy thanks again for being here. The Wo- so much has happened. The cove nineteen pandemic has created a new reality for daily activities around the world. In in the United States. There are efforts that are underway to encourage social distancing and self quarantining. They're becoming more common will with the twenty. Twenty census efforts in full swing and in-person follow up visits pending. It will be imperative to encourage census participation over the phone or online which is available for the first time in this year's count. Tell us a little bit about your partnership with p. s. p. and the census education campaign which is called. The Permian counts. Thank you because I can't think of another region in the entire country that has more to gain from an accurate census. Count as we all know who live here. We know that due to our growth we have a lot of challenges that come along with that and that is by way of of housing and healthcare and Roads Education Workforce Development. All the things that the PSE works on but one of the. We feel like one of the priorities needs to be on making sure that every person in the Permian if you live here if you're here fifty percent or more of the time you need to be counted here because that is directly linked to federal resources. That should absolutely come to the Permian. If we all agree that being counted needs to be a priority otherwise the resources that are designated for right here are going to go elsewhere to the places that were counted in so all we have to do is make our individual responsibility to go online and be counted. And we'll see resources. Potentially that our region is never seen before so in the past. I if I remember this correctly we would get packet in the mail. We would fill out a little questionnaire. Send it back and then maybe someone would come to our door and follow up. Bright is that how the process was in the past but is now changing. You're exactly right. That's how it's been done for years and years this year. It's changed to technology and people like the convenience of filling it out online. You can do it directly from your cell phone your ipad your computer but then you add the corona virus on top of it and so much of that door to door and reminding and encouraging people educating them face to face is not going to happen or at least certainly suspended and so now. It's really a comment on all of us as individuals to take the time to educate ourselves into go online and do it ourselves and just make it a priority. So what is the fastest way to do this and easiest because will be honest? A lot of us are staying home now a lot more and with governor Abbot just announcing today. That going into effect tomorrow night. Bars and restaurants will be closed indoor dining and also you can't be in a group of ten or more people. We're going to be home a lot more. How can they do this with this time? Absolutely so a couple of resources for you if you go to the Permian counts dot com. We've got economic studies that will show people just the importance of getting an accurate count and honestly ramifications of if we don't what we're GONNA lose out on so those numbers are really compelling and important for us a number two. We list out all the resources in helpful tips on how to fill it out. It's actually very very easy but I know if you've never done it before. New things can be intimidating and so our website will help guide you to resources. That will help walk you through that. Of course you can always visit the. Us Census Bureau and then it will take you directly to the form that you can fill out. It takes higher on average about a minute minute half thought so it's really simple and easy to do in the past once again. I don't know what the numbers are. But what was your turnout like? Did you get a good response from people that did the male inversion versus? Now this new technology sure so nationwide. We had an average of about a two percent undercount. If you went last year which doesn't sound too bad at all right but let me just does some numbers at you. So a two percent undercount. This year would result in a regional loss on the Permian Basin of one point one billion dollars in gross product. That's about one hundred and twelve million dollars a year as well as about thirteen thousand jobs all because we didn't fill out a form that takes a minute and a half to be counted and that's a two percent undercount now we know it's even more challenging because of the state of things and what's going on here and also the Permian Basin is very. It's much more ruling nature as we know and so access to things like the Internet can't be taken for granted here in every place so I feel like we're even more challenging if you get a good count and that's why making it a priority. I'm hoping that we can reduce that. Two percent undercount one percent or let's go one hundred percent would be great but those are numbers just to give you an example of a two percent. Undercount do you feel or are you worried that the state of oil and gas right now will affect that count and affect people because of the worried. Miss that is going on in their daily life from getting them on there. I do think that that's going to provide an extra challenge again. That most of the country's not gonNA face and it right here in the heart of the Permian. We'RE GONNA face it more than anybody. Along those lines are. Rotational Workforce Causes Challenges. That don't exist anywhere else. And I think it's so important for people to understand that if you spend fifty percent of your time here you need to fill out the census here. There's some misinformation or I think some folks think that well my family may live in a different city different part of Texas. Maybe even another state and so that's where I'm GONNA fill up my senses. Well the guidelines say it's where you spent fifty percent of your time and so getting people to understand what they call home for the census. Maybe they're counting something different. So those of our friends out there. That have a lake house in San Graham Berry. Or maybe you're at Lake Travis. But you're here more. Please fill out the census here because you are here. More than fifty percent of the time does he's the right and that's where they want the resources to be dedicated towards him. What I've been telling people is if you don't know if you're on the fence when in doubt fill it out and the US Census Bureau will figure out where where you should be counted most the time but if you have any doubt go ahead and fill it out. That's a good idea and of course we will put the Permian counts website in our show notes for you. Go to after this podcast. If you say hey we need to go to that website and check it out and go fill this out now that that would be great so we will definitely put that in your show notes once again. I'm speaking to. Ceo Tracy Bentley of Permian Strategic Partnership. And we're talking about the importance of filling out the census because this really is such a timely really timely matter that we need everybody to do right now so that we can get an accurate count and as you mentioned. Get that funding. That's right I feel like now more than ever. There's it's never been more important for us to get this count. We already know that because of the Challenging Economic Times that we're going to need more more resources and we may see those via stimulus package going from the federal government but these resources that were talking about via the census are long lasting sustainable permanent. If you will resources aren't gonNA come and go. And so they're going to provide basic stability and honestly services for public safety. Our veterans our seniors healthcare education housing. All of that that we so desperately need. Thank you Tracy. I know that you are deep in the heart of what's going on right now in listening and learning and reading everything that you can. What is the state of oil and gas in what you've been reading in? How are we going to get helped by the federal government? Have you read anything today? That maybe we could give us new information on. I haven't I'm well aware like everybody else that those conversations are happening in Washington. Dc and federal governments reaching out to states to find ways. That can be helpful. What I can tell you is that even in the downturn an this interesting economic time the Permian Basin is still the preferred place for energy production. And there's no doubt we are feeling it and we're going to feel it but long-term the permian will remain productive. And we'RE NOT GONNA see folks pick up and move and leave it baron if you will. I think we're GONNA continue to see production even during this downturn. I know many of our listeners watched the oil prices up and down a Banana. I know I do too. I'm right there with you. Got a little bit of good news. Today it went back up to twenty five and we hope you see more green. Arrow's what advice would you give to those living here in the Permian beyond because we have listeners really tied to oil and gas all over the world to really keep their spirits up about what is happening here because you and I both know that? Permian Basin are resilient. We are Permian strong. We're going to keep on truckin. We're we're not. We're not GONNA give up. So what advice would you give nets in what you just described? Chris as one of the many reasons why I absolutely love living here and I feel like it's been my home for much longer than actually has but what I would tell folks is. Yeah it we're going to feel it and we're going to hurt it but it's GonNa hurt a little bit but we're going to remain for the long haul end so hang in there and know that this industry is going again to continue to produce probably not to the degree that we have in fact we know we're not going to so we're GONNA wait it out and keep producing even at twenty dollars a barrel and oil until conditions improve. And then we'll wrap up again but we're not going to. We're not going to leave right. And that's the thing I mean. We're we're all here. We're going to all stick it out together and I always say this too shall pass and we will be here together to continue to work on those issues that I know the Permian strategic partnership is so strong about and for those of you that maybe didn't listen to our our previous podcast and we talked about the road issues. The roads still need help right. I mean the roads are still we? We are still busy on the roads. We still have potholes on the roads. We still have people that are dealing with some of those same issues. It may seem like it's on a smaller need right now but it's still there. You're exactly right. The premium strategic partnership is comprised of twenty of the largest producing companies in the country. But certainly in the Permian Basin and the fact that they said now more than ever the Permian Basin needs leadership and efforts to continue to work on the things that you just described just because we're in an economic downturn or hard times doesn't mean that we can't we need to still work on things like access to healthcare that's now again probably more important than ever our roads needs to see. Improvement are education all those things and so the premium strategic partnership is not. GonNa Pause on our work. We're going to continue to fund initiatives working with the community and partnership right through this. So we're going to be here. Let's talk about some great initiatives and the great work you've done in the past year because I know there has been so much that Ha- we've really seen a lot of the oil companies just really pouring their heart and soul into this community. Yeah last year was our first full year up and running and we spent over thirty million dollars. On six initiatives and initiatives that we fund are really go to the critical needs to areas that we just spoke about and so we were one of many funders in the idea public charter schools. That are coming to Midland Odessa. Were thrilled about that. We also hear very recently announced a partnership with Texas Tech and hospitals across the base including southeastern Mexico and certainly here in West Texas where we are funding more DR residencies because we know that attracting and retaining new doctors the area is challenging and it is due to the other things. It's all cyclical affordable. Housing is an issue and road safety and all those things so really pouring resources and thought into recruiting and retaining encouraging them to stay has been something. That's been our goal for a while. And so we're thrilled about this partnership and hope that it works so well that we can expand it. Even that was another what we call a success. We also were able to fund teacher housing subsidy to find out because affordable housing is an issue for again attracting and retaining quality teachers and so even bringing rent down by twenty percent in a partnership that we were able to choose to make it more affordable to live here and so we know that teachers are using that in both midland down. Odessa and I'm excited to see the results but again maybe that's something that needs to be ongoing fantastic. Thank you so much for your hard work in pouring into our community. What is your favorite thing about living in the basin for the past year? Oh my goodness We have had the best time. I don't know the barbecue here is over the top little different than Colorado different. I tell my friends. You don't even know what barbecues until you come down here so true but honestly it's really what you hit on earlier. We feel like we've known some of our friends that we've met in the past year for all of our lives and we just the Camaraderie and the spirit down here is unlike anywhere that we've seen and we love to be part of it and we really feed off the energy of the folks down here and the pride that they have and so it's been pretty amazing Pantano. Well we're so glad you're here and I know last time I probably asked you this because I always love to know what people are reading or listening to. Do you have a favorite book or podcast that you're listening to right now? You know right now. I'm reading a book and Gosh Darn it and it's Oh I don't know it feels like it's about a foot thick but it's about the the history and the heritage of West Texas Fan. Yeah and about how the all the various industries all just hasn't been oil and gas all the time right talks a lot about agriculture in the history of the area and now they put me on the spot. I cannot spit out the name. But it's it's like well I'll just google best book that's think about West Texas. It'll come up but I love that you're learning more about West Texas because I think it is important when you move somewhere to dive into the culture and to learn the history and we do always have people that are moving in and out of the basin and as many who have been through booms and busts around here now that if we're in a downturn now we argosy things turn around and it's going to go back up so new people will be moving back into the basin and I love that you are still learning about what makes it so great here. I think that's fantastic. What's the most important lesson you have learned? Maybe in it doesn't have to necessarily be in the last year being here but in life. I think I've known this for most of my adult life but being down here for your has just really put the exclamation mark on it. And it's it's advice that I give to my kids. I don't know if they listen to it but certainly anybody who asks in. It's it's okay to be uncomfortable and in fact. I think it's important to be uncomfortable as I reflect back on my professional life certainly on my personal the Times where I experienced the most growth was when I was uncomfortable. If we constantly operate our comfort zone we will never truly reach our potential. And I've even though it is uncomfortable. I sometimes when I get uncomfortable. I have to think okay. This is growth. Time this when you're going to grow and it's something that it took me a while to realize but it's absolutely true. It is true. My husband's told that to our kids several times. You have to get comfortable being uncomfortable. Absolutely that can apply to any aspect of your life whether it's in sports if it's in the classroom if it's in the workplace sometimes it's GonNa feel you're GonNa get the butterflies is gonNa feel a little different because you haven't done this before but once you do it you're going to be so glad you did That's it and you're GONNA learn something from it so good advice and your kids should listen. Let me tell them. Sometimes they listen to other right other moms before I I understand. I understand Let's let's just kind of close things out with a reminder of the Permian counts because I think that is so important that everyone does go. Fill out that information. Let's just give one final push? Is there anything we haven't mentioned about it? That you think is so important that you really want all of our listeners. To know two things really number one when we ask people are you going to fill out the census early on we got to interesting common themes back number one was. Oh we're going through a census right now. It's since this year so the basic awareness that this is happening right now needs to increase significantly so yes. We are going through once every ten years since his count as happening right now as we speak number two the other reason people said well. I don't matter I mean if I don't feel my now. If you know plenty of other people will so. I don't matter but there goes if everybody thinks like that then we're GonNa get a significant undercount and so every person in this basin who is here more than fifty percent of the time absolutely matter so I don't want any of your listeners. Or any of anybody here to think that they're that filling out their ballot doesn't matter because it does. That was great. Great information in so true because when you said that I just realized ten years flew by that my ass and to think we we are in another census count. Yeah I mean I feel like it was just yesterday but it wasn't letter and so as so important. Great Information please. Everyone take Tracy's advice go to the Permian counts dot com and Phil this information out. We would love to make sure that we get all the representation. We can here in West Texas. We need it now more than ever and we need each and every one of you to be counted. So Tracy thank you so much. I appreciate you being here. And if we want to let everyone know that of course. Permian strategic partnership is here to stay. You're on social media. You're on facebook. The premium counts as well so just diving. Get that information. See how you can help. And let's continue to support our wonderful community of the Permian Basin and we're all in this together. So let's help each other out and be strong together and go get your senses. Vote counted right now. I cannot say it enough. I feel like now. I'm gonNA tell everybody like everybody. I see if you feel about your son says. That's that's what we need to do. We need to spread that good here of filling out your census so tracy thank you again. I appreciate you thank you for all you do and thank you so much for having me your welcome well. Usually we always announce a community. Mvp At the end of our show. And today I have several community. Mvp's because as you know we are going through something we've never gone through before and we are seeing people step up like in true West Texas fashion as they always do. But I want to share a special. Thank you to our grocery store. Workers Nurses Doctors Educators first responders farmers city government officials who were all working overtime to make sure that our country locally and around the world continue to run a smooth as they can during these uncertain times. If you haven't chance take the time and just thank you. It's that easy. Just walk up to him. Say Thank you so much for all your doing and from all of us here at Permian perspective we appreciate each and every one of you and what you're doing to help during this pandemic special thank you again to Baker Hughes for Sponsoring Permian Perspective as you know. Baker Hughes recently launched a new in reimagined Baker Hughes brand and the as an energy company. They are striving to make energy safer cleaner and more efficient for people on the planet. Thanks again for joining us. I appreciate each and every one of you for sharing time today. This concludes the episode of Permian Perspective. The story behind the oil and gas leaders in the Permian Basin. Just remember dream big and believe in yourself and never ever give up. You make it a great day own. Don't forget to fill out your census form. Hey everybody Alex here. With the events on deck for the next month we have some exciting things coming up to happy hours one in Pittsburgh and one in Denver so the first one will be happening on March twenty second at Bubbas Gourmet Burgers and beer. This event won't be from four to seven and will feature a live recording of oil and gas this week with Jake Corley and Markel Corp so be sure to check that out. You can sign up via our social. Media's we have an event bright sign up and should be good to go from there. The next event will be a happy hour in Denver at Liberty Oilfield Services on April second once again. Check our social media's for the event bright sign up and sign up there as some of our social media followers may know we are headed to Aberdeen Scotland the first week of March in a couple of days actually for Doku con creating high impact sales and Energy Dokru is excited to launch. Its very first sales development conference and OGSM's mark and Patrick will be hosting a panel and recording podcast. So we're really excited to be joining map. The leaders in industry luncheon is on March eleventh at the Petroleum Club. Houston toward the future is happening on March tenth and Eleventh in Houston your registration to the port of the future conference also allows you access to exclusive events including TSA security and terrorism research showcase and many more so be sure to view the agenda and see what they are offering the Houston energy. Breakfast will be on March twentieth at the Norris Conference Center in Houston the API Energy Houston three gun. Chapter will be on March Twentieth. This amount is filling up very quickly so make sure to get a team in as soon as possible. The BP Energy Outlook Twenty twenty edition will be on April twenty. First it's happening online and this event is about transitions that will take place to a low carbon energy system. That's offered this month. Everybody hope you guys have a good month and check back in next month to see what we're having thank tune in next week for another episode of Permian Perspective a production of the oil and gas global network learn more at www dot g G. N. DOT COM.
Tech and Energy are Teaming Up A Market Review | Saudi Aramco to Invest $110B in Jafurah Unconventional Gas Field | Cimarex Ties Exec Compensation to Emission Reduction | Crazy Shale Growth is a Thing of the Past | Largest Bank in US WILL NOT fund Fossil Fuel Extraction in the Arctic National Wildlife Refuge | Democrats Courting Oklahomans seeking Limits on Oil & Gas Production | Big Money Still Loves Oil & Gas OGTW196
"You're listening to the oil and gas this week podcast with Martin liqueur and decor vizo. Were busy or growth quickly. Want to keep their finger on the pulse of what's going on guys. Welcome back sued of oil and gas. This week. You said one ninety-six we are four away from two hundred mark. Yeah we have some plans for two hundred chooses not quite locked down yet but a Susan get locked down. We'll let our audience know 'cause we're planning to do something really cool and speaking of some really cool big shutout to how'd you first thing Jake. Raheel Raheel Garcia. He one of the IBM shirts and he was nice enough to snap a picture of it along with the OJ. Jian Tumbler and shoot out to us. And it's just really cool. He's a chemical engineering graduate student and he gives us big Kudos and also our sponsor. Ibm for keeping him updated as news and trends so big shoutout. We appreciate you wearing a shirt. And then Jake. I just came back from Calgary of doing the speaking for Ibero. In Calgary in one of the audience members had the shared. It's just cool to see our giveaways all over the world and people are happy to show off to us. That is pretty awesome and speaking of awesome. We also has some great reviews as you guys have left. Obviously that's the way you support us and keep us doing what we're doing. This one says excellent content for the latest news and trends in the oil and gas market five stars from Rob They write these guys on top the industry news and provide valuable insights breakdown current trends and you willing gas market super helpful. Keep the comic We will get to the news because we got something going on. It's affecting all of us right now. Yeah so I was Kinda looking forward to going to Sierra week this week and I just saw this morning as you did. Mark that Serre. Week is cancelled. Due to the CORONA VIRUS OUTBREAK HYSTERIA. That is spreading across the world. And we actually we were supposed to leave. Aberdeen Launch Sales and marketing. Podcast tomorrow and I actually cancel that trip. That won't be real clear here. I'm not worried about the virus at all. The virus is not that bad more people die of the flu by far than the crow. Vars the problem. Is that the news agencies overreacting like they do about everything and now. The government's are starting to overreact. And so the problem is the UK has just been stepped up to level three health threat by the CDC which means that when we come back from the UK. We could be quarantined if somebody in her plane is tested. Positive or looks like they have the quote of ours. And I just can't take that chance of me and my people some making decision to keep people safe not from the virus but for being quarantine when we come back and I totally get out. Seir we kind of make a judgment call. You know this is probably would guess. Millions of dollars lost revenue for the city of Houston and all the the hotels and restaurants and venues sorta stuff. There's also a lot of money being lost by. Ihs market who puts his thing on at the same time. They can't take that negative black. I in public or something bad would happen. It's hard call. It was a really hard. Call me today to cancel our trip. We lost some money on this but I thought was the right thing to do. My people safety comes first. I think that's what's going on here seer week. Which is a shame that the media on both political sides just loves to GRAB ANYTHING AT CAIN of blown out of proportion. Yeah it seems. Obviously there's been a lot of deaths but I think comparatively speaking I think it is a been blown a little bit out of proportion but you know I agree with. Ihs Is better than story. There was people from eighty different countries. We're supposed to be participating. Shell that travel and being on a lot of other people and whatnot who knows maybe the entire willingness to wipe out by Kern virus and just one event. Well I'll tell you what it's affecting the stock market like. I don't even want to look at my investment portfolio right now and I know it's a perception thing but perception in today's constant always on social media world. Perception can move the needle a lot. I mean this is a perfect example of it and that's Jake's Co host by the way you heard barking background so speaking of Tech. Let's a little happier technology. Teaming up creating a market that could grow five hundred percent in the next five years. The oil and gas energy tech community didn't really exist a few years ago. And so we've been talking about this for a long time saying that companies need to be focused more on digital services digital transformation most need to become data companies first and foremost not just any willing guests industry but everywhere and now we're seeing that was. Barkley's thing was one who did the reporting of Barclays the report saying that the oil focused it'll services industry will grow from less than five billion dollar market today to more than thirty billion dollar market annually over the next five years in the upstream market alone leading to one hundred fifty billion in savings for oil producers. Thirty billion dollars just from the digital just from upstream. That's a big company. If you're thirty billion dollars a year company so that the potential there jake you and I and all of our peers have talk about this for years for years. So this is not news to you and me. I think it's interesting to see what I would consider. Almost a bit of a hypocritical approach so some of the really big technology vendors that are out there that are coming into the oil and Gas Industry. That are looking quite honestly to make money in our making money from us at the same time. Don't want it to publicly. That are doing work in our industry. That just bothers me right whether we have a difference in opinion on climate change in the how much hydrocarbons contribute to that and man's activity should be that. If you're coming in and helping US and making money off us be proud of it and if you think we're in this energy transition period a time be okay with helping the gas companies. Make that transition. If that's what really happens but don't hide from your shareholders and from your public and say that you don't support the hydrocarbon industry at the same time. You're spending money making money you know working in the oil and gas she's bought bothers me. Yeah the CEO of a cow. Which Company was Alabama? I can't think of his name is Sonya Nadalo them. It's Microsoft right with Microsoft. Yeah Yeah Yeah So. He was quoted as saying wasn't actually in this article. I read last week that big part of their cloud services offerings with their azure platform. He saw a lot of room for optimization through digitalization with things like their platform in the energy industry so actually that was kind of peculiar that he actually said that in a conference yet. It's interesting Eh. Don't WANNA get too deep into the names of the big tech companies. And who's doing what? But there's definitely a difference in approach in how they're dealing with US publicly and I think the ones that are able to come to the table. Say Yes we're working with Chevron or slumber J. or Halliburton or whatever and we're helping them and there'd be an open honest and transparent about I think we're GONNA get more business than the ones that publicly say. We don't like fossil fuels yet. Their sales teams are calling on the saints companies. So if you have an idea or something you want to pursue anyone guess industry. There's never been a better time than now. We've seen all the biggest waffled service companies As the Baker Hughes Halliburton all gearing up to become more of a digital service company than National Physical Service Company so the writings on the walls. We've had more and more venture capital flow into the space we've ever seen before we're seeing tons of exits so it's it's really really exciting time to be in the space. I know it's a lot of doom and gloom in the industry and we've been talking a lot of that but the means there's a lot of opportunity as well. Yeah I mean look at all. The big oil comes internal venture groups. They're not doing that to flip. Companies make a profit. They're doing that. Look if the next great thing to help them compete and they finally realized that the next great thing may not come from a large corporation may come from a two man startup in Lafayette Louisiana. Orrin somewhere Cairo Egypt or whatever so to your point you know if you have a good idea if you see a problem that you can solve and you understand at least at a high level how the oil and gas industry works and you have that entrepreneur. Spirit is probably the best time in history few to pursue absolutely Saudi Aramco is investing one hundred ten billion dollars today Jeff your unconventional gas field. So this is supposed to yield approximately eight point six billion dollars annually providing GDP with twenty billion dollars annually while creating job opportunities. Funny thing is I actually thought the markets were going to respond a little bit to this but however there's been practically no movement as a result of this announcement. Natural gas is interesting. It's definitely the fuel of the future is definitely a moneymaker in the future. But it's just the price is just so who low right now and that's part because it's hard to move around we'd have it built the LG factories that are needed to compress it a gas. We haven't built enough offloading terminals enough importing terminals enough regasification plants. Enough Ellen G offshore carriers. But we're come and that growth phase where we're building the infrastructure. They can the next couple of years as as more and more that infrastructure comes online. And you start moving more and more energy around the world. Think you could see the prices go up. It is interesting though because I was thinking about this other day. You know one of the projections that both BP. And Mackenzie is. They're looking at the future out to twenty fifty. And they're projecting there's GONNA be a decline in the need for fuels from hydrocarbons gasoline. Diesel that sort of stuff and the reason I think there's GonNa be a decline is the increase in electric vehicles. And this is kind of in the back of my head for a while. It's like you know when I think about breakthroughs in technology. So you think about the Ubers of the world does that cause people to use less vehicles of more vehicles as the price comes down and as get easier to use something. Think of your cell phone as the prices come down because it's not that long ago where it's very expensive to call. Cellphone and dad was prohibitively expensive as the price is down. Do More people use it? So I'M GONNA actually go on record and I think that as we move in the future. I think the demand for fuels from from hydrocarbons is actually GONNA go up. I think with things like ride shared smart cars self driving cars. More people have access to it and I think it's good drive. The demand up electrical vehicles are great. They really are. We need a breakthrough battery technology. But because you don't have that transmission because you have a hundred percent torque at one. Pm The motor could be connected directly to wheel. You'll have that twenty percent loss and then you're not dumping all that wasted energy as heat. We need a battery breakthrough. But you know the more I think about. It becomes cheaper and cheaper and easier easier. I think the opposites gap. I don't think the demand for vehicles that RUN INTERNAL COMBUSTION. Engines are actually can make up. Let's see if I'm still around twenty fifty from right all right. Speaking of emissions in natural gas denver-based summarize energy use operations are concentrated in the Permian Basin and mid continent wasn't active participant in how national policies are set for environmental stewardship. But I want to walk the why. And so they are actually going to be tying executive compensation directly to reducing their emissions. What do you think about that Jake? I think it's a smart move. I think ties into a bigger conversation. On governance and how executives have been compensated. Think it's just kind of basic psychology compensate people based on things that are actually good for the company. Good for the people get for the environment. Yeah we hope that. They're tying it to other things just emissions natural gas flaring. But I think this is a step in the right direction. So it's not the only that we've seen do this. There's been a few others so far camera off top my head but I think it's a step in the right direction. Yeah so I agree with you. This is a bit surprising. And of course we know why they're doing this because public perception. But I like the idea. I like the idea of tying executive compensation all gases something other than growth. Would this have been my first one? No would have been in my top ten list. I think it would have been because it's such an issue in the public right so I liked it. They're doing this. It is GonNa be interesting to see what happens. Does this affect the business in a positive way? You know. It's SORTA like hsen metrics for Very Long Time. People said that if you ran a solid HSE program with no loss time incidents it slowed down and eventually it was proven at the opposite. It's more efficient operation when people don't get hurt so this is sort of the same thing is by tying their executive competition to reducing emissions that make the company better and they perform better which would be better for their shareholders and their employees. Let's keep island because this is something different and I like the fact. They're willing to try some different public about slumber. J. Chief says that crazy show growth is a thing of the past. Obviously we saw a cruiserweight approaching gross seen in the US shale last five years. I was butcher his name. But I think it's Olivier Pugh view only people the US at watch cartoons twenty years ago. What you're talking about which should be most people so the growth rate will slow considerably to six hundred thousand seven hundred thousand per day this year and even worse to just two hundred thousand barrels per day in twenty twenty one is what they are estimating and that strictly from Schlumberger. So I'M GONNA disagree with him. It's number one unfortunately. I love slumber. J. They're literally right down the street from our house. There north hecklers number one. They've done horrible in the. Us they do really well internationally but their business practices and needed to change compared to competitors and honestly Jake there dude. They're doing some stuff that just wild news. Actually in my predictions two years ago they started renting their tools competitors so they know they need to change in. They're trying to change. We'll production go down. I think production growth is going to slow down. Production itself is going to go down. I don't think so. I'm firmly convinced. His gooby new breakthroughs and processes and technology this year next year and the year after which continue to lower costs and drive efficiencies. Now will we ever see the growth in shale like we did ten years ago? No but you gotta take that in context. It's sort of like if you have one dollar so gives you another dollar where you just grow that. One hundred percent sounds like a lot but it's only two dollars right so I think the growth rate will absolutely sit on Hasta. We'd have to have this market corrections happening right. Now do everything. It's going to decline. No Yeah I would have to agree with you. He's kind of saying the obvious but I wouldn't take it Definitely wouldn't say it's going to decrease Russians Wall but say what eleven if you'd like to come on our show and talk about it me. Jake could fit you in our schedule. Promise speaking of things like this largest bank in the. Us will not fund fossil fuel extraction in the Arctic National Wildlife Refuge. Just that title alone is a little bit biased but it ties into the bigger conversation around. Jp Morgan which JP Morgan has funded more willing gas exploration than anybody ever by a long shot. It's like almost double testing on this. So this is GonNa be the first domino to fall In the Arctic National Wildlife Refuge. And my guess is that this is not going to be the last year about this. This is going to expand as more banks more. Investors are wanting to divest at of oil and gas investments to meet. Es G quote unquote concerns. Yeah Jake so this is sorta like you and me and the rest of the OJ. Jian game going. Look we're drawn a line in the sand. We want support the environment. And we're pledging right now. Not Invest any money in Jilin. Toil in Hawaii. Well what's funny about that is? You're not going to draw our Hawaii right. You're just not GonNa do it so it's really easy to put our foot down. We're not GONNA do it. One of our listeners. Probably knows this but whatever the cost of crude has to be to make it economically viable to drill produced in the Arctic has to be around one hundred dollars a barrel. I mean maybe even more. The environment is so extreme logistics almost nonexistent the mount of redundancy and protection. You're going to have just to even drill. There is just drive costs route. I don't think anybody could do an Arctic. Now here's the flipside with though. Is that if anybody does drill an Arctic. It's most probably it'd be China and Russia can ask this question all the time. Have you ever heard of a Chinese or Russian oil spill answers? No that means one of two things that means one. They're better at it than American European companies or they don't tell so if anybody drills and Orrick you would want it to be one of the American League European you'd want it to be Shell or Exxon or BP or Chevron or whatever because if something bad happens not only with tell they'll spend the money in the time to clean it up and fix it. Where's the Russian Chinese companies won't and this is I think is a bit of a pure thing from J. P. Morgan Chase J. P. Morgan chases in the business of making money and if an all gas project makes money for them. They're going to do it but to your point Jake. It's getting to the point now that these conversations are moving the needle enough. It's perception is not reality. But it's moving the needle enough that big companies are making decisions that will affect their shareholders. But once again. This is a bit of a pure stunt. Nobody's looking to drill in the Arctic. National Wildlife Refuge now anyway but it will keep an eye on. This really doesn't mean much of anything. Some kind of on the same topic. Democratic presidential candidates are courting Oklahomans for votes. We've seen that Elizabeth Warren we've seen Bernie Sanders. Actually think almost everybody who has been a Democratic candidate. Even Pete Budi who I guess just dropped. That is well is calling for some sort of ban on fracking or anything having to do with oil and Gas Brush in Charlotte. I don't get me started. You remember rusted. This year's Year muck of shy away from politics. I saw your facebook. You're like I'm double talk want superfluid. This is ridiculous number one. It won't happen right the moment. You can't heat your home the moment you can't afford gasoline your car. You vote for somebody else. Just ask the people in California that moving to Texas the reason to move to Texas. They can't afford living their own state anymore. The reason they can't afford to live on their own state is because the politics they support drops the cost of living to the roof right so then they have to move out of their own state because of the way they approach politics all of the democratic nominees are future nominees all support some type of attack on the oil and gas industry. And it's just it's just ask tonight. Yes absolutely religious. It's just posturing and literally they don't understand business and it drives me crazy and I know why they are doing it. Drives me crazy is people that should be more intellectual about it art. It's an emotional response to support this type of stuff and it just. It just needs to stop. Do I think it's GonNa Stop? No Do I think that all guests entreat has got to the point where there's tired of this. Yeah we're actually working on something. That probably won't come out until twenty twenty one whereas the organization is go head to head with these guys. 'cause this is this hurts every by now who wins. The election is force Republican or Democrats. That's still a wait and see where that goes up. Put my two cents already on trump and I don't like the guy a whole bunch. I like a lot of stuff he does but Jake let me ask you. This voted early. Sub Voted early last week. Did you even know? There's any republicans run against trump. Now I didn't I didn't either tell it to vote like that's how big a lead has mindshare. He has in my head. I didn't even know there. Other Republicans running and there are so you know. Let's see where this goes. The problem with the Democratic Party in the Republican Party has had the same problem the probably Democrat Party. Is You have an extremist which is sanders and what he's going to do if he captures enough attention enough of the votes. He's GonNa Split the party up which then decreases their ability to put. Somebody in office will definitely decrease their ability to hold the house. So I think they're their own worst enemy and I think some of the moderate Democrats no it and by the way people. I'm not a staunch Republican. I'm a moderate. Socially of extremely liberal believe in smaller government believe in good fiscal policies. Good national protection but socially I very very liberal about stuff so you know this whole attack all gas industry. You'd think advise votes just needs a stop absolutely and on the last article of this week. That's Kinda end on a high note. This article titled Big Money Still Oil and gas so while shale is obviously having a hard time. There have a whole retransmission pass onto investors in that part of the industry. There's still a lot of ways to make money in this industry which talked about that will keep losing sight of that perception that shale is all oil and gas. And that's just not the truth and so the fact that matters that it is hard to kind of find the same kind of returns that you would find with some of the oil and gas projects especially in the US British inside that. You really don't find those anywhere else as I. She's talking about some investors from the UK. And I haven't followed anything with your economy on that side but apparently it's extremely hard even to get like a five or six percent return on anything over there due to the kind of stuff and so all these guys are coming to the United States looking to will and gas industry saying we want you know a lot of guys are getting out. We want at and so two thousand eighteen alone. Oil and gas firms raised six hundred seventeen point four billion dollars in capital which is up seven percent on the year with loans and bonds accounting for ninety two percent of capital. Raised in the other thing. Is You a lot of people? Just keep country on upstream. Big Shout Meridian Group. They're building new. Davis refinery in North Dakota getting rebuild. The same thing in the Permian and this is a brand new refinery that super mind Super Super High Tech Very few people. They're they're GONNA make a hell return on their investment because you're using technology to do something that a lot of people don't think of the only GASINCI which is to turn hydrocarbons in something you can sell and they've totally modernize the process which is just genius. So they're still money to be made in this industry that five percent return UK. That's silly I can make more that just through and stuff into my mutual funds. It is interesting though to watch. What's GonNa Happen it upstream? I think we're GONNA see a bunch of consolidation in this pop my head other day. Jake and I sure hope I'm wrong about this. If you were a super major and you know that at some point in the future because things are imploded in the shell fields in North America. Let's say shall fills in the US in the All Saints and Canada. Would it be beneficial to you to help stroke the beliefs that there's no money to be made in upstream so there's investor so that the people get bought quicker Make sense of wrong about that. Just pop miss that. You know if I was a super major in my business plan isn't next quarter. Next year to next decade. I would be okay of stuff happened to make that more tank quicker second pickup assets for pennies on the dollar you know and once again. I don't know if that's happening. I don't know how you do that as long as it's legal though it would be fair in business as long as it's ethical. If that's sort of things going on it just you know it's the same way. We picked up a competitor. We would want them to be as least valuables possible so he could pick them up for the least amount of cash our pocket so just popped my head. Have you know data new conversations of support that but I'm starting to take all of these doom and gloom shell fields articles with a grain of salt? Because that one thing because I know I know the super majors are making money in the shell fields and I know they just started and they have a lot of plans for growth and expansion and they wanna do it as cheap as possible because they want to make sure they're doing right by their investors and their shoulders their employees. So keep an eye on this but I think for my predictions for twenty twenty one. This might work. Its way in their absolutely and that wraps up all the stories for this week. You guys know what's happening next week. I Freddie a so many questions please write in. Don't try to stump us. What's at answering for you and we're going to give away. Obviously Raheel got a shirt These shirts are really cool that we spent money on their cut for both men and women. They have a print of Antique Pump. Jack on the front though gene logo on one shoulder IBM logo and other shoulder. And the most valuable thing is under the left part of the pump. Jack print is a unique. Cyril reach a unique number. Which makes it instantly collectible and me. Jacobs start giving away some really cool stuff basement number so if you have that shirt you might want to save it you know. Ask Your Wife where she preserved for wedding dresses. Bring Your Obgyn shirt preserved just like our wedding dress but then write that number down so that you know what? That number is funny shaky. Watch you and I regret not winning the shirt five years now. What people are selling for twenty thousand dollars each and Jake and I can't win them under the rules because obviously IBM's a sponsor for the show which by the way big shadow to IBM. I spent some time with some of their leaders in Calgary after the conference that we spoke out and Jake. They're doing some incredible stuff at one of the things I really like about that. They're so under the radar. They have so much domain expertise. I literally had a room full of geoscientists. Petroleum engineers geophysicist in August project manage that worked for. Ibm talk about how we can work together and help promote more stuff they were doing. It was just amazing to see August expertise on. Ibm's payroll big shout. They're they're doing some really cool stuff. We've got more to come from them. And then St teams join a street team. We're finally getting some swag big shout. The Catherine an attempt for getting the logo work completed for the street team shirts at is stunningly cool. Go to facebook. Join the Group Oji Street team easy to find all we ask you do help us with our social media. We asked for an hour's worth of work a week. But if you can't do it because life gets away we don't care. We knew how life is and what the monthly August events e Mail. Go to the show notes links in there. We don't charge you for. Put All guests events of one place in your inbox. And sometimes you get cold stuff like free passes or insider stuff that nobody else knows about. And then if you want jake to come speak at your sales and marketing kickoff your young Professionals Group your school group would ever let us know. We got a bunch of stuff book for this year but we have some spaces leftist reach. I'll be happy to share the details. Jake talked about the first Friday. The other things go join Arlington Group. I don't even know what it's up to. It's like a ton of people and it's growing like crazy just another way to stay touch our jake. Who had a lot stuff done today? We need to get out of here. Do it remember folks do Great Work? Pay It forward and we will see next time. Hey everybody Alex here. With the events on deck for the next month we have some exciting things coming up to happy hours one in Pittsburgh and one in Denver so the first one will be happening on March twenty second at Bubbas Gourmet Burgers and beer. This event will be from four to seven and will feature a live recording oil and gas this week with Jake Corley and Markor so be sure to check that out. You can sign up for our social media's we haven't met bright sign up and should be good to go from there. The next event will be a happy hour in Denver at Liberty Oilfield Services on April second once again check our social media for the event bright sign up and sign up there as some of our social media followers may know we are headed to Aberdeen Scotland. The first week of March in a couple of days actually for Dokan con creating high impact sales and Energy Dokru is excited to launch. Its very first sales development conference and mark and Patrick will be hosting a panel and recording alive podcasts. That we're really excited to be joining map. The leaders in industry luncheon is on March eleventh at the Petroleum Club of Houston. Port of the future is happening on March tenth and Eleventh in Houston your registration to the port of the future conference also allows you access to exclusive events including TSA security and terrorism research showcase and many more so be sure to view the agenda and see what they are offering the Houston energy. Breakfast will be on March twentieth at the Conference Center in Houston the API Energy Houston three gun. Chapter will be on March Twentieth. This amount is filling up very quickly so make sure to get a team in as soon as possible. The BP Energy Outlook Two thousand twenty edition will be April twenty. First it's happening online and this event is about transitions that will take place to a low carbon energy system. That's offered this month. Everybody hope you guys have a good month and check back in next month to see what events were having thanked tune in next week for another informative and entertaining episode of Oil and gas this week. Podcast a product of the oil and gas global network learn more at ORLAND DOT com.
Baker Hughes on Permian Perspective- PP036
"The Permian Basin is an abundant oil and gas producing area already one of the world's leading oil producing regions the area in West Texas and southeastern New Mexico could nearly double crude oil production by the year. Twenty twenty three but who are the leaders behind this economic powerhouse and what is their story. This is permian perspective. I'm your host Krista. As skinny today show is sponsored by Baker Hughes who recently launched a new and reimagined Baker Hughes brand as an energy technology company they strive to make energy safer cleaner and more efficient for the people and the planet. Hello everyone welcome to this week's episode at so nice to be sharing this time with you once again. I am sitting here today in Midland Texas with my friend Jimmy Butler the VP of Permian for Baker Hughes. Thanks so much for being with US Jamie. I Chris Great to be here. I'm so excited to talk all the fun and exciting changes at Baker and everything that's going on and you just recently had an an exciting trip Italy but before we get into our interview. I WanNa thank everyone who has shared our podcast with friends and colleagues. We truly have listeners. All over the world even in low France so thank you so much for listening. I really appreciate each and every one of you. I also would like to ask everyone to help our show out by taking a few minutes and leaving a review on itunes. I cannot thank you enough for doing this. We just recently had this fantastic review. They said Christopher's interview style brings out the best in her guests. Listeners brought into a conversation in which guests are allowed to be open about issues important to them professionally and personally krista interviews highlight the dichotomy between the hard scrabble oil business and the generous civically engaged attitude of the people who live in the Permian Basin. Wow thank you so much for those kind words. They didn't leave their names. O You know who you are. Whoever you are thank you so much I really appreciate you. Jamie thanks again for joining us. And congratulations on being nominated one of heart energies twenty-five influential women in energy for twenty twenty. How exciting was that when you found out. Oh just unbelievable. Almost had to pinch myself just wonderful nomination in recognition and even the class of women the other twenty four women in this twenty twenty s class so amazing talented and then even if you look at its third year so this is three years in the making. This has been going on and I looked at last year's twenty five in the year before that and it's just exciting to be in such a class in caliber of these amazing women of really truly. What an honor in that group and well-deserved. I have to say as well. I know that we visited before. But we WANNA get kind of. Everyone caught up with. Maybe they haven't listened to any of our previous podcast but tells a little bit about how you got an oil and gas and how you got here to the Permian all right so it's nineteen years. Though unbelievable. Last time we talked was eighteen years right so I've been in the Permian for about a year and a half now. Anna been with Baker used for nineteen years and nineteen years ago honestly. I just needed a job. So if you hear some of my podcast and speeches for her engagements that's really my story. I just needed a job right and I actually had not graduated from college yet and I was looking and Baker. Us hired me. I mean that is what you know going back in that time. Yeah you looked in the newspaper. It'll be. How did you find out that Baker Hughes was was hiring? Yeah I ran into. Actually my brother was coaching baseball. He was coaching tournament. Baseball and I ran into a leader Baker us and he asked me what I did and I said I was going to college and I was running a book warehouse Solo by myself while going to school and he said well have you thought about doing something different for your work and Baker. Use can help you finish out your degree so out. Yeah absolutely so actually interviewed for the first job. I didn't get it. And then that manager pass my resume onto another manager and said I think she'd be better fit for a role you have. I interviewed for that position. And yeah the rest is history so it was actually an administrative role so I started out at. I guess the bottom grade levels what we call them at Baker US and finished my degree and then I went into finance and then I went into marketing and then I went technology and then I went into supply chain and I finished my masters in supply chain management at Penn state going back and fourteen oversee park over a course of two years and then I went into manufacturing then I went to do field operations and then commercials so it was used doesn't at all crazy nineteen years and so a year and a half ago. I was in what we call our global accounts organization handling three of our largest accounts for Baker US across all product lines and an opportunity came to move to Midland Texas and leader Permian businesses. And I said yes absolutely why not. I mean this is the epicenter of oil and Gas. Right and I love your story. Because I've learned so many things just from hearing you just recap it even that first of all. If I don't succeed try try again right. Didn't get that I. I love for young women to hear that. Because sometimes you get that no one you think okay then this decision for me but you persevered and you were persistent and you kept going and then all these yeses then eventually led you to this. Vp position which is just incredible. Yeah it's amazing definitely when the bus pulls up you know. Don't turn it down so definitely get on the bus but at the same time if the bus doors shut you know. Think about what's that next bus that could pull up in. How can I overcome those challenges? And what can I learn and make myself better so I just think it's limitless possibilities and you just have to look at everything happens for a reason and you know when you fail or you make a mistake? How can you learn from it? And how can you move forward and turn that into an opportunity? Love that new definitely done that and then some let's talk a little bit about this one hundred th anniversary of the Permian which is a huge milestone an incredible to think of can you share what Baker is focusing on in the permian. Now yeah absolutely so we know that the Permian one hundred anniversary is a huge milestone for us. It's really exciting. To look back at the well that put us on the map in Nineteen twenty-three which was Santa Rita It produced for over seven decades. Which to me is like wow. That's amazing that a welcome produced that long but like the Permian Baker US also has over one hundred years of experience so I feel like that's what we bring to the table our legacy and our drive for innovation to the energy industry. You know obviously we bring all of that in a safe manner right. We protect our people the people island location in the environment. But at the same time I feel like a we can bring that expertise and knowledge to the well. Construction side in the production support side to support our customers to draw. Incomplete wells more efficiently. They can flow that I drew car- much sooner and they can also produce it longer and then the last pieces that were really focusing on energy transition and so how can we help our customers with that energy transition through either technology that we have today where they can take that flare gas and turn it into power and also is really to support our customers with our industries energy transition through the technology we have today so for instance how taking that gas and how we can turn it into power with our turbine technology and then any other technology that we can innovate and bring to the table to help. Our customers lower their carbon footprint. That's where we feel like this is going and how we can solve some of these challenges in the Permian but again. I'm going back to that foundation experience with well construction domain knowledge and expertise. We can deliver it and do it safely and efficiently for our customers here in the Permian. Fantastic let's talk a little bit about a conference. You just returned from in Italy yet. Yes how exciting was that very exciting? So acre uses. We have our annual meeting in Florence Italy and this was our twenty annual meeting in. It's always in Florence Italy. And what a fantastic being you to have an annual meeting. We had over seventeen hundred customers from around the world in attendance which is just phenomenal. Yeah it's unbelievable to bring that many customers together. This really isn't a conference where it's Baker used putting on our customers are the ones who are leading the monitoring the panels and we're talking about challenges and opportunities for our industry in this year's theme. We were really focused in on that energy transition and how we're going to come together to solve those challenges for industry which digital to. That was a a big theme as well but at the same time not only do we have those panels. We actually have a solution share so all of our technology is on display many of us that get to go internally you know it would take us probably a whole year to go and tore all the different sites around. Baker used to get that knowledge. That's in our solutions fair. So all of the technology that we have coming out is on display and we actually presented on Permian in Lawrence. Yeah you think it's wild to you. Go all the way to Florence to present Permian and share across the world but our presentation was on remote drilling and how we've been able to gain efficiencies with one of our local customers here through remote drilling and so many customers asking questions while I'm glad you said that I was GONNA ask. What was the number one question that people from around the world were asking you about the perm. Yeah well and that was it. How are you doing this? How are you working with your customer? And our customer actually presented with us so the rest of the customers got to hear our customer and how we worked together to stand up the remote center for them and how we've removed seventy five percent of our people off the field location and how we've been able to gain efficiencies and how we've been able to reduce in bt and they're all sitting together in a remote center so we're bringing their team members are team members and we're sitting off location and were drilling better wheels than we've ever drilled before and a lot of the customers wanted to know. How did we get there? What was the transition and we broke it down into phases and they really really learned from. Okay I can take this and I can implement it in my operation. I Bet I mean that is just incredible for them to hear that firsthand from you from your customer and seeing the fish. Nc because seventy five percent. You said you've taken us off location. That's a huge. When you think of the number wise you'd have some usually here. Ten percent fifteen percent bright seventy five percent. What has been the customer benefit that you've seen from that. So the standardization has been he but obviously safety right. I mean I think that's number. One is were removing people off. Location out of harm's way but the second benefit is the standardization between all of the rigs. That were that were operating. We're able to share lessons. Learned across the RIGS EASILY. Because we're all housed in that same remote center and in collaboration so when we see something going on were right there together and we can figure out. How do we mitigate? How do we overcome the challenge? And then we share that with the POD next door because they set up in pods for the different rigs and then we can have one directional driller looking over multiple rigs not just one rig and so again he can optimize across those rigs as well so one would think you're taking someone off location. How is that going to to work? But what we've seen is surprisingly better performance because we're able to collaborate and standardize across and really using technology to your benefit absolutely. Let's talk a little bit about technology because of there have been so many different cycles in this new energy cycle of course brings more technology and better ways to do things how has this been at the forefront of your transformation at Baker Hughes Aso. I mean obviously. We recently announced that. We're an energy technology company. Which is you catch yourself going when folks ask you about Baker US many of service providers say Oh were oil and gas company. What's really exciting about Baker? Using in our path forward is that were an energy technology company. We are helping our customers solve some of the greatest challenges as we move through this energy transition reduce the carbon footprint in our impact on the environment. And you know I feel like we have that technology in our portfolio. Not just again when we talked about earlier. The wall construction piece in the production piece. But we bring that expertise to utilize the natural gas and other ways and also measure methane. Yeah we have the sensors in the technology through our Avi toss our drones to measure methane emissions. Help our customers figure out where they're leaks are and how to solve those issues so again. It's just having all of that in our portfolio. Not just the wall construction and production. Is I think going to be really key for us as we move forward wonderful you mentioned challenges because I whenever group of people come together we always try to learn from each other right and you mentioned that in Italy. You talked about challenges. What are some of those challenges that you see moving forward in twenty twenty that we could all help each other out with and help overcome those challenges because I think as a business leader as a business owner? We want overcome the challenges that what do you see? Yes I think for the Permian in particular. One of the biggest challenges we're going to have to overcome is the fact of all the gas that were flaring and I. I covered that last year in podcasts. So they get the last number. I looked at was seven hundred. Mcs Per Day that we're flaring people who are not familiar with our industry when they see that or they're flying into the permanent night there's a very negative perception about our industry and to be honest with you. That's waste you know. But in some cases it's it's more efficient for our operators to flare than to use it and so we WANNA be that solution provider in collaborating with our customers to see. How can we take that and use it whether it's for a FRAC as which we talked about last year or is it for actual power and selling back to the grid and when we look at the Permian infrastructure for power there are large gaps in the grid and we can solve those gaps in the grid through utilizing natural? Gas into our turbines improvised infield power for our customers so me I really do. Think the Permian 's biggest challenges the fact that we've got to change that perception that we can show that we are reducing our carbon impact environment and that we are bringing energy to the world you know in a safe efficient manner that's environmental friendly you know and we all need energy right not to solar and wind because those will not tell the gap spoil gases a critical component of how we move forward and providing energy to the world. And I think when you're outside of the oil gas world you just don't realize how much energy use every day. I can't remember which podcast it was interviewing. Someone in they pointed out exactly everything in this room what comes off of energy and I just thought you know when you're not in oil and gas directly say you know when you're growing up you just don't think that way but the older you get the more you learn and the more that you're here's especially in the Permian if you're new to the area you realize just how much the world needs it and to be able to provide that energy to the world. It truly is remarkable. When you think about it is and that's something I feel like we're going to focus on this year for our employee base is to. How can we efficiently used energy? We feel like if it's not a habit at home then it will not be a habit at work now. We do have a lot of that technology already within our facilities of the automatic lights. You know the motion detection lives but again that's not everywhere right so we're really going to campaign and roll out. Term employee base be efficient at home be efficient at work conserve as as best as possible. Sore not impacting the environment and the second pieces. The recycling right recycling difficult to do here midlan and very difficult. It's a challenge if you don't make the effort that's right so simple things like we don't have the recycling pickup at our facilities. But what we're GONNA do in. Some of our offices is volunteer a rotation to take those recycles to the recycle center so in everybody raised their hand. When we came up with that idea. Oh count me in. I'm going to go on that rotation so nice you know. It may be a challenge for us to get some of the things done here to make those changes where were thinking about our environment. But you'd be surprised at how passionate our employee basis to step in and say you know what maybe we don't have that ability to have someone come and pick up. Are you know plastics right? But you know what we sorted out. I will volunteer to take it. So that's how we're going to solve and overcome. But maybe one day. We'll actually have a recycled pickup here. Midland we'll hope. Let's keep pushing for it. We can do it. And you'll kids are so good you know if you get kids going on something so encouraging them at a young age was going to ask you there any other tips that you can do as a family at home you mentioned of course if we go and recycle and drop off the light switch is is there anything else that we can do in our daily lives and get the kids involved because like I said they can be our biggest reminders champions because sometimes if I forget something I'll tell my youngest remind me of that. Yes they're on it. They'll remember in when they know something's important like this. They will encourage the family to do so. Yeah I'm seeing that lease with my children and the younger generation. They are very passionate about the environment they are in so they are kind of that gatekeeper as well recently. Just plastic bottles. How many water bottles do we go through in one of my son said? Why don't we have more water bottles? That are reasonable. And that's what I want to put my y water and but the second piece is also we adopted area here keep Midland beautiful and so getting my boys out there to help with cleanups I think is really important. And what's fun to watch as we go do that? But then they go out and clean up around Lee high school on their own right without being asked and they said well you know we're going to go and we're going to clean up Because this is unacceptable to me. That's just wonderful to see when the kids start caring about the environment as much as we all. Should you know when they started young age? It's just going to get better and better. And as they grow up and it's leading by example right they see me turning off the lights. They see me being conscious of our water usage. Because we know water here in the Permian you know it's not the greatest quality right and so we need to make sure we're conscious of that as well so we all do our part. Yes that's right absolutely. Let's talk a little bit about the ups and downs of the oil and gas businesses. We know we've seen some. Pretty fluctuating lately dislike today? We're below fifty dollars a barrel and so how as a company leader. How do you talk to your employees about that? And how do you? You know not get too worried. I guess I should say when you see the fluctuating price. Yeah I mean I think for us. It's been interesting over the last year to see that. A lot of activity that were seeing whether it's up or down is not based on commodity prices and it's really about our customers producing within cash flow and so really getting our workforce educated around that the ups and now that we're seeing aren't so much to do with the commodity prices. It's more about the health of our customers. The health of our business. And how do we manage through that one of the messages that we continue to you know make sure employee base knows here in the Permian is that we're greatly insulated from a lot of that because we are the epicenter of oil gas when we saw the activity this year in the other basins you know. Come down rapidly. We did see some activity. Come down here in the Permian but not nearly as much as some of the other areas so I think we we mentioned lash permeates the place to be it is and so we really stick to that message with our employee base. We make sure that were being as productive as possible as lean as possible as efficient as possible. So we're not impacted so much. Were more face with some of those up and downs in the business. Because we know we're in oil and gas but one thing I can't say as we have seen it stabilized And I think we're going to start to see more stabilized. Were not predicting some you know. Big crazy boom but it's nice to see kind of destabilization of activities and we're still we're still forecasted to meet our production targets for the Permian Basin so even though we've seen recount come down in commodities. Come DOWN. We still feel like this market is very healthy. And it's going to be a primary focus for us as we move forward and you know were committed to make sure we have all the people the products and services to stay in this market and you help it or get to those us. Production targets of five billion barrels per day fantastic. Yeah I know that mentoring women in the oil and gas businesses important to you. How do you see women progressing in this industry because it seems to me just being here in the Permian over twenty years I have seen more women in oil and gas? And I'm like yes. Go go go. It's exciting. So what would you say to any women that are thinking about going in oil and gas and where do you see them progressing? Yeah we'll one is. Don't be afraid. It's wonderful industry. I've had surrounded myself with just some amazing people have met. Some great friends even had family members work in the industry so one just don't be afraid to enter it and I think we're also making that transition to so you may enter into the oil and gas industry but ten fifteen twenty years you're going to be in the energy industry so I think you have so many different opportunities to move when you enter in. I don't regret coming into oil and gas. It has just been like I said you know. Just a phenomenal experience. One of the with the heart energy award. That was a question that I was asked in for me personally. I grew up with a learning disability. And so I was behind a lot. I couldn't read and couldn't comprehend a lot of. It was a struggle for me and I had to go to special classes all the way up through middle school and I struggled even into high school. I still struggled. I did make honorable but I felt like I had to work five times as hard as everyone else to be able to understand the content that I was being presented. What was my learning style and I really struggled with that but getting into oil and gas allowed me to touch and feel and so I think it's a great opportunity for women to get into an industry where they can get their hands dirty and they're going to be surrounded by people who will help them learn and that was my case and so. I don't think I ever realized that until looking back. And that's when my learning accelerated because now I'm able to be in the field or able to be in a manufacturing plant arm able to look at a financial statement and put it in real world terms and touch and feel it and understand it and that's when I learned that I'm a visual hands on learner. I am not. I'm not a test take. I'm not good at taking tests with you and I think that's a good point to bring up because I think it so often times in school with kids that this is you know and not all school because you know there's some fantastic schools that are teaching to the child and night to the test. But if you are not a test taker and you are a visual learner. And you've got to do it yourself. You know the traditional type schooling might work in that. I was right there with you and struggled in those areas as well. And it's like when you learn. You're learning capability. The Sky's limit. And I think that that's an important point to bring up two young men and women that you're not excelling in this might not be because Oh. I'm just not good at math or I'm just not good at science. It could be the way that you're going about learning and so try different method. I love what you did and you know showing the hard work will definitely pay off. It's just you have to find the way that you work right. Not everybody else spoils. Gas Can really give you that opportunity to like. I said 'cause you'll be surrounded by people who want to show you want to help you in nineteen years. Just some phenomenal mentors coaches people who showed me how to put tools together how to install nozzles how to. Jeddah Bit Your Company. Men who welcomed me out onto their locations who let me climb up and down the rigs asking all kinds of questions and if it weren't for that. I don't know where I would be right now but this industry is very open and they will help you to learn anything all you have to ask the questions. Don't come in and I guess that my last Parkas Spiel earn at all not a nodal. Just come in and ask a lot of questions and no matter. What male female. They will be absolutely thrilled to show you exactly how things are done. I think that is so true in the Permian. Everyone wants to help everyone out. That is one of the beautiful things about Oliver residents. It's not a me me me. It's Oh yeah how can I help you but I also love what you said. Be a learn at all not a note. All speaking of I always love to know what you're reading. So what are you reading these days? So I'm actually reading a book called A. Multipliers. Okay so it acres right now. We're really focusing on growth mindset versus fixed mindset so how can you think about things in a growing mindset versus a fixed mindset the way it's always been done and I looked at growth mindset researched it and I found a book called suppliers. And it's really about how leader helps that environment. How can I facilitate an environment where I am allowing all my people to innovate and create in? Think of big ideas. You know where they're not afraid to take risks and they're not afraid to bring new ideas to the table so creating that atmosphere where you're producing that growth mindset and they're able to almost like a fail fast environment where. I can make a mistake. I can learn from it but there could be a very very big awesome idea. Come out of everything so the book is in really really a good one for me. It kind of plays into my leadership style. So I've enjoyed reading so I recommend any leader to go out or you know anybody who's wanting to learn more about growth mindset and how can you get your organization to multiply that that growth mindset? Great I'm getting get. I love that. Let's talk about what you're looking forward to the most right now and this could be anything just in life. What are you looking forward to next? Ooh What am I looking forward to? Well my oldest one can get his permit next Monday so you get to take one less taxi route off. Yeah Hey hey watch out. Midland. I'm going to have a learner on the road next Monday. So that's exciting really. I think what I'm most excited in. Any of these. What motivates me? It goes right back to the theme throughout our discussion today. Which is where we going as industry How are we going to solve? Some of our greatest challenges in are impacting the environment reduce our carbon footprint in water recycling. I mean these are the things that really motivate me and I'm passionate that keep me going and excited to see you. Think about all the things. We've innovated over the last ten years about all the things that we're going to innovate in the next ten years through as we transition into this new world and we're really thinking about how we're impacting the environment so awesome and finally what do you want your legacy to be in this oil and gas business. I'm here serve so in my nineteen years in if I look fast forward. Ten Years and fifteen twenty years from now that it was really about servant leadership that. I've always been willing to help and serve anybody no matter who you are where you came from. And that's the way I was raised and it's the way that I live life everyday. Is You know who can I help today? I really passionate. You treat everyone as their number one than your business will be number one and the people that are surrounded by you in your life or number one so I think my legacy would be if people look back and go you know. Jamie was a servant leader. She served and help others grow. Because you know I find satisfaction in seeing other people. Succeed so whether it's personally professionally. If someone gets that job that they've been wanting for the last year you know. They set their sights on it. Or maybe it's a car. I don't know maybe something tangible than they set their mind to about a lot of guys want boats or guns whatever. Whatever it is that they've said I want to accomplish whether it's professionally or personally when they're able to you know do that like last year. It was Leeann when he scored that that time basket- basketball game last year. So when you see someone worked so hard and they accomplished their goal. That gives me like gratification. It's just amazing. I think you already living that legacy now. If you asked anybody they would say you do that already. So job well done. Congratulations and thank you for sharing. Today I really have loved learning more and I feel like we could talk another half hour forty five minutes to hours. But we're out of time already. Can you believe it went by that fast now? Is there anything that we didn't get to talk about? I was asked us at the end because I wanna make sure you got to say everything you wanted to say. Is there anything else that you want to share with our listeners? Yeah I think the last thing I'd like to close with is I mean. Obviously we talked about Baker using our new brand that were in energy technology and that we're bringing energy forward what I'd really like to share our values miss what we're going to live and breathe every day with our employee base. Banner customers are forced to core value as grow so we see challenges and opportunity and we learned from that every day the second core value is lead we make event and perform with impact and then the third is collaborate inspire be inclusive and bring out the best in each other and care is the last one do the right thing always for our customers. Our people and the environment. I think these speak to everything I've really covered today. They resonate with me. They resonate with our employees and our customers. And I'm really really excited about how we're going to grow leading collaborate and care and say it sounds like your personal core values as well as your love that. Jamie thanks again. I really appreciate sharing this time with us and of course Baker Hughes everywhere on all the social media platforms. They can go to Lincoln facebook website. If you'd like more information about Baker Hughes absolutely and follow me on Lincoln and you'll get to continue to see our wonderful permian journey here with bakeries wonderful. Thank you Jamie Shade you. It's now time to announce today's community. Mvp and the community. Mvp is night to shine this past weekend. Stonegate church also along with mid cities church. They were one of over seven hundred churches across the country to host an incredible night. It's a night where area adults with special needs. Enjoy a prom night and once they and they did this at stonegate fellowship. They partnered with the Tim. Tibo Foundation to host a night to shine prom and over. Two hundred area dolts. Were there dancing the night away? They were even crowned kings and Queens. And there were so many volunteers and partners. That helped make this amazing night happened. So it's very special. Thank you to all of the volunteers. What a beautiful thing and of course a a special. Thank you to the Tim. Tebow foundation fantastic and that concludes our edition of Permian Perspective. Special thank you to Baker Hughes for Sponsoring Permian Perspective Baker Hughes as we mentioned earlier recently launched new and reimagined Baker Hughes brand and has an energy technology company. They are striving to make energy safer cleaner and more efficient for people in the planet. And they're doing that every day right here in the Permian Basin so thanks again for joining us. Remember my mottos dream big believe in yourself and never give up you make it a great day. Hey Everybody Alex era the events on deck for February. We do not have any. Oh Gee happy hours in February but we do have an exciting event coming up in Pittsburgh. This'll be our first happy hour there in March and it will be taking place on March twenty fifth. The location is to be determined so be sure to follow us on facebook linked and or twitter to keep up with those announcements and to purchase tickets the Houston. Api luncheon will be on February eleventh. This will be a networking event with top oil and gas business leaders and they promise that you'll be learning something really cool so check it out and sign up for that event. The wildcatters ball will be on February seventh in Houston. This ball is the primary oil and natural gas industry fundraising event for the IP a Educational Foundation. I go toward funding. The Foundations Energy Education program the API Energy Houston three gun. Chapter will be on March Twentieth in Houston. This event fills up really quickly so make sure to get your team. Enter the best way to do so is to fax or E. Mail the form with at least a captain's name as soon as possible. If you need to wait for a check just noted that on the bottom of the form and send it on we will be sending Mark Liqueur and Patrick pistre to Scotland to Aberdeen. Scotland on March fifth. Four Doku Kahn. Which is the first event of. Its kind it is a conference for creating high impact sales in energy and Markham. Patrick will be hosting a panel and recording. Live podcast if you're interested in attending this event visit Doku Con Dot Dot Karoo Dot Com and that is d o q a. R. U. C. O. N. that's offered. This might. Thanks for tuning in and be sure to check again next month for more updates on. Og An abandoned tune in next week for another episode of premium perspective it production of the oil and Gas Global Network. Learn more at www dot org. G. N. DOT COM.
Proflo on Permian Perspective PP039
"The Permian Basin is an abundant oil and gas producing area already one of the world's leading oil producing regions the area in West Texas and southeastern New Mexico could nearly double crude oil production by the year. Twenty twenty three but who are the leaders behind this economic powerhouse and what is their story. This is permian perspective. I'm your host Krista. A skinny today show is sponsored by Baker Hughes who recently launched a new and reimagined Baker Hughes brand as an energy technology company they strive to make energy safer cleaner and more efficient for the people in the planet. Hello everyone one. Welcome to this week's episode of Permian Perspective. I'm Krista Eskimo at such a pleasure to spend this time with you as always and I am sitting here in Midland Texas with Chelsea Ray crossland. Who is the account manager for Pro Flow Measurement Chelsea right? Thanks so much for being yes. I'm excited I'm so excited to jump into your story for us to just chat like two girlfriends having coffee. It's GonNa be fun but I wanNA thank everyone who has shared our podcast with friends family and colleagues we have listeners all over the world and of course right here in the Permian Basin and I really appreciate each and every one of you feel free to leave a review when you stop by or you can also send me an email. We appreciate you. Thanks again Chelsea for being here today. So let's start at the beginning. How did you get in the oil and gas industry? Oa I never wanted to or I would never do it so owning a furniture store I was like I'm never going to be in the oil. I'm not GONNA do that. My Dad has done it his whole life. My brother was in it. You know and I was just like I'm not GonNa do that. I'm not going to be oil so I sold Chelsea race and went on to own rental company and I just didn't love it. I wasn't in love with it and you shouldn't do anything you're not in love with right and and so. I had an opportunity to sell and I did and I was like what is next. What am I gonNa do like twenty seven? I need to get it together. You know so. My Dad's like we'll have a sales position open like cool. Let's do this L. Yeah and then I got there and I was like what am I doing? I don't know anything that's going on. I don't we're talking about so I just kind of said in meetings and Kinda saw how my superiors were talking to people and what they were asking what people are asking them. And it's all about how you treat your customer and customer service in the end. I mean you can call and ask questions anytime you want. But that's what I needed to learn. That just took all that fear away. So I ended up working for crossfire for about two years and then came onto pro flow. And we're rocking and rolling. Just doing the same thing. So I'm just Kinda taken over what my dad did and it's nice it's cool that's awesome and I and I know those of you are not hearing the base in. Her furniture store was incredible and she's very talented designer. You you really are. But you're a people person like oh I just I love your energy you give off such great energy and that really translates into anything you do and then you say that you didn't want to go into oil and gas but you also grew up in it really. Yeah Your Dad. I did so explain what that was like and how that experience is now helping you and in your role today. Yeah I just think that my dad you know. He's never burned bridges. He's always do not burn a bridge and you work hard for your customers and I took that into furniture so everything. He's taught me with by in showing me what he did with his company. I've taken it with all my companies you know and I just took it with me in the oil and I just knew that you have to make customer happy no matter what. And they're always right. Committee is always always right. No matter if you don't want them to be you know so I just took that with me and it's a long way and a lot of my customers are more friends. Now you know and so. I've just taken his life lessons and moved onto my career and I do miss my furniture store but I feel like this is God's plan and this was to be because I'm probably the happiest I've ever been career wise. You know and so that's just when you know where you're supposed to be and I end. It opens a lot of doors up for me and gives me some time to do my charities and nonprofit stuff and that's what I really enjoy and so I have both of them. I can do both of them. And that's what I want. 'cause you know you want both of them but sometimes you can't do both right to constructing timing wise right in doesn't allow you to do your philanthropy and then sometimes we'll the flannery doesn't pay you so you also have to have jobs so you have to find that balance and that's what it sounds like this has been able to do for. Yeah and I think that's why I'm so fulfilled right now because I mean I've I've always said if I moved out of town I would love to get an events. Corporate events not so much weddings or parties but corporate events like nonprofits and conventions and trade shows stuff like that and my job now gives me that opportunity to be involved in events bigger events in so I just get a little. It's like a happy medium. You know that that's so important. You have to have balanced told us what pro flow does okay. So we sell pop galveston fittings. So we sell the facility's production. We do midstream all that. Good stuff and then we do actuators automative vows so we manufacture those in house but division on is pipe bells and fittings bent hell. Yeah we're like the grocery store to do. You need a pipe valve. You just walk in. You'd go down the I say that's the one and we deliver lung twenty four hours and so we kinda will work. I mean my boys have been working till nine o'clock at night and every day. This week has were slammed and we just do our customers need to do. I mean that's how you keep your business out here in a boom and bust and so when you treat your customers with respect when I think what you just said is probably Magic to a lot of people's ears right now to say that you are slammed because I think there has been a feeling of uncertainty right watching if you watch the oil and gas prices that you know. They're fluctuating but it is still busy. I think that oil is always going to go up and down. It's election year corona virus. Every we have all this stuff but I think the media makes it a little bit worse than it needs to be. I'm not so sure about drilling side and all of that but on the production side. We're pretty busy so I mean I know that. A lot of people are laying down some rigs this year because of the oil prices but as of now we're busy and I'm very grateful and appreciative of that. But absolutely we are I mean it is what it is kind of thing but I mean that's how I pushed really hard for him at probably the best group out here to work with and they just know that it's important to keep your customers happy and treat them with respect and you know always have them. I. I hope that helps us when. Or if this goes into a bust so well and I love that you are a team leader and your company and as a woman. You'd I love seeing women. Just take on those roles and I know that you know. Say Maybe Twenty. Thirty years ago when you're dead. You know turned. His company's there wasn't as many women in the roles. So how do you lead the teams? What is your key to success in that leadership role? I honestly think it's good chemistry with your people because you could have the best leadership skills and someone just doesn't want to learn you know and I just was so blessed my guys came from Chelsea raise and then they continued with my dad at crossfire us and then they came over to pro flow. So we've all been together for so long that we kind of know how to job together. You know how we work in certain situations so Brad has been with my dad for twenty five years. He's like an uncle to me and so he's the president of the company. And you know we all fall under him but it's his leadership and then you know. I help with the boys in the shop. And it's just set in that presidents that you need to work hard and keep the customer happy and they all understand that and they. You know bus there but for us and I mean I couldn't ask for anyone else and when you have that kind of longevity with your team you know each other strengths and weaknesses. You can help what we call around here that we learned from an amazing business coach. Debbie FRAPP he. Sometimes you have to hold the ladder. Yes I'm one and you know when you've worked with someone that long you know who needs her ladder hill. Yeah and then you know they'll know when you need your help. Yeah it and I take the new one new people coming in. They see that can watery and they want to join that. WanNa be a part of that and you. Kinda just don't allow anything else. You keep what's going on. You know you keep that attitude and don't let anyone else change it you know right in. So that's import whenever you just Kinda set that tone and this is what it's going to be. I mean they have no choice. Probably not going to be working there. I mean you have to set the tone of how he wanted to be in. Don't ever you know exterior from that. You know. Just stay on that exactly. So let's talk a little bit about your Philanthropy Day without is so important to you and you have a big event coming up and we're GONNA talk about that a little bit more but I wanNa talk about how you got into philanthropy and white so important to you. It's important because I've been so blessed in my life and I feel like it is very important to give back to community. I think that you should give back nationally too but I think that it should mostly be in your community. What can you do in your community? And that's always I mean through church and my parents and stuff like that of always just wanted to give back in. I've fallen I think else has their own opinion. On what organizations they love and whatnot but mine have fallen in Lake. The children with the Youth and American Cancer Society and I got brought into American society with decorating and because Chelsea raise than than I had a rental company and so they asked me if I would donate my time will then I just fell in love and now it's my fifth year and I'm charing this year and so I'm co chairing with Adrian Noble. But I mean I was driving down the road one day and I was like. How can we feed these kids? You know 'cause we'll right now probably about five hundred kids. Go home on the weekends with only food. And that's the garden through senior it's heartbreaking. Yeah it's so sad. I mean I couldn't imagine going home and not having anything to eat and so there's a ton of other organizations doing it but I got locked in to rope youth in on their board now and we started a program where we pack bags on Wednesdays and we feed them every Friday so we give them a bag to take home every Friday and you know we met a little boy and he said he has to make that work for the whole week and it's just so sad and you know junior highs are getting beat up for having the bag so we're trying to really hone in on how we can get these back to these kids without being embarrassed bullied. Beat up whatever you know. And that's our main goal and also paying off the school debt because if those kids have school debt the lunch debt then they get arts cut field trips cut and they'll just just things that you need you know in your school other than just math reading. You know you need other things you need. Art and kids need to be kids. It'd be worried about whether lunch account is caught up and we've had a teacher reach out and say you know that helps us a lot. Because that's less supplies. I have to buy. And so that cuts into their own money their personal money and so we're just trying to do better for our youth in where we now started a youth coalition to kind of figure out like kids getting in trouble how we can help them. Kids not eating. I mean it's just like all aspects of youth coming together and figuring out how we can really fix it because it's important and they're our future and I just don't think that any kids should go without eating and you know rope youth we do a young gentlemen's club and they get a suit and tie and they learn how to iron. And how did you resumes and how to just do things to become a gentleman a tie tie and so you and we just mentor them. And it's just sad that things that you see mean. Some kids won't even go into cafeteria because the lunch ladies like you. Oh this you know and I think yeah and you shouldn't be shamed it's not your fault not I mean whether it's if parents fault or not. It's still not their fault. Absolutely then they go on to have being bullied or just have that fear that anxiety and that's not fair no you know and so that means a lot to me because I mean I have four nephews and I love him to death in there my world and I couldn't imagine if they were in that situation you know well thank you for doing what you do in our community. I knew you personally so I know you're not just one of those that talks about you. Walk Yeah I know you were you. Were working hard. And usually I announced in our podcast at the very end after our interviews always announce a community MVP. But I'm going to announce today's because you're part of it and so I thought you. I thought you could talk about it better than anybody but we decided that this week's community. Mvp would be the American Cancer Society and the volunteers who are working on roundup. Twenty twenty under the big top so we are. You could go ahead and explain what the big event will entail so we just had our children's party which is awesome becky young chaired dot and so we had at the planetarium and we had family show up. The kid either has cancer or survived from it and we invite their whole family Kane sponsored it so we got some good canes and then we had musicians. We had a Selfie play as we had tied. I we had painting and they just enjoyed a full day. And then they're making a bowl or a base out of their hands so we auctioned off at our live auction in those usually. Go for a high number. 'cause they're just awesome in that goes to children research but are roundup is on April eighteenth. And it's under the big top. So it's circuses and we usually do a western theme in this year. We were like. Let's get some exciting. You know. Change it up. So we're excited in Matt News performing which we're so happy about because we're keeping it in the community and we think that's really important as well as in so Odessa Midland. Come together to put this whole thing on. We have a huge committee this year. I'm very grateful and appreciative them. They're awesome so we're going to have pig racing. It's so fun and just a lot of carnival games to like wine toss. We're GONNA have a liquor. Toss for the guys shotguns and shells and then we have a chanel to be raffled off as well and then we do yellow roses. So if you want to buy a yellow rose for someone that has cancer survived cancer or in memory of so we are very excited and Kathy. Broten and Jason. He's a little eighteen month old. Little boy they're going to be in honor of and they've survived cancer and then. David farmer is going to be our in memory of so. We're excited. That is so excited. I'm excited for the Chug. Wagging is going to be our hater. So their foods amazing and this will take place April. Eighteenth at the Melon County Horseshoe. Yes and how can people get tickets or tables or be a sponsor go online to American Cancer Society? Or we have round up the cattle baron's ball on facebook contact me. I mean there's endless opportunities there but yeah you can contact me on facebook or give me a call for three to six six four two zero two four and I get your sponsorship form and we're still looking for underwriter so I mean there's plenty opportunity get involved until we'll sharing that. I know that that's important to him so I thought what better community for this week. Show the nine. You know a lot of our stuff stays local and it goes to research and so we really like to push out and let everybody know that. Your money's not going national you know I mean there are research opportunities that we will put some of the money into but a lot of it's as local in the hope lodge in Lubbock and you know car rides to appointments and stuff like that and that's needed here and the whigs and all of that good stuff so we are local as well fantastic. Chelsea. I know you've lived here your whole life. What do you think makes the Permian Basin so great? I think it's gotten huge. You know better than when you were young. The small town feel like the football. You know everybody knowing each other. Everybody being involved in events in nonprofit stuff I think that in I mean with the shooting instead of every how everybody came together. That right there just shows you how good of a community we live in. I think that sometimes we forget it because all the traffic and all the craziness that the oilfield has brought but when it really comes down to serious events we come together and we say strong you know so. I think that's what's great about Melinda absolutely. What about favorite Booker podcast? You have a book that I love. Melissa Radke okay. She's just like my type of person like the sarcasm in the way you know how love her so probably her okay. I'm have to listen to her. Yes I listen. Every morning her and her husband on facebook they do alive. And they're just hilarious. Okay fantastic. What about a quote favorite quote that you live by? I don't know I kinda like innocence. Fake it till you make it but not so much fake it you know you just have to push through hard times and no matter. What just see your goal sier dream and push through and dilemma. Nobody bring you down. You know that's one of my favorites I say don't let anyone steal your joy. Yeah anyone I don't get mad because it's so easy to do and you could. I mean going on facebook and just looking at people's pictures can bring you down and it's just like that's not real rhino. You know what you're doing. You know what dream you hob. And what goals and just keep moving forward. It's right and if it's God's plan it'll happen and everything happens for a reason. I truly believe that you were talking. My where does how I believe? One Hundred L. I you know I hated things that didn't happen for me and I'm just like this God's plan and this is what's supposed to be in. I live by that so of great opportunities. Don't open them like there's a great one coming that's right. What about the most important lesson you've learned in life? Kinda just to be true to yourself. Don't let other people make decisions for you in a sense. Don't let them innocence. Bull you or make you change your decision because you don't think it's right you know. Stay true to yourself. What about your parents? I know there are strong influence on. Yeah you learned anything from them that you think. That was the best advice they ever gave me. Yeah it's like I said earlier. Like don't burn bridges and just really like stay true to yourself in be who you are because you know. I've never seen my dad. He's not like he has great friends but he's never an like click and he's never done things that you know people want him to do. He does what he thinks is right and for my mom as well and so. I think that's what they've religious truly taught me if whatever you feel you need to do pray about it. Whatever comes to you. That's what you need to stick with Indu. Don't let anybody influence you right so I think that is probably one of the greatest lessons and be close to your family. I think family is number one and he no one loves you more than your family and I mean I'm very close to mine and so I think that it's very important to be close to your family though true so for those of you who are not here from the base and may be explained who your parents are just. So they'll know who your your dad's company was okay so my dad's running crossland and my mom's norm across Lynn and he owned production specialty for about twenty twenty five years and grew up in Andrews. Oh well they grew McCain their high school sweetheart. Oh Yeah we just celebrated thirty six January. Yeah so and then I was born in Andrews and that's where my dad started his first store. He grew to twenty two stores after that and sold once bought it back sold again. And Yeah. It's been a ride. But and then I have a brother and he has four boys which is crazy town over there and then my sister-in-law Marcy she owns AMC aesthetics. So yeah we're all Kinda here actually. My parents just moved to Bernie but they're back and forth there. They're still here. Your Whole Family. The rocks that is us. Thanks for sure that we are those who maybe don't know that because we have listeners now all over the world which is just fantastic and that love to hear what's happening here in the Permian Basin. Sometimes us that live here. We forget that we are such a big energy provider for the world and so it's exciting to hear the stories of the people that really built businesses. Yeah it's crazy. I mean I mean like I said my dad sold out and then they started edge manufacturing and then crossfire and then we sold out there too. So it's just we've kind of tried to build up companies and then you know sell them. Yeah what have you learned the most from the ups and downs of the oil and gas industry. I think in that comes back to how you treat your customers. It's treat them like you're gonNA treat them in a bust because they realize that and they see that and if you don't treat them good in a boom because other people are more important r giving you more money than they're going to remember that in a bust and I mean you won't get their business and that goes for contractors or you know anybody you always should treat your customers with respect and I think that that will get you business in the long run. Buster boom 'cause I mean you really remember how you were treated and who had a little power trip you know? 'cause that's big out here get some power you think you can talk to people a certain way and so. I think that people remember that right absolutely good advice. If you had a piece of advice to give to someone who is maybe you know on a similar journey as you are and is maybe trying to get into the oil and gas industry. What advice would you give to them? I think you should study the company that you're going in with really. Just sit on on meetings. You don't need to be in you know stuff. That doesn't really pertain to you. But you can find out the INS and out of your company you need to know every little aspect you know because like mine. There's so many parts so I'm literally telling Barks Hearts. Yes there's so many parts to it and I'm constantly learning and I I mean even Brad. He's constantly learning and he's been in it for twenty five years you know and so just learn and study study study and then get to know your customers and if there's daughters has a birthday wish them a happy birthday or birthday or you know they're having family stuff. Hey just thinking about unions like you have a personal relationship with them to an extent you know but take some bundt cakes or something sweet. Nothing Bundt cakes about them on the holidays. You know and just really get to know them and make them feel like they're important to you and that's what's important right good advice. Yeah what are you looking forward to the most right now? I'm looking forward to acs for that round up. But I'm looking forward for. We're growing right now with pro flow and I'm so excited and I'm trying to slowly do it but I'm really excited to see where we're going to go and what we can do out here and also what we can do with the fruit program with rope youth. I think that youth coalitions GONNA do wonders and I'm excited to be involved in that in see where we can go with the youth so fantastic. How can people get a hold of you or your company on Social Media Online okay? So pro flow is on facebook and Lincoln. And then y'all like I said you can call me four three two six six four two zero two four and just I mean I'll pick it up anytime of the day. My email address is C. Crossland so C. C. R. O. S. S. LAND AT PRO flow P. R. O. F. L. MEASUREMENT DOT COM and tastic. And One more question when you're coming into today. Was there anything that maybe we haven't talked about yet? That you're like Oh. I hope that heard listeners. Get to know about me or my companies now. I think that it was really. I wanted to talk about pro flow and and then like American Cancer Society and stuff so now we got it all. We got an awesome fudge. I'm excited we. We were just visiting if you're just joining us and hopefully you've been listening the whole time but if you are just joining us just wanted to remind you. We were visiting the Chelsea Ray crossland account manager for pro flow measurement but she is also so philanthropic in our community and born as West Texas. It's just been such a joy and pleasure to hear your story so thank you. Thanks for having really appreciate you. Yeah well that's GonNa do it for today's episode. That's right. We already announced our community. Mvp So once again the American Cancer Society was today's community MVP. And of course a very special. Thank you to Baker Hughes for Sponsoring Permian perspective. We really appreciate Baker Hughes in their support and of course we thank all of you for listening and sharing this time with us. So that concludes this episode of Permian Perspective. The story behind the oil and gas leaders in the Permian Basin. Remember my modest dream. Big believe in yourself and never give up. You make it a great day. Hey everybody Alex here. With the events on deck for the next month we have some exciting things coming up to happy hours one in Pittsburgh and one in Denver so the first one will be happening on March twenty second at Bubbas Gourmet burgers and beer. This event won't be from four to seven and will feature live recording of oil and gas this week with Jake Corley and Markel Corp so be sure to check that out. You can sign up the our social media's we have an event bright sign up and should be good to go from there. The next event will be a happy hour in Denver at Liberty Oilfield Services on April second once again. Check our social media's for the event bright sign up and sign up there as some of our social media followers may know we are headed to Aberdeen Scotland the first week of March in a couple of days actually for Doku con creating high impact sales and Energy Dokru is excited to launch. Its very first sales development conference and Obgyn's mark and Patrick will be hosting a panel and recording live podcast. So we're really excited to be joining map. The leaders in industry luncheon is on March eleventh at the Petroleum Club of Houston. Port of the future is happening on March tenth and Eleventh in Houston your registration to the port of the future conference also allows you access to exclusive events including TSA security and terrorism research showcase and many more so be sure to view the agenda and see what they are offering the Houston energy. Breakfast will be on March twentieth at the Norris Conference Center in Houston the API Energy Houston Gun. Chapter will be on March Twentieth. This event is filling up very quickly so make sure to get a team in as soon as possible. The BP Energy Outlook Twenty twenty edition will be on April twenty. First it's happening online. And this event is about transitions that will take place to a low. Carbon energy system offer this month. Everybody hope you guys have a good and check back in next month to see what we're having thank tune in next week for another episode of Permian Perspective a production of the oil and gas global network learn more at www dot obgyn dot com.
Coronavirus | Saudi | Russia OGTW198
"You're listening to the oil and gas this week cut cast with Martin liqueur and decor so for privy or frozen quickly. Want to keep their finger on the pulse of what's going on guys walking by two hundred this week podcast into episode one. Ninety eight house quarantine mark. We're good everybody's healthy. We have food and toilet paper and and everything else but it's You know we got much bigger stuff going on right now than than what's going on in quarantine and and you know usually Janai have some fun doing this. And we'RE NOT GONNA make it all doom and gloom but there are some serious stuff going on in the world right now yeah. It's one of those things that we need to. I spent a lot of time on a you know putting together our notes this week and really kind of district and the information and there's so much play we're talking about global macroeconomics we're talking about how the corona viruses. It is affecting everybody we're talking about. How will prices lower prices today is gonNA affect everybody here stateside in also wanted us to kind of dive in and recap for those who are just tuning in for the first time? Exactly how we got to this point so before we get there jake. Let's go do the reviews so our first one is great August. Podcast by Francine d action. Francine D is a talk to her husband recommended. Me LISTEN TO PODCASTS. Keep up today with. Og News really love. It will be ready to my colleagues and friends and then another one. An apple podcasts by PLOPPING IFFY IFFY. I appreciate the show cool shirt and then this final one from Kelly. Down Three two one. What so with the data conversations first Friday release eleven days later Kelly. We try to get stuff out as quick as possible. But between Jacob Normal operations were so busy and now with all this late on top of us you know. We're struggling to get shows out so apologize. It was eleven days late but that's probably not going to change anytime soon. So we know it's an issue but it's we've got other bigger fish to fry subject. Let's go ahead and get into your opening here because you did do a whole bunch of work on this people. He's probably you know till two in the morning. Getting all these facts together so as all of you know we're in the middle of fighting a global pandemic probably for the first time really in our life of this scale. That's kind of coinciding with the Global Recession travel bans restrictions are enforcing social distancing. So mark and I been cooped up at home as I'm sure most of you have for at least the past few weeks restaurants bars gyms or places of shutdown and that's been tough ame- have been able to work out have been able to do anything other than just stare at the walls house. Most of us are trying to get accustomed to working remotely from home. That's completely new. To most of the oil and gas industry and last week we talked about Russia and Saudi Arabia not reaching agreement with the rest of OPEC and how the bottom has fallen out for oil prices now with everyone. In quarantine of businesses close a global economy is coming to a halt so it will demand has dropped more than ten percent down from our normal hundred million barrels per day. Down to less than ninety million barrels per day the accelerated drop in prices even further to new lows that we haven't even seen in decades mark. Maybe you've seen I haven't seen oil prices quite this low. I saw twenty five six back in fourteen fifteen but this is a complete isn't new. It has twenty. I saw it in the eighties. Get LOWER THAN THIS. But that was a different combination of factors than and that scared the bejesus out of everybody then right now with this like perfect storm of the crow virus with the low crude prices with literally countries being locked down here in the US. We have several states at the literary. It's the state's entire states are locked down and you combine all that with social media where people can instantly find out what's going on and as a population. We have never experienced this before we have you know. There's this is usually where I shine. Start making predictions about stuff. I have no experience at all nor does anybody know political leaders know people know doctors know podcasters. Nobody talking crap on twitter or Youtube or whatever. Nobody's been through this. Nobody can use experience a state where this thing's going but it's Jake for the first time in the extremely long time I'm worried I'm worried too and it's one of those things that so today's episode going to be a little bit longer. There's a lot to cover. We WanNA unpack this situation by no nor mark had the solution to the situation will WanNa try to give you all. The facts spent pretty much all of yesterday in the day before just reading everything I possibly could get my hands on the really try to assess the situation because it's concerning it's very concerning we don't really know what's going to happen elitist imperial report that everybody is referencing is saying that this can last twelve to eighteen months so then the question becomes can we all self quarantine for twelve eighteen months without completely destroying the global economy. And if not what do we do do we? Just accept the fact that we're going to infect other people in. There's going to be more deaths. You know I'm really curious to hear everyone's take so. Please write in if we get any of this wrong. Please let us know. There's just so much uncover so mark. Do you WANNA start off. Had It all this began. Let's go ahead and recap everything that happened with. Opec not agreeing. You want me to do this. Yeah sure so. At Crown Prince Mohammad Bin Salam single that Saudi Arabia was once again going to produce oil to maximum to crash all prices in full skill. All price were basically Russia in Saudi Arabia. In this price war Russia has a budget break even price of forty dollars per barrel and then Saudis is eighty four so Russia can produce over eleven million barrels per day easily in Saudi averages. About eight million barrels a day so. Russia's major oil producer. Ross neff has been begging present put allow to produce more oil since the OPEC arrangement. That was I group upon December twenty sixteen so by the Jake NBS Mohammed bin. Some on. Okay let's the crab prints from Saudi Arabia. So he literally escape Russia what they wanted and as a Friday reported increase in production which has caused WTI drop from twenty five back down to twenty three dollars. This is crazy. I haven't seen prices this low. It happened so quickly and once again like we talked about earlier. This is literally price war between Russian Saudi Arabia and a lot of the American especially the service companies as today are the ones that started. Take casualties yes. Saudi Arabia is coming in and saying to Russia. Hey we're GONNA increase production and Russia especially Putin probably fell off his horse that he was writing shirtless and was like he was like. Okay go ahead. Let's see what happens in. So how does this affect to them? So let's start with Russia so before rush increase production on Friday today Saturdays. This would have been yesterday. They want to try to lose more than forty billion revenue lower prices than it's expected to be even higher now but when? Russia runs in a deficit. They pulled from their sovereign wealth fund AK Their National Wealth Fund. So at the current rate they can last up to five years. Okay that's just with him being in a deficit but they can weather the storm much longer than Saudi Arabia can. So how does this affect Saudi Arabia? So Saudi Arabia's own Deputy Economic Minister Mohamed Al to hurry stated unequivocally in October that if the Saudis tried this exact same strategy from two thousand fourteen in two thousand sixteen and if the global economy stays the same which has an obscene devices accelerated things. They are doomed for bankruptcy at three or four years into this and so that's their own economic minister saying the exact same thing if they tried this. It's like an workout well for them. So here's the interesting thing we've talked about Saudi Aramco's IPO over the last probably eight or nine months everything leading up to it them going raising a ton of money being valued at the most valuable company in the world two trillion dollar plus market cap. Here's the issue. Saudi Aramco is currently serving two masters the public so the Kingdom and its shareholders the population there in Saudi Arabia. Twenty percent of the population actually invested in the IPO was a little bit speculation That they were forced to invest view. But still everybody is incentivized for Saudi Aramco to do well so Saudi has committed to a seventy five billion. Oh a dividend to police shareholders before the kingdom gets paid now with all this is going on lower oil prices and everything else. It's going to be enough cash to even cover that so. The question becomes will the kingdom pay itself and if it fails to provide the dividend funds the government anyways. It shows that Aramco is still a tool for its own power and not a public firm in so faith in the company should be lost and we'll be lost an especially as it completely take so in practical terms that means if this takes longer than we thought by Russia for Saudi to go bankrupt and it starts to have any negative impacts on Russia than Moscow will just click fingers together and reliable. Come running and sign a new OPEC deal. Yeah so there's some other variables that complain this and once again. I don't know this is just me talking out loud through some of the other possibilities one of which is we as the as a US producer we actually if we want it to out produce both Russia and OPEC at the same time and they know that now we won't at this low crew price of art but we could and jake darn it if I was president got opened. The strategic reserve fled the market a put tax incentives to make our operators get whole financially. But make them produces much as possible. I think I'd bring down a five dollars a barrel for while bankrupt both Russian Saudi Arabia. 'cause we can recover from it. Our economy is not dependent on represented hydro-carbon stairs is the other thing that could happen. Is Our government could pace taxes or tariffs on imported crude that would artificially prop up the US market once again you know. Do you pull that lever. There's not a lot that we can do right now although it was interesting to watch trump say that he's getting ready to look into this and I believe that was yesterday and all prices went up temporarily because of the perception of him actually looking into it so just shows you how much perception can move this market around. And this this Luke Crew. Precious can't continue. What scares me is the fact that you actually dug up. In the fact that if Russia needs to they can continue this much longer. Saudi Arabia can much much longer. And so I'm seeing at twenty five dollars a barrel from everything that I'm reading. Russia can last ten years with their strategic reserves and then Assad can manage to to five years kinda given where things are at currently at most in so remember. Saudi was the one who started this not Russia. So what we need to do is we need to get Saudi back at the table and agree to the production cousin. So let's talk about. There's different hats so I agree with everything you said about. Our economy is not based or rely on one hundred percent on oil and gas for energy near as much as the Russians or Saudi Arabia. Saudi Arabia's sixty percent of their entire income comes from oil and gas however. So there's two hats so there's the global or might nice citizen hat and then there's the me isn't willing gas professional hat in obviously completely flooding. The market would completely ruin most of our industry for so long. So let's dive into. How does this affect us? You know we're seeing a lot of layoffs are seeing a lot of furloughs so let's talk about what's happening to Washington so oil abusive already pushing. Congress for help you seeing Republican senators pleading lettuces Saudi government tobacco price for. There's little evidence to suggest that a dozen. Us Energy will be able to convince Saudi Arabia to change course trump saying that he could intervene in the price. Will were Saudi Arabian Russia. And we saw the price of oil go a little bit resolved sasco of just a little bit. Everything's still down. But it's from where it was but searching for a medium ground to kind of break the deadlock as lawmakers are trying to figure out how to help our domestic oil and gas industry so trump's administration is planning on eating struggling. Shell drillers involving by as much as three billion dollars worth of oil from domestic producers employ. Five thousand people or less. This is a short term solution. We don't have a ton of capacity in the strategic reserves. I think this can last four from what I read a little over a month in terms of US actually filling of strategic reserves and then full. And then what we do you know so. I don't really see that is a long term solution. So what is the solution mark? You WanNa go first. What do you think is a solution? I I've got a couple different options. Kinda laid out that we can get dive into yet. So everybody's talking that we need to cut production and that has bothered the Ba- gebes out of me. Since I started being mentioned a year ago and you know what Jake maybe. That's the right way to go. You know it's a global commodity weird now can be the swing player in all of this. My my problem with cutting production is then you're having the government step in until private companies what to do. And that's a very non capital very thing to do but it might be might not be. It might not only be the best solution. It might be the only solution. Yes Oh man. This is hard so I guess. Kinda falls into two categories. Do we play ball on a global scale. Do we go and sit at the table with. Oh Pag I saw Ryan Sitton. He's one of the railroad to. He tweeted out that he has been invited to view the OPEC meeting. I think at the end of March or early April June June proposed pointing at the krona pandemic. So do we play ball? We set the table with him. And do we agree. To any production cuts on a global scale. And I think I could be wrong. Could be the first time that we've actually agreeing. Production cuts at kind of the global stage. We have done production cuts as a state Texas nineteen seventy-three or do we play hardball. Okay so let's kind of dive in these one of those in so Texas Commissioner Ryan. Sitton proposed plan in which Texas which is the world's third largest oil producer to join the two Wilson powers to curb supply asking for supporting negotiate with other countries. So this is taking the. Is this taking the route of we cut production as well? You have to understand the kind of the backstory with Russian Saudi Arabia's. They've been upset with us for a very long time. That they have agreed to production cuts to help stabilize oil prices. And we have it in case. So should we be at the table? Should we not Ryan said was quoted as saying I've heard from operators on both sides for and against it but I want to open dialogue. I WanNa hear from various groups on this issues. Operators economists and statisticians but from the reports that I've seen at Bethany the Texas production cuts could stabilize prices at around thirty dollars per barrel. Don't know if that's true or not and break even for most producers is actually much higher than that so it's probably still have tens of thousands of layoffs which were already starting to see now. It's it's really interesting to think that the state of Texas in Ryan Sitton. Who's the former railroad? Commissioner is going to the table as an eagle with Russia and Saudi Arabia. But you know Jake. Maybe this is the thing that needs to be done. I this Lou crew price environment. Can't we can't the world can't take it for a very long time. And it's you know it's just there's a supply and demand thing right now and the thing. I'm worried about is that perception right now is slowing demand along with the loss of airline flights and that sort of stuff but the demand is actually gonNA take another nosedive in probably another week or two as more countries in more states. Us get locked down. There's less travel. You know so for me. There's no clear line of sight of what's the exact right thing to do. Yeah it's a supply and demand problem the exact same time and it's really hard to figure out. How do we solve this so we talked about? Okay so do we cut production and doing play ball or do we play hardball so on the other side of the fence you have said Senator. Kevin Kramer from North Dakota has already road president trump calling on him to embargo critical from Russia Saudi Arabia and OPEC COUNTRIES. But the thing is that the. Us Now produces twelve times more oil than it imports from Saudi Arabia. Which now represents only nine percent of. Us oil imports? So mark is that I think you understand this. A little bit of an idea on the import export side. Is that really? GonNa make a difference or is this spoken the Hornets Nest. It would make a difference. The problem is we like an import heavy complex crews and we produce light sweet crudes in so our refineries and petrochemical plants would have to retrofit and that's capital intensive in time in the market where there's people probably wanting to hold onto their capital and there's still companies out there able to play dividends in those dividends help foster the idea that we're not slip into a recession so that people can companies continue to spend money so we actually don't slip into recession so once again it's hard one to call and it's all happened so fast if we would have had six months to to make these types of decisions. I think we could have charted a very good course what's again will. The import tariffs raise prices here in the US. Yes is it a long term? Fix Jake I duNno. Yes so I guess my question is. Can we even afford to play hard ball? So given the current state of the industry particularly shale. She'll company stock. Prices have been absolutely in the dumps especially over the past year when we talked a lot about this but now with everything that's going on it seems like I don't know how many survive so here's a list of certain companies at various stages that are currently exploring debt restructuring which includes widening petroleum Antara Resources California Resources Chesapeake Energy Chesapeake Energy at one point in time the market cap was bigger than Chevron. They're crazy that's absolutely nuts and gulfport enter energy. Is the last one on here. So a lot of companies are on life support. There's a few exceptions Exxon Mobil and Chevron and so which is Chevron region into an interesting point so you know obviously Chevron made a bid for INA Darko Awhile back right and then oxy album them with thanks to some ten billion dollars in cash from Warren Buffett but now oxy's market cap is like I think one fourth one fifth of what it was before the acquisition went through and so now it's the question becomes they have a ton of debt. So that's only reason that this wouldn't go through but could Chevron in theory come in and purchase oxy's slash for a fifth of the price. Maybe what they were going to buy it at our good for so the oxy Darko thing. I didn't mean to call it but I did a while back. If a new Chevron could wait and as they tanked just pick them UP FOR PENNIES ON DOLLAR. I had no idea this would happen. Chevron has the cash Chevron could pick them up and acquired their debt and be okay financially. Now will do it. I don't think so. Yeah so let's talk about break even so we break evens of Saudi Arabia tugboat brick evens of Russia but shale in two thousand fifteen the second highest break even price in the world at sixty dollars a barrel now cost of fallen substantially. Thanks to a lot of improvements in technology is just getting better than break-even now on average is around forty dollars per barrel. Obviously there's a million different variables that go into that from company to company from base in the basin but that is still a far cry from the twenty three dollars that we're seeing today and so we've seen a lot of elemental hailed him. Go to the White House and saying hey trump. We need a bail out. We know bail out. We need a bail out. The Banks. The need a bailout. Airline companies are saying they need to bail out. Defense to like Boeing need a bailout on the aerospace side in on the the commercial airliner side. I don't think we need a bailout. Okay and there's a reason we don't need a bail out in this because a lot of the shale producers have been drilling WTI into the ground for the last decade and getting rich expensive shareholders. We talked about this bailouts. Don't teach anyone lesson. Look at two thousand eight to the banks on the lesson. I don't think so. So they did learn their lesson but it definitely changed the rules and only seen some experience. Because I bought a house in of last year was the most scrutiny of ever been through your think I was applying for a CIA job but it definitely changed the rules. But I agree with you. What we don't need would actually would make it worse long. Term Wise. Is the government step in and start? Writing Producers are upstream operators checks especially since some of those upstream operators a dispute crew price might use that for something else you know either to buy back stock or to refinance debt instead of getting rid of debt and they may still lay people off and to your point there capital inefficiencies in upstream in the US. Alaska years it just is not a good business model needs to change. Yeah and I think we know. The gloried is a production growth over everything or are gone. It's time for a lot of these companies to evolve die. You've got operate within cash flow and that's just not that's not just a lesson for businesses that's also lesson for us as individuals are tired. World is built on credit especially a lifestyle that we joy you're in America but it's times like this for cash is really King. Markets a crushing. We'll prices are down. Cash is king and I think we need companies and as a nation to learn how to save some money not to get off this subject but I made a huge miscalculation of the market and I bought a whole bunch of stuff. Friday figured it would go up on Monday. This is a couple of weeks ago. And then when they announced that the government's dropping the interest rates federal drop necessary. I was convinced they're Gopal Monday. And then the bell opened on Monday and everything just tanked and so. I'm not lose money but I'll have to sit on this for six months or year money-back so and the whole reason bring it up to Jake's point you know a lot of people a like me have a decent income from the market. What happens when the market disappears? Which is what's going on right now. We'll income dries up and so I may eventually. I'm sure we'll eventually get back to where it was before. But now that revenue that used to fund my household has dropped by eighty percent. So once again it's operating Your Business. Profitable business instead of worrying about growth is really the way we always do whether it's at your household or you know you're running hundred rig operation out in the permian somewhere. It's funny I haven't heard a single thing about espn last week's attack. That just disappeared so unfortunately I wish we could turn to to more optimistic stuff but layoffs and furloughs have already begun. Halliburton announced furloughing. Thirty five hundred employees and essentially have their pay cut in half. I've already been tens of thousands of layoffs in the Permian alone so I know some of the biggest companies from the fast growing companies in the space with effector on the tech sector nor to beginning offs. And so it's also it's really unfortunate in two thousand two thousand fourteen thousand fifteen. You and I both lived through that and I think the numbers I found. Were we had really close to about two hundred thousand layoffs. During that time you know and it's a hard thing was talking with my buddies who runs a pretty nice size. Emp here in Houston and they had forty people in the office and they are now down to eight. He cut his pay. And all these staffs paydowns who a quarter with an early getting paid and they said that all they've been doing is cutting cost cutting costs cutting costs just trying to survive. Anyway they possibly can you know. And so it's hard on business owners entrepreneurs Dass do that in his heart on the people who were working. Because now you're you're out of a job especially in a global pandemic and you can't really go out and apply for any new jobs in so it's absolutely catastrophic so now heart goes out to everybody is going to be affected by this. You know tons of people have already been affected and more people will be of it than we still too early on to see where this thing's going to go but people are being Leonov. Companies are cutting already in the the people were about the most of the ones that are on the front lines. A lot of live paycheck to paycheck. A lot of them can't go moth or two or three without having any money coming in now there are just for anybody that's out there listening especially if you're in the Texas area. There's some good temporary news out there. Heb Kroger Amazon and Walmart. All hiring like crazy right now yes. You're stocking shelves at midnight and yes and no. It's not as much money when you're spinning wrenches out in Midland Texas. But it's still a job right. They can't hire enough people so the other thing is interesting. Jake talked about this. Before we turn the microphones on but you're starting to see companies chip in and do really cool stuff right. Take caps off band with. At and T. To that they did that. Hats off to them. You're seeing a lot of companies volunteer. You'll see a lot of companies. Give stuff back you're seeing. I think it's really cool. J You don't you probably remember the history of this but during war to a lot of automobile manufacturers in. Us switch making cars to make an tanks an airplane engines. And everything. You're seeing. It happened right now. You see in GM for Rory and believe Chrysler. Switzer manufacturing start make respirators right because they got the same thing the so they got the mass manufactured output. Just give me the blueprints for the respirator. Get those out to. You're seeing local communities come together. We did this little campaign where we basically went door to door and stuff notes on people's doors saying hey look during his time if you need something to run a grocery store for your work or dog or whatever let us go and Jake. I now know all my neighbors. I didn't know my neighbors for this happened now. I would like to have known my neighbors in a different circumstance in this. But there's a lot of positives coming out of this one of the things I don't like is nobody knows where this is google. Nobody knows what's going to happen. And yet there's people out there screaming doom and gloom and maybe it is doom and gloom. But do you really really want to be remembered as that guy on the ten. Tadic those talking about the boat's sinking as the musicians. Continue to play. Everybody remembers the musicians that continue to play. Not The guy that screamed. The boat is sinking. So since you don't know what's going on. Try Not to add to the public hysteria. It's bad enough where people are getting fistfights over hand sanitizer. You know where there's police in my local grocery store you be optimistic. Be Open minded and be a realist right because this is trying times and and but you don't add to the negative public fever. That's going on there because it doesn't help anybody. Yeah absolutely so I think during this time I'm actually already blog post on my side later. Probably this week talking about you know. We're we're moving into a different world. I think this is going to be a major pivot point for how we operated society. I think everybody's eyes have been opened to remote working silicon valley a lot of other companies have been doing it for a long time. It's completely nude oil and gas and so I think as a result in especially if you're laid off realize that you are not your job in so if you're laid off in you have to take a lower paying position there's no shame in that whatsoever in the second thing is also realized that the Internet is the greatest tool out there so during this downtime you have time on your hands and you know aren't able to find a traditional job. There are ways that you can learn skills online for free you've got you've got you demi you've got. Khan Academy you got all these kinds of things and then you also have the Internet as a tool to turn around and use those skills that you just acquired to make money on things like upward and fiber and other freelance type platforms. The GIG. Economy is a wonderful thing. The Internet is amazing tool so learn anything audio editing video editing. You can be a virtual assistant. You can be an Admin and if you don't do those things you can learn those things online and then sell those services later online. So don't think that you have to stay in your lane. One hundred percent during this time. Find a way to make yourself valuable to someone. The world's very big place so keep your heads up. If there's any way that we can help feel free to reach out or more than happy to try to do whatever we possibly can. Even though you know it's a little bit limited given twenty dollar oil so just take care of your loved ones and make sure that you're prepared for all the people at their buying toilet paper. You really probably should be buying dried rice and beans stead. So if you can't get the grocery can feed your family but you know just keep ahead swivel. The Open minded be realistic about stuff. We're GONNA keep you all posted. You know this thing is just in the very beginning of. We don't know where it's go but you know just hold on tight in we're in for rod where we want to or not so in other news mark giveaway heck. You're still doing the weekly giveaway a big shot to IBM. It's really cool Jake. They're doing their own medical side. They're giving away a lot of free services. Try to help track and manage the spread of the corona virus. And we're actually shoot a little bit of video with them next week and talk about it. I just think it's awesome given away for free once again. They're trying to help humanity you know. They're not trying to help to shareholders this time. That's exactly how people and companies should be thinking but we are giving away shirt. It's really cool. Has a pump Jack on the front shoulder G. and logo on one pump Jack on the front? Oh Gee logo shoulder. Ibm Logo on the other has a unique serial number that will be given away some cool stuff for all joking aside. What if we had a ton of toilet paper we give it away to somebody that had the right Cyril number? They could distributor local community and recent think that far ahead but we give away what a week. Go Register in. Those numbers are very valuable in the future. And then I'm not even do the recount. Drake which is I could do it. We'll talk about the street team. Though is our global volunteers. Hey if you're sitting at home and you're bored go join the street team. A street teams actually won the triggers. A pulled immediately when all this happened to help get in touch with their local neighbors to get the same notes that we put out on Lincoln. The whole stretching got they went out and all their local communities around the world and it spread that a willingness to help which is awesome. So good you just go to facebook search Gene Street Team. You sign up. We asked you for an hour's worth of work we can. You can't we're fine with that too. And then the monthly emails are still going out the events even though everything is shutdown. Jake down all our live events of this thing clears over and it looks like everybody's done the same thing but the newsletter still goes out. Free show notes Click link sign up for it and then if you want. Jacomb speak. We can't do it not now. But we think there'll be a rebound. We think we'd all this clears away and people start traveling for business again. We think your bill by airlines t seat for three months so if you WANNA get in that mad rush whereby books us to speak when all this thing where all this stuff clears up. Better sign up now so if you WanNa you WanNa talk about speaking of the future. Let us know. We'll share the details with you it first Friday. Qna even though sometimes we get him out eleven days late. We're still doing that as well. If you want to. Submit a question. Please go on week. Dot Com Click on. Ask a question. Submit your question. Just remember the goal is not to stump Janai then this is about where I would get to the vents on deck. Except we've canceled all so really JAKE FROM JACOB MYSELF TO EVERYBODY. It's listening out there you know. Just keep your loved ones closed. Do the right things we're here for. If we can help in some way or fashion let us know it will get another episode out update you again in about a week rig out here jake does do it all right folks remember do great work pay it forward and we will see next time and here are the vets on? Hey everybody Alex here. With the events on deck for the next month we have some exciting things coming up to happy hours one in Pittsburgh and one in Denver so the first one will be happening on March twenty second at Bubbas Gourmet Burgers and beer. This event won't be from four to seven and will feature a live recording oil and gas this week with Jake Corley and Markel Corp so be sure to check that out. You can sign up via our social. Media's we have a bright sign up and should be good to go from there. The next event will be a happy hour in Denver at Liberty Oilfield Services on April second once again and check our social media for the bright sign up and sign up there as some of our social media followers may we are headed to Aberdeen Scotland. The first week of March. They had a couple of days actually for Doku Con. Creating high impact. Sales in energy. Dokru is excited to launch. Its very first sales development conference and Osias mark and Patrick will be hosting a panel and recording a live podcast. So we're really excited to be joining map. The leaders in industry luncheon is on March eleventh at the Petroleum Club of Houston. Port of the future is happening on March tenth and Eleventh in Houston your registration to the Puerto of the future conference also allows you access to exclusive events including TSA security and terrorism research showcase and many more so be sure to view the agenda and see what they are offering the Houston energy. Breakfast will be on March twentieth at the Norris Conference Center in Houston the API Energy Houston three gun. Chapter will be on March Twentieth. This is filling up very quickly so make sure to get a team and as soon as possible. The Be Energy Outlook Twenty. Twenty edition will be on April twenty. First it's happening online and this event is about transitions that will take place to a low carbon energy system. That's offered this month. Everybody if you guys have a good month and check back in next month to see what's best for heaven. Thank tune in next week for another informative and entertaining episode of Oil and gas this week. Podcast a product of the oil and gas global networks learn more at ORLAND GAS DOT com.
Oil Plunges After IEA Says Demand is in Free Fall | Energy Department withdraws tender to fill Strategic Petroleum Reserve| The US Fracturing Market Is Sinking, But How Low Will It Go | Is This The Beginning Of The End For Texas Oil | Russia Says Oil Isnt on Agenda for G-20 Call| Chevron Hits the Brakes on Permian, Cuts $8 Billion Across Company| Oxy Adds to Cuts and Icahn Wins Board Appointments OGTW199
"You're listening to the oil and gas this week podcast with Martin liqueur and decor Vizo for physio improve quickly. Want to keep their finger on the pulse. What's going on guys? Welcome back from their of Soda. They're willing gas this week. Podcasts listening to episode one ninety nine top of all the other bad news. We're talking about the day for our listeners. We have some other bad news in that Jake is his last episode is GonNa be episode two hundred one right after this. He's not mad at me. He's going on to bigger and better things. But we're GONNA miss the bejesus out of you jake yet. It's been a crazy ride. You know thinking about it now. It's been at the end of this year. It'll be would. It would have been four years. So we're at over three years. A podcast since industry thousand sixteen you and I so it's been a lot of fun. The ad does detonate. There's no bad blood. The thing is that you know as most people know. I'm an entrepreneur of a lot of stuff in the space just kind of focusing all my energy on to the the one thing that I'm kind of all in on right now so you guys go ahead on digital countersuits. We Miss Jake. Go head over its digital wildcatters DOT com. Jake Yup emceeing check us out there. We'll still be doing the willingness artist podcasts and a variety of other things shows in youtube video content stuff like that so he gets to connect me and follow me. I'm not dying. I'm not going anywhere. I'm still going to be out there. So feel free to go into bigger and bigger better stuff and honestly some really funny stuff you would call it. Y'All make me laugh sometimes so much. I choke but in the time like this is a good time to be able to laugh something I feel like the entire oilfield has seen the video now because it has been everybody that we've talked to. You said that they had sent to them like four or five times. Yeah and if you don't know what we're talking about go find it actually will put a link in the show. Just Click on. Go another thing before we get to the reviews is we just relaunched our HSE podcast. It's actually the next next episode cut next week and Jake Gateway Apple Watches on that show. How cool is that it's awesome? Yeah Ho wait once you leave. You can now register and win Seattle today. You can't once you leave. You can register to win so maybe you went to Apple. Watch nature reviews. We got always have good reviews except times when we don't have any reviews we got to. This is Joey. Non One two three nine four eight two nine four good number. Joey. I'M GONNA count manager up in the Greater Pittsburgh area. I want to do my partly review for this great podcasts market. Jake you guys do awesome. Always very informative but at the same time fun I use a lot of the content from the show speaking with customers great job. I can't wait to meet you guys in February. Unfortunately Joey by now you've realized we had to cancel our live. Events are Pittsburgh event as soon as possible and safer pick those backup and hopefully will meet you June July ish time joy but thanks for review and then this is jody safety gaffey not states of America. Hi Guys Love here in industries up-to-date information. I am currently working in the Permian and love. The continental ball drives everyday working. My way between five rigs keep up the great work also say hi page. The hosts all guests industry leaders. We go way back. Jody he's a safety guy. So jodie listener Hsen podcast. It's relaunching next week in Windows Apple Watches and we'll make sure we let page said. Hello other news stories. Let's get it done so I'm sure most of your quarantine at home and have been for weeks on end. It's been a hell of a few weeks. I'm adapting to learn to work at home as I'm sure everyone else's so I'm sure you guys have been paying very close attention to oil prices. Oil has plunged after the. Iea says demand is in freefall soil. Resume just decline. If the head of the International Energy Agency warmed at global demand. It was a free fall as CORONA VIRUS. Lockdowns retaliate consumption. While major producers pump more futures on he was four or five days ago tumbled seven point seven percent of New York as the. Iea came out with their latest projections. And then Mike Healey President of OTC future said Oils GonNA continue to be stuck in this Rut given the simultaneous supply and demand shots. Stimulus doesn't really help these issues. Just because people have more money in the pockets doesn't mean they're getting in their cars. And so last time I checked. I think demand if it's not already down twenty percent it's projected to be down twenty percents down twenty million barrels per day from the normal one hundred million barrels per day. It it's it's really interesting. I'm having a really really hard time. Get my head around all this. I've crunched the numbers on the virus. I got my head around that and crunching numbers both on the economy and also on the price of oil and for the first time in my lifetime. We have two things going on. Which makes it hard to figure out. What the future's could bring so the first is we have this glut on the market right. Well that's we've had that happen numerous times. That's a pretty easy thing to forecast. Mathematically which by the way big shout to Microsoft stumbled across their power. Bi Tool. It's so much easier. Use some other tools. I was using but to think. That's never happened for usually when you have a glut on the market in the price of crude and gas goes down downstream explode. Because now that's raw feedstock and so they're roughy stocks and cut and so that portal on gas industry explosion profitability. What's happening now? Is the demand for refined products including things like plastic and he's is also going down at the same time. The price of crude and gas is going down so downstream which Newton normally would be booming. Right now. Or would be booming. Soon is hurting just as well because the demand for their products went down because of the global lockdown for the crossovers in. It's really hard. I'm doing a bunch of big data. Analytic stuff and come out in the next week or two probably next week with some predictions about where. I think this things could go. But I've never seen this in my life and it's really hard to figure out where it's going and it's it's not good no matter how you look at it. Yeah completely nuts. You've got experts in the area who just completely threw their hands in the air saying like listen. Nobody really knows where things are going to go in. Everybody always has a predictions especially during downturns. But this is completely different. This is unchartered waters. We'd never been here before. It's hard to say what oil is going to be a week from now let alone. How are we supposed to say what's going to be six months from now? Nobody knows right. That's completely speculative. So word on the street is that Russia is actually wanting to come back to the table though and wanted to new deal which is going to be good news so we're kind of getting conflicting reports over whether they WANNA play ball or not so we'll see what happens but the I don't know if you saw the Smart Energy Department withdrew their tender to fill the strategic petroleum reserve. I didn't get to dive into this to devote dino all the details. I don't know all the details under the big details. They don't have the money they had the money within the use. That money on the stimulus bill. So now the house is GonNa have to vote again. So this first stimulus bill when that's the one that's getting a lot of press because they're busy at twelve hundred bucks plus big five fifty per child or something like that if you make seventy five thousand dollars below last year. That's getting a lot of press but that's the first one jake. They're working on the fourth one. So the second and third already been done now working on the fourth one to come after this first one you can pump money into the economy and it makes it actually makes a substantial difference but not for long period of time. And so what happened is they. Don't have the money to the strategic petroleum reserves which is really interesting because one of things that's going on now. This happens every single time. The price of crew gets cheap. Is People buy it at a discount? Right now it's less than I think. Twenty three dollars a barrel and then they store it somewhere they wait for to get up to thirty dollars a barrel thirty thirty two eligible and they sell it and they make a nice profit. The problem is everybody's doing that right now. So storage is starting to get full. Which means the cost of storage goes up like anything else that supplied man with his short supply storage. The cost goes up which Zenica hurt the margins that the people are anticipating to make when they put the crude back on the market but right now if the US government could find the money and they're working on it are could get the money approved filter Strategic Petroleum Reserve. It would be a really good deal. It would help mitigate some these luke crude prices at least here in the US at the same time it were buying oil for pennies on the dollar to go in Strategic Reserve. So let's hope that the congress can keep agreeing on stuff more less but speaking of that. Did you see some of the stuff that got snuck into the the stimulus? Bill always politics. Never let a good crisis go to waste. Oh God I mean it makes me WANNA cry. I'M NOT GONNA get into it here but there's stuff that got put in that bill so that people come to agreement has no bearing on helping Americans are already people around the world. It was just you know personal gain for those politicians which that should be illegal. This is over hope. Our country stands up votes properly to fix all that stuff. Things like term limits. You know but anyway yeah. That's what happened to structurally reserved. They want us to do it. As a great idea they use the money to put cash in people's pockets so with oil prices hovering in the mid twenties. It's been I don't know what to three weeks now. He's two weeks I completely don't know data's Having been at home for so long but with more than two dozen largest US shell producers already having announced twenty to thirty percent cut some even more than that from their capital budgets. Apache Q. E. P. as a long list pioneer parsley. A lot of these companies are laying down every single one of the rigs as a lot of them are at least laying down half. It seems that more and more as time goes on more press releases are saying that they're absolutely gonNA stop all drilling moving forward so the next articles diving into what does that really mean for the fracture market and so oh fast company's never really recovered from the last downturn thing about that and now they're getting hit again we've already seen a lot of producers go to a lot of service companies and say. Listen our contracts are off doing any more work or if we're going to do work we're GONNA ask for a twenty five percent discount on the work that we've already done I mean how do these guys expect to stay alive. I don't get it. They can't so the some of them actually a lot of were taken at twenty percent hit. This is not. This is not the first time it's happened just to keep their people working no in that the very best break even and most harbor lose money but that's not a long term strategy. That's a gasping for my last breath of air type strategies to try to keep your crews working so it's bad it's bad it's getting bad now to get bad is get worse as we move forward in time. The big question is when is it could come back and to your point Jake. Nobody knows I'm working on it but even I come out with a number is could be guess based upon the data. You'll put my hands on right now. It's not a positive to say about kind of this talking point but honestly there's not much to really come up with here. It's not just the fracking market. Jake so I used to an AI tool scrape the web to look at public companies in their statements to the press. And I bet I found sixty companies that all touch oil gas that are not only gas companies that think companies like Microsoft right that publicly stated their quarterly predictions for revenue from the second quarter of two thousand twenty. They're down great because of what's going on and so that's that ripple effect that's got hurt not just that's hurting the the upstream part of the oil and gas industry but three sooners could start hurting the pipeline the midstream part and Dan. It's already starting to hurt downstream. Now it's GonNa have a trickle effect through all the other companies that touch all. Yes or not only US companies themselves and once again the big question is how much and for how long and we don't know yet. I'm all about I mean I'm sure you've seen on the latest updates from new every expert on the current virus and how this is really having a huge on the world. How long can we really stay quarantined? How long can they? The economy really sustain this. Yeah I got my head around that part so lease here in the US. This is what I think's GonNa Happen. I have a video coming out later to go to detail. But we're almost at the peak of the Bell Curve in the biggest thing is we need the testing the five minute testing. And we need enough that spurs through the country. That's easy for everybody. Get tested Betcha to happen in the next two weeks when that happens we now contest people in the people that are not exposed. That don't have the engines. Could go back to work so now you let the rest of the country back to work. Who Don't have the virus and only Corentin the ones that you do. That should be three weeks now for weeks. That's when that should happen well. At that time we have the hospital beds. Freed up the respirators the drugs that help actually people once they've been exposed to the virus and we're working on a vaccine so I think the whole Seal v Nineteen thing. We're GONNA be okay with it. We're predicting that Jim. I will go back to business as normal and around mid April's hit the peak of the virus here in the US. Now we're always have these pockets of this fires all over the world but we think that we'll that our experts are the world's experts very tested to vaccines both promising. Other clinical trials is could take them about a year. But we're hoping is by the beginning of flu season for twenty twenty one. We'll have a CD nineteen vaccine. This things just gone. That's what we think's GonNa Happen. Now but to your point we have to do something from an economic point of view the entire. Us entirely can't stay shut down because we're we're a recession now. It's a small recession. It's a manmade recession. Because WE SHUT DOWN. We can't have it turned into is when you have that domino effect of where people freak out. They quit spending money. It makes the recession works and then eventually becomes so big that no matter how hard. Us government polls to keep it from dropping down the whole we drop in the whole recession. That's actually my biggest fear is that's going to happen. We're seeing some positive signs but not enough yet for me to tell you quits to go one way or the other suit. Everybody's keep their fingers crossed the virus thing. We'll get through relatively quickly. We think by June I will be back to business normal and I sure hope so I mean I. I've never known more unemployed people in my life on. Just you know people have people are being laid off furloughed and and just not able to go to work and so you know it's visually. It's horrible scary. Because not only do you get laid off. You can't look for work. You're supposed to be quarantined. You have to Pay Your House note in your car note. Electric Bill Feed your family. It is it is. I hope I never experienced again. This is a once in mankind. Perfect Storm Perfect Black Swan type of event that we never go through again so let's continue on the theme of Misery The Dallas Fed did their latest survey which included responses from one hundred sixty one energy firms which took place from March eleventh to March nineteenth. This is a quarterly survey and offers a window into not just economic healthy industry but also the psyche of many oil executives in Texas. So I just want to go through the list and give you some insight into where everyone's heads at so more than half of the executives of their headcount could drop this year with nearly a quarter saying pay would decrease significantly. I've already seen that firsthand from friends. And so I'm trying to get their review quotes by look on domestic oil and gas has never been bleaker and other ones say this weed out the Ponzi guys in the shell plays a lot of capital distrust occurring the service industry for fracking will implode number one said banks are squeezing the MP sector including our company in the in demanding. We quit drilling to pay down our debt. Even though we are in compliance with terms of our cut agreement we will likely shutdowns early next month. The paint early termination penalty to our re contractor in excess hedges to pay down debt. We are in survival mode now. Nice when said we're planning for a soft twenty twenty soft would be great now? We are now expected in almost total. Stop and business in the coming weeks and months. Nice Win said I'm scared in my opinion tastes. Road Commission should institute pro-russian as we had in nineteen fifty s and early nineteen sixties and. That is something that's on the table. Currently being talked about the next one said looking to be a bloodbath for most firms. Yup would agree on the next one. Said I'm shutting everything I can and cutting general administrative expenses to minimal levels to try to ride out the storm. Those who are in debt will not survive and over this last one here. I do not believe the energy industry. Ex- except with respect to the largest producers has the capital liquidity and reserved to survive a price collapse of the death in time extent that will be experienced not. It's not I will say one thing had quite a few people reach out to me. Talk to me about how this is Russian Saudi Arabia trying to put the fractures out of business. That's not what happened in two thousand fourteen. That's not what's going on here. You have to remember. You can bankrupt a company but you can't Bakr Brock. The hydrocarbons are there and if prices go back up even if you know. A lot of operators get destroyed somebody once it makes. Fiscal sense will get some capital and go do it again so this is something but just a between Russian Saudi Arabia. That we're playing casualties right now. It is interesting though. Jake that Ryan sit in the former railroad. Commissioner is going to the OPEC meeting June where they all are going to try to agree upon production numbers for the first time ever the state of Texas his equal to Russian OPEC in those discussions that that makes me feel good. I actually know Ryan's a good guy if anybody can help. Broker a deal that benefits the world. It's him so the nice article is actually outdated by now. Maybe it's still true so this one I put in here says Russia's Russia says oil is on the agenda for the g twenty call which is GonNa be. I think in the end of April early. May some time but now like I said it seems like Russia wants to come back to the table and discussing new deal yard impression cuts. So that's kind of good news for everybody Sir Stanley edge of your seat. Let's see what happens with that. And then that's when next articles Chevron hits the brakes on Permian cutting eight billion dollars and Catholics across the company and the reason that such a big deal to the companies that have the capital expertise and reach to keep the Shil market alive in the US is Chevron and Exxon and Chevron cutting eight billion dollars which of course they are. I mean you know you would expect them to do this. It is GONNA be interesting. You know they don't have any debt. They have a lot of cash. This cut eight billion dollars actually increase their cash because they were expecting to spend that money this year. So I would not be surprised if we see both Chevron Exxon multiple major acquisitions the next twelve months by all this but just the fact that they're cutting capital. Money just tells you how bad it really is and last article today. I'm sure he will appeal to this. Oxy Is adding to cut. They're cutting executive compensation they're cutting headcount down and I'm sure you know as we've talked about Carl. Icahn has been in a little bit of restraining a proxy war with oxy he had purchased it. We're just a good bit of oxy Kimber. Exactly with the number was about a while back. He sold off. Eighty percent of that their market cap is completely just tanked and things one fifth of what it used to be before they acquired a Anadarko and now he essentially got it for a fraction of the cost. And so I think he's up to nine point nine percent so he owns quite a bit of oxy and so Steven Chason was the former. Ceo of oxy. So now he is actually executive chairman of the board now and then call icon was actually put in three independent directors of his own. Andrew Lincoln Nicholas Grazziano and Margarito Palau Hernandez. I have no clue who they are. But it seems they've they've reached some kind of resolution with icon and that was also because I think they also kind of forced his hand a little bit. Hopefully he's happy with this deal here. But they taste poison pill to where if somebody was acquiring more than I think. Fifteen percent of the company at automatically sort of diluting shareholders rapidly and yet in all the details of that to be also the this turn into soap opera. You know so proper. Yeah if you're watching the soap operas have more stuff happened in thirty minutes and happens in your tire. Lifetime this is what's with Oxy Dorka. I mean this is just one story after another after another. It's interesting to see if icons now going to work with the board to try to stabilize the bleeding ship of oxy Darko. Or if this is just another step in him gaining control so you do what he wants. I don't know he has a call me an astronaut opinion. But this is this is just like a unfolding soap opera of intrigue and espionage and somebody's dead relative really wasn't dead. They Ran Cohen. They came back and all within a half hour. So we're definitely keep an eye on this because this has been an interesting story from day one. It just gets better better. I guys with the stories for this week Mark Russell during the giveaway right. Of course. Still doing a giveaway. This things become a crazy. It's actually had a semi reach out to me just two or three days ago and it touched my heart. They go mark. It's unfortunate. I just got laid off but the same day I got laid off my shirt arrive in the mail. So is a good day. And it's like damn I mean just you don't like to hear that sources so we glad they wanNA shirt and by the way if you win. The shirt has no reflection on you. Possibilities you being laid off and on it is cool shirt we give away what a week have unique serial numbers actually on Jake's last show that you're the show we're going to give away something cool basil a serial numbers because we've never done it since Shakespeare's hard next show which will also be a first Friday. Qa a believe so. If you'll have any questions for jake before he goes onto other stuff go to sweep dot com as question and go ahead type in your questions and since this is his last one if you WanNa Kinda get away from the tactical stuff and ask him stuff. You're bigger picture stuff about his future. What they're doing. How people can still make money in his downmarket. Any still go ahead and reach out lists soon get some questions for Jake and then like I said Jake give us some really cool based upon the shirt go the show notes. Click the link giveaway one a week and the most important thing is that unique serial numbers on the front shirt. If you have that number if you have that shirt picture right down at number somewhere and Jake lists skip the weekly rid count. You know. It's not pretty and then you heard a talk about our street. Teens are all volunteer group at a facebook. Search GASCO will network Odeon stretching. Join give way cool stuff we asked you help us our social media. You know what Jake. I didn't realize it's still a day so the next this is where I talked about the monthly email newsletter. We sent out for free. There's nothing for me to put in it this month. Like every guest finish shutdown of first time in ten years. Is this email newsletters. Been going on for ten years the first time. There's nothing for me to put in it. So if you're on that list you're GonNa get something I'm just not sure what it's GonNa be and then this is also a point where I talk about if you want Jake and outcomes speak Jake. Every single one of our speaking gigs were scheduled some. We're always paid for for this. Year has been cancelled yet. So we can't come speak while we're all lockdown now if you'll have something going on the third or fourth quarter this year go ahead and reach out to us and we'll talk to you about it and we'll just get some type of agreement in place and if we're in a good place and we get closer we'll do it and if not we'll just do whatever but you talk about the first Friday QNA. This'll be Jake's last first Friday. Qna Go and ask your questions. And actually I usually try not to stumping. Why don't you try to stop any kind of funny? We need some humor on this show. And while you're out there go ahead and go to the website email address. Use that to let people know about the cool stuff we're doing and by the way people. We had our two hundred episode. I must go ahead tell about what was set up. We are two episodes setup to live from technique. Fomc their grip. Campus be invitation. Only we're GONNA invite the people that had won. The shirt were invite the people had given us their email address and then if we had any extra seats were opened up to the public but once again it's been cancelled so even our two hundredth episode. Which could celebration is Jacob ended up doing virtually which is just where we are in the universe. Neither here there. It's it's where we are so you keep Chin Up. Everybody things will get better. The big thing is win and I'm working trying to figure out when that's GonNa Happen. But Jake for the almost last time you ready to get out of here. Let's do it remember. Folks do great work. Pay It forward and we will see you next time. Hey everybody Alex here. With the events on deck for the next month we have some exciting things coming up to happy hours in Pittsburgh and one in Denver so the first one will be happening on March twenty second at Bubbas Gourmet Burgers and beer. This event won't be from four to seven and will feature a live recording of oil and gas this week with Jake Corley and marker so be sure to check that out you can sign up via our social. Media's we haven't bright sign up and should be good to go from there. The next event will be a happy hour in Denver at Liberty Oilfield Services on April second once again. Check our social media's for the event bright sign up and sign up there as some of our social media followers may know we are headed to Aberdeen Scotland. The first week of March. We had a couple of days actually for Doke recon creating high impact. Sales and Energy Dokru is excited to launch. Its very first sales development conference and mark and Patrick will be hosting a panel. An recording alive podcasts. That we're really excited to be joining map. The leaders in industry luncheon is on March eleventh at the Petroleum Club of Houston. Port of the future is happening on March tenth and Eleventh in Houston your registration to the port of the future conference also allows you access to exclusive events including TSA security and terrorism research showcase and many more so be sure to view the agenda and see what they are offering the Houston energy. Breakfast will be on March twentieth at the Conference Center in Houston the API Energy Houston three gun. Chapter will be on March Twentieth. This amount is filling up very quickly so make sure to get a team in as soon as possible. The BP Energy Outlook Twenty twenty edition will be on April twenty. First it's happening online and this event is about transitions that will take place to a low carbon energy system. That's offered this month. Everybody hope you guys have a good month and check back in next month to see what's best for having thanked next week for another informative and entertaining episode of Oil guests this week. Podcast product W oil and gas global network learn more at Orland GAC this dot com.
Patrick Payton on Permian Perspective- PP031
"The Permian Basin is an abundant oil and gas producing area already one of the world's leading oil producing regions the area in West Texas and southeastern New Mexico could nearly double crude oil production by the year. Twenty twenty three but who are the leaders behind this economic powerhouse and what is their story. This is permian perspective. I'm your host Krista s skinny. Today's show show is sponsored by Baker Hughes who recently launched a new and reimagined Baker Hughes brand as an energy technology company. They're striving to make energy safer cleaner and more efficient and for people in the planet again. Special thank you to Baker Hughes. Hello everyone welcome to this week's episode. I am so excited to be sitting here in Midland Texas with with our newly elected mayor of Midland former pastor of stonegate fellowship church business leader consultant and probably my favorite title host of the no neutral moments. PODCAST Patrick Peyton was good to be here. Thank you very much. Thank you so much neutral moments podcast. The podcast world. It's fun isn't incoming. Who's you talk to yourself? Others and people listen. I know how fun is that. Whoever thought you could actually do that for living? I love it. Well thank you so much. I'm so excited. Had It for you to share your story before we get started. I want to thank everyone who has shared our podcast with friends family and colleagues listeners. From all over the world now. Even in France there's three listeners and freeze and of course right here in the Permian Basin. I really appreciate each and every one of you. I would also like you to go ahead and help I show out by taking a few minutes to leave a review in I tunes. I cannot thank you enough for doing this. We are so appreciative of the reviews. We've received so far and for Apple Choosing Permian perspective to be on their new and noteworthy list a special thanks to Jim. Who recently left us a message? You've been on Lincoln so Jim Thank you for those kind words of course when you leave a message we will. I'll read it in the future broadcasts so thank you so much. All Right Patrick Peyton. Thank you for being home. Most people don't remember. When stonegate was a portable building across the St from a bell? Remember these days I drove by every day ended. See what you did and grow that church from that little portable. Walk us through to how you did all this where you are today. Well really. The story begins with people who invested in my life. You know years ago I had pastors and Friends I had particularly gentlemen in my life being raised by single mom most of the time that stepped into my life and taught me how to know the Lord and walk with the Lord and then they taught me how to believe in myself and go ahead and chase after some things that you thought might be impossible and so we were in the business world in my wife and I made a pretty fundamental decision to go ahead leave the business worldwide seminary and then this church in Midland called First Baptist Church which I'd never heard of a literally never heard of Midland Odessa. I was in Kentucky in Seminary Whole Series Of events of how gentlemen moved here to Midland who I was sort of an acquaintance with in in Oklahoma City called and said hey you wanna come start a church in Midland. Odessa didn't no anything about Friday. Night Lights literally. Nothing not even baby Jessica known. When I got here and saw the I went to a restaurant that had a news the newspaper hanging on the wall? Yeah Murray's Deli and I was like Oh okay that's one thing I remember so we came down here and first baptist. Church had had this idea of starting the church pretty much back in the eighties because of boom and bust. They decided it wasn't time which is funny when we moved here. Oil was nine dollars a barrel. The day I moved here my so the economy we had not gotten any better but they said let's go ahead and do it and so we gathered with a group of people and started over at Abell junior high and had the little portable building across off the street that we used and really what made it happen was obviously the blessing of the Lord. Amazing Group of core people who had bought into what we were trying to do. And we're willing to just try anything and I remember one time one service we took an army jeep and brought it up on the stage and we just tried anything to be creative and to communicate indicate going to be relevant and the next thing you know it went from about two hundred people today. I think it's got a membership of around twenty five thousand. Wow that's incredible. That is taking what is an idea and bring it for wish to making it happen. I know there are a lot of people along the way. But what do you think it was that made aide it so successful and that just brought in all these these these pictures to you because it was a fast growth. It seemed like I outsiders but I know it wasn't for for you that we're in a it was a long time right you know. I want to just preface all that by saying we certainly couldn't have done it if the Lord had blessed it and put his hand on us but I think we had decided we wanted to create an environment where people felt like they could just show up any way shape or form and remember. This is back in the day when that was not not very common. Churches now have a more relaxed feel more welcoming field but people weren't doing things like parking lot teams who were out there greeting people and coffee in the mornings. The this was all new back. Then this is twenty years ago so we just created a welcoming atmosphere one of the first messages I preached align the stage with with with luggage and I said so. Here's the point. Just bring your baggage and I love it and so that started happening. I think more than I even expected it to happen. And the the word being real is so overused but back then it wasn't overused and we thought okay. We're GONNA WE'RE GONNA bring down the walls so to speak. Come on in and I think that just struck a nerve with people and people who had stayed here in the basin. We're looking for something fresh and looking for something new and we. It just began to see stories where people had given up on Church decided to come back and for some of those people who became a lifelong church for them others. It became something that they needed for a season and they went back to maybe a church. They'd grown up in. But I think we just found ourselves at a perfect season a perfect time to see this happen. And and also tell you this when I moved here recalled all the pastors kind of around town. Not all of them several to see if I could just learn about the basin in one pastor in particular golf course wrote his name was Ronnie White my neighbor he. He was my next door neighbor for many years until just incredible man Golfer to yes he came and met me and just really kind of took me under his arm and back then for those who've lived in Midland for more than twenty years. You'll remember back then. Golf Course Road had this big celebration. They would do once a year and they did it in the shop center in this particular years ninety nine. I mean we've just gotten started. And he called me and he said Hey we're GONNA have the shop center filled with people. There's going to be eight thousand people there. I want you to speak and so you know I thought wow that. Not only. Is that an honor. But how humbling is that. That a form of pastor of one of the largest churches in town says hey I want to just give you an opportunity to speak to the city even a different denomination and so people like that. WHO said I WANNA give you entree to the city? I've spoken golf course road and there was really just a sense in midland back then. Well the industry wasn't doing anything and and so you're thinking there's gotta be life somewhere. So I think that was attributable to the to the rapid growth. And then I'd be remiss if I didn't mention and I probably would still say we had and have the best music basic AB in Texas. These guys are amazing and people would come in and listen and think wow I mean you know it was a letdown to go from music to the message but guys like Tyler Dodds David mcreynolds and Craig King just developed this reputation for a worship ministry than we did live recordings. Wow it was. It was just just a should nominal ride and now the churches is thriving and we had a part of being a part of that huge part. And of course I have to mention your beautiful wife. Wife Cindy who's just incredible and I know that family is so important to you and to be able to raise your family through through these years and now the the kids are growing up right on grandkids. The grandkids three of them. Well third. It's a beautiful thing and that's not there yet but I've heard it is beautiful. I just WanNa say you know just that. I'm sure none of this could be done without the support of the family because I know that it takes it takes a village. And what a powerful. We'll just the story of stonegate and what you did there. So congratulations to you and to your family became an amazing. Cindy was from the day that I said. Hey you think we should just sell everything. Hang and go see what God will do. which is what we did back in ninety six for her to just be the kind of woman who said because we had a very successful business career and for her to have a bigger view of of life? And say let's do it and there was no will you're going to do this. You'RE GONNA have to do that in for anybody listening to thanks. Oh you just made her do it. No actually she's the one that said I think you can do this. And off we went and then when it was time to leave stonegate when we decided maybe our season has is winding down. You know it was my wife who said let's not be afraid. Let's press on and then when we came to this thing about running for mayor you know I was even a little bit doubtful. And she said no man. Let's go and so quite frankly. She's kind the power behind. It all. Awesome congratulations again on on becoming the mayor of Midland. I know you will officially take over in January and I wanNA talk about that in just a second second but first I wanted to engage on your no neutral moments podcast because that started about I wanna say in police crack me six months ago. Six months twenty twenty seven episodes ago. Okay who's counting but what I love. There's so many things I love about your podcast. I love this week's podcast on this slow church. Slow turn slower Journo your turn because it's so important during not only the holidays but just in life and this is something I struggle with with a talker for a living is the the rate of speech and you even got me to slow down in my car today. So thank you for that. But it's so important the topics topics that you're covering because now where before you were just reaching your stone Gamer. I feel like now you can reach a broader audience. And I really feel like you're connecting connecting on so many levels. Do you have a favorite topic. I know there's been what fear to giants to cultural kick bag. And what was the other paradigms do you you have a favorite topic you've covered so far. It's always paradigm just being challenged with the way I'm thinking in the way I'm seeing the world I think the older I get. I think thankfully I'm even even being confronted more with the how easy it is for my paradigm the way I see reality to harden so quickly and maybe that's even why the whole slow your turn down thing I am just finding especially if you're in the Permian Basin everything is going so fast and then a breakneck speed if you don't make yourself slowdown in Challenger conclusions on assumptions. You're GonNa miss something you're going to miss an idea more importantly you're gonNA miss the person I'm the kind of personality that's wired to drive in which means I'll probably walk by someone Probably Missa facial expression and and that's where the whole no neutral moments thing came from was literally going through life and being in an airport and someone coming up to me two or three days later saying hey I saw you in the airport. Thanks for smiling and I think I shared it in the very first episode that I was in I was in the airport in Las Vegas and which is not a happy place to be all. It's really not an I remember where I was standing in an just remember my real thought process but part of it was just be careful how you look right now and and I've been standing there for I don't know how long are sitting there waiting on a delayed flight in this lady comes up to me and she says I've been watching you from a distance and I just WanNa tell your facial expressions have been very kind to everything around you those creepy. I thought you've been staring at me for thirty minutes now right but the other thing was there's just not a moment you can. Disengage when you do decide to disengage. Then you'd better to decide what is where you're going to affect yourself and not other people around you and then I just think about the people whose lives affected me that I watched and realizing man this thing's meant to be be engaged and but then I needed a reminder with this last episode man you better it came from I told myself dude you better slow your turn down. And so like I said the podcast text slower Texaco and complete sentences. Think a little bit and now in this role as mayor as I'm drinking from a fire hose of what's going on. I'm the kind of person who will jump to a conclusion or idea pretty fast right or wrong. But I'm I'm having to just slow my listen down. Slow my listen down and I think I said at the podcast. You know you've got a problem when as you slow yourself down. You're uncomfortable all right so I know I've got a problem. See I feel the same way I told myself. Oh I need to pause more before. I think it's because I'm so excited right at about about everything life and and what's happening and kids and I feel like sometimes after listening to that. I need to stop and listen before for I respond because it's so easy to just keep going or to formulate the answer when the other person's talking like like you mentioned and I just thought Oh oh that hits home and then we also shared the the love of the new movie about Tom. Hanks about excuse me Mr Rogers by Tom. Hanks which I feel like top. Tom Is probably pretty similar to Mr Rogers but he spoke so slowly and I just thought he really did. He really thought about his words before he said them. And what a beautiful place that we would live in if people really thought we already delivering a beautiful place but even really thought more before they respond and what impact tactic can make. Someone told me long ago. The thing that irritates you the most about somebody else's probably something that's happening in your own life so when I watched that movie I was so irritated by I I thought could you speed this thing up. We could be out of here. It was a little slow. It was surf bettys lesson. I call myself going. Wow I mean if this is even remotely true about how wow this man operated it. Was You know even the phone conversation when he first made contact with the reporter and he said no the most important thing in my life right now is I'm I'm having a conversation with you man. I'm thinking about the next conversation. And most of our so it's just and then as you get older like ours are grown now wearing the grandkids. Now even slowing those conversations down with my kids and I just lasting say about it one of the the guy who called me the first time to come to midland. He's a very good friend of mine. A dear friend of mine. We are wired completely opposite but he's one of those people that has taught me over the years because when he listen to me and he's never been different than this. I found myself going. Are you GonNa talk faster than this. Because this conversation could go faster. But he's thinking about what he's GonNa say so it's a hard lesson and it's something I have to remind myself of a lot and then just to put a bow on it. Just remember that. There's probably not a chance to go to what I'm going to rose's or I'm going to go buy clothing here or wherever it is even just remembering someone across that counter. WHO's trying to help me insane? If I can slow down a minute to just mean it when I say have a good day and be kind to him in there. You've traveled a lot and I you know when I travel. I travel a lot now. And just those ladies and guys who are helping me at the ticket counter just to slow down and how you doing and and I know my flights delayed but you know we're cool here and then you find out they want WanNa help you because the guy in front of you was a complete jerk and so there's no place it's not applicable right truly can make a difference by slowing down slow at Balad food. Let's talk about something that happens in all of our lives. And it's what my husband and I was called the transitions transitions and a lot of people here. In Oil and gas Are Making some transitions. We are a fluctuating industry. What advice would you say to someone that is maybe either making a life transition? They just moved here. They're moving way. They're changing jobs to podcast. They're they're they're changing their life and transition or they're going from children in diapers to now now. The kids are out of the House men college so it's a tough topic well again. I'm thankful for a guy named Ron Fischman. Who has since passed away decades ago When I got my first real career break mazing story but I ended up being trained by him alone and people who've known me for a long time no that my absent Absent the Bible or seconds in the Bible. My Second Bible is the Book Seven Habits of highly effective people and most of your listeners and my listeners will say oh I read that book but as they say in the book to know something not do it is to not know it and I've worked that book over and over and over again and I just finished going through it again. Working in the workbooks books so the answer to that question is I have found. That transitions always work themselves out as long as you have worked yourself out in other words if you don't know who you are if if you don't know what your values are if you haven't delineated those values I carry in my briefcase a personal constitution. It has thirteen guiding principles in it. I've been working on on that since October. Twenty Seventh Nineteen Ninety. I can I carry in my briefcase. The original one that I started working on in once you begin this process of sort of if you think of the Word Constitution you know what guides us as a nation is we have written out these guiding principles and no matter what comes at us. We're guided by these principles. So I found that the people who have the hardest time with any transition are the people who have been defined by the situation. They're in rather than by the person they are in the situation. So if I come across someone who's just having a nervous breakdown that that's probably a little harsh with having a difficult time with a transition. The first thing I'm GONNA ask him when they say what do you think I should do. Is I'm going to say well. Who are you and you can also find that out with parents who become kids centric and so when all of a sudden you're empty nesters if your identity has been wrapped up in the kids then you're wrapped up in the wrong thing you need to? I know who you are and then help them become who they are. And then you don't change you mature but you're able to make a transition a little more easily and you find that once you become even more settled in the WHO that you are and the principles that guide you then you begin to see changes more is just another opportunity opportunity. And that's it goes back to when we decided to go pastor. I didn't have this. Bright light from the sky shine on me. We knew who we were. We knew it our governing principles or principles were and I had avid governing. Principle says be willing to risk more and so when we looked at it we just said. Wow Hi this is a risk it. The other priorities or values were important to us. And we're like okay. Let's get after it and who we were stayed the same the the profession we were in did not I mean the profession changed. And that's just been something we have followed and if the constitution has created a filter that every decision vision passes through in our lives and so when people come in. They're having a difficult. Time doesn't mean you don't pray about decisions think about decisions but transitions become less daunting. Because you just you're solid and who are so the transitions just another phase. That was just a title. Whatever that thing was right it was a season is a season was a season and and it's actually with parents love that who are who gets so kids centric? The problem with that is if you become kids centric they become Tom Parents centric than they can't even figure out who they are. And you know the best thing that can happen is in is the hardest thing that can happen is as your kids get older and they literally just make this break and you sit back as apparent go. Wow like they just took off. Well well that's what you're supposed to do and all that's the goal and but I'm afraid that too many people just think job centric kid centric than they become A hobby centric. But they still have not taken a look inside Tut not to become self centric but to become self identified and then once you become self identifying you can face anything I love that self identified centric. I love that. That's a good future topic. I just think it's something that we all face at some point. It's it's just it's a hard thing to navigate for for a Lotta people and make sense what you just said that if you know who you are. It doesn't matter what's going on in that next season. You're still who you are as long as you know I. I love watching so I'm a huge football fan college football fan. Oh it's Oklahoma Home Alcohol and I love listening to coaches and players who know their script when reporter start talking to them and I know that they're being taught at this but if you pay attention to them they're really boring interviews because coaches say the same thing we know who we are team. We're GONNA celebrate this victory for twenty four hours and then we're going to start working towards the next victory. We know our identities team we were not influenced by what people say outside of us. We don't pay attention to social media. We do what we do. In professional athletes athletes. Say as you and I are fully aware your sons who play golf you know. You're focused on the game and you're always focused on the next shot has been Hogan you should say the next shots most important shot and but if you know who you are and you play within yourself then matter what course you play on you know and once you become comfortable as who you are as a golfer you you then realize. It doesn't matter whether you put me at Pebble Beach or whether you put me at Hogan Golf course a know who I am. I know what I can do and I can play this game because I now know who I am awesome. You're making a big transition condition in January. I know that that you are taking the office but first of all before we get to the office I wonder what was the election process like because I know that was all new to you. Yeah what was that whole process like. Gosh actually really sweet. We you know we made a decision when we got into it and I approached. Morales said look look man. I'm not getting into this because I've got something with you. I literally getting in it because I believe I should give this a shot and so I don't even consider myself running against you in. This was a great opponent as well and I just made it clear to both of them. This has nothing to do with the two of you and I'm GonNa Campaign from my campaign. I'm probably lean and I don't even think I can't even think through the campaign if I said anything about either one of them about an issue but I just said we're GONNA to get into this and run it clean and these are the principles we're going to run on and we just wait amazing team and it was just. It was exhausting. You know it was a it was a hundred days friend of mine. said it's going to be the most incredible hundred days of your life but you're gonNA be exhausted and I'm competitive enough to think. Now you were weak. You know I'm not going to be exhausted. The day after the election we had an event two days later my wife and I got an appointment went to Grand Cayman and I think we slept for three days straight. I mean it was chest. I didn't realize how exhausted I was. But the highlight of it was the people we met and I think every politician says that even use the word politicians just said that but we did these things called listening tours where we went all over all four corners of Midland and just met at a Coffee House met Martinez Bakery Minute for places and just said come. Kamal is talk. That was incredible. I just some of the Times. I just sat at a table and one by one people wanted to talk about an issue or I just talked to a whole room and just had a conversation -sation and it was there as well where the message was reinforced. Most of us think we know what's going on until we have a conversation than we realize. Maybe we don't know all the details and it just became. It was invigorating for me to to get into people's stories and that's another growth thing because when we started the church I'm thirty one and full of drive and there's probably if I go back a good third of that my career where I I didn't get to know people. I was being driven to build this thing. And now at fifty to a realized slow down and get in the story and that has been really cool is to slow down and getting the story and that's been the highlight of the campaign and even past the campaign just to get to know new people to have their or stories be told and to learn history of how we got here and and man just a you know even people who told me they loved the campaign trail I thought oh well that's the most host exhausting thing you're starting at seven in the morning you get done at ten at night and you're gonNA grind it out you're gonNA record a podcast right but it was. It was really cool. Well I think what you he said was so true about. Everyone has a story and I think that's what's so amazing about what you know. What those little the tours that that you really could see the inside inside of the hearts of the people that you are now going to be supporting daily basis? So what is your vision. Now that you know everybody and their hearts and their stories well my first vision is. I gotTa make sure my company stays viable. Because it's not a fulltime job. Great Point Seventy five dollars a month salary but right right now. It's I have discovered that you can campaign thinking you know what you're going to go do and then you get inside the people say okay. We want to let you take a run of us. Then you start talking to people who work for the city you start talking to the county and you realize man. We are in a really critical time. And we've got to figure out not just what's what's going on but where are weak as all of us who've lived here for a while even when we drive around now we just you get a sense. It's just so pressured. It's so intense and over the decades because our industry has brought us to this place. We have booms and bus. That are so extreme that we don't we're afraid prayed to long-term dream and long-term plan and so this process is beginning of looking at our long-term and as I said when I announced it in July ten on July Tenth I said we've got to have a paradigm shift in the way we think because we have inherited a wave thinking that says midland doesn't deserve to be as great as metroplex midland doesn't deserve to be one of the most important cities in the state of Texas and the nation so before you can start making those changes you got to believe that you're worth making those changes that we believe. Our school system should be the best in the state if not the nation that we believe our roads and our sewers should be great that we believe are park should be great. We have to change our expectation nation. 'CAUSE none of us we keep going back to this Gulf thing because we love golf we do. None of us go to other cities to to play golf and say you know it's probably going to be a decent course and that's all I expect we go to these places in these public courses and I'm not making my vision golf. I'm just saying to people we go to Dallas. We go the Frisco we got to go to. Phoenix could always places everywhere and we expect the city to be grand and great meet our needs. It's almost like we don't expect midland to be that an Endo Desa and we've got to change what we expect about ourselves that we can be a destination we can lead if we can lead the world in what we do below the ground we ought to be leading leading the world and what we do above the ground. I couldn't agree more I love living and Melissa tries to it it is. It's a great place to raise a family and the people are amazing. And I like what. So you're saying we just have to we. We all have to believe in. Speak it and for it to happen. I get so mad when I go to Phoenix and I'm like we live in the same kind of place we live in a desert to. Why is there Scottsdale? But we aren't even our own version of Scottsdale. I know you can't see camelback mountain in the distance. Who cared but the reality is once once we start believing about ourselves what we believe about our industry we can start changing some things? Will you mentioned education though. I have to just ask as you know there whereas a part of the election that had a bond to five hundred sixty nine million dollar bond on created some division within our community why the community was divided. It's really about the kids right. Everybody wants what's best for the kids. How do you mend those emotions and move forward? Well that's a great question because it's been on my mind. How do we men men this how to and we're not even to the end of it? Today they're opening ballot boxes and we don't even know how this is GonNa end but but I think one of the problems I saw. Aw when opposition arose over the bond was we as midlanders did not do a good job of respecting each other through the process. It's I don't even say it's an evil of social media but we I think we got a little bit aggressive in the way we even tried to to talk about this issue and and I even made a statement at a political rally where I told everybody I was being asked in this forum. This there was a couple of people there and they said. Do you support the school Bonn and I said I absolutely do and I said but I'm just telling you as a crowd there was probably. I don't know two hundred fifty three hundred people there said I'm telling you as a crowd whoever's doing this stuff online and whoever's I throwing bombs at each other quick calling people's integrity into play into play unless just debate the issue so I think we went a little bit angry I and there's there's legitimate disagreements I totally get it but there is a way to do this that I don't think we showed our best side in this process so now hopefully really as we move forward win or lose we can all just take a good hard look at each other and say look okay if it wins by eleven votes or loses by eleven votes. It's still a matter in how we relate together and let's let's circle back and make sure we keep addressing two situations which is academic outcomes as well as our buildings that need to be redone as well L.. I mean our kids are have gone to these schools. My kids grew up in the schools. And all that needs to be fixed. If we're going to be the kind of city we need the Bay so I hope the temperature goes down a little bit and we can look at each other and okay wait. Let's deal with the problem and not the people and so if we can kind of get down that road a little bit because because we're gonNA keep having hard conversations we gotta keep building more roads and we gotta keep doing things with our healthcare and it's going to cost us money and were fairly conservative environment. Yes all right. We're GONNA switch gears just a little bit. Have some personal questions for you. You have a favorite book or podcast. So the podcast question. How do you not answer that and say that? You're my favorite. I'm Ah okay besides your podcast. What's your favorite Pug Tim Ferriss okay. Is My by far favorite. PODCAST it's one of my favorite books. Tools the titans that he wrote. It's massive but it's I really enjoy Tim. Ferriss guests that he has. He deconstructs world-class performers. And it's really really a I just love it. It's a good podcast. So add it to my life. I listened to him and I listened to Andy Stanley and so as a pastor. Sometimes it's hard to find someone who you feel like pastors. You and Andy Stanley's the one I picked and so and the reason why is I was at an event the John Maxwell Sewell Event a couple of years ago where I'm speaking and Andy was speaking and John was speaking in house backstage. Sometimes you have these big personality people and you wonder what what are they really like. And so I get backstage and John. Maxwell's the nicest guy most real. He actually called me. Remind me to tell you this story I. I'd love to hear John. Maxwell call is is crazy. So I'm meet Andy Stanley backstage and he just engages me. Tell me about your shirt going on your leaving your church. I mean it's just amazing conversation and you could tell sincere and you know because I'm like I'm bothering you dude. You get sitting on stage fright totally cool and so however we got there. I listened to him that podcast first and then I could go on and on about books so that's a whole new subject. I don't mean tell you the John Maxwell House. The great thing podcast weaned goes long going on so two thousand thousand the year. Two thousand stonegate is going to build. Its first building and so we hire this consulting firm from John Maxwell back then he had a capital campaign firm. They don't have anymore so we get higher. We're one of one of their earliest customers and never met John through that but anyway because of that. I got invited to an event in Lanta where I met with John and about six other pastors from around the country is an amazing forty five minutes and you know whatever I had to pay for. It still still names. So I got to know his secretary his personal assistant and just through emails and different things because the secretary's husbands convoluted the secretaries husband was our consultant. Okay and so anyways. I'd met John a few times. We've had conversations be because of the generosity of Colin Sewell when he's had events and I've been a part of those so anyways I've finished this job I retire from stonegate prop up a company start consulting and traveling and I thought you know I would. I'd love to hear how John Transition from pasture to a career. So I write the secretary and I said so and so I know he's probably not going to call me or email me but I would be willing to pay my own way to spend just thirty minutes in Atlanta with John if you could schedule an appointment on care when it is well. I'm I'm driving home one day and I I know most people are like this is not just me when I get a call on my phone if there's no name attached to it and that's why we have voice so I'm just driving in my truck. I'm pulling into my a house literally. I can see it right now pulling into the driveway. And the call comes it ends and then boom voicemail POPs up Mike okay so I hit it and goes visit John Maxwell. I'm just sitting here. Thought I'd give you call. I'm freaking out on. What are you talking about so I hit the call button knock you know? And he answers answers to me is like Patrick how you doing. I'm freaking out like you really called and tell me about what you're doing and we just had this forty I five minute conversation. About how much are you charging when you go speak. And he needed chart. I was like wow this is happening I mean I know some people are like. Oh you're really that crazy about John Maxwell you would make to pick up the phone and call any gosh. It was super cool. That was one of those Mr Rogers Rogers moment. I almost didn't take your call. I didn't take your so. He's he became again. The real deal you know that is a great story. Thank you so much that I have a few more questions. I know we're running out of time but I want to know what is the most important lesson you've learned in life so far I know we I feel like I learned something new every bag. Wow the most. You should've told me this game. I know that's a big one of the most important lesson I've learned. Never give up on people and it's not just a second chance or a third chance. Don't quit him. People quit me when I was a teenager and it may take time. Forgiveness may take time reconciliation may take time understanding may take time but don't quit people and now they get one don't quote them that's again one. What are you looking forward to next in like my next role or next next in life it can be anything so our key? I always ask people what their dreams are. I used to do that was seniors in high school and always ask him when I first met him. What your dream so I have this dream list? I keep in my computer. In one of Mr Race the Baja one thousand ooh race motorcycles. And so I'd love to raise the trophy truck in the one thousand and past that my dreams have changed a lot literally with the onset of grandkids. Kids do over the years. Don't they you know somebody told me. The only thing he gets day for the rest of your life is go. See your grandkids all your vacations. I mean like all right fine cool I mean that's it. It's I become that boring individual. I'm like I don't think that's boring if I can go see my grandkids and hang out with them and you hear them yell at me. My GRANDPA names boomer. So you know just to hear them say boomer you know it's just for them to fall asleep on your chest when they're that little and then for them to go watch their little baseball games. It's the best that's wonderful. What do you want your legacy to be my legacy it? I would love for my legacy to be. Don't let your past define your future and if you can dream it at least give it a shot and don't be afraid to fail. Oh good I feel like you're you're living legacy you're doing all those things now giving it a shot finally. Is there anything coming into this interview that you thought. I hope the listeners know this about me you know. Sometimes you kinda think you know. What are they gonNA ask me? Is there anything we haven't talked about that. You really it is on your heart that you want to share you know. Probably not probably nothing except we talked about earlier you and I share this same attitude were very driven and and I hope that people will realize when they're listening to me or they're listening to my podcast or whatever is that sometimes are driven. This comes from the fact that we know we personally have to get better and don't give up on us and give us a chance. It's and and just because I didn't say hi that time that means trying to ignore you and let's make sure we're giving each other a real serious chance and to know that we're all gonna mess us up. I'm GONNA mess up. You're going to mess up. We're GONNA screw something up but at least you know has theodore. Roosevelt said. It's not the critic matters. Is The guy in the ring. WHO's fighting the battle and we're just figuring handed out I feel like at fifty two just starting and I'm excited about what could be ahead and realizing that every day's an amazing gift an amazing gift left and don't be afraid to dream? Don't be afraid to write these things down and take the end of the year to slow down and maybe get along with journal and look at what you did this past last year and say you know how much was really worth at John Maxwell Tommy that he sits down at the end of every year and goes through calendar and says what did I do. Do I repeat that. Do I do that again. He's Times was really really precious. And I guess the last thing just came into my because I just shared this with young dad before I came over here. Ride your kids notes. Random letters you know. We used to do that. uh-huh life and I did that as they were young. And especially you DADS to your daughters you know. Ride your baby girls letters and I used to write with dry race marker on my daughter's mirror in her bathroom room because I needed words being spoken to her. Like you are beautiful. Don't listen to people who don't listen to these negative things and and I'd write her letters when she was in college. Not type of mud writer letters and when she was living in the sorority house her sorority sisters would say as a letter. Come from Your Dad. Because she'd read them to the girls and write these letters just to your sons and ride them to your husband and wife in Iraq. I keep journals where I write. My Wife will notes in the Journal so she sees these things and these are things that will outlive you. You know uh-huh love that. Thank you so much I appreciate you sharing everything you're definitely living your legacy and you are helping. All of us become what we are. Designed uncalled and gifted to be. I love that and so thank you so much I feel like I learned from you every time I speak to you or hero podcast and so hopefully our listeners. Today did the same because that was. That was great. Thank you so you Patrick. It's time now to announce today's community. MVP and the community. MVP is the young women's Leadership Academy and this is part of the midland ISD School district. It is a choice for these students focusing on college preparatory academics Leadership Development through community service and health and wellness. I'M GONNA break down to the Y. W. L. A.. So the Y. W.. La opened this fall and serves grades. Six and seven for your one and eventually will expand band to sixth through twelfth grade the Y. W. L. A. is a partnership between mist and the Dallas based young women's preparatory network. This unique partnership allow all students to engage in a rigorous academic program and participate in field trips with a college bound emphasis enrichment classes and extended years summer summer learning projects that enhance the college preparatory curriculum science math engineering and technology stem receive special emphasis in this program. AM So what's so important about this. I WanNa let everyone know the applications for grade. Six seventh and eighth or opening January twenty first of twenty twenty Jennifer. Cyber Weber is just amazing in her staff as well. These teachers are incredible. What they're doing with the young ladies and we encourage you to go find more information on Midland? Isd Dot Dot net again a special thanks to Baker Hughes or sponsor of Permian perspective. Of course the amazing Patrick Pate. Who shared so many words of wisdom with us today and that that concludes our episode of Permian Perspective? The story behind the oil and gas leaders in the Permian Basin. So remember my life Matas dream big believe in yourself and never give up you make it a great day. Hey Guys Alex here with the events on December we'll be having to og N.. Happy Hours to kick off twenty twenty one will. We'll be in January in Houston. We have not announced a date yet. But we'll get back with you guys soon on that and we will be having our first happy hour in Pittsburgh in February twenty twenty also with the date coming soon so stay tuned on those upcoming events include the bells of Houston a masquerade unmasking. UNMASKING THE STIGMA OF PTSD. This will take place on December fifth in Houston the Latin America oil and gas summit is December fifth and six in Uruguay Uruguay the API Energy Houston chapter. General Meeting will be held on December eleventh. Two Thousand Nineteen in Huston. The wildcatters ball is taking place on February seventh twenty twenty in Houston and lastly the IP A leaders industry luncheon will be held on December Eleventh Avenue in Houston. That's all events for this month guys. Be sure to tune in at the beginning of January to see what's happening Ben tune in in next week for another episode of premium perspective it production of the oil and gas global network learn more at www dot org G. N. dot com.
Jerry Morales on Permian Perspective- PP030
"The Permian Basin is an abundant oil and gas producing area already one of the world's leading oil producing regions the area in West Texas and southeastern New Mexico could nearly double crude oil production by the year. Twenty twenty three but who are the leaders behind this economic powerhouse and what is their story. This is permian perspective. I'm your host Krista a skinny. Today's show is sponsored by Baker Hughes who recently launched a new and reimagined Baker Hughes brand as an energy technology company they strive to make energy safer cleaner honor and more efficient for people and the planet. Hello everyone welcome to this week's episode so nice to be spending this time with you and it's so nice to welcome our guest today. I'm sitting here in Midland Texas Texas with the mayor of Midland Texas and business owner. Jerry Morales Jerry. Thanks so much for being here. Thank you Chris. Hello how're you doing. Hello out there. I'm doing great so nice to have view here and so fun. We've interviewed on TV for several years. Now this is our first podcast so excited technology. I know isn't it great twenty-first-century so it was great and I can't wait to hear your story. You have such an amazing story and so we're going to get into that in just a second. But first I want to thank everyone who has shared our podcast with friends family colleagues we have listeners listeners now all over the world and of course right here in the Permian Basin and I really appreciate each and every one of you. I also would like to ask everyone to help our show out by taking a few minutes to leave a review on I tunes. I cannot thank you enough for doing this. We're appreciative of the reviews that we've received so far like this five star review from Srinivas US in Austin Texas Service said each Monday. It's refreshing to await the permian perspective learning all about. Who's WHO and the details? I want to visit Midland one day. Krista is a pleasure to hear keep it going especially with new startups so thank you so much for Nevis for that kind kind review. We appreciate Shit you and it's so easy you just go to. itunes go to permit perspective and click the five star review to thank. You headed time okay. It's time to learn more about Jerry. Morales Jerry thanks again for joining us today. Usually always ask people how did they get to the Permian Basin but I think you were born and raised here so tell us a little bit about your your story. That's right Millan is my hometown and always say. It's been an honor to serve as mayor of my hometown but born and raised here. Mom and dad came. I mean I'm still trying to get the right answer for them. I have not been able to get a good story about how they ended up here. But Mom and dad or mom dad's from San Antonio Imams from the Valley Smith Bill in that area and then mom ended up in Chicago. Dad Kinda followed Chicago and then one of the sisters moved to Midland Texas and then mom came to visit her ended ended up staying. So that's how they made their roots here. I would say that was probably in the fifties and since then millon has been home to almost all of them as family and mom is of course Cillian Philippe. Ah Such beautiful. You have such a wonderful family everyone including your your siblings as well. Just great business people. How did they get started in business here? Here in the oil and gas epicenter of the world. So let's go back to mom and Dad Celje real quickly though the true entrepreneurs and that was kind of rags to through kind of riches story where he I mean self made entrepreneur. He was very good at marketing. And very good at selling he had visions and ideas and then mom was the penny pincher enger and she was very good about financials and always like tell the story. When we opened our restaurant cassette the head of the was the original name my first paycheck? She took took me down to the bank and got me a MISSA checking account and so I think I was fourteen years old and so but anyway Marchmont. I'm telling you smart. So good and tomatoes is read books you know and it was so big about education but financial was really important to her but mom and dad were just entrepreneurs and so I said data could have a vision. He could the market it. Mom You had to put the peels reports together. And they had several several businesses going on at one time dad got into the insurance business and became a health and life insurance salesman top agent for over forty years and together. He's been in that business for fifty years. He retired now and mom always was right there on his side. Just helping with that. MOM had a dream. She's like I want to own a Mexican restaurant. This was back in one thousand nine hundred. Seventy six thousand nine hundred seventy seven. They opened up the Cacique. The head Ardo. Which is our family Mexican restaurant? And I'm happy to say three generations later we're still operating Cossiga head though except I reverse the name and call it had articles casino. I see I did not know that. All these twenty one years. I've been going. They're getting the Best Chili Relleno. I'd never knew that it was originally was foot flopped because now everyone calls it. ANYTHING ANYTHING FROM HARARE'S TO GERARDUS TO JERRY. I've heard that one to Jerry's juries little house and that's what it means because seat that juries little house so and I was asking like what did you name it after me. And not after my brother overt or after Cindy and they're like I don't know God just gave was that name and we went with it and so our logo was the Saint Gerard and he's protected us all these years years so it's been nice he sure. Hasn't I bet your siblings of roused you to over the years to like. Yeah he's got. He's got the restaurant named after him. Favorite child there has been discussing is as you. Well you have you. Do you have a fantastic family and fantastic business here in town. But it's not just one business you have now grown through the years. Let's talk a little bit about how you took. That family owned restaurant and then expanded. So what happened is after I went to Texas Tech and I was studying restaurant management while I was there there was a concept that opened up call heretics and actually they had been in position already but they had a harrison midland came to work one summer and fell in love with their concept and so immediately I went to work for hurricanes and the head about eight concepts at that time. Good Steak House. You know but the training was phenomenal. Their culture as far as yes you know teamwork recipes were homegrown and so everything had to be meticulous. Owners were just very meticulous. Then they decided to get into the tex-mex craze and the open when Lubbock on Fiftieth Street. It was at that time called La Plaza. They're Julio's in a year later because it did so well. tex-mex craze was really exploding. We switched it to Don Pablo's so I stayed with Don Pablo's ten years my family we moved up to Dallas then we moved to Columbus Ohio. In that ten years I grew up the corporate ladder. We took it from one concept of two hundred concepts when I left so I got to learn how to grow a franchise. I learned how to go on the stock market. We got to go to the corona fields. Tomato Goldfield's all of that so at one point they got sold out and said you know it's time to come back home. I got in the Insurance Business With my dad. Said this is not me. I cannot do this dads so. The restaurant was actually empty for a few years. I cashed in my stock and we bought Cacique the head of those from my mom and dad in one thousand nine hundred seventy one thousand nine hundred seven and good for you for knowing what you did not want to do. Because I think that's just as important knowing what you do want to do it because a lot of time you might be in a job and you you think something just doesn't fit here beget we. Don't listen to that voice. So what was it that made you go. Yeah so as I was sitting in that insurance desk and the window was facing the restaurant and as I was looking at the restaurants in Midland I my heart. You're my heart just kept saying you. Will you belong in the restaurant as you liked it. Inter mingle with people every every day you like the challenges you like the ownership and so I think my heart just said we're GONNA do this. We're going to get back into now. I had just got back into Millan and and didn't realize the cyclical environment of the oil and gas in. Everybody remembers eighty eight dollars. A barrel oil in the nineties wasn't much better right. What year was that that you decided added to open ninety seven ninety six ninety seven elsa the late night it was a little rough? It was a little rough KAZAA. Now I see I got here. Ninety eight oil was eight dollars. A Barrel Yup. Yeah so I I think given my heart and my passion was just so strong that it wasn't paying attention to the economic environment but regardless we we established it and I have to admit it with far family was a tough five years. I mean getting back up even though we have been established since one thousand nine hundred. That doesn't mean anything. You're starting fresh fresh and it was a little well you know. They were a few different recipes now. I was able to hire the original cook. My Mom and dad had which was nice and we changed. You know of course a new generation so I took away the four or white walls that they had and I brought in you know back then it was murals and a lot of color festive atmosphere loud music. No carpets you remember they started everything carpets out and he started going to tile floor so we kind of brought this new change in the midland in. It was good but it was not busy busy. So I'm telling you five years we really. We went through that challenge. What was the biggest challenge in? And what did you learn the most during that time. Yes so trying to afford the Labor in a good thing that was a labor market but China Ford it it taxes taxes and then because we had an alcohol permit right from the get go back then it was about two thousand to get started than another two thousand inventory Tori for alcohol. Ten thousand food and supplies so you know after you already spent one hundred thousand trying to get the restaurant ready. Then you had another forty thousand inventory Roy then you had to set another side for payroll taxes and alcohol taxes and you're just going home my goodness what did I get myself into as an entrepreneur but the the smart thing is being able to work in the corporate world we knew how to Penny Pinch. We knew how to do things on our own when you had to go get out there and go hustle for the business and that's what we had to do is just hustle. We catered catered. I remember taking my first catering a year after we opened for five hundred and we were like. Oh my gosh we can do this. We can do this and sure enough. We pulled it off and it was great money and after that we really really just started catering a lot to bring extra income. And you're always there. I I mean I can remember working at the the whole family was always in there working. It's not like you. You just opened the doors and then said all right employees. Good luck. Yes oh I'll tell you so. My wife Meredith she was doing the payroll in. If I wouldn't work shift she was. WE'RE GONNA shift in the oldest son Chris. was there helping bus and we always had them there. But yeah you went on a skeleton crew and we worked seven days a week two shifts a week or all day a so it was tough and I think that's that's living the American dream though it's right and we know that wasn't my first time my first role as far as being in business but cause working for the corporal starting from scratch with that company. It was very interesting when you watch those guys work and so you know it's teamwork but I had a lot of fun by one restaurant that's awesome and you mentioned Chen Chris you now of course work hand in hand with Chris you've expanded. Your restaurant is a little bit about what that was like going from one to three. Yep So one time we actually had Gazeta had articles. We had another head-on Odessa. We had at the call center. The eighteen t colston were feeding seven hundred people a day. We were doing breakfast for some lunch and snacks. We were operating seventeen bendy machines we had the catering company. We opened another concept downtown so we had about five or six concepts going at one time and do this again one of the employees of the building. They took it away from me. Tuesday WanNa Know Desa. They sold the building on me so I lost that one but every time I lost when we would move into something else and I just could never stop and I always had this energy of doing more exciting and then Chris my oldest in chase my middle both fell in love with the industry and they love going on catering's they would be right there helping making tease or or minute tortillas and of course everybody loves the money so they bind and making a few dollars here on the side it was it was always been a family operation and now you have the Mulberry Cafe so today as we have so three years ago there was a concept called the harvest cafe and it was a priscilla and had been in there for a restaurant event and it's a great location for anyone who's not from midland. I mean just a perfect locations there next to Joe James Salon and also Carter's furniture exactly and so the lady that owned it. She did a phenomenal. Job is on when you walked in there. You'd like if like you're in tech an in midland you feel like you're in Dallas or Austin. It's true and I told her I said I don't know what it's telling me this but if you ever decide that you want to get out please call me I because I'm very interested in this this concept and so sure enough about a year later got a call from. I'm I think I'm ready to get out. And so my son Chris my oldest son he has joined the business and and we looked at it. And we said we're investing in this. We bought it and we kind of made some changes. We made it more full skill breakfast. And then we're kind of an American bistro with the salads the burgers the flat breads and so we're so good and the tomato. Basil Soup is amazing and it was scary. Was it scary making a switch though because you had been in the Mexican food restaurant space for so long. Yes how is that switch for great great question so never doing breakfast and breakfast is hard and and we were very scared and I let my son go to research how to do breakfast. And he's such a smart and technologies is passion so he he went to one of our provide food providers Cisco in Lubbock and he sat with a chef for a couple of days and they work on them some recipes and he brought back home in. He's the one that created the menu in kind of got all all of that going. So I'm more of the enhance on. I'm like my dad. I love to welcome people. Shake their hands. Make him feel at home. I can pour that coffee. But I'm also the kitchen operated. I love the kitchen so we make a good team and we went through trial and they were just like everybody else. After the first month we had it down and we were ready to go so that mulberry is a great concert when what we loves everything is made from scratch everything. Fresh is always cacique. The head articles. Everything's made from scratch but the more You can really tell you. It doesn't taste like anything you've you taste at what you would consider a chain i. It definitely does have that frontal with them over. It's kind of like a Mexican restaurant. People sit now go like I wanNA taste the chips and salsa to see. This is going to be any good right so ours was coffee. We had to make sure we brought in a very good coffee in hit home so when they took that tastes like all right. We're we're hooked and so it's been fun so today we own to Mowbray's we opened a second mobile location downtown which serves the oil and gas industry there. I mean you're right. That's a great location. That's right we wanted to get all that walking traffic. So you mentioned the only gas so I bought the mulberry in Two Thousand Sixteen when oil had dropped down from hundred dollar oil l.. To thirty the economy got flat and nobody was doing anything I mean it was US opening rig. Id work where they're like. Are you nuts. And so I remember report UH reporters are coming from all over going. Did you just buy this concept when the oil was down. Are you telling US something. Unlike as mayor in when I'm telling you is just like the oil industry. I'm I'm taking a lesson from the bay by they do mergers acquisitions and they buy buy when oil is down because you can get a better price. And that's what happened with us and so we just just kind of wait it out a year and sure enough it came back and here we are Goodbye Goodbye lets you mentioned that. First of all congratulations on on Your Business and being successful and congratulations on being the mayor and City Council for twelve years you've served our communities and you've done an excellent job. Let's let's talk a little bit about some of the highlights that you're the most proud of through those years so again it's how did you. How did you fall into it? That's all we always love to hear up. I think business into politics will had no inclination to be in policy. I didn't know I had a passion for it. So in the drama get so head. artless gets opened up breath. And we're only open a few years and then I had served on at least a dozen nonprofits in the next two or three years. I mean I could never say no and I just I love giving back. I love serving so get call one Christmas party from a good friend of mine. And gra furniture you just had Jose Crevice yes gem Burrito in he calls me goes the jury you are going to run for city council. I go on on that. He goes your way for city. Council building has has just announced. He's not gonNA run. He's GONNA run against Tom Craddock speaker and I said I have. No clue have no clue. I don't know what you're taught me he goes. I'm GONNA help you want to coach you and mentor you. I'm GonNa send you a speech and you're going to announce tomorrow and this is how you're going to do it. So we announced we ran for at large. This was back in two thousand two and we went up against eight major heavyweight city leaders. At that time. We didn't win that election but we were the top money receiver which was something big back then and then we came in third out of two seat feet so we were very proud of our so. We went back to work but what happened was. There's this New Young Hispanic entrepreneur in midland whose aggressive and we need to tap into him so I started to get into some of the bigger things So there was a what they call a type attacks which is our Melinda Vilma Corporation economic tax. Today AAC the city leaders then said we need you to go out there and get us a thousand signatures to put on the ballot on that way we can put it on the ballot so I put a team together and we click that thousand signatures and that's how we type tax today. That was probably my first step into politics so after that I served on that. MDC Board that First Board learned a a lot about the economy of midland ups and downs of the oil and gas industry. What do we need Midlan the small business everything and then my job on? MDC was to do international work. So I got to work with Mexico a lot and his. Oh back then. There was a lot of trade or ports to plains but from there I started to get recruited to more nonprofits but little more heavier foundations bank boards and really got vested into the community very quickly then. I chose to run for city council on my own under again again. My Mentor Jose. So we won that election at large and that was in two thousand eight and that okay and so that's what then began see. I didn't realize there was that big of a year difference between the first time. You're right but obviously that helped you to get you to where you were supposed to go. which was to be here? So so. Then you served on City Council and so two thousand eight to for the next six years served. As an at large the second term went unopposed and it was just a great great. Oh my God just a great feeling to be able to help so during that term the my problem a biggest compliment was helping million Christian expand their campus into the neighborhood it was very controversial because homeowners protect their neighborhoods. I remember that the school needed and they wanna move anywhere else and they were vested in there and put a lot of money so we were able to after after about a long year. Get that program established until that was a big one for the next one was the oil and Gas Ordinance. And that's when we were going to start drilling in the city limits. Let's let's talk a little bit about that. Yeah so mayor boys. Perry was the mayor that time and again I was at large and then Scott Deford believes the at large at that time so we you were very involved in helping to put that ordinance together. We had several large town hall meetings. Who they were so big that we had to move him to at that time? The Milliken Bitch and center hurt and we had public meetings of course with surface owners homebuilders realtors and then of course the hall of the oil industry then came in the State Railroad Commission and so there was just a lot of discussion about setbacks in radiuses in for those that maybe are not familiar with the battle it was because there were oil and gas companies that wanted to drill real within a certain amount of feet correct. Let's grab at the homes. Yeah try and those homeowners were not happy with it. That's right and so so. How did you bring the community together and pass this will again? It was you had to really be passionate to both sides the understand what you were getting ready to create there was an ordinance but he was very old and outdated and not up to the new technology which is not even knew the technology today but we just environmental was probably the issue. You protected no water protecting the air protecting my my neighborhood and wanted to make sure children weren't gonNA get hurt. Then the next part of that was the fencing and landscaping in. But all I can tell you we had to have meetings after meetings and there was a lot of yelling a lot of crying I mean man crying because they will they have been business partners for so long and they were getting mad at each other. Realtors said I've got to build my homes. I gotta make a living but how do we protect the density in you know pipeline. Glad you're going this way and pipelines are going that way. How are you going to allow me to build on the and so you know it was a lot of the emotions involved in but we ended up working it out we we created the first ordinance template? We put it to to test at that time. We city hired an oil and gas coordinator Ron Jenkins. He did a phenomenal job of being able to communicate in making sure you know bring the both groups together and listen to everybody and several years after that as we started to use the ordinance me tell you it was very oh my gosh I was always felt like my watch my back. They're gonNA come after me. Because there were some passionate residents when you started stacking rigs and two neighborhoods leads That became scary. So Oh and then fracking the pits. I'll never get some of those look like big warzone some of those so we started learning how to clean those up. But I'm GonNa tell you one thing. Throughout the years is the oil companies did a phenomenal job of trying to protect. Take care of Midland so if we mentioned something they would correct it lighting the fracking. The drilling I mean it was amazing their technology and how well they improved it and when one thing that I see visually as a community member is the big. I'm I'm all set to sound walls. That are now there that really do make different than those weren't there years ago and so I'm sure you had a role in that too. You mean like compressors were allowed in their diesel. Today they're getting electric. There's soundless generators in fracking. So the Water Aro systems that are portable portable. Now everything has just changed tremendously and again. I applaud the oil and gas industry because everything that we mentioned to him or through Adam Bay worked to improve to protect the citizens and protect our our community in so now so over the last six years tons of cities have asked for our template. And we're very proud of it that they've been able to utilize utilize it. And then the other part is you got to work with the Railroad Commission on the state level. There's a lot of interaction with the railroad. So there's there's a set of policies that the railroad the state level and then at the local level. Let's talk about as mayor so we we talked about some of your highlights a on city council. What are you most proud of as serving for mayor of Midland so in addition to those two things but so last six years I can tell you one thing is getting all of our masterplans updated? Every match plan is updated so we knew that we were going to be a fast fast. Growing city. Never knew that we'd be one of the fastest growing cities in the nation for the last six years so we we created a true comprehensive plan that the city and developer Chris could use used to to really grow midland properly. We always said as a city council. We wanted to make sure that city councils thirty years down the road said that group did a phenomenal job of planning midland. Roads are planned the right way neighborhood. Your plan the right way. The densities plan the right way so I think in the last six years we've done a great job of building out midland roads. There was no reason to invest in roads prior to two thousand eight because there was no activity right so between two thousand eight and two thousand fourteen we did just very little roadwork. We just did the general straight maintenance. There was less than a million dollars invested in our roads per year out of our city budget. I'm leaving office this year. We're now going to put twelve point. Three million gist in our street maintenance budgets as a record history so we have shown that rose who are passionate or air important and the citizens of milk past one hundred million dollar road Bonn under my leadership. I am very proud of that. So we've been addressing almost two hundred million dollars the roads in the last six years and then which I think that people that don't have here don't understand understand right. It's hard to because we've talked about the four key issues that that midlanders are really an ended. Ns all of us the Permian Basin and have been focusing on which of course the roads education healthcare and housing. But if you don't live here I don't know if you quite get Wyatt such a problem that's right it's like like you mentioned in two thousand and eight. We didn't need roads as you know to be. Worked on as much as we do today. We'll to number two. In two thousand fourteen. We added thirteen thousand cars arch to our roadways and then last year we had thirty three thousand more cars to our roadway. That's a lot of cars a lot of cars and then the last five years on our highways around us we've had the highest is talent so that kind of gives you an idea of how busy it is on the roads. The next one is water. You Know Mayor Berry Scott suffered and myself we were the group that worked on the agreement to bring the t bar ranch in and that t bar was bought back in the nineteen. Sixty s under mcgruder. So we put in a four eight mile L. pipeline waterline and are able to bring thirty million gallons of water because we were in drought three restrictions. If you remember so it was coming out of a seven year drought so under my leadership. We bought another ranch called clearwater ranch which gave us another twenty five percent more water about sixty five years of water. So we're leaving midland in good shape with with water and what we need to do next under. The new leadership is go after long long term water supply which is out there and so by that. So what is if you live in the desert waters press and that's probably the one thing you probably get thanked the least four water. I mean just thinking about it I was like wow. I never really thought about that. So thank you for bringing us water. Where do you see in the next ten to fifteen years because I? I know that that Midland is so important to you and I know that you're you're not gonNA stop volunteering. It'll be in a different capacity. Where where do you hope that our community goes well because we know that the per Michelle is one of the most productive sales in the top one or two in the world and keep mentioning technology? Analogy is so advanced with our old companies in just even here locally now a million will continue to be a top producer. I think that the Shell is strong. There's one hundred billion gallons of oil under here. They say there's still much more to be tapped. There's no reason to go all after at one time. So I think you're GONNA see millenial. Desa become the West Texas Metro. Strong Metro like you see in the in the METROPLEX or in Austin or Houston. We're going to be that big. We've seen data tell you that our population in the neck by twenty thirty could hit eight. Eight hundred thousand people between the two cities and then we know we have about twenty counties around us that could get us to that million easily so millan will will be a metropolis. It'll be exciting to watch it grow. The industry is on gas. Industry will always be there. But I think you'll see several different industries coming in so I was so important mixture roads. Water how zing. We've built more houses the medical and education as you alluded to worship that new bond coming play battle playoff yeah. What do you think's going to happen there? I know they're still well there. There there are still some some numbers that are still out there but it has for those of you have been following it. It had passed. It had not passed out his past again. Yeah so why do you think that is so important. And why. Why do you think it's important for the community to come together for? I can just tell you as the leader for the last six years as I talked to these. CEO's the all companies in any new industry moving in or or major business is we talk about education and they bring it up they they know about our education and you know it's not where the level it should be and so it's good to see this bond moving forward but I think what this bomb more than anything is more community unity in communication than ever ever so. Everybody knows the situation with our education. We know about Robin Hood that we're in. We know about the facilities the shape. They're in teacher shortage and everything. That's involved with academics. So I think you're going to start seeing more parents. More people get involved with education because it's such a high ticket item and and you've got so many different parties that are invested in. They care that they're going to start working together. Now that leads me to priority midland. So party millin was an initiative initiative. I started last year and that became because once every few months all of the five tax leaders would meet. We'd have lunch and we would talk about our issue. She so I've come to table and I'd say guys got roads. We got a labor shortage got housing water and I would just talk about it and the school system saying we need teachers but we don't have housing affordable housing the healthcare the hospital say are merging busting at the seams. We need more nurses. We can't do it because we can't get housing. So that host stage would go on and finally the Superintendent said. I wish you guys would have done something two years ago. And that was the final bottom line for me. And I said we're going to do something. And I called my chairman of the Millen Development. Twelve Inc Been Brent Hilliard Brent. We have got to go find fifteen hundred acres two thousand acres and put in housing. We got to put it in a small fire department apartments and it's got to be affordable housing so for example in in the in the city doesn't get into housing or none of the tax. Do but I said we've got to put the five tax. We've got to build houses and apartments for this group only where we can put nurses and teachers and first responders so that was kind of how that whole story started okay and then from there British. I've got a group that we need to talk to was McChrystal group. The macos group is the one that helped win the Iraqi war under General McChrystal. And that's where we are today so today priority Millan addresses. This is the five tax entities in their priorities And how are we going to find solutions to those issues and strategically plan. So that Millon doesn't suffer right and that's the goal. We we know that oil and gas companies are moving here and bringing their their their team members here. We want to give them the best community possible. Because I know no you love Midlands I love Midland. What is it that you love most about it? All the people people are amazing. Even the new people are moving in but growing up here. You know when we're eighty thousand people people you just played in your streets. Everybody did everything together with your neighbor. The churches were strong strong. And I'm a comeback on the churches and strong during this campaign season. There's more churches there's more denomination which is great because out care what it is. Long as you're going and working on your faith with another person and that makes our community stronger so we see so many different nationalities now and they're bringing different cultures but they're amazing people. We we have a Nigerian. We have the Burmese we have Puerto Ricans and I mean they all are amazing cultures until we're all starting to come together and fit in here but we need that workforce force man. We need experience but people making Midland the giving back our nonprofit are foundations mazing again. They'd never seen it like this in any other community community and and of course I might be a little biased but I really have never seen such a philanthropic community that if there is a need and we just saw that not that long ago will the unfortunate tragedy happened with the shooting the giving and just the outpouring of support when when a tragedy hits they come together when we had a teacher shortage problem. This was about three years ago. You saw the nonprofits. The I'm sorry. The foundations come together and put six million dollars to give teachers raises breath breath. I mean that was amazing story. I can tell you being the mayor the fire and police all these oil companies are buying them a best. Buy them the tools they need to protect our community in just to make sure that they're protected and they're safe so it's just examples like that the county has bought firetrucks and ambulances for the city and it goes on and on so this is a very very giving community. People were very giving we take care of each other the entrepreneur spirit. Here's amazing so mill is a land of opportunities. What advice would you give to an entrepreneur coming into our community and with your experience with the number one thing today? I will tell you that there are so many resources out there that you don't have to do it on your your own and because we've seen the oil and gas industry what I love about the oil and gas industry is you'll see these service workers and they've worked for that company companies that Service Company for five years and they've they've grasp it and they read on their own and they can go to the banks and the banks believe in them and support them then they can go to a Millan college cocktail and guilty small business training or the SBC and but there's just a resource everywhere to help you get on your feet and then before you know within two years. They're doing amazing with their company. So Millan is just again i. I've never seen so many opportunities come alive through midland in it's Resources what is the number one business told that has helped you as a business owner and also as mayor through the year so for me in my industry. The restaurants were very sorry. Whether whether it's a large corporation franchise or mom and pop like me. We work together and so like our Permutation Restaurant Association. It's amazing to to help each other. Pick up the phone. Saint you understand this new babies Texas alcohol Beverage Commission Law. You understand this new employment law and so I think for me within your own own industry making sure that you have that culture established and that you rely on help each other in lift each other up so get called all time. I'm out of this shortening or Org can I borrow one of your catering. 'cause we want each other to succeed and we want to protect our industry and be known as friendly restaurant industry. So you know helping each other out one and then in two again. I can't tell you. Within the city of Midland we have formed a collaboration of all the departments. So if Chris asked me a wants to take hate this podcast on another level and get your own standalone building downtown. We want you to come downtown and meet with all of our different departments to figure out the best way that you makes your business fit into that downtown business and how we can save you money. So why would you spend money on this when you could go. This way is what we would offer you. So maybe you suggest if someone is coming into town on an entrepreneur they come in and actually meet with the city. That's right and I that's your eye for any reach out to a city council member or the Planning Department and let us help you get on your on your feet. And then after that after they talked to me and we've gone through their blueprint. I'll say go to college. Go Talk to them about financing or planning business planning or maybe. Odessa has something and so we just have the resources and you know what we have to do it. We have to be sustainable on here. Because we're on our own right and and that is another good point point that a lot of people don't realize how far far away we are from big cities five and a half hours to every major city in Texas. So I'm looking forward as you keep mentioning these things as I go forward into my new chapter just being from behind the scenes and be able to like Jose Cuevas did for me get me in politics. I can't wait to take that new twenty five thirty year old. Who wants take steps into city government or a nonprofit or their own business? It's going to be exciting to help people that really is. That is going to be exciting. What do you want your legacy to be? You know that one is that gave back to my community and really took care. The people that people saw that I did this for our hometown for the people I did. I'm passionate about people succeeding and get. I know the trial and errors that I went through and I don't want people to have to suffer that much. I can help him succeed a little faster. That's what I WANNA WANNA do and and not to be fearful you know like no that there's through prayer and integrity communication and unity that you can succeed seed and that millions a great place to raise a family to do business. I always don't ever stop saying we'RE LIVING THE AMERICAN DREAM OUT HERE and a lot of people whenever I get to the interview worldwide reporters. I tell you wouldn't believe the American dreams out here. They're coming alive so true. You mentioned trials and errors and I think it's important. I think we all learn from from our mistakes or failures. I hate to call them that because I really feel like they really just push us forward to be better. Is there one instance that you could. Maybe maybe talk about that. Really kind of helped you may be shaped where you are today so I may get a little personal here but I'm going Barry. Let's get personal. Aw I'm not running for office more so in the last twelve years this politics and I never thought I was in politics but it is politics and it does it. It's it's hard on your family family. And so as I was talking to you now you know like my father going through dementia. Who would ever thought he would have gone through dementia and the impact? That your leader in your family can can no longer walk and talk in his losing his memory and has to go to assisted living. So That's tough on your family and you then you start to worry about your mother and and let me say well. I'm saying all these things you this is while you're trying to be mayor and run your restaurants or Your Business and then NBA Dad and GRANDPA. That's it and so then. Then there comes your son then getting married or goes grandkids. And then there's a son that gets in trouble and you have to go through that trial and error. And then as I mentioned I went through a divorce in in your like. Is God really really. You mean you hear that all the time God is really challenging me. Because you're the face of Midland you're the leader of Midland and one thing that I've never wanted to do was let me Lindau Mike. The citizens of Millen did not ask for this and so it was always important to me that I maintain a very professional image with integrity. That Karima restaurants that had to be run professionally. Because that was a vase midland reporters. Everybody came through our restaurants and then the city council is looking up to you and needed your guidance and so is important. Even though they knew that my trials that I was going through tribulations that they knew that you know what he's still being a leader and he's leading us and so in the hundred and fifty thousand people in Mellon did not it. Just I didn't want to get a black eye ever so in the back of mind I'd just praying and Frayne and even though it was hard sometimes in you're like buckling at the knees. You got to keep moving forward. You can't you can't break now. And so my bill was to be strong to be a leader and represent million because America Erica. The world was watching this because of the permian shell so it was tough. It's been tough like you've done a beautiful job and I think a lot of people would not know that you went through all that if they didn't know you personally personally that you have persevered and all those things just make you stronger and to that to that next phase of life they just you become more mature. You definitely definitely are more understanding of people situations. You're able to give better advice. And so as I go into this nick chapter everything that I've learned in the last twenty years especially in the last twelve. I know I'm going to be able to touch people's lives even more so and that's through the grace of God so what is next. What is the next chapter? Yeah I thought about that. You know I said I'm going to get through the rest of this year and enjoy family enjoy myself and then twenty twenty. I don't I think the first six months focus on the restaurants and no my son so excited to have me back in my daughter-in-law failed a mansion. Ashley is my Donald. She's also in the business. And so I'm I'm excited to work with those two and see how we grow our concept's US make him better. I have employees. have been with me. Twenty Five Twenty fifteen years and I mean a dozen of them fans so it's important that I give back to them so I would say I'm going to focus on that. I do WANNA serve on a state commission. That's one of my big goals. I WANNA get on state commission and then after that probably just take care of my industry and take jerry fantastic antastic. And we haven't even mentioned her and she's so amazing your sister so the I know that she was instrumental and always has been in supporting you. And when you've run for office and and she is just an amazing woman and so I just did not want to go this whole podcast. and not mentioned Cindy because I know she is so important in your life because you are your your your family owned business you also are if anyone has been to your business. They know that Cindy's is right next to yours. All right there together in real quick. So Cindy's a firebaugh. Aw cynicism fireball and you talk about the glue the glue our family and so for her for this mayorship. She knew really. She didn't know where I was going to but she didn't care. She stepped in. Dan took a leadership role and assist or to make sure everything was okay and then my brother-in-law Greg was my treasurer. He works with Sydney. So sending Greg work together and they took Over MOM and dad's insurance company and then no raise my brother. WHO's an attorney in Austin and those are the siblings and then but as a family we we also all support each other? We don't we had this meeting the other day. Our family family means all time and Cindy mom in our talking about my dad and his dementia situation but but what we what what we mentioned is we never fight. We never argue. We never put each other down. We never curse and for each other. It's an amazing relationship. And so when when whenever we do get to a point we just make sure that we picked each other up and Cindy is definitely our glue. And I'm glad you brought her. Okay she deserves all the credit she. I just wanted to give her a shot. I think I think thinks she's just such a lovely lady so I also want to ask you before because we're running out of time. I know it's gone quick. Is there anything coming into this interview that you were like. ooh I hope that the listeners get to know this about me or anything important that you feel you wanNA share. Yeah you know I I think this is probably the most personal I've ever been in six years on a conversation I had reshaped what say reporter and the only reason is is now I know that I don't have a leadership role in even though I I think from behind the scenes all have a strong leadership ship role but I think it's now it's time to get personal until people what I went through and how hard we had to work for six years because we were one of the fastest growing cities in the nation and I mean fast and with that going on there was family challenges. There was restaurant challenge business challenges. And it's not an easy role but you know what we can and do it. We can help each other so for me to be able to share. That feels good and exciting. Because I know there's people out there that are struggling. I know people out there that on top of the world and doing great but sometimes they just need to know that there's somebody else out there going through the same issues in challenges in so we just got to have support each other even help each other out again. That's the community that we live in. Do you have a favorite quote or Bible verse that maybe got you through this time. I probably do but I don't know what it is. No going to answer that. That's okay that's all right. I know I was your personal. I thought okay. Let's just keep going. Well I really appreciate you sharing this time with us. It has been so wonderful hurtful to hear more about how you got to where you are. And just and I think it's always important to know that you're not alone and with struggles in the up and down in the gas business and and just life and family in general because it's not easy but if you just you know just hold on and keep keep going keep on keeping on just believe I believe and believe that it's all it's all going to work out. It's right and on behalf of the community. I want to thank you for your service because I know the last twelve years you've put your heart and soul into midland and I think a lot of people don't realize what really goes into that and so thank you on behalf of sand you and all of Y'all there's so many servants out here in your one example. Your husband is a great example but to the leadership council and all the tech. There's you're right when you put your face on that leadership it's tough and Kudos goes to them absolutely if anyone wants to reach out to you or find you. I know you're on social media. Let's let everybody know where the restaurants are and also that way we can support you as you go for the commit. The commission you said we'll see I'm going to try to look for a state commission. I talked to Tom Credits Bureaucratic and I said I'm like didn't he sent me a list. So I'm going to go through it and see what I do. They're very good. Yeah so head of this Cossiga where twenty four o seven North Bickering Street and again. We're on facebook so definitely go to facebook facebook find us and then there's the Mulberry Cafe on one Lee Street twenty-one westwardly street and then we have the downtown location in the best way to found the Mulberry Downtown Location is inside the Frost Bank building on Wall Street. So please check out one of our locations as I mentioned earlier in the discussion. And everything's fresh we're family owned and we really work on that you know service it's GonNa get better now that I'm back Jerry. Thank you so much. We appreciate you spending this time with us. And of course all you've done for the permanent base and so they do honor thank you. It's now time to announce today's community. MVP and our community MVP is three eleven ministries industries under the direction of the Amazing Stephanie. Will banks and hundreds of volunteers. Three eleven helps children and families by making their Christmas brighter last year. Three eleven eleven provided a full Christmas package to one thousand eight hundred twenty seven children. But it's more than that. Three eleven a nonprofit with a total of six programs that help children children in our community. They couldn't do without volunteers. So few would like to volunteer. Or more information on how you can donate go to three eleven ministries dot org a special thanks to Baker Hughes for Sponsoring Permian Perspective Baker Hughes as you know recently launched a new and reimagined Baker Hughes Brand as an energy technology company company. They are striving to make energy safer cleaner and more efficient for people in the planet. And that's it another special. Thank you to mayor. Jerry Morales for sharing with us today. Today we really appreciate his time and his knowledge and just his honesty and openness with us today and this concludes our episode of Permian Perspective. The story behind behind the oil and gas leaders in the Permian Basin so just remember my motto dream. Big believe in yourself and never give up you make it a great day. Hey guys here with the events on December we'll be having to OBGYN happy hours to kick off. Twenty twenty one will be in January in Houston we have not announce a date yet. But we'll get back with you guys soon on that and we will be having our first happy hour in Pittsburgh in February twenty twenty also with the date coming soon so stay tuned on those upcoming events include the bells of Houston a masquerade unmasking the stigma of PTSD this will take place on December fifth in Houston the Latin America oil and gas summit is December fifth and six in Uruguay the API energy. Houston Houston chapter. General Meeting will be held on December eleventh. Two Thousand Nineteen in Huston. The wildcatters ball is taking place on February seventh twenty twenty twenty in Houston and lastly the IP A leaders industry luncheon will be held on December eleventh in Houston. That's all the events events for this month. Guys be sure to tune in at the beginning of January to see what's happening Ben tune in next week for another episode of Permian Perspective breath production of the oil and gas global network learn more at W._W._W.. Dot O._B._G._Y._N. DOT COM.
First Friday Q&A on Oil and Gas This Week OGTW197
"You're listening to the oil and gas this week cut cast with Martin liqueur and decor soap or busy oil frozen quickly. Want to keep their finger on the pulse. What is he going on guys? Welcome back from another episode of the when we yes we podcasts and into episode one hundred ninety seven were getting close at two hundred mark mark. Mark Mark Varga at. We got some special plan for two hundred episode. Hopefully this corona vars thing. Does it keep us from getting together because if it does we'll push it out so where can get together but just stay tuned? We got some cool stuff going on the Jake. You how much we love our sponsors whole bunch a whole bunch and so we've been very lucky here. Og we picked up some new sponsors so big shout out to our existing sponsors IBM tight water Baker Hughes New Tannock's but our new sponsors are really cool too so he's picked up Amazon Technique Deafen. See the well boss Interest Houser. Saxon and drager so big. Shout to all the our new sponsor coming on some of them are picking up some older shows and some of them are actually starting their own show stay tuned audience. We got a whole bunch of stuff coming next month. Busiest hell but this is the first Friday. Qna although it's not actually Friday. Let's get into questions actually before we get into questions. Do the Review Jake. Yes we got to review from our good buddy. David Ramsden would as a lot of you know. He's become quite notorious on linked in over the past year. He writes love of Mark and Jake. You're doing and have done for getting a voice of the industry out in the Airways for professionals and amateurs alike cube great work levy guys. Dirw Love Levin Hugs. Dr In. He's not controversial at all. Now not now one bit. Usually just like boring in lake stays in the center lane and that yeah go check about. He also just released a book to it. Needs definitely sold more than six hundred copies. So he's got a podcast new book super. Check him out. He's a good friend of the show. I was joking people. He is very controversial. Actually loved that very much. Speaking the truth about what's going on what needs to change so delicious. Podcast is actually really good artists. Get right into the questions. You guys know the drill. You guys writing questions. We try to answer them. And hopefully don't shut stump us or asking for single again so for question up from Stephen Uses senior industry analyst at NALCO champion Red Slow. The podcast always looked forward to a new episode. Keep up the good work. I got two questions question one. Us and Canada have a public data set in FRAC focuses their public data set for offshore completions. The only one that I know of in the US in any of our Canadian listeners. Please chime 'cause I don't know how it's in Canada but the only WANNA know hearing. Us's Bessie B B Dot Com. They have a huge data center. All this stuff's going off shore and you can query ball kinds of different methods. The website itself is Kinda dated the way it looks and the way it runs. But it's a full the wealth of information. That's the only one I know of yet. I'm and I have a ton of experience and most of my work has been on shore particularly upstream and so I don't know of any but would love to know if anybody knows of one. Please let us know listeners. Now second question from Steven is for the completion. Chemicals segment oil and gas seems more. Operators are D- bundling by buying chemicals right from the chemical manufacturer instead of bundling chemical package provided by a service company is going to be the trend moving forward or will it be an about face in. The operators will go back to the bundled model of the positives and negatives of both who? That's a bunch of questions in their slip. Let me just say what I've seen going on in the last ten years so it used to be that all the chemicals not just things for completion but all the own gas chemicals were bought through the service companies and the reason they did that number one. It was easy to right one. Po instead of two number two if the chemicals weren't what they were supposed to be service companies on the hook not the manufacturer and the Chinese entered the market and they dumped a bunch of low-cost chemicals on the market in the very beginning. They were a lot of quality stuff. But then of course equality declined. And what happened? Is You thought your by X. And you're in what you actually got was X. minus half and so now it's back to at least here in North America where people are buying chemicals through the manufacturers. It's sort of like what Sam Walton rely. So Sam Walton's genius was it and build a whole bunch of retail Walmart stores with Sam's waltz genius. Was He figured out that back then? The distributors of ones. Making all the money so if you wanted to buy say tide laundry soap tied manufacturing back then then they send it to a big distributor who then sold it to retailers. It's what Sam Walton figuring out is. The logistics is where the money made she got rid of distribute got middle rhythm middleman and tied shipped laudi churches straight to the stores and he had a bunch of technology in place to make sure that was efficient. Way To run things. And that's what you're seeing right now in August and chemicals. You're seeing that. The operators have figured off the skip the middle of the distributor or the service company. They get stuff much cheaper now. What I think's GonNa Happen is as we continue down this road of more and more technology coming in especially in upstream. I think you could see the service companies bundle things like chemicals along with their technology along with their services so I think you could see the model swing and a big circle about two years and I think it about two years from now in North America in upstream you'll see the chemicals come back to be predominantly delivered by the service companies. But right now. It's all about getting her that middleman and lowering. The cost of your operations actually seen a one chemical provider in particular geochemical. We had him on the oil and gas sort of show on like six months ago but one thing that they provided was not only. Do they have like this? Does van that comes out in the the the chemicals you'll the work but they also provide you analytics on top of that if actually what is working what is not working and so. I see more and more of that of of a company's becoming more data analytics companies on top of traditionally pretty analog businesses and places where there really hasn't been a whole lot of structured data before and that leads me. Answer the question from my point of view. But that's why see things going. No you're exactly right jake. So what's GonNa Happen? What happened a few years? Those chemicals will be able to be tweaked per operator per well per completion portfolio. So you're not GONNA get that type of on demand changing of the formula little bit from the manufacturer who ran out manufacturers at bulk. I think in a few years to come back to your point because of technology and the people that are actually delivered we'll be the service companies but bill tweak those chemical compositions to drive officiency. I think it's just that's just right around the corner. Absolutely next question is from Tom. Logger add schlumberger. Back of Jake. I WanNa see how good of a job he hasn't been doing this. Podcast is extremely informative in has been a great resource for someone like myself who is just started in the in stream. Thanks don appreciate it. My question is what the economics of petrochemicals in today's market. I recently read that. Exxon Mobil have reported a drop in profits for the fourth quarter. Seeing that profit margins for finding it. Chemicals have deteriorated. I was under the impression that would cheap oil and gas prices petrochemical production would should be booming with a larger profit margins. Can you guys explain why this isn't the case or from getting the wrong end up stick? So you're absolutely right so of course. Exxon Mobil Corporation has dropped prophets for bunch of reasons. The same reasons a lot of other companies are suffering but back in twenty six eighteen. When everybody was suffer. Low CRUDE PRICES EXXONMOBIL'S PETROCHEMICAL. Division was booming fact. Their international petrochemical vision in that year grew one hundred percent revenue year-over-year and if you're as big as Exxon Mobil and a piece of your business grows one hundred percent that's that Unicor right. That's at once in a lifetime type of thing. What's happening is because the low crude and natural gas prices have continued that the petrochemical market has boomed here in the Gulf coast. We spent almost one hundred billion dollars in new petrochemical plants including things like ethylene crackers in the same things happen across the US and across the world. Actually so the reason you're seeing this drop and petrochemical margins is because so many new players have entered the market. You know the people that got it right back. In Twenty say twelve twenty thirteen and either grew their petrochemical plants. New built new ones are stood up. Ethylene crackers made a hun- a prophets and because you're making profits. More people entered like you see. It's always supplied man and now you're starting to see those margins be squeezed because there's so much more competition out there but the bottom line is the petrochemical part of oil and gas industry is growing. It will continue to grow and it will continue to grow into the world's population levels out which is another whole story in itself. But you got the story exactly right. You read the article if they go into detail about how. Exxon has a whole upstream. Operations or pipeline operations has suffered and petrochemicals which save them back in two thousand sixteen. Seventeen isn't as prophets. Used to be and it's not as profitable as it used to be because you have more competition absolutely. Petrochemical is not my space so mark much better than I have so from James Uses student. He writes thank you for the very informative podcast. I'm listening for quite some time after setting to go into petroleum engineering. I'm now in my second year on a like a lot. However I see the wolves changing away from oil and intended to move on to a different major. Is that a good idea or not. I'm not sure. Can you tell me what to do if you're starting out at this time? So we've covered this one a lot especially I mean really since the beginning but I feel more particularly over the last like six months or so. Obviously were in a transitional phase for oil and gas particularly upstream particularly on shale. It's a tough time. I think especially with the overreaction to corona virus and the implications and asked for the global markets along with the news which we totally forgot to talk about the beginning of OPEC has not reached agreement on any of the production cuts in. So it seems that everybody's posturing they're all gonna just open the floodgates and just completely World with with an oversupply of crude. In so everybody's speculating. That oil prices. GonNa Drive Down to blow thirties like we saw in fifteen or maybe even lower than that with. That's actually going to happen or not. I don't particularly know if that does happen. That's bad news for a lot of people. A lot of a lot of people are GONNA BE OUT OF JOBS. Unfortunately and a lot of them are going to be engineers so. I would say in the event that that does happen. I think you're kind of vulnerable by completely pigeon holing yourself into one thing that we talked about a lot in the past is that I know a lot of mechanical engineers that are petroleum engineers mechanical engineers who are software engineers and mechanical engineers. Who are civil or anything else? And so. That's my personal advice is you're able to head yourself against the cyclical nature of this business. You can never predict commodity prices but in addition to that like we've said a million times the thing is to also broaden your skill set in learn a little bit of data science and Monia Code. And that's going to be extremely valuable. I have a good friend who actually was a petroleum engineer. When really heavy on the data science side got put in charge of data science project at a very large operator huge? Us He fell so in love. The data science side of things in wanted to do more. That actually went off to work at a grocery store essentially but not actually stocking shelves or anything but actually on the data science side and so I've seen a lot more that and that's not to be pessimistic our industry. And that's not to say you should come to this because there's a lot of opportunity but I think you should hedge yourself against the cyclical nature of the business and some of the political implications that you can't control alike. Took the poor student James Question through the OPEC thing it probably scared the Bejesus out of him and his entire class. They're all switching to home. Ec. Major's right now so so James. I agree with everything Jake said but because of this negative public perception. There's already short of Charleena Juniors and your second year in school which means you get out in two years. I think you get out. There's such a short petroleum engineers. You have twenty job offers waiting for you when you get out but jake is right in that especially petroleum. Engineering is very niche tends to be only upstream. Only when times are good. They hired petroleum engineers. I will say this much last time I checked is one of the highest paid jobs out of school just but that means you have to get a job so agreed that you need to hedge. That was something else that is not related to hydrocarbons data. Science is always great same. Learn how to sling some code but the other thing is it's interesting so jake talk a little bit about OPEC has come to agreement yet. Russia's saying they don't care they're flood the market. I think it's political posturing anytime you negotiating contracts that scale in the news. You'RE GONNA posture to try to sway the other side. I don't think it's either good for OPEC or for Russia to have thirty dollars. A barrel for oil that I think they both know that but regardless the upstream part of our industry cycles back and forth. And you have something else that makes you valuable. It's great but one thing you said in your note that WanNa talk a little bit. Is that the world has changed moving away from oil. That's not true and it's really interesting so you would believe that if you look at all. The automobile manufactures just recently finished car. Shopping picked two vehicles and I shopped for a few months and Jake. Do you know how many electric vehicles assault and dealers? Lots a whole bunch was. Actually I really know so I remember this is just in Houston right the just the places looking but of all the lots. I went to the only lot that had electric vehicles on the lot. That you could go test drive was Honda. Said they had him. He said they were coming but they weren't any on the lot and it was really interesting to me to look at the buzz now. A perfect example. I bought two infinity's well about six years ago. Infinity Corporation who's owned by Nissan said that by year twenty twenty half of their vehicles electric will jake about to infinity's in a Nissan. I mean he does have a single electric vehicle lot. They have some hybrids but electric vehicles. So it's really interesting to watch what the public especially the automobile manufacturer saying you had. Gm made a big announcement account electric. Hummer and I'm sure they will which appears to be really cool but a different than what people are actually buying and the demand for. Hydrocarbons GOES UP EVERY YEAR. The thing that gets kind of scoreless much does it go up so this Kuroda viruses causing a slowdown in manufacturing in China which is causing a slowdown the demand for hydrocarbons but the demand is still there. And it's still going up now. It's not going up four five percent like we like it. It's GonNa Point Zero Zero two percents. I'm not real worried about. Hydrocarbons disappeared what I am worried about. Is Public perception making it harder and harder for for our industry to make profits? So it's it's you know I would not be worried at all about James. About graduate If you have something else to fall back on something. That's not petroleum related. Just understand that when you get out. In two years up shing -partment industries could be a totally different industry than it is now but we still need patrol. Engineers will always be truly matures absolutely. See a little bit of a little bit of the optimistic side. A little bit of the pessimistic side but regardless if we're just keep unreal and ask questions from Michael who is also a student. Your Rights Market Jake. First off huge fan of the podcast. I'm a political science major that is set to graduate in. May I believe as a political science major possess a unique understanding of how geopolitical conflicts affect the global markets in regard to energy demand and supply? I believe I can bring value to companies through this but I do. Lack of financial knowledge typically desired for entry level positions. Do you have any recommendations on a career? Were Education Path to get my foot in the door with the industry. You Know Jake Libyan students. I will quick so first thing Michael. I wouldn't worry about the financial acronym believe it or not. That is a pretty common skill. Set the geopolitical part is not a pretty common skill set. So I was you. I'd be banging on the big consulting doors to Ernestine Young's the KPMG'S THE MCKENZIE'S. They will have geopolitical practices internally to help their oil and gas clients. And if you can just get in the door. One of those companies and start learning the nuts bolts of how global geopolitics affects the oil and gas. And she I think you. After a couple years you can have a skill set and experience at that very very few people have the financial acronym is important but there's way more people that understand the dollars and since August. That understands geopolitics even even some very senior people in our industry even you know some executive. Vp's and directors of some largest super majors out. There don't really understand geopolitics and it's a hard thing to get your hands around just because it varies so much between country country so I really think you're better off concentrating on your geopolitical background. Get some work experience. One of the big consulting companies and then really the sky's the limit. You could work for super-major Start Your own consulting company. I would definitely Koch Religio political part of what you're doing right now. Yeah I agree. A hundred percent consulting great thing to get into way. Mark said all these consulting firms have a huge geopolitical and economical component to their business in pushing me a lot of money to and from what I hear people who really enjoy consulting when they like to say about his younger doing new projects all the time. So it's not necessarily the same thing over and over again so look into. Obviously those are not companies that are easy to get into. I think kind of where you go to school plays a big part. Fortunately so something to look into. I think if you just brought up next question from an anonymous Shetland love it. I would say market. Jake I WANNA share with this week. So the encouraging the executive vice president of Technology Projects Services CEO in upstream townhall today was asked about why Chevron quickly transitioning to green energy clearly and unequivocally stated that the world would need oil and gas for the foreseeable future in other worldwide economy cannot run without. It elaborated for a solid two or three minutes. It was very encouraging because it might experience even in this country. Many people who don't seem to understand the importance of our industry. I wish this dialogue could've been put on Youtube frigging love this and Chevron. Don't try to figure out. Who anonymous is this this type of stuff chevron putting out not earn our podcast and he's right there should have been put on Youtube. You know it's it bothers me that they're people are industry that understand the truth that understand that it's not necessarily align with current public perception and so they're bit fearful and I'm not talking about you know that you need to be talking about your opinions and politics ultimate. Just the truth what he said. Here's actually a truce. The world economy cannot wrote out. Hydrocarbons every glad they're semi in Chevron especially a senior person telling the truth to their people now wish they would make this public. Yes in fact Chevron if you WANNA make this public late jake and I know and we'll come record with you and we can have a great discussion around this but this is really cool. It's my road. Let us know that you know some senior leaderships in one of the Super Majors understands reality. What's going on not what public perception says today in Twenty Twenty and absolutely? I think it's a fantastic thing especially from a company of this size when there's a whole lot of greenwashing going on there's a whole lot of the issues of kind of pressuring some of the beer companies will and like you said a companies like this are not putting out the kind of content they need. It would be fantastic if a company like Chevron was putting out this kind of content letting people know that it will needs oil and gas in your energy is important component of the future. And it's something we have to pay attention to but it's not necessarily one of the other. I think it's it's both and so I would. I would love to see them. Put out something. That was not the only thing I can references that one. Api commercial from the Super Bowl was related accomplish whole lot but anyways next question from Chris who is a senior financial analysis somewhere roads. I just recently found this podcast and it's been a great addition to my library. Information is inciteful and help me better understand the global nature of our industry in how we fit in. Keep up the good work. I started my career as a refining engineer. Moved into the finance world a few years back what I've noticed that while we fit into the energy sector our company in other publicly traded companies seem to be a financial engine that is funded by our core technical operations so to me a lot of what we do comes back to the bottom line. In the question of how. We're Mickey Money for shareholders and investors. So my question is twofold so first question is given that industry is complex and has lard revenue streams. We are ripe for activist. Investors to sweep in enforce changes with your experience in the industry. How has this shaped current space in your opinion has this positively or negatively impacted street as a whole over the past twenty years? So let me take a real quick shot at so. This'll be something you probably would expect. You say in some ways actually a lot of ways except it's affecting industry very positively when Exxon Valdez Spill. Activists CAME IN ENVIRONMENTAL ACTIVISTS. Came in and force changed that quite frankly was good for the entire industry for chain around each metrics force. Change on how we operate. It forced change in the amount of money we invest in cleanup tools and processes in where we store that. So if there's mercy quickly get the right tools and people to their site. We needed to have happened. So in that case it's helped us. The thing worried about is not the last twenty years. It's the next twenty years where you're seeing activists come in and you're spot on because of the way. Our business is structured because large complex. Large revenue streams. It's relatively easier for political and financial activists to come in and change course. And that's what I'm worried about. Now you're looking at people. Not being able to drill pipelines up being able built us not being able to use water. Let's not be disposed to produce water and all that stuff is being driven by activists who don't understand our industry and what's happened is you can drive cost up and you could drive costs up to the point that stuff that people can afford now such as cars or six packs of Budweiser's on the weekend or you're makeup may get pushed appointed so expensive. The common person can't afford it anymore. And so then you could create that wealth inequality you could make it even worse because you're adding layer of cost to an industry as vitamin concept. The past twenty years actually think a lot of activism helped us the future the next twenty years. What are really really worried about. Second question is recently. Jp Morgan Chase came to the market sitting. They will pull financial support for some fossil fuels which we talked last upset mainly they will not finance the new oil and gas development. The Arctic and will significantly decrease investment in. Coal is just a small portion of fossil fuel portfolio. But they are by far the largest also fuel lender but as a signal of more to come. My question is this. If large financial institutions do begin to pull the support for industry. Where does the space go for? Its funding needs. So is this a sign of things to come yes? There's going to be a lot more of this over. The last year have been very involved in talking to a lot of the big players. And we're GONNA see a lot of this. It's a little bit unfortunate. Wall Street is in part to blame but especially the shale industry has also kind of screwed us on a little bit of a way. But where's the money going to come from it? That doesn't mean that all money is completely drying up. There's a ton of money that is waiting on the sidelines to come into the industry invest. But they're looking for good returns. Okay Nanto the fact. The matter is that the shale industry hasn't returned what they said they were going to and so when you do that time and time again. Investors get burned but is there an opportunity to make returns in this industry absolutely? We talked about this in the last episode of other countries. You can necessarily give can returns that you can get in oil and gas and so we have a ton of foreign investors with a ton of worth individuals a ton of family offices that have no pressure whatsoever. These guys can make decisions completely on their own. And so those are the guys are going to be getting into the oil and gas industry but they need to find good investments. I think the challenge is going to be given the current climate. So Chris so first thing. All Global Network has decided. We're not invest in Arctic. And we're not investing coal. The truth is nobody's invested in Arkwright now investigating coal so the fact that JP Morgan sending were doing it does it. Matter 'cause nobody's doing wells Fargo. Just yesterday came out the statement saying they're not investing Arctic drilling. Nobody's investing Arctic drilling right now. That oil is so expensive. You know if we tend to if we go below fifty or forty dollars a barrel. I mean it just doesn't make financial sense all needs to be around one hundred ten dollars a barrel to make fiscal since to drill and produce an Arctic. So nobody's junior so the fact that he's copies come out and say they're not doing it doesn't matter 'cause nobody's doing the other thing. I WANNA agreed jake. One hundred percent one hundred ten percent actually but the other thing is because of technology. You're seeing new wastes invest in our industry. You're seeing Jake probably news companies which you're seeing fractional investment companies being stood up using tech where you know ten years ago if Jake and I wanted to invest in some assets in Oklahoma we had a bill right check for ten million dollars. Now we can check for five hundred bucks and whole other people right check for five hundred bucks and now we've invested in assets in Oklahoma. I think that's GONNA be a big wave of the future but the industry's changing upstream. In the way we finance projects not just an object actually say these pipelines right now for some of the same reasons but the way they used to finance pipeline projects is changing right now as well now everybody gets a little bit worried when things change because human nature is. We don't like change but every time there's changes opportunity so if you're in the industry for thinking about getting in the industry look at how these changes are happening from a financial investment. Point of view is figure out where you can make a dollar off that income into it. Absolutely next question is from Rubio so easy. Kim Question Graduate Student who actually won the shirt. Oh that's right. He said the picture of forgot about that. So now he's coming in. He's coming in swing. Mark said why he always referred to academia with a bad inefficient connotation. You know we also do cool stuff for the industry to love the show up totally busted on that when I read. This is like you had to think about from it. And it's not a big fun of academia but what you'll hear me say a lot I'm gonNA try really hard to quit saying it. Because he's right. There are a lot of great stuff not only comes out of academia. The truth is a whole bunch of really awesome stuff. Come out a students like having graduated yet. They come up the best ideas the best processes new techniques new technologies. The thing make fun of sometimes though is that for longtime our industry especially in upstream has fell in love with the theory. Like oh we can do this. The academia part of this and what I've been saying for a lot of times they don't show me academia. Show me where. Somebody's actually really doing it in the field to make sense where the rubber hits the road works. Execute will. But you're absolutely right. I've been saying academia in a slightly negative way and I gotta quit doing it because a lot of great stuff comes out of academia so my apologies and I'm working on trying to change the way I talk about that stuff. Last question of the week is from the Niece Sousa project manager at Halliburton a jake. Last name Hieber say that if she some Louisiana. It's a bear which you would never think you'd get a beer out of that word but anyway it's just funny when speaking of that I. I Call Justin Goaty. Justin gaither like six months. We gotta work on your French hits. It's awful Eretz. Hey guys love the show so much that sometimes my friends and I will get together and listen to my house while drinking wine silly had no here. My question was the CEO belt that Mrs Interesting Sweep. I hope we're entertaining. I guess so here my questions what do you think. The future of podcasting. How large in old companies best UC PODCAST for their business? What about individuals and their careers? Please keep the great work and if you could buy two publishing one show week that I can make us even happier. We've been blessed by a decent. Halliburton drinking wine pile casting. We're not even out of the national anthem if we're looking at it in terms of innings by casting as a huge huge future moving forward and it's so funny because it's actually been around for what eleven years now you know the longer it took a long time to catch on but once it did. It's absolutely blown up. And we've seen as a ton of moving the space that is really validating the fact that podcasting is becoming a bigger and bigger thing so the CEO of spotify was actually. He was quoted as saying the reason that they're investing so heavily into podcast. Because podcasting an audio books things like that are consuming more people's quote unquote ambient time. So what do you mean by? That is really downtime. It's when you're doing the dishes is when you're driving. It's maybe when you're working. You know more people are starting to wear headphones or air pods the I have a set of those now in its Leave men half the day. Because I'm listening to a PODCAST E book or I'm taking calls on it so I think the future Pike Essy's extremely bright I think power of audio is that you can still go about your day and be doing things as opposed video at ease. Really all of your attention. I think video has a bright future as well but I think podcasting is definitely works at individuals careers. I think it's a it depends on what you do. I think you have to be a little bit interesting sometimes or provide some kind of educational tool to people. But I think it's a great way to showcase your expertise to help you stand out amongst other individuals. It's the future. Podcast is great. It's interesting so if you look at what like net flicks is done lately. They've figured out so. Netflix is not immediate company. Netflix is a big data analytics company. That happens to get their data from the media that you consume it so net flicks knows if you're thirty five year old male and you're married you have household income between one hundred hundred fifty thousand dollars that you like X. type of programs will now. They're creating those type of programs in house right because they have the data to know exactly what's hit the old Hollywood way of doing it. Is You would put out some shows. You would do a pilot. And you'd see people listen you get your Nelson results. And then you'd figure if you wanted to go and make another sees which was a big risk of big financial risk the new ways these content providers are now figured out what they WANNA know ahead of time in their monetize it themselves. Their produce the content themselves without going outside without going to the Hollywood and the reason I bring all it up is apple depending on who you believe is between seventy and eighty percent of all podcast traffic in the world. They are eight hundred pound gorilla. And we've had some conversations with them. I'm firmly convinced they're going down that same route where they're going to get certain creators to create unique content for Apple. That will be behind some type of paywall and so I think the future is great. The one thing I have my own is augmented reality. Jake hit the nail on the head. The power the podcast is that you can do other stuff while you're listening you can drive. You can wash dishes. You can work out. It's the same thing I do. It's it's it's a great way to learn while I'm doing something else. I listen a ton of podcast. Augmented reality actually. Has that same potential? Where you wear the the Google glasses are you wearing the contact lens and you can still function to do other stuff but learn consume content so we have an iron. Augmented reality is is maybe touching. Podcast is some way the very near future. But like Jake said it's only grow and it's only growing bigger. It's like seven thousand new podcasts that day aluminum tubes insane next question. How can large in old companies or whatever? She's talking about large companies best. She's a podcast for business. The first place to start is internal communications now if you work for big companies like Halliburton your pr people in your HR people internally. Cindy's thirty slide powerpoint decks only seven-page emails telling you what's coming up next year and it could be something simple as how your health benefits or changing. Why don't you turn out to podcast? We're actually working with two companies right now. Too Big also full service comes and helps them stand up their own internal podcasts. For this exact reason. It's a great way to communicate with your employees. The only thing that's hard about it is very easy to download podcasts on itunes. However you can't yet separate your internal podcasts from police podcast in things so you have to create some type of site where you're placing listen to it in the key. There's make it as easy as possible for them to download it and listen to it on whatever mobile device they're using because if you make people listen to your pot internal podcast on a desktop or laptop is not going anywhere. But that's a great way for a large company. Use It is for internal communications. And then once you get comfortable with that and you're okay with it you realize the world's knock in because you have an internal podcasts. Think about External think about using his way to educate your current customers in your future customers. Podcasts greater that the without individuals in their careers you know Jake you and I both have benefit. I mean honestly from a career point of view and from a financial point of view by having this podcast in in our other podcasts so I think if you have a good story to tell I think it could benefit your career and quite frankly if you work in oil and gas. It's probably not a bad. Thank you have a side Gig where you make a little bit of money in a podcast? You can do that relatively easy. Ask the more niche. Your Continents Niche expertise is the easier. It is to monetize that so I think he can help you. Both your career and as an individual. You know you get to meet people that you normally wouldn't get to meet. I mean on some of our shows. We've had some people on the shows that we would've never got to meet when I was working for corporate. You know but having the pockets allows we beat people. Interact with us. I think it's a good all the way around. And then I get it Jake and I. I know we don't always publish a show every week. We're working just keep your fingers crossed. Just drink some more wine. I guess at wraps up the questions for this week so like you heard. Us Talk With Raheel Leo. He actually received the the very unique. Obgyn it has a t-shirt so it has the was. It called the patent. The paper pump check yup on their comes inside in official origin insulated. Tumbler redrawing. Each one of these serialized in so when you're doing a drawing giving away some grand prizes to pay attention to that so just go to link in the show notes. Sign up for that your chance to win one of those. Let's see what the weekly recount is doing? We are were stagnant ready. Thirteen has really hasn't gone anywhere. It's the exact same. Where was last week? A Bet Vicks week it makes a big change. I one hundred percent not gonNa make a big think racial on liberal quick. Get back to the shirt so you taught. Her Jacob talked about two or episode. We're doing something really cool. One big service companies. I'm telling you people were invited. A select few people to come see this person and one of the ways. We're invite people people have this unique serial number and it won't be the only way it's one of the ways so go register putting there go register for that. Then you heard US talk about the street team. We actually got swag shake X. out to Catherine. She founded designer. Should they designed a shirt the street team? And it is the coolest frigging shirt and put some money into. This is some seven dollars shirt but join a street team. We asked for an hour's worth of work a week. We don't care where you are in the world and quite honestly if you can't do an hour's worth of work we're okay with that we knew life gets away. You're basically just helping us a social media so cool swag you get to join us as part of a pressing for in your local area get live events for free all for click. Unlike in Sharon stuff on social media says pretty good deal and then she went to know about all of events that are going on only gas industry plus some of the ones that private sign up for the monthly events newsletter. The links in the show note and then if you went jacomb speak at your core virus. No Up Joking Jake. Speak at your sales kickoff marking kickoff. Your University Young Professionals Club your industry meeting whatever let us. Don't be happy to share the details. I probably should not a joke about the absorb people. I just find the overreaction funding and then why not go ahead and go to the website use your email address and we promise not to spam you and finally joined the Lincoln Group. It's what the number is is growing quick but it's getting really cool great content. Everything's moderate by real persons to new spam there. Nobody trying to sell you doorknobs or whatever damp psychosis along show where I was forty minutes ready to get out of here. Let's go. I remember. Folks do great work. Pay It forward and we will see you next time. Hey everybody Alex here. With the events on deck for the next month we have some exciting things coming up to happy hours one in Pittsburgh and one in Denver so the first one will be happening on March twenty second at Bubbas Gourmet Burgers and beer. This event won't be from four to seven and will feature a live recording of oil and gas this week with Jake Corley Markel Corp so be sure to check that out you can sign up via our social media. We have an event bright sign up and should be good to go from there. The next event will be a happy hour in Denver at Liberty Oilfield Services on April second once again check our social media for the event bright sign off and sign up there ask some of our social media followers no we are headed to Aberdeen Scotland the first week of March but he had a couple of days actually for Doku con creating high impact sales and energy dokru excited to launch its very first sales development conference and Obgyn's mark and Patrick will be hosting a panel and recording a live podcast. So we're really excited to be joining map. The leaders in industry luncheon is on March eleventh at the Petroleum Club of Houston. Port of the future is happening on March tenth and Eleventh in Houston your registration to the port of the future conference also allows you access to exclusive events including TSA security and terrorism research showcase and many more so be sure to view the agenda and see what they are offering the Houston energy. Breakfast will be on March twentieth at the Norris Conference Center in Houston the API Energy Houston three gun. Chapter will be on March twentieth this spilling out very quickly so make sure to get a team in as soon as possible. The BP Energy Outlook Twenty twenty edition will be on April twenty. First it's happening online and this event is about transitions that will take place to a low. Carbon Energy System does offer this month. Everybody hope you guys have a good month and check back in next month to see what we're having thanked next week for another informative and entertaining episode of Oil and gas this week. Podcast a product of the oil and gas global networks. Learn more at Moreland this week dot com.
We Choose Our Future on Permian Perspective- PP032
"The Permian Basin is an abundant oil and gas producing area already one of the world's leading oil producing regions the area in West Texas and southeastern New Mexico could nearly double crude oil production by the year. Twenty twenty three but who are the leaders behind this economic powerhouse and what is their story. This is permian perspective. I'm your host Krista s skinny. Today's podcast is sponsored by Baker Hughes. Hello everyone and welcome to this week's episode. I'm so excited to share this time with all of you and hope you're having a good week so far I'm sitting here This afternoon in West Texas with the CO chairs of we choose our future Christine foreman and Dave joyner. Thank you so much for being with us today. Thanks Christopher having Venice a you before we get started I want. Ask everyone to help our show out. We're fairly new or still under a year old but I would love free to take a few minutes out of your day. Leave her view you in chains. I cannot thank you enough for doing this. We're so appreciative of the reviews. We've received so far and for Apple Choosing Permian perspective to be on the new and noteworthy list a special. Thank you to one of our listeners. He left this email Robin said Christa. Thank you for sharing the wonderful things here in the Permian and sharing the stories of those who make it such a great place to live. I also love the kind words you share about the community. MVP's west Texas or so giving and it's wonderful to hear how others are giving coming back. Keep up the great work. Well thank you so much robin always nice and kind for people to say Nice words about your show and we really appreciate you without you the listeners we would have no show so. Thank you again Christine and Dave. We're so excited to have you on the show today. We're I'm excited to be here. Some of you have made heard especially if you're here in the Permian we had a recent election. There was a a bond that was up for the vote and Midland. Voters have voted Yes to recently passed five hundred and sixty nine million million dollar school bond. That of which would not have happened. If it wasn't for you too so let's go ahead and start from. Well let's say the beginning of someone has not. I've been here in the permits. We have listeners. All over the world. Tell us how this came to be well so I'll just start with the midland. ISD Looking at the need need for more facilities. We've had a lot of growth in our area recently with Increase in oil production and all of the great things that are going on in oil on gas. And so there's a lot of people coming to midland and over the last few years there's been a lot of capacity needs especially at our secondary school level bowl and so they've been looking at needing to build more facilities in two thousand twelve. There was an elementary school bond. That built three new. Elementary Schools is to address that capacity need. But now it's time to address this secondary facilities needs and so they got a group together called the Facilities Ability Master Planning Committee lots of community members business members in the community. The school district personnel architecture. Experts spurts design experts nonprofits. Just a lot of kind of a broad overview of people in the community that could provide valuable input to what facilities ladies were exactly needed and how to go about meeting the capacity needs so they started meeting almost two years ago working. I didn't realize longer yes so before the bond was put on the ballot they had worked or met on an offer over eighteen months and so they they did a lot of demographic studies and some community surveys and just a lot of research and work that went into what was going to be the best fit for our community and best fit for the growth. That's already here but also future planning for growth up to ten years from now and so the work started back then with that group of people and then eventually a bond was presented to 'em ISD's school board and then approved to be put on the November ballot. Wow and then of course it was on the ballot. And we'll we'll backtrack in a minute and go back to some of the important items that you just mentioned but for those those of you that are maybe not in our area this was passed and then it was re counted and then and then it was not passed asked and then it was passed again. Well actually Dave do you want to explain. Maybe yeah you tell us what happened because it was a little communities to everybody not I mean everybody involved right. It is confusing and the timeline looks like this. On election night we were led to believe based on some results that were published by the elections office. That the school bon had passed. Unofficially then about a week later. There's some provisional ballots mail-in ballots that come in that are counted made by a group of of election officials seven days after the election and when we went in to have those be counted to confirm that we still had the lead we then were are informed or found out that actually we didn't have the lead and we never had the lead we were misled. Hate to keep using that word we were misled to you. Believe that we are in the lead when we were never in the came to find out that we were actually thirty votes behind and then after those extra votes were counted. We'd made up five oats. And so ultimately we were twenty twenty five votes behind and that was an those became the official results. A couple of days later we'll after looking closely at some of the data information provided to us by the Secretary of State's office in the elections office. We realized that there's enough issues here that maybe this is worth going ahead. And and and springing recount which unfortunately in Texas there is no automatic recount that has to be paid for by one of Africa's groups either for or against whomever's trailing likely to pay for the recount. And so we ended up deciding citing to pay for a recount and thank God. We did because after we went and counted every ballot by hand the ultimate result was that the bond passed by eleven eleven votes and so now we went from a head by twelve or thinking. We were head by twelve to behind by twenty-five tobacco head by eleven in those are now the official results that that have been canvassed and or the election is finished and I understand that was a very smooth process. The recount for for all of you involved in really just a it was a pretty smooth experience and with both sides being there correct. Yes so the really great thing I mean I know. There's a lot of controversy about the new election election machines and the way that the elections office has gone about with this new technology. But the really nice thing is there. Were actually paper ballots. It's to count in the recount so that that was a benefit for us to be able to like you said go through very strict thorough by the book process process of counting every single ballot every vote and making sure that there were people in the room from the opposition group and those of us in the advocacy group and then also neutral parties who had had some experience either. They had worked in the elections office before volunteered good with previous elections and then the previous elections administrator was actually the the recount coordinator and she had multiple years of experience experience so it was and then Rick Davis did a great job of just kind of managing the whole process so it was really great to see a democracy get worse yes it was a great experience and I think it was a long tedious process but we all in that room I think regardless of the result and how it ended up up we all in the room felt very confident in what we had done the work that we had done and the end result right and it was what twenty hours I guess you can read now I know. I wish this was televisions. You could see just the the right because and I'm sure it was that way for everyone involved evolved afterwards it was like live breathe and now how do we move forward. Because I think that's what everybody wants to know is what is the next step and and how. How is this going to benefit the kids because there are so many components to the bond that are going to benefit middling kids? Let's talk about that and that information. What the first step is so? Dave won't take away. The bond was plan when I saw it. I get very excited. Christine hit some high points but it definitely definitely the main thing that it does create much-needed capacity for our students and we have thirteen hundred kids graduating. We have twenty two one hundred kids coming into kindergarten and so that is that has been the case for years and our elementary schools are filled with classes around that size. And they're we're going to need somewhere to go in a short few years. My own children are in third and fourth grade. Their classes are are huge. When you look across the entire city midland? They're gonNA have to have somewhere to go. Oh and the current high schools we have do not have space adding a third high school adding modern safe technology security. That kind. The thing is going to really help our kids get a leg up and try to compete with the we are measured as a school district against and competing against kids from other other school districts across the state to try to get into college and get jobs high school and so making sure kids have the same tools that there's other kids in the state have to get educated is is really important to us as a community. Lots of people in this town go to work every day and brand new beautiful technologically advanced office buildings thinks and why not offer that same thing to our children M- instead of sending them to school in sixty and eighty year old buildings that have been kind of duck tape and bailing wag together. You're right because I mean we're all parents and you want the best for your kids Yuzu and I know Christine Your Passion for M. D. is nothing. It's not nothing new. This has been around around for a long time. You're a millon- High Grad and your kids have all gone through public school systems still in the public school system. Why was this so important to you? Why are you passionate about about this and for helping other kids as well? Well I think it starts with my love for our community as a whole I can see see the benefit of public school and what it does for the majority of students in our community and who it serves me. Oh my kids have been going to school school alongside sixty two thousand other students you know so you can see that firsthand that that the school district the Public School district just provides. It's a huge need for our community for educating our future and so a love of community for sure at first but then also just being inside ride those schools campuses where my kids have been and then seeing the needs of campuses where my kids are not attending school and and how broad the need need is an mist and an at first you know when you get involved in something and you start volunteering. Not Everything is all rosy all the time right and and you see the hard stuff and you see the great stuff. And I just wanted to be a proponent of helping provide support to students and support support to the teachers that are doing the work every day. So that's kind of how I got started but also you know my kids won't benefit from this bond because the implementation tation won't happen until after they've all graduated by grandkids exactly. Yeah but also I can see. They're both in secondary school right now and my daughter is in a junior high school class with like forty five. Kids and five of the kids are sitting around the teachers desk. Because because there's not enough room now there's desks to put in there but there's not enough room in that classroom to put any more desks in there. So I mean I see the I've seen the overcrowding firsthand and and then also you know the lack of technology with the previous school bond elementary schools were updated and they had better technology and and they have a lot of things safer secure more and more secure buildings but then when they go from sixth grade up into high school all of that goes away. There's not what the great technology there's not safe buildings and so it's like they're moving backwards instead of forwards when they go through school so it's been time to address our secondary schools schools. I think one of the things that it's been hard for our community do is look forward and look into the future and what does upgrading our secondary schools do. It causes us to add. Maybe add another comprehensive high school and I think that was a big. That was a big issue. I'm glad you brought that up because I was going to ask what what has been one of the toughest issues because it was so split that you feel was maybe maybe they didn't quite understand completely. So is there anything I think he wanted to clear up with some of those issues. Sure yet. I think the biggest opponent groups are can be generally grouped by folks who I didn't want their property taxes to go up even though for the size of this spawned the amount of property tax increases going to be relatively small and it's way overdue it so that was one group think that those those people exist in every community regardless of what type of bonded is there's people that are going to oppose it because it's a it's a potential property tax increase which group people who did not want to see a change in the quote history or legacy of the town going from two high school town two three high school town which is what will be and that will have a necessary change in district blind lines and so some of the traditional neighborhoods that have attended high school a will might attend high school. See Now and that is a scary thought for some people. I think. Really just fear if the unknown and that's understandable but some people use that to say I'm voting against the bond because I want us to be too high school town and I want to keep the district lines where they are Not Realizing that. That's probably wasn't going to happen anyway. The other group is probably I think maybe has the most broad opposition for as far as the the category is just general issues with the school district as a whole either. They didn't feel like the school district doing a good job performing dynamically. They didn't fit. The school district was treating their teachers properly. Or Too much attrition with the teachers or they didn't feel like the school district was treating their money properly. All these different reasons issues they had with the school district. And they were then putting that on the bond and saying well this'll be a referendum against the school district will vote down there bond and that'll let us know we're not okay with their performance formats when at least from Christina Nice perspective and I think a lot of the proponents the bond would they really would be doing is sending a message to the students at like. Hey we're not concerned turned about where you guys and the teachers who work there. We're not concerned about Rigas. Teach and learn every day where just mad at the school district and so rather than tools that might help you meet those goals of better academic performance better teacher retention and recruitment all that kind of thing and better fiscal responsibility with having to spend less money and maintenance and repairs. It's an aging buildings and have more efficient newer facilities. All those reasons in May made it since us. Why the Bonnie to pass and he never really understood why people but wanted us the bonus a referendum against the school district? Those are really the main I think. Groups have folks that were positioned on and I think that's a good point to bring up because trust is a word we see a lot and a part of that comes from what we see that has reported in the news or or just maybe you hear a tiny little something at the coffee shop and then you pass it on. What does it? What's that game operator or word where it just gets? It gets changed as telephone. Excuse you thank you. Thank you telephone the phone the telephone game and so I think with that you know as a society we tend to just rush to judgement and that happens a lot. Why why should people that maybe were on the opposite side? Really try to look at a different perspective. And and give the superintendent in his team in the school board. A chance you you know what they've obviously proven to all of you. What would you say to them? As as a good way to start fresh right now with this bond. I think I would say you know. Just make sure that you know who they are as people but also plug in and work alongside them for a minute or two and you'll see that really the end goal that all of these administrators and school board members. The end goal is to provide quality education for our public school kids. And we're all you know innately good. We don't all do things the same way. And we don't all agree on the best way to get there but don't continue to stand on the sidelines and complain or be negative about something that you're not willing to actually get in and see how it's working and provide constructive feedback if you don't agree with something. Offer a solution or offer a change. Don't just complain about something and not be a part of the solution so I think that's the biggest thing and that's what I learned is if you aren't willing to be a part of the solution Ben in and you really. You shouldn't be a part at all. So how can people get involved. That is that was a perfect lead into my next question is how can people now get into the process in the next next step in. Because I know it's not like overnight. We're just GONNA have brand new facilities and I know that there's a process to anything. How can people get involved? Goodness there her. I'll have to defer to Christine on with their myriad ways. I mean that's how I am sitting in this chair right now. Is I started with a small tutoring program. That a friend of Mine Laurie. BOULDERING DRIK started called. One to one tutoring Laurie. Yes yes she is wonderful person. Won't she started this program to get help for these. After school tutoring for kids who predominantly predominantly at risk of dropping out but is open to anyone and it started as a small small group that met once a week across from midnight midnight kids and now they have them at many different services across the city. That's how I got started and getting involved and eight program exactly and so there's this programs like that there's educate midland. They're smitten. Education should foundation. There's there's a bunch of other ways that people can get plugged in in in a formal way and of course there's mentorship programs things like that people can do as well. And what am I missing. Well I was GONNA say if you're really focused on our wanting to be involved in the bond itself there's GonNa be a community oversight committee which will be involved for awhile or it'll be a place for people to be involved in watching the process or even being a part of the process and providing input and making. I'm sure that the things that this bond was intended to do are being done so for the bond itself. If that's your if that's what you're really interested rested in then let your school board member know that you're interested in being on that committee. There's GonNa be a year of planning before any you know. Ground is broken again. So there's GonNa be a lot of different. I think that's the other thing. Some people were frustrated that this was spun. Didn't have a line by line item of very specific details about the bond but but to me that's of benefit because then there are some things that can be done. You're not you you know nailed down to one or two different things. You can actually have some flexibility as to how the money is spent and what the the things that. The teachers teachers are saying that they need or the campuses. You know they're all different. They all have different needs. So it's GonNa take community and put an input from the staff in the school district so if you're talking about you know being involved that way also we have four school board seats coming up. There's and I think I'm excited. I can't really explain a lot of it but I I know there's going to be some opportunity for training for school. Board potential school board members awesome. Something that I have just learned about and so you know if that's something that you're interested in but you don't feel like you have enough knowledge or have a skill set then there's going to be an opportunity community for you to gain some knowledge about that and what what does a school board member actually do and and no they don't get paid. It is volunteer work. No no they're not you know. Nothing's lining their pockets or anything like that so but that's important to kind of know how that works. No what they can control and know what they can't control. I think that's really important as educating yourself on. How actually the school district works? Because that's something that if it's an unknown you're fearful earful to maybe be a proponent of something if you don't really know much about it but like Dave said tons of other opportunities to get involved in volunteering and getting involved involved in the community but really my biggest piece of wisdom I would say is find where whatever you're passionate about and whatever you're willing to be a positive part of the solution then that's what you should focus on and there's tons of different ways in our community which is great absolutely. Let's talk about some of the big oil and gas companies that that were supporting the bond. You Have Patchy Chevron diamondback pioneer contra just to name a few some big ones. I think we've all heard of. Why do you think this bond was so important for the oil and gas sector? Will I think when I talked to people within those companies that were of a big part of of getting them behind this process they were able to pretty easily make what they referred to as a business case for the bond to the company even though a lot of these companies are big mineral owners and and they pay a lot of property tax sner county and so they actually helped to promote something that would actually caused them to pay more taxes but they also realized that manpower manpower is one of the most scarce resources we have in the Permian Basin right and getting people in here and getting people to commit to move here and stay here a huge part of that or families. She got young. The story of a young engineer who comes in he wants to work and you may be commuting for wants to move his family here but he's not sure about the education system for his kids. He's clearly a sharp are person who has you know is an engineer and he wants the same thing for kids. Well if we can if they can do what they can to raise up the quality education in our town on that person's likely to come. They're likely to stay there likely to continue to contribute in the community and maybe raise the next generation of engineer geologist you remember else might be working in the oil and gas sector for the next generation right and it is it because as as we all know as parents. That's an important question that you always ask. Is You know if I'm moving to this community entity where am I going to put my skills and you want them to have great options and this right there is going to just raise the level of of great options because we do have other options as well but I know both of you as proponents of of public school system. Is You want to give them the best possible public school system that we can get Well I think a part of new set of options and I see it as choice. We want to have a lot of good quality choices choices for our kids. We have some great private schools. We have some good charter schools. Home schooling is an option. We want public school to be equality option as well and unfortunately when people are coming to midland from other parts of the state or even parts of the country. Mist has not always been and known for the quality of education that they you know that they provide and I think we all as parents want to have have a lot of choices. Because again I mean I have friends who have kids in private school and I choose to put my kids in public school but at any given moment if I needed needed to make a different choice for one of my kids than I want that choice to be there and I think that's what that's what this means for the oil and gas companies in our community. He is that this provides another choice to the people that they're trying to recruit to come to midland and get here and stay here and raise their families here and which ultimately awesome it really makes our community better absolutely and that's the thing we all love living here in the Permian. What is it that you love? Most we'll go both the both of you Christine. You go ahead and START I well you know I probably a little bit biased because I was born here and raised here and I did leave for college for a short period of time in swore. Yeah I would never come back but then ended up coming back here and raising a family here I think midland has the greatest sense of small town community. Munity feel with such supportive generous midlanders people that have been mentors of mine and but a place that you can really be plugged in and and and grow and put your roots here so I think it's an easy place to love. The people here are are amazing. But we also you know it's Kinda hard you don't Wanna see your small town grow and expand and and some of us have have seen that and some people see that as a negative thing and I really WanNa look at added as a positive thing I think midland growing we can stay. Keep our same small town veal and we have the same great people while. We're you know. Oh enticing other great people to move here and be a part of the community so definitely the the people in the community feel are my favorite thing about midland. Couldn't agree anymore. I could not go more. Dave what are you about the PROMOS. She kinda stole the one of my brain. which was the people here the community? Here I love I mean I. I was born in Dallas Alice. I went to school in Austin. I lived in Los Angeles. All over. Yes these are not small places and so the the now the fact that it's almost not just congress that expected when I walk in somewhere expected no people I mean rather it's the grocery store or restaurant or anywhere. I expected no people in them to know me. And that is very unique to this down in this community MM unity and I love that about this place. The other part of it too is just the opportunity. I didn't realize how entrepreneurial until I moved here and very quickly after moving here here working for someone else. I wanted to go out on my own. This town is very much a driver for that type of of of attitude in mentality and many friends who you're in the same boat I am in so I'm you know oil and Gas Company of two that I've been running for ten years and I love it and I have all the support. I need from the community from the leaders barons of industry. People who are household names gas industry. I I am a phone call away. Even if I didn't know them I could call them and they'd be like sure. Come on down on cmih. Well when I was in Los Angeles working in the entertainment industry I could not call Steven Spielberg a meeting with him. Great Point but I can do that with with the equivalent of Steven Spielberg in oil and gas like if I wanted to call and talk to a CEO of one of the Permian based oil and gas companies that could be in their office in probably a day's notice and that is what is really cool and unique about this town. And I love that. And that's why I'm here. I'm staying here pouring myself into trying to better this town. Of course anything you WANNA leave it better than you found it. I love that and that is a great analogy because I think unless you live here you don't realize how true that is but just to be able to pick up the phone and call people and they'll answer. Yeah that's how that's how I give you all my podcast. I just call them but it really. It's not like any other town I've ever lived in. I grew up in California and so I understand what you're saying it's a different and there's just a beauty of it and I think y'all both hit it right there then hit the nail on the head it is the people. What have you learned the most through this process in the bond and that you will take with you as you move forward for me? I never saw myself as doing something thing like this but I felt I looking back. I see that the work that I've been doing in public education for a long time in the work that I've done in the community really prepared dared me to be able to step out and do this. But only with the support of so many people the companies that were backing us and and hundreds and hundreds of volunteers that that helped us. David I have been you know the figureheads per se. But but it's not been he and I doing all the work there've been so many integral people behind us and so feeling the support and being able to to step out and do something that I don't think I would have been able to do without without that but then also because there. Was You know an opposition group. It made me grow as a person to to really be able to understand another perspective and not just discount but actually take it in and decide. You know how to be able to articulate agreeing to disagree on something and that grew me as as a person because I've always been a people pleaser and and I I realized that you can still stand firm and believe in something and not agree on it and not worry that I'm not pleasing everyone in the room because I'm doing something thing that I truly believe in and I think it's be most important thing for our community at this point. That was beautiful. Thank you name and thank you for all you do because you said you you never saw yourself there. But I've seen you there for years. I I always think of you as this huge advocate for for kids and families and education and now really. We're just this. We're seeing you there a little bit more because you're on the news more but I've seen you do this and be passionate about for years and it is an unpaid job. You're so so you're just paid in thank you. So thank you for being such a great advocate. Dave how about you. What have you learned the most through this process? Well it's again not surprisingly. There's a lot of overlap. They learned but not to repeat what she said. One of the other things that I've learned that I never expected to learn is a lot of nitty gritty. Do Aunts about how our election system works about how the entire process works about how school bonds work something that we didn't really dive into. But now I have really good understanding any of how our state so Robin Hood are recaptured. Program works that I had a cursory understanding before but now I understand it very well and understand how much the school bond helps us escape some of the penalty that we get people who pay into that so we could probably spend another hour on the finance. Listen glossier you start diving into it like I don't understand all this and then boom immediately glossy so but that that's been probably a lot of of nitty gritty details that I never thought I would understand that. I'm really glad I know now. Just as as a citizen and as a community member this those sorts of discussions come up. I'm now armed with information that it before. I'm glad you did bring that up and without going into robinhood WANNA one. Could you explain that because I actually had. Someone asked me that today. The when I said I was coming to do this. podcast they said well. I don't understand robinhood. What is it and so people think because we are such a an economic rich community that all the money just stays here? uh-huh nope that's right. It's just the the the sixty second version is the property rich district because of all the oil and gas. That's underneath where we're sitting right now. And because of that there's the Robin Hood or recapture program. Means they take money from them. Were rich districts they have to pay it into the state copper and that gets paid out to the smaller districts and so we have to regardless of our performance regardless of how much we need that money to try to fix them of our problems we have to send it it is it is by law. There's no way around it and so whereas we might. We might bring in four hundred million dollars in property taxes this year we have spent seven hundred thirty million dollars to Austin we can. We can build a new high school for one hundred. Seventy one million dollars and so we're we're spent sending almost as much money as it takes to build a highschool to Austin averaged. That's just this year every year. Yes that's just this year and it's gone up every year to as property valuations have gone up and something. That's really great about the bond flipping the way it has back to being passing. I sat in a budgeting workshop for the school district the other day and they were talking about the fact that wow we have to budget nine and a half million dollars dollars out of our maintenance operation budget. While the maintenance operation budget is the part that subject to recapture we only get to keep seventy cents on the dollar out of that the other other thirty cents. That's the one hundred and thirty million talking about that. Goes to Austin and so we have to have if we need to spend basically we need to spend seven million on something we have to actually get ed ten million and then we spent three million and then we get to spend seventy with the school bond. We can do things like this. Nine million is talking about is to repair roofs from hail damage Yeah and we can do that with bond money now. So one hundred percent of the money that comes from Edmund stays here to fix those kind of projects and that gives us a bigger pool of money to pay teachers which is the overwhelming majority of that means percent eighty percent yes. Seventy percent is spent on people. Yes that's right and so that that arms us with it just frees us up significantly so this bond passing. That's one of the biggest pieces the ability to take these things that we have to spend that we have to do just to keep the buildings and things going we get to keep that money here and use bond money for and then let's use their maintenance and operation side to pay teachers and do things that really directly benefit boots on the ground. That was a great explanation. Thank you sure she you learn. You had like a master's degree in six months. Christine is there or anything coming into this interview and I. I didn't even get to ask you all the personal questions I get you home your favorite quote and your podcast. We may need. Have Y'all back on another day but we're running running out of time. But I I wanted to know coming into this interview. Is there anything that maybe we haven't covered yet. That you think is so important that you want the voters in Midland to know about the school golden. How old benefit our community? Gosh that's a big question you know. I think where we sit today. I think the biggest thing to understand is is that you know we may not have won the bond election by a huge number. It was very close and so I think some people are are fearful to move forward and though there are some discrepancies that the county needs to figure out with the election to be you know to figure out for future elections for our community. The bond did pass where it sits right now so I think the most important thing is that we are trying to be sensitive and compassionate in it to the people who are on the losing side of of this work they. It's not a full loss. It's IT'S GONNA be of benefit it's going to be a gain for for our community and so don't be afraid to now. I can't ask you to speed up the process of whatever that looks like for you to feel a loss but when you're ready to move forward because we need to move forward our kids have been. Our teachers have been teaching since November six. They had to go back to to work the next day after the election. Our students are still in those overcrowded classrooms and without safety and technology that is really really important so they're having to move forward and though maybe it's hard for us to move forward we're going to have to move forward and we and I would love for us to move forward together rather than you know being so feeling so divided. I think it's a choice that we have to make moving forward and taking that next step and and you know I'm choosing to move forward and I hope that other people in their own time will make a choice to to move forward for the benefit of our students for the benefit of our teachers for the benefit of our entire community. And knowing you like I do I know it would have if it would afflict. You would have been moving forward in that same direction. Getting everyone together just like you are now would not your answer would have been the exact shame because I know I know your heart and I know that that's where where it is and I think that's important as just to move forward together as a community. I love that Dave Dave. How about you coming into this? Is there anything that maybe we haven't talked about yet. That you think is just so important. You know from from your standpoint that you'd like everyone to know we're really covered it increased in just a little bit of a Christine said I think from here. The most important thing is figuring out how to unify there we have to. This was a divisive issue. People allowed got it to just really mess up friendships and get in and really drive a wedge into our community we gotta come back together and realized that we need to be pulling this this cart in the same direction and so getting together realizing that we've got to move on and and I would be saying the same thing again. The bond head had not passed is. We've got to get together. We've got to figure out what we can do to help students and just as a community as whole we need to heal. We need to have each other's backs there's enough divisiveness and reasons to to be opposed in the world world without adding another one to it. So let's see if we can get together. Let's realize that though the goal of everyone I think for the most part in this whole process. Whichever side you're on is to benefit the kids will then let's actually do it but her head down and do it? And so that's that's that's definitely the thing I want to try to hammer home. The words it's not over it's just beginning ginning right and there's ways to get involved whichever side you're on ways to get involved in. I love that you mentioned those. Let's talk about where people can find you on social media. Yeah so that they can stay connected and get more involved drawn facebook. Yes so so we choose our future and yes for Midland kids were on facebook and instagram will continue tenue updating people as we go forward from there but also the district. Mist has a great facebook platform. They have a great website. Campuses get involved. Evolved plugged in and a campus. I just you know. The Midland Education Foundation has a facebook page and they provide a lot of support to teachers and students in our community. Educate Midland you know. There's so many power to midland designate job. As well how. I'm missing a lot of things but that you know following all of those those platforms but really where you are the most informed and the most involved as when you actually show up in a school. That's a great point. Yes and we put on the show notes A link to the facebook page for. Yes for Middle Kid so that you can see what's happening in and I'm sure you will be tracking the progress of the bond and everything. Yes for the next just however many years ten years twenty years but thank you both for what you've done and for your volunteering your time and being passionate about our community because it it is one thing to talk about it but it is another thing to do something about it and I think that y'all not only talk the talk walk but it is it is important people like you in our community community and said thank you from the heart. I appreciate you both. Thank you for having us in allowing us to come here and talk about it and I feel like I didn't get to ask my favorite quote but I just wanted to do you have have a favorite quote Christine's have I look. I have a quote for every season of my life and it changes but I think the biggest thing is as I really focused on on you know do what you say. You're GonNa do eleven very good. Dave got a favorite quote. I don't have it memorized but it's just goes back to I. It's come up a lot but just it's a it's a Teddy Roosevelt quote just about like if you haven't been in the arena. Haven't Brown talks about that one a lot just being in the arena. Yes yes that's the one about like if you haven't gotten dirty and got beat down and then then you know. Then you're just on the sideline and so I think that applies to this to you gotta get in there and get dirty get a quote good job thirty feet her. We'll put your feet up from a little bit and then it's time to get back to work but thank you so much again and thank you for sharing sharing with us Once again for more information go to facebook Yes for Midland kids our guest today. I cannot thank you enough Christine Foreman and Dave joyner thank you. We choose our future feature. It's now time to announce today's community. MVP and today's community MVP is centers for children and families. Did you know that children. For centers and families families provides free services to military into their families. Centers is also providing free counseling to those affected by the August thirty first tragedy in our area. Help centers help others are awesome community. Share the good word. About what centers does you can volunteer. You can donate your dollars but centers for children. The families exist to improve the quality of life and strengthen the communities we serve through counseling educational and Supportive Services for more information go to centres. TX Dot org today show sponsored by Baker Hughes who recently launched a new re imagined Baker Hughes Brand as energy technology company. They strive to make energy safer safer cleaner and more efficient for people and the planet. Well that's it that's a wrap on today's show. Thank you so much for sharing your time with us. We appreciate you as always and this concludes. It's Permian perspective. The story behind the oil and gas leaders in the Permian basin another special thanks to Baker Hughes our guest today Christine Foreman and Dave joyner and for all of you for listening we appreciate you. Remember my mottos dream big and believe in yourself and never give up you make it a great day. Hey Guys Alex here with the events on December we'll be having to OBGYN happy hours to kick off. Twenty twenty one will be January in Houston. We have not announced a date yet. But we'll get back with you guys soon on on that and we will be having our first happy hour in Pittsburgh in February twenty twenty also with the date coming soon so stay tuned on those the upcoming events include the bells of Houston a masquerade. UNMASKING THE STIGMA OF PTSD. This will take place on December fifth in Houston in Latin America. Oil and gas summit is December fifth and six in Uruguay the API Energy Houston chapter. General Meeting will be held on December eleventh. Two Thousand Nineteen in Houston. The wildcatters ball is taking place on February seventh twenty twenty in Houston and lastly the IP A leaders industry luncheon will be held on December eleven in Houston. That's all events for this month guys. Be sure to tune in at the beginning of January. Great to see what's happening Ben tune in next week for another episode of Permian Perspective it production of the oil and gas global network learn more at W._W._w.. Dot G G N DOT COM.
First Friday Q&A on Oil and Gas This Week- OGTW194
"You're listening to the oil and gas this week podcast with Martin liqueur and decor Vizo for physio improve quickly. Want to keep their finger on the pulse of what's going on guys. Welcome back to another episode of Oil and gas this week. Podcast listening to episode one ninety four. What's up market Super Bowl Sunday? It's super bowl Sunday. Jake added do something that broke. My heart was that I had to get rid of my G. Thirty seven really. What happened loss of transmission is about five grand to repair? It had one hundred fifty thousand miles on it and it just didn't make fiscal since so. I didn't go buy a new car about two new cars early. Did so about an Infiniti q fifty which is a small SUV. Because when you want for work then I bought an Infiniti q sixty sport. Which is the newer version of my old car? And then Jake. I don't have the car yet so my garage right now. 'cause I ordered sues up the car I have new down pipes a bigger inner cooler new air intakes performance flash new exhaust. So I'M GONNA go from four hundred horses to five hundred horses bullets stuff on some excited. Does it sounds like he's not a bad deal for you. Then well I always go buy new cars anyway. I just Jacob Audience. If you don't do this chicken I love cars and when your car person you really form an emotional attachment to the car which you really do. If you're not a core person sounds bizarre but if you car person till it gets off felt bad you know when I went to trade it in they took it as a trade in my felt like you know my clothing was passed away and they wanNA start cleaning out the car. Filipo stripping that person's jewelry all of them and just leave it with the budget strangers. It's what I imagined. Pet people feel like because I'm not really like have pets but I'm like a super over the top head person so imagine just taking your pet somewhere and just trading it in for a new pet. Yeah it's the same feeling you know but I was very lucky back to dealership. Take care some other stuff and. I saw the person that bought the car I got to talk to them and they bought it and they will put bigger do with themselves use transmission back in it so you know now my car is can make someone else happy which is cool. That's awesome an guys relations. So let's see what happens but it was not a fun thing to have to do and and the funny thing is. I was all cocky and told the salesman. I said that you've never sold two cars at Saint Time. Because I've done for like damn. What if the record and speak at a record we got some reviews? This is quick to the point by Kale. Jd from Malaysia cooled listeners. Malaysia big shadow no fluff informed opinion. Good work jets love it and then Bristol Dan from the UK. Love this podcast working on gas in North Sea and love listening to this podcast from across the pond. Keep them coming Bristol. Dan L. We gotta third shoot just what I need from. Am One five four seven for the United States this podcast. His formative across only gas. Not just a subset. I appreciate that Short enough to listen to on my commute and get an overview of the happens when I want a deep dive. I've been can do the research. Keep up the great work and do not shy away from politically driven misinformation being fed to the public on this lifeline. Modern Life I tell you what a one five four seven Jacob Ruth you hundred percent we will keep it up and jake this the first Friday. Qa So let's get in the questions you guys know what that means you guys writing questions. We answer them so first question. We're just GONNA dive in. Saudi guys may not know this but we don't take every question that's written in. We'd a lot of crazy off the wall stuff. We just had to leave one in in. Maybe we can help. It's a glimpse into our daily life. We had a write in from an Ed Eretz. I'm trying to look classmate named Michael Market. We are having a class reunion this February twenty first twenty second and twenty third if you know of his contact information police force this to him even if he cannot come with like the update. Contact Information Antelope High School. Class of nineteen sixty six. So Jake. We're now the loss classmate finding podcast. But I'm telling you if he might knows who Michael Market is and he'd graduate nine hundred. Sixty six highschool seriously sent him away so we connected with Edward because if we can help somebody find a law classmate. Why would we not do it? Some real questions. So we have a question from tyler engineer. He writes hey guys a work a lot around natural gas flaring and wonder if any individuals or companies you can connect me with for crypto mining to use our excess gas as a profit center or is it something no one else is doing. I think there's an opportunity and natural gas flaring space for cryptocurrency mining. There are a few companies are actually doing it. Crew so energy systems I believe is one of them which is backed by the wink of twins. You've got petroleum. I believe is the name of the company that's also doing the same thing and then there's another company. I can't remember their name but actually talked about five or six months back and they're also in the space they're funded half the teams from Royal Hatha teams from Silicon Valley Gas. So there are people that are actually doing it. There's a lot of questions around the viability of doing this. And there's also potential implications like in the event that you were to flare this off. Do you owe anything to mineral owners such and such a lot of accounting kind of questions around that but yes there are companies. That are currently doing this. Hey Tyler reach out to surgery with easy. Blockchain interviewed the Tech podcast. This is exactly what they're doing. They have portable mining equipment that runs off flare gas. Use My name reach out to Sir J at easy blockchain and is have a conversation with Jake is exciting that this is potential other revenue stream for industry. We haven't worked out all the wrinkles yet but I just think it's awesome. It's awesome considering a lot of places. Its native differential in gas. It's becoming more of a cost than it should be. If you can put to good use and turn it into some meaningful revenue. I think that's exciting up next. We got a question from IMF Ynez. Vp OF BUSINESS development in world. Service Company your as you ask for feedback about your political views. I am in my thirties. I have fifteen years of experience in the industry. I'm an American living in Norway. Consider myself a liberal. I listen to your podcast and always take it with a pinch of salt. I want to hear the news and trends and I think listening to. You is worth my time for this purpose. However I also think you're too political the amount times you ask you. What a vote. A specific ways. Not Necessarily Times you put down. People groups and government with views is counterproductive. If we want young people to work in our industry we need to approach the conversation from a consolidation perspective rather than polarizing landscape. Young people can be Democrats and environmentally friendly and work in the world. Yes industry seems. You're constantly against these types of people. Jake have we ever asked anybody to vote? Actually we have when there's anti only guys state legislation like in Colorado or California. We have asked people to devote the right. So yeah I'll take that but the other thing is you may be surprised of Matthews is. I'm not like the staunch conservative. That doesn't like Democrats a moderate a lot of the liberal viewpoints specially socially. I fully support. Believe it I just think only gas industries is taking it on the Chin and there are people out there that don't understand our industry that are Louis our politics. It's hurting all of us including you. If you work in industry so I do really honestly sincerely appreciate the feedback. I WanNa know of people that were to political on the show because if you listened to while you made the statement that I will get much more personally and professionally involved politics. 'cause I just have to to fight for my industry but I do really appreciate you reaching out and I love Norway. By the way it's funny once you get to know me a mesh that a very political person. I'm not a Republican. I'm not Democrat. If anything I would ally myself with more libertarian. But even then I'm not one hundred percent in that camp I think if you're one hundred seventy camp. I just think it's realistic. I think we all have different views on different things different topics but one thing that I am definitely pro is our industry. We love our industry. We know the difference that it makes them the world the abundance of hydrocarbons especially the United States provides us with an amazing life. That you know. It's very easy to see if you will country. That doesn't have that the difference that it makes in the quality of life and so I will go to the Meserve to protect. Our industry is to educate people in our industry but in terms of I'm definitely not pro trump anti-trump. I'm not like I said I'm not a Republican or Democratic so yeah unapologetically one hundred percent. Four our industry and so. We'll continue to do that for Tom. But thank you for your feedback ruler. Do appreciate it. We will try to be a little bit less political moving forward. Even though I'm not be all right affects question for Mary shirts. Hi thank you for information. You were providing. My question is regarding the future of the industry. My daughter is going after degree engineering in Texas. Would you recommend such a Korean willingness to your children? Thanks so much. We'll take it. That's not even a hardwood because by the time my son's fourteen by my son gets out of school is a huge short ship. Petroleum Engineers. Make Big Bucks. Yes that's one way to look at it. I think if I was to give advice my son's only two years old so it's really really speculative to see what the world's going to be like whenever he's old enough to actually work. Let's seize in his mid twenties but I'm seeing a lot of the writing on the walls that traditional reservoir engineering is becoming and this is not my words. This is in the words reservoir engineers that I worked with them. No is that it's almost becoming obsolete due to the democratization of data in so my suggestion would be and I was actually talking to an engineer day would be. I know a lot. I've said this so they can last episode. We Won't before I knew. A lot of mechanical engineers that are software engineers and a lot of mechanical engineers their petroleum engineers and a lot of mechanical engineers. That have done a ton of chemical engineering and so it's such and so forth and so I feel like it's a really really safe bet with an emphasis on engineering in the event that something catastrophic does happen. You know in the event that you're not an entrepreneur in you're at the mercy of your employer mercy of cyclical business. It is good like we've been talking about to kind of just head yourself just provides much more value to the market as possible so thing. That's one way to do it. Also I think everybody needs to be schooled up on data science especially in this industry. Most companies are becoming data companies first and foremost and whatever their actual businesses is actually becoming secondary. So if you understand that you can position yourself in a way that yet come into the Willie yesterday and I'm not saying don't come to the oil industry. I'm just saying you know. In current times when we're seeing a major restructuring especially shale though are going to be a significant amount of layoffs just. Because you've been hearing degree. Does it mean that you're safe. K? So let's I never want to convey that anybody and that's that's true really of any degree. You did. Bring up a good point jake in that. The actual degree and petroleum engineers very niche tisby uttering specific. That's who tends to hire telomere so you do deal with the boom and bust cycles in like Jake said you need. Some other jobs sets there as well. Mechanical engineering our interstate. Jake all over place. You're right I mean most subsea engineers start off as mechanical engineers aware. Just like you. I've seen a whole bunch of people that write in code. That are mechanical engineer. So I don't know if you can get a minor petroleum engineer with a major in mechanical but the Jake's advices very well spoken and if your daughter does decide to become a petroleum engineer she does need to pick up some big data skill sets absolutely already up to the next one. We have a question from Jonathan Landman. He writes hey mark and jake law the podcast. I haven't Mrs Show since funding and a couple years back I suffer. That's amazing. Thank you for your support. That's really really awesome to hear going on however I am wondering if you have any recommendations for a daily oil and gas podcastone energy podcast in general oil and gas and related issues is not only my job but also my hobby and I love learning about it and staying up to date with daily new surrounding the industry. I found that podcasts are such an easy way to do so with my commutes in the work that I do. I usually listen to three to four hours worth of shows a day. I'm not able to find anything to fill this one need. Have you ever thought about having a daily show on the network recommend any other shows? Thanks to keep the great work suggest. Talk about you in college you. Yes so. There are other podcasts. In the space. If you don't know this I also co host oiling. Gas Starters podcast where we talk about the stories of founders in the space not just tech companies that's common conception but also emp founders mineral fines midstream companies water companies. Things of such as much as we would love to do a daily podcast and. I'm sure I'm sure mark would love to do that is a ton of work. And if you don't know like I also have business to run the side as well and that's you know a majority of how I make my living and so I think it's a great concept. I think a lot. He would actually love it. But we're not to the point yet where we're like the Bloomberg of oil and gas to where we have just endless amounts of funding and we can hire all these people to do daily shows and stuff like that but I would love to do that. Think it's phenomenal idea. I just think it's GonNa take a little longer to get there. Yeah so Jonathan. I'd never really thought about it because if you listen to the show for any length of time Jake lucky to get what how to week. You and it's just because we're so busy and when I read you know that's a darn good idea. So it's in. I thought book for Twenty Twenty. Don't know if we'll be able to do anything with other thing. Jonathan August global networks. This group we have eight oil gas podcasts. As of today and we're watching three more the next couple of months that we're trying to fill his needs with the daily show is that's a huge job and work and we're just not there yet but I do have the idea save because if we manage to get there I would love to. Do it absolutely stinks for Jonathan Up. Nice adequate from Jane's. He's a front consultant with longer. Reach wells better. Directional control and ever improving technology. Is Rick Count really a good indicator? Besides as fracturing wells not drilling holes that counselor should be watching the FRAC pump count instead? Please explain darn good point. Because he's right years ago. That recount was a huge indicator but also depends a what he's trying to track. I don't know if he's trying to track drilling production our completion. You know if you're trying to drag drilling and of course it recounts probably really important if you're trying to track production that's a harder one to do if you try to track completion. I think the FRAC pump count actually would probably be a very good indicator of that. Yeah I agree I think the recount only gives you a little bit of a snapshot of the actual entire picture so maybe we were thinking maybe includes Brotherston that what do you think mark. But I don't know if there's enough out there that has the resources to track FRAC PACs actually audience if you know of any place where that's being tracked online especially let shaken. I know because I would love to talk about that. When we do the recount we all do the Frat pack count so if if there's a resource out there let us know all right next question from Mike. It's guys I talk about the industry of hydrocarbons petrochemicals how they're something most people don't WanNa talk about when the thinking about oil and gas industry motion sink burning gas release going to be huge for the industry. How can invest in the growth and success of these things specifically and not just big oil company stock? If you had the same advice for methane hydrates. They'll be very welcome to jake. Is it me or is Michael Confronts to give him investment vice a sound a lot like investment advice or if we should start a show you mortgage aches unofficial investment? Advice can be like Madmen Uwe. Jim Cramer that would actually be fun to do. So a couple things like this off top of my head. Check out light as visible light L. I. T. Polymers. It's some stuff. That's come out of the R D labs I think of MIT. Let's go into commercial production. It's literally imagined plastics. That emit light like an led when you apply power to that's GONNA be revolutionary and. There's no big company jumped that yet but I'm telling you I think in the future like like I'm GonNa Invest Money this personally. The other thing with the methane hydrate. That's a really good question. There's two places I would look there one is. I'd go check out. Japan Japan is working with a think. Maybe you're on think it's Konica Phillips on see if they can make this commercially viable and if you don't know what methane hydrates basically it's ice that Burns so to the bottom of the ocean floor just sits on the bottom of the ocean floor in deep water and it's literally crystal methane. That is the pressure the pressure so high. The temperatures are low that Lee forms methane ice. There's more hydrocarbons in methane. Eisner is actually an all-round force. Who's got to figure out if we can tap into it commercially. That'd be the first place I would look at than other place. Go CHECK OUT. It's starter. Start Your hyphen up or start up. Something like that DOT COM. They actually looking for investors for a project to convert methane. Hydrate took commercial fuel supply. There's two placing a look for that. There's a place you can look for the best investment than told you were to go look for on the petrochemical size at that. Light Polymer type of stuff. Anything you throw in your jake now has been. We try not to give stock investment advice up next question from Adrian. A sales rep and logistic. Supervisor I've been listening to podcast recently. Great job so my sales rep for a company that provides equipment too many in hydraulic fracturing out of the Permian Basin. I'm near the end of my twenties and I've gained interest in the corporate side of the industry. I've decided to return to school. Northern transition to a more corporate environment in the advice on this transition. How can I familiarize myself with different career choices? Mark you probably better suited to kind of tackle this one than I am. I'm not quite sure. What Adrian's Afghan so the corporate side of what she's doing now so instead of being in the field as a sales person on the corporate side of hydraulic fracking or just the corporate side of the major super majors. I I guess I could tackle both. I think I actually come from a sales background. And I actually transitioned into the corporate environment and I wish I didn't. When I was early in my career I would have stayed a frontline sales person. Because you control your destiny and you know if your top performer. You get what you want. You get paid very well. It's all under your control. Where's she ended a corporate world? You're relying on a whole bunch of other people didn't like that transition. There's my two cents of that if you're staying with your company if you go back to school and want to get like on the corporate side of the Super Major Service companies and all that. There's a bunch of different places you can go. We keep talking about all the data science type stuff. But another thing is if you have an inkling for accounting or an inkling for legal. That's something that is always in big demand in the oil and gas industry save project management. You know you can become a project manager and get on the corporate side and mega-projects now the interesting thing Adrian if you really want to climb the ladder and getting that C. Suite as far as I could think every executive that I personally do in oil and gas industry has done a time in sales every single one up because when you get to that level that ability to communicate to people convince them to agree with you and work with you which is what sales is comes in. Great play when you're an executive to run a company so I would be too worried about what you actually get your degree and get something that fits your personality and then when your final question to ask the different career choices. Good with a job. Boards like rig zone has won a little antiquated as far as the way it looks but people still posted a lot of jobs out there. Also go to Lincoln and see what companies are looking for. That should help you. You narrow down what you WANNA do with the rest of your career absolutely agree hundred percent up next question from Stephen Hughes. Vp special projects. You're as hey mark and jake listening for several years and led the podcast once again. Thank you for listening to the show for that long. It's crazy to think that we've been doing this since two thousand sixteen. You've been doing it longer. And people have been listening for years on end so I don't know what's crazier that which we'd love. Y'All are existing audience or our new audience that go back and bench. Listen to us over and over again. I mean Jake I love. You could listen to your voice. One hundred sixty right there with you. So going on one topic comes up frequently as they continue need for fossil fuels and my question is along those lines according to page eighty three. Ps Two thousand eighteen energy outlook and several other market studies the current global consumption of liquids by sources of Enduring Growth. Petrochemicals FEEDSTOCKS AVIATION. Marine fuel is about twenty million barrels per day approximately twenty percent of total consumption. The rest goes towards sources. That are more at risk. If there's a major technological jumping Green Energy in Battery Technology Aka Road Transport power generation so we thought even if we see a robust growth and petrochemicals marine aviation fuel over the next few decades. Those are unlikely to consume more than thirty five million barrels a day of liquids. My here's my question for you. If there's a huge and logical breakthrough that reduced demand for liquids in Road Transportation Fuel and power industry such that. The global demand dropped from one hundred million barrels. A day to seventy million barrels a day twenty forty. Where do you think seventy million barrels a day would come from and how it a change the structure of the oil and gas industry? This is a great frigging question. Stephen I mean this is a really strategic thinker. Type A question so I'm actually just go along with your assumption and if something major happened and that something major would probably be a breakthrough in storage technology and also cost because right now. Electric vehicles really are only for the wealthy. But if let's say that happens where that seventy million barrels bay come from so I will tell you right now that seven million barrels which would not be used for transportation which we use for petrochemicals. That sort of stuff needs to be heavy complex cruise. Because that's where you get the best yield and so I think about that way that so may barrels probably would still come from Canada than his Walea and the Middle East which is where we get those heavy complex crudes if you continue. Follow that chain of thought but if that happened then things like OPEC would literally disappear because they lost all this demand for their crude because transportation demand has gone away and so if that happened in. I think you'd see huge political instability in the Middle East and so I think it may be crazy enough that some big country like China or Russia may actually prop up. We haven't done it ourselves yet prop up Venezuela just so we can get this heavy complex crews out of Venezuela. I think the demand from Canada Ruby. Such the politics up there were changed so that they could also get their heavy complex cruise to market so in some ways. I think it would be a big benefit to Canada Venezuela. If if I think it out longer overturn wise because I think OPEC would fall apart. And then you have the individual Middle Eastern nations competing and I guarantee that would start war. And so what's all that shook out? I still think the chance to become from Canada. Venezuela of what do you think Jake as much as I would love to see a major step change in the -nology four especially battery technology for example? We're still so far away. I would love to see it. I think that opens up so many new possibilities a huge technology guy. You know I love to see the world change and I think that would open up. You know I love actually believe it or not. Even as a car guy knows sounds kind blasphemous. But some of the things that they've been able to do with electric cars on the Sporty side of things is absolutely remarkable. Porsche just released their new. Take on a Turbo S. Which is actually faster than Bugatti. So zero to sixty two point four seconds sailing eleven hundred horsepower. And it's in a car that actually handles well is super light in charges to eighty percent within twenty minutes so we're making advances in that technology but. I think we are still so far away from where we need to be. Battery storage is extremely expensive at this point. Hydrocarbons are much more efficient compared to most renewables. It's so much cheaper and especially with seems like commodity prices are becoming even more precision. The natural gas side to harder and harder case for some of the renewables. But we'll see plays out. I think the auto industry is really leading the charge especially when it comes to some of the battery technology but I unfortunately I just think we're so so far away yet. Lotta people know this but Jake you've ever with the very first. Tesla was the Little Rhode Shirt. It was a roaster and it was fast as all get out right that those very first Tesla and when I say storage technology people think batteries. But there's other ways to store energy but Steve missed a really good question of still going on the back of my head because you know if that Wa- Samore could happen with de-stabilize OPEC it would just interesting if it happens. I don't want to see it happen. Quickly hope it happens slowly so that we can adjust but just great questions to our right. We have a question from Brad. Who's a utilities and Power Generation Product Lining executive? Is Exxon. Know something about biofuel its peers. Don't appreciate your insight. On algae fuel mark is usually have some reliable economic stats hilliard. Excellence looking at a bunch of bio fuels but to understand this question better. You need to understand how hydrocarbons originally made so hydrocarbons were formed in a period of time. Actually still being formed now. They're always be informed but they were formed a period of time history where the earth was much warmer than it is now. The oceans were much warmer. And so you had a lot of plankton zooplankton in that plaintiff love. It was algae that grew. And you may not know this but basically plankton endlessly. He's algae which is part of plinking my know this so hate mail so let's take algae so it wouldn't algae grow into converts carbon dioxide with using sunlight to sugar in that sugar gets converts to oils right in those oils when that algae died and sank to the ocean floor. It saint to the floor in an area where there was little or no oxygen. Didn't decompose so those oil stayed there. And then if you put a layer of sediment this is GonNa Gulf of Mexico right now. Mississippi's dumber layer seven over non decomposing. Algae then the earth starts compression and heating that over millions of years and it converts those oils that were started off as sunlight carbon dioxide into hydrocarbons. Exxon Mobil's doing in it's a group effort. I can't remember the other companies but accent has been working with genetic company Think the Colorado school mine a couple other people and they've genetically engineered this algae knowledge Bruce more oil than normal but to grow in brackish water. So Exxon Mobil's doing is short-circuiting the natural way to make hydrocarbons manmade and they're very far ahead of us so they're gonna be able to make algae and fuel smells you think of diesel ethanol gasoline any those type of things that could make from. Algebra make from algae that grows in brackish water. Now Jake what is produced water when you drill a well usually. It's brackish right. So now Exxon's Nali create fuels but creating fuels with an algae that can grow places that other algae can't grow and this is actually a very strong biofuel. The problem with biofuels is it takes a lot of land and takes a lot of water remember the exact stats but if you get a thousand feet to us from most biofuels it's about fifteen hundred gallons of water it takes to get the number to use it to us from oil and gas is three gallons of water in this is fresh the cooling. Exxon's desert able to do this without using fresh water. So this is a biofuel actually potentially makes financial sense. Exxon's out there doing about five thousand barrels of algae bio fuels a day in their experimental plant by two thousand twenty five went to be up to ten thousand and this is a cool technology because not only does it allow you to make biofuels that make economic sense. Most biofuels don't but it also is allowed them to experiment. So this is the beginning of their biofuel strategy and trust me next on mobile does stuff. It's always the Lauren. Play twenty or thirty years from now. This thing should be extremely commercially viable and then like I said. Exxon has a whole bunch of biofuel research Looking at like a cellulose and using feedstock for other things that you make plastic stuff but the one that's most likely commercially successful is as algae program to do which I think is just fascinating and I love the fact. That's mobile doing it yet or know anything about that. So our last question for the days of question from William WHO's at Operation Coordinator your rights as always great show. Keep the good work guys on episode one ninety two Jason Comments expressing his thoughts about domestic crude producers should form a cartel and artificially restrict production and therefore inflate the price of crude. I understand his position as it would benefit producers like him however. I'm curious why Jake thinks. The market for crude is different than the market for either poetry commodity. For example. You'd never hear anyone say that would need a limited supply tennis shoes on the market. Protect the prophets of tennis shoe producers. Instead we just enjoy the cheaper shoes with Yasser preneurs in the shoe business figured how to compete operator. Prophet additionality here. Jas comments on government quotas or profession and how that factors in Afghanistan at the Road Commission parade script production in Texas and I believe the Oklahoma Corporation Commission does. The same could be wrong. Of course we're all familiar with OPEC and their attempts to control supply in control price. Globally wouldn't have remarkably best. We really need to government quotas or private cartels define the optimal supply of crude. Great Question. Obviously as you mentioned up until three weeks ago I was incentivized to have crude natural gas. Be As high as possible because we benefited from it from our wells producing in Oklahoma. We have since sold those and I am temporarily out of the operating game but my comments still stand. Is it a good thing as a bad thing? I don't necessarily know. It's kind of speculative at this point. Let's just played devil's advocate and say that OPEC was to completely just go away and Saudi Arabia and every other company was just completely the floodgates. What's going to happen? We're GONNA see probably less than twenty dollars. Barrel crude natural gas is already as low as it's been probably I think it's ten years right mark. It's extremely low. Yeah extremely low. A. Lot of Africa's producers are probably going to go bankrupt soon so what happens then great for consumers terrible for anybody. Who's trying to push the renewable agenda because now hydrocarbons have become so so so cheap that those are just so far away so in the event that those need to become viable. We're GONNA need to see more subsidies from the government just to kind of offset. The cost associated with those a lot of producers would file bankruptcy which already seeing now not always a bad thing. With a lot of major restructuring we see a significant amount of layoffs. Yes so what would actually happen. I'm not I'm not really sure. I know that would be absolutely devastating for industry just like it has been with every other downturn special. We saw you know we'll go down to was a twenty six dollars a barrel. I think in fifteen in having lived through that that was pretty bad so obviously selfish purposes too. I think there's a there's a happy medium you know. I think we're in between anywhere from fifty five to sixty five dollars a barrel kind of benefits. Everybody benefits the consumer benefits the producers. I feel like it's just a happy medium. I think what we're seeing is that we're just absolutely drilling we've made so many. Logical advances were punching holes in the ground that were absolutely just drilling. Wti into the ground. So it would be an interesting exercise to see you know everybody was to control the price a little bit a little bit more per barrel and could everybody make a little bit more money to the industry thrive a little bit more obviously a lot of other issues that are going on one of the things that are currently a play especially between shale producers and Wall Street and the capital structure of some of these companies. Those things don't to change but if you look at other things not necessarily commodities but you look at other things as I mentioned earlier in the episode of Libertarian. All about less government intervention but there are certain things where the government I believe is a great force. It needs to kind of come in and kind of place regulations on things and one of those things being. I love the fact that there was a new bill that was passed that allowed a remanded of transparency on the medical side four medical expenses between insurance companies healthcare providers that benefits the in consumer you know and I think that currently were. We're also seeing that. We need a lot. More regulation that space because healthcare cost or apple -solutely astronomical. Especially if you're not to producer it comes out of your pocket regardless either way you know. I pay more for healthcare costs than I do from my home. It's absolutely astonishing. You know and then same thing with college tuition. We've seen college tuition inflation over the last. What twenty or thirty years by? I don't even know the stab but I know it's probably like ten x twenty x whatever. I've seen a lot of graphics on that where it's just it's insane. You know student debt in the United States is like at one point two trillion dollars and a lot of people are not paying down the debt whatsoever and so should we have the government step in and say this is absolutely ridiculous. You know most people make it out to that. You need some kind of degree to succeed in the United States. Today I don't necessarily agree with that but that is the common theory there. And should you have to pay you know? Should you have to rack up half a million dollars in debt just to go out and get a job you know? Schools are businesses the are for profit. Most of them are for profit. Should they be able to just rake up tuition? You know a thousand acts and force you to pay you know if everybody's in cahoots together. I think it's a flaw in capitalism. You know and I think the same thing could be said about potentially about oil. Maybe I'm off base. Maybe I'm not. I don't know what William definitely pushed Jake's but on that one ask a question getting back to civilised really truly think about there really is no free market. I do think we need be as close to free market as possible in the oil gas industry. It's one of the chew few global commodities. One of the problems is not. Everybody Plays Fair. You know you have you have Russia you have China so we need our government to step in and try to level the playing field. That's what we do with. Import tariffs export. Terraced stuff is really just trying to level the playing field so I do agree that the free market would be best but the reality is there really is no free market so we need a little bit of government help. They're definitely don't believe private cartels because then it's all about the private till but just you know what's really good question I take. Our audience is getting really good at asking questions that make us think these instant request. Don't take it that I was offended by any means or that. That was a bad question. Great Question I think. It's purely speculative as to which direction that we go one way or another but in summary I think fifty five to sixty five dollar. Oil is great. Think anything less than I think. It's detrimental to a lot of people anything higher than that. I think can also affect the other thing I actually really like is the. Us is the only country that I know of. Were we can own middle rights. Were the people who own the land owned. Surface rights can own the mineral rights. I think that's another piece of the puzzle that people don't talk about a bunch so you go to any other country government make some money from hydrocarbons out the people whose land the drill wells on. I think our way and whoever wrote earlier that I talk bad about other countries. I'm not talking bad about other countries or other groups are the People's I'm saying in the US. It's done this way. I don't think it's the best way so anyway. Let's go to giveaway all right so we're still doing to give away so everybody seems to go to the Lincoln. The shouts Click Linke Gwen a t shirt with the. It's got a patent of a pump check on that. Each one of these a serialized. We will be doing some giveaways here soon. We'll be announcing your number and you will win a new Ferrari or something else or something. How something else that? We decided to kind of auctioned off. So it's going to lake in the description below and enter for your chance to shirt jake. Did we talk with this? Elect show that. I felt that somebody was trying to reverse engineer. These shirts talking we did. We did okay. I just think it's a conflict. Somebody wants to persons new shirts. Don't do it. Don't let me catch doing it. The only way you can get one of these wins to go in there and if you don't win just inter every week increase your odds. Speaking of how important the weekly count is not. What's the weekly recount? Jake eight hundred twenty so last week it was eight seventeen. I believe so. We're pretty much less than one percent. Change Week over week. That's cool good number and then you've heard US talk about the street team. You want to join go to facebook. Just look for the street team. Speaking of shirts were finally getting. Some shirts made for our street teams. So if your member street team I know you've been hearing me. Say it for probably a year. They're coming out. Catherine's actually doing the designed with graphic artists. Hopefully have this out in the next thirty days and our street teams just our all volunteer group helps us. Do Cool Stuff. Socially our social media. And if we're somewhere in your geographic area get to come to our live events for free and if we're going to some conference in your area could come join us as part of pressing. And then she wanted about all guests events that are going on because we got nape right around the Corner Sarah Week right around the corner. All that stuff's in our monthly newsletter. Actually my monthly newsletter. But I'll share for free. Go Link could sign up there and then went Jacob Ida come speak at your organization your club. You're actually talking about cars. Your Car Club would ever let us the other thing we do. That's really poppers. We bring this. Podcast live to your vet so not only. Do you get to see jake and I do this in person which is way. Funnier than listen to us. But then your company and your group gets exposed on the number one podcast in the world in August. She said You WANNA learn more about that. Reach out to solicit and will be happy to share details. This is the first Friday Q. And a. This is what we do every week every month absorb just since questions remember. The goal is not to. Stop Jake and I. It's to ask thoughtful question. Help educate the audience and then go join Arlington Group. I don't even know what we're up to but it's huge just got leaked in look for oh g. Gen. It's been a busy day and we got a lot of stuff to get done and it's super bowl. Sunday says ready got here. Jake do remember folks do great work pay it forward and we will see next time and here are the vents on debt. Hey Everybody Alex era the events on deck. For February we do not have any O. G. G. UNHAPPY HOURS IN FEBRUARY. But we do have an exciting event coming up in Pittsburgh. This'll be our first happy hour there in March and it will be taking place on March twenty fifth. The location is to be determined so be sure to follow us on facebook linked in or twitter to keep up with Those announcements and to purchase tickets the Houston. Api luncheon will be on February eleventh this will be networking about with top oil and gas business and they promise that you'll be learning something really cool so check it out and sign up for that event. The wildcatters ball will be on February seventh in Houston. This ball is the primary oil and natural gas industry fundraising event for the IP A Educational Foundation proceeds go toward funding the foundations energy education program the API Energy Houston three gun. Chapter will be on March Twentieth. In Houston's this event fills up really quickly so make sure to get your team. Enter the best way to do so is to fax or E. Mail the form with at least a captain's name as soon as possible if you need to wait for a check. Just notat that on the bottom of the form and send it on we will be sending Mark Liqueur and Patrick pistre to Scotland to Aberdeen Scotland. On march fifth. Four Doku Kahn. Which is the first event of its kind. It is a conference for creating high impact sales. In and Markham. Patrick will be hosting a panel and recording alive podcast. If you're interested in attending this event visit Doku Rubicon Dot Dokru Dot Com and that is D. O. Q. U. A. R. U. C. N. That's offered this month. Thanks for tuning in and be sure to check again next month for more on. Obgyn events next week for another informative and entertaining episode of Oil and gas this week. Podcast a product of the oil and gas global network learn more at MORLIN GAS DOT com.