7 Episode results for "Markel Corp"

Oil & Gas + Coronavirus on Permian Perspective  PP040

Permian Perspective Podcast

09:19 min | 9 months ago

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.

Permian Perspective Permian Permian Basin Texas Permian Basin Krista Midland Houston Twenty twenty Odessa Baker Hughes Petroleum Club of Houston Baker Hughes Brand API Energy Houston NBA Energy Technology Company Texas DOT
Impacts of COVID-19 on Permian Perspective  PP042

Permian Perspective Podcast

14:22 min | 8 months ago

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.

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Permian Strategic Partnership on Permian Perspective  PP041

Permian Perspective Podcast

23:09 min | 9 months ago

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.

Permian Basin Permian Permian Strategic Partnership Permian Perspective Ceo Tracy Bentley West Texas United States Census Bureau Baker Hughes Baker Hughes Sponsoring Permian Perspective facebook Twenty twenty federal government Midland Texas Mvp Krista Texas
And so it begins Chevron picks Noble in Biggest U.S. Energy Deal Since the Oil Crash OGTW211

Oil and Gas This Week Podcast

29:14 min | 4 months ago

And so it begins Chevron picks Noble in Biggest U.S. Energy Deal Since the Oil Crash OGTW211

"You're listening to the oily gas this week podcast with Marc Lacorte and page Wilson Vince is the show for busy oil pros who quickly want to keep their finger on the pulse of the industry. Listening to all guests this week podcast brought to you by IBM. This is the show for busy all pros WHO WANNA kit quickly keep their finger on the pulse of the industry. Thanks for joining us again for episode to eleven. How's it going mark scores also page and speaking of numbers like to eleven guests, which podcasts is the fifteenth that's one five fifteenth most listened to business podcasts in the Republika Trinidad and Tobago I will assume this one. So we we bumped it up. We were number twenty seven. Now we're up to number fifteen. So. People try to Baga. We appreciate you very much helping us climb the ranks. Our goal is being the top ten business podcasts in Trinidad and Tobago just they're just there. Okay. Because as soon as we can start traveling in, that's where I WANNA go. We're good. Do some life podcasts Internet ahead I don't. Care where we go, do you live podcasts from? So, we got some reviews The first one is worth the listen and fast moving as someone that has spent thirty years in in the land operation side of the Pipeline Business USA saying Canada and now venturing out on my own appreciate the regular roundup of happenings in the industry also appreciate the positive vibe you guys bring to the show, keep it up. That was a five storey view. Was it yet? Another one. Yep Somebody spelled your name. Wrong. But that's okay. A Markel Corp is a must-listen your insights and your platform providing a much-needed form in arguably the most necess-. Necessary and relied upon global industries. Thank you. Mark. You're being heard in notice from down south in Livingston Parish Louisiana. Gulf. Coast downstream process. What does that between Baton Rouge and Hammond yet down to by the they like to think that they're in the swamp but they're not the swamp they're points and I'm from I'm from Zachary by big shout to Livingston Pairs who You've got the white boots on. And then page you know we got this mystery gift at the Corporate Mailbox Dijon. I was a week ago we opened up and it was some calendars, and so I just wanted to be a little shout out to bj Jackson at a hamlet valid fittings don't know bj was nice enough to send us a couple of calendars for this year sweeping. Maybe. It's just a markdown of how soon twenty twenty and how much we wanted to. He actually reached out to me a link to you and I connected with him. He's told me Hey, look love, which is thought it Senio. Little. Gift. It was sweet. Yeah. So all right. Let's get into the news stories of I one. This is the big one. Chevron pick noble ambigous US energy deals since the oil crash how much they pay for for noble a big chunk of change about five bill. Okay. So here's the cool thing ever when they're deal fell through with oxy I mean with. Anadarko. Yeah Right. So the penalty that that Anadarko had to pay Chevron was a billion dollars. So thank you in. Darko, for helping Chevron by Newell. Twenty percent of what it took for them to buy. Now, this is all cash deal. Everybody in the industry knows disorder stuff was historic happy out an ears a perfect example. This is a good article and CNBC THE PROPHECY NBC's the out really understand the oil and gas industry. They pointed a lot of reasons I. Think Chevron did this let me tell you Chevron's doubling down the Permian. This is there's other stuff they're getting for this. Yes, I get it. Is the right time. Yes. I get a Chevron had a lot of capital. Noble had a lot of debt. Yes. I get it but this is literally Chevron picking up assets in the Permian for pennies on the dollar, which is which we knew this was gonNA happen. So the good thing about this is a once things get a combined settled in this job security for. Knew, companies move forward it's going to grow this allow Chevron to those fields more effectively, which means they can make money at a lower crude price were just a hair over forty dollars today. So I expect more of this sort of stuff to go I think see a lot of consolidations still happy with the service companies which will get to later. My big thing is pages. What is Exxon do I know I know I actually saw someone commented about that on an Unin- different thing I linked in and I was just like Yep. So all my buds all my friends on Biz equates my listeners at Exxon I. Love You I, know y'all are up to something I'm watching you. I don't know what it is yet, and if I ever figure out what it is probably won't say 'cause I don't WanNa be the guy that messed up the deal but excellent I know you're up to something I, just can't figure out what it is always up to something they always always always make good decisions right? What's next bomb proposes new Ghomley deal yes. This is a really interesting, and if you actually read through this they WANNA basically lease out about eighty million acres and eighty million acre sounds like a whole bunch of acreage. But the actual Gulf of Mexico is six hundred square miles, which is three, billion, eight, hundred, forty, million acres. So, now the sudden this does this sound like that big a deal. But the Bureau of Energy. Management has let everybody know the release actually said seven eight point eight acres, not quite eighty and the Gulf of Mexico in November they note the cool thing is page. KGO oxidants thing off now they're livestream. Oh no kidding. So Not Webex. LIVESTREAM WOW so. Bowen. If you want some help with livestream, we've figured out how to do. We know all the problems here the lettuce new for small fee. We'll help you this kind of actually my shrink with your the government's GonNa pay us. Mark I'm just saying the gifts one half of one percent of whatever these lease blocks go for he'll do it for free. But this is just the head of this is Mike ahead of bones Gulf of Mexico region basically saying, this is a fundamental role for our nations energy portfolio and is the most productive basins in the world. The recently developed as resources they're doing it. It's awesome. It's this job security from a whole bunch of states in the Gulf coast I mean literally probably. From Texas all the way to maybe even Florida in this at your local incomes, your tax base near the also the engineer who bids illness and see actually what it goes I gotTa feel offshore starting to pick back up even though I knew this industries in a really bad place a see offshore it up. This might be the first hint of that yet. Exactly. And next article. Halliburton Microsoft and accenture form agreement to advanced digital capabilities. Done. This has been happening. We watched the other big tech companies come in and partner one on one with the big serves companies big operators. This has been needed to half of Halibut. Halibut still runs a lot. It's own data centers. No Hey, big red I. Love You. I used to sell you access to your own data centers twenty five years ago. So I get it. But this moving over to Marc Sulphur sewer, which is one of the most robust cloud offerings out there now that Google's out of the makes and this is Microsoft working with Halliburton under the direction of accenture signals think of accenture as project managing this. Yeah. Rozov and you just don't get much better than these guys right there pull it offers be some work involved. But when they're finished, its could be cheaper for Halliburton operates be much more scalable a much more secure and it needed to happen. It is really cool to see these three come together as a partner. It's not unexpected. You know this this building out the digital competencies with. The large operators Lord. Service. Companies is something that's a vital to move toward the future and honestly if your company and you're looking at doing this, you get left behind. So you know once again, even in this Lou crew price environment even though we're still lockdown, here's some jobs and here's some prosperity for Halibut, mark in accenture as they work to publicity off, be interesting along its season takes them and do this take them at least at least twenty four months from beginning to end probably. Yeah. At least. Yeah which is honestly not a very long time frame to move everything over but you know good for everybody here we know all these companies good probably off. All right. So energy trader Vitol Enters, US, oil and gas upstream. This is interesting page. So vital is a traitor they're not an operator they have no as far as they have no operations here in the US. So what they're doing is they're actually going to buy some mature own gas assets mostly guess now, once again, they have cash the industry in the US is hurting. So you build a pickup assets for pennies on the dollar, some of the major producers that have that have filed bankruptcy. I'll bankruptcy add chesapeake winning California resources. So this is smarter the only thing that I'm little aware of muck say concerned but aware of is that usually the. Traders. Don't do well and operations because it's a different business model. Now however, if they can figure it out which I think, they'll probably just hired the right people since talent is cheap right now, the figure out how to manage those assets and the production natural gas. Then when they go to treat, it gives them a competitive edge over other traders and it looks like they have some upstream operations. They're just not here in the united. States also. Like Ghana Yeah. Okay. So so they've tried this before wonderfully if we're successful or not. Yeah, you know this type of things be done slightly differently is is the future of our industry. Knew you know we just talk about tech companies in an industry that's been happening you can see more that you could see more traders step in and try to piece of the value chain give them a competitive advantage. You're seeing stuff you would have never guessed like companies build their own private fiber network from the trading centers, just two or three micro-second head start over their competitors so that you can do. They can do fast trading away gives them advantage. So it's just we're moving to a different world. This is kind of something you would expect it will be interesting to see if the US traders start following. This thing is well because once one of these companies do it gives them say a one percent or even three quarter percentage edge on their competitors their competitors have to do this. Yeah, and it looks like it hasn't been. So Smith for them at said, last year trader pulled out out of a one point five billion deal to buy a stake in two major Nigerian oilfields upon if they got that email from Nigeria. The Prince. Could appoint only after what had half billion dollars into the realize that it was bad. And vital I'm just teasing. You didn't fall for you. All right. The next one is US regulators approve Elba Island Ellen g expansion. You're this is I give it. We both live there Louisiana, another place we both lived that we didn't know each other. Away I don't actually I know if you lived there for long. You talking about Georgia Georgia I've never lived in. Your. Again towards. Okay. All right. So what should've says the place of me and your parents lived How cool is it? There's a Ellen g plant being built off the coast of Georgia I. Believe it is it on the Atlantic it has to oh, Yeah Doug. Cows decided. It's called Florida. That really now. So Elba Allen started LG exports last year, and so because of the pandemic and everything else they haven't finished building the trains if you train is it's basically When you drive by it it looks like all refinery except all these units are in a perfect line. That's why they're called a train. They will actually look like a train, but the train is what? One in the train, you bring in natural gas as the gas and on the other nick comes out as liquefied natural gas. So there, this is launching a seventh train last year, we the came the world's biggest the Thurs biggest energy exporter and we're chasing down. Australia Qatar eventually will be number one, a nobody can keep up with the growth golf instructor been put in place. For the last ten years, and so this was a stepping up production and it's really interesting in the same work talk about another Ellen g plant was supposed to come online at twenty, twenty, five it's called the Jordan cove LG plant but the project face a lot of opposition because it's an Oregon right, which tends to be Brian Likley different than Georgia. So the Clinton completely different. So the regulators and the investors in Georgia are actually reached out to the investors and organ going, Hey, take your money and your expertise and come over here. Let's several trains in Georgia and you can just shut down the one in Oregon. So it's really interesting. Geopolitics starts moving investor money. In places where it just makes it easier for them to do business such as Georgia, and if anybody has anything to do with this reach out to me now. So thinking back to normal I would love to take a trip to Georgia like as as a company and actually shoot some video and see what y'all are doing without edgy goal because I just don't pick your Georgia's doing this. So hats off to regulators that saw the money they could make for their state and for the jobs crate, actually pull this business into a state that I do. Not Expect L., I just think it's awesome because at first I was like, are you talking about the country Georgia right? So here's the bizarre thing in this hasn't happened yet, but there's a couple states up the east coast from Georgia? Not that for geographically that are buying Russian Owen G and by it through the Caribbean watch the don't buy their own elegy from the US. They could get from Georgia literally right down the street and they're keep paying a premium for the Russian Ellen g coming out of the Caribbean. Now, we've talked about this before. Yeah. It makes no sense whatsoever. He would be really cool. What if the US Georgia Ellen g facility got to the point where it was exporting Ellen G to Russia. So. Georgia. Georgia Elegy. That'd be a news story. Let's make that happen people. Okay. All right. China owes forty two billion to clean energy companies. Yes. So this is actually a really good oral. If you WANNA understand one of what's one of the constraints around a renewable energy I, hate the term clean energy because no energy is clean. Some are cleaner than others. Benelli operate one of the cleanest natural gas at Duh. So, this is China just like the US does and Europe does has given subsidies internally to companies that want to stand up energy comes solar and wind predominantly, and so what happens is when the government pays you to stand up a windfarm or solar form part of your revenue stream is that government money coming in? Now what happens page that money doesn't come in? also compete in the market. Yeah, and you can't. Right. So you go out of business. That's what happens here in the US China because his communist countries a little bit different, but the market economics are exactly saying. So here's China. Last year, they announced the cut the amount of their subsidies I. think it was it was eight, hundred million I think is one billion. They could eight, hundred million. So they could you know say twenty percent of the budget out the for subsidies. But now they're not paying it right now if you're a renewable operator, you operate a windfarm in China and the government isn't paying subsidies that they said they were pay. What is your option bankruptcy nothing? Like here, we can go to court right and so I wouldn't even know you know what's happened is if this doesn't get fixed and I suspect it will not get fixed a suspect that China will say, okay, we said we're we give eight, hundred million in subsidies will give four hundred, which would allow some of the renewable company survive but when you remove the subsidies into business. Model doesn't stand on its own it collapses and child the problem with China is and I'll give them credit the last time I went to Beijing, it was this was years ago it was the most polluted place been on earth I don't know who might could live there and so to try to clean that up, they're moving the country from coal fired to natural gas fired electrical. Generation in they're trying to put as much renewables in his possible to drop the pollution sue they came out of the gate really hard. They put a lot of government money behind now it's just not sustainable and with China's economy not roar long because they're shutdown just like the rest of the world they're not have the money to put in this and right now natural gas is. So cheap that if you go head to head between natural gas from from the market view natural is win every single time. So let's kind of keep an eye on this. I think this is the beginning of something you see happened also here in Europe and you know you've heard me talk about this affords knock happened in places where the renewables or small output, just a powerhouse refrigerator. Charge up at IPAD. Whoever that we're we're talking about trying to use renewables to keep the population in the whole modern Adria, air conditioners, refrigerators, and TV's and computers, and so I think this is the beginning of something to see happen along the rest of the world. Then the interesting thing from market point of view if this thing goes the way I, think it will, at some point, the market forces will stabilize and then the people that are doing renewables will make money because they can compete in whatever niche there in but we're nowhere near there ski by on. This time Halliburton shares rise as cost cutting measures deliver results. Can We talk rulers? Yeah. Sure. Why not? I mean we were only called Communist last time. So I mean we may, as we'll talk about rumors and so technique FMC is one of our sponsors I have no insider information none Albert and I know I have no insider information there either I think Halliburton's goodbye technique that from see thanks and I, really think. So it makes sense for a points of view. Halliburton has dominated US markets for services. They've never been an offshore manufacturer done a little bit of. Work Services work at this just makes perfect sense to me especially since their competitors slimmer Jay is hurting so much in the US and a saint time Baker Hughes is going to different direction. That's not what this articles about. So that's strictly a rumor nobody invest room. It's more of a theory mark or theory. He'll be a rumor after by starts talking about after hear me talk about it but nobody please invest money based upon what I think's GonNa Happen but this is Talking about Halliburton's stock shears has went up, which is amazing. You know it's if you look at what they're doing Jeff Miller has been a really good job. I hate to say this is a really good job of slashing workers, slashing budgets and was able to bring and even slash Halliburton's dividend. But by doing that, he's actually brought their free cash flow up which in driving their stock point up. So they they simply outworked whatever by thought, there will be able to do. This, so that Halliburton's really known for if you know there's service companies is kind of a joke. You know if you look at Halliburton Slumber J., let's say you lose control of a well out in west Texas Albert Nelson one hundred guys and fifty bulldozers, and they'll just beat the pipe into the ground until it sealed in the league and you get control of the well slimmer. Jason's one smart guy that studies the problem for four days goose and turns one valve and stops the he gets control the well both charges same right but they go. About things different Halliburton is known as the the meet the the big eight, hundred pound gorilla in the world. So this is gonNA. Be Interesting to see if you know Halliburton stock going up is would give them a competitive advantage over their competition here in the US, which is really what this is about, and then they're looking at over two billion dollars every two billion dollars in right down. So the second quarter, right so this is all their gear, all their pumps and everything that just aren't being used. So they generate most of their revenue North America. Baker he uses chasing them less and so a slumber. J.. So let's just let's just see what happens here in the. US. But I think when this all shakes out, you'd be left with Halliburton who have bought Technique Betham C. which is not part of this oracle and you'd be left with Baker Hughes and I really think slumber Jay's pull out operations out of the US and everybody thinks I'm crazy when I say that I don't want I don't want any jobs be lost but you know, Halliburton? This July twenty twenty it's done a good job driving their stock backup. All right. SO PREMIER OIL COMPLETES DEAL TO BUY BP nor sea assets in five hundred, sixty, five, million dollar ill yes. This is premier oil basically buying assets EPS decided aren't economically viable doesn't mean that other people can't make money in the north. Sea doesn't mean that BP really apply yourself couldn't make money these assets. It's just not. Worth their time right now worth their effort. So you see this all time as as feels, get mature you typically the super majors and sell them off to mid-size operators who can who bit more agile than they are and can still make money at it, and then as time goes on and less than new wellstone deletion technology comes on aboard as those wells produce less and less than the mid size. To smaller operators in eventually you're left with very small with one or two. Well. So we're now the thing about the North Sea because environment is sue rough and hard to work in. So cold and so much wave action I don't ever sees super small independence picking up wells nor see, but you'll see a whole bunch of mid-size people especially, people have been there for one. Hundred Years that know how to make money doing this soap. I expect any of operators that have assets left in the north. Sea, that aren't making money to follow the same thing that you just basically assets you can't make money at. All right. So pack has a new competitor as China ships oil from swelling storage. Yeah I. was just talking about this is somebody today. So the Problem is nobody knows how much that torch is and it's not just China you have investors here in the US that literature store and oil and pipelines right now you have a lot going on in the Middle East course alive is going on in China, we actually spoke awhile back how China is using this market opportunity to build storage right now, they can make a dollar to. Buy An oil dirt cheap and put it back on the market and twenty twenty. But then there longer term plan is as that market opportunity disappears as they start tracking China that storch is will be there. So they can store the FRAC oil and not have to build pipeline infrastructure is like it's actually really really a smart strategy, but this is a a whole bunch of Independent. Investors in in China that have bought storage typically on the ocean. So they bought a tankers supertankers I. think There's fourteen different depots have these tankers stored and they literally bought crude and crude was a negative money which I don't think. So I paid them to buy the early still paid for it, but they paid literally does sport and now as the price of forty dollars. On their starting to put it back on the market the investors here in the US or do the same thing same way in the Middle East, the big unknown is how much oil is really there no matter who talked to no matter where they get their information from nobody can accurately predict amount of oil is stored. So as that stored oil comes back in the markets could. Keep prices lower now once that storage has deplete, the market will bring prices back up and once again as I've been saying I think it's GonNa happen the first quarter of next year twenty, twenty, one, I, think we'll get revolt at storage like you see the prices rebound sixty, sixty, five dollars helps that everything slowly opening up. So all right. So this is a little bit of. An, update to something we covered in the past weeks rush and mayor charged over Arctic fuels, Bill Resigns Yeah, and they actually opened a criminal case against him I. I don't know the back story. It is interesting to see in the media that a mayor. Yeah. That's Kinda white caught my eye about this entire thing why the mayor? Yeah. What about the people that own the zealots? I, think it was one of their facilities. So it is interesting. Wise. The mayor being charged if. We have a bunch of listeners in Russia. We actually listeners one, hundred, one, hundred, eighty, two different countries. If you'll understand the politics like is the local jurisdiction. In this case, the mayor they have legal responsibility what happens in their jurisdiction, I? Don't understand the mayor's immature just says. He was just charged with negligence. But what's the punishment for negligence in Russia. I'M GONNA Guess Death I. Don't know if it's that. Whatever it is, could it's probably much worse than his here in your maybe not maybe it's a fine or whatever but I do think it's interesting that number one they charged somebody, which means they're admitting that somebody made a mistake which they never do and I'm also interested that's the mayor. So if anybody can help us do a deeper dive that let me know reach out to us because I would love to understand why the mayor's being charged. But at least they're charging somebody and and you know hopefully that exited turn well I just think it's weird that they're not including other people in this. And Yeah like it's like he he didn't build it man. Maybe. Maybe he was engineered bill. Well, you never know and that's all for this week. That's all for this week when i IBM sure giveaway about it we'll still do it right? Yeah. All right. So if you want to win when these really cool shirts, very simple thing to go the show, it's click on the link would give away one a week. If you don't win, you can register every single week and then we are really working on open saying this but we're really working on some cool giveaways with that unique serial number. Register, win take a picture. Unique serial number. Stay tuned. All right. In this week's read count is to seventy seven. So four percent down from. Eight percent up last week. Four percent but still to seventy civilised hope it gets it's not it's not dropping big but you know it is what it is. Is What it is. We got some great. Hill. From our street team. So we shot a video couple of weeks ago. Publish it. We asked the street team to chip in and help promote it, and thank you st team at the things over over four five thousand views right now. Yes Street. Thank you move the needle for when we appreciate and then finally remembered to think y'all I am so sorry. I, went back to look at the facebook group I'm just an Askar like, Hey, can you do this every and come back and say thank you job Mar-. Yes. You're manners I know. So my apologies this remember to come back and Say Thank you. But if you want to be a part of our street teams fairly simple, go to facebook search og and St team a sign up. There's a couple of questions you have to answer make sure real person otherwise I declined your request and we just want you to help us with social in lately it's been nothing but Sharon it so wonderful. Clicking stuff that would be a helped us and when things get back to normal if we're in your geographic area, you can join us part pressing in some other cool stuff. and. 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So we appreciate each and every listener we have out there this is not normal times and as we kind of Zigzag To figure out what we could do to make sure we still give good value. We don't always get it right, but it looks like the livestream have got it right and also looks like the pitch podcast is taken off. We got some more stuff in the works as well. So stay tuned speaking to stay tuned. What's the first Friday acuity page that's next week. But what is first Friday Hyun a ask us? So Question Mark. So I very cute eight, we do this every month. GO TO GUESS DOT COM Click on ask a question if we use your questionnaire, you get big shoutout. I really think wonder if we should do something other than give him a shout-out, we should give them the the unique collectable one of a kind really hard to source nobody else can get it oh Jin. Heart had sticker. Oh. Yeah. Yeah. We do that I don't know it's up to you I. Guess we would also need to collect that person's information. 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Coronavirus | Saudi | Russia  OGTW198

Oil and Gas This Week Podcast

32:07 min | 9 months ago

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.

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Proflo on Permian Perspective  PP039

Permian Perspective Podcast

28:49 min | 9 months ago

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.

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First Friday Q&A on Oil and Gas This Week  OGTW197

Oil and Gas This Week Podcast

37:41 min | 9 months ago

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.