WEBVTT - Boeing Union Endorses Offer, America's Oil Resurgence 0:00:02.440 --> 0:00:09.119 Bloomberg Audio Studios, Podcasts, radio news. You're listening to the 0:00:09.160 --> 0:00:13.280 Bloomberg Intelligence Podcast. Catch us live weekdays at ten am 0:00:13.360 --> 0:00:16.360 Eastern on Affo, Cardplay and Android Auto with the Bloomberg 0:00:16.400 --> 0:00:19.720 Business App. Listen on demand wherever you get your podcasts, 0:00:19.960 --> 0:00:22.800 or watch us live on YouTube. 0:00:23.520 --> 0:00:25.160 Boeing is John Tucker is just reporting. 0:00:25.200 --> 0:00:27.680 It looks like the leaders of the union and Boeing 0:00:27.720 --> 0:00:29.800 they have an agreement. I think this is the third 0:00:29.800 --> 0:00:31.800 agreement they're going to bring to the rank and file, 0:00:32.440 --> 0:00:34.560 and let's see if the rank and file approves it, 0:00:34.560 --> 0:00:36.040 because they've turned down the last two. 0:00:36.040 --> 0:00:38.440 But it's thirty percent for four years and bonuses. 0:00:38.520 --> 0:00:38.800 I don't know. 0:00:38.880 --> 0:00:40.800 It sounds pretty good to me. Let's check it out 0:00:40.800 --> 0:00:45.960 with Thomas Black. He's a Bloomberg opinion Columnisty covers logistics, manufacturing, aerospace. Thomas, 0:00:46.040 --> 0:00:48.080 it seems like a good deal to me. But what 0:00:48.120 --> 0:00:50.760 do I know what's going on here with Boeing in 0:00:50.800 --> 0:00:51.720 their union these days. 0:00:52.920 --> 0:00:54.960 Yeah, it looks like a quite a rich deal. 0:00:55.360 --> 0:00:57.440 We'll see if the workers want to take it. They 0:00:58.200 --> 0:01:03.000 they started out with a nominal twenty five percent rays 0:01:03.200 --> 0:01:05.560 offer and it's now the thirty eight percent. 0:01:06.120 --> 0:01:08.520 But if you compound that, which is how. 0:01:08.360 --> 0:01:12.199 You should do it, it's a forty four percent raise 0:01:12.280 --> 0:01:13.119 over four years. 0:01:13.160 --> 0:01:14.679 So that's pretty chunky. 0:01:15.480 --> 0:01:18.680 I mean, when we think about these negotiations back and forth, 0:01:18.760 --> 0:01:20.559 does this seem to be lengthy? I mean, I'm thinking 0:01:20.560 --> 0:01:23.000 back to the writer's strike that went on for some time, 0:01:23.040 --> 0:01:25.000 and you have to really hit a middle place to 0:01:25.040 --> 0:01:28.039 where everyone's coming to a compromise. How do we think 0:01:28.080 --> 0:01:30.679 about this with Boeing moving forward and getting production back 0:01:30.680 --> 0:01:32.040 to what it is looking for. 0:01:33.600 --> 0:01:38.039 Well, the workers have all the power right now. They 0:01:38.120 --> 0:01:40.800 really do have quite a bit of leverage, and that's 0:01:40.800 --> 0:01:44.280 why Boeing has taken so much time trying to settle this. 0:01:45.200 --> 0:01:49.000 The Boeing is in bad shape financially, they're losing money. 0:01:49.600 --> 0:01:52.480 They have customers who are climbering for aircraft. They have 0:01:52.840 --> 0:01:56.600 suppliers who are trying to figure out production schedules so 0:01:56.640 --> 0:02:01.520 that they can ramp up their production. So Boeing really 0:02:01.520 --> 0:02:04.040 needs to get its plants started. So the workers know 0:02:04.120 --> 0:02:07.200 this and that's why they've been holding out. And they've 0:02:07.360 --> 0:02:08.920 got a deal on the table. Let's see if they 0:02:08.960 --> 0:02:11.360 take it. If they don't, I think there's a little 0:02:11.360 --> 0:02:15.000 bit of an anger issue maybe there, Maybe the workers 0:02:15.040 --> 0:02:18.240 want to lash out at the company because ten years 0:02:18.280 --> 0:02:20.560 ago they did get a raw deal from the company 0:02:20.600 --> 0:02:21.720 when it had the upper hand. 0:02:21.840 --> 0:02:23.160 So the tables have turned. 0:02:23.400 --> 0:02:25.440 But now we're going to see Monday if they're going 0:02:25.480 --> 0:02:27.520 to accept this deal and get production cranking up. 0:02:28.200 --> 0:02:30.600 So, Thomas, when you talk to people kind of within 0:02:30.680 --> 0:02:34.800 the process on both sides here, what's the feeling. I 0:02:34.800 --> 0:02:36.519 mean at the end of the day, is that it 0:02:36.639 --> 0:02:37.840 just a numbers thing. 0:02:37.919 --> 0:02:40.239 Is it thirty eight percent? No, I want forty two percent? 0:02:40.360 --> 0:02:42.720 Or is there other issues that are out there that 0:02:42.760 --> 0:02:46.640 are challenging here, because it's surprising that they haven't that 0:02:46.639 --> 0:02:48.800 they I guess that it's surprising that the negotiations has 0:02:48.800 --> 0:02:49.639 been so difficult. 0:02:49.639 --> 0:02:50.560 What do you think they're looking for? 0:02:51.360 --> 0:02:54.399 Yeah, I think the workers really wanted to reinstate their 0:02:54.480 --> 0:02:58.679 defined benefit pension plan, which again ten years ago that 0:02:59.600 --> 0:03:03.320 was taken away from them. As you know, those plans 0:03:03.639 --> 0:03:07.639 have been declining over the decades. There are very few 0:03:07.720 --> 0:03:11.960 out there right where you get a certain monthly retirement 0:03:12.000 --> 0:03:15.079 stipen and that lasts for the rest of your life. 0:03:15.480 --> 0:03:17.760 It's now all the four to one K savings plan. 0:03:17.880 --> 0:03:20.600 So they were really trying to bring that back, which 0:03:21.200 --> 0:03:25.720 would be unprecedented. This deal does not do that. So 0:03:25.760 --> 0:03:28.520 we'll see if the pay ray was enough. And there's 0:03:28.560 --> 0:03:33.160 also a twelve thousand dollars signing bonus to sweeten the deals. 0:03:33.200 --> 0:03:35.440 So we'll just see if the workers are willing to 0:03:35.480 --> 0:03:35.880 accept this. 0:03:36.880 --> 0:03:39.000 As you know in your story, there's not one, but 0:03:39.080 --> 0:03:42.760 two issues. Of course, you have the strike here, but additionally, 0:03:42.840 --> 0:03:44.640 on the other end, we have to talk about this 0:03:44.840 --> 0:03:48.800 fragile supply chain environment for the company. When you're talking 0:03:48.800 --> 0:03:51.800 to sources and just research more broadly, what does it 0:03:51.840 --> 0:03:53.520 seem as though it will be the next thing to 0:03:53.600 --> 0:03:56.760 push Boeing forward? I mean this is still a lingering 0:03:56.800 --> 0:03:58.120 issue for them. 0:03:58.760 --> 0:04:01.640 Yeah, well, they Boeing has all kinds of problems in 0:04:01.680 --> 0:04:05.760 its factory floor. They've had quality issues, They've had work 0:04:06.720 --> 0:04:10.960 coming in at different stages that's got them out of sequence, 0:04:11.000 --> 0:04:14.120 and that's caused all kinds of problems. They've had supplier 0:04:14.240 --> 0:04:17.040 quality issues, so that they've got some real problems to tackle. 0:04:17.080 --> 0:04:19.480 Now this is really just the first step is to 0:04:19.520 --> 0:04:24.680 get workers back in the factories. Number one issue for 0:04:25.160 --> 0:04:27.800 Kelly Orkberg, the CEO at Boeing, is to heal the 0:04:27.880 --> 0:04:29.360 rift with the employers. 0:04:29.440 --> 0:04:32.359 They have to get them on board and really change 0:04:32.400 --> 0:04:35.599 the culture on the factory floor so that they're making 0:04:35.640 --> 0:04:37.760 those quality planes and very efficiently. 0:04:38.600 --> 0:04:42.160 On the other side, it's the suppliers. The suppliers have 0:04:42.240 --> 0:04:43.600 been whiplashed quite a bit. 0:04:43.720 --> 0:04:45.800 It was the pandemic that hurt them, and then we 0:04:45.880 --> 0:04:49.760 had the Max grounding because of the fatal crashes there, 0:04:49.800 --> 0:04:52.760 and we had problems with the seven eighty seven aircraft 0:04:52.760 --> 0:04:56.000 that was grounded for a while, so they've really had 0:04:56.080 --> 0:05:00.000 they haven't been able to just produce regularly. They've had 0:05:00.040 --> 0:05:03.720 at all kinds of on and off situations with Boeing, 0:05:03.839 --> 0:05:07.240 so that healing that supplier base is key as well too. 0:05:07.960 --> 0:05:10.279 So the good thing about Boeing is that they don't 0:05:10.279 --> 0:05:11.960 have to worry about the customers. 0:05:12.279 --> 0:05:15.080 The customers want the planes. The planes are on order, 0:05:15.120 --> 0:05:16.919 they have a massive backlog. 0:05:17.480 --> 0:05:20.760 They really just need to get their production up and 0:05:20.960 --> 0:05:25.080 ramp it up and show the regulators the FAA that 0:05:25.160 --> 0:05:28.640 they can make quality planes and then they'll be in 0:05:28.680 --> 0:05:29.919 good shape, all right. 0:05:29.960 --> 0:05:31.440 Thomas Black, thank you so much for joining us. 0:05:31.440 --> 0:05:35.000 Thomas Blanky's a Columnstrom Bloomberg opinion covering all the logistics stuff, 0:05:35.000 --> 0:05:36.279 talking about Boeing. 0:05:36.279 --> 0:05:36.440 Here. 0:05:36.520 --> 0:05:41.640 Now you're listening to the Bloomberg Intelligence Podcast. Catch us 0:05:41.680 --> 0:05:45.080 live weekdays at ten am Eastern on applecar Play and 0:05:45.080 --> 0:05:48.000 Android Auto with the Bloomberg Business app. You can also 0:05:48.080 --> 0:05:51.560 listen live on Amazon Alexa from our flagship New York station. 0:05:51.920 --> 0:05:54.719 Just say Alexa Play Bloomberg eleven thirty. 0:05:55.960 --> 0:05:58.080 Let's get back to the economic data of the day. 0:05:58.080 --> 0:05:59.960 That's the jobs number came in with With the next 0:06:00.000 --> 0:06:02.200 A lot of folks said they get ready for that. 0:06:02.240 --> 0:06:02.800 It was to be. 0:06:02.760 --> 0:06:05.160 Expected with hurricanes and strikes and all that kind of stuff. 0:06:05.240 --> 0:06:07.080 Let's check in with an expert here, Jenny Biley. She's 0:06:07.120 --> 0:06:10.120 a division president at Employe Bridge. Jenny, what did you 0:06:10.200 --> 0:06:12.360 take out of the labor number today? 0:06:13.320 --> 0:06:18.599 Yeah, this was a tough report. Certainly, I kind of 0:06:18.600 --> 0:06:20.359 will refer to it a little bit as maybe this 0:06:20.520 --> 0:06:24.000 was the October surprise that everyone was always waiting for. 0:06:24.080 --> 0:06:28.000 But we know that many of these job cuts, you 0:06:28.040 --> 0:06:30.120 know that are happening. A lot of it came from 0:06:30.200 --> 0:06:35.039 the impacts of the hurricane and the strikes. However, most 0:06:35.040 --> 0:06:37.880 of the job growth that we've discussed this before on 0:06:37.920 --> 0:06:41.560 your program, most of the job growth is really coming 0:06:41.640 --> 0:06:45.680 from the government sector and the healthcare sector. So if 0:06:45.720 --> 0:06:50.200 you look at this private number, we actually lost jobs. 0:06:50.240 --> 0:06:54.640 If you back out the government gain of forty thousand, 0:06:54.240 --> 0:06:56.880 we would have lost jobs. A private sector would have 0:06:56.920 --> 0:07:01.800 lost twenty eight thousand. So this this is a concerning report. 0:07:01.920 --> 0:07:05.680 Even with the hurricane and even with the strikes. You know, 0:07:05.800 --> 0:07:11.760 across the board, many of the sectors are really losing jobs, 0:07:11.800 --> 0:07:17.200 and especially you know, that manufacturing number had a loss 0:07:17.480 --> 0:07:20.400 of I believe forty six thousand jobs. And then the 0:07:20.440 --> 0:07:25.720 sector that I'm in, the temporary help sector, lost almost 0:07:25.760 --> 0:07:30.200 fifty thousand jobs, and so that is concerning as well. 0:07:30.360 --> 0:07:33.560 You can see that companies are still very cautious to hire, 0:07:34.160 --> 0:07:37.960 and they're letting their temporary workers, you know, go first 0:07:38.040 --> 0:07:42.040 as they try to hold on to their permanent payrolls 0:07:42.040 --> 0:07:43.240 and permanent employees. 0:07:44.040 --> 0:07:46.400 I mean, we're just under a week away from the 0:07:46.440 --> 0:07:48.440 next FED meeting, and of course this is going to 0:07:48.440 --> 0:07:51.000 be some data that the Federal Reserve will be parsing. 0:07:51.360 --> 0:07:53.520 How should we be thinking about this in the context 0:07:53.640 --> 0:07:56.560 of the rate cut environment and what trajectory could look 0:07:56.600 --> 0:07:59.720 like at this next meeting and beyond, well, you. 0:07:59.680 --> 0:08:02.000 Know, I think the Fed will really dig into this 0:08:02.120 --> 0:08:07.600 report because it's not just the October numbers that look 0:08:07.720 --> 0:08:11.640 so soft, but they also went back and revised the 0:08:11.720 --> 0:08:15.200 prior two months downward and took another one hundred and 0:08:15.280 --> 0:08:20.360 twelve thousand jobs out of the job market. So I 0:08:20.360 --> 0:08:23.320 think the FED will be looking at this report and saying, 0:08:23.320 --> 0:08:26.080 you know, the job the job market is not as 0:08:26.160 --> 0:08:30.640 strong as maybe we thought it was, and we are 0:08:30.680 --> 0:08:33.880 starting to see even though wages are still up, I 0:08:33.920 --> 0:08:38.280 can tell you wages are starting to soften. They're certainly 0:08:38.320 --> 0:08:42.480 not keeping up, you know, with inflationary costs. So I 0:08:42.559 --> 0:08:46.240 do believe that the FED will look at this report 0:08:46.280 --> 0:08:49.000 and look at these numbers and what's happening with unemployment, 0:08:49.720 --> 0:08:54.319 the participation rate, where the job growth is coming from, 0:08:54.720 --> 0:08:57.200 and realized that, you know, this is this is a 0:08:57.200 --> 0:09:01.800 bit of a challenging job market. And in other reports too, 0:09:01.840 --> 0:09:06.080 we are seeing, you know, increase in layoffs and many sectors, 0:09:06.200 --> 0:09:09.520 I know, the challenger in Gray report came out and 0:09:09.640 --> 0:09:13.080 again showed, you know that layoffs continue to happen. So 0:09:13.559 --> 0:09:16.400 there are certainly some concerns out there in this in 0:09:16.440 --> 0:09:18.480 this job market JO just. 0:09:18.440 --> 0:09:23.160 Thirty seconds left here, the wage inflation or the wage 0:09:23.440 --> 0:09:25.600 four percent seems pretty solid to me, but you see 0:09:25.640 --> 0:09:27.000 some a little bit of concern out there. 0:09:27.840 --> 0:09:28.080 I do. 0:09:28.200 --> 0:09:32.760 I think employers have you know, been increasing wages really 0:09:32.800 --> 0:09:35.920 for quite a few years, and at this point, with 0:09:37.040 --> 0:09:39.840 where the job market is, I think that that's going 0:09:39.880 --> 0:09:43.959 to just flatten off. That's what we're hearing from employers, 0:09:44.120 --> 0:09:48.840 you know, large employers, mid size employers, they're really watching 0:09:49.240 --> 0:09:52.040 their labor costs and they're having to be more conservative. 0:09:52.440 --> 0:09:54.199 Johnny, thank you so much for joining us. We always 0:09:54.240 --> 0:09:57.319 appreciate chatting with you on these important jobs days. Joinny Biley. 0:09:57.360 --> 0:10:02.040 She's a chief workforce analyst at employee Bridge, joining us 0:10:02.240 --> 0:10:05.600 via zoom here again, the nonfarm payroll came in at 0:10:05.640 --> 0:10:08.720 twelve thousand. The consensus essmenate was for one hundred thousand. 0:10:09.000 --> 0:10:11.320 Last month was two hundred and fifty four thousand. A 0:10:11.320 --> 0:10:13.280 lot of economs to say, you know, there's hurricane effects, 0:10:13.320 --> 0:10:16.880 there's layoff effects, so got to take that into account. 0:10:18.040 --> 0:10:21.959 You're listening to the Bloomberg Intelligence Podcast. Catch us live 0:10:22.040 --> 0:10:24.719 weekdays at ten am Eastern on AFO, card playing and 0:10:24.840 --> 0:10:27.760 broud Otto with the Bloomberg Business app. Listen on demand 0:10:27.800 --> 0:10:32.120 wherever you get your podcasts or watch us live on YouTube. 0:10:32.880 --> 0:10:35.960 Let's stay on the labor front here and get a 0:10:36.000 --> 0:10:40.400 sense of kind of where we are in terms of DEI. 0:10:39.960 --> 0:10:42.280 Diversity, equity and inclusion. 0:10:42.320 --> 0:10:43.199 Equity and inclusion. 0:10:43.280 --> 0:10:46.400 Thank you very much. It seems I'm not sure it's 0:10:46.440 --> 0:10:49.280 waxing or waning, and some companies are backing away from it. 0:10:49.360 --> 0:10:51.920 Someone companies continue to lean into it. Alan Schwyer joins us. 0:10:52.080 --> 0:10:54.000 He is a principal researcher of human capital at the 0:10:54.000 --> 0:10:54.679 Conference Board. 0:10:55.559 --> 0:10:57.480 Alan, thanks so much for joining us here. 0:10:57.480 --> 0:11:01.520 As we think about DEI, we've seen some fairly high profile, 0:11:01.640 --> 0:11:04.360 publicly traded companies kind of back away a little bit 0:11:04.400 --> 0:11:05.800 from that. Can you give us a sense kind of 0:11:05.800 --> 0:11:09.480 where we are on diversity, equity and inclusion in corporate America? 0:11:10.679 --> 0:11:13.600 Yeah, sure, you know, I think there are a lot 0:11:13.640 --> 0:11:17.760 of reports of organizations moving away from DEI or backing off, 0:11:18.280 --> 0:11:22.119 if not canceling DEI, but they're they're very much the minority. 0:11:22.920 --> 0:11:25.600 Our research over the past year and those that of 0:11:25.640 --> 0:11:29.720 others really shows that about eighty to ninety percent of 0:11:29.840 --> 0:11:34.439 organizations are holding the course or expanding their DEI programs. 0:11:34.520 --> 0:11:37.760 So we think it's maybe gets a little more attention 0:11:37.920 --> 0:11:41.880 when when someone you know quits their d I programs, 0:11:41.880 --> 0:11:43.600 but the great majority are holding firm. 0:11:44.240 --> 0:11:46.120 I mean, what have been the effects? I mean, of course, 0:11:46.160 --> 0:11:49.600 we know last year the Supreme Court did reverse affirmative action. 0:11:49.679 --> 0:11:51.760 The ruling there has that had an impact at all 0:11:51.760 --> 0:11:54.080 when we think about hiring in the corporate America space. 0:11:55.679 --> 0:11:59.480 Yeah, it has. You know, technically the Supreme Court ruling 0:11:59.520 --> 0:12:02.760 because this IDOL six does not have an impact on 0:12:02.800 --> 0:12:05.040 the workforce, but we know that it has a chilling 0:12:05.040 --> 0:12:09.560 effect on DEI programs. In fact, our most recent research 0:12:09.600 --> 0:12:13.640 shows that more than two thirds of executives say that 0:12:13.720 --> 0:12:16.480 it is putting a negative having a negative effect on 0:12:16.520 --> 0:12:20.960 their DEI programs. So yeah, I mean, the Supreme Court 0:12:20.960 --> 0:12:23.679 decision has certainly made an impact. 0:12:25.320 --> 0:12:28.040 What are you seeing from workers themselves? What are workers 0:12:28.240 --> 0:12:31.800 looking for? Are they embracing DEI? Is this something they 0:12:31.800 --> 0:12:33.960 feel has value within their workplace? 0:12:35.200 --> 0:12:35.440 Yeah. 0:12:35.480 --> 0:12:38.400 We just surveyed the US workforce. We had a big sample, 0:12:38.480 --> 0:12:42.960 almost fourteen hundred workers, managers and up to the director level, 0:12:43.600 --> 0:12:47.360 and workers are saying they want DEI. In fact, the 0:12:47.400 --> 0:12:50.920 majorities say they would not work or would only reluctantly 0:12:50.960 --> 0:12:54.280 work in an organization that does not take DEI seriously. 0:12:54.640 --> 0:12:59.000 So that's a powerful signal, and it differs between groups 0:12:59.160 --> 0:13:03.000 at work, but over all, the majority of workers do 0:13:03.160 --> 0:13:05.880 want to see DEI initiatives and want to work in 0:13:05.920 --> 0:13:08.400 diverse organizations, according to our research. 0:13:08.679 --> 0:13:11.320 So from an investor perspective, of course, people are really 0:13:11.360 --> 0:13:14.040 thinking about returns. Have there has there been any data 0:13:14.080 --> 0:13:17.319 to show that this actually impacts returns from companies. 0:13:18.320 --> 0:13:20.280 No, it's a good question, and it's very hard to 0:13:20.400 --> 0:13:24.640 link DEI programs directly to financial incomes, but we know 0:13:24.720 --> 0:13:28.000 that it does drive engagement. In fact, our survey respondents 0:13:28.040 --> 0:13:33.000 tell us that it improves engagement, improves belonging, improves inclusion, 0:13:33.520 --> 0:13:36.640 and improves retention. And if it does those things, then 0:13:37.120 --> 0:13:39.480 you know, naturally there's a there's a link, but it's 0:13:39.520 --> 0:13:42.600 not a direct link to financial performance. 0:13:44.400 --> 0:13:48.520 So Dan, what's the Are there certain industries within corporate 0:13:48.559 --> 0:13:51.720 America that are more on board with DEI versus maybe 0:13:52.000 --> 0:13:52.560 some others. 0:13:53.880 --> 0:13:58.520 Yeah, in this research, we found that the services sector 0:13:58.920 --> 0:14:02.760 is you know, the responses from employees in the services 0:14:02.880 --> 0:14:08.200 sector are certainly stronger than in the core manufacturing type 0:14:08.520 --> 0:14:16.640 industries and not unexpected. But again, overall, the workers want 0:14:16.679 --> 0:14:19.520 to see more D. But you're right in certain industries 0:14:19.560 --> 0:14:25.440 there is a stronger preference for more DEI programs than 0:14:25.440 --> 0:14:25.920 in others. 0:14:26.480 --> 0:14:29.680 Can you also speak to particular age demographics. Is there 0:14:29.720 --> 0:14:34.800 any difference in terms of which generations are embracing the push? 0:14:34.920 --> 0:14:37.520 Yeah, and this is really important, I think too, because 0:14:38.560 --> 0:14:41.040 I don't think anyone will be really surprised to hear 0:14:41.080 --> 0:14:46.800 that the younger generations, millennials and Gen Z are more 0:14:46.840 --> 0:14:52.800 in favor, more demand, more DEI expect more than older generations. 0:14:53.520 --> 0:14:56.560 And we know that those generations will form sixty percent 0:14:56.640 --> 0:14:59.360 or more of the workforce by twenty thirty. You know, 0:15:00.080 --> 0:15:04.040 I may the same is true for women and minorities. 0:15:04.400 --> 0:15:08.160 Women and minorities are already the majority of the workforce 0:15:08.280 --> 0:15:12.600 and have much greater expectation in demand for D in 0:15:12.640 --> 0:15:15.920 the workforce. So we think, you know, demographics are destiny. 0:15:16.000 --> 0:15:19.560 This is happening very quickly. In an organization that really 0:15:19.600 --> 0:15:23.560 actively resists this will probably struggle to survive, I mean, 0:15:23.600 --> 0:15:26.320 from finding talent and even finding customers. 0:15:26.600 --> 0:15:28.600 With about thirty seconds, I am looking at this story 0:15:28.600 --> 0:15:31.800 that says Boeing dismantles DEI team as pressure builds on 0:15:31.840 --> 0:15:34.720 the new CEO. Have you seen a shift of corporate 0:15:35.240 --> 0:15:38.320 different companies actually push moving away from DEI and not 0:15:38.400 --> 0:15:42.120 really seeing it as a priority. 0:15:42.200 --> 0:15:42.400 Yeah. 0:15:42.440 --> 0:15:46.200 I think more are moving away from the terms. They 0:15:46.200 --> 0:15:49.960 can be a lightning rod, and they're focusing on the 0:15:50.000 --> 0:15:51.280 work more than the words. 0:15:52.720 --> 0:15:53.160 For sure. 0:15:53.320 --> 0:15:58.080 Some are backing away, you know, more comprehensively. Most are 0:15:58.160 --> 0:16:01.920 changing how they describe it, continuing with the work. 0:16:01.680 --> 0:16:03.480 All right, We'll see how it plays out. Certainly a 0:16:03.520 --> 0:16:06.880 big part of the culture here at Bloomberg. Alan Schwier, 0:16:07.080 --> 0:16:09.640 Principal researcher of Human Capital at the Conference Board, joining 0:16:09.680 --> 0:16:13.160 us from Charleston, South Carolina. 0:16:17.400 --> 0:16:21.280 You're listening to the Bloomberg Intelligence Podcast. Catch us live 0:16:21.360 --> 0:16:24.880 weekdays at ten am Eastern on applecard Play and Android 0:16:24.920 --> 0:16:28.080 Auto with the Bloomberg Business. You can also listen live 0:16:28.160 --> 0:16:31.320 on Amazon Alexa from our flagship New York station, Just 0:16:31.400 --> 0:16:34.760 Say Alexa playing Bloomberg eleven thirty. 0:16:35.760 --> 0:16:37.920 David Weady joins us. He's one of the reporters on 0:16:37.960 --> 0:16:40.080 that story. He's an energy reporter for Bloomberg News. This 0:16:40.120 --> 0:16:41.880 is our big take story, and we love the big 0:16:41.920 --> 0:16:46.280 take stories on Bloomberg. Here, David, how is the oil 0:16:46.320 --> 0:16:50.120 and gas industry becoming more productive at in the field. 0:16:51.120 --> 0:16:54.120 Yeah, this was something that really surprised us in the 0:16:54.160 --> 0:16:57.480 oil industry for how far it spanned beyond just the 0:16:57.520 --> 0:17:00.680 industry itself into other parts of the ECONO. They're doing 0:17:00.680 --> 0:17:01.840 it just through little ways. 0:17:02.520 --> 0:17:03.080 You know. 0:17:03.160 --> 0:17:05.560 Your first guess, you might think, oh, it's artificial intelligence 0:17:05.560 --> 0:17:07.520 of what doing it, But really it's not even that 0:17:07.680 --> 0:17:10.520 we've barely scratched the surface on using AI. It's just 0:17:10.560 --> 0:17:12.560 a bunch of little things where on their own wouldn't 0:17:12.560 --> 0:17:14.000 move the needle, but you add them all up and 0:17:14.000 --> 0:17:17.320 it's making a big difference. It's little things like you know, 0:17:17.440 --> 0:17:21.280 incentives to the workers to drill faster, you know, catered 0:17:21.320 --> 0:17:25.040 barbecue lunches out of the rigsite, remodeling their living quarters. 0:17:25.119 --> 0:17:28.440 It's drilling in a unique pattern in a U shape 0:17:28.600 --> 0:17:32.360 where you couldn't figure out a way to get all 0:17:32.359 --> 0:17:33.679 the rest of the oil out of the ground and 0:17:33.720 --> 0:17:35.840 you have a small footprint. So instead what you do 0:17:35.920 --> 0:17:39.280 is you drill down sideways and then you turn and 0:17:39.320 --> 0:17:41.680 go one hundred degrees the other direction to capture the 0:17:41.760 --> 0:17:43.640 rest of that oil. That was a concept that could 0:17:43.640 --> 0:17:46.760 never even be thought about earlier in the years as 0:17:46.800 --> 0:17:49.000 we just sort of kept playing around with ways to 0:17:49.119 --> 0:17:51.239 drill underground. We figured out a way to do that 0:17:51.320 --> 0:17:53.840 and to do it correctly. You know, it's also to 0:17:53.920 --> 0:17:57.359 figure out how to frack two wells at one time, 0:17:57.600 --> 0:18:00.520 and that not only reduces the friction in one well, 0:18:00.760 --> 0:18:03.160 it saves on the manpower because you use one crew 0:18:03.480 --> 0:18:06.200 to now complete two wills at the same time. So 0:18:06.240 --> 0:18:09.200 it's all these little just sort of small efficiency gains 0:18:09.240 --> 0:18:12.800 where it's allowed us to get a lot faster at 0:18:12.840 --> 0:18:16.760 producing at less manpower. And what it really boils down 0:18:16.800 --> 0:18:19.200 to is you've got about a third of the rigs 0:18:19.200 --> 0:18:21.360 is which you've had ten years ago, and yet you've 0:18:21.359 --> 0:18:24.840 got record production. So a dramatic decrease in the amount 0:18:24.880 --> 0:18:27.439 of equipment and then the people to run them while 0:18:27.680 --> 0:18:30.320 maintaining enormous amounts of output. And that's a lot of 0:18:30.359 --> 0:18:32.840 the energy is free to surpass all of their sectors 0:18:32.840 --> 0:18:33.520 in the economy. 0:18:34.000 --> 0:18:36.199 So when we're thinking about productivity, of course, one thing 0:18:36.200 --> 0:18:38.040 that you need to be thinking about is, you know, 0:18:38.080 --> 0:18:41.520 governmental legislation that will support this. And I see here 0:18:41.520 --> 0:18:43.840 in the piece you all speak a bit about you know, 0:18:43.880 --> 0:18:48.120 this upcoming election. You say that Kamala Harris has repeatedly 0:18:48.160 --> 0:18:50.520 said that she won't be fracking, which is a walk 0:18:50.560 --> 0:18:52.880 back of comments that she made in twenty nineteen. How 0:18:52.960 --> 0:18:56.720 much does the government and different policies play a role 0:18:56.800 --> 0:18:59.000 in the ability for these companies to excel. 0:19:00.000 --> 0:19:02.400 It's a good question because sometimes it can be misunderstood. 0:19:02.760 --> 0:19:05.160 Chevron actually talked about it a little bit earlier, and 0:19:05.200 --> 0:19:07.520 they're doing earnings this morning, and on some of the 0:19:07.520 --> 0:19:11.880 different interviews, Mike Worth talked about how ultimately the US 0:19:11.920 --> 0:19:17.880 shale is there and it's not really being restricted by 0:19:17.880 --> 0:19:20.040 the US government. You know, people talk about whether you 0:19:20.080 --> 0:19:22.560 can go on federal lands or not. Really where they're 0:19:22.560 --> 0:19:25.160 doing a lot of the drilling is on private, independent 0:19:25.200 --> 0:19:28.119 land that the US government does not own, So really 0:19:28.160 --> 0:19:31.080 that's not very restrictive to these drillers. Where it kind 0:19:31.080 --> 0:19:34.119 of comes down to more is permitting for things like pipelines. 0:19:34.200 --> 0:19:36.920 So you drill, you produce, but you got to send 0:19:36.960 --> 0:19:38.240 it off to market, you got to send it down 0:19:38.240 --> 0:19:42.520 to the refineries, and so getting timely approvals for the 0:19:42.560 --> 0:19:45.399 permits to build new pipelines to send more oil and 0:19:45.520 --> 0:19:48.679 natural gas away from the oil fields is key. So 0:19:48.720 --> 0:19:53.399 that's kind of one sticking point for policy on any 0:19:53.520 --> 0:19:56.119 type of administration. Is where the oil industry is going 0:19:56.160 --> 0:19:56.600 to care. 0:19:56.840 --> 0:19:59.280 David, you're down there in Houston. That's you know, obviously 0:19:59.359 --> 0:20:02.800 that the center the US energy business. What's the feeling 0:20:03.400 --> 0:20:06.760 just a broadly define about the business of energy, because 0:20:07.200 --> 0:20:09.560 you know, as recently as ten years ago, fifteen years ago, 0:20:09.560 --> 0:20:11.399 they were talking about peak oil and all that kind 0:20:11.400 --> 0:20:13.880 of stuff. I don't hear about that as much anymore. 0:20:14.800 --> 0:20:17.480 Yeah, you don't really hear about it. I think partly 0:20:17.480 --> 0:20:19.760 because there was this kind of you know, ESU movement 0:20:19.880 --> 0:20:23.720 and you know, green energy technologies and let's try to 0:20:23.720 --> 0:20:26.080 do both at the same time. And maybe kind of 0:20:26.400 --> 0:20:29.760 you saw investors pivot away from investing in oil and gas, 0:20:29.840 --> 0:20:33.720 and what it kind of led to was a decrease 0:20:33.760 --> 0:20:38.080 in spending in oil and gas, and so you've had 0:20:38.320 --> 0:20:41.879 less push to really grow supplies. So it's kind of 0:20:41.880 --> 0:20:44.680 tightened the picture a little bit, and so there's sort 0:20:44.720 --> 0:20:48.359 of less concern of maybe this thing is going away 0:20:48.440 --> 0:20:50.719 and more about let's make sure we have enough supply 0:20:50.840 --> 0:20:53.720 out there so the prices don't go crazy above one 0:20:53.760 --> 0:20:56.000 hundred dollars a barrel and really sort of raise red 0:20:56.040 --> 0:20:57.919 flags on the industry. So I think they're trying to 0:20:57.960 --> 0:21:00.439 kind of fly below the radar and not too much 0:21:00.480 --> 0:21:04.280 attention on energy prices that are too high, while still 0:21:04.320 --> 0:21:07.479 trying to maximize profit and have high enough oil prices 0:21:07.520 --> 0:21:10.720 that eclipse their sort of break even price and give 0:21:10.720 --> 0:21:12.399 them a decent amount of profit. So I mean that 0:21:12.440 --> 0:21:16.000