Daily Standup Top Stories
Drill, Baby, Drill’ Hits Wall of Capital Restraint – More like Drill Baby Drill when fiscally responsible!
November 13, 2024 Clark Savage
Trump will encounter a very different mindset of shale industry executives in 2025 compared to the late 2010s. Discipline and a pragmatic approach to balancing production growth with shareholder returns are likely to hold in […]
“I couldn’t be more thrilled by president-elect Donald Trump’s victory,” said Continental Resources founder Harold Hamm.
November 13, 2024 Clark Savage
The FT writes, US oil execs are eagerly awaiting Trump’s expected rollback of environmental regulations, but despite the president’s pledge to “drill, baby, drill,” production is unlikely to increase significantly during his second term in […]
Canadian Oil Stands To Profit From Trump’s Energy Agenda
November 13, 2024 Mariel Alumit
Canada is the biggest foreign supplier of crude oil to U.S. refiners. Canada’s energy exports to the United States were worth close to $160 billion—most of that in the form of crude oil, refined products, […]
Coterra is spending $4 billion to consolidate in the Permian.
November 13, 2024 Clark Savage
The risk/reward balance here gets very interesting. Coterra Energy, the $20 billion publicly traded exploration & production (E&P) operator, announced two separate acquisition agreements in the Permian totaling $3.95 billion. The deal “consist[s] of $2.95 […]
Poland Urgently Needs New Gas Power Stations, Grid Operator Warnsn
November 13, 2024 Clark Savage
Country sees power supply shortage at 4.2 gigawatts in 2026 Poland needs its coal power stations operating for longer: PSE Poland urgently needs to build new gas-fueled power stations and keep its coal-fired units going […]
Highlights of the Podcast
01:23 – Drill, Baby, Drill’ Hits Wall of Capital Restraint – More like Drill Baby Drill when fiscally responsible!
03:34 – “I couldn’t be more thrilled by president-elect Donald Trump’s victory,” said 05:59 – Continental Resources founder Harold Hamm.
Canadian Oil Stands To Profit From Trump’s Energy Agenda
07:03 – Coterra is spending $4 billion to consolidate in the Permian.
08:20 – Poland Urgently Needs New Gas Power Stations, Grid Operator Warns
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Video Transcription edited for grammar. We disavow any errors unless they make us look better or smarter.
Stuart Turley: [00:00:10] Hello, everybody. Welcome. The energy news beat daily stand up. My name’s Stu Turley, President and CEO of Sandstone Group. I’ll tell you what it is that’s out there. If you told me that Matt Gates would be the head of the DOJ, I did not have that one on my bingo card. Lots of fun things going on. But let’s go through the list of stories. Drill, baby, drill hits a wall of capitol restraint. More like drill, baby. When it’s fiscally responsible. It’d be a good way to change that title. I couldn’t be more thrilled by President elect Donald Trump’s victory, said Colonel Reynolds, Continental Resources founder Harold Hamm. That’s a great one from Doug over there. And Doug, share it. And also, Canadian oil Sands stands to Profit from Trump’s Energy Agenda. Pretty interesting on this one. Coterra is spending $4 billion to consolidate in the Permian. Pretty wild stuff going on there. More stuff going on. Let’s take a look. Also in the last story for the day, Poland urgently needs new gas power stations, the grid operators warn. [00:01:22][71.9]
Stuart Turley: [00:01:23] I’ll tell you, he is. I love President Trump’s enthusiasm for drill, baby, drill. But as I mentioned on yesterday’s show, we have fiscal responsibility brought about by. Have you ever seen a puppy or a mule that has been beaten like a mule? That’s what the oil and gas business is like right now. They are not in any mind just going out and spending money to drill wells. They are basically to hold in the industry. I call that a good thing. Large shale companies have curtailed CapEx and are not likely to be incentivized in any way to increase it meaningfully. However, what is going to happen is that with the new EPA getting the regulatory off of the our great oil and gas empire operators and our oilfield service, it will lower the costs of drilling for oil and therefore, they could even make more money at lower prices. So I think that this is going to be very good. This article says the US shale patch is drilling, but it’s drilling because it wants to distribute more of the profits to shareholders. It has made huge progress in capital discipline and I could not agree any more. More on that. I’ll get those guys drill in there while they’re tough there, while they’re grazing, they’ll be drilling so much, Trump said. I love President Trump and I absolutely love the way he thinks on this. But Chevron, for example, sees CapEx in the Permian probably peaking this year. I disagree with that. I think that it is still going to be there for quite a while. We’re quote, we’re doing it in a much more capital efficient manner than we ever have before, Wirth said. Is their head dog over there? I’ll tell you what, I’m excited for it. I know that it is fun seeing all the videos of our great oil and gas hands dancing. They’re thrilled. And I think it’s going to be fantastic. It’s going to be a beautiful drill. Beautiful well over there. So I. I can’t do President Trump. I do a better Putin imitation than I do Trump. [00:03:34][130.1]
Stuart Turley: [00:03:34] Let’s go to the next story. I could not be more thrilled by President elect Donald Trump’s victory, said Continental Resources founder Harold Hamm. I’ll tell you what, this is really cool, said Harold Hamm. This is a monumental win for American energy and the future of our nation’s energy security. Jeff Miller, CEO of Halliburton Echo, echoed those sentiments. It could only be positive. In fact, I’m quite optimistic. So you can see every why everybody’s doing the Trump dance in the energy space in the oil and gas space. Anyway, taking on office next January, the industry expects Trump to slash many of the environmental rules imposed by Biden. Mike Summers, head of the API Cool Cat Love Mike Summers of the American Petroleum Institute, said had been on a regulatory onslaught and during the past four years and I couldn’t agree more. Guess who got to pay that regulatory onslaught to the tune of about $1 trillion U.S. consumers? One of the most important fundamental changes brought by the industry for Trump, it would be aided by Republican control of the Senate. And and we’re hearing that House as well, too. Meanwhile, Trump has vowed to slash corporate tax and unpick Biden’s signature climate legislation. Take number one out of this article. America needs to return to the days which industry was allowed to compete in open markets. I could not agree more with limited interference from politicians and rogue. Clayton. Our take number two. We’ve noticed the media associate good times in the oil field with high levels of production. That’s not necessarily the case in an environment in which operating and regulatory costs and risks are play low, play a much bigger role in ensuring long term prosperity and in this in the sector. I like this. Take number three in this article Magnum and as any oil gas companies that I might lobby for the retention of portions of outgoing and men’s immensely damaging and wasteful energy policy that happen to fill their corporate coffers even as they continue to rip off taxpayers. What would America do without these patriots? Not sure I understand that one, but I do like Doug Sheridan. This came off of LinkedIn. [00:05:59][144.7]
Stuart Turley: [00:05:59] Let’s roll over to Canadian Oil Stands to Profit from Trump’s Energy Agenda. Canada is the biggest foreign supplier of crude. The U.S. refiners. We need that heavy Canadian oil sands energy exports to the United States are worth 160 billion, most of that in crude oil, refined products and natural gas. Trump is likely to point the terror weapon north is unlikely to point the Webb tariff weapon north, and he is unlikely to do that because he wants to cut our energy cost to consumers in half. There’s no way he is going to tariff Canada. Canada is going to see a very, very good boon out of the United States. And I’ll tell you, I was just looking at some airplane traffic and stuff, a lot of airplanes flying around there. So I guarantee you people and a good economy, good environment are going to travel more and there’s going to be more demand. We have yet to see peak oil. Personal opinion. [00:07:03][63.3]
Stuart Turley: [00:07:03] Let’s go to the next one. Coterra Spending 4 billion to consolidate in the Permian category. Energy, the 20 billion publicly traded exploration empire operator announced two separate acquisition agreements in the Permian totaling 3.9 billion. The deal is 2.9 billion of cash and 1 billion of common stock. The cash portion is expected to be funded through a combination of cash on hand and borrowing. It’s kind of scary. I’m going to look forward to seeing Michael’s opinion on this one. Operators are competing to be the biggest and strongest so they can argue to investors, no matter how oil and gas market shake out, they’ll be the last one standing. I’m not worried about oil and gas operators in the United States. There will be a lot of survivors. It is not a matter of if. It’s also world companies are lining up to buy into the United States energy markets. So even if Gutierrez uses every dollar of cash on hand at the end of Q3, he would still have to double its long term debt to make the deal happen. That one kind of scares me just a little bit on this one as well. I’m going to wait and hold judgment on that for Michael. [00:08:19][76.0]
Stuart Turley: [00:08:20] Poland urgently needs new gas Power Stations. Grid Operator Warns Country Sees Power Supply Shortage of 4.2GW. This is in Poland in 2026. Poland needs its coal power stations operating for longer. We are seeing this as a trend in almost every country. Coal for longer. They need more natural gas and that is really huge in the United States when it comes to a standpoint of saying, hey, wait a minute, we need air and we need a dependable grid, we need lower costs. That is not wind and solar. That is natural gas. We’re not going to get any more coal plant fire again unless they are The only way we’re getting new power plants put in is if they’re hydrogen ready in order to get past the regulatory processes. Right now, I don’t know if President Trump would tackle a permitting new coal plants, but he might anyway. [00:09:24][63.9]
Stuart Turley: [00:09:24] With that like subscribe. If you are a investor and you are looking at your portfolio and you say, Wait a minute, I got some tax returns, I may be in some trouble. We know some folks that have some great investments that have tax advantaged. I’ve invested in them and I’m making 32% on my investment. Love it. If we’re partnering with Rey Trevino over there at Pecos operating just and then the information will be in the show notes, Let us know if you need a tax deduction. I don’t like paying money to people that don’t know how to spend my money. So with that, I have an absolutely fantastic day. I look forward to speaking to you soon. [00:09:24][0.0][550.0]
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