Daily Energy Standup Episode #181 – Despicable Ambitions: Chinese Bid for Biden’s Name, Climate Targets, and Fossil Fuel Future

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Text messages given to FBI: Chinese wanted Biden family name to help acquire U.S. energy assets – In a word “despicable”

August 5, 2023 Allen Santos

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Video Transcription edited for grammar. We disavow any errors unless they make us look better or smarter.

Michael Tanner: [00:00:07] What is going on. Everybody, Welcome into another edition of the Daily Energy News Beat Stand up here on this gorgeous Monday, August 7th, 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 you doing today? [00:00:29][22.6]

Stuart Turley: [00:00:30] It’s a Beautiful day in the Neighborhood we’re going to have a Fantastic Week! [00:00:33][2.8]

Michael Tanner: [00:00:34] We did, Fantastic Week, had a Great Weekend. Not much really happened this week we’re in the midst of all these Energy Earnings but Stu still, as always, finds a way to load up the menu. First up on the docket, Text Messages given to the FBI: who dun dun, Chinese wanted Biden Family to name to help acquire U.S. Energy Assets, this is a little stu edition, in a word, quote, despicable. So, Stu will dive into the latest hunter biden entanglement. You knew we could pass, but we couldn’t pass up an opportunity to take a shot at Hunter Biden. [00:01:05][31.3]

Michael Tanner: [00:01:07] Next stop, California and New York could miss their 2030 Climate Targets and still bankrupt the Energy Sector. Absolutely unbelievable Stu will dive on what’s going on in our two favorite states. [00:01:20][13.0]

Michael Tanner: [00:01:21] Next up, Russian Economy Projected to grow Despite Western Sanctions in the words of sue, Sanctions Don’t Work. So he will cover what’s going on in the latest in the war in Ukraine. Next up, California High Court Says Country can’t enforce Oil well ban as state debates future of fossil fuels. [00:01:37][16.3]

Michael Tanner: [00:01:38] We’ll have to make sure we show the picture when we get to that segment Stu It’s a pretty great image of an oil well in the middle of a community space. But Stu again we’ll look back at what’s going on into quite possibly our favorite state and favorite government leadership there in California, he’ll toss it over to me. [00:01:53][14.5]

Michael Tanner: [00:01:53] I’ll quickly cover what’s going on in the oil and gas markets really what we’ve got today is oil prices back above 82. Last time we chatted, they were they were down at 79 so good to see them rise up. I’ll kind of cover Stu and I will break into what maybe that forecast look like. [00:02:08][14.9]

Michael Tanner: [00:02:08] Natural gas still hanging out, $2.57 but we will then quickly cover some earnings, EOG, and ConocoPhillips so we’ve got two big dogs dropping. There’s some other smaller ones out there, but I think it’s important to cover what the big guys are doing is they’re really setting those long term trends and then we’ll riff on what you should be scared about for the week and let you get on out of here and start your week. [00:02:28][20.5]

Michael Tanner: [00:02:29] But before all of that guys, as always, the stories we’re about to cover are courtesy the world’s greatest website www.EnergyNewsBeat.com the best place for all of your Energy News. Stuart does a great job of curating that website make sure it stays up to speed with all of your Energy and Oil and Gas News. [00:02:46][16.7]

Michael Tanner: [00:02:46] Dashboard.EnergyNewsBeat.com the best place for all of your Data and News Combo. Hard at work at V2. Hit us up Questions@EnergyNewsBeat.com if you’d like to sponsor the show, email us Questions@EnergyNewsBeat.com or fill out the description below we’d love to have you part of the show I mean, it’s pretty incredible some of the things we’re doing. [00:03:05][19.0]

Michael Tanner: [00:03:05] So again, Questions@EnergyNewsBeat.com look at the description below for everything you need to stay in contact with the show. Alright are we starting with Hunter Biden’s Stu? Is that we’re we have to begin?. [00:03:17][11.6]

Stuart Turley: [00:03:17] This is so despicable okay, here we go. Text messages given to the FBI: Chinese wanted Biden family to help acquire U.S. Energy Assets in a word, Despicable. Now, this also was he was going to help get European in assets in the EU. So this is not just relegated to the U.S this is a worldwide issue. I want to know how long the FBI sat on this. That to me. [00:03:56][39.4]

Michael Tanner: [00:03:57] Okay, Well, let give me what happened here, because I have read this gimme gimme an up to what actually what they what they discover? These text messages, I guess? [00:04:04][7.0]

Stuart Turley: [00:04:05] Oh, yes and it was business dealings where on there’s also a tweet that I embedded in here from Fox News going through it in March of 2016, Walker emailed a Hunter Biden and it said to Joe, You want to sign it? Do you want to go ahead and go through it and then go through the deals? Let’s go through it. [00:04:26][21.4]

Stuart Turley: [00:04:27] There will be a deal between one of the most prominent families from the U.S. and China constructed by me, Hunter Biden’s business partner, James Gilliard, texted future partner Tony Bobulinski on Christmas Eve 2015, shortly after Hunter Biden had been alerted to this CEFC China Energy’s overture and its wealthy leader Ye JianmingLang, Boy, I butchered that name and so. [00:04:59][32.4]

Michael Tanner: [00:05:00] Good thing we’re not airing in China. [00:05:02][1.1]

Stuart Turley: [00:05:02] Oh, no. [00:05:03][0.4]

Michael Tanner: [00:05:03] So we’re going. [00:05:04][0.5]

Stuart Turley: [00:05:04] Remember a couple of years ago when the Chinese reached out to us because we knew all the things on those tanker embargoes and everything else? We were they were on interview us. [00:05:13][8.9]

Michael Tanner: [00:05:14] Okay. Now we can’t get past the great filter long live the CCP! [00:05:17][3.2]

Stuart Turley: [00:05:18] Right, You got to love them. But anyway, we got a PDF in here from Bobulinski, We have a dinner with a redacted PDF from that dinner and he and then we have Hunter Biden’s quotes in here. All this is not some random guy on a stack. By the summer of 2017. Hunter had met directly with Ye in Miami and sent a letter consummating plans to raise up $500 million to purchase assets in target country the EU, Europe, England. I mean, he’s helping China rule the world. [00:06:07][48.7]

Michael Tanner: [00:06:09] Yeah. I mean, it’s it’s very clear. [00:06:11][1.7]

Stuart Turley: [00:06:13] And this is I put everything in this article that I could find everywhere else from Fox News and all the other sources I used no random dude on substack for your benefit. [00:06:27][14.2]

Michael Tanner: [00:06:30] Good, Good, Good, Here’s the deal there’s clearly some nefarious stuff going on with Hunter Biden. I don’t want to weigh in on that all I want to know is the Chinese only do things that are in China’s best interest. [00:06:44][14.3]

Stuart Turley: [00:06:45] That is correct. [00:06:45][0.3]

Michael Tanner: [00:06:45] And they are one of the best countries in the world at looking at the second, third, fourth order effects and thinking long term. They were ahead on the minerals 15 years ago before anybody cared about it. They were first Energy Security along with that minerals years before everyone saw that there was this Energy Crisis. [00:07:04][19.3]

Michael Tanner: [00:07:05] Now what you want obviously we’re no fans of the CCP over here. I don’t think I’m not getting ready to move to Beijing any time soon don’t give me, you know, not showing up to Foxcon in a couple of weeks and going to go. Butt they do look out for themselves, which is something that we could do a better job of here. Clearly, there’s some nefarious stuff going on here with I mean, it’s obvious. [00:07:28][23.4]

Stuart Turley: [00:07:30] Second order of magnitude. And I love the way you phrased that. The other article that is goes with that that we ran on this Biden Energy Secretary, called the Chinese official before US, tapped oil reserves. You and I have both covered the SPR Magnitude of unbelievable. It is, I think 50% now, whatever the number is, 40 to 60, somewhere in there. [00:07:59][29.5]

Stuart Turley: [00:08:00] They’ve taken it down to the lowest volume in 40 years they sold it in an average price was $25 out of the SPR and Granholm called China National Energy Administration Chairman Zhang, Jianhua for a half an hour conversation on November 21 and November schedules obtained by the watchdog group Americans for Public Trust Show. [00:08:31][31.2]

Stuart Turley: [00:08:32] Two days later, she announced more, saying the UN releases from the SPR. And then it came out that the only reason that they did the SPR releases was for the mid coms. You gotta be kidding me we are now, if China goes to war and goes in to Taiwan. [00:08:56][24.1]

Michael Tanner: [00:08:57] Taiwan. [00:08:57][0.0]

Stuart Turley: [00:08:58] We’re we’re Scooby Doo would be like we have nothing in reserve for our military. And, and then they said last week, last week, Michael, they said that they can’t buy anything Back in three months ago I said that they could not buy anything else because they have no money they spent the profit. They spent the profit, they sold it they had it in there at 25 they took the profits and they sold it from around $65 to $75, about $10 below market price to the. [00:09:38][40.7]

Michael Tanner: [00:09:40] Chinese. No, it’s criminal that the Chinese got our SPR. It’s. It’s. It’s almost as criminal is what California and New York are doing our two favorite states. What’s this next one about? [00:09:50][10.6]

Stuart Turley: [00:09:51] Let’s go to California and New York. [00:09:52][1.2]

Michael Tanner: [00:09:53] Hell of a transition. [00:09:53][0.3]

Stuart Turley: [00:09:54] Oh, yeah, it is. It’s a nice, smooth one and I love the way you did that and we were down with that article for now. So, California, I have no idea why this just happened let me get back to it. California and New York could miss their 2030 climates and still bankrupt the energy sector. This is really important from the standpoint that emissions and net zero are going to happen because of Michael. Natural gas the EIA, my beloved government has already said that. [00:10:36][42.5]

Stuart Turley: [00:10:37] California and New York two national leaders in the effort to curb global warming could miss Key 2030 climates, according to the state officials. It’s a sign that even the states most aggressively pursuing the plans to reduce Carbon Emissions and ramp up clean energy, development are struggling to meet tough demands. You know why? [00:11:00][23.2]

Michael Tanner: [00:11:01] Why? [00:11:01][0.0]

Stuart Turley: [00:11:02] It doesn’t work. I am serious. I have been pleading for folks and Margaret and her husband George, I asked for folks to give me stats on Wind Farms and Solar Farms. And George has absolutely stepped up and gave me some really good numbers on the profitability of Wind Farms and I’m going to go through it with him because we don’t want to release anything without his permission. [00:11:35][32.6]

Stuart Turley: [00:11:36] I’m only Michael, you’ve heard me say this I’ve only found eight years that the Wind Farm is profitable due to Tax Subsidies. This number in here, California officials increased that emissions reduction and reduction target, though not legally to 48% last year. New York also mandates that 70% of its electricity come from renewable sources by that year, with California requiring 60%. Michael. Texas passed California, Energy per kilowatt hour in Texas is one I think of California. You know why? [00:12:21][44.9]

Michael Tanner: [00:12:22] Why? [00:12:22][0.0]

Stuart Turley: [00:12:23] We use all forms of energy in Texas. I am proud of Texas. I mean, I love me from Texas. [00:12:31][7.7]

Michael Tanner: [00:12:32] Oh, it’s true. I mean, to think about Texas has like 30% of its energy come from Wind and Solar. [00:12:38][5.9]

Stuart Turley: [00:12:39] It’s because we use all forms of energy and California imports 70% from Ecuador on the rainforest, from China there’s some energy hypocrisy. There was another article that came up that Ecuador is finally fighting back they’re finally getting some bows and arrows to stand up to the CCP. So it’s pretty interesting. Now, California is going to squeak but anyway. [00:13:10][30.8]

Michael Tanner: [00:13:11] You read into this article, which is by the Sacramento Bee, and it seems to all come down to this debate between the cap and trade program that, you know, you have on one side, you have the economists who all stand beside saying, hey, you know, this is this is the program that we need to embrace. We need to embrace one level of emissions hand out permits accordingly and allow the free market to trade them. [00:13:34][22.6]

Michael Tanner: [00:13:34] You have the Environmental Justice Crew talking about, well, that number is too high well, we don’t need to we don’t need to encourage pollution. We do encourage no pollution in every policy that we create should be designed towards curbing pollution, not necessarily allowing this shift in pollution. [00:13:51][17.6]

Michael Tanner: [00:13:52] You know, the argument against cap and trade is that, one, companies will learn how to game the system. That’s true. When there’s ever a market, people attempt to game the system and to the most vulnerable communities are going to end up still having the pollution because the the is it, you know, the more expensive and wealthy communities are going to be able to afford to buy and enforced and companies with permits are going to continue to flock to those places where more permits to be so I, I see the arguments there. [00:14:20][27.8]

Michael Tanner: [00:14:20] The problem is what what the environmental what the Air Board is pointing out is that we’re not going to be able to get there at the current technology rate. There has to be a huge increase in technology and a huge increase in the amount of permits being approved that’s the other thing that the environmental justice community is solely against permitting reform which is I’m all for permitting reform. [00:14:43][22.7]

Michael Tanner: [00:14:43] Let oil and gas go quicker let wind go quicker? I don’t because if we have competition in a free market, the best and most least expensive product wins. And as we always say, it’s all about the lowest kilowatt per hour. Who cares where it comes from? [00:14:57][13.9]

Stuart Turley: [00:14:58] I don’t care. In the end, the least impact on the environment and the least impact on Whales and Eagles. I know that you throw up every time I say that but, you know, the other part of this is I’m visiting with Larry Glover from the Glover Group, and he is talking about Energy in Equity and Diversity and you nailed it that the poorer communities are getting it in the drive through and that wipes me out. [00:15:30][31.9]

Michael Tanner: [00:15:31] It’s the it’s the one downside even as someone who would prefer a cap and trade, how do you set rules? [00:15:36][5.3]

Stuart Turley: [00:15:37] Right. [00:15:37][0.0]

Michael Tanner: [00:15:38] Fairly monitor it’s like the SEC people don’t believe that the SEC fairly monitors the stock market. They try they do a good job do they do a great job? No, they don’t. So we’d be the same issue with cap and trade. [00:15:51][13.1]

Stuart Turley: [00:15:52] Well, the other thing is when you sit back and take a look at where all this is going. The permitting reform you mentioned is critical 8000 renewable projects before 2020 were being held up by permitting. Now we’re at 18000 to 20000 Wind farms, Solar farms from being connected to the grid. There’s sitting there going, Well, I guess we’re going to kill a few Whales and Eagles until we get connected to the grid. I don’t know. [00:16:32][39.9]

Michael Tanner: [00:16:33] So down with the Whales. Let’s stay in California Stu it looks like they’re doing something with Oil Well Ban. [00:16:38][5.3]

Stuart Turley: [00:16:39] Yeah, it just Chevron. Let me get over to that story here. Chevron has been fighting this one, Michael, for seven years. Chevron is pleased that this decision brings an end to seven years of litigation and appeals, said Jeffrey Denture, a lawyer for representing Chevron in a statement. [00:17:04][24.9]

Stuart Turley: [00:17:05] In 2022 Central Coast, Monterey County was the third largest oil producer in the state, producing 5.1 million barrels annually, according to the state’s Department of Conservation. That’s compared to 88 million produced in Kern County, which we know a lot of the folks over there in Kern County Central Valley and slightly behind Los Angeles County. [00:17:29][24.8]

Michael Tanner: [00:17:30] And so to be clear, this was in response to passing ballot measure Initiative Z, which set to basically a voter approved ban on new oil and gas wells, which basically So now basically they’ve returned it back to the state and counties. [00:17:47][16.9]

Michael Tanner: [00:17:48] It’s the same thing happen in Colorado. Boulder County sued for the ability to say, yeah, we don’t want oil and gas in our county. The state stepped in and said, no, no, no, no, no. Like the decapitate and tumble. No, no, no, no, no. [00:17:59][11.4]

Stuart Turley: [00:18:02] But the important thing, it. No, no, no, no, no that was almost like my mom. You know, you will not stay out past midnight. So the the rules that Colorado put in, you and I are very well aware. And those rules translated over into all forms of energy. So this could impact the other 17 states that follow anyway, I thought it was pretty interesting. [00:18:31][28.3]

Stuart Turley: [00:18:31] Okay, let’s go to Russia. I love me some Russia stories A. Sanctions don’t work want to give a shout out to Irina Slav they don’t work. Russia’s Economy Projected to Grow Despite Western Sanctions. Michael who gets it hurt the most with Sanctions? [00:18:54][22.3]

Michael Tanner: [00:18:57] The drive that I mean the consumer. [00:18:58][0.8]

Stuart Turley: [00:18:58] The consumer, they get it in the drive through. The International Monetary Fund has said it expects the Russian economy to grow by 1.5% this year, despite U.S. led Sanctions and Campaign against the Country, which President Biden wants that would turn the ruble to rubble he has no idea. [00:19:21][22.2]

Stuart Turley: [00:19:22] In the article, he even talks about Iran. For example, Iranian oil sales in 2022 exceeded those of 2016 before the U.S. withdrew from the nuclear deal in 218 and reimposed the sanctions on the country. Iran, we’ve talked about this Iran figured out how to get around Sanctions and then Putin went a not a bad idea, he knocked that game up. [00:19:52][29.9]

Stuart Turley: [00:19:52] And so the only reason that this GDP is at 1.5% is because he’s selling everything he can to India and China, about $55 a barrel. So he’s selling it less than and that’s because what the market will bear in order for him to sell at rubles and along on. [00:20:16][23.7]

Michael Tanner: [00:20:18] Dollar goes by man It’s. [00:20:20][1.9]

Stuart Turley: [00:20:22] Its taken a bit of a haircut on selling on the Yuan he wants to sell on the Rubles. [00:20:26][3.8]

Michael Tanner: [00:20:27] We had because they’ve got that peg to the gold, right? They’ve still got that peg to gold right now. [00:20:30][3.1]

Stuart Turley: [00:20:31] Yes. And it’s going to go.

has bought more gold than the world combined in the last several years. And gold only goes up, I believe one or 2% per year is why it’s a great standard it’s coming back in fashion. [00:20:47][16.0]

Michael Tanner: [00:20:48] Nope I’m with you. [00:20:49][1.0]

Stuart Turley: [00:20:49] Not Everybody wants to pay for Net Zero. Michael, there is now people are going around the world saying they’re protesting Wind Farms, they’re protesting Solar Farms. And part of it is they’re tired of the U.S. dumping their Solar waste on them. Everyone likes nice sounding policies. Not everyone wants to pay for them. [00:21:20][30.9]

Stuart Turley: [00:21:21] We’re beginning to see that this holds true for the UK strategy to reach net zero as much for any other policy. Focal data survey shows for example, 40% of the people say they would not accept any increase to my cost of living whoops, same as roughly the same number of those it would not pay more to reduce crime or improve education. People are stretched around the world people are stretched thin because of the energy increase around the world. [00:21:57][36.3]

Michael Tanner: [00:22:00] Yeah. I mean, again, it all comes down to the fact that Russia. They knew, you know, they were able to set this up and they were able to they thought to move ahead we didn’t. That’s all it comes down because they had you they had you running the. You pull the strings. [00:22:18][18.2]

Stuart Turley: [00:22:19] Yep. I hear. Yeah. Yeah. The only thing that [00:22:24][5.0]

Michael Tanner: [00:22:25] He just admitted it Folks. [00:22:25][0.1]

Stuart Turley: [00:22:26] The only thing I got going for me is my really lousy Putin imitation a cross between the Sopranos. [00:22:33][7.8]

[00:22:35] Chris Cuomo and the Sopranos. [00:22:37][1.7]

Stuart Turley: [00:22:37] Hey, hey. Fonzie in The Sopranos turns into Putin. Nice. Okay, so rock on. Here’s where it gets really interesting in the U.K., that Survey also showed that 30% of the people in the U.K. think that the threat of climate change is overexaggerated. [00:22:58][20.5]

Michael Tanner: [00:23:00] Why? [00:23:00][0.0]

Stuart Turley: [00:23:00] A world awakening saying, hey, wait a minute. Uh, old thump fey old oh, what’s his face that has a skin as tight as a drum and you could dump a quarter on it. Oh, Kerry. Kerry. You know, you go up and thump a quarter on Kerry and it’ll bounce off like a drum. [00:23:22][21.4]

Stuart Turley: [00:23:23] He is made more money by the Climate Fear. None of the Climate Fear has gone on has been accurate. So people are tired of it. Hey, I’m all about the environment let’s protect the environment and they can’t talk about it. So anyway, I’m pretty well down. I’m exhausted flying around the world dude. [00:23:47][24.0]

Michael Tanner: [00:23:48] Yeah. No, we’ll land back in the U.S. cover what’s going on with oil prices, guys we’re up to 82, 64 here as we record this mid afternoon here on Sunday, August 6. Markets expect to open up somewhere about 88, 80 to 82 excuse me so we’ll see about a 20% pop. [00:24:06][17.9]

Michael Tanner: [00:24:07] I mean really when all of the stuff we’ve been talking about, what we see is a supply shortage what we see is global economy sort of slowing down a little bit to the point or speeding up to the point where demand is continued to roar back. [00:24:20][12.2]

Michael Tanner: [00:24:20] We’re now in what is sort of a fundamentals coming back to power a little bit there’s still that toggle, you know, that that, you know, what do I call it the dichotomy between what we saw happen on Wednesday where EIA came out and dropped a 17 million barrel draw, yet we saw price yet we saw prices fall through the ground from about 82 to 79. We’ve seen them rise back to 82 again off that supply demand center. [00:24:46][25.6]

Michael Tanner: [00:24:46] So I think as we look at what we see this week coming up Stu I see a shift back hopefully to fundamentals. And I think that’s where in the next 3 to 6 months I see oil prices as they continue to rise it’s a back to fundamentals away from really that algorithmic trading that we’ve saw sort of really hamper prices right now. [00:25:06][20.2]

Michael Tanner: [00:25:07] But again, I caveat that by saying, you know, who knows where the sentiment lies? But I feel like the price action we’ve seen lately really, really points to a bringing back in a focus on fundamentals where I think in the last three months it’s been much more of an extraneous a fundamentals necessarily mattered as much. [00:25:24][17.4]

Stuart Turley: [00:25:26] Before you go on Saudi and Russia with OPEC and OPEC plus are really talking about and this next one, continuing reductions. How that’s going to play in. [00:25:39][12.8]

Michael Tanner: [00:25:39] Yeah, I mean, MBS came out and said they’ll cut theyll keep cutting as long as they need and that’s going to keep supporting prices, which is only going to help Oil and Ggas companies in the United States as we move forward. I want to touch on two quick earnings before we go ahead and get out of here. [00:25:53][14.3]

Michael Tanner: [00:25:54] The first one is EOG, probably one of the largest independent players out there they had a pretty great quarter relative to their realized pricing being done about 440, their realized pricing down 40%, still only or still earning 1.5 billion of adjusted net income. [00:26:10][16.9]

Michael Tanner: [00:26:11] To give you guys an idea in quarter three of 2022 where we saw oil prices around $100 7.5 billion of total revenue quarter two 2023, still 5.5 to enjoy a $2 billion drop off, about a 40% drop in oil prices that gives you guys an idea of the strength of that balance sheet right there. GNA costs drop a little bit to kind of give you some highlights here 1 billion of straight free cash flow Quarterly dividend was declared at about $0.82 they did about 300 million share repurchase program. [00:26:41][30.6]

Michael Tanner: [00:26:43] All of their production was above their guidance midpoints. CapEx expenditures were all also below midpoint guidance. So production up, CapEx expenditures down, that’s how you go ahead and maintain a nice adjusted earnings amount. [00:26:55][12.1]

Michael Tanner: [00:26:55] I just like to look at EOG because they’re probably one of the best managed companies out there, extremely cutthroat, but they do a lot of things to support their balance sheet 12% debt reduction that leads to about a 40% debt reduction year over year [00:27:07][12.2]

Stuart Turley: [00:27:08] Nice. [00:27:08][0.0]

Michael Tanner: [00:27:09] Got to love that and I’m just trying to scroll through here and see what else is there. You’re also seeing TV guys in idea, you know, per well, cost decreased mainly blue and I always find this interesting they mentioned well cost decrease primarily due to decreased work over and fewer related expenses, while obviously fewer related expenses with with the price of Oil and Gas tumbling, you’re going to save a little bit money on diesel and second workovers. [00:27:36][27.6]

Michael Tanner: [00:27:37] Interesting what does that mean, workovers are getting cheaper or are they just not doing workovers? Interesting. I mean, maybe they’re in a mode of selling off well, I mean, what happens Stu there’s for a workover you either plug a well, add it to your plugging liability, you temporarily abandon it, you work it over to bring it back for production or you sell it. [00:27:53][16.4]

Michael Tanner: [00:27:54] And maybe they’re in the process and we do know that EOG is in a process of and everybody is trimming the fat. So that’s just a shift of the P and A liability to somebody else. Think about it. You have to have when when. [00:28:05][11.3]

Stuart Turley: [00:28:07] Exxon has announced that they’re going to go back in and do a lot more of increasing production in the Permian. And I’m not sure how that does with EOG, but they go, Huh? [00:28:19][12.1]

Michael Tanner: [00:28:20] Texicon?. [00:28:20][0.0]

Stuart Turley: [00:28:21] Exxon. [00:28:21][0.0]

Michael Tanner: [00:28:22] Okay, That’s why I say Texaco. 1996 Stu?. [00:28:25][3.2]

Stuart Turley: [00:28:26] Yeah, well, you know, hey, I’m a time traveler. [00:28:28][2.6]

Michael Tanner: [00:28:29] When you hold that. [00:28:30][0.6]

Stuart Turley: [00:28:31] Oh, Nice! My young millennial. [00:28:34][2.4]

Michael Tanner: [00:28:35] Just getting but so I said, I think we say all that to say very interesting to see them point out decreased workover costs what that means, who knows. Again, I think the other company that’s interesting to follow on on earnings ConocoPhillips they deliver record lower 48 production 1.8 million BOE per day. Woo woo. [00:28:55][20.0]

Michael Tanner: [00:28:57] They go ahead and complete their equity acquisition in the Qatar Northfield LNG facility signed a 20 year offtake agreement over there off the west coast of Mexico for about 2.2 million tons annually, subject to the Mexico Pacific, reaching some sort of a final investment decision 3.9 billion cash generated by operating activities distributed at 2.7 to shareholders, including 1.4 billion through an ordinary dividend and also a variable cash dividend of 1.3 and some share repurchases 7.1 billion cash on hand. [00:29:32][35.5]

Michael Tanner: [00:29:33] I mean, again, primary oil, you know, as a ConocoPhillips probably being one of the strongest lower 48 onshore producers after that acquisition of Concho continue to just shrug along. You know, and again, as you pointed out, Stu, what I get from this earnings report is really our value, the value that ConocoPhillips seeing is value within their own assets. You’re seeing very little M&A action from them in you’re seeing exactly what they talk about. [00:30:01][28.1]

Michael Tanner: [00:30:01] They specifically mentioned, you know, again, they mentioned lower bogey pricing, 57,63 was their average during this period, 30% lower than the 80 to 70. They saw the first six months of 2022, but they did see production increase of 78 million BOE year over year. [00:30:18][16.5]

Michael Tanner: [00:30:18] Again, that’s not necessarily from acquisitions, that’s from a combination of capital expenditures, both on new drilling, at new drilling, but also what you would call that was rework opportunities. I mean, I think that’s the theme as we sort of wind down Oil and Gas earnings Stu really the theme has been lower CapEx, Increased Production. How do you do that? Reworks per not. [00:30:40][22.0]

Michael Tanner: [00:30:40] Yeah, there’s a lot of things that companies are you the M&A has been a little bit dry up until this point yet everybody’s increasing Production How? Well they’re spending money on themselves and I think you know it’s one of the reasons Harold Hamm got back into specifically owning and taking Continental private one. He loves that he he most people go on Fox News and say whatever he wants but number two he wants to be able to drill, baby, drill. Drill, baby, drill. So love to see it. [00:31:12][31.8]

Stuart Turley: [00:31:14] Also has downstream there’s also affected downstream they were they missed their mark this earnings call as well, too. So it’s not just upstream. [00:31:24][10.4]

Michael Tanner: [00:31:25] It’s not just upstream. So Alright Stu. That’s all I have. What should people be scared about this week? [00:31:30][4.7]

Stuart Turley: [00:31:32] I’m looking forward to getting Harold Scheduled. I’ve also got several others that are out there that are being scheduling, getting released we got some nice guests coming around the corner. [00:31:43][10.5]

Michael Tanner: [00:31:43] If you can get Harold Hamm on the podcast, Stu I’ll be impressed. [00:31:46][2.5]

Stuart Turley: [00:31:47] Im. working on it talking to his schedule. [00:31:48][1.8]

Michael Tanner: [00:31:50] Talk, talking to the people who will talk to some other people. [00:31:52][2.4]

Stuart Turley: [00:31:52] Yeah, my my people are talking there people. [00:31:54][1.9]

Michael Tanner: [00:31:56] Let them know when my people need to get involved to close the deal. All right, guys well, we appreciate you sticking with us have a great week, guys. We know it’s Monday, picking a lot of meetings coming up stay strong we know how you feel. Hopefully, this gives you a little bit of life throughout the day. We appreciate you joining us out, guys we’ll let you get out of here. Stuart Turley, I’m Michael Tanner. We’ll see you Tomorrow, Folks. [00:31:56][0.0]

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