Daily Energy Standup Episode #52 – The guys cover London bypassing Russian Sanctions, the hypocrisy of the global consumers. “Let’s go green but not end child abuse”

The guys cover London bypassing Russian Sanctions, the hypocrisy of the global consumers. “Let’s go green but not end child abuse”

The shaming images that show where our iPhones, laptops and Tesla cars REALLY come from: The truth about the Congolese mines where kids are paid $2-a-day to dig for cobalt

Biden’s ‘Blood Battery’ Energy Agreement Incentivizes Forced Labor in African Mines

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Highlights of the Podcast

00:00 – Intro
03:32 – BP West rift with Russia to hit oil Gas demand.
06:32 – Duke Energy, North Carolina. Coal plants are more expensive to run than building new solar farms
07:53 – the Energy Innovation Policy and Technology LLC
13:13 – Biden’s blood for battery energy agreement incentivized forced labor in African mines
14:48 – The shaming images that show where our iPhones, laptops and Tesla cars really come from
20:46 – Market Updates
29:14 Outro


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

Michael Tanner: [00:00:14] What is going on, everybody? Welcome into another edition of the Daily EnergyNewsBeat Stand up here on this chilly Wednesday, February 1st, 2023. As always, I’m your humble, humble correspondent Michael Tanner, coming to you from an undisclosed location here in Dallas, Texas. Snowpocalypse has hit us. We have a massive amount accumulation here, about maybe a quarter, quarter of an inch. So we hope everybody is stay safe. The roads are unbelievably horrible. [00:00:39][25.0]

Michael Tanner: [00:00:39] I wouldn’t even step a foot outside. I get when people say snowstorms are bad here, Stu, it’s just unbelievable. The city is shut down. I’m surprised they even have electricity up this. If you can’t tell this is a joke. The fact that everything is shut down is absolutely unbelievable. But have no fear. The show must go on. I’m always joined by the executive producer of the show, the purveyor of the show and the director and publisher of the world’s greatest website EnergyNewsBeat.com. Stuart Turley, my man. How are you doing today? You’re up in bear country. [00:01:06][26.4]

Stuart Turley: [00:01:06] It’s a beautiful day up here at bear country and there’s no way I’m getting out of here. It’s all ice. [00:01:12][6.0]

Michael Tanner: [00:01:13] Do you actually have ice here? We have a quarter inch of snow and the city is thrown into chaos. So I actually went out and drove around in it because it was nice. Nobody was on it was on the roads. It was able to get to work even quicker. [00:01:26][13.2]

Stuart Turley: [00:01:27] Well, you know what’s more dangerous than putting. [00:01:29][2.6]

Michael Tanner: [00:01:30] Someone in Dallas who doesn’t know how to drive? They think about as equals. We have a great show for everybody lined up today. Stu’s got some absolutely bangers of articles. We’re going to start with BP West riff with Roger to hit oil and gas demand. That’s their new long term energy outlook forecast by BP. So we’ll take that extremely seriously. Report Duke Energy’s New York City or North Carolina Coal plants more expensive to run and building new solar farms. We’re going to have to investigate next. Biden’s blood battery energy agreement incentivizes forced labor in African mines. [00:02:07][37.1]

Michael Tanner: [00:02:08] The title is as bad as the article itself. Next, we have Here’s how prosperity ends. Global bubbles are popping. Finally, the shaming images that show where our iPhones, laptops and Tesla cars really come from. The truth about Congolese mines, where kids are paid $2 a day to dig for cobalt. We’ve been on this for a while. It’s as sad as the title sounds. Still kick it over to me will cover natural gas prices, which actually did spike up a little bit today due to 70 oil currently trading at 70/03. [00:02:37][29.2]

Michael Tanner: [00:02:38] We have the weekly EIA numbers that came out as we record this. I’m at about 445 the day before. I then also our friends over at Double Eagles get a little bit of extra capital commitment from some private equity and to establish a reserve based loan will cover what all that means and a bag of chips guys. But first check us out online World’s greatest website www.EnergyNewsBeat.com, Dashboard on EnergyNewsBeat.com. [00:03:02][23.6]

Michael Tanner: [00:03:03] Click the link below. All of the articles that we just referenced and will reference come from our website, which again is the world’s greatest. And after the pleasantries, those do they know to go visit us. They know to go do that. They know to go to visit us a thousand times. They know to be writing macros in which just ping our website every 5 seconds. So if you’re not doing that, please hit us one up. But enough of that. Stu. Where do you want to begin? [00:03:25][21.8]

Stuart Turley: [00:03:26] Okay. Hey, let’s roll around the corner here. Nothing up my sleeves. Watch me pull a story out of my hat. BP West rift with Russia to hit oil Gas demand. I thought it was kind of interesting. We talked about this yesterday on the podcast, but history has taught us that threats to energy security have large and persistent impacts on the structure of global energy, said BP chief economist Spencer Dale. [00:03:55][29.5]

Stuart Turley: [00:03:56] Finally, a name I can speak. So when you sit back and go, here’s another one the increased importance placed on energy sector as a result of the Russia Ukraine war leads over to a time shift away from imported fossil fuels toward locally produced non fossil fuels, accelerating the energy transition. I thought that was interesting, but locally produced means what is Germany? [00:04:25][29.6]

Stuart Turley: [00:04:26] They’re cutting all their firewood, you know. So I’m not sure that I agree with that statement. What we’re seeing based off of this type of argument is that there is a move for everybody to triple down on stupid and print more money and move to faster to renewables. And it’s just going to make it’s going to exacerbate the whole system. So in everything else, it does come down here a little bit later in the article, and you’re going to love this rosier outlook for gas. Michael’s CHEERING, Yeah!!. [00:05:02][36.3]

Michael Tanner: [00:05:03] I was literally going to point that out. The slight of hand that goes on that they’re doing. So remember five years ago or let’s even go two years ago, we. We’re all going to die from fossil fuels. Literally, the burning of fossil fuels is killing the children. That was the narrative. And now all of a sudden, natural gas will always be in the energy future. And as they see it, I love how they started out. [00:05:26][22.2]

Michael Tanner: [00:05:26] By contrast. BP sees potential for significant and persistent growth in gas demand under a continuation of current policy. You don’t say wow, but don’t see the slight of hand that they’re doing where they’re now. They’re realizing where they messed up on natural gas and they’re trying to sneak it in as green. I’m down. I’ll let them sneak in it, but I’m going to make fun of them all the way to the bank. [00:05:48][21.7]

Stuart Turley: [00:05:48] I love that, Michael. And, you know, it was funny as you and I talked about this since COP26, and you. [00:05:55][7.0]

Michael Tanner: [00:05:55] Were one of the first people on this. I very rarely like to give you credit, but you were on this from COP26. I will say that. [00:06:01][6.3]

Stuart Turley: [00:06:02] And the language that came out of it, Michael went to the infrastructure bill and then it went to France and then it went to the EU. And so the language has been there for them was stealth. We even use the word stealth. [00:06:16][14.1]

Michael Tanner: [00:06:19] Stealth. [00:06:19][0.0]

Stuart Turley: [00:06:20] Stealth, the OC. Let’s go to the next one, Duke Energy. This one’s kind of interesting. I love me from Duke. I always love Duke. But this one, I got to get my crayon out. Michael. This one? I’m not too sure of the report. Duke Energy, Nnorth Carolina. Coal plants are more expensive to run than building new solar farms. You know, this one makes my crayon just really, like, want to get out there and start chewing on it. Duke Energy spends twice as much money fueling and up keeping its six North Carolina coal plants costs based on two rate ratepayers if than if it replaced them with brand new solar farms. [00:07:04][44.2]

Stuart Turley: [00:07:05] .A report issued. I kind of looked at that report and you know it it’s got some false crayon markings on it. So I really think it’d be nice if people would use in and just like we talked about in the other story, Michael, use realistic stories. There’s a realistic numbers. There’s a falsehood about everybody in the renewable camp putting out wrong numbers and then expecting everybody to believe it. So in the link in the article on EnergyNewsBeat.com, there is the link in there that says a report. So when you go look at that link the total crossover 3.0. And here it is so and again it. [00:07:51][45.5]

Michael Tanner: [00:07:51] Right now I mean the people who wrote this article, the Energy Innovation Policy and Technology LLC, is just a shill for the climate industry. It is an absolute shill. I mean, let me read you a little bit about us, the people who did this, the people who are telling you that coal is more expensive than Solar. Energy Innovation Policy and Technology LLC is nonpartisan. When you say you’re non-partisan, that screams partizanship. [00:08:16][25.4]

Michael Tanner: [00:08:17] Is that why we’re out there writing a mission statement and you claim you’re not something that screams, you are something you’re going out of your way to tell me you’re not Partizan, you’re probably Partizan. That’s beside the point. There are non-partisan energy and climate policy think tank. [00:08:31][13.6]

Michael Tanner: [00:08:31] We provide customized, customized research, which means we provide specific outcomes based upon our inputs or based upon our prior hypotheses. So we provide customized research and policy analysis, decision makers and thought leaders to support policy design that reduces emissions at a speed and scale required for a safe climate future because we are all going to die. So that’s who’s telling us calls back the people who are on a mission, who are thought leaders and are attempting to create policies that reduce emissions at this speed. I mean, it’s just word garbage. What? I want to puke reading this. [00:09:06][34.6]

Stuart Turley: [00:09:06] Well, it’s a word salad. And and here’s here’s where you know, you’ve heard me talk about my interview with Don Deers. [00:09:13][7.1]

Michael Tanner: [00:09:14] Maybe. [00:09:14][0.0]

Stuart Turley: [00:09:14] Absolutely. Think maybe their ideas. Great interview right here. And the the kind of are numbers that they’re leaving off are storage upgrades to the grid. They’re leaving all these things out of that pricing and they’re putting a straight comparison of megawatt output versus megawatt output. That’s not true. And instead, let’s just use the wind turbines as an example. [00:09:45][30.7]

Michael Tanner: [00:09:46] Mm hmm. [00:09:46][0.1]

Stuart Turley: [00:09:47] Wind turbines rated at 2.5 megawatts to achieve the net zero carbon by 2050 is 995,141 wind turbines the U.S. needs. Okay, there’s 28 years, so the average number is going to be 35,000 average that we’re going to need in order to make that number. There’s 5000. 680 has been the largest number of wind farm windmills that we have put in. That does not even include the cost for upgrades to the grid. [00:10:22][35.9]

Stuart Turley: [00:10:23] And that goes back to what we’ve talked about in the past, the additional grid and things in there. So false numbers, if anybody from this report I want to offer to them, come on my podcast. Let’s talk. I want to hear how you did this in and go through this. So I’m going to tag them in this podcast because I want to know who they are. [00:10:49][26.2]

Michael Tanner: [00:10:50] And let’s see who wrote this, The coal crossover. Who who wrote this? They got they got to have the person who wrote this, have them download the one page or let’s see, let’s see what the one page has. Who wrote this? Let’s see. They don’t even have the they don’t even have who the they have all the other on the on the other ones they’ve got who the resources. Here we go. Let’s take a look. Let’s take a look. Coal 3.0. Eric, given Michelle Solomon, Michael Boyle. Let’s find them on our team. Let’s let’s see who the background of these people are. Let’s see if they have any any business discussing coal. [00:11:21][30.8]

Michael Tanner: [00:11:21] Let’s see. Eric. Eric, where are you? My friend? Eric Gohmert, Senior fellow. Oh, this dude looks awesome. Let’s see. Let’s see. He holds a B.S. and M.S. in Stanford at math and physics. Okay, so he’s definitely smarter than me, right? He’s a 15 year career researching quantum gravity and high energy physics. Okay, so here’s my thing. We’ve got a mathematician and a physicist trying to talk about coal. Maybe that’s not a bad thing, but I mean, he’s smart, don’t get me wrong. But all these are Stanford people. This is literally a Stanford. Everyone. Stanford. Stanford. I’m tired of Stanford. Stanford. Go. Here’s somebody else. Here’s somebody else. Washington University. [00:11:59][38.1]

Stuart Turley: [00:12:00] Okay, Let me say this. Stanford is using, I believe, coal. I have to go check. But they were part of the route Reuters Rooters Reuters article where they were using non renewable energy as a university on their campus. I’m going to go fact check that. [00:12:18][17.9]

Michael Tanner: [00:12:19] Okay. Yeah. I mean, I mean, it’s it’s it’s I’d be interested. I’d be interested just because I don’t necessarily. Yeah I’d have I’d I’ve got a lot of questions on this but apparently according to the Energy Innovation and Policy and Technology LLC, coal is more expensive than solar. [00:12:38][19.7]

Stuart Turley: [00:12:39] So. All right. Let’s go to and and again, thank you for that. But I’m going to reach out to them after this show and see we can get them on a podcast. I’d love to have them on there. And then okay, let’s go to the next one to. [00:12:53][13.3]

Michael Tanner: [00:12:53] Talk about fusion with them. Screw coal, Let’s talk vision. [00:12:56][3.1]

Stuart Turley: [00:12:56] Oh, absolutely. I want to know they even like fusion. Fusion? You know, probably not. [00:13:02][5.5]

Michael Tanner: [00:13:02] They’re probably anti-nuclear. I could point to antinuclear. [00:13:05][2.7]

Stuart Turley: [00:13:06] And I should have stopped by when I was out there doing some work, doing some business analyzation out there. All right. Biden’s blood for battery energy agreement incentivized forced labor in African mines. This is about as this impeccable as I’ve ever heard from the Biden administration. It is absolutely despicable. In the link on EnergyNewsBeat.com, A copy of the May MSU memo of Understanding is in there and it is basically the Congo has corruption like you wouldn’t believe. People allege there’s corruption in our political system. [00:13:51][45.5]

Stuart Turley: [00:13:52] They allege there’s corruption in Ukraine, there is real corruption in the Congo. So here we are. We’re signing a memo of understanding now, and we’re going to sign it with some of the most corrupt people in the world, allowing them to charge whatever they want on this thing and even enslave people more. This is like the alleged and I’m using the word alleged because I haven’t seen the documents of Hunter 2.0. You know, when you sit back and take a look, 10% for the big guy, this has the potential to be in there. I’m just throwing that out there. It’s an alley. I mean, these are all allegations are not proven, but this one makes me mad. And here’s why. [00:14:44][51.4]

Stuart Turley: [00:14:44] The next article coming around is titled Shaming In it images that show really where our iPhones, laptops, Tesla cars really come from. The truth about the Congolese mines, where kids are paid $2 a day for cobalt. This is a follow on story and it is despicable for our podcast listeners. Look at that heard, you know, go to the website and take a look, Michael, at that herd. You’re taking a look at that. Isn’t that disgusting? I mean, they’re taking advantage of slave labor. Guess how those people are taking care of slave labor? Those people are getting money from around the world that the government is not passing on aid to the people. They’re pocketing it. Anyway, this one got me worked up. I’m sorry. [00:15:38][53.6]

Michael Tanner: [00:15:39] And this is in, this is, this is did the same, this is such a dichotomy of an issue because on one hand, it’s extremely complex because it’s a cobalt specifically is a mineral we rely on that is literally I mean, I’m looking at one, two, three, four, five, six, seven, eight. I mean, I’ve got eight, eight things in my office here that have cobalt in them. Stu’s got four monitors. I’ve seen your set ups do. I’m counting one, two, three, four, five, six, maybe six on your end. [00:16:10][31.3]

Michael Tanner: [00:16:10] So, I mean, it’s something that is so integrated with our lives and we couldn’t really operate in the manner in which we do without this mineral. So on one hand, it’s complicated because we need this issue. We need this. It’s it’s complicated with the fact that it’s it’s only in certain areas. It’s it’s it’s complicated by the fact that there’s a huge long history in the Congo of other resources being exploited. The fact that they used to be. [00:16:36][25.6]

Stuart Turley: [00:16:37] That’s exactly right. And they’re exploiting it. [00:16:40][3.2]

Michael Tanner: [00:16:40] Well, okay, So it’s complicated on one issue, but then another also issue, it’s very simple. Hey, these people are modern day slaves. You know, they’re not technically slaves. They’re not property of anybody, but they’re in an environment in which 1 to $2 a day keeps them just breathing enough and just living enough so they can show up back to the mine and working. So it’s this sick cycle. And on one hand, on the easy hand, you say, Well, just cut it out, pay them more and all the tough, okay. [00:17:08][28.2]

Michael Tanner: [00:17:10] On the other hand, the issue is we have as the United States, we have no authority to do that. there are no U.S. Mining Companies operating in Congo right now. So the reason why this member, I’m understanding, in my opinion, is good is because it will establish a U.S. Mining presence there. And trust me, there’s going to be corruption when it comes to the U.S. Mine or whatever U.S. Mine goes into. But I promise you, there’s not going to be child labor. [00:17:37][27.1]

Michael Tanner: [00:17:38] And, you know, whether you like it or not, what moves wheels around the world is a bribe. We have a very weird system in the United States where you just do things at face value for people. And you don’t you don’t commit you know, you don’t bribe people. It’s weird. Around the world they do all the time. It’s very open. You just get a kicker here, Kicker here. I mean, they talk about that all over the world. It’s not just exclusive to Africa. So I think the idea of the U.S. moving in and establishing a mining presence is ultimately good because it will raise the level of standards first for the working people. [00:18:12][34.3]

Michael Tanner: [00:18:12] We’ll deal with the corruption later. Well, we’re got to deal with the corruption and the and and all of the stuff that goes around with that. We got to fix the forced labor, which is happening right now. And that’s done, in my opinion, by the United States, getting it, getting more involved. What do we talk about all the times? Do we have all of these people doing oil and gas projects around the world? We can’t do anything here, when in the United States we understand how to cleanly produce the cleanest natural gas and crude oil. What’s the big that same philosophy? In my opinion, you can apply over in Congo if we establish a mine. [00:18:47][34.6]

Michael Tanner: [00:18:47] If the U.S. company establishes a mine, they will not be paying them $2 a day. Trust me, it’s not going to be paying them 40 bucks an hour, trust me. But you know, or two bucks a day, not an hour a day. You know, they’re probably getting a couple bucks an hour. So that’s where I’m going to differ a little bit with you. I do think what’s going on there is a humanitarian crisis, but any steps that we can do to establish a U.S. Mining presence in the Congo, in my opinion, step forward. [00:19:09][21.8]

Stuart Turley: [00:19:10] Okay. I agree with you 300%, 300% on how that happened. However, There’s enough corruption to go around. And I don’t know that we would be able to do that where I believe the right way to do this is to get low cost power to all of the people of Africa through natural gas. And I believe that would be the way to do it. And then that would help fund all the other stuff. So there’s a bunch of political stuff going on and poor old Africa has been taking advantage of for way too long. But great point, Michael. I hadn’t thought of that. All right. [00:19:51][41.5]

Michael Tanner: [00:19:52] Yeah, I’m just trying to to widen your views. Do not never. Not everything’s not everything’s a conspiracy, but it’s funner. If it was just me, it would be butter. If it was. [00:20:01][9.1]

Stuart Turley: [00:20:02] That I didn’t. Everything was alleged. I just said, what if. [00:20:05][3.3]

Michael Tanner: [00:20:07] What? What’s this last. [00:20:08][0.5]

Stuart Turley: [00:20:08] One? Which one was that? [00:20:09][1.2]

Michael Tanner: [00:20:10] I think we’ve got. Last article I’m seeing is Here’s how prosperity ends. Global bubbles are popping. [00:20:16][6.2]

Stuart Turley: [00:20:17] Well, we can cover that one a little bit more tomorrow or the next day. That really kind of hits in to where I’m seeing some things going around the world. Bubbles are starting to pop, and I think this one has some good information, but I don’t think it has. What I need to follow up with you and go through this. There are breaks in the economies around the world. So let’s go into that tomorrow and I’ll try to have some more info for you. Unless you got an idea. [00:20:45][28.0]

Michael Tanner: [00:20:46] Now, I mean, we can cover markets right now. [00:20:48][2.4]

Stuart Turley: [00:20:49] All right. It’s up to you. [00:20:50][0.9]

Michael Tanner: [00:20:50] Did you know? You know, looking at that and the way the markets are lining up right now. S&P 500 up actually about one and a half percentage points. Nasdaq up one and a half percentage point. Mainly, it’s just a run before. As you listen to this, the Fed will have announced what most likely will be a 25 basis points increase. But we wait to see again, as we record this the night before, crude oil actually bottomed out at about 76, 50 currently now trading 73. [00:21:15][25.2]

Michael Tanner: [00:21:16] So a good sign on that front. The the API on Tuesday did drop their crude oil storage estimate. And let me read you I mean the API has swung at miss forecasted 1 million barrel draw. They actually are expecting a 6.3 million barrel build so a lot of crude oil to go around.A lot of natural gas to go around. It’s part of the reason why we’re in this. You know, we’re below a three handle is due to all of this excess supply that’s happening right now that can’t go anywhere. [00:21:43][26.9]

Michael Tanner: [00:21:44] We expect on Thursday to see a pretty wide range of about 67 Bcf of draw down anywhere to about 150. You know, but normally we see about a 280 draw this time of year. So there is ample natural gas supply. Everybody is completely shifted bearish. Trust me, we’ve got you know, people are freaking out right now. There’s a lot of natural gas producers there. Equity and Comstock, they’re having meetings about what’s going on, what’s going on. I mean, they’re a little bit different. You know, gas is a lower cost to produce on a going basis. [00:22:11][27.4]

Michael Tanner: [00:22:11] Now, something can cost a little bit more to drill. But I think the way you look at the landscape, things look pretty bad for natural gas. I mean, there’s a little bit of a bald spur coming in, but then the one should come back in. I think, you know, the tides have turned very bearish and I think it’s going to be very interesting to see how everything plays out going forward. I think there’s. [00:22:29][17.8]

Stuart Turley: [00:22:30] Oh, sorry, Michael, let me ask you. [00:22:32][1.8]

Michael Tanner: [00:22:32] It’s not then ask me away. [00:22:33][0.8]

Stuart Turley: [00:22:34] Anything about the plays or where the drilling comes in, because it’s a lot cheaper to drill a well in the Haynesville than it is in other areas. I mean, it just depends on where it is. So the price for continuing to build your wells and everything else in the Haynesville is cheaper than in other areas and they have that take away. So do you think the folks in the in that area and then those single play companies would be better off? [00:23:02][28.8]

Michael Tanner: [00:23:03] No, I think if you’re a primary gas producer, you’re just getting slammed right now. I think if you’re you know, I’ve been running I’ve been running gas well, economics all day, all day today still, trust me. And it’s it’s hard to slide. It’s hard to slice through it all to 70 strip. Oh, this is not it is what it is like. There’s only you know, wells aren’t unlimited. You’re not going to go out and say, you know, you can’t change the u R of a well. [00:23:27][24.1]

Michael Tanner: [00:23:27] So if you have a you forecasted well six Bcf or just got prices drop, doesn’t mean you can just increase the reserves APC has to make up for the drop in price. No you just deal with the loss in value. So again, this is the industry we’ve all chose to be in. So I don’t necessarily think it’s that. I think more specifically, it’s I mean, come on, laterals are cost in $1,012 million per well. So yeah, you know, you’ve gone out and drilled a bunch of now gas wells, you know, 10 million bucks a pop. [00:23:58][31.0]

Stuart Turley: [00:23:59] But in the Haynesville you don’t have to do those. [00:24:01][1.8]

Michael Tanner: [00:24:02] Well yeah you do. Yeah you do. There’s in there still expensive. You you’re talking about is takeaway capacity and I agree with you you’re probably better off in you know you’re probably better off in East Texas from a takeaway standpoint. West Texas is always tight, even though there is some right takeaway capacity. Now you’re subject yourself to Waha, which is a whole different ballgame up in the northeast there. [00:24:23][20.6]

Michael Tanner: [00:24:23] You know, in the Appalachia area, they still do have they definitely do have takeaway issues, but they’re really dominated by one big player. So so you can kind of manage their asset base as they see fit. So I think it’s more to do with the just you kind of got to sit tight in and ride this thing through. I think, you know, in my opinion the answer is not to get jumpy or do something irrationally. Prices will rebound at some point. Now, the issue is were in winter at $2.70. What happens when we get to, you know, the summer? If this trend continues, we’re going to see a buck 50 gas. I don’t know. [00:24:54][30.9]

Michael Tanner: [00:24:54] You know, it’s limbo. How low can you go? I don’t know. I don’t necessarily think making rapid decisions is necessarily smart, but I do think there are some going to be some companies that have an interesting decision to make, whether or not, you know, I wonder if we’re going to see a huge spike of duck gas wells. That would be my prediction. If there’s one prediction I would give, it’s that on the EIA productivity report, let’s say in March, February time or February, March time, we’re going to see a big increase in the number of ducks. [00:25:18][23.3]

Michael Tanner: [00:25:18] And I think most of them we can attribute to gas. If you were to map them, I bet the most majority of them would be gas wells that were drilled, say, starting in December, that four dollar gas, $6 gas and now are the decision to complete is coming basically now everyone’s running strip and being like barrel and you know so could be interesting could turn out for somebody to come back and buy all these ducks and make a little bit of money off. Could be an interesting play, could be an interesting strategy. But we don’t get financial advice. [00:25:46][28.0]

Stuart Turley: [00:25:47] No, we don’t get quite a good, good one just because those are some good points. Sorry. [00:25:52][4.7]

Michael Tanner: [00:25:52] I know I’m a genius. Do I know I’m a genius? You got to tell me last thing before we let these people go and start a duck scam and Cap and Double Eagle, our favorite private oil and gas company, probably one of the larger private oil and gas companies, Double Eagle, Permian. As you know, they had a $1.7 billion equity commitment from multiple private equity partners. They two days ago and I can’t believe I missed this, announced an additional 600 million in capital commitments from end CAP. [00:26:23][30.7]

Michael Tanner: [00:26:23] And that brings their total capital commitments up to a 2.3 billion. They also were able to establish a reserve based loan through JPMorgan. And a couple other things I’m to give you guys the ideas. Double Eagles, Cody Campbell and John Sellers, both of who are the CEOs, they’re also Texas Tech football graduates. So we won’t hold that against them. As you remember, they were the creators of Double Point Energy, which was sold for 6.4 billion to pioneer natural resources in 2021. So these guys have a pretty big bag. They’ve also, you know, I will say this, one of the reasons I’m a double Eagle fan is these guys put most of their net worth into this new company. [00:26:59][36.0]

Michael Tanner: [00:26:59] So they’re one of the larger men. It’s one of the things, you know, the efficiency of the market. Private oil and gas companies management aligns much more with investors than your public company. Public company. I mean, these CEOs and directors have zero stake in the company, are just clogging the wheel. Whereas, you know, you know, obviously double eagles, a big company. But Cody Campbell, just their net worth is on the line. Their net worth is on the line on this one. So good for them. You know, it does seem kind of funny. As oil and gas prices tumble, you’re establishing a reserve base loan sometimes not a bad thing, though. [00:27:31][31.9]

Michael Tanner: [00:27:31] You get your RBI at a very low rate initially, like you can get your first RBI well at a lower price. Then if prices continue to rise, even the declines of your oil and gas wells will be offset by the increase in pricing. So that’s it can be a smart move. I’d be interested to see what type of hedging they had to do in order to secure this Arbol It’d be interesting to see how much of this is hedged gas and oil versus unhedged. I would bet there’s a decent amount of this book. HEDGE Well, think about it. [00:27:59][27.7]

Michael Tanner: [00:27:59] You’re a bank right now. Right now you’re a bank right now. I’m not letting anybody come in unhedged. Why would you do that? No, I’m surprised there are bills out there that are unhedged. Think about it. So not to get too deep. Congrats to NCAP and Double Eagle. If you guys need to spend money on marketing, please call us. Flush with cash we can help. Your website sucks, so we’ll help you do. Well I won’t. You won’t get my help, trust me. [00:28:26][26.4]

Stuart Turley: [00:28:26] But come on the podcast, I want to talk to you. [00:28:28][2.5]

Michael Tanner: [00:28:29] Yeah, this was. This was the group. I’m 99% sure this was the group that remember 2020 when they were like the one rig running and Trump went out to visit them. I’m pretty sure it was a double point. And Cody Campbell’s I’m pretty sure it was that rig or that this cruise rig. Yeah, 99% sure. [00:28:47][18.2]

Stuart Turley: [00:28:48] I think. I think so. It rings a bell. But then again, I’m old. [00:28:51][3.2]

Michael Tanner: [00:28:52] Old and ugly. What are you to be able to do? [00:28:53][1.6]

Stuart Turley: [00:28:54] I heard a better looking of the two of us here. So all right. [00:28:57][3.4]

Michael Tanner: [00:28:57] Well, you look like John Fetterman. I mean, it’s not hard to you were like, really helpful in your. Fetterman today. [00:29:02][5.4]

Stuart Turley: [00:29:03] I am, but I need my. GRANHOLM So I can do that Founder Grant. [00:29:06][2.7]

Michael Tanner: [00:29:09] The Founder Grant, You got anything else for people today? [00:29:11][2.5]

Stuart Turley: [00:29:12] Know we’re going to have a great day. [00:29:13][1.1]

Michael Tanner: [00:29:14] Also. But with that, guys, we’ll let you get out of here. Get back to work, start your day. Think we’re checking this out. World’s greatest EnergyNews podcast for Stuart Turley. I’m Michael Tanner. We’ll see you tomorrow. [00:29:14][0.0]