1
00:00:02,520 --> 00:00:07,040
Speaker 1: Bloomberg Audio Studios, podcasts, radio news.

2
00:00:07,760 --> 00:00:09,680
Speaker 2: We're beginning SAUNT with a look at the energy sector,

3
00:00:09,760 --> 00:00:13,360
Speaker 2: President Donald Trump pledging to expand production and lower prices,

4
00:00:13,600 --> 00:00:16,400
Speaker 2: with the thread of tariffs hanging overhead for the next

5
00:00:16,480 --> 00:00:18,639
Speaker 2: thirty minutes. Some places said it. Joining us now is

6
00:00:18,680 --> 00:00:21,400
Speaker 2: the chefron CEO, Mike Worth. Mike, good morning, It's good

7
00:00:21,400 --> 00:00:23,640
Speaker 2: to see you. I promised the first question earlier on

8
00:00:23,680 --> 00:00:25,599
Speaker 2: this morning. I mentioned it on air. I wanted to

9
00:00:25,640 --> 00:00:28,680
Speaker 2: know whether you've watched Landman on Paramount. Have you seen

10
00:00:28,720 --> 00:00:29,280
Speaker 2: the program?

11
00:00:29,400 --> 00:00:29,639
Speaker 3: I have?

12
00:00:29,920 --> 00:00:31,760
Speaker 2: Okay, how accurate is it? You have to deal with

13
00:00:31,800 --> 00:00:33,199
Speaker 2: cartowns on a daily basis.

14
00:00:33,960 --> 00:00:35,959
Speaker 3: It is. It is wonderful entertainment.

15
00:00:36,760 --> 00:00:42,360
Speaker 4: Billy Bob Thornton is an amazing actor, and it's drama, right,

16
00:00:42,400 --> 00:00:44,760
Speaker 4: and you need a little bit of a storyline, and

17
00:00:44,800 --> 00:00:46,839
Speaker 4: so you know, there are certain aspects of it that

18
00:00:47,360 --> 00:00:50,280
Speaker 4: are accurate, in others that are probably just a touch exaggerated.

19
00:00:50,400 --> 00:00:52,600
Speaker 2: It sets up this conversation quite well. I think for

20
00:00:53,000 --> 00:00:55,200
Speaker 2: one specific reason, I think there's been a vibe shift

21
00:00:55,240 --> 00:00:58,639
Speaker 2: in this country captured by the election in only November,

22
00:00:59,000 --> 00:01:01,680
Speaker 2: and also based and the content that people are consuming

23
00:01:01,760 --> 00:01:04,400
Speaker 2: right now, including Landmark and in Landman, you see a

24
00:01:04,480 --> 00:01:08,240
Speaker 2: much more pragmatic approach to things like fossil fuels, oil

25
00:01:08,560 --> 00:01:11,440
Speaker 2: and energy and the kind of work that your company does.

26
00:01:11,840 --> 00:01:13,880
Speaker 2: Do you think we are seeing that more pragmatic approach

27
00:01:13,959 --> 00:01:14,960
Speaker 2: the energy story now?

28
00:01:15,280 --> 00:01:17,880
Speaker 4: I think there's no question we're seeing that. I mean, you,

29
00:01:18,080 --> 00:01:21,080
Speaker 4: you know, take a look at this administration that has

30
00:01:21,080 --> 00:01:27,480
Speaker 4: come in and rather than criticizing and almost in some

31
00:01:27,520 --> 00:01:31,760
Speaker 4: ways ostracizing oil and gas, it's an It's an administration

32
00:01:31,840 --> 00:01:35,440
Speaker 4: that has talked about American energy abundance and using that

33
00:01:35,880 --> 00:01:38,840
Speaker 4: to the benefit of the American economy, the competitiveness of

34
00:01:38,959 --> 00:01:43,800
Speaker 4: American business and and but but not just oil and gas.

35
00:01:43,840 --> 00:01:46,480
Speaker 4: It's you know, the grid is a big thing for

36
00:01:46,640 --> 00:01:50,240
Speaker 4: the administration, and power generation. And so I think we

37
00:01:50,240 --> 00:01:52,760
Speaker 4: we're seeing a more balanced conversation. Something I've been calling

38
00:01:52,800 --> 00:01:56,480
Speaker 4: for for years is uh in energy, there are three

39
00:01:56,480 --> 00:02:01,080
Speaker 4: things that manage on affordability because that underpins economic prosperity,

40
00:02:01,840 --> 00:02:06,080
Speaker 4: reliable supplying because that relates to security in national security,

41
00:02:06,320 --> 00:02:09,640
Speaker 4: and then environmental impact. And we have to balance those

42
00:02:09,680 --> 00:02:12,360
Speaker 4: three things as we talk about energy. The conversation has

43
00:02:12,400 --> 00:02:15,399
Speaker 4: become very unbalanced and focused on one of the three

44
00:02:16,240 --> 00:02:17,919
Speaker 4: and not the other two. And I think we're seeing

45
00:02:17,919 --> 00:02:19,799
Speaker 4: a move back towards a more balanced and you use

46
00:02:19,840 --> 00:02:22,200
Speaker 4: the word pragmatic, I think that's a very good word

47
00:02:22,280 --> 00:02:23,959
Speaker 4: for the shift that we are seeing.

48
00:02:24,120 --> 00:02:26,440
Speaker 1: We definitely are hearing the shift in the conversation. We

49
00:02:26,440 --> 00:02:28,320
Speaker 1: heard that at Davos, even though you weren't there, we

50
00:02:28,360 --> 00:02:31,800
Speaker 1: missed you. I am curious about how much that translates

51
00:02:31,840 --> 00:02:35,760
Speaker 1: into actual changes that you're making on the ground, with

52
00:02:35,800 --> 00:02:38,040
Speaker 1: how much you're investing, how much you're planning to expand

53
00:02:38,040 --> 00:02:40,440
Speaker 1: your footprint in the United States and elsewhere.

54
00:02:40,960 --> 00:02:46,120
Speaker 4: Yeah, we grew production last year seven percent globally, almost

55
00:02:46,160 --> 00:02:49,119
Speaker 4: twenty percent here in the US, the largest production we've

56
00:02:49,120 --> 00:02:53,840
Speaker 4: ever had in our history, largest cash distribution to our shareholders.

57
00:02:53,840 --> 00:02:55,600
Speaker 3: So we are growing.

58
00:02:55,880 --> 00:02:57,959
Speaker 4: We're also doing it in a more capital efficient way.

59
00:02:58,000 --> 00:03:00,480
Speaker 4: So we've been focused on getting more bang for dollar

60
00:03:00,520 --> 00:03:01,000
Speaker 4: of capital.

61
00:03:01,080 --> 00:03:02,880
Speaker 3: You guys are talking a lot about capital.

62
00:03:02,600 --> 00:03:05,960
Speaker 4: This morning, and in a capital intensive industry, we have

63
00:03:06,040 --> 00:03:09,040
Speaker 4: to always look for ways to be as capital efficient

64
00:03:09,080 --> 00:03:10,960
Speaker 4: as we can be, in as disciplined as we can be,

65
00:03:11,000 --> 00:03:13,359
Speaker 4: and so we're able to bring new energy supplies to

66
00:03:13,400 --> 00:03:16,359
Speaker 4: the market at a lower capital investment rate than ever before.

67
00:03:16,560 --> 00:03:18,560
Speaker 4: We'll go again this year in the United States another

68
00:03:18,600 --> 00:03:21,760
Speaker 4: ten percent or so in the Permian. So demand for

69
00:03:21,880 --> 00:03:23,679
Speaker 4: energy is at an all time high and it's only

70
00:03:23,720 --> 00:03:24,160
Speaker 4: going up.

71
00:03:24,520 --> 00:03:27,040
Speaker 1: Last year, you had a record production, even under an

72
00:03:27,040 --> 00:03:30,080
Speaker 1: administration that had a very different tone toward the oil

73
00:03:30,080 --> 00:03:33,920
Speaker 1: and gas administration, the oil and grass industry. I just

74
00:03:34,000 --> 00:03:38,520
Speaker 1: wonder how the vibe shift will change what your outlook

75
00:03:38,680 --> 00:03:41,760
Speaker 1: is at a time when the rhetoric has shifted to

76
00:03:41,840 --> 00:03:46,040
Speaker 1: the positive. But some of the proposals like tariffs might

77
00:03:46,080 --> 00:03:47,920
Speaker 1: be headwinds in certain places.

78
00:03:48,840 --> 00:03:52,320
Speaker 4: Yeah, so I think your point's a good one, Lisa.

79
00:03:52,560 --> 00:03:55,120
Speaker 4: The rhetoric kind of sets the mood music. But you

80
00:03:55,120 --> 00:03:57,960
Speaker 4: actually have to see policy right, and some of that's

81
00:03:58,000 --> 00:04:00,560
Speaker 4: done through executive order these days. A lot of it

82
00:04:00,720 --> 00:04:04,960
Speaker 4: would be best done through legislation. And we would like

83
00:04:05,040 --> 00:04:09,800
Speaker 4: to work with both sides of the aisle to implement durable, balanced,

84
00:04:09,800 --> 00:04:12,960
Speaker 4: and pragmatic energy policy, things like permitting reform, which you've

85
00:04:12,960 --> 00:04:15,640
Speaker 4: gotten a lot of conversation, but we really haven't seen

86
00:04:16,000 --> 00:04:18,400
Speaker 4: action yet on that. And it's difficult to build anything

87
00:04:18,400 --> 00:04:21,560
Speaker 4: in this country, not just pipelines and infrastructure for our industry,

88
00:04:21,920 --> 00:04:26,400
Speaker 4: but new power generation and grid modernization and other types

89
00:04:26,440 --> 00:04:31,039
Speaker 4: of infrastructure. So we hope and are certainly willing to

90
00:04:31,080 --> 00:04:34,560
Speaker 4: work with parties from across the spectrum to try to

91
00:04:34,560 --> 00:04:38,160
Speaker 4: turn some of this vibe shift or more balanced conversation

92
00:04:38,560 --> 00:04:40,480
Speaker 4: into what we think is good, durable policy.

93
00:04:40,760 --> 00:04:42,640
Speaker 2: Can you talk to us more about the permitting These

94
00:04:42,640 --> 00:04:44,440
Speaker 2: are things we hear about all the time. You're running

95
00:04:44,440 --> 00:04:46,520
Speaker 2: a business. Could you help us understand how much that

96
00:04:46,560 --> 00:04:48,320
Speaker 2: has held back your business?

97
00:04:48,480 --> 00:04:50,960
Speaker 3: Oh, it slows things down. It's very difficult.

98
00:04:51,000 --> 00:04:52,840
Speaker 4: I mean, you know, the Keystone Pipeline is a good

99
00:04:52,960 --> 00:04:57,599
Speaker 4: example that was well documented where a multi billion dollar

100
00:04:57,640 --> 00:04:59,480
Speaker 4: investment that would have been good for Canada, would have

101
00:04:59,560 --> 00:05:03,040
Speaker 4: been good for the United States, ultimately didn't happen because

102
00:05:03,080 --> 00:05:06,840
Speaker 4: the permiting process can be hijacked by interests that are

103
00:05:06,880 --> 00:05:10,960
Speaker 4: opposed to seeing investment in our economy. And so, look,

104
00:05:11,160 --> 00:05:14,279
Speaker 4: everybody wants to see good protection of the environment and

105
00:05:14,400 --> 00:05:17,480
Speaker 4: engagement of communities are impacted by projects. But we need

106
00:05:17,560 --> 00:05:20,479
Speaker 4: lead agencies that can take responsibility for these processes. We

107
00:05:20,520 --> 00:05:23,320
Speaker 4: need timelines that are reasonable timelines to do the work,

108
00:05:23,520 --> 00:05:25,800
Speaker 4: and then we need reasonable boundaries around the way these

109
00:05:25,800 --> 00:05:27,920
Speaker 4: things can be litigated in the quirks and that needs

110
00:05:27,960 --> 00:05:30,080
Speaker 4: to you know, that needs to be done to enable

111
00:05:30,160 --> 00:05:31,240
Speaker 4: more investment in this country.

112
00:05:31,320 --> 00:05:35,039
Speaker 2: This president clearly wants to change that. Users phrases like drill, baby, drill.

113
00:05:35,279 --> 00:05:38,240
Speaker 2: We're certainly drilling, not for thirteen million barwers of all

114
00:05:38,279 --> 00:05:41,440
Speaker 2: the day in this country, which is phenomenal. I often

115
00:05:41,480 --> 00:05:43,479
Speaker 2: sit here Lis it does too, and we'll say things

116
00:05:43,520 --> 00:05:45,000
Speaker 2: like and we'll hear it from Amara as well once

117
00:05:45,000 --> 00:05:47,440
Speaker 2: she's here. How realistic is it to get that number

118
00:05:47,480 --> 00:05:50,239
Speaker 2: much higher than the thirteen million barwers we're out right now,

119
00:05:50,440 --> 00:05:52,840
Speaker 2: you'd know it better than we do. How realistic is it?

120
00:05:53,240 --> 00:05:53,400
Speaker 3: Well?

121
00:05:53,400 --> 00:05:54,880
Speaker 4: I think production in the US is going to grow

122
00:05:54,920 --> 00:05:58,520
Speaker 4: again this year. We certainly see in our business. I said,

123
00:05:58,520 --> 00:06:00,800
Speaker 4: our permaning production will be up ten percent. In the

124
00:06:00,960 --> 00:06:02,640
Speaker 4: deep water Gulf of America, We're going to go from

125
00:06:02,640 --> 00:06:04,840
Speaker 4: two hundred thousand barrels a day to three hundred thousand

126
00:06:05,120 --> 00:06:07,320
Speaker 4: barrels a day by the end of twenty twenty six.

127
00:06:07,640 --> 00:06:10,200
Speaker 4: So there is production growth coming, but it's really driven

128
00:06:10,279 --> 00:06:14,640
Speaker 4: by economics, a long term view on supply demand, technology,

129
00:06:14,720 --> 00:06:15,440
Speaker 4: and policy.

130
00:06:15,680 --> 00:06:18,200
Speaker 2: Just to jump in that last point, a long term

131
00:06:18,279 --> 00:06:21,120
Speaker 2: view on policy. How difficult is it to make these

132
00:06:21,160 --> 00:06:24,400
Speaker 2: investment decisions we talk about this five shift now could

133
00:06:24,440 --> 00:06:24,920
Speaker 2: change again.

134
00:06:25,960 --> 00:06:28,920
Speaker 4: It's very difficult, John, and so one of the things

135
00:06:28,960 --> 00:06:31,640
Speaker 4: our company was criticized for a few years ago is

136
00:06:31,680 --> 00:06:34,080
Speaker 4: we weren't jumping into some of the renewables as fast

137
00:06:34,080 --> 00:06:37,160
Speaker 4: as others because the policy was unclear, and so we

138
00:06:37,160 --> 00:06:40,320
Speaker 4: were doing basic research. We were investing in pilot plants.

139
00:06:40,640 --> 00:06:44,400
Speaker 4: But multi billion dollar investments that are very dependent upon

140
00:06:44,480 --> 00:06:47,839
Speaker 4: policy that could change quickly are something you have to

141
00:06:47,839 --> 00:06:50,479
Speaker 4: think about when you're looking to deliver strong returns to

142
00:06:50,520 --> 00:06:53,839
Speaker 4: your shareholders. And so we would like to see durable,

143
00:06:54,000 --> 00:06:56,880
Speaker 4: long term balance policy because that does make the investment

144
00:06:56,920 --> 00:06:59,640
Speaker 4: decision a little bit easier for companies to make.

145
00:07:00,080 --> 00:07:02,440
Speaker 1: Test case for this is liquefied natural gas. US is

146
00:07:02,480 --> 00:07:04,480
Speaker 1: a massive producer of it. You're one of the biggest

147
00:07:04,480 --> 00:07:05,400
Speaker 1: producers of it.

148
00:07:06,279 --> 00:07:07,480
Speaker 3: There was a ban on.

149
00:07:07,520 --> 00:07:09,400
Speaker 1: Exporting to Europe at a time when Europe is really

150
00:07:09,440 --> 00:07:12,920
Speaker 1: dependent on the US. That has been lifted. Now there's

151
00:07:12,960 --> 00:07:16,320
Speaker 1: the potential of tariffs being placed on some of those exports.

152
00:07:17,120 --> 00:07:21,120
Speaker 1: How much can you start to lean into exports versus

153
00:07:21,160 --> 00:07:22,960
Speaker 1: not due to some of this confusion.

154
00:07:23,600 --> 00:07:27,600
Speaker 4: Yeah, you know, the tariff environment is obviously evolving here

155
00:07:27,920 --> 00:07:32,040
Speaker 4: on a daily basis. Energy is a globally traded commodity,

156
00:07:32,680 --> 00:07:37,520
Speaker 4: and LNG oil petroleum products for the most part. Now

157
00:07:37,520 --> 00:07:39,600
Speaker 4: Canadian oil is a little bit different because it's really

158
00:07:39,600 --> 00:07:43,360
Speaker 4: dependent upon pipelines, but those products can go to different markets.

159
00:07:43,400 --> 00:07:47,480
Speaker 4: We've seen sanctions reorient trade flows. Tariffs are on other

160
00:07:48,720 --> 00:07:53,360
Speaker 4: instruments that can change the economics for producers and for consumers.

161
00:07:53,560 --> 00:07:56,280
Speaker 4: And what you'll typically see, whether it's LNG or oil

162
00:07:56,880 --> 00:07:59,680
Speaker 4: is flows will move to different markets as producers seek

163
00:07:59,800 --> 00:08:02,920
Speaker 4: the highest price for their production and as consumers seek

164
00:08:02,920 --> 00:08:06,040
Speaker 4: the lowest cost for what they're looking to buy. And

165
00:08:06,480 --> 00:08:09,400
Speaker 4: as long as supply remains in the market, you have

166
00:08:09,480 --> 00:08:12,040
Speaker 4: markets well supplied, you generally start to see costs go

167
00:08:12,160 --> 00:08:14,840
Speaker 4: up a little bit because there's increased transportation and some

168
00:08:14,920 --> 00:08:18,960
Speaker 4: kind of friction in the system, But export decisions aren't

169
00:08:18,960 --> 00:08:21,120
Speaker 4: heavily affected by those prospects.

170
00:08:21,200 --> 00:08:23,880
Speaker 2: I would say, speaking of sanctions, just briefly, you have

171
00:08:23,920 --> 00:08:26,040
Speaker 2: a waiver to operate in Venezuela. Is that the case

172
00:08:27,400 --> 00:08:30,960
Speaker 2: we do, Sender Rubio. Now, Secretary Rubio said maybe the

173
00:08:31,040 --> 00:08:34,080
Speaker 2: US should reconsider that waiver. You in contact with them

174
00:08:34,200 --> 00:08:35,120
Speaker 2: on that issue.

175
00:08:35,440 --> 00:08:39,280
Speaker 4: We're in contact with the current administration. We've been in

176
00:08:39,360 --> 00:08:42,920
Speaker 4: contact with the first Trump administration and the Biden administration

177
00:08:42,960 --> 00:08:45,080
Speaker 4: because the sanctions on Venezuela have been in place for

178
00:08:45,200 --> 00:08:49,959
Speaker 4: years and we work closely with the government, understand their objectives,

179
00:08:49,960 --> 00:08:53,040
Speaker 4: to understand the limitations that are being placed through these

180
00:08:53,080 --> 00:08:56,240
Speaker 4: licenses issued by OPHAK, and to stay in full compliance

181
00:08:56,280 --> 00:08:56,720
Speaker 4: with the laws.

182
00:08:56,760 --> 00:08:58,680
Speaker 2: Are you anticipate in any changes in the hill or

183
00:08:58,720 --> 00:09:00,760
Speaker 2: too early to say either.

184
00:09:00,840 --> 00:09:03,760
Speaker 4: Recently was a trip down to Venezuela by a special

185
00:09:03,840 --> 00:09:09,080
Speaker 4: envoy who brought back some Americans from Venezuela and arranged

186
00:09:09,920 --> 00:09:12,480
Speaker 4: terms for I think Venezuelan and immigrants to go back

187
00:09:12,520 --> 00:09:17,640
Speaker 4: to Venezuela that are that are here illegally, and that

188
00:09:17,800 --> 00:09:22,040
Speaker 4: seems to be you know, the latest the general license

189
00:09:22,040 --> 00:09:25,360
Speaker 4: that we operate was unchanged. It has been changed over

190
00:09:25,400 --> 00:09:28,080
Speaker 4: the years in different ways, and that still could happen.

191
00:09:28,440 --> 00:09:30,760
Speaker 4: We try to inform the government of the potential ramifications

192
00:09:30,800 --> 00:09:33,800
Speaker 4: of a change like that, so they're well informed before

193
00:09:33,800 --> 00:09:37,240
Speaker 4: they make changes of what would the ramifications be. Well,

194
00:09:37,480 --> 00:09:41,280
Speaker 4: under the initial Trump sanctions, Venezuelan oil was not allowed

195
00:09:41,320 --> 00:09:44,520
Speaker 4: to come to the US. The Biden administration changed that.

196
00:09:44,960 --> 00:09:48,040
Speaker 4: Gulf Coast refiners actually run a lot of the heavy

197
00:09:48,120 --> 00:09:51,120
Speaker 4: grades that come from Venezuela. If you see sanctions on

198
00:09:51,160 --> 00:09:53,840
Speaker 4: Canadian or tariffs on Canadian or Mexicano oil, that may

199
00:09:53,960 --> 00:09:56,120
Speaker 4: send some of that oil to other countries, and so

200
00:09:56,160 --> 00:09:57,240
Speaker 4: the Venezuelan.

201
00:09:56,800 --> 00:09:58,079
Speaker 3: Oil could be even more important.

202
00:09:58,120 --> 00:10:00,440
Speaker 4: So it's things like that, it's hot, how would this

203
00:10:00,520 --> 00:10:02,480
Speaker 4: work through the system that we really try to help

204
00:10:02,960 --> 00:10:04,080
Speaker 4: the policy makers.

205
00:10:03,840 --> 00:10:07,720
Speaker 2: Understand data center growth. There was a conversation only two

206
00:10:07,760 --> 00:10:10,640
Speaker 2: mondays ago about whether we've been overestimating the extent of

207
00:10:10,720 --> 00:10:14,040
Speaker 2: data center growth we'd see and alongside that the amount

208
00:10:14,040 --> 00:10:18,319
Speaker 2: of energy we might need. Did the Deep Seek story

209
00:10:18,360 --> 00:10:21,000
Speaker 2: if the last week or so change your routdlook at So.

210
00:10:21,800 --> 00:10:22,560
Speaker 3: It really didn't.

211
00:10:23,040 --> 00:10:26,520
Speaker 4: If you look at the incredible capital spending that you've

212
00:10:26,559 --> 00:10:32,400
Speaker 4: been talking about and the huge demand for increased compute

213
00:10:32,920 --> 00:10:36,400
Speaker 4: from all the big hyperscalers, I think they all assume

214
00:10:36,440 --> 00:10:38,319
Speaker 4: you're going to find more efficiency in the development of

215
00:10:38,360 --> 00:10:41,120
Speaker 4: these models, the training and inference techniques that are used,

216
00:10:41,559 --> 00:10:43,520
Speaker 4: and at the same time, we're going to need a

217
00:10:43,559 --> 00:10:47,880
Speaker 4: lot more computer capacity. So the two big constraints are

218
00:10:48,320 --> 00:10:53,440
Speaker 4: GPUs and interestingly electricity. We haven't seen real growth and

219
00:10:53,480 --> 00:10:55,720
Speaker 4: demand for electricity for the last couple of decades in

220
00:10:55,760 --> 00:10:58,679
Speaker 4: this country. We have taken a lot of reliable baseload

221
00:10:58,880 --> 00:11:01,600
Speaker 4: power off the grid. Coal plants have been shut down.

222
00:11:01,920 --> 00:11:04,200
Speaker 4: We've had a lot of wind and solar, which are

223
00:11:04,200 --> 00:11:07,360
Speaker 4: great and very low emissions, but they're also intermittent, and

224
00:11:07,440 --> 00:11:10,920
Speaker 4: so the grid hasn't been modernized. The power generating capacity

225
00:11:11,000 --> 00:11:14,439
Speaker 4: hasn't changed much, and we're poised to see demand from

226
00:11:14,520 --> 00:11:17,719
Speaker 4: data centers, from the electrification of the vehicle fleet and

227
00:11:17,800 --> 00:11:21,000
Speaker 4: other parts of our economy. And so there's a range

228
00:11:21,040 --> 00:11:23,960
Speaker 4: of estimates, but I think nobody would tell you the

229
00:11:24,040 --> 00:11:26,240
Speaker 4: demand for power isn't going to go up and probably

230
00:11:26,280 --> 00:11:28,120
Speaker 4: pretty significantly over the next few years.

231
00:11:28,240 --> 00:11:30,080
Speaker 1: That feels like a year ago by the way deep

232
00:11:30,160 --> 00:11:32,800
Speaker 1: seek what I mean, honestly, it's just sort of amazing

233
00:11:32,840 --> 00:11:36,719
Speaker 1: how quickly this goes. What is how do you sort

234
00:11:36,760 --> 00:11:39,720
Speaker 1: of gut check people's understanding of the energy use that

235
00:11:39,840 --> 00:11:42,320
Speaker 1: is required for this, and how are you planning to

236
00:11:42,360 --> 00:11:45,880
Speaker 1: build out your footprint, what type of energy you want

237
00:11:45,960 --> 00:11:48,560
Speaker 1: to invest in, and what your budget is like for that.

238
00:11:49,080 --> 00:11:51,000
Speaker 4: Yeah, So we talked to the people that are doing

239
00:11:51,000 --> 00:11:53,160
Speaker 4: the work right, and we're a customer of all the

240
00:11:53,200 --> 00:11:56,000
Speaker 4: big tech companies, right, they help us in many different

241
00:11:56,000 --> 00:11:58,600
Speaker 4: parts of our business. We've got relations with them, so

242
00:11:58,640 --> 00:12:02,240
Speaker 4: we're looking to use these tools to improve our business performance.

243
00:12:02,679 --> 00:12:04,600
Speaker 4: And over the last couple of years the conversation has

244
00:12:04,640 --> 00:12:06,920
Speaker 4: flipped and they've said, how can you help us be

245
00:12:07,000 --> 00:12:09,800
Speaker 4: sure we've got enough power at scale in order to

246
00:12:09,800 --> 00:12:14,040
Speaker 4: deliver the products that you're looking for. And one of

247
00:12:14,040 --> 00:12:16,439
Speaker 4: the things that's very clear is the hyperscalers want to

248
00:12:16,440 --> 00:12:18,760
Speaker 4: move fast. There's a bit of a land grab and

249
00:12:18,800 --> 00:12:20,959
Speaker 4: you see it in the way the capital budgets are

250
00:12:21,000 --> 00:12:24,280
Speaker 4: going up, and so things that are at a scale

251
00:12:24,280 --> 00:12:26,480
Speaker 4: of one hundred megawats two hundred mega wants are different

252
00:12:26,520 --> 00:12:30,640
Speaker 4: than gigawants, which is really where their ambition is. What

253
00:12:30,720 --> 00:12:34,600
Speaker 4: we've done recently is announced a venture with GeV Veranova

254
00:12:34,840 --> 00:12:38,600
Speaker 4: and a company called Engine Number one to collaborate and

255
00:12:38,679 --> 00:12:42,200
Speaker 4: bring four giga wants of power to market beginning in

256
00:12:42,280 --> 00:12:45,560
Speaker 4: late twenty twenty seven, so relatively soon. Seven of g

257
00:12:45,679 --> 00:12:49,640
Speaker 4: e Vernova's biggest turbines that we've got delivery slots on,

258
00:12:50,080 --> 00:12:52,600
Speaker 4: and the intent is to cite those in places that

259
00:12:52,800 --> 00:12:56,960
Speaker 4: can meet the need of these hyperscalers reliable gas supply

260
00:12:57,080 --> 00:12:59,840
Speaker 4: so that they can have long term confidence in the

261
00:13:00,080 --> 00:13:02,720
Speaker 4: energy off the grid, so they're not going through the

262
00:13:02,760 --> 00:13:06,280
Speaker 4: grid and dealing with interconnect cues and the reliability issues,

263
00:13:06,640 --> 00:13:09,360
Speaker 4: and ultimately also a desire to try to integrate lower

264
00:13:09,400 --> 00:13:13,359
Speaker 4: carbon energy into this, whether it's through carbon capture, hydrogen, geothermal,

265
00:13:13,400 --> 00:13:14,359
Speaker 4: and other technologies.

266
00:13:14,679 --> 00:13:15,839
Speaker 3: Something we know a lot about.

267
00:13:15,920 --> 00:13:17,960
Speaker 1: You said turbines, and those are natural gas turbines.

268
00:13:18,040 --> 00:13:18,559
Speaker 3: That's right.

269
00:13:18,720 --> 00:13:20,880
Speaker 1: How much do you think that natural gas could potentially

270
00:13:21,000 --> 00:13:25,840
Speaker 1: overtake diesel and some of the gasoline that people use

271
00:13:26,040 --> 00:13:29,680
Speaker 1: to fuel a lot of what currently gets generated.

272
00:13:30,000 --> 00:13:33,400
Speaker 4: In electricity, You're going to see. We've seen historically good

273
00:13:33,480 --> 00:13:35,120
Speaker 4: demand for gas, and you're going to see more of it.

274
00:13:35,160 --> 00:13:38,199
Speaker 4: You're going to see demand gas for exports and lergy.

275
00:13:38,240 --> 00:13:39,520
Speaker 4: As we were discussing earlier.

276
00:13:40,000 --> 00:13:43,120
Speaker 3: In transportation, its use will be more limited.

277
00:13:43,960 --> 00:13:47,840
Speaker 4: It has certain advantages, but certain disadvantages when it comes

278
00:13:47,920 --> 00:13:50,640
Speaker 4: to vehicle transportation. And so I think you're going to

279
00:13:50,640 --> 00:13:55,360
Speaker 4: see conventional gasoline and diesel, along with electric vehicles, really

280
00:13:55,400 --> 00:13:58,000
Speaker 4: power the light duty vehicle fleet and the heavy duty

281
00:13:58,080 --> 00:14:00,679
Speaker 4: vehicle fleet for the foreseeable future. I think you're going

282
00:14:00,679 --> 00:14:03,760
Speaker 4: to see gas more in power generation in other parts

283
00:14:03,760 --> 00:14:04,480
Speaker 4: of the economy.

284
00:14:04,760 --> 00:14:07,000
Speaker 1: Before we let you go I know that the Hest

285
00:14:07,000 --> 00:14:09,440
Speaker 1: thing has been messy. It's going to potentially close later

286
00:14:09,480 --> 00:14:11,040
Speaker 1: this year. I know that there's a lot that it

287
00:14:11,080 --> 00:14:14,240
Speaker 1: needs to get worked through. Once that's gone through, how

288
00:14:14,280 --> 00:14:16,839
Speaker 1: in the market are you to potentially consolidate? So a

289
00:14:16,840 --> 00:14:18,680
Speaker 1: lot of people are saying this is a market in

290
00:14:18,679 --> 00:14:20,800
Speaker 1: the United States, it still has a lot of consolidating

291
00:14:20,840 --> 00:14:21,520
Speaker 1: to be done.

292
00:14:21,760 --> 00:14:24,960
Speaker 4: Well, we're first and foremost focused on the Hest transaction

293
00:14:25,040 --> 00:14:29,000
Speaker 4: and that will conclude later this year. We're always looking.

294
00:14:29,000 --> 00:14:31,040
Speaker 4: We're a resource business. You're always looking to acquire a

295
00:14:31,080 --> 00:14:34,640
Speaker 4: good quality resource that makes your portfolio stronger. We've got

296
00:14:34,640 --> 00:14:36,960
Speaker 4: a great position today, so we don't need to do anything.

297
00:14:37,040 --> 00:14:39,360
Speaker 4: We would only do something if it really fit for

298
00:14:39,400 --> 00:14:41,280
Speaker 4: our company, if the price we're right in it would

299
00:14:41,280 --> 00:14:42,520
Speaker 4: create value for shareholders.

300
00:14:42,680 --> 00:14:45,560
Speaker 1: What type of industry though, you've got natural gas, you've

301
00:14:45,560 --> 00:14:49,520
Speaker 1: got oil, you have other types of forms. What would

302
00:14:49,560 --> 00:14:51,240
Speaker 1: be the area you want to expand in.

303
00:14:51,640 --> 00:14:53,400
Speaker 4: Well, there's a couple of barriers that are always of

304
00:14:53,440 --> 00:14:55,800
Speaker 4: interest to us. One is oil and gas resources because

305
00:14:55,800 --> 00:14:57,960
Speaker 4: every day, as you produce it, you have less in

306
00:14:58,000 --> 00:14:59,320
Speaker 4: your portfolio.

307
00:14:58,800 --> 00:15:00,920
Speaker 3: And so you need to replace that.

308
00:15:00,960 --> 00:15:04,160
Speaker 4: We do it through exploration by finding new fields we

309
00:15:04,200 --> 00:15:06,280
Speaker 4: do it through technology to improve recoveries, and we do

310
00:15:06,320 --> 00:15:09,920
Speaker 4: it through acquisitions. The other sector that's got really robust

311
00:15:10,040 --> 00:15:13,200
Speaker 4: demand growth is petrochemicals, and as we have a larger

312
00:15:13,240 --> 00:15:16,600
Speaker 4: middle class in this world, as we move towards more

313
00:15:16,800 --> 00:15:22,760
Speaker 4: fuel efficient modes of transportation and lighter weight airplanes and vehicles,

314
00:15:23,320 --> 00:15:26,920
Speaker 4: much of that is in the materialty going to that

315
00:15:27,040 --> 00:15:30,600
Speaker 4: or derived from thermoplastic petrochemical products to light they have

316
00:15:30,720 --> 00:15:35,120
Speaker 4: light weight, they have good durability and other rigidity and

317
00:15:35,200 --> 00:15:38,680
Speaker 4: mechanical properties, so demand for petrochemicals will be strong that

318
00:15:38,680 --> 00:15:40,600
Speaker 4: it's another sector that we'd be interested in.

319
00:15:40,920 --> 00:15:44,040
Speaker 2: This was perfect. Appreciate your time, mine worth everybody from

320
00:15:44,120 --> 00:15:44,520
Speaker 2: Chevron