WEBVTT - JP Morgan Staffing, Bridgewater Cuts 0:00:02.759 --> 0:00:10.560 Bloomberg Audio Studios, podcasts, radio news. You're listening to the 0:00:10.560 --> 0:00:14.560 Bloomberg Intelligence podcast. Catch us live weekdays at ten am 0:00:14.600 --> 0:00:17.840 Eastern on Apple, Coarclay, and Android Auto with the Bloomberg 0:00:17.880 --> 0:00:21.040 Business app. Listen on demand wherever you get your podcasts, 0:00:21.320 --> 0:00:23.480 or watch us live on YouTube. 0:00:25.000 --> 0:00:29.080 JP Morgan planning step back to office five days. 0:00:29.160 --> 0:00:31.080 A week in the brown. 0:00:30.880 --> 0:00:33.479 New office building, Yes on Parka. 0:00:33.400 --> 0:00:36.240 Exactly, waiting for this headline for four years. 0:00:36.040 --> 0:00:39.960 Exactly right, so JP Morgan? And how quickly will the 0:00:40.000 --> 0:00:40.720 others follow? 0:00:40.960 --> 0:00:41.680 Very quickly? 0:00:41.960 --> 0:00:43.599 That's what I'm kind of thinking here. 0:00:43.560 --> 0:00:45.320 Five days a week. But you have to have a question. 0:00:45.400 --> 0:00:48.199 You have to wonder will there be some flexibility, Like 0:00:48.240 --> 0:00:49.720 if you're like, hey, I need to work at home 0:00:49.760 --> 0:00:50.720 a couple of days, Like. 0:00:51.360 --> 0:00:52.919 Is that more genuinely accepted? 0:00:53.120 --> 0:00:55.600 I think what it's going to be is you're going 0:00:55.680 --> 0:00:58.240 to be more willing to ask for it, and I 0:00:58.240 --> 0:01:00.000 think the manager will be more willing to give it. 0:01:00.360 --> 0:01:03.319 But it's like I need a day here, maybe two 0:01:03.400 --> 0:01:05.400 or three months later I need another day there, Whereas 0:01:05.400 --> 0:01:08.120 before maybe I wouldn't have asked for that flexibility, and 0:01:08.120 --> 0:01:10.640 as a manager, I may not have given that flexibility. Now, 0:01:10.680 --> 0:01:12.200 I think that flexibility is kind of there. 0:01:12.360 --> 0:01:14.640 But now you get to work in the death store, though, 0:01:15.240 --> 0:01:16.920 which is what everybody seems. 0:01:16.720 --> 0:01:17.240 It's calling it. 0:01:17.480 --> 0:01:20.440 Oh that's funny, it looks it looks very cool. Let's 0:01:20.440 --> 0:01:22.240 say on All Street for a second. So the other 0:01:22.319 --> 0:01:23.959 news of the morning, one of the top read stories 0:01:23.959 --> 0:01:27.440 on the Bloomberg terminal is Bridgewater, that company cutting seven 0:01:27.480 --> 0:01:31.240 percent of a staff and efforts to remain nimble. Michael Moore, 0:01:31.280 --> 0:01:33.640 managing editor for Finance in The America's joins us. But 0:01:33.720 --> 0:01:36.360 hang on a second, J. P. Morgan five days a week, 0:01:36.400 --> 0:01:38.520 you're surprised, Uh. 0:01:38.400 --> 0:01:41.040 No, not really. I mean the majority of their staff 0:01:41.080 --> 0:01:45.080 was already doing that, but this is the this would 0:01:45.080 --> 0:01:49.120 be the rest of the staff. So we've seen some 0:01:49.240 --> 0:01:53.240 firms move in that direction. Others, you know, have used 0:01:53.240 --> 0:01:55.280 the flexibility as a recruiting tool. 0:01:55.480 --> 0:01:55.760 City. 0:01:56.280 --> 0:01:59.680 Yeah, City has stuck with three days a week for 0:01:59.840 --> 0:02:01.920 a good portion of its staff. So I think we 0:02:02.000 --> 0:02:05.600 will see a difference among the firms. Some of the 0:02:05.600 --> 0:02:08.360 European firms have used it as a recruiting tool. So, 0:02:09.320 --> 0:02:11.720 but you know, Jamie Diamond has been very vocal about 0:02:11.720 --> 0:02:14.240 his views that you know, people work better in the 0:02:14.240 --> 0:02:19.040 office together, it helps develop talent. So you know, I 0:02:19.040 --> 0:02:21.680 think it will be kind of, you know, leader by leader, 0:02:21.800 --> 0:02:23.960 kind of setting the agenda. 0:02:24.560 --> 0:02:27.200 I don't know. I mean, the fact is it does 0:02:27.280 --> 0:02:30.079 work from home, So that does work. Let's get people back, 0:02:30.080 --> 0:02:33.400 so we'll see how goes Bridge Rotter Associates huge hedge 0:02:33.400 --> 0:02:37.000 fund cutting staff. Is this just the normal culling of 0:02:37.200 --> 0:02:39.120 people or something different going on here? 0:02:39.600 --> 0:02:42.639 Yeah, it's an unusual one for just for the reason 0:02:42.680 --> 0:02:45.320 that they are coming off their best year in many 0:02:45.400 --> 0:02:50.320 years for the Flagship Fund. You know, I think the 0:02:50.360 --> 0:02:53.959 new CEO is definitely trying to shake things up a 0:02:54.000 --> 0:02:57.120 little bit. He has, you know, replaced some of the 0:02:57.120 --> 0:02:59.720 top management. They've brought some people from the outside, which 0:02:59.720 --> 0:03:05.120 they had historically done under Ray Dalio. So I think this, 0:03:05.600 --> 0:03:08.240 you know that the stated goal here is there are 0:03:08.320 --> 0:03:11.320 some areas where they want to hire. They don't want 0:03:11.360 --> 0:03:14.000 headcount to get too crazy. This kind of brings them 0:03:14.000 --> 0:03:16.799 back to where they were, you know, a little over 0:03:16.800 --> 0:03:19.600 a year ago in terms of headcount and allows them 0:03:19.600 --> 0:03:21.359 to kind of be a little more selective. 0:03:21.440 --> 0:03:23.840 Did they over hire or something, or do they just 0:03:23.960 --> 0:03:26.520 want to like just move focus or something like that. 0:03:27.000 --> 0:03:27.240 Yeah. 0:03:27.280 --> 0:03:29.360 I think you know, you have seen them, you know, 0:03:29.400 --> 0:03:32.240 announced some you know, efforts on the AI front. They 0:03:32.280 --> 0:03:34.520 may want to do some more hiring there, but we 0:03:34.639 --> 0:03:38.720 have seen some of the hedge funds more broadly do 0:03:38.880 --> 0:03:41.600 some over hiring. You know, there has been a talent war, 0:03:42.200 --> 0:03:44.280 so this could be a bit of a correction there. 0:03:45.200 --> 0:03:47.800 It's a unique place to work, isn't It's what's yeah, 0:03:48.120 --> 0:03:50.880 I've heard that. What makes it unique at Bridgewater. 0:03:51.120 --> 0:03:54.720 Well, they have a you know, they have this you know, 0:03:54.760 --> 0:03:59.120 they've long had this culture of radical transparency, of being 0:03:59.240 --> 0:04:02.720 very blunt with each other. A lot of the senior 0:04:02.760 --> 0:04:05.440 people have been there since they were in their early twenties, 0:04:05.960 --> 0:04:09.000 have grown up there, haven't worked elsewhere, So there is 0:04:09.280 --> 0:04:12.960 a bit of an insular culture there. I think near Bardea, 0:04:13.400 --> 0:04:16.599 you know, has came in a little bit later in 0:04:16.640 --> 0:04:19.680 his career, so it brings a different perspective than Dalio, 0:04:19.720 --> 0:04:23.279 who built this place, you know, around his principles. So 0:04:23.360 --> 0:04:25.760 I think you could see a bit of a relaxing 0:04:25.880 --> 0:04:28.840 of that culture while still you know, being kind of 0:04:28.880 --> 0:04:30.479 a unique beast out in Connecticut. 0:04:30.680 --> 0:04:32.520 Going back to JP Morgan for a second, not about 0:04:32.520 --> 0:04:34.800 the five days, but JP Morgan. The latest bank to 0:04:34.880 --> 0:04:38.560 quit the Climate Finance Group is Fall City pauls Baba. 0:04:39.839 --> 0:04:42.000 How are we understanding it? Is this like a complete 0:04:42.040 --> 0:04:45.240 backlash against climate and DEI for example, or is this 0:04:45.360 --> 0:04:47.000 just sort of like we're going to move to the 0:04:47.000 --> 0:04:48.440 middle or we just rebranding it. 0:04:49.560 --> 0:04:51.279 I think it's a bit of rebranding. 0:04:51.400 --> 0:04:54.520 I think they were getting a lot of heat from 0:04:54.560 --> 0:04:57.960 some politicians over some of these pledges. 0:04:58.760 --> 0:04:59.800 They wanted something with. 0:05:00.200 --> 0:05:01.800 Pledges like we're not going to lend money to oil 0:05:01.839 --> 0:05:02.520 and gas kind of thing. 0:05:03.160 --> 0:05:04.240 That's how they were perceived. 0:05:04.279 --> 0:05:06.680 They weren't always written that way, but that's how they 0:05:06.720 --> 0:05:10.279 were perceived that. You know, they got the CEO's when 0:05:10.279 --> 0:05:11.919 they were in front of Congress a. 0:05:11.920 --> 0:05:12.839 Little over a year ago. 0:05:12.960 --> 0:05:17.280 Jd Vance made a big point on this. So I 0:05:17.320 --> 0:05:21.360 think they thought we can we can do this in 0:05:21.440 --> 0:05:25.080 ways of lending to renewable energy without taking such a 0:05:25.120 --> 0:05:29.880 public stance that will get us a lot of political backlash. 0:05:29.880 --> 0:05:32.800 So I think you'll still see efforts on this, but 0:05:32.839 --> 0:05:37.760 they won't be as grand as this climate pledge that 0:05:37.800 --> 0:05:38.919 they had all signed up to. 0:05:39.360 --> 0:05:39.720 What is this? 0:05:39.880 --> 0:05:43.320 I mean, the timing is not a coincidence. Time assuming 0:05:43.360 --> 0:05:46.160 given the new administration coming in. Is that how it's 0:05:46.160 --> 0:05:48.400 being read or is that are they saying anything about 0:05:48.400 --> 0:05:49.000 that the timing? 0:05:50.960 --> 0:05:53.080 I think yeah, I don't think it's a coincidence. I 0:05:53.080 --> 0:05:57.760 think the political winds have shifted on this, and in general, 0:05:57.800 --> 0:06:02.120 I think there is you know, these always these pledges 0:06:02.160 --> 0:06:04.839 always kind of came with an understanding of, Okay, we 0:06:04.920 --> 0:06:07.400 need to help our oil and gas clients transition to 0:06:07.520 --> 0:06:10.200 this new world. So it's not going to be you know, 0:06:10.320 --> 0:06:15.440 cutting ties with the big oil companies. But I think 0:06:15.640 --> 0:06:17.240 they're being more cautious than that. 0:06:17.480 --> 0:06:18.839 And it's not just you know, banks. 0:06:18.839 --> 0:06:21.520 You should point at McDonald's today, the piece coming out 0:06:21.560 --> 0:06:24.240 saying that it's walking back its DEI goals, saying it's 0:06:24.320 --> 0:06:27.440 changing its approach to diversity, equity inclusion, no longer setting 0:06:27.480 --> 0:06:32.960 quote aspirational representation goals, instead focusing on embedding inclusion. 0:06:32.520 --> 0:06:34.240 Practices into its daily business. 0:06:34.480 --> 0:06:36.760 I don't know what that difference is, but that's why 0:06:36.760 --> 0:06:38.520 I wonder if it's just a rebrand like now you 0:06:38.560 --> 0:06:40.960 don't want to say ESG, but if you still have 0:06:41.080 --> 0:06:44.640 some sort of like net zero goals, maybe that terminology 0:06:44.720 --> 0:06:47.480 is more okay. It's just sort of a branding and 0:06:47.520 --> 0:06:49.159 moving away from something extreme. 0:06:50.040 --> 0:06:50.240 Yeah. 0:06:50.279 --> 0:06:52.679 I think it's not wanting to be seen as taking 0:06:52.680 --> 0:06:56.039 a political stance more taking a This is good for 0:06:56.120 --> 0:06:58.159 our risk perspective. 0:06:59.200 --> 0:07:03.279 I feel like it's been you know, across the economy, 0:07:03.320 --> 0:07:06.680 maybe peak woke at some point or peak DEI whatever. 0:07:06.720 --> 0:07:09.040 The pendulum, as you say, yes, say the pendulum just 0:07:09.080 --> 0:07:11.720 swinging back a little bit. Sorry enough to stay on 0:07:11.720 --> 0:07:13.560 top of that. Michael Moore, thank you so much. We 0:07:13.600 --> 0:07:16.000 appreciate that. Michael Moore as a managing editor for Finance 0:07:16.040 --> 0:07:18.200 in the America's Bloomberg News, joining us here in our 0:07:18.200 --> 0:07:21.720 Bloomberg Interactive Brokers studio looking at that story Bridgewater, big 0:07:21.760 --> 0:07:25.720 big hedge fund, cutting about seven percent of its workforce 0:07:25.760 --> 0:07:28.880 and an effort to remain quote nimble. So there you go. 0:07:29.040 --> 0:07:29.320 Yeah. 0:07:29.360 --> 0:07:30.680 And now it's also I think when you look at 0:07:30.680 --> 0:07:33.440 some of these hedge funds, you know they're starting. We've 0:07:33.440 --> 0:07:37.240 seen some hedge funds return capital to investors because they're 0:07:37.240 --> 0:07:40.920 just getting too big and they can't find the opportunities 0:07:40.960 --> 0:07:43.240 to invest the capital and generate their returns they want, 0:07:43.320 --> 0:07:45.120 so let's just give it back. And that's what we've 0:07:45.160 --> 0:07:46.680 seen in that. I think in a hedge fund business 0:07:46.720 --> 0:07:49.320 over the last twenty years has been the funds. More 0:07:49.320 --> 0:07:51.720 and more money's going to fewer and fewer big funds, 0:07:51.760 --> 0:07:53.600 and they're just getting bigger, whether it's Point seventy two 0:07:54.040 --> 0:07:55.680 or Citadel or some of those types of. 0:07:55.600 --> 0:07:58.320 People on flip side. Not every hedge fund is doing well. 0:07:58.680 --> 0:08:03.880 Hedge fund Derek Jupiter has suffered its worst ever losing. 0:08:03.920 --> 0:08:06.040 The street got a thirty two point seven percent decline 0:08:06.120 --> 0:08:09.240 last year. This follows a forty three point three percent 0:08:09.320 --> 0:08:11.320 plunge in twenty twenty three. 0:08:11.520 --> 0:08:11.960 Yikes. 0:08:12.560 --> 0:08:15.000 Assets at the firm has fallen to around eight hundred 0:08:15.040 --> 0:08:17.000 and eighteen million five years. 0:08:17.080 --> 0:08:18.880 Two years ago it was five billion. 0:08:18.960 --> 0:08:19.880 Yeah, that's not good. 0:08:21.520 --> 0:08:25.440 You're listening to the Bloomberg Intelligence Podcast. Catch the program 0:08:25.520 --> 0:08:28.960 live weekdays at ten am Eastern on Applecarplay and Android 0:08:28.960 --> 0:08:31.960 Auto with the Bloomberg Business App. You can also listen 0:08:32.040 --> 0:08:35.319 live on Amazon Alexa from our flagship New York station. 0:08:35.880 --> 0:08:38.520 Just say Alexa Play Bloomberg eleven thirty. 0:08:40.000 --> 0:08:43.240 The ISM Services Index data came out looks so better 0:08:43.280 --> 0:08:45.720 than expected, and we want to get right to that 0:08:45.840 --> 0:08:48.280 ISM data because that's something that's kind of moving the 0:08:48.280 --> 0:08:48.840 markets here. 0:08:49.280 --> 0:08:50.440 Yields popped a little bit. 0:08:50.400 --> 0:08:52.079 Higher here on the back of some of that economic 0:08:52.120 --> 0:08:54.160 data we got the ten year treasury Now I'll put 0:08:54.200 --> 0:08:56.800 about five bass points four point sixty seven on the news. 0:08:57.200 --> 0:09:01.080 Stocks pulled back, also sp down. Just Actually Steve Miller 0:09:01.120 --> 0:09:04.680 joints us he's the chairman at that's the Institute for 0:09:04.720 --> 0:09:08.200 Supply Management, Hasty, you've talked to us about this ism data. 0:09:08.440 --> 0:09:10.960 Alex and I are looking at this and looks really 0:09:11.000 --> 0:09:12.640 strong across the board. What are you seeing? 0:09:13.960 --> 0:09:15.640 Yeah, same thing. You know. 0:09:15.760 --> 0:09:20.160 What drove the increase this month was business activity and 0:09:20.240 --> 0:09:23.880 supplier deliveries kind of offsetting that a little bit. We're 0:09:23.880 --> 0:09:28.000 seeing a continued draw down in backlog of orders, but 0:09:28.160 --> 0:09:31.160 with a lower disruption and supply chains that we've seen 0:09:31.200 --> 0:09:33.080 in the month, it kind of makes sense. 0:09:33.679 --> 0:09:36.560 Any of this related to the potential of tariffs coming 0:09:36.600 --> 0:09:40.800 on in twenty twenty five or twenty twenty six, Well. 0:09:40.679 --> 0:09:43.800 Some of the inventory activity seems to be a result 0:09:43.920 --> 0:09:48.600 of concerns over tariffs. By far, the commentary that came 0:09:48.679 --> 0:09:52.640 through from the respondents was concerns over what tariff impacts 0:09:52.720 --> 0:09:55.320 might have and I think we saw some of that 0:09:55.520 --> 0:09:57.679 in the sentiment around pricings pricing. 0:09:57.720 --> 0:09:59.720 We saw quite a lift month over month. 0:10:00.440 --> 0:10:04.600 Im services prices paid came in well above the forecast, 0:10:04.640 --> 0:10:05.800 well above last period. 0:10:06.360 --> 0:10:07.319 How do we interpret that? 0:10:08.640 --> 0:10:12.280 Yeah, I would directly relate that to some of the 0:10:12.280 --> 0:10:16.080 pricing activity that's coming in for next year's contracts. There 0:10:16.160 --> 0:10:19.679 is risk management around tariff impacts, and we saw some 0:10:19.720 --> 0:10:24.080 of the commentary talking about price increases in anticipation of 0:10:24.120 --> 0:10:26.360 what impacts there might be from the terrace. And it 0:10:26.400 --> 0:10:29.520 was across almost it was fourteen of the eighteen industries 0:10:29.880 --> 0:10:32.960 had commentary around potential negative impact from terrace. 0:10:33.559 --> 0:10:36.400 So is the could this be the peak then for services? 0:10:36.440 --> 0:10:37.800 Like how will that feed through? 0:10:39.280 --> 0:10:39.480 Yeah? 0:10:39.800 --> 0:10:44.800 I think that we'll see based on the supplier the 0:10:46.080 --> 0:10:49.839 supplier deliveries number impact, we'll see that drop down again 0:10:50.280 --> 0:10:56.480 in January, assuming there's no port strike, and that'll give 0:10:56.559 --> 0:10:58.719 a little bit negative pressure on the overall PMI. But 0:10:59.679 --> 0:11:03.240 this quarter is the strongest quarter we've had in a while, 0:11:03.720 --> 0:11:06.560 and I believe it since the beginning of twenty twenty three. 0:11:07.320 --> 0:11:10.360 I feel really strongly about where the number is. It's 0:11:10.520 --> 0:11:12.440 really solid, solid growth. 0:11:13.040 --> 0:11:15.040 All right, Steve Miller, thank you so much. We appreciate 0:11:15.040 --> 0:11:18.319 that's Steve Miller he's a chairman of Institute for Supplying Management. 0:11:18.360 --> 0:11:20.240 That's IM with some strong numbers. 0:11:20.520 --> 0:11:25.600 You're listening to the Bloomberg Intelligence Podcast. Catch us live 0:11:25.679 --> 0:11:28.800 weekdays at ten am Eastern on Apple, Coarcklay and Android 0:11:28.800 --> 0:11:32.120 Auto with the Bloomberg Business App. Listen on demand wherever 0:11:32.160 --> 0:11:35.680 you get your podcasts, or watch us live on YouTube. 0:11:36.400 --> 0:11:39.400 Alex youil here alongside Paul Sweeney. This a Bloomberg Intelligence Radio. 0:11:39.400 --> 0:11:41.760 We bring you all the top news in business, economics, 0:11:41.800 --> 0:11:44.200 and finance through a lens of our Bloomberg Intelligence folks. 0:11:44.200 --> 0:11:46.640 They cover two thousand companies one hundred and thirty industries 0:11:46.679 --> 0:11:49.440 around the world. We also tap a vast network of 0:11:49.480 --> 0:11:51.319 resources outside of Bloomberg as well. 0:11:51.360 --> 0:11:52.480 Mike Summers is one of them. 0:11:52.520 --> 0:11:58.120 He's API, American Petroleum Institute President and CEO. Talks to 0:11:58.320 --> 0:12:02.160 Washington about what to do about energy and Mike your 0:12:02.200 --> 0:12:03.280 claim to fame. Right. 0:12:03.320 --> 0:12:05.080 The second in this radio studio is. 0:12:05.080 --> 0:12:09.520 Actually Landman on Paramount because Paul, my co anchor, is 0:12:09.520 --> 0:12:12.160 watching it and now he loves it and he thinks 0:12:12.280 --> 0:12:13.520 you knows everything about oil. 0:12:13.320 --> 0:12:15.920 And gas and he's all over it. So you're right. 0:12:16.000 --> 0:12:19.880 API is one of the sponsors, so perfect day. Good 0:12:19.920 --> 0:12:21.480 to see him, Mike. What's day one? 0:12:21.559 --> 0:12:23.839 Great show, and I appreciate being with you today. 0:12:24.720 --> 0:12:27.440 What's day one for you guys under a president of administration? 0:12:28.559 --> 0:12:31.480 Well, we've laid out an API five point policy roadmap. 0:12:31.520 --> 0:12:33.400 You can find it at API dot org of the 0:12:33.400 --> 0:12:35.600 things that we're asking this president in this Congress to 0:12:35.640 --> 0:12:38.720 do during the first six months of the administration, but 0:12:38.760 --> 0:12:41.040 there are some things that they can get done early 0:12:41.080 --> 0:12:44.440 in the administration, really on day one. So one of 0:12:44.440 --> 0:12:48.319 those things is lifting the LNG export pause. We're excited 0:12:48.360 --> 0:12:50.400 that we have a new president that's focused on that 0:12:50.440 --> 0:12:53.000 and he's committed to lifting it on day one. So 0:12:53.080 --> 0:12:55.000 that's one thing we think that they can get done 0:12:55.200 --> 0:12:57.559 very quickly. The second thing that we think they can 0:12:57.600 --> 0:12:59.920 do is they can authorize a new five year lease 0:13:00.240 --> 0:13:03.560 plan in the offshore Golf of Mexico. We need a 0:13:03.600 --> 0:13:06.600 five year releasing plan that prioritizes new leases in the 0:13:06.600 --> 0:13:09.080 Golf of Mexico, which continues to be a prolific region 0:13:09.320 --> 0:13:11.880 for the American oil and gas industry. About fourteen percent 0:13:11.920 --> 0:13:14.760 of American oil comes from the Golf of Mexico, which 0:13:14.800 --> 0:13:19.160 is why what President Biden did just yesterday in setting 0:13:19.160 --> 0:13:22.000 aside a new acreage that we will not be able 0:13:22.040 --> 0:13:24.240 to develop with so concerning and so disappointing. 0:13:24.559 --> 0:13:26.040 Another big thing that we're focused on. 0:13:26.000 --> 0:13:30.280 Is repealing the EPA tailpipe mandate, the ev mandate that 0:13:30.320 --> 0:13:33.000 they put in place early in the Biden administration, and 0:13:33.000 --> 0:13:35.319 we'll work with the Trump administration to get that repealed 0:13:35.559 --> 0:13:38.959 and replace the cafe standards that our draconian and US 0:13:39.000 --> 0:13:41.680 automakers can't meet. So those are three of the key 0:13:41.679 --> 0:13:44.560 priorities that we want to focus on early in the administration. 0:13:44.800 --> 0:13:46.760 And then in addition to that, we need to get 0:13:46.760 --> 0:13:48.599 a new tax bill in place before the end of 0:13:48.679 --> 0:13:53.640 twenty twenty five. We're prioritizing things like the corporate tax rate, 0:13:53.720 --> 0:13:57.280 of course, and then really focusing on how we continue 0:13:57.280 --> 0:14:02.040 to build American geopolitical strength and energy trade throughout the world. 0:14:02.679 --> 0:14:06.440 Green energy, How does green energy work with traditional energy? 0:14:06.520 --> 0:14:08.720 I'm not sure what the preferred term is for oil 0:14:08.760 --> 0:14:11.439 and gas, but how does green energy work with oil 0:14:11.480 --> 0:14:13.120 and gas and traditional energy sources. 0:14:13.800 --> 0:14:15.400 Well, the truth of the matter is is that we 0:14:15.440 --> 0:14:16.920 know that we're going to need all sorts. 0:14:16.679 --> 0:14:18.800 Of energy to meet the energy needs of the future. 0:14:19.160 --> 0:14:21.040 If golden sas is right, and we're going to need 0:14:21.080 --> 0:14:23.600 ten percent more energy for the next ten years to 0:14:23.640 --> 0:14:26.000 support data centers and AI growth. 0:14:26.560 --> 0:14:28.400 We're going to need all sources. 0:14:27.920 --> 0:14:29.880 Of new energy, which is why it's important that we 0:14:29.920 --> 0:14:31.640 get a new permitting bill in place that we can 0:14:31.640 --> 0:14:34.360 build out not just oil and gas pipelines, but new 0:14:34.360 --> 0:14:38.560 transmission lines for those new energy sources as well. The 0:14:38.600 --> 0:14:40.840 great thing about natural gas in particular is that it 0:14:40.880 --> 0:14:45.520 can support these alternative energy sources as well. Because we 0:14:45.560 --> 0:14:47.320 know that the wind isn't always blowing and the sun 0:14:47.360 --> 0:14:49.320 isn't always shining, you're going to need something to back 0:14:49.360 --> 0:14:53.320 that up. And natural gas is almost always the preferred 0:14:53.760 --> 0:14:56.520 energy of choice when backing up those sources. 0:14:56.840 --> 0:14:58.960 So we know that we're going to need more energy. 0:14:59.000 --> 0:15:01.160 We don't just need all of the above, but more 0:15:01.240 --> 0:15:04.440 of all if we're going to be successful in leading 0:15:04.480 --> 0:15:05.359 the future. 0:15:05.280 --> 0:15:06.920 Particularly when it comes to AI. 0:15:07.520 --> 0:15:10.120 So we want to work with our partners in the 0:15:10.160 --> 0:15:13.720 other energy system to make sure that we can continue 0:15:13.760 --> 0:15:14.360 to expand. 0:15:14.680 --> 0:15:17.680 So Mike also, yeah, I would say a popular talking 0:15:17.720 --> 0:15:20.800 point for Republicans was that we need to get rid 0:15:20.840 --> 0:15:22.880 of the Inflation Reduction Act. But if you dig into 0:15:22.880 --> 0:15:24.360 a lot of the details, a lot of the oil 0:15:24.360 --> 0:15:27.240 guys and natural gas guys like the Inflation Reduction Act 0:15:27.280 --> 0:15:30.160 in things like carbon capture credits right forty five Q. 0:15:30.880 --> 0:15:33.840 New rules on the hydrogen tax credit forty five V 0:15:34.000 --> 0:15:36.320 were unveiled that people were pretty happy with because it 0:15:36.400 --> 0:15:39.120 had a broader swath of the energy that you could 0:15:39.240 --> 0:15:40.960 use to make hydrogen. 0:15:41.520 --> 0:15:43.560 Are you guys happy with those things right now? 0:15:44.560 --> 0:15:46.880 I actually feel pretty good about our ability to defend 0:15:46.920 --> 0:15:49.680 the forty five tax credits Q and V are the 0:15:49.680 --> 0:15:52.160 ones that are most important to us for carbon. 0:15:51.920 --> 0:15:53.120 Capture and hydrogen. 0:15:53.160 --> 0:15:55.800 We were pleased with the Biden administration rules, though we 0:15:55.800 --> 0:15:58.320 think they could be improved under President Trump on both 0:15:58.600 --> 0:16:01.840 ccs and HIGH, so we'll work with the Trump administration 0:16:01.880 --> 0:16:04.400 to improve those. But there are provisions I think that 0:16:04.880 --> 0:16:08.280 under the Inflation Reduction Act that are vulnerable, particularly the 0:16:08.440 --> 0:16:11.320 funds from the Loan Program Office, which has just become 0:16:11.360 --> 0:16:15.640 a giant slush fund for favored industries under the Biden administration. 0:16:16.120 --> 0:16:18.880 So I do think the funds that haven't been obligated 0:16:18.920 --> 0:16:23.000 yet under the Loan Program Office are very vulnerable. As 0:16:23.040 --> 0:16:26.800 Congress that looks towards towards reconciliation, so that's where I 0:16:26.840 --> 0:16:28.160 think most of the purpose will be. 0:16:28.320 --> 0:16:30.200 But some of the money from the Department of Loan 0:16:30.560 --> 0:16:34.320 Office is going to like companies that produce a nuclear 0:16:34.600 --> 0:16:38.800 or have natural gas. It's not just like Rando green technology. 0:16:39.200 --> 0:16:41.200 How are you going to distinguish that? Because if you 0:16:41.200 --> 0:16:43.520 need the loan in order to say, restart a nuclear 0:16:43.560 --> 0:16:48.560 plan or work into small modular reactors, for example, what 0:16:48.600 --> 0:16:49.280 do you think about that? 0:16:50.040 --> 0:16:51.880 Well, I think that's going to be something that Congress 0:16:51.920 --> 0:16:54.200 is going to have to sort out and the administration 0:16:54.280 --> 0:16:56.040 is going to have to sort out. I'm pretty sure 0:16:56.080 --> 0:16:58.000 that at the beginning of the administration what they're going 0:16:58.040 --> 0:16:59.920 to do is they're going to freeze all new funds 0:17:00.280 --> 0:17:02.960 coming from the Loan Program Office until they get a 0:17:02.960 --> 0:17:05.040 better sense as to what to leave in and what 0:17:05.119 --> 0:17:06.920 to leave out. And that'll be up to the new 0:17:07.000 --> 0:17:10.159 Energy Secretary, Chris Right And you know, I'm confident that 0:17:10.200 --> 0:17:13.280 they'll be able to figure out what they should what 0:17:13.280 --> 0:17:15.640 they should focus on, and the things that they need 0:17:15.680 --> 0:17:16.640 to leave behind. 0:17:17.320 --> 0:17:18.800 But that'll be up to the administration. 0:17:19.080 --> 0:17:20.800 You know, our focus is going to be on advancing 0:17:20.840 --> 0:17:24.919 a reconciliation bill that supports American energy that means new 0:17:25.000 --> 0:17:28.800 leases in the offshore, new leases on shore reopening Alaska, 0:17:28.840 --> 0:17:32.800 which President Biden has taken a particularly focus on in 0:17:32.880 --> 0:17:36.080 terms of cutting off the amount of oil and. 0:17:36.000 --> 0:17:38.040 Gas that we can produce in the state of Alaska. 0:17:38.200 --> 0:17:40.240 So we're confident that we're going to be able to 0:17:40.240 --> 0:17:43.199 prevail on the administration and the Congress to advance new 0:17:43.280 --> 0:17:46.880 leasing priorities as they get that big new reconciliation bill. 0:17:47.000 --> 0:17:48.320 On what do we have you heard? 0:17:48.400 --> 0:17:50.719 What have been I guess maybe any rubblings coming out 0:17:50.760 --> 0:17:54.080 of this new Trump administration about how aggressive they planned 0:17:54.119 --> 0:17:55.960 to be as a related to oil and gas. 0:17:56.640 --> 0:17:58.120 I think they plan to be very aggressive. 0:17:58.160 --> 0:18:00.880 I mean, as you know, the President has really focused 0:18:00.880 --> 0:18:05.000 on how do we continue to grow this tremendous American resource. 0:18:05.280 --> 0:18:06.800 We're producing about thirteen. 0:18:06.480 --> 0:18:09.160 Point four million barrels of oil everying a single day, 0:18:09.200 --> 0:18:13.000 which is a record. We're producing records amounts of natural gas. 0:18:13.200 --> 0:18:15.719 But we also see record demand for these products, not 0:18:15.760 --> 0:18:17.600 just record demand for oil and gas, but also record 0:18:17.600 --> 0:18:20.360 demand for coal and other sources as well. And that's 0:18:20.359 --> 0:18:24.040 because we're starting to see this demand continue to increase. 0:18:24.400 --> 0:18:26.320 This we're in a different era than we were during 0:18:26.320 --> 0:18:29.720 the first Trump administration, where energy demand was relatively stable 0:18:30.119 --> 0:18:33.440 during the first Trump administration. Everything's changed in the last 0:18:33.440 --> 0:18:37.040 eight years where you have new sources of demand, growing 0:18:37.240 --> 0:18:39.760 data centers of course AI more things. 0:18:39.520 --> 0:18:41.000 Being plugged into the electric grid. 0:18:41.160 --> 0:18:43.800 So I think what President Trump understands is that we're 0:18:43.800 --> 0:18:46.199 going to need a lot of energy going forward if 0:18:46.200 --> 0:18:48.040 we're going to win the energy security race. 0:18:48.359 --> 0:18:50.359 Hey, Mike, it's always going to catch up. So many 0:18:50.359 --> 0:18:52.560 more things to talk about. We'll get you back. 0:18:52.600 --> 0:18:55.320 We'll go through them also, and like really questioning how 0:18:55.320 --> 0:18:57.040