Daily Standup Top Stories
17 Iranian ‘Ghost Tankers’ Bring Oil Worth $1 Billion to Syria
At least 17 shipments by eight different tankers have delivered more than 16 million barrels of Iranian oil to Syria over the past six months, according to publicly available data. The “ghost tankers” have docked […]
Chevron to boost U.S. presence with $7.6 billion PDC Energy buy
May 22 (Reuters) – Chevron Corp (CVX.N) said on Monday it is increasing its U.S. oil and gas footprint by acquiring shale producer PDC Energy Inc (PDCE.O) in a stock-and-debt transaction worth $7.6 billion. For Chevron, the second-largest U.S. […]
Marathon’s return to Basin encouraging
Having returned to activity in the Permian Basin last year, Marathon Oil Corp. reports that production here is already rivaling that of the Bakken and Eagle Ford formations. Lee Tillman, who is president, CEO and chairman of […]
$209bn a year is what fossil fuel firms owe in climate reparations. We want that paid
The truth is out, and it lays bare big oil’s plunder of the environment for commercial greed. Academics now estimate that the 21 top fossil fuel behemoths are liable for an estimated US$209bn annual reparation bill arising from their […]
Exxon Crushes Progressive Dreams That “Net Zero” Has Any Chance By 2050: It Would Mean Collapse In “Global Standard Of Living”
In a world of suffocating snowflakery, ESG hypocrisy and, well… Tranheuser Busch, a corporation telling the truth without fear of reprisals from the Open Society-funded virtue signaling cabal is rarer than an mRNA-injected, genetically engineered […]
Highlights of the Podcast
00:00 – Intro
03:12 – 17 Iranian ‘Ghost Tankers’ Bring Oil Worth $1 Billion to Syria
05:57 – Marathon oil keeps growing and providing long term value
08:53 – $209bn a year is what fossil fuel firms owe in climate reparations. We want that paid
12:08 – Exxon Crushes Progressive Dreams That “Net Zero” Has Any Chance By 2050: It Would Mean Collapse In “Global Standard Of Living”
15:45 – Market Updates
23:44 – Outro
Follow Stuart On LinkedIn and Twitter
Follow Michael On LinkedIn and Twitter
Video Transcription edited for grammar. We disavow any errors unless they make us look better or smarter.
Michael Tanner: [00:00:14] What is going on Everybody, Welcome into another edition of the Daily Energy News Beat Stand up here on this gorgeous Tuesday, May 23rd, 2023. As always, I’m your humble correspondent, Michael Tanner, coming to you from an undisclosed location here in Dallas, Texas, joined by the executive producer of the show, the purveyor of the show and the Director and Publisher of the world’s greatest website, EnergyNewsBeat.com, Stuart Turley, my man, how are we doing today? [00:00:37][23.3]
Stuart Turley: [00:00:38] It’s a beautiful day in the neighborhood and boy, we got an action packed show today! [00:00:43][4.7]
Michael Tanner: [00:00:44] Yeah, one of my personal favorite shows because we a lot of oil and gas news the topic that. [00:00:48][4.7]
Stuart Turley: [00:00:49] I tried. [00:00:49][0.1]
Michael Tanner: [00:00:49] And that’s Ted where I lean but no Stu is absolutely right packed show First up on the menu, of course, we’re talking about the Dark Fleet. 17 Iranian coast tankers bring oil worth about 1 billion to Syria. Stu will cover what’s going on with the dark fleet globally. [00:01:07][17.5]
Michael Tanner: [00:01:07] Next up, a little overview on Marathon Oil, how they continue to grow and provide long-term shareholder value. This is a I think, really a great overview of why the marathon is is is has really been one of the leaders if you look at it in terms of overall returns,. I think outside of oxy, outside of, you know, really for the independent majors, they’ve really, you know, shown themselves to to stand out. So Stu will kind of give a run down. This is a pretty good research article that we wanted to highlight. [00:01:36][28.7]
Michael Tanner: [00:01:36] Next up, $209 billion a year is what fossil fuels firms owe in climate representations we want that paid. This is an opinion piece by none other than Stuart Turley covering how much fossil fuel. [00:01:50][13.7]
Stuart Turley: [00:01:51] Negative. [00:01:51][0.0]
Michael Tanner: [00:01:52] In climate reparations so Stu will cover what’s going on there? And then finally, Exxon crushes progressive dreams that Net zero has any chance. By 2050 it would mean a collapse in the, quote, global standard of living. This is Stu’s one of stu favorite type of articles, the alarmist type talking about what’s going to happen with the climate net 50. You know, net zero by by 2050. Exxon seems to putting a damper on that. [00:02:18][25.9]
Michael Tanner: [00:02:18] He’ll kick it over to me I’ll quickly cover what’s going on in the oil and gas markets. Oil up to 72, 22, an overall fairly choppy day. We saw a little bit of movement natural gas dives down to about $2.39. We did see a little M&A action, Chevron buying PDC energy for $7.6 billion. I will cover all of that in a bag of chips, guys. [00:02:38][19.7]
Michael Tanner: [00:02:38] But first, all the stories you are about to hear are courtesy World’s greatest website EnergyNewsBeat.com you can check out them in the description below. We appreciate the team they keep that up to speed with everything you need to do. Stuart has a great job of curating it. Really the best holistic view about what’s going on in the energy business. [00:02:54][16.6]
Michael Tanner: [00:02:57] Dashboard.EnergyNewsBeat.com he best place for all of your data and energy will get it while you still can definitely going behind a paywall soon. That’s about it tho Stu where do you want to kick us off? [00:03:06][9.1]
Stuart Turley: [00:03:07] Hey, let’s go with one of my favorite rad little stocks here. 17 Iranian ghost tankers bring oil worth. It’s over a billion. It’s like a billion. 2,000,000,005 to Syria. Michael, what’s a few billion between friends? This article is absolutely nerdy from the standpoint that a lot of times, you know, you hear me go Dark Fleet, Dark Fleet, Dark Fleet I bounce around the room and go Dark Fleet. [00:03:32][24.8]
Stuart Turley: [00:03:32] But this actually has how it goes on and if we start, what they’re finding out is that there’s 17 shipments by eight different tankers have delivered more than 16 million barrels of Iranian over to Syria. This is only part of what’s going on in the Dark fleet that’s a lot of oil, Michael. [00:03:54][22.0]
Michael Tanner: [00:03:55] That is a lead said it’s not a small amount. [00:03:57][2.0]
Stuart Turley: [00:03:58] No, and that’s more than we have in our bathtub that we were doing years ago. So if you look at the map, you have the Red Sea and we they go up through the Red Sea, up through the Suez Canal, and then they turn off their transponders after they get out of the Suez Canal,. [00:04:16][18.3]
Stuart Turley: [00:04:18] There are even satellite images of where they’re doing the transfers this is all pretty cool. And then when they go dark and then they come back in, when they have to turn their transponders back on to go through the Suez Canal, they can see that they’re actually lighter in the water. And then how much they have dropped off. [00:04:41][22.4]
Michael Tanner: [00:04:41] Is that how far they sit in the water? It’s pretty crazy. [00:04:43][2.1]
Stuart Turley: [00:04:45] It is Nuts! [00:04:45][0.0]
Michael Tanner: [00:04:45] Tanker trackers dot com. They do an an unbelievable job. [00:04:48][2.9]
Stuart Turley: [00:04:48] And and so when you sit back and kind of look there if you look at the gallery in here there’s more dead whales and turtles and so not you know the environment is just if the dark fleet was done right, it wouldn’t be an old nasty fleet. Oh, that’s like the Jones Act you talked about yesterday. [00:05:07][18.4]
Michael Tanner: [00:05:08] Oh,. [00:05:08][0.0]
Stuart Turley: [00:05:09] Oh, oh, the U.S.. This is in the same thing with the Dark Fleet now, we just started talking about that. Michael said, This article is pretty amazing and our producer, if it’s easy for you to slide in that map in here, yay! If not, go to the website it’ll be in the show notes as well. [00:05:28][19.1]
Michael Tanner: [00:05:29] Yeah, I mean, it it confirms as much as I joke about the Dark Fleet, it’s true. I mean, it’s happening. I mean, it’s it’s now clearly shown that it’s happening. And again is it comes back to the to an old phrase sanctions don’t work so now. [00:05:43][14.1]
Stuart Turley: [00:05:43] And I believe it is oil will find a way was that Jeff Goldblum and yeah. [00:05:50][6.2]
Michael Tanner: [00:05:53] You’re absolutely right what’s next? [00:05:54][1.8]
Stuart Turley: [00:05:55] Okay let’s go to Marathon Oil. Marathon oil keeps growing and providing long term value. I kind of like this one. Marathon Oil Corporation has a sound balance sheet that’s been very free with returning capital to shareholders. We won’t be rid of oil and gas for many decades. And in the meantime, staying invested in companies like Marathon can provide generate good returns. [00:06:23][28.2]
Stuart Turley: [00:06:24] I really like this because they also document the green transition won’t stop demand for the MRO and world liquid fuels by consumption. World consumption is just going up, dude. No matter how much we do in renewables, world consumption is going up. [00:06:45][20.4]
Michael Tanner: [00:06:45] Yeah, I mean,it’s interesting of all the you know, I don’t know who the author of this article was and I don’t necessarily. [00:06:51][6.1]
Stuart Turley: [00:06:53] It was on Alpha. [00:06:53][0.9]
Michael Tanner: [00:06:54] Yeah, I’m sure he’s seeking out a profit and I don’t know if marathon is the place to find it, to be honest with you. I mean, you know, I, I agree with, with the sentiment. And then again, you have to think about what he’s what he’s going for. [00:07:08][13.9]
Michael Tanner: [00:07:08] He’s going for. Marathon is equally exposed you know, the the the idea here is marathon is equally exposed to both oil and gas a.k.a you mentioned in the last paragraph here you know a margin but a return upwards is very plausible as many analysts see return to a $100 per barrel in April of 2024 and he quote Brutus. [00:07:29][20.2]
Michael Tanner: [00:07:29] So that’s where he’s doing is so that’s where he’s getting his research from Reuters Reuters. Fine. And I like Brutus better, though, but I like to finish because my point is, is okay to him. So if that’s the case, I don’t necessarily know if Marathon Oil is the company I want to be invested in if hundred-dollar oil shows up to be honest with you,. [00:07:51][21.7]
Michael Tanner: [00:07:51] Because the real question is not really, I guess, the real question I guess then the other side of the coin from this, this author strategy is, well, they’re also equally exposed to this new market for, you know, this emerging CCUS market, which is they’re they’re shifting towards that. [00:08:08][16.8]
Michael Tanner: [00:08:08] And this this match is in their ability to sort of walk the lie is doing well. I don’t know if I necessarily agree with that a little bit. I I’m I’m going to zag in this case. I don’t necessarily know if I agree with the underlying strategy here. Again, though, don’t take our investment advice. Guys do know everything we say. [00:08:29][20.5]
Stuart Turley: [00:08:29] Nope, but at least we’re a little better than Cramer so if you take Cramer’s advice, go the opposite way. [00:08:36][7.1]
Michael Tanner: [00:08:38] Yeah, we’re the inverse of inverse Cramer. [00:08:40][1.9]
Stuart Turley: [00:08:41] So there’s a double inverse. [00:08:44][2.8]
Michael Tanner: [00:08:44] Nice double inverse you calculate that one backward for me, Stu What’s next? [00:08:49][4.7]
Stuart Turley: [00:08:49] Oh, hey, we’re we’re changing up on this. Let’s go to the next one 209 billion a year. Michael is what fossil fuel firms owe in climate reparations. We want to be paid. This isn’t that like I said, like you introduced it as an opinion piece and it lays bare the truth is out. It lays bare big oil’s plunder of the environment for commercial greed. [00:09:15][25.6]
Stuart Turley: [00:09:16] Academics is now estimating that the top 21 fossil fuel behemoths are liable for an estimated 209 billion annual reparation bill arising from their exploitation BULL HOCKEY As they would say in Texas, this is absolutely a joke. [00:09:38][22.5]
Stuart Turley: [00:09:39] Now here’s why we go through there. There’s several things in here I want to read the last paragraph and then I’m going to give you my opinion, which is in the Bull Hockey Friend of mind. [00:09:49][10.4]
Stuart Turley: [00:09:50] According to the Climate Accountability Institute the global fossil fuel industry could be responsible for 23 trillion in lost global GDP from climate impact cumulatively by 2050. But. Caribbean governments could also help themselves by imposing a reparation tax on major global oil and gas and coal investors operating in these territories. It can be done and it must be done failing to make polluters and the spoilers pay their dues would be a historic moral failure. [00:10:32][42.1]
Michael Tanner: [00:10:33] If this sounds exactly like something you would write, So I. [00:10:37][4.6]
Stuart Turley: [00:10:38] Didn’t write it. I thought it was funny why would I? I wouldn’t mind. [00:10:41][3.5]
Michael Tanner: [00:10:42] I’m kidding. I’m absolutely kidding. I mean, this is I mean, this was written by a PR agency. I mean, that first sentence that you read. Big Oil’s plunder of the environment for commercial greed mean. Okay. That’s one way to look at providing energy to the world. [00:10:58][16.2]
Stuart Turley: [00:10:59] Let me go to AI and I’m going to type this in I bet I came up with this. [00:11:02][3.8]
Michael Tanner: [00:11:03] This Is AI? Might be, it might be, but she’s writing everything with AI. I mean, clearly this is a joke. I mean, they also talk, you know, the 23 trillion in lost GDP. I mean, I’m going to have to check. I don’t I’m going to check the numbers on that one. I don’t know if they I don’t know. [00:11:21][18.0]
Stuart Turley: [00:11:21] Okay. Let me let me get my crayon in a square. [00:11:24][2.7]
Michael Tanner: [00:11:24] Yeah. Yes Exactly! [00:11:25][1.0]
Stuart Turley: [00:11:27] And let me let me. You will not have without coal, natural gas, oil and economy food. We’d be cavemen sitting by the fire, hitting women in the head with a rock, dragging them in like cavemen normally did. And we would still be running around going, Ooh, it doesn’t happen without oil and natural gas. [00:11:51][24.2]
Michael Tanner: [00:11:52] Yeah, Thank goodness we don’t have to see Stu in a one piece. [00:11:55][3.1]
Stuart Turley: [00:11:57] One case. [00:11:57][0.3]
Michael Tanner: [00:11:58] Yeah. It’s like, thank goodness thank goodness we’ve progressed. We don’t have to see Stu in a onesie. What’s next? [00:12:03][5.3]
Stuart Turley: [00:12:04] Let’s go to the next one. You can see the theme that we’re having with the show today. Michael Exxon crushes progressive dreams that Net zero has any chance. By 2050, it could mean the collapse in global standard of living kind of was what we just went along with on that last conversation it. [00:12:24][20.9]
Stuart Turley: [00:12:25] But this one has a interesting chart on it, Michael and if the producer Andy he can slide this one in, if not no biggie, Go to the website and you will share global CO2 emissions. Michael Look at that it’s the European Union. In 1750, they were 100% everything that was coal peat that was burning your neighbors, you know, that was Monty Python and the Holy Grail bringing out. [00:12:54][29.1]
Michael Tanner: [00:12:54] Well, one of my favorite. [00:12:55][0.9]
Stuart Turley: [00:12:56] Yeah, well, we saved the wind. Saved them twice, saving twice in the 1800s the U.S. popped in, but the China didn’t pop in until 1900. But look what’s happened in China since 2019 3050 they took off and went Nuts! China is making up for lost time and we’re going down. So this is the tell tale graphic here. [00:13:26][29.9]
Stuart Turley: [00:13:26] Let me go into this next one. In a world of suffocating snowflake re ESG hypocrisy and well Tran Houser Bush and that corporate covering tell the truth without fear of reprisals the open society virtual signaling career MRA injected generally engineered hen’s teeth. I’m sorry, I got a chuckle out of that one I thought it was great. [00:13:59][33.1]
Michael Tanner: [00:14:00] It took me a little bit to figure out what they were saying it absolutely killed me. I love this Exxon says The prospect of the world achieving net zero carbon dioxide emissions by 2050 is remote but should not be further evaluated in its financial statements. Dun dun dun. [00:14:14][14.5]
Stuart Turley: [00:14:15] I like the next line in here Exxon disagreed with a shareholder. Exxon disagreed and said the world is not on a path to achieve net zero emissions in 2050 as limiting energy production to the levels below. Consumer demand would lead to a spike in energy prices. As observed in Europe following oil sanctions against Russia over Ukraine. This is like gold right here this is black gold. I mean. [00:14:45][29.8]
Michael Tanner: [00:14:46] It’s true. [00:14:46][0.5]
Stuart Turley: [00:14:47] You get rid of oil, you get rid of natural gas, and we’re back to clubbing baby seals as cavemen. [00:14:54][6.9]
Michael Tanner: [00:14:55] We got to keep you out of the ones we got to keep Stu out of the one Z. [00:14:59][4.5]
Stuart Turley: [00:15:00] Okay. Well, that’s it for me today and all those stories are on Energy News Beat Hey, I just want to give a shout out to all of our fans out there, the ones that are especially giving us great reviews. Thank you, everybody, and I’ll pay you later. [00:15:13][13.1]
Michael Tanner: [00:15:14] But not too much still where we go. We’re still waiting for that Saudi Aramco money or the Russian money to come in. We’re still there we’re getting paid in rubles over here. [00:15:22][7.8]
Stuart Turley: [00:15:24] Yeah. I mean, once. [00:15:25][1.5]
Michael Tanner: [00:15:26] We comes back on will be good. [00:15:27][1.4]
Stuart Turley: [00:15:28] Oh, there we go. [00:15:28][0.5]
Michael Tanner: [00:15:29] Okay. Oh, good. [00:15:31][2.3]
Stuart Turley: [00:15:32] We’re going to have BRICS sponsors. [00:15:32][0.8]
Michael Tanner: [00:15:34] Yeah, BRICS Plus, Yes, because we’re joined in BRICS or we’re going to use their new digital coin. [00:15:39][5.8]
Stuart Turley: [00:15:40] That’s right. [00:15:40][0.2]
Michael Tanner: [00:15:41] Well, they. Well, hopefully we could use it to buy some oil, guys. Oil trading up to 7221. When we start quoting oil prices in BRICS coins, I’m out we’ll we’ll end the podcast will retire and go home. Trust me. I will I will do that. Right now, they’re priced in dollars 72. [00:15:57][16.4]
Stuart Turley: [00:15:58] I’m going to cut you off right there. Is that going to be like Cher? When Trump won, she said, If Trump Trump wins, I’m moving to California. [00:16:07][8.8]
Michael Tanner: [00:16:08] Stu if I have to if I have to sit here every day and say, Yeah, it’s three oil now trades at 340 bricks, I’m out. Do like I got better things to do than be quoting oil prices in BRICS in BRICS digital coin that when I see something negative about where the price is going, they’re going to cut my access off to go get food. [00:16:28][20.2]
Stuart Turley: [00:16:29] All right. I stand corrected, Cher. [00:16:30][1.4]
Michael Tanner: [00:16:31] Okay. I’ll be right with Cher in Kansas. Just kidding. That’s the last. I would that’s the last place I’m going is Canada. [00:16:37][6.3]
Stuart Turley: [00:16:38] Is live with Cher. [00:16:39][0.6]
Michael Tanner: [00:16:40] So I don’t know. What would you rather do? Move, move, move in with Cher or move to Canada? [00:16:44][4.1]
Stuart Turley: [00:16:45] Neither. [00:16:45][0.0]
Michael Tanner: [00:16:45] Okay. Okay. Well, on that note again, guys. Oil trading up to 7220 saw a little bit of a boost today, mainly because we saw gasoline futures and forecasts for oil demand rise for the second half of the year. We did see that fire get tempered down in Alberta so that’s bringing a little bit of that oil, about 300,000 barrels a day that was offline. [00:17:07][21.8]
Michael Tanner: [00:17:08] Now back on line we’re really glad to see everything calm down we did see that again. The EIA is still warning of a looming oil shortage second half of the year, which is again, part of the reason why we saw that probably one 2% increase today. [00:17:19][11.3]
Michael Tanner: [00:17:20] We did see ai0 another quote out of vitol they’re saying that asia is going to be leading oil demand growth of about 2 billion barrels for the second half of the year, an increase that could potentially again lead to that shortage that the iea is warning about. [00:17:33][12.8]
Michael Tanner: [00:17:33] So all in all, I think a fairly positive day. I think the sentiment is beginning to turn a little bit. And, you know, we’re going to get to 100 barrels by Q3, Q4 better start going. I remember Stu kept telling me last year it’s going go, it’s going to go, it’s going to go or this was two years ago. It’s going to go. It’s going to go and then it never I mean, it eventually goes but usually about 6 to 10 months after people claim it’s going to go. [00:17:54][20.7]
Michael Tanner: [00:17:54] So I do actually think going back to that marathon article we talked about, one thing that guy may have got right is that April 2024, that seemed more plausible to me. Let some of these things shake out, give us basically a whole nother year to get there but only time will tell. [00:18:07][13.3]
Michael Tanner: [00:18:07] Natural gas prices fell off the table a little bit, $2.40 again as the weather goes we just saw a little bit of a warmer on memorial holiday, which is, again, we’re going to temper down our expectations. [00:18:16][9.0]
Michael Tanner: [00:18:18] I think the interesting thing that happened in the oil and gas markets today is we did see a little bit of an M&A, a little small deal by Chevron nothing too crazy. They they pick off PDC Energy, a local Colorado company. We love PDC or love them, I guess they’re now they’re now part of the evil empire. Chevron. [00:18:33][15.5]
Michael Tanner: [00:18:34] Chevron goes ahead and picks them up for $7.6 billion including debt that values them at about $72 a share. Their trade about 60 $69 a share right now that was about a 14% premium. To give you an idea, though, it’s an all stock transaction, which is really interesting. They get about what’s let’s do I am trying to see the I thought it was like 0.46 shares of Chevron. I’m I got to I got to take a look but I mean really throw throw stock deal which I thought was pretty interesting. [00:19:02][28.0]
Michael Tanner: [00:19:03] For PDC. I mean it’s your Chevron spray deal you basically kick off a premium one of the, you know, probably alongside Oxy, probably the only other comp, you know, there’s Oxy, there’s Civitas, there’s PDC, you got those the three companies working right now in Colorado,. [00:19:18][14.4]
Michael Tanner: [00:19:18] Civitas is, you know, the extraction is the is is there’s the leftovers of extraction being run those guy it’s Kim Ridge right there. Kimmage is also a lead investor in PDC was probably looking to offload one of them which is again interesting why they decided to go ahead and go with an all stock. [00:19:34][15.8]
Stuart Turley: [00:19:35] if Chevron is is buying it, they’re not going to need their employees in in Colorado, are they? [00:19:41][6.1]
Michael Tanner: [00:19:42] Well, they’re going to continue to operate the field in mean because you got to Chevron is sneakily the fourth player out there I mean we think about the big three PDC Civitas and Oxy. Chevron is kind of that fourth player out there. They have some very good legacy stuff, very much in eastern Colorado they also have some San Juan Basin stuff,. [00:20:00][17.8]
Michael Tanner: [00:20:01] Probably decent plugging liability. We’ll see if that bit of that didn’t get factored into the equation. I’ll tell you that much. But I, I wonder how many high quality drilling locations that once they did. To say anything about those locations in this press release? [00:20:13][12.4]
Stuart Turley: [00:20:14] Well, yeah, the air guy must have missed that one but then a couple of things. You talked about, some of the high quality drilling locations left that maybe that’s why they’re not drilling and that’s why the rigs came down. I actually listen to what you’re saying, Michael. [00:20:31][16.8]
Michael Tanner: [00:20:31] Yeah, I mean, I mean, you got to remember, PDC has got both Colorado acreage and Permian Basin acreage. They got about 20. They got about 200,000 net acres in DG, which is the Colorado just north up there in well, they are in now in a up there in Ward County and Weld County, excuse me, but they’ve also got about 25,000 acres in the Permian Basin. [00:20:50][19.4]
Michael Tanner: [00:20:51] So you have to remember Chevron is also a big off. You know, they get not only do they get to go into Colorado and basically say, okay, now we’re going to now now we’re going to own this Colorado asset which is contiguous to what we already have going on in Colorado. They also get to pick up 25,000 acres in the Permian. [00:21:05][14.2]
Michael Tanner: [00:21:06] And again, you won’t necessarily we don’t necessarily know the split between, hey, what are they valuing Colorado versus this this Permian based acreage? I mean, I know this that their their Colorado acreage is good and that if your you know, their acreage was good and, you know, if you if you’re producing in Colorado, you could do it cheaply the problem is getting the permitting. [00:21:27][21.9]
Michael Tanner: [00:21:28] The problem is everything up to the wellhead and your fees are pretty high. But people are drilling, People are drilled some pretty interesting wells up there I know that for a fact. They’re doing some I’ve heard they’re doing some they’re doing some new wells that’s the big new thing up there is these basically these laterals that you go out and you curve around and come back. So it’s basically two laterals in one because of the permitting process. Why? [00:21:49][20.9]
Michael Tanner: [00:21:49] if you’re going to permit it, it’s going to take you six months to permit a batch of wells. Why not just turn it into four U-shape? Interesting. Interesting. Yes. Oh, because you’re also dealing with the more of a blanket shale formation up there so you can do things like that. You can do these crazy things that are being done in the Permian right now. [00:22:09][19.4]
Michael Tanner: [00:22:09] So, you know, they they did throw in there, don’t get me wrong, they did throw in there 1 billion Bowie of proven reserves in highly economic locations. So they did make sure to throw that in there and enable capital and operational synergies. You know what that means? Layoffs, baby. [00:22:27][18.0]
Stuart Turley: [00:22:28] Oh, that’s what I was Absol Yes, there’s sorry. PDC Well. [00:22:33][4.6]
Michael Tanner: [00:22:33] I mean, most of PDC will stay by that probably half. It’s probably half. [00:22:38][5.2]
Stuart Turley: [00:22:39] Now. The boots on the ground will stay. [00:22:40][1.1]
Michael Tanner: [00:22:41] Yeah, the boots on the ground will stay, unfortunately or fortunately, I guess. But I mean, it’s a great deal for Chevron. I mean it’s pretty interesting. It’s 4.63 shares. Again, very interesting that PDC would sell out for an all stock deal of basically, you know, 6.3 billion in actual stock transactions or if you include debt, 7.6 billion seems low to me, to be honest with you. [00:23:07][26.3]
Stuart Turley: [00:23:08] I don’t know. [00:23:08][0.7]
Michael Tanner: [00:23:09] I was trying to put in a bid, but I came in a little, came out a little low. [00:23:12][3.1]
Stuart Turley: [00:23:13] Yeah, they didn’t they, they didn’t take my offer 1.95. [00:23:17][3.4]
Michael Tanner: [00:23:17] I sending the I sent in via smoke signals so they didn’t, they didn’t let me know one way or the other. But you got anything else Stu what should people be scared about? [00:23:23][5.9]
Stuart Turley: [00:23:24] The government think that we’re going to have a great day tomorrow just be careful. [00:23:29][4.8]
Michael Tanner: [00:23:30] All right, guys, with that. will let you get out of here get back to work. Appreciate you checking it out for Stuart Turley, I’m Michael Tanner. We’ll see you tomorrow, folks. EnergyNewsBeat.com [00:23:30][0.0]