It is one thing when 3 friends go to a bar. It is another thing when your Uncle starts a joke with, “There were these 3 guys walk into a bar…”. And then there is us. Three podcasters are banding together to talk about energy, politics, the good, bad, and homely in the oil and gas markets.
R.T steps out of the shower and admits he needs to use glasses to read, David, confesses that he called Alex Eptrine a skunk during his interview, and Stu provides the new “Granholm Effect.”
RT Trevino, E&P owner, David Blackmon, Forbes Author, and Stu Turley. Well, we are not sure what Stu does, but we all have a blast kicking energy around.
Highlights of the Podcast
00:00 – Intro
03:38 – Talks about fossil fuels
05:11 – Potential rail strike
10:52 – Biden is ready to buy the oil to fill up the strategic reserve
14:30 – Talks about Granholm’s
16:45 – Taxing the profits from wind
20:03 – Warned the Markets regarding domestic oil production
27:23 – U.S. economy from the EMP market next year
32:42 – Talks about millionaire farmers
34:32 – Outro
Sponsored by:
Video Transcription edited for grammar. We disavow any errors unless they make us look better or smarter.
Stuart Turley: [00:00:13] Hello, everybody. Did your uncle ever surprise you? Some day when he came up to the family dinner and said these three guys walked into a bar? Well, I got two compadres and we took that to heart. Welcome to the three podcasters walk into a bar. [00:00:31][17.5]
Stuart Turley: [00:00:32] And I mean, we’re going to have a absolute fun discussion today. Now, my name’s Stuart Turley, President and CEO of Sandstone Group, and I got some compadres down here. I got Artie Trevino, and Artie is the podcast host for The Crude Truths. How are you today, dude? [00:00:52][19.6]
Rey Trevino: [00:00:52] Oh, I’m doing great. It’s up. It’s another beautiful day. It’s actually kind of feels like fall here in the great state of Texas. So it’s pretty good day, and I’d say it’s a good one. [00:01:02][9.4]
Stuart Turley: [00:01:02] I think it’s a great one. It looks like you got both of your hairs cut today. [00:01:06][3.3]
Rey Trevino: [00:01:07] One or two of them. Yeah. [00:01:08][1.0]
Stuart Turley: [00:01:09] Wow. Then next around the corner, we got the David Blackmon. I mean, not just the David want. [00:01:17][7.8]
David Blackmon: [00:01:17] To know. [00:01:17][0.1]
Stuart Turley: [00:01:18] Only minor around. He is a author extraordinaire and his podcast is the energy question. And I mean, it’s absolutely I got to sit in and being a producer on it was Alex Epstein this week. Yeah. And David, you have an interview? Yeah. You actually sounded good. I don’t know what happened. [00:01:42][24.8]
David Blackmon: [00:01:43] Yeah, I don’t know either. There was something wrong with my voice that day. I did kind of sound pretty good that day. I must have lost. I had enough water to drink that. [00:01:50][7.1]
Stuart Turley: [00:01:51] I’m going to. I’m going to squeal on you here for just a second. And I haven’t even been able laugh at David on this one with you, but he’s in there right in the middle of it. We got Alex Epstein here. Almost everybody on the planet knows him. You know, he’s out there fighting a good fight and everything else. [00:02:08][16.7]
Stuart Turley: [00:02:08] And they’re doing a lot of man love going on back and forth. Hey, do you remember when I knew you? And, you know, I’m over here going, Holy smokes, these guys are really bonded. And then David reaches out and I pulls one right out and goes, You know, when you slap a skunk around, I don’t know why you’re a skunk. And I’ll be like, What? I didn’t. [00:02:30][21.6]
David Blackmon: [00:02:30] Say that to. [00:02:31][0.6]
Stuart Turley: [00:02:31] You. Yeah, you did, Skoog. No, I didn’t. [00:02:35][3.9]
David Blackmon: [00:02:35] Call him a skunk. Well, I did kind of call on this guy. I called him the skunk at the garden party, you know, because. Which I am, too. I was talking about the fact that and, you know, you have to admire him for doing it because he’s become this prophet for fossil fuels. Right. [00:02:51][15.4]
David Blackmon: [00:02:51] In a society where everyone’s going crazy about windmills and solar panels, you know? And so, yeah, I said, you know, where we’re the pop culture on energy is concerned. You’re kind of the skunk at the garden party, which is a phrase my dad used to always use. [00:03:06][15.0]
Stuart Turley: [00:03:07] So and the look on Alex’s face, everything when he went home is school. I’m not I’m not. [00:03:14][7.7]
David Blackmon: [00:03:14] Sure he got the reference, But anyway, well, it wasn’t meant as an insult. [00:03:18][3.7]
Stuart Turley: [00:03:20] The old sort laughing about. [00:03:21][1.1]
Rey Trevino: [00:03:21] Well, I can’t wait to hear that interview. I’m excited. I haven’t had an opportunity to meet Alex, but. But I’ve heard good things in the fossil fuels is on my list of it’s, you know. [00:03:33][11.7]
David Blackmon: [00:03:34] So he’s brilliant. Yeah. [00:03:35][1.4]
Rey Trevino: [00:03:36] I can’t wait to speak. The fossil fuels, the fossil here showed off. Showed off. [00:03:41][5.6]
David Blackmon: [00:03:42] Also features by Alex Epstein. If you haven’t bought this book, you need to buy it and read it and take it to heart. [00:03:47][4.9]
Rey Trevino: [00:03:48] And what I like to do is I get the hardback cover and the paperback so I could like, you know, I like to take notes, my books these days, you know, I mean, and and sometimes you got to, you know, I don’t know if you’ve ever read the The Price by Daniel Yergin, but I was a magnifying glass that when I have good, good vision, you know, I always get small print. [00:04:07][19.2]
David Blackmon: [00:04:07] That’s that’s the most wonderful that’s the bible of the oil and gas. [00:04:12][4.1]
Rey Trevino: [00:04:12] Is It is. But back to Alex. No, I’m excited about your interview with him. I definitely want to wait for it to come out. And I can’t believe you got Stu to produce it. David Yes, it definitely must have been of the bar to let him do that. Thought you have a lot. [00:04:29][16.3]
David Blackmon: [00:04:29] Of extra energy that day. Yeah. [00:04:30][1.3]
Speaker 4: [00:04:31] Oh yeah. [00:04:31][0.3]
Stuart Turley: [00:04:32] I wish you could have seen me. I was reaching for the phone because I was about to text you. I was within a moment of reaching in and jumping in the discussion, going, Oh, no, don’t go. He was going. [00:04:45][13.3]
Rey Trevino: [00:04:46] To homeschool you. [00:04:47][1.2]
Stuart Turley: [00:04:48] It was like. [00:04:48][0.3]
David Blackmon: [00:04:49] He took it. [00:04:49][0.4]
Stuart Turley: [00:04:50] Well, he did. It was a lot of fun. Great interview, David. You did? Outstanding. So, David, what do you got coming around the corner? You had an excellent Forbes article. How’d you steal the info from? [00:05:01][11.0]
David Blackmon: [00:05:01] Oh, I stole it from Reuters and Wall Street Journal. New York Times. Thomas Friedman Yeah. Talking about really, given the Biden administration a little. Credit for once and I guess tentatively resolving this potential rail strike and talking about the fact that if we had had that rail strike, if, if and of course, we still could, because the deal still has to be voted on by the union members. [00:05:29][27.5]
David Blackmon: [00:05:29] But if you had a rail strike, then the northeastern United States would have a severe energy crisis because they get about a third of their oil supplies in the northeastern United States on rail cars because the state of New York and the federal government refused to approve the building of any pipelines into the Northeast. [00:05:54][24.7]
David Blackmon: [00:05:55] And so a rail strike would leave northeastern United States. And I’m talking about the states from Boston, Connecticut, Rhode Island, New Hampshire, Maine would leave them short, not just of oil, but also of natural gas, because they get a lot of natural gas brought into to their states by rail as well. And. Well, yeah, because we don’t have enough pipeline infrastructure. [00:06:20][24.4]
Stuart Turley: [00:06:21] And it’s well, David, they also import LNG into Boston. Right. [00:06:25][4.6]
David Blackmon: [00:06:26] Right. And I talked about that as well. And some of those tankers, they’ve already had ten tankers full of LNG come into Boston Harbor this month, the past two months. Wow. Some of those tankers come from Russia, some come from Qatar, some come from Australia. [00:06:45][18.5]
David Blackmon: [00:06:46] None of them can come from other U.S. ports because of this World War or civil war era law called the Jones Act, which prohibits foreign flagged ships which all LNG tankers are from carrying cargoes from one U.S. port to another. [00:07:04][18.2]
David Blackmon: [00:07:05] You can only do that on a U.S. flagged vessel, and we don’t have any U.S. flagged LNG vessels. It’s the most insane situation on the face of the earth, and it’s all because of stupid politics, which is what I write about all the time. [00:07:19][13.9]
Stuart Turley: [00:07:19] Yeah, I was visiting with Colin from the Cato Institute and he wrote a paper on it. We only have four major shipyards, those four major shipyards, three of them are military. And so yet you’re down to one shipyard. That shipyard can’t make an LNG carrier, right? So. [00:07:41][21.7]
David Blackmon: [00:07:44] Right. And you can’t afford to make an LNG carrier in the United States. They’re all made overseas where the labor is cheap and they’re all flag the vessels. Most of them anyway, are flagged under the Liberian flag because it’s a lot cheaper too to insure them. And you have them licensed in Liberia than it is in the United States. So the flag on the vessels is the is the flag from Liberia. And so you don’t qualify under the Jones Act. It’s just a ludicrous situation. [00:08:16][32.3]
Rey Trevino: [00:08:18] Well, I want to I want to get back to this rail thing because, you know, it didn’t make that much news. Okay. [00:08:23][5.6]
David Blackmon: [00:08:24] Right. [00:08:24][0.0]
Rey Trevino: [00:08:25] That’s the first thing that’s very scary. And also, the Trump rate has really gotten quiet in the last ten days. But that’s a whole other thing. That’s a whole that’s a hard thing. And I have not done any of my own research yet. [00:08:39][13.9]
Rey Trevino: [00:08:39] But I heard this morning that the union of the railroad is making out like a bandit. Well, the concessions that were made were that the employees now don’t have to take a day off for going to the doctor, and the average raise is 24%. And that’s what I’ve heard. I don’t know if that’s true, but at 24%, I mean, I don’t know what these guys are making, but if they’re, you know, we’ll just use $100,000, but, you know, even make 100,000 a year and you add another 24 to it. That’s a darned good raised right there. I mean, I heard a victory hour. [00:09:15][35.9]
Stuart Turley: [00:09:15] I think you’re dead on, right? I heard an entry number 117 to 120 just for a standard employee. [00:09:21][5.9]
Rey Trevino: [00:09:25] You know, I don’t see this all the time. Maybe I don’t see that. [00:09:31][6.5]
David Blackmon: [00:09:31] It’s good work if you get it, I guess. [00:09:33][1.5]
Rey Trevino: [00:09:33] I bet it’s about when. [00:09:35][1.3]
David Blackmon: [00:09:35] You consider the negative impacts to the economy the rail strike would have. You know, I mean, you pay them whatever you have to pay em, right? It’s Warren Buffett’s money, anyway. At CSX Railway, he owns most of it. And so he’s. He’s rich. He can afford it. [00:09:52][16.7]
Rey Trevino: [00:09:52] He can looks. And he’s he’s the big component of what shut down the Keystone pipeline. Let’s I want that to be very clear. It’s really interesting. He owns a he’s about to own the majority shares of Occidental but yet he’s the one that shut down that helped shut down the Keystone pipeline so that his railway could continue to ship that oil from North Dakota and Canada back down to the refineries here. [00:10:18][25.4]
David Blackmon: [00:10:18] I’m sure Mr. Buffett would never get involved in politics like that. [00:10:21][3.1]
Rey Trevino: [00:10:22] Ah, you’re right. You’re right. I’m sorry. I’m sorry. Anyway, well, I don’t know if you all read. I was on a whatever reason I was on Yahoo! The other day and just grabbed it yesterday. And I don’t have a Yahoo account. You know, me and Stu were talking about all the old Yahoo and AOL accounts also the other day, but they were talking about how the article basically stated that Joe Biden is ready to buy the oil to fill up the strategic reserve when it dips below 80. But you know, basically that the price of oil shot all the way back up and the article read is just the industry of the oil and gas is a bad guy. [00:11:07][45.8]
Rey Trevino: [00:11:08] That was like, oh, he wants to do that. Okay, quick raise the price. And that’s anything but far from the truth. You know, the bottom line is, and I’m sure you both can expand on it, is that once he starts shelling out another million barrels of oil a day into the market, that leaves a hole and that will supply will be cut short again and the demand will go up. So guess what? They’re already speculating at a price. I mean, I just I just get tired of it. It’s I was listening for People Day. It’s like we’re not the bad guys. We are not the best, you know. [00:11:46][38.4]
David Blackmon: [00:11:46] And it’s a point the the oil companies make all the time is they’re not the price setters. They’re the price takers. Right? It’s the oil prices set by speculators and oil traders on a global market. And Exxon does not set the price of oil. And that’s just so. But, you know, for political reasons, demagogic politicians like to pretend it’s the other way around. And our news media isn’t intelligent enough to correct them for the most part, so they get away with. [00:12:16][29.9]
Rey Trevino: [00:12:18] No. Oh, yeah. So that’s what I hope we do here, you know, minus, you know, Stu, you know, I hope we can educate people about something better. [00:12:24][6.7]
Stuart Turley: [00:12:27] I don’t know about me educating anybody. [00:12:28][1.7]
Rey Trevino: [00:12:30] Well, you know, you your education is. Yeah, You and your strategery the way you do it. [00:12:36][5.3]
Stuart Turley: [00:12:36] Man, I don’t. [00:12:37][0.5]
David Blackmon: [00:12:37] I don’t know. You said you had two different things you were going to educate everybody about today. [00:12:41][4.3]
Stuart Turley: [00:12:42] You bet. The one that really gets me, guys, is we’ve all talked about we’ve got to get in a a energy solution. [00:12:51][9.1]
Rey Trevino: [00:12:51] He sounds like the old uncle, right? You know what really gets that goes? [00:12:55][3.4]
David Blackmon: [00:12:58] You kids get off my log. [00:12:59][1.3]
Stuart Turley: [00:13:00] I’ll tell you, it just drives me nuts when people are sitting here saying, okay, we’ve got evidence as as our you would say, we got me some evidence and got me some evidence that if you have an a bad plan to implement energy, it ain’t going nowhere. The consumers are going to get higher, businesses are going to fail. Then they’re doubling down on stupid and cutting out the food. So you’re pulling out. [00:13:33][33.4]
Stuart Turley: [00:13:34] Natural gas over here in the EU is just a complete disaster. Now, California has always followed those knuckleheads in in making bad policy decisions. And excuse me, I’m going to pull my stunt out here. These are my what you call Granholm’s. I want to pretend I am the Secretary of Energy for the United States. These are my beautiful Granholm’s That. [00:14:02][28.1]
David Blackmon: [00:14:02] Is very lovely. Quite lovely. [00:14:04][1.4]
Stuart Turley: [00:14:04] Oh, thank. [00:14:05][0.4]
Rey Trevino: [00:14:05] You very much. You’re about to get serious, but I don’t wear glasses. [00:14:08][3.1]
David Blackmon: [00:14:08] Look just like that. 1977. [00:14:09][0.9]
Stuart Turley: [00:14:11] Yeah, I did too. I found it awesome in the desk. [00:14:13][2.9]
Rey Trevino: [00:14:14] I don’t even own a pair of glasses. [00:14:16][1.3]
Stuart Turley: [00:14:17] Oh, well, let me. Let me break you bring you back in here. [00:14:21][4.2]
Rey Trevino: [00:14:22] Oh, I’m sorry. I look. [00:14:22][0.6]
Stuart Turley: [00:14:23] At you. Oh, you. You. Oh, my gosh. There’s some jokes there, man. Okay, now, look, I got my Granholm’s on, so I’m going to pretend I am secretary of Energy. Okay, everybody, California is doing it right. Oh, we love California. [00:14:42][19.8]
Stuart Turley: [00:14:44] And they have such high prices, and we’re so proud of them that we’re going to eliminate EVs. I’m like, Holy smokes, they’re doubling down on stupid. Let’s get one more in here. And they’re going to triple down on this, guys. Okay. They’re trying to say they’re trying to pass a law that says they want to. [00:15:08][24.0]
Stuart Turley: [00:15:09] There you go. They want to triple down on stupid and they want to make sure that they can not only double down. Okay, this is Granholm. I love me some Californian. Okay, Now, if Orange says we’re going to take your stupid and we’re going to triple down on it, they’re going to go ahead and put in smart appliances. [00:15:30][20.9]
Stuart Turley: [00:15:31] So the government and, you know, the governor can sit there and go, you have no AC, you have a seat. So now he’s going to be the AC Nazi, kind of like out of Seinfeld, you know, the soup Nazi. [00:15:41][10.5]
Rey Trevino: [00:15:44] No soup for you guys. [00:15:47][2.5]
Stuart Turley: [00:15:47] California and then 17 states are going to follow California by regulation or legislation through regulation. And it’s like we got a bunch of people, oh, I don’t want to not win power. I don’t want to knock solar. I could care less what power we used. [00:16:06][18.5]
Stuart Turley: [00:16:06] Let’s let the markets decide. Let’s get the cheapest, lowest cost power to the come to the citizens without having any, you know, the least amount of damage. Let’s bring some facts to that discussion and we’ll see how who wins on that. You want me go to the next one. [00:16:23][16.4]
David Blackmon: [00:16:24] Oh. One. Oh. [00:16:24][0.5]
Rey Trevino: [00:16:25] Okay. Oh, okay. Get another. Get another round, Stuart. [00:16:29][4.0]
David Blackmon: [00:16:30] Just so somebody doesn’t. [00:16:31][1.0]
Stuart Turley: [00:16:31] Hurt my sleeve. Watch me pull stupid out of my hat. Okay, now, this one is the EU. Is going to be doing some taxes here. I mean, they’re going a retro into taxing the profits from wind, from fossil fuels. Do you know what that does? It raises the price of energy to the consumer. So we got a triple down over here. [00:16:57][26.1]
Stuart Turley: [00:16:58] We got the Granholm effect over here. Then we got the EU proven stupid again. So there’s going to be another one, because when they tax the energy companies, there’s less investment to come back around to try to lower the price. It’s a supply and demand thing. So California is going to go. Europe did a good thing. We’re going to follow along behind it. So you’re going to see the revolving stupa coming up around the corner. [00:17:28][29.9]
David Blackmon: [00:17:28] Yeah. And if we don’t have a good outcome in the midterm elections, you’re going to see the Democrats in Congress propose and try to move a windfall profit tax nationally next year. I mean, you know, they’ve already got two different bills circulating in Congress right now that would do that. And, you know, it’s it’s, again, completely counterproductive. We need more oil and all taxing. If you don’t tax a product that you’re short of, you cut taxes on it so that people invest to produce more of it. [00:18:01][32.6]
Stuart Turley: [00:18:02] Right. Right. [00:18:02][0.5]
Rey Trevino: [00:18:03] Absolutely. You know, that was something you know, here, here this president is telling us to drill, baby, drill one. You know, they’ve got more than 75% of all the federal lease is tied up in some form of litigation regulation shenanigans. [00:18:19][15.8]
Rey Trevino: [00:18:20] And they’re sitting there going, drill, baby, drill. We’re holding this hand behind our back. Then the fact that, you know, we can’t get paid, we can’t get the manpower, and that’s holding our other hand back to where it’s like, you know, we’re going to be lucky if we can drill, you know, you know, a half a dozen wells this year. And hopefully we can do the next the next year. [00:18:41][20.1]
Rey Trevino: [00:18:41] And and even the major independents right now are doing their best to just kind of drill. And David, you’ve mentioned this before, and this should be something and again, I want this to be a very important point that David Blackman has said before, not mine, that we have been stagnant for the last two months. [00:19:03][22.2]
David Blackmon: [00:19:04] Yeah,. [00:19:04][0.0]
Rey Trevino: [00:19:04] On the rig count, we have not gone up in any more rigs. In fact, I think we’ve technically gone down a few rigs in the last two months. So that to me says that that supply is once again going to continue to dip because as a producer, I know that always the biggest returns come on the new wells when they shoot up and they go and they’re going to be successful for the first 3 to 8 months, depending on the well. [00:19:29][25.3]
Rey Trevino: [00:19:30] That is the best life of the well after that, hey, we got, you know, God willing, 30 years of residual income. That’s why I am in this industry for that income. But right now we are not drilling here in America. And, you know, once again, we are just being stymied or stagnant when we have an administration that does not want us to do this. So just just terrible right now that we are not getting the production that we need. [00:19:59][29.7]
David Blackmon: [00:20:00] Yeah. And you know, Scott Sheffield Pioneer’s CEO last week said that he warned the markets that the domestic oil production is going to be quite disappointing for the rest of the year and probably for 2023 as well, which means that, you know, right now these companies, like his are starting their budgeting process for next year. [00:20:24][23.4]
David Blackmon: [00:20:25] And what Scott is apparently seeing internally is the likelihood that they’re not going to be increasing their drilling budget for 2023. And I suspect most other companies are in the same boat. So, you know, the United States shale business is not going to ride to the rescue on this oil supply deal. [00:20:43][18.9]
Stuart Turley: [00:20:44] No, but, you know, you know, it’s on that R.T. And David, is the fact that out of all the oil producing countries, the U.S. is the only one that can spin and can’t spin. We’re the only ones that can, but we won’t because of the Granholm effect. [00:21:06][22.3]
David Blackmon: [00:21:07] All right. The Green New Deal insanity. [00:21:09][2.0]
Rey Trevino: [00:21:10] Yeah, it’s you know, we can call it. You know, I don’t want to give that lady any credit, Steve, for any of this stuff. She she, like, booted judge like, you know, embarrassing, I think Merrick Garland, who, you know, you know, he’s got a left, right, whatever. He had a great resume years ago. And, you know, when they tried to put him on the Supreme Court, the Republicans stop that from happening. But these people are not qualified for their jobs. [00:21:42][31.6]
Rey Trevino: [00:21:43] I mean, that would be like me going to a nuclear power plant, going, all right, I’ll run the show now. And that’s what these people are doing. So whoever is running this administration are the ones that are doing this. [00:21:55][12.0]
Rey Trevino: [00:21:55] And again, they’re trying to follow California, trying to put us back in a really in the Stone Age. I, I actually saw an old report the other day where people were trying to say that the end of the world is coming. And it’s like, you know what, We’re actually America is a cleaner place than it was 30 years ago. [00:22:15][19.5]
Rey Trevino: [00:22:15] Our environment is better. We Comanches. More easily. And in my strong belief that it’s because of the oil and natural gas, that we have heat to heat our homes, that we don’t need to cut trees, that we have other things other than coal. And so to move vehicles in the steam engine, you know, we don’t have much of those anymore. So, you know, we’re doing things that are right. I think in my right there, David are No. [00:22:43][28.1]
David Blackmon: [00:22:44] Oh, yeah. Not we’re gonna golly man I’m I have actual context in my life. I’m old enough to remember when the Allegheny River River used to catch on fire in Pittsburgh because it was so polluted, you know? And now you can go swimming in the Allegheny River and drink water from it. It’s so much cleaner and rivers all over the country. It used to. [00:23:09][24.7]
David Blackmon: [00:23:09] As late as the 1970s, were used as open sewers by major cities in the United States of America. And we should credit the federal government, the Clean Water Act, the Safe Drinking Water Act, the Clean Air Act, the Endangered Species Act. [00:23:28][18.2]
David Blackmon: [00:23:28] All was signed into law by President Richard Nixon in the late sixties and early 1970s. A Republican president have worked miracles with our environment, and and it’s a success story of regulation by the federal government that has forced all of that. Same thing for automobiles, the emission standards, you know, the average car, it’s a true story. [00:23:55][27.3]
David Blackmon: [00:23:56] If you poured a teaspoon of gasoline on the ground, it would have meant more toxic emissions into the air, that teaspoon of gasoline than the average automobile in the United made in the United States today emits in a full year. Now, wow. We have eliminated over 99.9% of vehicle emissions in this country since the 1970s. [00:24:22][26.7]
Rey Trevino: [00:24:24] David, can you say that one one more time, please? Okay. Somebody did not hear you right. [00:24:28][4.4]
David Blackmon: [00:24:29] Over 99.9% of vehicle toxic emissions have been eliminated in this country since the 1970s under the Clean Air Act. And but but young people these days are not being taught any of this. All they’re being taught about is carbon dioxide, which was made the climate boogeyman and in the early years of this century. [00:24:52][23.8]
David Blackmon: [00:24:53] And so we have two full generations of children now who don’t know any of this. They have no context for knowing any of that in their lives and are not aware of the incredible improvements in our environment in the United States and globally driven by the United States. [00:25:14][20.5]
David Blackmon: [00:25:14] By the way, it’s been done globally as well as compared to just 40 years ago. And so you have this climate hysteria going on today about carbon dioxide that’s based on a bunch of computer models that vary widely depending on the variables, the factors you put into them. And and that’s driving our whole energy policy in this country right now. [00:25:40][25.9]
David Blackmon: [00:25:41] And, you know, our education system and our news media doesn’t report anything else. So nobody knows. It’s it’s really sad. And little old me, you know, writing a couple of pieces a week can’t really do the job of educating anyone. [00:25:59][17.9]
Rey Trevino: [00:25:59] You got it. You can do it all. You can do it. And that’s the bit, you know, how many kids think that don’t mess with Texas really means you don’t mess with. It was really the big litter campaign from the 1970s or early eighties. Right. [00:26:13][13.7]
David Blackmon: [00:26:13] 1370s is when it started. [00:26:15][1.5]
Rey Trevino: [00:26:15] Yeah. And, you know, don’t give me. [00:26:17][1.4]
David Blackmon: [00:26:17] The amount of good stuff in the 1970s for our environment, folks, and we’re all better off for. [00:26:23][5.7]
Rey Trevino: [00:26:23] It. But yeah. Now. [00:26:24][1.3]
Stuart Turley: [00:26:25] I actually love the Indian commercial. When he was crying, I thought it was a great ad. [00:26:31][5.9]
David Blackmon: [00:26:32] It was not an Indian, actually, it was not a Native American. What was his name? Anyway, he yeah, it was a great commercial. [00:26:39][7.6]
Stuart Turley: [00:26:40] He just passed away now. [00:26:42][1.4]
David Blackmon: [00:26:42] Years ago, his name, the actor’s name. But he was he. [00:26:45][2.4]
Rey Trevino: [00:26:45] Was saying, What though, if John Wayne was still around, you know, I think the world would be a better place. John Wayne and. [00:26:50][5.4]
Stuart Turley: [00:26:51] John Wayne for president, baby. I would love to see that. But, you know, he’s he was, I think, a Republican, but he’s voted Democrat all this time since then. [00:27:02][10.1]
Speaker 4: [00:27:03] Yeah. Oh. [00:27:04][1.2]
David Blackmon: [00:27:06] I’m not going there. [00:27:06][0.7]
Stuart Turley: [00:27:07] Yeah. [00:27:07][0.0]
Rey Trevino: [00:27:09] No, no. [00:27:09][0.2]
Stuart Turley: [00:27:09] No. I’m so funny. [00:27:10][0.7]
David Blackmon: [00:27:11] I can’t imagine what you’re talking about. [00:27:12][1.1]
Stuart Turley: [00:27:14] But, you know, we’re coming around the corner on trying to sit here and think what is going to be the impact to the U.S. economy from the EMP market next year. All the exploration and production companies like R.t, like your company, it’s the small guys. [00:27:33][19.8]
Stuart Turley: [00:27:34] They’re going to make a difference because the big guys have their hands more handcuffs than you guys. You guys are handcuffed by capital. Absolutely. But the big guys are handcuffed just as much by capital. The I think what I’m seeing in talking to all the investors that I’ve talked to and in a bunch is they’re needing tax breaks. [00:27:58][24.1]
Stuart Turley: [00:28:00] Seeing this, what, 87,000 IRS agents starting to get trained up. Lovely. So, you know, they’re going to need tax deductions and what is going to help the U.S. economy? More oil to lower the price. But, you know, it’s going to be these small to medium sized employees. That will be a difference. [00:28:23][23.1]
Rey Trevino: [00:28:24] Oh, absolutely. Where you know. Well, you know, I like to say that we’re the ones that take the bigger risk. You know, we’re the ones that go literally find an empty field and we’ll go put a well in the middle of it, prove that there’s a million or 2 million barrels. And then that’s when an Exon or Chevron that has shareholders that they have to report to will go, Hey, I’ll buy this from now. My father, on the other hand, is going. [00:28:51][27.3]
Rey Trevino: [00:28:52] Hey, you know what? If y’all want it, I’m going to keep it and keep developing it for myself for long term. But no, yeah, the independence, I believe, you know, we make up over 50% of the production here in Texas. [00:29:06][14.0]
Rey Trevino: [00:29:07] And I’m talking about, you know, I don’t want to you know, I’m not talking about the double eagles are these are the pioneers. I’m talking about the family companies like Pecos Country operating and a bunch of other families here in Fort Worth and in Dallas and all over the state. [00:29:23][15.3]
Rey Trevino: [00:29:24] But we’re the ones that make up the majority of the production here. And right now, we’re having to get tough time getting paid. And the funding is just immense, Thank goodness. I believe his name is Jason Isaac. And the gentleman over at Double Eagle, Cody. [00:29:42][17.9]
Rey Trevino: [00:29:43] They worked with Governor Greg Abbott to come up with that law. What is it, something 13 law that basically said if you’re going to defund, you know, if you’re going to take your investments out of oil and gas here in Texas, we’re going to ask you to leave the state of Texas with all your investments. Right. Oh, the butcher that up there, gentlemen, I’m sorry. You know, I’m not a political guy, so I’ll butcher it up. But I know that that has made a very big difference, at least for the economy of the state of Texas. [00:30:09][26.2]
Stuart Turley: [00:30:10] There were ten majors like BlackRock’s in 350 or something of other mutual funds that they threw out. Right. I’m I am very proud of them for doing that. [00:30:21][11.5]
David Blackmon: [00:30:22] Yeah. I’m actually really and and I wrote a little bit about that when it happened. I was really surprised, actually. I didn’t really think the comptroller’s office would follow through on it. [00:30:31][9.3]
Rey Trevino: [00:30:31] And we have this. We have to step up where we can, you know, we really do. And it goes to show you that we are proud. You know, I can’t imagine personally and knock on wood, but if a Chinese entity came and said, Hey, I’ve got money to invest in your oil,. [00:30:50][19.2]
Rey Trevino: [00:30:51] I don’t I don’t see myself today, you know, unless they were a real ally, was going, oh, sure, yeah, I’ll take your, your money from and invest it myself. It’s like that. That to me really tarnishes what we have here, which is, you know, American oil on American soil. And so, yeah, no, I think it was us in a way fighting back and standing up for ourselves in a great strategic way. [00:31:19][28.0]
David Blackmon: [00:31:20] If that was really good. [00:31:21][1.0]
Stuart Turley: [00:31:21] And the only thing I got out of that, David, I didn’t mean to cut you off, but the only thing I got out of that whole conversation is Artie said I was right about one thing. Finally. [00:31:29][7.8]
David Blackmon: [00:31:32] There had to be one thing, right? [00:31:33][1.1]
Rey Trevino: [00:31:34] We’ll get to Karl Rove whiteboard. [00:31:35][1.1]
Speaker 4: [00:31:36] But what. [00:31:37][1.4]
Rey Trevino: [00:31:39] I. [00:31:39][0.0]
David Blackmon: [00:31:39] Took away from what R.J. was saying is I need a favor from your team. My family owns a little farm in Joliet County down in South Texas, and I want to get your company come poke a hole in our in our south already pasture and prove there’s a million barrels a day under there, right? [00:31:56][16.4]
Speaker 4: [00:31:57] Yeah. [00:31:57][0.0]
David Blackmon: [00:31:59] I could. I could use the little mailbox money in my life. [00:32:02][2.6]
Rey Trevino: [00:32:02] Well, now you know what? And that’s. That’s a little tough right there, David. I mean, I know you’re not deaf. You know, you’re not a this kind of guy, but you’re the farmer was. I don’t know if you know that about Fiddler Job at the Farm. Oh, I know. [00:32:15][13.3]
Rey Trevino: [00:32:16] And it was really company was almost out of money for that. You know, they were almost out of body. Would be at 106 feet. You know, it kind of reminds, you know, like, well, how many times they have to before they hit 100. But so, you know, hey, what’s a farmer, a millionaire already or become a millionaire after he said after the oil was discovered? [00:32:35][18.1]
David Blackmon: [00:32:35] Yeah, exactly. [00:32:36][0.4]
Rey Trevino: [00:32:37] Which was first anger, the chicken. [00:32:38][1.4]
David Blackmon: [00:32:39] Now there’s there’s all millionaire farmers all over the state of Texas. I actually I one of my favorite stories is from the Eagle Ford Shale. The early days of the Eagle Ford back in 2010, 2011, a friend of my parents had bought a little place outside Corn City. [00:32:57][18.6]
David Blackmon: [00:32:58] I grew up Bellville, Texas, down south Texas and and in Corn City is like the sister of of the the oil play and the Eagle Ford shale and he had back in the seventies bought a little patch of land about 30 acres and he said I ran into him on one trip down to Bayville and and he he came up to me said, you know, one day my wife and I were having dinner about 630 in the evening, and we hear a knock on the front door and it’s a fellow from Conoco. [00:33:29][30.9]
David Blackmon: [00:33:30] They told us he wanted that Conoco wanted to lease our land, not to drill for oil, but to drill. Two or three high pressure water wells down into a deep aquifer that runs underneath that part of the country. And over the ensuing year, he became a multimillionaire by selling water to Conoco Phillips, not oil. [00:33:57][27.1]
Rey Trevino: [00:33:59] Well, he was that he was, I guess, by the left. He was a pretty okay guy. [00:34:02][3.3]
David Blackmon: [00:34:03] He was a great guy, just the most wonderful man in the world. Maybe he was. [00:34:07][4.4]
Rey Trevino: [00:34:08] I would love to see that you love him. You know. [00:34:11][3.3]
David Blackmon: [00:34:12] There’s people like that all over Texas. [00:34:13][1.4]
Rey Trevino: [00:34:14] God bless Texas. God bless texts. I got to say it. [00:34:17][3.0]
Stuart Turley: [00:34:19] Well, I’ll tell you what. What do we got coming around the corn? Corn? Well, I’m right here. [00:34:25][5.8]
David Blackmon: [00:34:25] Corn. Okay. We’re talking about Fresca now. [00:34:27][1.9]
Stuart Turley: [00:34:28] I think once. [00:34:28][0.3]
Rey Trevino: [00:34:28] You’re cut off first. Well, I think you were cut off first last week. [00:34:31][3.0]
Stuart Turley: [00:34:32] Oh, yeah. Okay, Artie, give us your last words. [00:34:36][3.3]
Rey Trevino: [00:34:37] Oh, man. Let’s keep it up, everybody. Let’s just continue to share our knowledge with others, and that’s all we can do. [00:34:44][7.2]
Stuart Turley: [00:34:46] That was brilliant. Unusual, but brilliant. [00:34:49][2.2]
David Blackmon: [00:34:50] My final words are, God bless Texas, everybody. Have a good week. We’ll see you next time. [00:34:54][4.0]
Stuart Turley: [00:34:55] Sounds great, Bridget. You guys will see you guys soon. [00:34:55][0.0]