Exxon vs Chevron For The Future of Guyana

Daily Standup Top Stories

California Emits More Greenhouse Gas Than All Other U.S. States Combined

April 6, 2024 Stu Turley

---

Follow Stuart On LinkedIn and Twitter

Follow Michael On LinkedIn and Twitter

ENB Top News

Energy Dashboard

ENB Podcast

ENB Substack

– Get in Contact With The Show –

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

---

Michael Tanner: [00:00:14] What’s going on, everybody? Welcome into the Monday, April 8th, 2024 edition of the Daily Energy News Beat stand up. Here are today’s top headlines. First up, California emits more greenhouse gas than all other US states combined, heaping on our favorite state California theme. The next article is why gas prices in California have gone ballistic. We’ll then move over to one of our favorite sub stacks the energy. Bad boys. Wind. Drought. Blackout. Do you feel lucky, punk? I have a really great, cover art here. That will be great to see. Next up, critical impact chat GPT consumes 500ml of water for every 50 text you send through it. Interesting. I love this angle here because we talk a lot about power, not that much about water. And then in all irony, April 8th solar eclipse will briefly limit solar electricity generation across the country. [00:01:12][57.5]

Stuart Turley: [00:01:12] I had to I. [00:01:13][0.9]

Michael Tanner: [00:01:14] Can’t make this stuff up folks who will then toss to me. I will quickly cover what happened in the oil and gas markets on Friday. Oil pop tremendously will cover some of the reasons behind that. We also got an insight into U.S. rig counts and our favorite, one of our favorite oil, journalist Javier Baez. He wrote a great piece for Bloomberg that will cover titled Exxon’s $60 Billion Fight with Chevron Will Reshape Big Oil all about the Guyana. I will cover all that and a bag of chip guys. As always, I am Michael Tanner, joined by the creator of Energy News beat.com, Stuart Turley. Go ahead, kick us off. Where do you want to begin. [00:01:51][37.3]

Stuart Turley: [00:01:52] Then let’s start out with our buddies over there in California. California emits more greenhouse gases than all of the other states combined. Are you shocked, Michael? [00:02:02][10.6]

Michael Tanner: [00:02:03] I’m not shocked at all that Newsom’s behind this. [00:02:05][1.9]

Stuart Turley: [00:02:06] Oh, yeah, and oil slick if he gets in the hot tub. He goes out into the bay. Okay. Hang on. I did not know what this was talking about. It is not oil and gas. And the research conducted by a team from Johns Hopkins University in collaboration with NOAA. So you know that it’s really on the on the mark there. And they and Scripps Institution of Oceanography analyzed 15,000 air emission of sulfur fluoride collected from 2015 to 2019. And it’s because of what they are doing. 85% of the state’s emissions stems from the process of, structural fumigation. This practice involves sealing infested structures with airtight tents and or introducing gas to eliminate pests and venting it into the atmosphere. [00:03:09][63.0]

Michael Tanner: [00:03:10] Well, where’s the bill to eliminate the insects now? Where’s the build? That’s the next thing that should come up in the legislator. Get rid of all grasshoppers. [00:03:17][7.2]

Stuart Turley: [00:03:19] We gotta eat them. I mean, you know, quiet. Schwab is good. [00:03:22][3.7]

Michael Tanner: [00:03:24] What are we gonna eat now? [00:03:25][1.1]

Stuart Turley: [00:03:25] You will eat nothing and be happy. I’d like to have a grasshopper. Thank you. Now, this is absolutely hypocrisy at its finest. The study highlights proactive approach to greenhouse gas reduction and emphasizes the importance of informed strategies. Yes. Do you want cockroaches and bugs? Close the border. If you want to have. You know, this is just unbelievable. [00:03:51][25.5]

Michael Tanner: [00:03:53] Yeah, it’s. You can’t make this stuff up. And the fact that the majority of it comes from non oil and gas, which is also again another one of the one of my favorite hypocrisies is is hilarious. You said it best. This is energy hypocrisy at its finest. Let’s move to gas prices. [00:04:10][17.2]

Stuart Turley: [00:04:11] Oh, you gotta love this one. Let’s go. Yeah, let’s keep going there. Why? Gas prices in California have gone ballistic. You gotta love a good ballistic story. The Golden State average at the pump surges $0.23 to 527 per gallon on Friday from a week ago, according to the, triple A Tom close ahead of the energy analysis at Ups’s refinery challenges the main culprit for California’s surging prices. Challenges. I call it a shotgun to the crotch, is what I call it. Throw in regularly scheduled maintenance that will occur in two critical refineries in May. And the normal benefit, for speculative buying in global markets in the second quarter. And you have wholesale prices that have gone ballistic. I guarantee you’re going to see more and more diesel and gasoline being bought from Michael. Hold on, hold on. China. [00:05:10][59.5]

Michael Tanner: [00:05:11] Russia? [00:05:11][0.0]

Stuart Turley: [00:05:13] No, they’re buying it from China. You heard it here. Second. First. You heard it here in first from Newsom and presidency in California. Any student of petroleum history recognize that these relationships won’t persist. Say closet, correction for gasoline and perhaps crude looms. And it also will occur in the next 30 days. It is absolutely abysmal what they’re doing. [00:05:38][25.1]

Michael Tanner: [00:05:39] Oh, yeah, I mean, they they don’t want people to drive. This is legislation through regulation. I had an opportunity to go to a great event, hosted by, Texans. I pray it was, who? Genevieve Collins. Who’s she part of? [00:05:52][13.2]

Stuart Turley: [00:05:52] Americans for prosperity. [00:05:53][0.7]

Michael Tanner: [00:05:54] Americans for prosperity. She’s a great person. I an opportunity to go to an event hosted by them where Congressman Austin Pfluger, who’s a the congressman from Midland. Odessa. Great guy. We need to get him on the podcast. And RT Trevino. We love art. He’s a he’s a president of Trevino Family resources, Pecos country operating. He had an opportunity to have two minutes in front of the congressman, and I’m so glad he did that. He sounded exactly like you do. He pointed out that small operators and small businesses are getting regulated out of business because of all this stuff. And this is exactly this goes into exactly what they’re talking about. They’re trying to add in more taxes, more regulations, more things that may get gasoline more expensive. So there’s the the only the only place you’re going to end up going to get gas is a California national gas station. [00:06:44][50.3]

Stuart Turley: [00:06:45] Owned by presidency. [00:06:46][0.8]

Michael Tanner: [00:06:47] And yep, a joint venture between California and China. If I ever have to cover that on the deal spotlight, I’m just jumping. I’m just going to go jump out the window. My apartment. I’m just gonna dive in headfirst. [00:07:01][13.6]

Stuart Turley: [00:07:01] Do you remember three years ago when you and I were covering the tanker shortages, and they were lined up in the bay trying to. You all know, what going on, and they wanted to come on our show. They wanted to interview us for the China mainland TV. Do you remember that? [00:07:18][17.1]

Michael Tanner: [00:07:19] Yeah, because on you goes on top of being Putin’s political advisor, you’re also G. Yeah. President XI, political advisor. [00:07:26][6.8]

Stuart Turley: [00:07:27] They they were like he talked truth. [00:07:29][2.0]

Michael Tanner: [00:07:31] What’s next? Let’s go to the other bad boys. [00:07:32][1.5]

Stuart Turley: [00:07:33] Energy. Bad boys. I’ll tell you why this I actually love these guys. When. Drought. Blackout. Do you feel lucky, punk? The energy. Bad boys. This one. There are two videos in here. The first video is a fluff piece from when a large transitional power plant goes offline. And, Michael, it’s a fluff piece where you feel good. There’s unicorns and very dusk in Tinkerbell. One windmill wakes up, another one goes to sleep. That’s not how a grid works. I’m over here going and if you if you go down in the article, you’ll see Clint Eastwood going, hey, do you feel lucky, punk? This is a 44 mag with the most powerful handgun in the world. And did I shoot five or did I shoot six? Go ahead. That’s funny. The grid is going on right now. We call this dirty Harry energy policy. Do you feel lucky? I absolutely thought it was great. There’s actually wind, drought. They’ve been. There’s a chart in there. If Miss Producer, if you could bring this up when the, capacity factor from, mismo January through February and you can see that the chart has as it dies down coal and natural gas stepped into the breach to keep the lights on. If we did not have natural gas in Michael, this goes into an excellent point on Ercot. Mismo is, in the center part of the, state. It’s the, in the in the grid operator. Ercot is in Texas. Ercot has half the price because of the ability of foreign investment in the natural gas. We have total energy investing in the natural gas plants in Texas. That big money allows us to also have a balance of everything in there. You don’t have that in this. Okay, so let’s. [00:09:38][124.9]

Michael Tanner: [00:09:39] Start advising President XI to buy up some natural gas in Texas. What could we want more? [00:09:43][4.2]

Stuart Turley: [00:09:44] I don’t want his money. [00:09:44][0.7]

Michael Tanner: [00:09:45] What could be better, investment in our energy infrastructure? What could go wrong? [00:09:50][4.9]

Stuart Turley: [00:09:50] What could go wrong? They already own a lot of the farmland. And then they’re going to. Never mind. [00:09:54][4.1]

Michael Tanner: [00:09:54] Okay, though. Yeah, and that’s great. No, I’m pumped about that. [00:09:57][2.8]

Stuart Turley: [00:09:58] I’m not. Believe me, I’m going to go finish mine. Let’s go to the next story here. Critical impact ChatGPT consumes 500ml of water for every 50 text you send it. Miss, producer, could you call this picture up? I about threw up when I actually saw this one. There it is. A gruesome looking picture. For our podcast listeners, it is a, modern looking C3po that actually looks kind of scary with a human looking tongue drinking some water. So that’s got to be a cyborg looking kind of a thing. But anyway, that was generated by chat GPT. So if you’re not thirsty before or after, but before you see that you are thirsty after looking at that scary thing, here’s where it gets really scary. Sean Wren, a researcher at the University of California, Riverside and one of the authors of the paper, cited saying that training GPT three and Microsoft, state of the art U.S. data centers used 700,000l of clean, fresh water. But the real problem is going to come when the public becomes increasingly obsessed with asking their AI assistants questions. And so that’s a lot. And when you. [00:11:16][77.9]

Michael Tanner: [00:11:16] Here’s what it this is the scariest part. The paper goes on to say that global AI demand you know, forecasted obviously global AI demand may mean that we draw between 4.2 and 6 point 6,000,000,000m³. And that’s three. That’s that’s multiply that by three because you’re talking about meters to feet okay. Because this is a UK study. So 4.2 to 6 point 6,000,000,000m³ of water in 2027, which is half of the current water use in the UK. Oh you think there’s a drought now? You ain’t seen nothing yet, which is I. When I read this article I was like, I had no idea. [00:11:52][36.5]

Stuart Turley: [00:11:53] I didn’t either and it just absolutely abound. It’s scary. The only way AI is going to work, Michael, is nuclear. Period. [00:12:03][10.1]

Michael Tanner: [00:12:05] Now you still need to cool it. I came across an interesting company read recently had. Resources that has a modular bitcoin mine that they call it using the produced water from an oil well and it evaporates. So not only do you not have to use fresh water, but you can also save on your produce water costs. Instead of having to truck it off, you just pipe the pipe it through a Bitcoin mine and it evaporates towards the end that we’re going to have to innovate like things like that are going to have to become more mainstream. In order for this stuff to work. [00:12:37][32.9]

Stuart Turley: [00:12:38] I need to I need to visit with him on the podcast I want to learn more about. [00:12:42][3.4]

Michael Tanner: [00:12:42] Yes, we’ll get you hooked up. Chris and Andrew over there, very, very great guys. But no, you’re going to the market’s going to have to come up with solutions like that to solve this problem. Because this is a this is a second, third order effect that everyone’s talking about electricity. Nobody’s talking about water. [00:12:57][15.7]

Stuart Turley: [00:12:58] Oh no. Water is huge. And especially when you get carrots, you are up there going, you will have no water and be happy. Honestly. Yeah. [00:13:07][8.4]

Michael Tanner: [00:13:07] He said that. [00:13:07][0.4]

Stuart Turley: [00:13:08] April solar eclipse will briefly limit solar electrical generation across the country. This one kind of caught my attention. And today is. [00:13:18][9.8]

Michael Tanner: [00:13:19] April before the end. While if you’re listening to this. [00:13:23][4.4]

Stuart Turley: [00:13:24] But you’re listening to this on the eight, here’s the let me just read this one last the last paragraph in here. The effect of the 2017 solar eclipse on the system was minor. Since then, however, the U.S. electricity portfolio has changed significantly. Almost 100GW of utility scale solar and small scale solar capacity has been added to the system. During the 2017 solar generation was the fifth leading generation energy source in the United States, behind natural gas, coal, nuclear and hydro. Even with the eclipse, we’re expected solar generation to be the third largest contributor of electricity United States, behind natural gas and nuclear. I don’t know what to make of today, tomorrow, the future. I’m here in July. [00:14:16][52.1]

Michael Tanner: [00:14:16] First, let’s pull up this, this EIA graph here, the utility scale solar generation path for the eight. So you can see I’m sitting here in Dallas right now, which is ironically right in the path of totality, which is interesting. You’re gonna get about four minutes of that. I love how they have those bands though from, you know, and you can kind of see and what’s crazy is a lot of the solar, as you can see, is, you know, a lot of that’s on the East Coast is obstructed. So again, the place where you need the electricity northeast we can’t get because it’s all good. Even the solar’s going to be knocked out. [00:14:48][32.2]

Stuart Turley: [00:14:49] Oh yeah. Absolutely. And you can take a look. In Oklahoma there’s very little solar. You know, it’s kind of like, Who cares? Louisiana. [00:14:58][9.0]

Michael Tanner: [00:14:59] Place. Yeah. [00:14:59][0.6]

Stuart Turley: [00:15:00] There you go. You in Louisiana, there’s like one solar panel. [00:15:03][3.1]

Michael Tanner: [00:15:04] Look at North Dakota. There’s none. [00:15:05][1.6]

Stuart Turley: [00:15:06] None in South Dakota. 1100. Look at Florida. It’s going off into the ocean there. [00:15:17][10.9]

Michael Tanner: [00:15:17] Isn’t that there is a decent amount in, in in Florida. No kidding. [00:15:20][2.9]

Stuart Turley: [00:15:21] And that makes sense. But anyway, I just thought it was kind of funny. I’m seeing so many things about the how this is, a spiritual thing, how this is going to have all these other. It’s just weird. Dude. Buckle up. Yeah. I can’t wait to. [00:15:36][14.5]

Michael Tanner: [00:15:36] It’s weird for you that. Guys, that means it’s off the cliff. [00:15:38][2.3]

Stuart Turley: [00:15:39] Dude, I’m not going into any of this. [00:15:41][1.6]

Michael Tanner: [00:15:43] All right, well, before we hop over to finance guys, we’re going to pay the bills here. As always, thanks for checking us out. www.EnergyNewsbeat.com, all the news and analysis. Analysis you just heard, is brought to you by that website again, energy news beat.com. Stu and the team do a tremendous job making sure that website stays up to speed. Everything you need to know to be the tip of the spear when it comes to the oil and gas and energy business. Check us out. Dashboard.EnergyNewsbeat.com for all of your data news combo. We have a survey. Go ahead and hit that below. We appreciate everybody’s feedback as always guys energynewsbeat.com. [00:16:18][34.8]

Michael Tanner: [00:16:20] As we move over to to the overall markets. Actually a great day on Friday markets. overall we’re up about 1.1 percentage points for the S&P 500. Nasdaq up 1.2 percentage points. Two year yields popped 2.2 percentage points. Ten year yield only 2.1 percentage points. dollar index fairly flat. Bitcoin $68,000. As it trades this weekend, crude oil finishes on an absolute tear 86 not 73. Was that was that closing price there on Friday up more a dollar mainly on the back of some just forecasted supply risk between what’s going on between Israel and now I ran Stu can probably speak a little bit more, but I ran Israel took out some generals in that Iranian generals that were in Israel. Right? [00:17:05][45.2]

Stuart Turley: [00:17:06] No, they were right. Just they are still outside of it. They’re outside of the border, but still bad. [00:17:12][5.4]

Michael Tanner: [00:17:12] So basically Israel or Iran came out and and the quote is, you know, they there’s no quote, but they quote, vowed revenge against Israel for an attack that killed the top two generals. This is you know what I mean? This is why oil prices pop. We’re going to see oil prices when they, as you’re listening to this. My guarantee is oil prices have risen from 8691. Are you worried about this escalating more now, Sue, because of this move? [00:17:40][27.6]

Stuart Turley: [00:17:40] I’m going to answer. And I think it’s intentional. And I think that you’re going to have people like the war hawks like, Lindsey Graham or, Lesley Graham are going to be actually happy. I’m serious. If there is a, a a very big call for the war mongers to start World War three, and this is going to do it. [00:18:04][23.8]

Michael Tanner: [00:18:05] Yeah. I mean, so I think that’s where a lot of your supply risk is also coming in. You know, part of the reason why we saw the S&P 500 and all of our two and ten year yields up is because ironically, the U.S. had some great jobs. Numbers drop on Friday. The U.S. economy added I want to 300. So I want to talk about that. Let me finish. Before you didn’t end up, the U.S. economy adds on an overall number, 303,000 jobs last month. That was up from an estimate. Of of only about 10,000 jobs. You know, mainly that robust oil demand led to a lot of those jobs coming back. Considering what the rigs have happened this May. The problem with this is that it could delay any potential interest rate cuts that were being expected by the market. So I think there was a little bit of a tempered expectations. All right. Now that we’ve at least read the numbers Stu, what’s your thoughts. [00:18:57][52.2]

Stuart Turley: [00:18:57] On I think the jobs market is absolutely abysmal. The average numbers are part time jobs. And when you sit back and take a look and strip apart the numbers and the type of jobs, there were only, I believe, 40,000 full time jobs created, I have to go look at the actual numbers, but there was a fraction of full time jobs created. The other part are multiple people trying to create and hold down part time jobs. Two and three type jobs. Same person working three jobs does not have a successful number and it is fictitious and they are putting out false number. [00:19:38][41.1]

Michael Tanner: [00:19:39] Well, I think this has more to do with okay, maybe there is a overall net gain of jobs. The problem is the economy is not in good shape due to the fact that inflation is still high. So the problem is the more you go and the more you you, you turn the levels of unemployment because it’s the first thing you learned as an undergrad econ student. You learn how to calculate unemployment and you realize, oh, wait, the unemployment calculation comes down with how they classify you. How are you full time? Are you looking for a job? You know, are you I mean, we all I mean, any basic economist, Stuart, is, you know, economics dude knows this. So the fact that even if there is an overall slight net gain of jobs, the fact is them pushing this number as high as it is is going to lead to the fact it is, is is in, you know, only going to stoke continued inflation. Now the problem is and this is where I find myself, you know, I want rates to go down. The problem is then then you you don’t fix the problem because then money gets too loose again. You almost and yes well it’s true, we can’t continue to just keep printing money. You know, we were seeing what the US deficits are absolutely unbelievable right now. We could pull up the US debt calculator. It’ll make you huge relative to what U.S. taxpayers and what all the on the issue is. Cutting rates slightly will allow the economy to start turning a little bit. Does it need to go to zero? No. Do they may be needed a little bit lower? I don’t envy the position. Jay Powell and the fed isn’t because they have to balance this. Really. If you continue to bring raise rates up, inflation will continue to you. The more you raise rates you’re going to get inflation under control. The problem is the more if you keep raising it, you’re going to start impacting a lot of these jobs numbers that are coming. You know the tech industry is not doing well. We know that. But you know the oil field is actually seeing a boom right now even though we’re about to cover rig counts are down a little bit. So I don’t envy the position the Fed’s in. Right. [00:21:29][110.3]

Stuart Turley: [00:21:30] As a economist you’re an economist and a financial expert. May I disagree with the old school way. And I’m you’re the you’re the guy that actually knows something. May the only way you’re going to change and get rid of inflation is to lower interest. Now make it zero. Don’t give it away. Make it 1%. Make it a half a percent. Whatever you got to do, lower it and lower energy prices without lowering energy prices. Nothing you do, they can’t change and get rid of inflation. You have to. Lower energy prices, period. [00:22:09][39.3]

Michael Tanner: [00:22:10] And again going back to this jobs number. They’re definitely they they’re they’re jockeying with this number because they’re in an interest. The Fed’s in an interesting position. They have. They only have two levers they can pull. And it doesn’t. It may even not necessarily have the effect that they want it to. But we agree on this. You have to bring down energy costs. And the problem is energy costs are continuing to go up. We’re dropping Rick’s oil’s now up to the highest it’s been in five months. If this producer if we can pull up the latest U.S. rig count, the U.S. dropped one rig week over week, which is absolutely insane considering rigs have continued. So what? I mean, what does this tell you? It could tell you a bunch of different stuff, really. When you look at the breakout, there was no rigs added or dropped on both onshore or horizontal. Only thing that we saw, we saw two directional, vertical rigs get picked up. And then we did see three offshore rigs drop, which is an, you know, which doesn’t necessarily mean one thing or the other because you’re talking about active drilling. So maybe this rig was going back for a little bit, not decommissioning. But hey, let’s refresh it up a little bit and change out. Come back out here in three months so those rigs will get picked back up. [00:23:20][70.1]

Stuart Turley: [00:23:20] But we look at him. [00:23:21][1.2]

Michael Tanner: [00:23:22] You what’s up. [00:23:23][1.4]

Stuart Turley: [00:23:23] Look at the international. Wow. [00:23:25][1.5]

Michael Tanner: [00:23:25] You’re National’s crushing. Well it’s over $90 right now Saudi Arabia is picking. Everyone’s now taking the opportunity to pick rigs up. It’s interesting what’s going on the United States though people. And this has a lot to do with returns for shareholders recover in this deal. Spotlight every single week now is the only thing people are saying is, hey, we’re going to return, money to shareholders, return money to shareholders. It’s a far cry from the 2016, which it was. Whoa. More rigs, more rigs, more rigs. Not quite how it’s working. Speaking of offshore stew, this is an absolutely crazy story. Exxon’s $60 billion fight with Chevron will reshape Big oil. So we all know the Chevron has merger and not really a merger. Chevron purchasing has in an all stock transaction worth somewhere about $60 billion including the debt. The funny part is Hess has a huge 30% stake in the famous Guyana Starbuck. Our star broke deal, which is a series of oil fields off the coast of Guyana with potentially somewhere around 11 billion barrels of oil worth about 1 trillion at current prices. The interesting part is that Exxon Mobil, for those of you who don’t know, about three weeks ago, we’re about a man about a month ago came out in officially began, officially sued to assert its right of first refusal for the guy up for Hess’s Guyana steak and basically kicked off a legal battle. This is a article from Javier Baez. He’s one of our favorite Bloomberg guys. The center of this legal battle, as he says, hinges on the meaning of a few words contained in a highly secret document, probably about 100 pages long. What he was able to do was be able to get a copy of a transcript that most likely was the template of the José used. The interesting part is this. And I find this, fascinating. Before we dive into the template, right after the Chevron has a Deal was announced, Exxon, ironically, just sounded welcoming. This is a quote from Darren Woods. He told Bloomberg on October 27th. We work with Chevron all around the world. I see them in their participation in basically coming in and supporting the work. We have already demonstrated our ability to deliver on, because remember, Exxon’s the 45% interest on, well, obviously someone in his company said, wait a second, bro. Wait a second. Woods, you’re missing something here. Just two weeks later, woods called his counterparties. It has to say, wait, wait, there’s a problem. Exxon argued that it had the right of first refusal for his his stake in Guyana, basically saying, hey, you can’t make this merger happen until we have an opportunity to bid on these Guyana assets. The interesting part is Hess and Chevron responded by saying, while that’s true, the structure of the deal negated the claim. Oh, interesting. This culminated in remember, this was back in October. Okay, so there was a four month battle until on March 28th, Chevron filed the famous S-4 document with the Securities and Exchange Commission detailing Exxon’s concerns. And so this is when Chevron has got to come and say, wait a second, there are people trying to delay this. Multiple days later, woods informed Hess’s CEO John Hess and Chevron CEO Mike Wirth that his company was suing for arbitration. So really what this comes down to is the José, which is called the Joint operating agreement, which basically is how the deal is structured and all of the terms that are in there. Basically, there’s this 4094 page contract that is used. By the international energy that was, put out by the Association of International Energy Negotiations, which basically most likely contain the basis of the agreement between, Exxon and Hess and really, where Wall Street is. The year dives into taking the view that Exxon, ironically won’t win because this is a corporate deal at the parent level, which doesn’t trigger preemptive rights at the state level. Super interesting. So what does the change of control mean? Well, that’s specifically what they’re the clause talks about. There is an interesting paragraph though, in the template that if used in the star José might prove Exxon has a case. And now I’m quoting directly from the article. Quote, change in control means any direct or indirect change in control of a party, whether through merger, shale, sale of shares or other equity, interest or otherwise, in which the market value of the participating interest represents more than X percentage of the aggregate market value of the assets, such as parties and affiliates that are subjugated to change control. For purposes of this definition, market value shall be determined upon the amount in cash a will a willing buyer would be would pay a willing seller in an arm’s length transaction. Obviously, the percentage is blank because we don’t know the actual numbers, but that’s the interesting part. One of our favorite oil analyst, Paul Sankey, he was quoted that saying of the $170 that that, Hess went for and Chevron, Chevron uses the number to buy. But 140 of that comes from its Guyana stake. So you’re talking over 7,580% of the value comes from Guyana, which is why Exxon is like, wait a second here. We have an opportunity to bid on here. So again, this change of control laws, wherever it’s written in the José clearly is going to control this. Now the funny part is this Neil Chapman came out, who’s the CFO of Exxon and basically said, guys, guys, guys, guys, guys, I don’t know why you’re all freaking out. We know this contract because we wrote this contract. Oh, shot to them basically saying we know better than you. It’s going to be very interesting to see how this plays out too. [00:29:16][351.0]

Stuart Turley: [00:29:18] Whenever you have somebody says, I wrote the contract. [00:29:20][1.8]

Michael Tanner: [00:29:21] Hey, that doesn’t matter. In a court of law, though. Doesn’t matter. [00:29:24][2.2]

Stuart Turley: [00:29:24] Look, I got some jokes, but I’m going to keep us on the air and not make. [00:29:28][3.4]

Michael Tanner: [00:29:28] God keep us on. [00:29:29][0.8]

Stuart Turley: [00:29:30] This. [00:29:30][0.0]

Michael Tanner: [00:29:31] What else you got? Stu, going to be busy week. [00:29:32][1.5]

Stuart Turley: [00:29:33] It is. We’ll see how, how weird it gets this week. [00:29:37][3.9]

Michael Tanner: [00:29:38] You know, we got the eclipse today, guys. Glad you’re checking that out. Send us in your best stuff for that, but we’ll go and let you guys get out of here. Get back to work. Take a look. At that eclipse for Stuart Turley on Michael Tanner and the entire energynewsbeat.com family. We’ll see you tomorrow, folks. [00:29:38][0.0][1707.0]

---

– Get in Contact With The Show –