Daily Energy Standup Episode #262 – New York Crisis, EPA’s Methane Rule, COP28 Controversies, Russia’s LNG Rise, and OPEC+ Cuts Extension

The Biden administration needs help understanding the meaning of “foreign entity of concern” (FEOC) as this term relates to investing billions of taxpayer dollars into bolstering the supply chains for materials critical to electric vehicles […]

US commits to shutting down its coal plants during COP28 – US Consumers Thrown Out With The Bath Water

December 2, 2023 Stu Turley

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

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Michael Tanner: [00:00:13] What is going on, everybody? Welcome to another edition of the Daily Energy News Beat Stand up here on this gorgeous Monday, December 4th, 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 that prepared the show and the director and publisher of the world’s greatest websiteEnergyNewsBeat.com, Stuart Turley, my man, how are we doing today? [00:00:37][23.4]

Stuart Turley: [00:00:37] It’s a beautiful day in the neighborhood up here in Bear Country. [00:00:40][2.5]

Michael Tanner: [00:00:41] And no kidding, You sent me a pretty funny image of your drive yesterday. You are officially in a what is it, a bear corridor. [00:00:48][7.4]

Stuart Turley: [00:00:49] A bear corridor. It’s a six mile swath. And there’s evidently a migration of overpopulation of bears. It’s like official. [00:01:00][10.3]

Michael Tanner: [00:01:01] So you you officially are in bear country. Nonetheless, we have an absolutely banger of an episode not to be disturbed by bear country guys. Absolutely Wild men. You guys. First up, New York’s near zombie apocalypse, our second favorite state behind California. We’ll see what’s going on in New York. Next up, EPA’s final rule for oil and natural gas operations will sharply reduce methane and other harmful pollutions. We can only hope. Next up, DOE redefines for an entity of concern. These confusing regulations just got no help. A really interesting look into how defining what foreign entities can and can’t do as specifically China because they’re so involved with the business. It kind of it puts people on an interesting side. So I’m very excited for you to dive into this one. Next one U.S. Commits to shutting down coal Plants during Cop 28. Quote, US consumers thrown out with the bath water. We can only imagine who wrote that title. That little extra there, baby out with the bath water stew. Next up, another cop. 28 president claims there is, quote, no science behind the calls to phase out fossil fuels. Interesting. This is from our our friends over at the guardian in a mix. May i dare to mention mixed signals going on at cop 28. Interesting. [00:02:14][73.7]

Stuart Turley: [00:02:15] Absolutely. I would have loved to have been there the way. [00:02:18][3.4]

Michael Tanner: [00:02:19] We were trying to get you there. And then our final two stories. Russia about to become one of the world’s biggest LNG producers. That’s according to their state run Gazprom. And then finally, the story that’s sort of kind of been hanging over the oil markets. OPEC Plus does decide to extend oil output cuts. But as Stu’s got a funny word for what those cuts are. So I’ll save that for for his. He’ll then toss it over to me. I’ll quickly cover what happened in the oil and gas markets. Rig counts up a little bit and then we did have a not an actual M&A deal, but a rumored M&A deal that made it all the way to The Wall Street Journal. Occidental Jet visits Warren Buffett’s hometown amid potential $10 billion shale deal with Crown Rock or Crown. Quest For those who are more familiar. So we’ll open a little bit on that and then I’ll let you guys get on out here and start your week. But before we do all that, guys, remember all the news and analysis you are about to hear is brought to you by the world’s greatest website. www.Energynewsbeat.com. The best place for all of your energy news doing the team do a great job of curating that site to make sure you are at the tip of the spear. When it comes to the energy business. You can email the show questions@energynewsbeat.com hit up Stu and on LinkedIn you can hit the description below, see all the links to the articles timestamps. You can jump ahead, learn about what you know, the shutting down these coal plants or jump ahead to fear about these opec+ cuts. Visit the show notes guys. You can also hit the link down there Dashboard.Energynewsbeat.com It’s our kind of data news combo product that we’re really kind of pushing hard in Q1 2020 for sure to try to talk to all the stuff up guys, because the year is not over yet, but we’re still here already and stuff up for 2024. We’re available all podcast platforms, Apple Podcasts, Spotify could also check us out on YouTube at Energy News Beat. I’m at a bet. Those two. Where do you want to begin? [00:03:59][100.6]

Stuart Turley: [00:04:00] Okay, let’s start with our buddies up in New York, New York’s near zombie apocalypse. You know, I always love me a good zombie apocalypse movie. Okay. Imagine if half in New York City lost eat for months. It was not a plot of a new zombie apocalypse movie. What, The Walking Dead or something? It almost occurred last year and it’s because of the grid, the f, e, R, C, or the Federal Energy Regulatory Commission and the North American Electric Reliability Corporation published a 168 page review of electricity and natural gas problems during the winter storm. Elliott Last December, it was the fifth time in 11 years that power plants failed due to coal cold weather. Okay, here’s a quote in here. It is especially disheartening that it happened in the Eastern Interconnection, which is normally has ample generation and transmission ties to other grid operators that allow them to import and export power. The report notes that problems cascaded through the eastern end. Dependency energy systems, which nearly caused New York City’s gas distribution to collapse. Holy smokes, Batman. New York City. The governor up there, Holcomb, has announced two things. A, she’s going to 100% renewables. B, they’ve we’ve covered this before on the podcast. 20% increase on gas, on energy. Another 20% in in by five more years. 100%. She has no clue about physics. So anyway. [00:05:48][108.3]

Michael Tanner: [00:05:49] In this end, this report goes on to state that the New York City utility, the big utility provider out there, Con Edison, given the location of their interstate pipelines, was disproportionately impacted by deteriorating pipeline conditions. So not only even if they’ve got the gas, the pipelines are deteriorating and no one wants to build any new pipelines. We know how hard those are to get. So they’re really shooting themselves in the foot up there. [00:06:14][24.7]

Stuart Turley: [00:06:14] Oh, yeah. And then Governor Cuomo, Andrew Cuomo allowing he banned fracking in the state, which is really stupid because you got the Appalachia right down the road there in the Marcellus. One eight hour drive, which is a short pipeline for natural gas. And they could have had all the gas they want and all the power they wanted. Anyway, let’s go to the next story, Michael. This one next one is the EPA’s final rule for oil and natural gas operations will sharply reduce methane and other harmful pollution from the United States Environmental Protection Agency, the EPA. What a bunch of chatter heads. This was released at 3 a.m. Friday night or Saturday morning. It is absolutely abysmal. I have I spent hours going through this thing and it is disgusting. From the ESG university on Substack, one of our favorite substack guys that I like. Random dude on substack. They went into it a little bit more. 3 a.m. rollout was timed to coincide with the ongoing Cop 28. This is absolutely despicable. Here’s a quote in here. The Biden administration war on oil and gas has created another round of regulations that directs the marketplace to shut down American energy protection. The crude line founder, Jason’s Buy said it is very unfortunate that political and energy leadership do not take Biden’s war on oil and gas more seriously. It is it is overstepping their bounds. Michael, down here further on. You can see that the the are the the whole thing is based off of the Clean Air Act and they have just blown it up. It’s going to go even further. Will sharply they they say it will sharply reduce methane. But what they’re going to do is any oil and gas firm and anybody. Here’s where it is. The final rule. Rule leverage is the latest cost effective, innovative technologies and proven solutions on an estimated 58 million tons of methane emissions from 2024 and 2030, a 1.5 billion metric tons of carbon dioxide. Okay. They’re going to have to spend gigantic bucks. Okay. I’m all about fixing a lot of this stuff, but they’re imposing regulations that the market would do anyway. When you take a look at layering the great oil and gas empire, operators in Texas got rid of flaring. And, you know, if you let the market do it, these companies are interested in doing this. ESG investing is failing. Why? Because BlackRock says they’re going to start investing in oil and gas. And then also Bill Gates came out and said, oh, climate change is a joke. So now you have these the U.S. is doubling down and tripling down on stupid in order to increase the price of natural gas. Unbelievable. [00:09:29][195.0]

Michael Tanner: [00:09:30] Yeah. I mean, here’s the thing. It. What they do is they just say we’re going to do stuff to reduce climate and reduce these volatile. What I find is it’s really hard to actually figure out exactly what they’re doing. I mean, have you been there? You know, and this is what I think every listener would want to know. What exactly did the say? They’re going to reduce methane emissions? How what are they actually going to do? [00:09:51][21.4]

Stuart Turley: [00:09:52] In this past, after I spent 2 or 3 hours going through it. It is a mind numbing experience, and I’m glad I’ve got in here that I’m going to be writing some updates to it. What the problem Michael is going to be is that they are requiring carbon capture. They’re requiring detection systems. They’re requiring enhancements to the Clean Air Act, which have already been proven that it’s beyond the scope of the Environmental Protection Agency. They’ve already crossed the line. [00:10:30][38.4]

Michael Tanner: [00:10:31] So here’s the first one. So here we go. One, This rule provides a two year phase in period for eliminating routine flaring of natural gas that is emitted from new oil wells. I’ll tell you what. I’ll tell you what, Who loves this? Every Bitcoin mining company loves this rule. [00:10:45][14.4]

Stuart Turley: [00:10:46] Absolutely. [00:10:46][0.0]

Michael Tanner: [00:10:47] Every Bitcoin mining company loves it. And you know what? I’m not necessarily against that. You know how much energy we’ve wasted in flaring because we’re too lazy to build pipelines. We don’t have infrastructure set up. [00:10:59][12.1]

Stuart Turley: [00:10:59] When we compare three permits, which came first, the permit or the getting. Because once you drill a well and you have no takeaway, you either store it which is expensive or you flare it or you tie it to a pipeline and we can’t get pipelines done. So the Mickey Mouse bullcrap that this administration is doing is absolutely going, you’re going to do this. You know what their number one goal is, Michael? Don’t raise the price of energy across the board. [00:11:33][34.4]

Michael Tanner: [00:11:34] Absolutely. They want to make it extremely expensive to operate oil and gas. That’s exactly what these rules will do. We will be diving into it. No wonder they dropped this at 3 a.m.. [00:11:42][8.1]

Stuart Turley: [00:11:43] Yeah, it was so that large could go up there and say some things that come up. Here’s where this story just gets a little uglier. DOE Redefines Foreign entity of concern for EV. Confusing regulations just got no help. Holy smokes. Did they e these and everything else. This new comprehensive analysis shows that the Inflation Reduction Act is indeed transformative on the demand side. How come you know, says the S&P Global Vice-Chairman Daniel Yergin. I love Daniel. However, challenges remain in securing supply of critical minerals needed to meet growing demand to achieve the goal. Even these are stalled. They’re not only stalled, but they’ve got a gas generator option in the trunk, the pop the hood and drive down the road with your gas generator. Kind of like that dodge. It’s good to have that. This is absolutely horrific. [00:12:46][63.8]

Michael Tanner: [00:12:48] I mean. [00:12:48][0.1]

Stuart Turley: [00:12:48] Is giving more than the bottom line in here, Michael. It’s giving more guidance and more ability for China to make the EVs. And this is going to kill the United States EV cars, period. That’s what this is. [00:13:03][15.1]

Michael Tanner: [00:13:04] You know, whenever John possessed is on the side of thinking, this is good, I’m out. So that’s all. I mean, you know, love this article they you know friend of the show and Bridges is quoted in this article. [00:13:15][11.2]

Stuart Turley: [00:13:16] Oh, yes. She is fantastic and very, very knowledgeable. [00:13:20][4.0]

Michael Tanner: [00:13:20] But it is interesting. How are you going to I mean, the problem is this is China a foreign entity of concern? Yes, absolutely. The problem is we have to work with them. So what do you do? I don’t know. So this is I tend to fall on the other side of John Podesta. This is I am a little bit tongue twisted here because it’s like China is a rogue state. Of course they are. [00:13:44][23.3]

Stuart Turley: [00:13:44] Yeah. And this is teeing em up for them. Biden’s Department of Energy is once again muscling aside Congress’s intent in representing both Democrats and Republicans in last minute effort to shove through a green agenda that consumers don’t want our country can’t afford for technology simply is not ready yet for large scale deployment, she wrote in an email to Metal Tech News. I love her. She is a great authoress and great guest on the podcast. I’m going to reach out to her and get her back on. [00:14:19][34.9]

Michael Tanner: [00:14:19] We are back on what’s next. [00:14:20][1.1]

Stuart Turley: [00:14:21] Okay, let’s go to us. Commits to shutting down its coal plants during Cop 28. Wait a minute. Did you hear that thump? Somebody just thumped a corner on lurches face since he’s had the last facelift. This man makes me airsick. Okay. The Biden administration at Cop 28. China. Michael, can you guess how much China’s carbon footprint has increased this past year? [00:14:49][28.0]

Michael Tanner: [00:14:49] I’m sure it’s twofold 220%. [00:14:51][2.0]

Stuart Turley: [00:14:54] They have over 400 coal plants approved. Their regulatory agency is very simple. Yes. Yes. See? Yes. That’s their approved system. Approved. You get to go play it for you. Oh, okay. Guess how much they lowered ours. Last year, the U.S. lowered it 20%. You know, hell, no. [00:15:22][27.6]

Michael Tanner: [00:15:22] Transition from hell to natural gas. [00:15:24][1.8]

Stuart Turley: [00:15:25] Exactly. What an orderly fashion. We will do it now. Who’s the number one polluter in the world? Michael? [00:15:32][7.5]

Michael Tanner: [00:15:33] China. [00:15:33][0.0]

Stuart Turley: [00:15:34] China. Guess who keeps getting nuclear? [00:15:35][1.6]

Michael Tanner: [00:15:36] China. [00:15:36][0.0]

Stuart Turley: [00:15:37] And guess who keeps getting fatter? It’s in the phone. Damn it. All the Chinese people are eating American food and getting fatter. This is ridiculous. I’m sorry for getting worked up, dude. I just. I’m going to go put my head in the toilet just so I can calm down. [00:15:51][14.1]

Michael Tanner: [00:15:51] Well, yeah. Well, your favorite politician, U.S. special envoy for Climate, John Kerry. What did he actually do? He announced that at the U.N. Annual Climate summit, a.k.a. Cop 28, that we are not building new coal plants and will be phasing out existing bugs. And we were probably already doing. That’s what’s funny. We ought to send John Kerry Heinz, 57, on his private jet, over to cop 28 to attempt to tell us we’re shutting down the coal plant. It’s not his plane, though, Stu. So we can’t get mad and. [00:16:21][29.6]

Stuart Turley: [00:16:21] Remember his. [00:16:22][0.8]

Michael Tanner: [00:16:22] Plane. It’s his wife’s plane. His plane. [00:16:24][2.0]

Stuart Turley: [00:16:25] His plane. Did you know that he went on an Air Force jet? Don’t kid yourself. With a face lift that would dodged a bullet. I mean, he’s got a bulletproof face, and you can dump a quarter on it. I guarantee you a drill sergeant, when they come up and they stomp a quarter on the bed and it bounces, they’re good. A drill sergeant could thump a quarter on his face. Okay, let’s go to Cop 28 here. The thread, the ENB thread on these stories got me so worked up. I’ve got to go. Get on the bike and and ride for five hours. Cop 28 President Ride. Claims there is no Science behind Calls to phase out fossil fuels. The Guardian. Michael Here’s where it’s a lot of fun being a fly or a bugger on the wall, whichever one you want to call it. It’s got to be pretty funny because you have the head of Exxon, you have the head of Saudi Arabia there, and then you have the head of Saudi Aramco there. And then there were 100 and 110 oil companies there. Okay. Wow. There’s 70,000 of your closest friends there. I have an appointment with Grace Stankey again. She is live in Dubai and we’re going to talk. It’s going to be 11:00 my time and we’re going to do a podcast to get an update on what’s going on with the nuclear. We have committed to doing more nuclear. I’m thrilled about that. So this listen to this. We are in absolute crisis that has hurt hurting women and children more than anyone else because we have not yet committing out fossil fuels. Robinson, who chairs The Elders, a London based human rights environmental NGO, was quoted as the Garden. One said decision at Cop 28 can take in many ways because you’re the head of EG, not you could actually take it with more credibility. That guy needs to put his head in the toilet. [00:18:25][119.9]

Michael Tanner: [00:18:26] He’s wherever. Wherever John Kerry’s going. This is where we need this guy. [00:18:30][4.3]

Stuart Turley: [00:18:30] Oh, absolutely. Just flap his ears, you know? Okay, let’s go to the next one before I get airsick. Russia about to become one of the world’s biggest LNG producers, Gazprom. Okay. As a result. Here it is. Third paragraph down. Fourth paragraph. As a result, Russia could become one of the three biggest LNG producers in the world, the company said in a statement. It followed a meeting of the board of directors that reviewed prospects in the global scale LNG, the first three quarters of 2023, including increased by 2%. Mike Michael, this is where I got to give a shout out to George Macmillan. He was my two hour podcast. I listened in on my way up here to bear country. That man is incredible. Everybody needs to go listen to him, not me. [00:19:23][52.7]

Michael Tanner: [00:19:24] And he put a link in the description below. [00:19:25][1.5]

Stuart Turley: [00:19:26] Absolutely. I will put it in there. Now, here’s the thing. The United States wants to shut down all pipelines out of Gazprom. Sweet George has basically lined all that up. Here’s another one that even with no matter what the US is doing to Russia by doing underhanded things, they’re doing underhanded things in order to shut down Moscow. I’m embarrassed by what they’ve done. [00:19:56][30.7]

Michael Tanner: [00:19:57] Yeah, here’s the thing. You know, we all know you’re running Putin’s 2024 campaigns, right? [00:20:01][4.7]

Stuart Turley: [00:20:02] Arm stance man is a hose bag. Okay, I’m going to be first. Hey, you just called me Hose. Maggie. [00:20:08][5.6]

Michael Tanner: [00:20:09] I. [00:20:09][0.0]

Stuart Turley: [00:20:11] No, I am not. I am a Putin fan only for one reason. That is taking care of Russia first. He is a credible gang. There goes my ability to interview him. [00:20:23][12.2]

Michael Tanner: [00:20:27] I don’t think this press release is wrong, though. I do think that Gazprom could become the world’s largest or one of the world’s largest because they have so much gas there. It’s a matter of infrastructure and it’s a matter of it investment infrastructure. And as long as they’re tied up in Ukraine, it’s going to be hard for them to continue on because LNG is, you know, these these these LNG terminals, these gasification. They’re not cheap. [00:20:51][23.9]

Stuart Turley: [00:20:51] No, they’re not. Now, here’s the thing. Putin, as we affectionately calling Putin, i.e., you know, Putin’s been in North Korea three times this year. Why he’s been. [00:21:04][12.2]

Michael Tanner: [00:21:04] There. Did you advise that? You advise that one? [00:21:07][2.8]

Stuart Turley: [00:21:07] Oh, no, I didn’t advise it. But the little short guy that Trump, you know, so called the little short man or whatever his name was. Rocket Man. Thank you. Anyway, Putin was negotiating a pipeline between North Korea and South Korea because South Korea wants Russian natural gas. What’s going on? Then there’s more natural gas coming out of Russia to go to Japan. The U.S. got involved in that one and stopped that pipeline. So you think China, Japan is going to be on our side? I doubt it. Our Japan is going to go with. Let’s see. Michael, do you like your apartment? Do you like the way you live? [00:21:50][43.1]

Michael Tanner: [00:21:51] Love it. [00:21:51][0.2]

Stuart Turley: [00:21:51] Okay. Guess what? If you are Japan and you want natural gas from Russia, what are you going to do? You’re going to sit there and go, Well, maybe the Chinese are not that bad. Maybe the Japan’s not that. You know, and you sit back and go, this is a lot bigger than this article. This article is only the tip of the spear, as you say. [00:22:12][20.9]

Michael Tanner: [00:22:13] Yeah, the tip of the spear. And finally, for all our oil fans, we talked all last week about OPEC was going to do something. OPEC was going to do something. They did do something. Talk to us about that. [00:22:24][11.0]

Stuart Turley: [00:22:25] Yeah. The next article, my goal is OPEC to extend oil output cuts. Okay. Excuse me. Oh, it’s so underwhelming. You know, let’s hear a moment of silence for this one. Okay. We’re done. You know, the Saudi Arabia agreed to deepen production cuts to about 2.2 million. That’s about 1.1 million more. I mean, that’s nothing. Now, here’s the here’s where you’re going to do this. The another article came out, I think, Thursday or Friday. Brazil is now accepted into BRICs. Plus, the head of Brazil’s owned company has said. [00:23:05][40.2]

Michael Tanner: [00:23:06] Petrobras. [00:23:06][0.0]

Stuart Turley: [00:23:07] Petrobras, maybe Petrobras. They have said we will not adhere to any production cuts. So all of a sudden you have them, you have Iran and you have these others. This cut means nothing. And I think the market is realizing that. [00:23:25][18.0]

Michael Tanner: [00:23:25] Yeah, exactly. That’s why we part of the reason why we’re going to talk about where oil prices are, where they at. But, you know, again, I think this is a whole lot of nothing. We expected this, I think, like you said, Exactly. The Resile edition of BRICs blunts BRICs Plus and quoting that saying, we’re not going. [00:23:42][16.7]

Stuart Turley: [00:23:42] To launch it’s OPEC. Plus, they’re already going in the Bric. This is OPEC. [00:23:47][4.8]

Michael Tanner: [00:23:48] OPEC plus excuse me, Brazil going into OPEC plus. Yes. Not knowing, knowing that they’re not going to agree to any cuts. Yes. Is going to drive oil prices down. So, hey, absolutely. I mean, this is all this weekend in crazy. [00:23:59][11.2]

Stuart Turley: [00:24:00] It’s been brutal, dude. [00:24:00][0.7]

Michael Tanner: [00:24:01] That’s why it’s why you can pay the big bucks. [00:24:02][1.5]

Stuart Turley: [00:24:03] I don’t know about that, man. [00:24:04][0.7]

Michael Tanner: [00:24:05] You got anything else? No. [00:24:06][0.9]

Stuart Turley: [00:24:06] I’m going to go put my head in the toilet and slap around, pretend I’m Lurch. [00:24:10][4.3]

Michael Tanner: [00:24:11] Okay. Well, well, well. On that lovely note, we’ll cover oil and gas finance guys. Overall markets on Friday ended up about half a percentage point for the S&P 500. Nasdaq about 3/10 of a percentage point. Crude oil drops 2.5 percentage points, 7407, set to open about 7438, according to the latest, opens. Brant oil down about 2.8 percentage points, 8024. You know a really again, off the back of of what Stu talked about the fact that these home cuts were nothing more. If you if you were to read our favorite friends over at Reuters, they would tell you that investor skepticism about the depth of the opec+ cuts and concern about sluggish global manufacturing activity, I’m not sure what that is all about. I think we’ve seen some number. I mean, the problem is we’ve seen numbers have come out of China that have been look bets if you’re using China is an excuse for why oil prices are down. And I’m sorry, get out of here because they’ve the data has been bad in China for months now. The problem is we’re going to do this next week because I was having some. Fun last week going over everybody’s $120 oil prediction. Bye bye. End a year. Oh, they’re everywhere. We’ve got our favorite friends, Goldman Sachs. You’ve got JPMorgan. You’ve got yourself. Everybody’s got $120. [00:25:22][70.5]

Stuart Turley: [00:25:23] I’m looking at. [00:25:24][0.4]

Michael Tanner: [00:25:25] I’m like, this time out. I’m looking at 7407 oil. Not that that’s a bad thing, but I just love the fact that we get so hyped up and, oh, all this. We’ve had a new war breakout and oil’s gone down. The fundamentals are a little messed up. So do you have to admit that? [00:25:43][17.8]

Stuart Turley: [00:25:43] Oh, I will. And by the way, I said all of the old fundamentals. Throw them out. They no longer apply. I said. [00:25:50][7.0]

Michael Tanner: [00:25:50] The clips will put me on board. Do we record every single day? We’ll pull the clips. I’m putting it. I’m going. Have Andy put this together. Trust. [00:25:58][7.3]

Stuart Turley: [00:25:58] Oh, absolutely. [00:25:58][0.1]

Michael Tanner: [00:25:58] We’re going to play this. We’re going to play. [00:26:00][1.2]

Stuart Turley: [00:26:00] And I’m going to go find the timestamp because I said I can’t predict anything. And I think we’re going to hover around here. Oh, don’t fret. [00:26:08][8.0]

Michael Tanner: [00:26:08] Oh, no, no, no. [00:26:09][0.9]

Stuart Turley: [00:26:09] No, no. You’re playing on millennial on me. Oh, my gosh. My beloved millennial just made me airsick again. [00:26:16][6.6]

Michael Tanner: [00:26:17] Oh, my. Next up, rig counts only up three, which is hilarious. As we saw prices go down. Zero discipline in the oil and gas business. You have to love it. Prices down. Rig counts. UPS do absolutely love to see it. You know, mainly that’s from the private sector. I mean, you’re not seeing public companies necessarily go rigs as much as they have done through that M&A process. Canada saw five rigs drop and internationally we saw 16. I think I think the big news that happened on Friday was the deal that I think people thought might happen got leaked to The Wall Street Journal. Occidental Jet, is it It’s Warren Buffett’s hometown in Omaha, Nebraska, amidst potential $10 billion shale deal with Crown Quest or Crown Rock, which is the kind of the holding company that owns it. It’s a 50% joint venture between the Tim Dunn family and Lime Rock Resource Partners. That deal is potentially valued for at least $10 billion. They’re a primary Permian producer, some of the most prime acreage I wouldn’t say maybe now, but five, ten years ago, at the heart of the shale boom, they were able to lease up some of the most lucrative, you know, contiguous acreage in Midland and Dell in Midland County, which is absolutely sort of driven there, you know, driven them from what they were, which is a, you know, a small private equity backed oil and gas company to one of the larger private oil and gas companies out there. And they’re about to cash out for it’s going to be more than 10 billion can be absolutely more than 10 billion trust. [00:27:44][87.0]

Stuart Turley: [00:27:44] I was driving down the road the other day and I heard just about how powerful those are. All of the Democrats in Texas that were now complaining because that family has $10 billion in their pocket. And they said that will change the face of Texas politics for years. [00:27:59][15.4]

Michael Tanner: [00:28:00] I’d be interesting or definitely don’t want to spotlight this deal whenever it comes out. I think, you know, again, this is a just supposedly deal. Okay. They haven’t announced anything. And I think what will be interesting to do still is when this does break or for our next deal spotlight, we should figure out what we would pay for crown. Now, the problem is it’s hard because there’s a lot of stuff we don’t know. You know, we don’t quite know their full length of their asset base, their private. We it’s hard to go. They don’t they’re not putting out investor presentations like public companies are. But we’ll do our best. I think it’ll be interesting to to dive into why this deal is a long shot. Do you got anything else? What should people be worried about this week? [00:28:35][35.4]

Stuart Turley: [00:28:35] Oh, come 28. I got some great things coming out on Cop 28. Lurch is going to I’m waiting for lurches call, you know, so I can thump a quarter on his face also interviewing Grace Stankey and she is Miss America. It’s going to be 11:00 on Wednesday night and she’s going to be in Dubai time. And I’m going to be past my 6:00 bedtime. [00:29:00][24.3]

Michael Tanner: [00:29:01] Yeah, No, we’ll have to get will be sending coffee your way. So we got to love it. Well, with that, guys, we appreciate you checking us out. World’s greatest website www.energynewsbeat.com for Stuart Turley I’m Michael Tanner we’ll see you tomorrow folks. [00:29:01][0.0][1673.1]

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