Daily Energy Standup Episode #89 – Toxic Waste from Ohio Train Heads to Baltimore

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

Michael Tanner: [00:00:14] What is going on? Everybody, welcome in to another edition of the Daily Energy News Beat. Stand up here on this gorgeous Monday, March 27 to 2023. As always, I’m your humble correspondent, Michael Tanner, coming to you from an undisclosed location here in Dallas, Texas, joined by the executive producer of the show, the purveyor of the show, the director and publisher of the world’s greatest website, EnergyNewBeat.com, Stuart Turley, My man, how we doing? [00:00:37][22.5]

Stuart Turley: [00:00:37] Today is a beautiful day in the neighborhood and I’m sor. [00:00:40][3.3]

Michael Tanner: [00:00:41] I it sounds like you spent all this weekend trying to fix a problem that the government should have solved. [00:00:46][4.6]

Stuart Turley: [00:00:46] So thank you. Got it. We got all got to dig our own wells knowing. [00:00:50][3.7]

Michael Tanner: [00:00:51] Hey, water wells, oil wells, we love it. But that didn’t stop. You stew from coming up and getting some great articles lined up for today’s show. And we were joking right before we hit record. I mean, it’s a pretty Doomsday Day here. I mean, Stu’s got some pretty crazy things. [00:01:04][13.2]

Michael Tanner: [00:01:05] So first up on the menu, we’ve got Biden Reaches Moment of Truth for electric vehicle tax credits. It is it’ll be interesting to see as a stool point out there really is this come to Jesus moment that we’re going to be having surrounding these tax credits Stu will dive into what that means. [00:01:20][15.6]

Michael Tanner: [00:01:21] Next. Significant amount of toxic waste from Ohio train derailment heads to Baltimore. I mean, East Palestine is is is is going to have some tremendous, tremendous problems going forward, stool color about what’s going on in the toxic waste out there. [00:01:35][14.2]

Michael Tanner: [00:01:35] Next, we have LG Energy Solutions to spend 5.5 billion on U.S. battery plants. That is great for the manufacturing sectors. Stu will cover what that means. Next, a little bit more of a regional finance story, but the U.S. weighing expanding Fed’s emergency liquidity program to stabilize first Republic and other regional banks. Dun dun dun. I mean, we could spend hours talking about this, but Stu will dive in to specifically this lending program and what this means for the markets going forward. [00:02:01][26.3]

Michael Tanner: [00:02:02] Next, As we sell off our strategic oil reserves, ponder this another dun dun dun. I will be left to ponder because it’s towards the end of the Rolodex on the show. But I still will lay out what it does mean for selling our Strategic Petroleum Reserve. [00:02:17][15.2]

Michael Tanner: [00:02:17] He’ll kick it over to me. I’ll briefly cover what’s going on in there natural gas and crude oil markets on Friday, and then we’ll opine a little bit about what might happen this week, guys. But before we do all that again, check us out at the world’s greatest website www.EnergyNewsBeat.com all of the articles we’re about to cover are courtesy that website You can hit the description below and see the links to all of the stories we have timestamps if you want to jump ahead and already and you don’t want to ponder any more I just figure out what I what this fed or what selling strategic petroleum reserves means go ahead and click that. [00:02:48][30.6]

Michael Tanner: [00:02:48] So guys, you could do that in the description below. Our team does a great job of making that and keeping that updated. As always, you can go to Dashboard.EnergyNewsBeat.com our data and news combine it get it while you can again www.EnergyNewsBeat.com. I’m out of breath though Stu where do you want to begin? [00:03:05][16.9]

Stuart Turley: [00:03:05] Oh I don’t know. Today is going to be a lot of fun. You got to love Mondays, but be you always got to just love. President Biden is a never ending source of fun. Biden Reaches a moment of Truth for electric vehicle tax credits. All right, the lawn the this is worth your time to take a look at it because Michael and we have talked about electric vehicle taxes in the past when the $7,500 tax credit came in, automakers raised their price, $7,499. [00:03:40][34.4]

Stuart Turley: [00:03:42] So this one right here, specifically, the law says electric vehicles can qualify for the full $7,500 credit. At least they have half of their battery components are made in North America and 40% and the raw materials are extracted or processed domestically in countries. The U.S. has free trade agreements with. Holy smokes. [00:04:07][25.0]

Michael Tanner: [00:04:09] And he’s got he’s got until March 31st to decide so I think that’s sort of the sort of the ledge is getting closer and closer because he’s got to decide and there’s all these different competing interests. [00:04:19][9.9]

Michael Tanner: [00:04:19] Again, automakers, they’re going to want this tax credit that allows them to lower cost and maximize government support. It says this right here. Most automakers, which would want lower cost to maximize government support to help sell as many EVs as possible, have been discreet about trying to drill holes in mansions, rules, doing most of their persuasion in private. [00:04:36][16.8]

Michael Tanner: [00:04:36] So what’s this mean? So Senator Joe Manchin shocked Washington by clinching a left four dead climate deal. Lobbies have tried to tweak the rules around just how much content carmakers and their suppliers will have to source domestically. The Democrat from West Virginia is repeatedly criticized there as saying, he says it will sacrifice U.S. Energy and National Security in the name of fighting Climate Change. [00:04:56][19.5]

Michael Tanner: [00:04:56] So the battle is really over where we source these funds. Of course, West Virginia Joe Manchin, he’s going to want those products sourced mostly from America. Automakers don’t really want that because it’s a lot easier to go to Congo and get lithium there than it is to try to find it and source it. Here. [00:05:11][15.2]

Michael Tanner: [00:05:11] And unfortunately, China has done a great job over the past 20 years to acquire a lot of these minerals. So as it mentions, the Treasury Department’s unbelievable task has been has been to try to balance these competing interests, which really are on both sides of the aisle. So it’s going to be fascinating what they decide. [00:05:27][15.8]

Michael Tanner: [00:05:28] And it could we could very I mean, we saw a version of what they did with the Willow Project. They approved it. But then virtue signaled that we’re not going to do anything more. Could we see that here? Could it be a short term win and then a long term, hey, here’s what we want to do. I don’t know. [00:05:43][14.9]

Stuart Turley: [00:05:43] It’s going to get ugly and part of the problem is the supply chain and I in this article I will embed before actually when we film this all in bed later on of film of kids in the Congo, mining for lithium and getting trapped in a mudslide and you could just see them being pulled out. That is critical. Okay. [00:06:04][20.7]

Michael Tanner: [00:06:05] What’s next? [00:06:05][0.2]

Stuart Turley: [00:06:06] Boy, I was sitting here about ready to go on a ramble again here but let’s go ahead and go to the Significant amount of toxic waste from the Ohio train derailment. Heads to Baltimore. Michael. Mayor Pete should have stayed a mayor. And I am sorry for saying that, but the train derailment is turning out to be absolutely an abysmal mess, which is worse. [00:06:32][25.9]

Stuart Turley: [00:06:33] The train being derailed and causing one of the biggest, worst natural disasters in the United States or the incompetent cleanup of this. They are hauling tanker load after tanker load after tanker load over to the Baltimore for disposal, just like they were trying to get away with it by going to Texas and then another spot. [00:07:00][27.4]

Stuart Turley: [00:07:00] But you know what they’re doing now, Michael? They are burning this stuff in an incinerator and funneling all the dirt. And then they’re putting in the water in an incinerator 40 miles from from East Palestine. I covered that in several articles with interviews with Matt Cody, president of the Oilfield Workers Association Dr. Matt Chalmers, and our Ray Trevino podcast host for The Crude Truth. [00:07:30][29.3]

Stuart Turley: [00:07:30] The problem is those fumes are going up and it’s causing even more damage. Quote from Dr. Thomas It is easier to clean up nuclear spill waste from from nuclear waste than it is to clean this up. More people will die from cancer. Sorry, this is not being talked about. I’m getting ramped up here. [00:07:55][24.3]

Michael Tanner: [00:07:55] There’s also this interesting part so the company that’s taking all of this toxic fumes, it’s called Back River Wastewater Treatment Plant. It’s in Baltimore County. It’s set to receive over 65,000 or 65,000. Yes, 60 no, 675,000 gallons of toxic water. Guess what? They’ll recoup. [00:08:14][18.6]

Stuart Turley: [00:08:17] This. [00:08:17][0.0]

Michael Tanner: [00:08:18] I should laugh, but come on. [00:08:20][1.9]

Stuart Turley: [00:08:21] Okay. Mayor Pete can’t keep things going. He is incompetent. I don’t really like saying that he’s an incompetent. [00:08:30][8.8]

Michael Tanner: [00:08:31] I don’t think this is okay, Which is worst? [00:08:33][2.0]

Stuart Turley: [00:08:33] This is Michael, but it’s. [00:08:35][1.5]

Michael Tanner: [00:08:35] Not. The derailment is not his fault. But the fallout from the derailment you can completely pin on him. So we will we will agree slightly on that. On on your thesis. You know, I don’t necessarily think, you know, looking back, you can’t you know, this this just happened like this is this is this was this was probably due to if you want to be really real, the union changes in terms of the amount of rail workers that we had relative to what happened in the Trump administration. [00:09:02][26.8]

Michael Tanner: [00:09:02] So there’s anyone to actually blame for the derailment. You actually can look back at former administrations who kept upping and upping and upping the amount of requirements that it would take to do and lowering the amount of personnel they need on these trains. But since the disasters happened going forward, it’s been a complete failure on the Biden administration. And we’ll agree there. [00:09:18][16.4]

Stuart Turley: [00:09:19] Will agree to disagree and there are things that we will hold on a different podcast and go through it but we at least we both. [00:09:28][9.0]

Michael Tanner: [00:09:28] In Dark Fleet. [00:09:29][0.4]

Stuart Turley: [00:09:30] The Dark Fleet. But boy, I guarantee you, even though Michael, they absolutely took a disaster and then not only did they pee on it with gasoline, they put a nuke on that dang thing and then they made it worse. [00:09:42][12.1]

Michael Tanner: [00:09:42] I agree. Mayor Pete’s an idiot. McCain Agree there. [00:09:45][2.9]

Stuart Turley: [00:09:46] Okay, got it. Move on. Let’s go to the next one. Back to lithium out of the Congo and in kid, child labor and everything else, LG Solutions to spend 5.5 billion on US battery plants. Michael, this is actually a good and bad thing. Good that the United States is bringing in industry. We do need the storage if we’re going to continue down the renewable which is almost guaranteed you’re going to have to. [00:10:14][28.0]

Stuart Turley: [00:10:15] You can’t use wind and solar without it. But when we’re printing all this money, fry battery out of Norway is coming in. I’ve made some fry. Good, good people. They’re going after the renewable recyclable battery market, which is huge. So you don’t have to dig people out of the people digging out of the Congo. [00:10:34][19.2]

Stuart Turley: [00:10:35] On this one, though, Michael. GM and LG have canceled plans to build a fourth plant in the US as the battery maker didn’t want to commit to GM’s timeline. But they are going through this. Demand for EV batteries has risen significantly. I’m hearing from a different article that they’re now getting even more nervous because of the inability of the administration to figure out the tax credit problems. So if we want the investments coming in in the U.S., he’s got to fix his indecision going on. [00:11:10][34.4]

Michael Tanner: [00:11:10] Yeah, And I think it’s just going to be interesting. Again, this is a battery facility where they mining the materials. They get into this factory. I think that’s really the key. And yes, I think it’s great we’re on shoring a little bit of the battery production. It’s going to be a race. Where do you actually find the raw minerals? [00:11:26][15.9]

Stuart Turley: [00:11:27] Exactly. Okay, Let’s go to the next one. U.S. Ways Expanding Fed’s Emergency Liquidity Program to Stable First Republic and Other Regional Banks. Michael, this is a can of worms. This is almost giving license for any banker to be an idiot and no, but maybe, maybe Mayor Pete goes and becomes a banker. I’m not sure. [00:11:51][24.2]

Michael Tanner: [00:11:52] Yeah, I don’t mean to like, call myself brilliant, but I went on a little mini rant last week on the podcast about this little fact within the announcement when they say SVP, that they will cover Treasury bonds at or in the short term. [00:12:07][15.1]

Michael Tanner: [00:12:07] That’s it. That’s this program that they’re talking about in this article is the only basically be on the matter what the what the market value of your bonds are whether or not you’ve loaded up and you’ve loaded up on Treasury bonds and rising interest rates are hurting you, which remember, we saw 25 basis points last week, too. Now, the way the market looks, if interest rates have to continue to rise, which maybe not be interesting to see what happens, this is only going to get worse. [00:12:34][27.3]

Michael Tanner: [00:12:35] And this look in this borrowing window, this liquidity financing program at these small regional banks and larger institutions have access is going to have to stay open indefinitely. I mean, it’s just a new version of quantitative easing and it’s we’re inventing new ways to give. You know, it’s not normal. It’s not QE. [00:12:53][17.9]

Michael Tanner: [00:12:53] We can’t call it quantitative easing because that’s got a stigma to it, but we can call it a emergency liquidity program or what what are they calling it? Emergency lending Facility? B.T.F.P That sounds just more technical and, you know. Okay, fine. [00:13:09][15.2]

Michael Tanner: [00:13:09] Quantitative easing sounds like some marketing guy spun it on you and so I think people got weary of that. This they just went too technical, too. We were like, okay, whatever. It’s like now it’s literally the same thing. [00:13:19][10.3]

Stuart Turley: [00:13:20] Yeah, but I’m I’m still not feeling groovy about this one way in. [00:13:25][4.7]

Michael Tanner: [00:13:25] The movie about it either. I’m just saying they’re inventing new ways to print money and, you know, it’s quantitative easing, getting off the gold standard emergency Fed lending program. I mean, what’s next? They’re just going to actually say that we’re printing money. [00:13:39][13.6]

Stuart Turley: [00:13:40] That’s exactly what it is. [00:13:41][1.0]

Michael Tanner: [00:13:41] They’re just going to come out and just say it for another 2 trillion. [00:13:46][4.4]

Stuart Turley: [00:13:46] Yeah. What’s a what’s another couple of percentage points of inflation between friends? Pakistan is up to 68% inflation right now. Oh, we’ll be right behind them here. All right. Let’s go to the next one before I get airsick. Oh, speaking airsick As we sell off our strategic oil reserves. Ponder this. Okay. For those aghast listeners, ad at home, check this out. Check my mic. I did that. See that? Looking at Mike, I got to. I got to. I did that sound horrible. [00:14:19][32.7]

Michael Tanner: [00:14:19] Put the mike back next to you. [00:14:20][1.0]

Stuart Turley: [00:14:21] How’s that? That better? [00:14:22][0.9]

Michael Tanner: [00:14:23] Yes. You were just. You were too far away. [00:14:24][1.5]

Stuart Turley: [00:14:25] No, that. [00:14:25][0.4]

Michael Tanner: [00:14:25] Happens, guys, when you get this what happens when your co-host was a colonel in the Civil War? [00:14:30][5.2]

Stuart Turley: [00:14:32] I was dodging a bullet all right, we can cut that part out if you want to. [00:14:37][4.9]

Michael Tanner: [00:14:37] I don’t care. Just keep going. [00:14:38][1.0]

Stuart Turley: [00:14:39] This one of Biden’s answers to combating higher gas prices was to tap into the oil reserves. We all know that he only tapped in. Let’s go through some of those numbers. We all know how bad it is. It was the SVR was established in 1975 due to the 1973 oil embargo. It is now at the lowest rate since 1980, I believe is when it is. And he basically used this to. Also lower the gasoline prices before the election. Michael, they said they would start buying it at, what, 65, 70. [00:15:20][41.0]

Michael Tanner: [00:15:21] $71 and 6920. And they can’t get funding for. You have to do that. You have to give them credit. They’re sticking to their guns and we’re not buying. I mean, it’s kind of crazy. [00:15:31][10.4]

Stuart Turley: [00:15:32] But they took all the money that he did and put it and spent it outside of budgets. So they basically stole the money and funneled it now. Okay. Okay. [00:15:44][12.3]

Michael Tanner: [00:15:45] Okay. I’m not going to. Okay. [00:15:47][1.8]

Stuart Turley: [00:15:48] All right. Steal this allocation, you know, whatever you want to call it they misallocated or reallocated to programs. [00:15:56][7.3]

Michael Tanner: [00:15:57] That’s a big difference between stealing is stealing. [00:16:00][2.9]

Stuart Turley: [00:16:01] You know, whatever it. [00:16:03][2.0]

Michael Tanner: [00:16:03] Took. Yeah, I will die on that hill. [00:16:05][1.8]

Stuart Turley: [00:16:05] No, I won’t either. I’m just. I’m really pathetically upset by this. I’m. [00:16:10][4.7]

Michael Tanner: [00:16:10] I’m upset that they’re not refilling. I mean, obviously, I think lowering the volumes of the SPR wasn’t a swift move. But you saw very you saw it was political. They want they needed to lower oil prices in order to help themselves in the midterm. [00:16:23][12.6]

Michael Tanner: [00:16:23] And quite frankly, energy inflation was getting so bad that you could have argued maybe some. That’s partly why you do have a little bit of reserve to help slowly tap the markets. Now, bringing it down to the levels that was that that it’s at now is a dumb idea. [00:16:37][13.9]

Michael Tanner: [00:16:38] The fact that they’re not going back and saying, hey, it’s at 71, we originally said we feel at 71 and they’re not doing that just shows me there’s a moving target over there and they don’t really know what they’re saying. They’re living in a what I would call it day by day, where there’s no plan over there. They’re just saying things to get them to the next stage where then the next decision point moving forward, there’s no second, third, fourth order of thinking over there. [00:16:58][20.4]

Stuart Turley: [00:16:59] No, the only order they can think of is what they’re going to get from DoorDash that evening. They’re. It’s absolutely pathetic. [00:17:05][6.7]

Michael Tanner: [00:17:06] DoorDash. Postmates Postmates guy. So if we’re doing an ad for me, so I Postmates all the way. [00:17:16][9.4]

Stuart Turley: [00:17:17] There you go. Anyway, thanks for letting me rant. [00:17:19][2.2]

Michael Tanner: [00:17:20] Yeah, no worries. You got anything else? [00:17:21][1.4]

Stuart Turley: [00:17:22] If I did, I’d be pulled off the air. [00:17:24][1.8]

Michael Tanner: [00:17:25] Yeah. I mean, technically, we host this ourselves, as does the FCC. Can they tell us what to say? [00:17:30][5.0]

Stuart Turley: [00:17:31] Oh, no, I can. Yeah, you can. [00:17:34][3.1]

Michael Tanner: [00:17:35] Okay, I will. We’ll all go and flip over to finance. Guys, There is. There is not much to talk about other than what happened on Friday. We actually did see a fairly positive day. SPI was up by a half a percentage point. Nasdaq up 3/10, four percentage points on the dollar index raises a half a percentage point, yields down on ten year yields down about a half one and one and a half percentage points on the 30 year fixed up 1.3 percentage points. [00:17:59][24.4]

Michael Tanner: [00:18:00] Crude oil tumbled down and it was above it was all the way up to about 72. On Thursday, we saw a tumble. The 69 of 20 markets still haven’t opened here as we record this on a Sunday. Natural gas still trading at $2 in one sense. I mean, I think from a crude oil standpoint, again, as the dollar goes, so will crude oil. But inversely. [00:18:18][17.9]

Michael Tanner: [00:18:18] So as the dollar gets strengthened as inflation continues it, as that as the stronger the dollar gets, so got oil will get more cheaper and vice versa. So we mean, that’s really what you’re looking for in terms of moving forward in the crude oil markets. It’s clear that the supply demand balance isn’t necessarily as strong as the overall recessionary fears and what’s going on in this entire banking sector. [00:18:43][24.5]

Michael Tanner: [00:18:43] I mean, if if we start seeing and when we talked about this last week and I think I think if you listen to the weekly roundup on Friday, we played one of these segments, but there there are talks of currency getting or oil getting traded in currencies. It’s not U.S. dollars that would be spicy. And if we start seeing that we had this summit, who knows what the fallout from this Russia Chinese summit is? I mean, if those two team up. [00:19:09][25.6]

Stuart Turley: [00:19:09] It’s already done they’re already doing it. [00:19:11][1.9]

Michael Tanner: [00:19:12] So there you go. I mean that now, is that a sustainable model that will happen? Shaking his head. Yes. I’m kind of like, I don’t know. But because the problem is the one at the end of the day, China controls their currency and openly admits they control their currency. [00:19:31][19.5]

Stuart Turley: [00:19:32] Right. [00:19:32][0.0]

Michael Tanner: [00:19:32] I’m not too terribly convinced the world is going to all of a sudden be switched to using a currency that is openly controlled by a hostile nation. I think part of the reason why the dollar has become what it is, is, yes, it’s controlled. It’s viewed as not controlled, rightly or wrongly, as one of my old mentors says, right or wrong or indifferent, it’s viewed as being not necessarily controlled and more of a free float fiat currency. [00:19:59][27.5]

Stuart Turley: [00:20:00] I would agree with you until current political times. Now, the dollar is being viewed as a potential sanction. What’s the difference between the U.S. and China right now? Nothing. So, no, what you’re seeing,. [00:20:17][16.8]

Michael Tanner: [00:20:17] We’re stupider there. [00:20:19][1.2]

Stuart Turley: [00:20:19] No way. You know, I had to go to politics. You know what? What you’re saying, Michael, is the simple fact that the political weaponization of the dollar is going to be its downfall, and they do not care. [00:20:40][20.6]

Stuart Turley: [00:20:41] So India is buying off ruble they are buying using Russia. They are bypassing the international monetary swift, the exchanging of money. They’re bypassing that to get around sanctions. Iraq, Iran, Saudi Arabia, India, Venezuela are all now trading currently outside of the U.S. dollar. It’s working. [00:21:08][27.1]

Michael Tanner: [00:21:09] Well, it’s it’s it’s it’s it’s still a small percentage of the trends. So that’s so yes, they’re all doing it. But how much of the trends it’s it’s less than 10%. [00:21:18][9.0]

Stuart Turley: [00:21:19] Is it who’s are the two largest buying sources right now? [00:21:22][3.6]

Michael Tanner: [00:21:23] United States. [00:21:23][0.4]

Stuart Turley: [00:21:24] Now buying Who’s buying. [00:21:26][1.8]

Michael Tanner: [00:21:26] China’s wine? China’s wine? [00:21:28][1.5]

Stuart Turley: [00:21:28] India. They can both buy outside of the dollar then you have the Dark fleet, the Dark fleet 450. Hang on before you throw up and hit your head on the table. Dark, dark fleet trouble you are. Okay, now, listen. When you go to the dark side and you go to the Dark Fleet, OPEC and OPEC+ may lose total pricing ability because if you take of the 900 bankers that are left, we had 1000 to our ballpark number I’m going to go fact check myself after this. [00:22:05][36.4]

Stuart Turley: [00:22:05] And we’re now we’re losing 30 to 50 out of the normal fleet and they’re going to the dark side. Those are sustainable numbers. You can calculate how much oil is coming out of everything else that I just explain everything. And I hear you just got airsick. [00:22:23][18.3]

Michael Tanner: [00:22:24] I just heard Darkside and I just can’t take it. We got to to you as the more as a marketing genius, you’ve got to come with a better marketing name plan, because every time I your dark Fleet, I just I, I’m instantly on patchouli thinking about Darth Vader. [00:22:38][13.9]

Michael Tanner: [00:22:38] And it just it doesn’t to add to my head don’t put together but I say all that we have this and I appreciate that that’s a reader of course does right You know as we move to a world in which the dollar, the petro dollar is less important, we’re going to see much more wild swings in the price of oil. [00:22:58][19.4]

Michael Tanner: [00:22:58] And we may like the fact that for a time period we had $70 oil because it could get a lot worse. But it also, again, who knows what will happen. We seen Goldman Sachs come out, revised their Q3. Q4 prices, unfortunately, still didn’t get the job. They were looking for somebody a little too bearish. [00:23:14][16.2]

Stuart Turley: [00:23:15] They still could afford me. [00:23:16][0.8]

Michael Tanner: [00:23:17] Yeah, you know, they’re still trying to get me over there. Not gas. That’s still we’re trading at $2.18. Not looking good. This you got to remember November, December, I was pound 20, 22. I was pounding the desk for higher natural gas prices and they’ve only tanked to now. And really, when you look at the overall natural gas view, it’s really a worse oversupplied. [00:23:38][21.3]

Michael Tanner: [00:23:40] This is much more of a supply demand issue in which there’s not much export capacity, even with three point turned off, turned online, all due to be Saturday. That’s nothing compared to the amount of volume that’s getting cranked out. [00:23:51][11.3]

Michael Tanner: [00:23:51] And that was built up all those gas rigs that started drilling wells back six months ago. They’re all now coming online at a point where we’re moving into summer. I mean, injection season is going to be crazy. I think we see gas prices fall even further. I would I wouldn’t be shocked if we saw a dollar 50. And then then we have a. [00:24:09][17.8]

Stuart Turley: [00:24:09] Rig count with very. [00:24:10][0.8]

Michael Tanner: [00:24:10] Interesting choices to make. What’s up? [00:24:12][1.2]

Stuart Turley: [00:24:12] Rig count went up again last week. [00:24:14][1.5]

Michael Tanner: [00:24:14] While they drill and there’s not gas rigs. Trust me, it’s oil rigs, because I think right now, if there if you have if you have tier one acreage, why not drill makes sense. You can still find good returns. Now, tier two, Tier three, some of this fringe acreage. Yeah, we will go to a year. That’s how I think, you know, maybe, maybe not. You know what I mean? [00:24:40][25.1]

Michael Tanner: [00:24:40] But I mean, you’re all still going to be if prices drop 65, 60 for a sustainable period, maybe 50, 55, 60, you’re going to see much new drone. You might see a rig or two, but it’s not going to be like this. Prices are probably at their floor for maintaining the level of rigs. [00:24:58][18.2]

Stuart Turley: [00:24:59] Right. [00:24:59][0.0]

Michael Tanner: [00:24:59] If we go much lower, you’re going to see that rig count drop. If these prices go up, you probably see more rigs floating. But I think that’s that’s going to be the story on rigs. And the story on natural gas is it’s going to be high and we’re over. So. Woops. [00:25:11][11.3]

Stuart Turley: [00:25:12] Oops. [00:25:12][0.0]

Michael Tanner: [00:25:13] What do you got to do? Anything else? We let him go. [00:25:14][1.8]

Stuart Turley: [00:25:15] No, I just. You got to get a Band-Aid on your forehead from having your hand hitting your mike on your forehead and my bosom today. [00:25:22][7.6]

Michael Tanner: [00:25:24] The Dark sleet. I guess I’m gonna to go take a visit to the Dark Fleet, guys, but we appreciate you checking us out, guys. Have a happy Monday for Stuart Turley. I’m Michael Tanner. Thanks for checking us out. We’ll see you tomorrow. Enjoy the Dark Fleet. [00:25:24][0.0]