1 00:00:00,480 --> 00:00:02,880 Speaker 1: It's the Hammer and Nigel Show. Hello, my name is Nigel. 2 00:00:03,000 --> 00:00:06,680 Speaker 1: One of the things you may hear Trump talk about 3 00:00:06,720 --> 00:00:09,480 Speaker 1: in his State of the Union address tonight as Iran, 4 00:00:09,760 --> 00:00:14,160 Speaker 1: he's got to convince the American people why a surgical 5 00:00:14,240 --> 00:00:18,160 Speaker 1: strike is a good idea, and then what are the ramifications? 6 00:00:18,440 --> 00:00:22,200 Speaker 1: Will something like that send oil and gas prices into 7 00:00:22,239 --> 00:00:25,640 Speaker 1: the stratosphere? And here to break it down, our favorite 8 00:00:25,640 --> 00:00:29,280 Speaker 1: oil and gas expert, our very own landman, Jay Young. 9 00:00:29,880 --> 00:00:32,559 Speaker 1: Welcome back to the Hammer of Nigel Show. How are you, my. 10 00:00:32,560 --> 00:00:36,400 Speaker 2: Friend, man, I'm doing great, good. Good to hear your voice. 11 00:00:37,280 --> 00:00:37,960 Speaker 1: It's been a while. 12 00:00:38,000 --> 00:00:40,919 Speaker 2: Well, I've I've been on studio. I've been there in 13 00:00:40,920 --> 00:00:43,479 Speaker 2: the room with you guys. That's right, and I miss it. 14 00:00:43,600 --> 00:00:44,640 Speaker 2: I miss you guys. Man. 15 00:00:44,880 --> 00:00:47,919 Speaker 1: Well look, Jay, let me get your take here a 16 00:00:47,920 --> 00:00:51,840 Speaker 1: big picture. One of the things I think Trump needs 17 00:00:51,880 --> 00:00:55,440 Speaker 1: to do tonight is to illustrate to the American people 18 00:00:55,560 --> 00:00:59,760 Speaker 1: what he's accomplished specifically, and he could go down the 19 00:01:01,000 --> 00:01:04,080 Speaker 1: but when we're talking about oil and gas and energy 20 00:01:04,080 --> 00:01:07,920 Speaker 1: independence and deregulation, and we'll get to all the Iran 21 00:01:08,000 --> 00:01:09,720 Speaker 1: stuff here in just a minute. But what are some 22 00:01:09,840 --> 00:01:13,920 Speaker 1: of the things that Trump could brag about tonight win 23 00:01:13,959 --> 00:01:16,840 Speaker 1: in regard when we're talking about oil and gas. 24 00:01:17,400 --> 00:01:20,399 Speaker 2: Yeah, well, the big thing is going to be obviously 25 00:01:20,440 --> 00:01:24,520 Speaker 2: supplying demand and what's going to happen overseas, what's going 26 00:01:24,600 --> 00:01:29,000 Speaker 2: to disrupt It's all about disruption. If there's the Strait 27 00:01:29,080 --> 00:01:32,360 Speaker 2: of Hamus, if there's any twenty percent of the world's 28 00:01:32,360 --> 00:01:36,880 Speaker 2: oil goes through this to now every day, which is crazy, 29 00:01:37,360 --> 00:01:40,240 Speaker 2: that has that much power. But that's how much oil 30 00:01:40,480 --> 00:01:43,480 Speaker 2: is produced in some parts of the world. How much 31 00:01:43,600 --> 00:01:46,920 Speaker 2: is producing how much they don't need. The United States, 32 00:01:47,000 --> 00:01:50,200 Speaker 2: we produce thirteen million barrels a day, which is the 33 00:01:50,280 --> 00:01:55,000 Speaker 2: largest in the world. Our problem is we consume twenty 34 00:01:55,120 --> 00:01:59,480 Speaker 2: you know. Well, most countries they may they may like Iran, 35 00:01:59,720 --> 00:02:03,200 Speaker 2: they may they produce four million barrels a day. They 36 00:02:03,240 --> 00:02:05,960 Speaker 2: only they only need about one, you know. So they're 37 00:02:06,000 --> 00:02:10,880 Speaker 2: they're a surplus where we're not. We're the deficit. Wow, 38 00:02:10,919 --> 00:02:15,240 Speaker 2: So we need more oil. And when you have disruptions 39 00:02:15,320 --> 00:02:17,920 Speaker 2: like that, and when there's so many different countries that 40 00:02:17,960 --> 00:02:21,680 Speaker 2: are making so much money off of oil every day 41 00:02:21,800 --> 00:02:25,880 Speaker 2: every month, I mean, they get that's how they run 42 00:02:25,919 --> 00:02:28,519 Speaker 2: their whole countries literally, that's how they run there it's 43 00:02:28,520 --> 00:02:29,200 Speaker 2: like their budget. 44 00:02:29,320 --> 00:02:33,280 Speaker 1: Well, Jay, I guess the misconception I had possibly was 45 00:02:33,600 --> 00:02:38,480 Speaker 1: that once Donald Trump was in office and you know, 46 00:02:38,919 --> 00:02:43,760 Speaker 1: deregulation and opening up the you know, drill baby drill, 47 00:02:43,840 --> 00:02:45,519 Speaker 1: and you're saying it's still not there yet. 48 00:02:46,960 --> 00:02:51,200 Speaker 2: Well, it is as much as it can be. What's happened. 49 00:02:51,840 --> 00:02:54,959 Speaker 2: And what I mean by that, Joe, We we like 50 00:02:55,040 --> 00:02:57,160 Speaker 2: to drill for oil and gas. I mean, there's no question. 51 00:02:58,000 --> 00:03:02,120 Speaker 2: The problem is economics. If if if price all goes 52 00:03:02,160 --> 00:03:06,240 Speaker 2: down too far, people quit drilling, and they have. I mean, 53 00:03:06,240 --> 00:03:10,240 Speaker 2: there's been thirty forty percent less rigs drilling since Trump 54 00:03:10,360 --> 00:03:14,680 Speaker 2: took office, and the only reason is because the price 55 00:03:14,720 --> 00:03:17,560 Speaker 2: of oil has come down. Because if you take a well, 56 00:03:17,639 --> 00:03:19,520 Speaker 2: let's just say, we're gonna drill a well together a 57 00:03:19,520 --> 00:03:22,080 Speaker 2: man unage, We're gonna go, let's go, let's go drill. Well, 58 00:03:22,160 --> 00:03:22,880 Speaker 2: let's do it. 59 00:03:23,160 --> 00:03:25,480 Speaker 1: It's just just like Billy Bob. 60 00:03:26,720 --> 00:03:31,840 Speaker 2: Right, We'll call Billy Bob, We'll call Cooper, we'll call yeah, 61 00:03:32,000 --> 00:03:35,320 Speaker 2: I got it. Yeah. And I'm trying to think of 62 00:03:35,360 --> 00:03:38,600 Speaker 2: the guy that works in the field and they like, yes, 63 00:03:38,880 --> 00:03:41,160 Speaker 2: but but we're gonna we're gonna spend ten million bucks. 64 00:03:41,760 --> 00:03:44,880 Speaker 2: We're gonna drill a horizontal well well if you're not 65 00:03:45,000 --> 00:03:48,280 Speaker 2: drilling in the best areas in the premium basin, you 66 00:03:48,320 --> 00:03:51,920 Speaker 2: may only get three to four hundred thousand barrels over 67 00:03:51,960 --> 00:03:55,800 Speaker 2: that well. And then if if ald's not at sixty 68 00:03:56,280 --> 00:04:00,000 Speaker 2: seventy eighty bucks, you'll wait until the price goes up 69 00:04:00,040 --> 00:04:02,080 Speaker 2: before you drill that well, because you just don't want 70 00:04:02,080 --> 00:04:05,840 Speaker 2: to drill it at these lower prices because your break 71 00:04:05,880 --> 00:04:09,520 Speaker 2: even maybe fifty, gotcha, you know in some areas and 72 00:04:09,600 --> 00:04:12,920 Speaker 2: maybe fifty I mean areas we're drilling at King Operating 73 00:04:13,640 --> 00:04:16,520 Speaker 2: you on our website, but we're drilling in places that 74 00:04:16,600 --> 00:04:19,760 Speaker 2: have thirty thirty five dollars break even, but we're not 75 00:04:19,760 --> 00:04:22,680 Speaker 2: at the premium base and drilling shell wells and producing 76 00:04:23,320 --> 00:04:26,080 Speaker 2: you know, six million barrels a day. Like all the 77 00:04:26,120 --> 00:04:29,919 Speaker 2: bigger companies are there. So they have break evens and 78 00:04:29,960 --> 00:04:32,480 Speaker 2: they have you know, they have a board and they 79 00:04:32,520 --> 00:04:34,359 Speaker 2: have people and they're like, wait a minute, we're not 80 00:04:34,400 --> 00:04:36,840 Speaker 2: going to drill at sixty dollars oil. We're gonna wait 81 00:04:36,880 --> 00:04:39,200 Speaker 2: till it goes to seventy or eighty. So that's what happens. 82 00:04:40,279 --> 00:04:43,080 Speaker 2: We'll see a cycle because not as many people are 83 00:04:43,160 --> 00:04:48,600 Speaker 2: drilling as before and what Trump wanted. And you know 84 00:04:48,640 --> 00:04:51,600 Speaker 2: a lot of the old gas compans just started, I 85 00:04:51,640 --> 00:04:53,840 Speaker 2: don't say shooting the finger on the air, but they 86 00:04:54,040 --> 00:04:56,719 Speaker 2: just like Trump, Hey, we're not going to go drill 87 00:04:56,760 --> 00:05:00,560 Speaker 2: well to lose money. We're sorry, but we we love you, 88 00:05:00,800 --> 00:05:04,240 Speaker 2: but hey, we're all about money here. And unless you 89 00:05:04,279 --> 00:05:06,560 Speaker 2: give us a tremendous amount of money that we can 90 00:05:07,120 --> 00:05:09,359 Speaker 2: put in our coffers, we're not on drill these wells 91 00:05:09,440 --> 00:05:12,200 Speaker 2: right now. So we're not drilling as much in the 92 00:05:12,279 --> 00:05:12,800 Speaker 2: United States. 93 00:05:12,839 --> 00:05:16,240 Speaker 1: And then, okay, piggyback on that in your review, Jay Young, 94 00:05:16,839 --> 00:05:20,880 Speaker 1: oil and gas expert, how competitive is the United States 95 00:05:20,880 --> 00:05:25,160 Speaker 1: compared to other major producers. I'm talking Russia, I'm talking Iran, 96 00:05:25,200 --> 00:05:26,839 Speaker 1: I'm talking Saudi Arabia. 97 00:05:28,560 --> 00:05:33,720 Speaker 2: Very important, We're so important on that, okay, oh, global, 98 00:05:34,279 --> 00:05:37,440 Speaker 2: we need one hundred million barrels a day. The world 99 00:05:37,520 --> 00:05:39,479 Speaker 2: needs one hundred of about one hundred and three or four. 100 00:05:39,880 --> 00:05:41,800 Speaker 2: But let's say one hundred million barrels a day. We 101 00:05:41,880 --> 00:05:46,160 Speaker 2: produce thirteen. But and I say that because we've got 102 00:05:46,200 --> 00:05:49,360 Speaker 2: to we have the exports. You got all these different 103 00:05:49,360 --> 00:05:56,320 Speaker 2: countries that need oil, that produce oil, and their whole 104 00:05:56,320 --> 00:06:00,360 Speaker 2: countries like Venezuela. My gosh, we go off talking about 105 00:06:00,400 --> 00:06:03,360 Speaker 2: Venezuela for an hour. Sure, yeah, about the old there 106 00:06:03,480 --> 00:06:07,559 Speaker 2: or them, you know, starving Cuba, you know, with oil, 107 00:06:07,640 --> 00:06:10,320 Speaker 2: and that's not a good a good deal in my 108 00:06:10,400 --> 00:06:13,560 Speaker 2: opinion for Trump to do that. But you know, but 109 00:06:13,839 --> 00:06:17,680 Speaker 2: I do believe in using all to your advantage. And 110 00:06:18,000 --> 00:06:20,320 Speaker 2: you know, and and you know that oil was going 111 00:06:20,839 --> 00:06:23,760 Speaker 2: to China and so is drugs, you know, and going 112 00:06:23,760 --> 00:06:25,880 Speaker 2: to the United States, and I love Trump for that. 113 00:06:26,040 --> 00:06:32,000 Speaker 1: You're talking about the shadow fleets, right, the intermittent intermediary buyers, right, 114 00:06:32,200 --> 00:06:36,599 Speaker 1: that allow Iran oil to continue flowing despite all these sanctions, 115 00:06:36,640 --> 00:06:41,799 Speaker 1: which I do the sanctions work in your opinion, right, 116 00:06:42,000 --> 00:06:43,000 Speaker 1: that's a broad question. 117 00:06:43,760 --> 00:06:47,480 Speaker 2: They do, Yeah, And how like the tariffs work. I 118 00:06:47,600 --> 00:06:49,520 Speaker 2: like the idea of tariffs because it doesn't affect me. 119 00:06:49,880 --> 00:06:52,640 Speaker 2: But I got a buddy down the road, and you know, 120 00:06:53,120 --> 00:06:55,240 Speaker 2: he's in the import business, and he was going to 121 00:06:55,320 --> 00:06:57,520 Speaker 2: buy this. He's going to buy this deal for two 122 00:06:57,600 --> 00:07:00,680 Speaker 2: hundred grand and sell it for three fifty. Now it's 123 00:07:00,720 --> 00:07:03,799 Speaker 2: four hundred thousand. You know, He's like, wait a minute, 124 00:07:03,839 --> 00:07:06,280 Speaker 2: I can't sell it for three point fifty. By mind, 125 00:07:06,279 --> 00:07:08,920 Speaker 2: it for four hundred thousand. You know, these tariffs are 126 00:07:09,000 --> 00:07:12,720 Speaker 2: killing me. So you're right, there's there's so many different 127 00:07:12,720 --> 00:07:15,480 Speaker 2: things and so many different you know, you never know 128 00:07:15,480 --> 00:07:18,640 Speaker 2: what's gonna happen with Trump. And I'm very interested to 129 00:07:18,680 --> 00:07:21,480 Speaker 2: hear the State of the Union address tonight because you 130 00:07:21,480 --> 00:07:25,360 Speaker 2: don't know what's gonna happen. But hopefully we settled down, 131 00:07:26,200 --> 00:07:28,720 Speaker 2: we get back to drilling. But it's gonna take higher 132 00:07:28,720 --> 00:07:32,440 Speaker 2: oil prices to get back to drilling, and we're gonna 133 00:07:32,440 --> 00:07:34,240 Speaker 2: have to see that. Probably by the end of this 134 00:07:34,320 --> 00:07:37,400 Speaker 2: summer or or the end of the year, we'll see 135 00:07:37,480 --> 00:07:40,360 Speaker 2: higher oil and gas prices because we just don't sit. 136 00:07:40,840 --> 00:07:43,040 Speaker 2: We don't have it. We're not gonna have it by 137 00:07:43,080 --> 00:07:45,080 Speaker 2: the summertime and when we want to drive cars and 138 00:07:45,160 --> 00:07:48,160 Speaker 2: go on vacations, we just won't have the oil. So 139 00:07:48,240 --> 00:07:50,440 Speaker 2: we're gonna see higher prices later. 140 00:07:50,400 --> 00:07:53,240 Speaker 1: Because it does seem jay like the oil prices the 141 00:07:53,280 --> 00:07:55,440 Speaker 1: gas prices, I should say, what we're paying at the 142 00:07:55,480 --> 00:07:58,080 Speaker 1: pump has come down a little bit, has it not? 143 00:07:58,280 --> 00:08:03,120 Speaker 2: Or it has oh percent? Yeah, there's thirteen states that 144 00:08:03,160 --> 00:08:05,360 Speaker 2: are below two dollars a gallon, but. 145 00:08:05,320 --> 00:08:09,040 Speaker 1: That could all change with a some sort of surgical strike, 146 00:08:09,080 --> 00:08:12,680 Speaker 1: and I ran the Strait of Hormuz, as you referenced 147 00:08:12,720 --> 00:08:16,720 Speaker 1: at the beginning of this segment of major energy transit route, 148 00:08:17,200 --> 00:08:21,120 Speaker 1: and that oil supply is vulnerable if some sort of 149 00:08:21,200 --> 00:08:26,560 Speaker 1: regional conflict escalates. 150 00:08:24,600 --> 00:08:28,080 Speaker 2: When the United States realizes how much oil is coming 151 00:08:28,120 --> 00:08:31,320 Speaker 2: off the market right now with oil gas companies not 152 00:08:31,520 --> 00:08:36,440 Speaker 2: drilling and the whales that are online declined, and if 153 00:08:36,480 --> 00:08:40,080 Speaker 2: there's any type and I'm saying this because you never know, 154 00:08:40,200 --> 00:08:43,440 Speaker 2: and I'm just saying that if you had those two 155 00:08:43,480 --> 00:08:48,240 Speaker 2: things happen, and let's say you have somebody that that 156 00:08:49,240 --> 00:08:53,240 Speaker 2: comes in and Iran or something happens on the oil supply, 157 00:08:53,920 --> 00:08:57,840 Speaker 2: you could see us three four dollars gasoline again, one 158 00:08:57,960 --> 00:09:00,320 Speaker 2: hundred dollars oil, one hundred and twenty dollars. Old. Well, 159 00:09:00,720 --> 00:09:04,400 Speaker 2: we've been there before. I mean, all right, we will 160 00:09:04,400 --> 00:09:06,320 Speaker 2: be there again. I don't know when, but it's going 161 00:09:06,360 --> 00:09:07,120 Speaker 2: to happen again. 162 00:09:07,520 --> 00:09:11,960 Speaker 1: So finally, later before we let you go, Jay Young, 163 00:09:11,960 --> 00:09:15,720 Speaker 1: oil and gas expert, longtime front of the show. Anything 164 00:09:15,840 --> 00:09:20,040 Speaker 1: keeping you optimistic in general about the future of gas prices, 165 00:09:20,080 --> 00:09:24,600 Speaker 1: oil and gas and maybe a wild card in energy 166 00:09:24,880 --> 00:09:28,760 Speaker 1: over the next decade. Anything that sticks out to you. 167 00:09:30,040 --> 00:09:33,480 Speaker 2: Man, good question, Nigelle. I appreciate that. And what I 168 00:09:33,559 --> 00:09:37,240 Speaker 2: love is, so we're in the only gas business and 169 00:09:37,280 --> 00:09:40,800 Speaker 2: we we drill for oil and gas. We're drilling wells 170 00:09:40,880 --> 00:09:44,960 Speaker 2: right now twenty percent if not thirty percent cheaper in 171 00:09:45,000 --> 00:09:49,480 Speaker 2: some services. There's as many services to drill and oily 172 00:09:49,520 --> 00:09:52,560 Speaker 2: gas well and to produce it than there is to 173 00:09:52,600 --> 00:09:57,440 Speaker 2: build a house. Really wow, that many different people. And yes, 174 00:09:57,520 --> 00:10:01,800 Speaker 2: we're getting better bids on better ways to drill wells 175 00:10:02,200 --> 00:10:05,400 Speaker 2: and getting we're drilling them for what's costing ten it's 176 00:10:05,440 --> 00:10:09,320 Speaker 2: costing us eight. We're gonna drill these wells at eight million, 177 00:10:10,000 --> 00:10:12,520 Speaker 2: and then by the end of this year we're gonna 178 00:10:12,559 --> 00:10:16,880 Speaker 2: be producing these wells at a higher old price, which 179 00:10:16,840 --> 00:10:18,840 Speaker 2: is what you want to do. I mean, Bilo sell Hi, 180 00:10:19,080 --> 00:10:22,680 Speaker 2: Let's drill at eight million, produce it when all goes 181 00:10:22,720 --> 00:10:25,959 Speaker 2: to eighty one hundred dollars a barrel. That's what we're 182 00:10:25,960 --> 00:10:28,319 Speaker 2: gonna be doing this year. So Nigel call me up 183 00:10:29,040 --> 00:10:31,000 Speaker 2: and uh, you know, I may I may have to 184 00:10:31,240 --> 00:10:33,839 Speaker 2: pick up my private plane or something, because man, it's 185 00:10:33,840 --> 00:10:35,720 Speaker 2: gonna be so good for us and our clients. I 186 00:10:35,760 --> 00:10:37,200 Speaker 2: love it. By the end of the year, it's gonna 187 00:10:37,200 --> 00:10:38,679 Speaker 2: be fun where it can be fun. 188 00:10:38,720 --> 00:10:43,840 Speaker 1: Where could people find more out about you? You got 189 00:10:43,840 --> 00:10:45,640 Speaker 1: a book, and you've got a website. If you want 190 00:10:45,640 --> 00:10:47,120 Speaker 1: to mention that real quickly, well. 191 00:10:47,160 --> 00:10:52,080 Speaker 2: Yeah, yeah, King Operating dot com. King Operating dot com. 192 00:10:52,080 --> 00:10:55,199 Speaker 2: Go on the website. Say hey, I listened to Jay 193 00:10:55,360 --> 00:10:58,959 Speaker 2: with Nigel and I'll send you a free autograph, copy 194 00:10:58,960 --> 00:11:02,480 Speaker 2: of my book. Love to see you there, and I'll 195 00:11:02,480 --> 00:11:05,760 Speaker 2: send you a copy of my book, autograph and anything 196 00:11:05,760 --> 00:11:07,560 Speaker 2: else if you have any questions about the oil and 197 00:11:07,559 --> 00:11:11,600 Speaker 2: gas business or anything. I'm Nigel's old guys, which means 198 00:11:11,640 --> 00:11:12,360 Speaker 2: I'm your old guy. 199 00:11:12,920 --> 00:11:15,240 Speaker 1: Hey, the next time I see you, we'll be on 200 00:11:15,280 --> 00:11:18,559 Speaker 1: a private plane with Billy Bob Thornton and to me more. Okay, 201 00:11:18,840 --> 00:11:22,960 Speaker 1: mister Landman, that's Jay Young, oil and gas export expert. 202 00:11:23,080 --> 00:11:25,320 Speaker 1: Thank you so much, sir, have a great week. 203 00:11:25,720 --> 00:11:27,120 Speaker 2: Thanks Man, you too. Thanks IV. 204 00:11:27,400 --> 00:11:28,840 Speaker 1: It's the Hammer and Nigel Show.