Daily Standup Top Stories
Why Advertisers Are Returning to Big Oil Despite Net-Zero Pledges
ENB Pub Note: This is an excellent article from Irina Slav on Oilprice.com. While the title says advertisers are returning to big oil, I would add investors to the list. I have written several articles […]
Chinese Lithium Battery System Took down South Korean Intelligence Agency, and Texas has 1200 of these installed
For all of the Green Energy fans, there is a wake up call for security concerns.
Dallas Fed Survey Reveals Unrest in America’s Shale Patch
ENB Pub Note: This article is from David Blackmon’s Substack, and we recommend subscribing. This brings up a huge discrepancy between “Drill Baby Drill” and what is actually happening in the oil and gas industry […]
U.S. Shale Costs to Soar to $95 per Barrel Within a Decade
The U.S. shale oil industry, a cornerstone of global energy supply, is facing a pivotal shift. According to recent analysis from energy intelligence firm Enverus, the marginal cost of U.S. shale oil production is projected […]
Occidental Petroleum in Talks to Sell OxyChem Unit, FT Says
In a significant move that could reshape its portfolio and bolster its financial health, Occidental Petroleum Corp. (NYSE: OXY) is reportedly negotiating the sale of its petrochemical division, OxyChem, in a deal valued at a […]
Highlights of the Podcast
00:00 – Intro
00:12 – Why Advertisers Are Returning to Big Oil Despite Net-Zero Pledges
02:25 – Chinese Lithium Battery System Took down South Korean Intelligence Agency, and Texas has 1200 of these installed
04:37 – Dallas Fed Survey Reveals Unrest in America’s Shale Patch
14:08 – U.S. Shale Costs to Soar to $95 per Barrel Within a Decade
21:19 – Markets Update
21:46 – OPEC+ is poised to slip further below oil output target
22:43 – Exclusive: OPEC+ plans another oil output hike in November, sources say
25:15 – Occidental in talks to sell OxyChem unit for at least $10 billion, FT reports
28:53 – Outro
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Video Transcription edited for grammar. We disavow any errors unless they make us look better or smarter.
Michael Tanner: [00:00:00] Is big oil back in vogue? Next on the Energy Newsbeat standup. [00:00:03][3.6]
Stuart Turley: [00:00:12] Why advertisers are returning to big oil despite net zero pledges? This falls on the heels of Trump week at the UN. Advertising firms are following banks and retreating from net zero comments, prioritizing business with bank oils. Financial realities and AI disruption are pushing agencies to secure reliable, high paying clients in the energy sector. Michael, this also ties into several of my articles that I’ve been writing about. Investors are rolling away from renewable energy to oil and gas because what matters to investors returns. Who’s been given billions of dollars of returns? Advertisers want returns. And this was an outstanding story by Irina Slav on oilprice.com. She laid it out. The Financial Times reported this week that advertisers are going away from bankers rephrasing their decarbonization messaging on websites and rediscovering the energy industry as a client. You can’t buy this kind of entertainment, Michael. [00:01:20][67.9]
Michael Tanner: [00:01:20] Yeah, and this actually a lot of this stuff actually comes from the Financial Times. They cited a climate campaign organization called Clean Creatives showing that advertising and PR agencies have actually boosted the number of contracts within the energy industry with clients over the past 12 months. So everyone’s falling back in love. I mean, we’ve seen it here. We’ve never been busier on the energy news beat side. Guys, we can definitely help with all this, too, if you guys are interested getting your story out. Stu does a great job of that on his podcast. But it again, Stu goes to show you like you were talking about and like what we’ve been saying at some point, the market corrects itself. The beautiful part about working in a free market is that it’ll eventually correct itself. Yeah, there may be some up downs. Nothing’s ever a perfect straight line, but the market always wins. And you’re seeing it exactly right here. If Clean Creatives is coming out and saying, well, everyone’s diving back into advertising for oil and gas. Well, that’s probably a signal. [00:02:16][56.6]
Stuart Turley: [00:02:17] Speaking of that, it’s a good thing to contact either me or you and become a sponsor of the show because we have such fantastic reach. Speaking of fantastic reach, let’s go to this next story. Chinese lithium battery took down South Korean intelligence agency in Texas has 1200 of these things installed for the green energy fans. There’s a wake up call for security concerns. Michael, this was a really a big incident that this was like a small data center starting incident raised arms in South Korea’s National Information Resources Management Agency in Daejeon on September 26, crippling dozens of government systems. And there are rumors out there that it was remotely. Heated up by cyber attack, but that’s not confirmed. I have put that it’s not confirm in there, but we have 1200 of these silly batteries that are in here. It is a C a T L’s rechargeable Lyon system that are in big battery systems in Texas. And this is absolutely so. Any data center that has five gigawatts of storage capacity on in this one project can be taken down remotely. By these things, you know, you got to really double check your equipment with this thing. So when you’re doing a project, make sure you got good ideas and good information on your equipment that you’re putting in. I do want to stress this one thing. The South Korean fire, while not directly linked to the Chinese, it serves as a cautionary tale. You and I talked about all of the problems that the Chinese have been putting in over the years. We even talked about when the balloon was going over and how it possibly connected to the 492 major grid interconnects that are susceptible to being remotely shut down. I’m not saying the grid is going to be shut down tomorrow, but have a plan. If you’re a CEO of a company, understand your grid and your. Business needs for energy. If you don’t know, call me and let’s get you hooked up with some folks and get you set up with some backup power or something, whatever you need, but make sure you have a plan. [00:04:32][134.9]
Michael Tanner: [00:04:32] Yeah, absolutely. I don’t have much. I want to really talk about this next one here. All right. [00:04:37][4.6]
Stuart Turley: [00:04:37] Dallas first fed survey reveals unrest in America’s shale patch. Michael, this was a big one, especially because this came from David Blackmon substack, and we recommend subscribing to him. However, this brings up the biggest point drill, baby drill. And then compared to what’s really going on in the oil and gas industry. And this Friday, I have David Blackmon and Josh Young. We are going to talk about the state of the oil markets coming up. We’re going to be live on X. YouTube and LinkedIn in his remarks this week. President Donald Trump reminded the UN General Assembly, we have an expression drill, baby drill, you know, that’s what we’re doing. But according to 80 percent, this is out of the David Blackmon article. According to 80% of the dozens of shale oil executives who responded to the third quarter oil and gas companies by the Dallas branch of the Federal Reserve. That’s all about to come to an end, thanks in large part to the president’s focus on cutting oil prices and means of controlling inflation. The uncertainty from the administration policies that put a damper on investment in the oil patch, one executive said. Another warns that drilling is about to disappear. Executives oilfield service companies aired similar concerns pointing to recent layoff announcements as a symptom of the current market environment. A vibrant oilfield services sector is critical if and when U.S. Needs to ramp up production, one says. This is a big deal. There’s a lot in this article. [00:06:07][90.3]
Michael Tanner: [00:06:07] First off, I love the Dallas Energy Fed survey because a lot of this is done and not a lot. All of it is done under the guise of anonymity. So part of that is people have a little bit more free rein. They feel like they can go at it a little more. But truthfully, I think you get a much better response from people when they’re able to give you comments under the guys of anonymities, because obviously, the last thing you want is any fallout from your investors, from politically. This is unbelievable, Stu. Here’s this quote by one upstream executive. I usually just go straight to the quotes. I do tend to look at some of the statistics, but I always look at the comments. Listen to this, Stu. Basically, the business has been gutted by political hostility and economic ignorance. The previous administration vilified the industry, buried in regulation and cheered the flight of capital under the ESG banner. And now the current administration is finishing the job. I mean, going hard. Here’s one more. This is another one. I mean this is a really, really, really long one. And to finish that quote, he basically says, And this same executive says, Ooh, ooh, that’s a pointed shot across the bow. Can I be honest? I don’t necessarily disagree with that comment, though, but because they operate with little understanding of shale economics. I disagree with that. I think Chris Secretary Wright understands shale economics, but he’s caught between a rock and a hard place. He on his hand, his boss wants $40 oil. And on the other hand, his friends want $70 oil. You’re going to be in this interesting chasm instead of supporting domestic production. They’ve effectively aligned with OPEC using supply tactics to put prices below economic thresholds, need capping American producers in the process. The collapse of capital availability has fueled consolidation by majors pushing out independents and entrepreneurs who wants to find the shale revolution in their place. A handful of giants now dominate, but at the cost of enormous job loss and the destruction of the innovative risk taking culture that made the U.S. Shale indices great. Another quote says, The market swings over 5% up and down, being normal for both natural gas and crude. We sell the spot prices to our near term. Financial performance is unpredictable. There are far too many levers that are being moved at the same time in everybody’s models zooming out at the macro level. It’s no wonder the market is so volatile. And there’s some other interesting stuff. I mean, there’s one guy that talks about California permitting issues, but that, you know, one, I love this. We are very confused as to the effect of the Saudi increases due to the increase in storages. Crude prices are firm. What gives the absolutely the service companies go absolutely even harder at the administration basically? And this one quote says the White House doesn’t know what they’re doing. Tariffs are increasing our supply cost. I mean, they’re going hard in the paints, too. And to be honest, I can’t necessarily blame them because the industry has put it has been put under a huge swing. This goes back to a comment I made multiple weeks ago where it’s really crazy why people in the oil and gas, if you just think about it logically, if you think about looking out for your own, we always say, you know, President Modi, we love him because he’s looking out for the Indian people. Well, if you take that same approach yourself and you look out for yourself, it’s crazy that people in the oil and gas business vote Republican because especially this administration is doing everything they can to actually drive this industry into a worse economic financials. And the fact that they vote conservative shows that they’re actually principled people. They put other peoples in the country’s needs ahead of theirs. It’s it’s really unbelievable. This goes hard in the paint. I highly, highly recommend everybody reading this, too. But I was I was getting a kick out of this, too. This was wild. [00:09:31][203.5]
Stuart Turley: [00:09:31] It is. And there’s a couple of big things coming around the corner on pricing on this. My next article I’ll talk about here in a sec says U.S. Shale cost to sort of ninety five dollars in some basins kind of plays into this. It is a cyclical business. And when you said that there are a variety of issues, this is another quote, affecting our businesses, one response. First, excess in the global oil market is restraining oil prices near term. That is a false narrative because there’s really not an excess in the global market coming up because there is another OPEC increase that is being announced, but there is only one country that really has any spare excess capacity. In fact, we have a million barrels of oil a day of refining capacity that have come offline from Russia. So when you look at the downstream and the oil markets, it is a whole different animal. [00:10:27][55.5]
Michael Tanner: [00:10:27] Yeah, I think it is. But I think what you’re seeing here, in my opinion, is the frustration of the oil and gas industry screaming to get some some help from the administration. I mean, it’s true that they extended the olive branch and helped elect this guy. And now all of a sudden they even got one of their own, theoretically, Secretary Wright, into the position of whispering in the ear of the president. Yet everything they do is anti oil and guess it really is crazy. But the. [00:10:57][29.3]
Stuart Turley: [00:10:57] I agree and I disagree, because I think. [00:10:59][1.9]
Michael Tanner: [00:11:01] President Trump, it’s. [00:11:01][0.6]
Stuart Turley: [00:11:01] He’s not going to jump out of the screen and strangle. I’m not criticizing President Trump because President Trump’s drill baby drill is not happening. I’m. Not trying to even say that I’m saying he does not understand the oil market. And when he does. Not understand that you can sit there and say drill baby drill. [00:11:18][16.9]
Michael Tanner: [00:11:20] Now, what’s funny is we’ll see in my segment, you know, rig count frat counts are both up, so maybe something is going on, but that has more to do with pricing. I my last point here, the big defining theme from the Dallas Energy Ed survey is noise and chaos. There is no stability if. At least when the Democrats are in charge, we know things are going to suck and it’s just a level of suckness that we agree to here. We’re up, down, left, right. And I think that’s what the people are screaming about is do. Let’s just get some stability. Even if the stability is lower, extreme prices, this, this person who made this quote is absolutely correct. These 5% daily market swings up and down is on and no, no business will be able to survive no matter what industry you’re in. [00:12:01][41.1]
Stuart Turley: [00:12:01] Okay. It’s a global oil market, not controlled by president Trump or the secretary. The global market is something that is the pricing matrices is something you can’t. So let me go to this next story. U S shale costs. And so when you let me back up to that, you can’t just sit there and blame that on president Trump. He doesn’t understand the global market and that comment also doesn’t understand the market when it is a global oil porous market. I mean, we can sit there and say, there are so many wrong things that are being priced in let’s take Iran, Iraq, and California. Iraq. Is putting in another pipeline to Iran to help them ship more crude out. And I was going to run another story that you and I were going to talk about on that that was including in this so that we could get more oil to California on that. How does all that play into this? Because all of it is a problem. That is a global problem. It’s not just the administration’s problems. He’s trying to clean up four to five years of horrible problems. [00:13:11][69.9]
Michael Tanner: [00:13:13] Let’s get, I mean, yeah. And I don’t think these comments are saying it’s the administration’s or the secretary’s fault for oil. I think everybody knows oil prices, the gold war. But then what you need to do is everything else that runs and also affects the oil and gas business that we can control. There would be nice to be some stability. I mean these tariffs I’m a fan of, but they were rolled out horrible. One day they were here, one day they were here left, right, up, down. Maybe, yeah, again, if there was a clear tariff and I’m not saying they’re not working and I am actually a fan of them. But the problem is if you, if you don’t have a clear policy and one day it’s 10% the next day, it’s 15, there’s a leak over in the New York Times that says it’s going to be 20 if China doesn’t, you know, sneeze with their right hand. Now it’s gonna be 35. The uncertainty on where things are going is, is I think what this is getting at and that’s where I definitely agree with these comments. [00:14:03][50.1]
Stuart Turley: [00:14:04] I see it as negotiation. You see it is calamity. Let’s go to the next story. US shale cost to sort a 95 per barrel within a decade. And I had fun writing this little bit. US shale industry, a cornerstone of the global energy supply is facing a pivotal sick. This kind of goes along that’s the whole thing. The Dallas fed survey caused me to write this article. This forecast signals the end of a relatively low cost shale extraction driven by the depleting high quality reserves. This follows also along the, my good interview with a Tricia Curtis over there at Petro nerds. And we talked about is the Permian, you know, hit peak Permian yet where we’ve not, but costs are going to rise. And Michael, I have a chart in here that is Permian Delaware current break even $55 to $64 cost could rise 20 to 30% is tier one inventory, deplete pushing toward the 75 to 85 and regulations and flaring are really adding pressure. Take a look at the middle and area. There’s other ones. So I broke it down by basin by what is really causing some of their heartaches and I have a feeling these are some of the reasons that that Dallas fed survey had some of those comments in there. [00:15:24][79.8]
Michael Tanner: [00:15:24] Well, absolutely. Cause I think people are seeing this and I think really what this article is talking about is the, is the is really the exhaustion of what are called kind of tier one drilling locations, which are the creme de la creme, the best locations where you can just, you can lay a well, you drill a well. You know exactly what it’s going to get. Cause you’ve got two wells on the other side. You’re in a shale play, you know, depletion, you figured it out. You know what your gun barrel is, all the stuff that, you know, oil and gas engineers and geologists spend years trying to figure out that’s what a tier one location is, but then you have tier two, tier three, tier four. I mean, you have, it’s the same way in real estate. You’ve got your creme de la creme, you’ve got a little bit worse, then you’ve gotten your stuff. It’s not that great and really far out. I think it’s called like class a class B class C you get down to tier three tier four, your class Z sort of material. I mean there, you might not even have air conditioning. You’ve gotten rats running through the facility. So I think, and yes, the, what is happening and I think what’s driving, I think one of the reasons why prices haven’t absolutely plummeted to $40 is the fact that as we were coming into this new administration, we had already exhausted a lot of those tier ones because those are getting drilled. Everyone drills tier one, regardless of what prices are really because it’s a great, because you can make the most amount of money on them. You know, nobody, you know, maybe in $120 oil, you might save some of your tier one in the bank and start drilling some lower end. But that’s to say that you’re a company that actually has enough inventory that’s split out between tier one and tier two. There’s a lot of these independent companies do that. They just have their locations. I mean, they’re it’s, they, they don’t necessarily, you know, their acreage position sits somewhere and they don’t necessarily have the ability to say, well, we’ve got a little bit in this tier one area. We’ve got some down over here in tier two, so we can kind of Jimmy around with the schedule. And I think what’s interesting here is that the shift from tier one to tier two is according to our good friends Blackstone and Varis, they estimate that the shift alone could add $15 to $25 per barrel in terms of marginal costs by the 2030s relative to this. And we just saw, as you said, Stu in the Dallas fed energy survey that I think the industry is echoing this. So you’re right. The, it’s a cyclical business. Prices will begin to shift back upwards. I think. The question is how low do we get on the production? How much does production drop? And you mentioned that great interview you had with, with Petro nerds. I think it’s extremely interesting to think about, and it’s going to be very interesting to sort of see where these wires cross. [00:17:46][142.7]
Stuart Turley: [00:17:47] Oh yeah. I’ll tell you what, it’s kind of entertaining out there. So it is cyclical and the, my oil bowl that I’m about ready to go feed in the backyard. He’s getting kind of hungry. I’m still an oil bowl. Cause I think the prices are going to come back as long as we don’t see world war three and as long, as we can keep Lindsey Graham’s mouth shut, we may be able to survive it. [00:18:08][20.9]
Michael Tanner: [00:18:08] I’m just kidding. I’m just getting a phone call here. Yeah. Oh, Michael Tanner or Goldman Sachs. You’re hiring Stu is their new global oil price analyst. He’s bullish. So we’re good. All right. We’ll we’ll send, send the paperwork. Thanks. It looks like you got yourself a new job, Stu oil bowl. We love it. All right, but I never gave a date. Save yourself, save yourself. [00:18:25][16.9]
[00:18:26] All right? Let’s jump over and quickly cover what’s going on in oil and gas pricing. But before we do that, guys, let’s quickly pay the bills. As always guys, the news and analysis you just heard is brought to you by world’s greatest website, www.energynewsbeat.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 energy and the oil and gas business, go ahead and hit the links in the description below for all links to the timestamps links to the articles and specifically subscribe to the show on YouTube, subscribe to this show on Apple iTunes, give us a follow there. Subscribe to our show on Spotify. Please leave comments there and subscribe to our sub stack. The energy newsbeat.substack.com That’s probably the best place to support the show. Stu does a great job of releasing, you know, two to three articles a week that really encompass the big themes that are going on. We also drop all of our podcasts there, which give a little bit of a breakdown. We just had a great, great podcast. So I highly, highly recommend everybody subscribe to our substack of the energy newsbeat dot sub stack dot com. We’d also like to thank friends of the show Reese energy consulting for supporting the show guys. Reese energy consulting is the foremost midstream expert guys. If you at all are dealing with issues in the midstream space, whether you’re an upstream company and need help. With first purchases contract or renegotiating your gas contracts or figuring out where you’re going to tie in your next pad because you’ve got, you’ve got multiple different options and you’re trying to break it all down. Reese energy consulting and help if you’re in the midstream space, I need an extra pair of hands, need some permitting or regulation help, you know, or need some red team analysis on a final investment decision. Guys, they have the team that can help you check out Reese energy consulting.com. They have clients everywhere and all throughout the country from two people in a garage all the way up to the largest publicly traded companies in the world. So if you’re wondering, are you a good fit for them? The answer is yes. Reese energy consulting dot com. And finally, guys, invest in oil.energy newsbeat.com. We are coming up on the end of the year and I promise you guys, you do not want to be paying money to Uncle Sam. You want to keep as much money in your pocket. You want a diversify your portfolio a little bit and you want to get some dividends. You can do that by investing in oil and gas. Check out invest in oil dot energy, newsbeat.com, fill out our portfolio survey and our tax calculator. And guess what, you guys, you guys are going to get and get a nice ebook that tells you, here’s what you should look for when you invest in gas and also figure out what your tax burden is and figure out how much you might save relative. Your tax burden. If you did invest in oil and gas, guys, we practice what we preach here, guys. We do this stuff ourselves. Invest in oil.energynewsbeat.com. Don’t give your money to Uncle Sam. Figure out and find out if oil and gas investing is for you. Depending on if you qualify, we will again send you all that information and we may or may not point you in the right direction. Again, invest in oil.energynewsbeat.com, you know,. [00:21:19][173.2]
[00:21:19] The oil prices on on Friday, Stu, it was kind of all over the place speaking about the little the Dallas Fed Survey article. I mean, prices started around sixty five bucks spiked all the way up over sixty six dollars to about sixty six thirty settled at about sixty five. Twenty seven looks to open here as the market will open here as we record this on Saturday, somewhere around that sixty five, nineteen mark. But I mean, really, the interesting part was there were two stories that are kind of driving the narrative here. [00:21:46][26.7]
[00:21:46] We saw this on Fridays to OPEC plus poised to slip further below oil output target. This is from our good friends over there at Reuters. OPEX plus has delivered about three quarters of the extra oil output it targeted since the group started the original production heights back in April and that level may fall closer to. Later in the year, as producers hit capacity limits, according to sources and analysts close with the international oil companies and the data that they’ve been releasing. So, Stu, you’ve been preaching about this for years now, and now you’re a little bit vindicated because this is, you know, all of this increases that they’re doing, they’re able to do some of it. But that spare capacity isn’t just there. It’s pretty unbelievable. And there are some being there are some curbs taking place because of oil production. But these next output hikes may only deliver half of what was promised, which is partly what drove oil prices up so heavily on Friday. I mean, what are your insights to this, Stu, because you’ve been on this for a while. [00:22:43][56.7]
Stuart Turley: [00:22:43] The spare capacity, especially when you take a look at spare capacity in Iraq, Iraq is barely hanging on in Kenya. They’ve got so much natural gas, they have to now start importing LNG. Iran is barely hanging on. And then you have Russia that has just been bombed of their refinery capacity. So you look at OPEC plus does not. There’s one of the countries does have a decent amount of spare capacity. But when you look at Saudi Arabia, they are they’ve got some spare capacity. The math thing ain’t mathing up. And so it’s just as long as demand is going to be there in a in India and in China, we are going to see seventy dollar oil. I’m sorry, I’m I hate to ruin everybody’s day, but we will get back there. [00:23:33][50.1]
Michael Tanner: [00:23:34] I mean, no, we will. It’s a it’s a cyclical. It’s it’s a cyclable business. And I think the funny part is is so that article and that that report drops on Friday,. [00:23:42][8.8]
[00:23:43] Then about two hours ago. OK, exclusive OPEC plus plants another oil output hike in November, according to sources. So, you know, you got two sides of the coin. You got you got the angel and the devil on the shoulder, both given opposite stories about what’s going to happen. I mean it’s unbelievable. On Friday, it leaks that, hey, guess what? We don’t actually have spare capacity. And now they’re trying to throw the narrative back the other way. We say, well, wait a second. We’re going to add more barrels to the market. And what they’re claiming here is that OPEC plus is going to approve another oil production increase of about one hundred and thirty seven thousand barrels per day at its meeting next Sunday. So a week from today, as they’ve seen these rising oil prices encourage them to, quote unquote, steal back market share again. I don’t think it has anything to do with market share. I think it is more to do with they they they took all these cuts and now they are trying to say those barrels back on the market. But now they realize they don’t have the barrels. And so how do they control the narrative against, as you mentioned in our Dallas Fed survey segment? You know, they don’t quite have an OPEC doesn’t quite have the power they once did. And I think it’s more about power than I think it is market share. [00:24:48][65.5]
Stuart Turley: [00:24:49] I agree. In fact, there there is a real question whether or not they’re even a cartel anymore or have the capacity to be a cartels. [00:24:55][6.6]
Michael Tanner: [00:24:56] Yeah, I mean, they could attempt to corral people. But again, at the end of the people only do what’s in their best interest. I think it’s really interesting. So Friday, no more spare capacity. It’s over. They can’t even hit their current targets Sunday. Oh, no, wait a second. We’re going to add more barrels to the market. So the answer is always somewhere in the middle when we have this. [00:25:15][18.7]
[00:25:15] And finally, guys, Occidental is in talks to sell Oxychem unit, which is their chemicals unit for at least ten billion dollars, according to the financial times. All we basically heard was that Occidental is negotiating the sale of its chemical division known as Oxychem in a transaction that may or may not be valued somewhere at around ten billion dollars. They claim at minimum ten billion dollars. What does OxyChem do? They quote, they’re a leader in essential chemistry. They have multiple different product families, including chloroalkaline, vinyl, chlorinated organics and multiple other essential chemicals like potassium chloride, sodium silicates, and have really been a stable part of their business for the last really hundred years as it comes down. To give you guys an idea, OxyChem did about 231 million of net income relative to the rest of the business. So you kind of extrapolate 230 million out. You get to about a billion dollars a year of net income and then that, you know, you multiply that, you know what a chemical companies trade at seven to twelve to one times net earnings. So you’re looking at that’s where that ten billion number comes from. And they’re going to want the twelve to one, not necessarily the seven to one. So I think that’s where a lot of those numbers are coming from. It’s going to be interesting who the buyer pool is, dude. Does this go to private equity? Does it go public? You know, they didn’t really list who a potential buyer could be. I have a feeling Dow Chemical will just swoop in and buy them. I mean, if you’re asking me who’s going to take this on, it’s probably going to be Dow Chemical. They’re one of the few chemical companies that have an ability to. It could be maybe DuPont. I think there’s a couple of different companies that might be in play here. But my guess is it’s going to be one of the big conglomerates because this ten billion dollars is is is not going to come cheap. Obviously, what Oxy’s trying to do is they’re trying to use this to pay down debt that they’ve used that they acquired over the last 15 years. You know, good old Warren Buffett would like some of this cash back at some point instead of just swapping them for warrants. So I think it’ll be fascinating to see. But Oxy in negotiations, you sell Oxy Chem. It’s been a it was a busy week for us last week, Stu. And now, but it’s one of my favorite segments where you get to scare us. What are you worried about coming up this week? [00:27:19][124.1]
Stuart Turley: [00:27:19] I’m not the good guys are still in charge, at least to the midterm. So I am really not worried about it. As long as we get Venezuela, don’t go to war with them and just kind of get them run out of town, get rid of Dominion voting machines. I think we’re going to be in great shape. [00:27:34][14.5]
Michael Tanner: [00:27:34] What’s with this whole meeting of the generals? What’s going on there? [00:27:37][2.9]
Stuart Turley: [00:27:38] I think there’s about four or five different things going on. And I quite honestly think it is absolutely wonderful for Pete to bring in the generals. The there are things that you would hear from the QAnon folks. There are things that you hear from the other folks. And I think Pete telling his generals to have them lift their hand and say we will no longer be woke and then fire any of the woke generals is absolutely what is needed. [00:28:05][27.2]
Michael Tanner: [00:28:05] Oh, interesting. So that’s what they’re doing. They’re swearing woke loyalty oaths. [00:28:09][3.5]
Stuart Turley: [00:28:09] I think that’s part of it, but you have China. I wrote the article last week on China. China is got fiscal collapse written on it. They’ve always gone to war whenever they’ve had a fiscal collapse. They’ve been around a lot longer than we have, but the pattern is there. Then you have Russia, then you have Zelensky duct taping drones and throwing them over the border in Poland to try to get Poland to go into war. There’s a lot going on around the world and having secure communications is very important when you look at your generals. [00:28:43][33.4]
Michael Tanner: [00:28:43] I think it’s great. No, I completely agree. I’m just giving you a hard time. I do love the fact that we break news that Zelensky is trying to do false flag events. [00:28:50][6.7]
Stuart Turley: [00:28:52] Sorry, I think it’s funny. [00:28:53][1.0]
Michael Tanner: [00:28:53] Guys, well, that’s a great way to wrap up the show. We appreciate you guys starting out your week with us. As always, Energy News Beat will stay on top of everything. But for Stuart Turley, I’m Michael Tanner. We’re going to let you get back to work. Start your week. We’ll see you guys next time, guys. Energy News be daily Standup. We’re out. [00:28:53][0.0][1706.4]