2 Burst results for "Baker Hughes News"
"baker hughes news" Discussed on Permian Perspective Podcast
"Like premium perspective. It's a book or periodical. No for sure remain of you can go on the Internet. is He different stories. That contradict each other right. And so it's it's you have to kind of get get yourself yourself through all the different formation but for us talking about coming out here the fact is you really get the real story when you talk to customers right. So that's that's the real perspective of everybody on the ground. What their needs are what they deal with? Everyday their challenges you know and get a feel for where it's going. It's moving for me as a technical person in my company Anthony. I think that there's a range of magazines that I read. I mean I think that there's probably forty or fifty of them sitting on my desk right now. But Journal Petroleum Technology -nology oilfield technology or to the big ones. I Read Chemical Engineering magazine. I read American. Water Works Association Journal and a also ended up spending a lot of time. Online looking at stuff like salination magazine to see where they technologies are headed. I had a feeling you read a lot what it was like. You have big words that I really need to ask you off the podcast. What that meant that? The I think that's fantastic because we should always be learning and growing in our industry and and and just trying to be the best that we can be. Let's talk a little bit about water. Standard how I know that I'm on your website and it says we maximize your oil recovery. Yeah no that's important to you. Do you have any final words on. Maybe something that we haven't talked about that you think is important that our listeners know about how you do maximize that oil recovery coverage because at the end of the day. That's what that's what your customers are looking for. Go ahead. You are kind of our enhanced oil recovery expert there and I can add to on requirements out or whatever we need so to take this. Yeah so so. We've looked at a couple of things. And one of them is treating produced water in order to be able to reduce costs. During hydraulic fracturing. By looking at what biocides are costing and how that balance of treatment is for us we start talking about maximizing while recovery though it always points back to do an enhanced oil recovery projects water flooding or chemically enhanced oil recovery projects and in both of those applications nations as seems like there's a level of how much treatment you need to provide. There's there's base minimum which is ally in comparison to other things they use. He's water for an oil and gas. But but then when you get into that we have technologies that we've developed or treatment processes set or special around the desalination Asian part of the process and really leaving the right types of salt in the water. So that you can get better separation on the back end of chemical flood. I think that that's one of the places is where we really special when when we look at it you know bringing new technologies to market looking at you know multi pass Nanno filtration and reverse osmosis assist process as reindeer raters. I think those are a lot of the stuff that the rest of the industry isn't necessarily looking out and I think that that's something that we're really special at her really focused on because of the way that monarch water standard work together. We've really got people that are good at the whole oil solution. But AH beyond that we really have people that are good at membranes. And I guess if I was GonNa say anything I think that's. That's the biggest thing that we're bringing to maximizing oil recovery awesome. You know what's the most important lesson you've learned in this oil and gas business. Screw question if think about that for just to say. But I'll say I'll I'll have to kind. WanNa keep this with water treatment right and and it's GonNa go is going to support what I said earlier on it. The biggest lesson I've learned and again this is a challenge. I think we've had some issues. She's with this and all the gas industry is that we should be able to do this that we should be able to produce oil and do it. Environmentally friendly the technologies are there like Buddy said the technologies are out there to do whatever we need to do a comes down to the perception of water as a way. String this something you throw away and it's a cost center meaningless. Let's just make it as cheap as possible verses waters important right and so you have to have that mindset and we need the industry look at this as we need to do something. Sustainable going forward right. So the the biggest learned is that we can do that. It's there it's been proven you know. There's testing being done their applications locations going on right now. Where we're doing? We're doing things like this but as an industry and it's tough I get it you know and again the industry's been been been there for one hundred years right and he'd been doing doing doing things at certain way but the big learned is that we can do this and we can do it. Cost effectively to we just need the mindset of people to do that wonderful but did you have anything on adamant and just the biggest lesson you've learned since being in oil and gas. I've learned a few lessons that are really large and transitioning from being one of the younger people in the room. I'm to be an in the middle and maybe now one of the older not necessarily like Patti but as as I make that transition I remember what it was like to to be young and to have these new ideas and to fill pushback from people that were used to doing things a certain way or seeing things a certain way. Thing thing for me as I've transitioned that being willing to listen to especially the young people that we bring into our team because they have amazing stuff to contribute when you look at the education that kids are getting in college or you know young people. I guess they're no longer kids but they're able to do advanced programming. These kids come out of college able to program a computer to look Intel black hole and when you start looking at how that applies to oil and gas the world world. Those geyser as you're seeing on the one that they're trying to make very different than the one that we were used to doing and I know you know. There's been a lot of progress since I started so we. We have moved away from some of the older ways of doing stuff. But just you know trying to be open to those things people who were very smarter capable of doing and you know they're very different than the ways ways that we've approached it and I think I'm excited about that but I think that's also one of the biggest things that I've had to work on and learn is to listen so and I'm with you anybody under younger than me. I think they're still a kid. But then I think these kids are really smart and you. Don't listen to these kids. Know always be super smart. They do have. We're running out of time. But I just I always like to ask everyone's favorite quote because I think it just brings insight to the leaders in our industry. Do you have a favorite quote that you will live live by or that has helped you get through life on a day to day. That's a good question. And there are several quotes. I'm as one the other day. I'll just share it. Okay because honestly just made me you think of a lot of different things but it just puts things in perspective but the quote was piece does not come through understanding peace comes through acceptance and I think we fight a lot at a time trying to understand everything out there such as. Why doesn't the Industry WanNa be environmentally-friendly sometimes right but it's moving there right right and so in any way it it just Kinda came up the other day and I was like a really really good quote? That is a good one. I love it very good. Then he got any. I'm having a really hard time remembering the whole quote. That's okay we'll take it apart. I'll take a partial quote and I just love quotes so it's basically about taking the next step in your life and it's Tiptoe if you must he no but take the step and I know it's it's part of a bigger bigger quote but anyway that's the one that is always there with me as you've got to keep keep doing stuff you've got to keep moving and agreed. I love that love that all right. We're we're running out of time as I mentioned to you off the podcast at the end I always say hey. Is there anything coming into this that you thought. Oh I hope the listeners. Learn about me or about our company or about what we do anything you just want to add at the end to let everyone know about no not not right off hand I mean you listen to buy those guys talk too much. It's been great formative. y'All job so not right off hand. I can't think of anything I heard that means. We covered it. I think so quite a bit I was awesome. Thank you very much. Thank you for sharing your time. I appreciate you. We WanNa let everyone know how they can reach out to you either on social media. Yeah or your website so if you want go ahead and throw out all your social media feel free where yet. Yeah I mean. We're we're on linked in obviously water standard dot Com Amina any questions really. If there's any any question about water tree in general right that we entertain we. That's what we want the way we look at it is not. We want to put a product in front. WE WE WANNA conversation right and so reach out to us on the web site linked in or facebook or anything right collison have a conversation. We'd be happy to have that fantastic. Well Gentlemen thank you so much for sharing your time. You're very knowledgeable. Very good at what you do. Tell that just by spending this time with you today sharing that with our listeners. Today thank you so much. Thank thank you well. This concludes this episode of Permian Perspective. Thank you so much for joining us. Of course a very special. Thank you to Baker Hughes Sponsoring Permian Perspective as you know. Baker Hughes News recently launched a new and reimagined Baker Hughes brands are doing amazing things here in the basin and we just want to thank.
"baker hughes news" Discussed on Capital Ideas Investing Podcast
"How seem to welcome to the capital ideas? podcast thank thank you very happy to be here. You don't mind if I call you hoc- like I wouldn't the office every day. That's great informal nickname so much to cover because oil is such an interesting sector. The oil business has been going through a rough patch recently with slowing global economic growth and low oil prices. What's your big picture outlook for oil going forward and specifically do you think this period of low oil prices will continue long term or is it a temporary situation that should correct itself at some point? How do we think about the oil industry is undergoing wing some disruption primarily from these US producers? Now historically. Maybe they have been what's known as wildcatters exploration assists but today they're really technologists in the manufacturing companies shale is now something that can be produced rather systematically and with the focus on cost so the risk is not whether there's soil there but whether or not you can produce it at a low enough price to make economic and as a result to finding this so-called shale oil in Texas US and North Dakota and Colorado in other places supply of oil has grown considerably faster and demand for oil and. That's what's created the week prices you alluded to. But we're probably in the Middle Tha later innings of this transition there is still a lot of oil shale growth and the potential to grow well in excess of demand because demand for oil really only grows about a percent a year but there are some changes access to capital is being shut off. The cost of capital for companies is rising and the appetite for growth among investors has been reduced dramatically and as a result there's less investment in oil shale. So the thing that has been most barish for the oil markets. The unrelenting supply growth is beginning to slow with reduced investment. Meanwhile as we speak the largest projects six from the period pre twenty fifteen pre kind of this most recent oil collapse are coming online. These are long lead time projects like the massive. You'll hunts federick field in Norway and some fields in Brazil and Afield in Guyana collectively. Those fields are going to produce an excess of eight hundred thousand barrels per day. All coming coming online in a few months and that's roughly. What demand grows a year a lot of capacity coming on? But when you look beyond that you see oil supply supply growth from shale slowing and those are really the last of the big mega projects. So we'll have a number of years where these projects that were sanctioned in two thousand twelve thirteen fourteen fifteen will come online and there will be a period where there are many fewer projects coming online because of the very very loyal prices experienced in fifteen sixteen and seventeen so near turmoils going to be volatile. There is a case to be made for a steady tightening of the market. After that keep in mind you have an Iranian embargoes goes. You have two million barrels per day of oil really could come online tomorrow but for this embargo. That's a huge amount of oil. That's about two times the demand growth within a given year too much to be absorbed so that comes back online. You could see another oil price collapse. Certainly if it comes online near term and then of course you have his Walea which probably has half a million barrels per day? offline do different embargo related issues and with them. Investment could easily grow their capacity Over reasonable period of time if there were new petroleum lawn and new government so as always oil There's an industrial angle. But there's always geopolitical angle. So it's complicated. There's so much unpacking that when you talk about the declining access to capital and the Higher cost of capital. Say More about that so we understand what's driving that the fact that there was. You know a decline in prices and sense of oversupply so investors don't want to put more money into it or what. What behind those forces in this is the oil markets? He goes very along cycle so for many many years the US oil market did not grow. There was no supply growth. In fact we've been in secular decline from the late seventy s with the discovery of oil shale I in the gas oil shale and now in the pure kind of liquids oil shales there is. It's a tremendous potential for growth in North America and for companies that have been traditionally gross. Starve this was very exciting. And so investors poured the money into this space. There was private equity investment but there was also tremendous amount of equity raising and a tremendous debt raising among the public companies all geared towards growth. And the faster you grow the better company. Spending two or three times of excess of their cash flows to grow and the equity markets rewarded with higher share prices higher. Multiple stocks became more expensive and part because there was never a belief that there was a constraint to that growth you could ever grow enough to influence the market cricket but in its peak year. US shagrue more than two million barrels of oil per day. That's a tremendous amount which the total people understand hundred million a hundred million globally globally half in Iran. I mean it's you know it's more than as well apprentices today by a factor of two so it's a tremendous amount of oil to come online in a single gole year let alone similar amounts over multiple years so as that coil came on and the growth came on costs exploded the cost structures the the companies became very high so even as oil prices went higher and higher. They weren't making more money and as oil prices decline. Then Ma'am lost a lot of money. So investors looked at this and they said well wait a minute. It's been seven. Eight years and returns on equity are very low returns on invested capital very low yet there was still a lot of private money money coming in so whereas publicly traded companies could no longer issue equity or raised at private equity was more than willing to fund investments on the belief that the market would improve they would invest in these companies and they would sell them then to the large public companies. Well that hasn't happened because that's all of the public. Companies has slowed their growth rates. They don't need to do acquisitions to continue growing so now many of these public companies if there were a mean it's no exit and they're all wondering how am I going to exit these very liquid investments and so that access to capitals. Come off so now. You've got no private investment. The banks are tightening the reserve base lending the public debt markets are not lending and the yield on many of these company's debt is very very high. The investment grade market is still open for high quality companies. And there's no market for equity issuance. So it's really force. These companies to live within their means and further to that actually many investors are demanding they generate cash today and all of that is leading to kind of a slowdown in growth. Rothe it's very difficult to find someone to give you a dollar debt or equity to grow your business very interesting now for listeners. Who may not be as familiar? Who are the biggest players in the oil industry? The super majors that people talk about what drives their share prices who the other significant firms in the sector. Whether it's exploration exploration or service companies. Give us a kind of overview of the drain great well the biggest companies are what are often referred to as the super majors. These are companies like Exxon John Shell Chevron BP to- Tau these are household names they typically both producing oil but also may chemicals. They refine oil oil into products like gasoline. That can be put into your car. And so they're integrated across the supply chain and they're often massive These companies typically don't have a particularly volatile share prices. Their earnings aren't that volatile because often when oil prices are low. There's more profits to made in the refining. So that integration attention moves a profit pools around so their earnings are broadly more stable and often their portfolios are more international and internationally profits are made very differently in this business very often. These are what are called production sharing contracts. So they're driven to generate very specific return on investment for the companies which means when oil prices are higher. You get paid. You were barrels. When oil prices are lower? You get paid more barrels but the dollar you get paid more or less the same. So that again makes these businesses much more stable and designed that way because most investors in the super majors just want the dividend and they offer very high dividend yield very modest growth and actually typically do very well in down markets because they have a strong investment great balance sheets and earnings. That aren't that volatile. Those are the the biggest companies the ones that are more exciting if you will or the expiration production companies and these used to be riskier because often they were exploration oriented. You could find something. I could find what they call a dry hole which means nothing but now with shale it's become an industrial business it's become a business about just growing manufacturing this product product and so these are companies experience a lot of growth and when oil prices are high. They make a lot of money often unless they they spend too much and they inflate flight their cost structure and we know prices will lose money so these stocks often move in tandem with the oil price although recent years have gone down even up oil years years as investors as I mentioned earlier in our conversation are increasingly not interested in these companies because they're not generating great returns on invested capital. Then they're the oil service companies. These are probably not household names. Halliburton's probably a household name because of of Dick. Cheney wants being the CEO there but companies like slumber J. or Baker Hughes News and these are companies that really work for the two types of companies. I just talked about the super majors and the MP's and these companies provide services to them. They provide drilling rigs. Eggs provide fracturing services. They provide a lot of different services in the production process and then finally you have refining and chemicals. These are the companies that take the Raleigh all allowed the ground and convert it into products that you can use. So that's basically the map of the terrain. Let's talk a little bit more about the American shale industry and how that fits into the picture because because you know people have heard that the US has now the number one oil producer in the world surpassing even Saudi Arabia which ten years ago seemed like a impossible notion motion. How did that happen? And what are the implications. What's really interesting because when you think about OPEC OPEC? More or less became cohesive cartel how the year in which. US oil production peaked. And so the notion of being addresses when in the seventies so the notion Russian that you can control oil. Prices is predicated upon the assumption that others cannot grow and so when the US was no longer able to grow they reached some geologic limits based on the technologies of the time OPEC now could reduce production knowing that others were not able to raise production and therefore make more money and this has huge implications particularly for US geopolitical interest and our interest in the Middle East and the importance of the stability of the Middle East. It also has huge implications locations for the balance of trade as oil for many. Many years was the biggest contributor to the trade deficit with the adamant of Shale oil which leverages the ability to hydraulically FRAC. It we'll drill horizontally accessing a huge amount of reservoir producing a lot of oil that was a revolution that was very disruptive and that turned around a thirty year Tran I and declining. US oil production and really presaged a new era for OPEC in which. It's actually much more difficult to manage the market and that oil production from the US shale grew tremendously but it was very lucky time for us oil shale because at the same time the USO show is growing Libya was undergoing a civil war. And we had the first embargo argot of Ron and so a lot of oil was taken off the market at the time that all this. US oil was coming on the market. So the oil producers enjoyed very high prices and the ability to grow so. It's no surprise that really late. Twenty fourteen in early twenty fifteen win. Libya's civil war came more manageable and the Iranian. The embargo ended that all of a sudden OPEC had to accommodate all this oil at a time when. US oil production was still surging and the Saudis looked very rationally. We had this in realized that if they cut production to accommodate the soil they would eventually cut themselves to zero so instead they pursued a new strategy which is to produce produce more and to destroy you shale it was a bold strategy and it was a smart seeming strategy but it had one problem the US producer Sir ended up being extremely innovative and so as oil prices fell. They ripped all kinds of costs out of their cost structure. They they figured out how to procure sand cheaper move water cheaper useless rail. They figured.