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Speaker 1: Bloomberg Audio Studios, podcasts, radio news. You're listening to the

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Speaker 1: Bloomberg Intelligence Podcast. Catch us live weekdays at ten am

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Speaker 1: Eastern on Applecarplay and Android Auto with the Bloomberg Business App.

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Speaker 1: Listen on demand wherever you get your podcasts, or watch

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Speaker 1: us live on YouTube.

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Speaker 2: Tariff news coming out of Washington, d C. President Trump

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Speaker 2: raising the tariff on Canadian steal on aluminum from our

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Speaker 2: good friends. I like to think still in Canada, and

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Speaker 2: that is certainly roally in the markets. S and P's

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Speaker 2: off six tens a one percent, the nastacs off quarter

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Speaker 2: one percent. We're gonna break down with a couple of

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Speaker 2: experts over the next couple of segments. Let's go right

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Speaker 2: to Joe Dough. He covers all the metals I'm mining

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Speaker 2: for Bloomberg News. Joe, how much aluminum do we get

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Speaker 2: from Canada? I know it's a big deal for them.

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Speaker 2: Is it a big deal for US consumers?

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Speaker 3: Yeah, it's massive.

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Speaker 4: One of the numbers that we ran out and Richard

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Speaker 4: and probably get this a little closer, but it's something

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Speaker 4: around seventy percent of the aluminum consumed in the United

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Speaker 4: States per year is produced in Canada.

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Speaker 5: Oh boy, oh boy.

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Speaker 2: All right, So what's the feeling here within the industry

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Speaker 2: about what's happening, how the industry might react.

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Speaker 4: I think at this point there's quite a bit of

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Speaker 4: confusion with an industry. I mean, we don't know for sure,

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Speaker 4: but it's not clear that the President of the United

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Speaker 4: States had at least telegraph that he might be going

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Speaker 4: to double the aluminum and steel tariffs. So you probably had.

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Speaker 4: You're probably having a lot of chatter around boardrooms at

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Speaker 4: places like Ford and Molten Cores and Budweiser and Coca Cola.

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Speaker 2: I want to bring Richard Pork He covers the metals

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Speaker 2: and mining stocks for Bloomberg Intelligence. Richard, give us a

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Speaker 2: number on kind of how material this is in terms

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Speaker 2: of how much aluminum do we in fact steel all

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Speaker 2: that stuff do we get from Canada?

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Speaker 6: Okay, so Canada is the number one export as Joe mentioned,

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Speaker 6: they're also number one export of steel the US aluminum.

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Speaker 6: It's a much bigger problem because the US doesn't can't

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Speaker 6: needs to is that needs doesn't have the capability to

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Speaker 6: produce aluminum. Because our electricity electricity is number one costs

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Speaker 6: to produce aluminum, we're not competitive. Electrical Mark energy costs,

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Speaker 6: So therefore we need to import aluminum steel. On the

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Speaker 6: other hand, the US imports about twenty percent of its

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Speaker 6: steel needs. Our look, our analysis shows that maybe a

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Speaker 6: third of that is steal that the US producers don't

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Speaker 6: want to produce or maybe can't produce. So therefore, with

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Speaker 6: the current industry utilization at around seventy five percent, they

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Speaker 6: can ramp up and cover a short fall you know

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Speaker 6: on steel lunum. We don't have that capability.

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Speaker 7: Ryan Gribrins give stratigue is said another day, another tariff announcement.

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Speaker 7: How seriously should we take this? I mean, markets are reacting,

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Speaker 7: as we've seen the whiplash the past weeks, But when

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Speaker 7: do we know if it's the quote real deal.

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Speaker 6: Well, you know that's the twenty four dollars dollar question

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Speaker 6: that everybody's asking. You know, this one sounds like it

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Speaker 6: was in response to Canada coming with twenty five percent

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Speaker 6: energy tariff, so I could see it, you know, if

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Speaker 6: Canada rolls back there tariff, the US rolls back, you know,

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Speaker 6: maybe back down to twenty five percent.

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Speaker 2: Hey, Joe, so you mentioned kind of the people that

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Speaker 2: actually use a luminium, whether it's a you know, making

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Speaker 2: a can for beer or soda. Are we hearing anything

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Speaker 2: from just those types of people, because those are the

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Speaker 2: ones that can have to deal with as well.

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Speaker 4: Yeah, I mean the packaging companies in particular are a

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Speaker 4: little more careful because there's a lot more competition there.

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Speaker 4: Like the first time around, I remember hearing from one

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Speaker 4: of the big beer companies saying, you know, Joe, if

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Speaker 4: we raised the price of you know, a twelve pack

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Speaker 4: or a six pack of beers, you know, the other

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Speaker 4: company would come in and eat our lunch for it.

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Speaker 3: Right.

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Speaker 4: However, I was saying earlier with Richard on another segment,

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Speaker 4: you know, the Ford CEO came out a month ago

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Speaker 4: and said these terrafts will blow a hole through the industry.

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Speaker 4: So I think you are starting to hear more CEOs

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Speaker 4: actually be a bit more aggressive with what they're saying now.

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Speaker 4: Partly that is because of the bigger concerns that go

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Speaker 4: beyond just metal terrafts. You know, Mexico and Canada terraces

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Speaker 4: would be absolutely difficult to handle. But yeah, I think

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Speaker 4: you're hearing it from them. Rich Third thirty seconds. What

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Speaker 4: if some of any of the companies reacted yet so

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Speaker 4: far today we him you.

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Speaker 6: Know, a Cola on their latest call had kind of

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Speaker 6: outlied in scenario what they saw would happen, and what

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Speaker 6: they saw happen is they would shift their production to

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Speaker 6: Europe or shift their shipments to Europe, and they expect

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Speaker 6: a lower tariff country. You have to come in and

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Speaker 6: backfill what they didn't do to the US.

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Speaker 2: Okay, all right, appreciate getting both of you guys. Jojoe

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Speaker 2: covers medals of money for Bloomberg News. Richard Boord covers

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Speaker 2: it from Bloomberg Intelligence side, looking at the companies here,

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Speaker 2: so again the news President Trump doubling the tariff on

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Speaker 2: Canadian steel and aluminum to fifty percent, a bigger issue

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Speaker 2: for aluminums. What kind of what we're learning here.

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Speaker 1: With you're listening to the Bloomberg Intelligence Podcast. Catch us

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Speaker 1: live weekdays at ten am Eastern on Apple, Coarplay and

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Speaker 1: Android Auto with the Bloomberg Business App. Listen on demand

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Speaker 1: wherever you get your podcasts, or watch us live on YouTube.

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Speaker 2: Let's sit down to Houston. Right now, Bloomberg Intelligence co

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Speaker 2: host Alex Steele speaks with Carlisle, chief strategy Officer of

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Speaker 2: Energy Pathways, Jeff Curry. Let's go to Alex right now.

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Speaker 8: Hey, Paul, thanks lot, really appreciate it. Jeff, I've been

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Speaker 8: asking CEOs for the last day and a half, what

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Speaker 8: do you do with twenty five percent tariffs? And now

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Speaker 8: it's going to be what do you do with fifty

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Speaker 8: percent tariffs?

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Speaker 9: What's going to happen to the market.

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Speaker 10: Well, it's pricing it in, you know, copper, you know,

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Speaker 10: heading towards five dollars a pound right now. But I

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Speaker 10: think aluminum is the one to really watch because the

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Speaker 10: question is can you on shore aluminum.

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Speaker 5: Production and the answer is absolutely not.

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Speaker 10: You know, if you think data centers in AI are

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Speaker 10: power intensive, aluminum smelting is in a whole different world.

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Speaker 10: It's six times more power intensive per dollar revenue than

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Speaker 10: AI data centers. So if you're already power constrained, there's

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Speaker 10: no possible way you're going to bring all of this

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Speaker 10: aluminum smelting into the United States.

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Speaker 8: So where do we get most of our aluminum and steel?

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Speaker 8: Then the refined products, well.

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Speaker 10: A lot of it comes from the hydroelectric power up

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Speaker 10: in Quebec, so it comes down into the US from that.

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Speaker 10: So shutting down that cheap source of aluminum supply and

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Speaker 10: trying to replace it with really expensive produced domestically produced supply.

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Speaker 5: I think it's going to be a tall ordered ask.

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Speaker 8: It's been a tough commodity road in the last couple

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Speaker 8: of weeks. If we did with this moolatility, right oil,

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Speaker 8: was it a six month low? That's on recession fears,

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Speaker 8: tear fears, growth fears, et cetera.

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Speaker 9: What kind of cycle are we in right now?

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Speaker 10: Well, I think what we're going through is a huge

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Speaker 10: shift in the global order around security. And I think

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Speaker 10: you know what is the response that probably Ontario is

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Speaker 10: going to do to these Tariffsy're probably going to cut power.

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Speaker 10: The governor's already threatened he's going to do it. He

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Speaker 10: cuts power into the US. Energy security is top of mind,

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Speaker 10: and I think that's what's going on right now, whether

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Speaker 10: it's in Germany. Actually Germany, the Norwegians threatened to cut

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Speaker 10: power into Germany back in December when a crisis occur there.

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Speaker 10: So I think energy security is top of mind for

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Speaker 10: everybody around the world right now.

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Speaker 9: Okay, so what does that look like?

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Speaker 8: Because what's so interesting about commodities is it'll always clear

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Speaker 8: it a price, right, You'll always buy something.

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Speaker 9: It just depends on what price you'll buy it. Is that

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Speaker 9: still true?

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Speaker 5: Absolutely?

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Speaker 10: And I think what we're going to start to see

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Speaker 10: is that's what's going on with aluminum and copper today.

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Speaker 10: Is there going to price in a security premium to

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Speaker 10: make sure you have that supply in your country domestically.

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Speaker 5: Protected, in duty paid.

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Speaker 10: You're seeing it in gold, and you're seeing it across

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Speaker 10: the metal space and then particularly an energy.

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Speaker 5: We're beginning to.

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Speaker 10: See that and I think that that is going to

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Speaker 10: be the primary driver of the you know, let's call

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Speaker 10: it the new cycle and commodities.

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Speaker 8: So it's not geopolitical risk, it's not a green premium,

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Speaker 8: it's a security premium.

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Speaker 9: Correct, you're gonna pay up to produce this stuff at home?

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Speaker 5: Yep, exactly. That.

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Speaker 9: That's a humongous shift.

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Speaker 10: It was huge, huge, and it's going to be really

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Speaker 10: difficult to do, you know, whether or not. And I

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Speaker 10: think the argument we take is it's going to be

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Speaker 10: a diversified set of energies.

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Speaker 5: That's why we call it the New Jewel Order.

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Speaker 10: Is because you're gonna want oil and gas, you're gonna

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Speaker 10: want renewables, nuclear, you're gonna want everything, and you want

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Speaker 10: to diversify yourself because if you lose.

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Speaker 5: One of those supplies.

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Speaker 10: You want to be diversified so that you can deal

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Speaker 10: with that that disruption. And I think the key point

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Speaker 10: here is when we think about fossil fuels, why do

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Speaker 10: we like fossil fuels so much, is because they're tradable,

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Speaker 10: they're portable, they're stortable, and they have high energy density,

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Speaker 10: which is why we move them around the world. Those

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Speaker 10: same reasons we like them, it's the same reasons so

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Speaker 10: dangerous because somebody can just take them from you. And

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Speaker 10: so when we think about what's driving I think this

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Speaker 10: new environment we're living in, let's call it peak trade

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Speaker 10: instead of you know peak.

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Speaker 5: Actually, look at the evolution of peak oil.

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Speaker 10: It started out peak supply, we're going to run out

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Speaker 10: a supply, and then peak demand. We got too much

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Speaker 10: of the stuff, so we need to reduce you know,

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Speaker 10: the emissions. And now it's peak trade, meaning I can't

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Speaker 10: get my hands on it.

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Speaker 8: So it's going to be really interesting then, is if

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Speaker 8: we get a piece in the Ukraine War, what happens

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Speaker 8: with Germany and Europe and buying Russian gas.

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Speaker 10: They're going to be hesitant, they'll probably take a little bit. Yeah,

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Speaker 10: they're still buying it, but they're going to diversify their sources.

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Speaker 10: And I think that's the key message here is diversify

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Speaker 10: your sources so you're not so dependent on one supplier

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Speaker 10: one type of energy.

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Speaker 5: And I like to point out what is the best selling.

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Speaker 10: Car out there, a PHEV, a plug in hybrid. Why

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Speaker 10: because it operates off oil, gas, solar, wind, nuclear, the

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Speaker 10: entire gambit.

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Speaker 5: Of all the energy sources.

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Speaker 10: And I think that that type of diversity is to

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Speaker 10: be key in this new jewel order.

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Speaker 8: Okay, So if I'm looking at prices in general, like

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Speaker 8: does the band move up?

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Speaker 9: Do prices become more volatile? Do they move down? Like

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Speaker 9: if I'm looking at say oil or copper, what's my

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Speaker 9: trading band?

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Speaker 10: I think that the volatility is going to explode across

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Speaker 10: all these markets. You're already seeing it in power and

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Speaker 10: the metals and across the space.

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Speaker 5: That's going to lead to a higher average price.

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Speaker 10: By the way, the volatility then discourages the MS made

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Speaker 10: I don't want to invest in this thing is too volatile.

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Speaker 10: Lower investment creates more volatility, and it just feeds off

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Speaker 10: of itself.

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Speaker 8: You're one of the first to invent the word supercycle,

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Speaker 8: right I mean have big supercycles. There's big ups, there's

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Speaker 8: big downs, and there's an investment cycle that goes with it.

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Speaker 9: Are we no longer in that, you know?

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Speaker 5: I think that's a great question.

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Speaker 10: And those supercycles before were created by demand pull creating

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Speaker 10: big shortages, created these big trends that created that supercycle.

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Speaker 5: This one's a malinvestment cycle.

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Speaker 10: It's industrial policy push which creates pockets of ince is

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Speaker 10: like to call it.

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Speaker 5: It's like a bubbling cauldron, a little mini.

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Speaker 10: Supercycles everywhere, and you get these high volatility and that's

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Speaker 10: what we're seeing. By the way, the opportunity for investors

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Speaker 10: in this environment is phenomenal. In fact, one of the

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Speaker 10: themes going around here in Seer Week is the oil market.

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Speaker 10: And these markets are micro bullish but macro bearish, So

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Speaker 10: that micro creates these little opportunities inside there that you

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Speaker 10: can take advantage of.

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Speaker 5: But you don't get that big upward trend.

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Speaker 10: And I think this bubbling cauldron of a little supply

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Speaker 10: and demand imbalance is probably the best way to distry.

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Speaker 8: Does it change the time horizon for investments or the

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Speaker 8: return for those investments When.

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Speaker 10: We think about long term investments, it's going to provide

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Speaker 10: a very similar return.

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Speaker 5: But you've got to manage that risk.

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Speaker 10: And I think that that's the real the message here

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Speaker 10: we think about you know, the focus before was on

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Speaker 10: levelized cost of energy.

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Speaker 5: Get the l COE down. We got it down, but

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Speaker 5: we were unable to deliver the jewels. So you think

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Speaker 5: about Germany.

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Speaker 10: It got its levelized cost, but it could only produce

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Speaker 10: the power when the wind blue or the sunshine. Now

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Speaker 10: the focus is on that delivered jewel. You can think

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Speaker 10: about Now the focus is on Roe instead of LCOE.

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Speaker 10: And so get another way to say it is dispatched

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Speaker 10: power that goes through the consumer is opposed to a

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Speaker 10: centralized production of power.

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Speaker 9: Okay, fascinating.

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Speaker 8: One more quick question, because you're you and it's an

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Speaker 8: oil conference, what's the lowest price of oil you think

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Speaker 8: we're going to see this year?

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Speaker 9: And what's the highest? Totally bad question.

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Speaker 10: I think that's a great question because about this drill,

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Speaker 10: baby drill, we're sitting on the bottom of the cost structure.

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Speaker 10: You already see it, drillings coming off. You know, you

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Speaker 10: know all the OPEC countries are under pressure.

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Speaker 5: Yeah, maybe you can get.

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Speaker 10: Down into the low sixties or something like that. I

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Speaker 10: would argue you know, the markets to the upside. You know,

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Speaker 10: looking at the amount of investment out there. Inventories are low,

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Speaker 10: by the way, and now you put the security premium,

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Speaker 10: people are going to be scrambling to get the barrels

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Speaker 10: bringing in and I think that that's going to get

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Speaker 10: to be the key message.

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Speaker 9: Jeff, always a pleasure. Love chatting with you.

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Speaker 8: Is always going to co w at Siah as well,

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Speaker 8: Jeff Curry, Carlisle, chief strategy officer of Energy Pathways.

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Speaker 2: Paul back to you, all right, Alex, thank you so much.

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Speaker 2: We appreciate that. Bloomberg Intelligence co host Alex Steele speaking

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Speaker 2: with Carlisle, chief strategy officer of Energy Pathways at Jeff Curry.

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Speaker 1: You're listening to the Bloomberg Intelligence podcast. Catch us live

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Speaker 1: weekdays at ten am Eastern on Apple coarcklay and Android

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Speaker 1: Auto with the Bloomberg Business App. Listen on demand wherever

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Speaker 1: you get your podcasts, or watch us live on YouTube.

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Speaker 2: Let's head down to Houston, Texas h Town, as they say.

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Speaker 2: Bloomberg Intelligence co host Alex Steele speaks with Carlisle. I'm

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Speaker 2: sorry that was the last moment. Speaks with Total Energy

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Speaker 2: CEO Patrick Puyoni about the French oil company. Let's go

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Speaker 2: to Alex right now, Alex, all right, thanks.

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Speaker 8: So much, Paul, I appreciate it. Right I'm here with

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Speaker 8: Patrick Preona. He's chairman and CEO of Total Energies. And

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Speaker 8: the amazing thing about Total it's a European energy company,

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Speaker 8: but it uses its money from oil and gas to

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Speaker 8: do stuff in power and alternative energy. That's a model

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Speaker 8: that not a lot of other companies actually subscribe by.

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Speaker 8: So it's great to get your perspective. Patrick, thank you

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Speaker 8: so much for joining me.

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Speaker 5: Thank you for welcoming me.

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Speaker 8: News of today, we just heard that we have an

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Speaker 8: emergency electricity issue in the United States. President Trump is

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Speaker 8: now declaring fifty percent tariffs. I'm still on aluminum imports

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Speaker 8: from Canada. Your reaction to a.

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Speaker 11: Trade war, I think it's that I think this war should.

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Speaker 11: I hope it will hand quickly. I think it's better

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Speaker 11: not to have wars, to be honest. Maybe it's a

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Speaker 11: tactic to negotiate, and I think, honestly, there are all

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Speaker 11: these economies are interconnected. In facting in North America, you

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Speaker 11: know in many ways the cars or bots, et cetera,

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Speaker 11: including by the way electricity you know, of course you

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Speaker 11: the northeast of the US are receiving electricity from the

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Speaker 11: idea of Canada for the benefit of the citizens, so

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Speaker 11: they have a lot of issues. I understand a about drugs, migrations,

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Speaker 11: it's not.

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Speaker 5: Only about trade.

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Speaker 11: So my view is that as a global ward company,

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Speaker 11: it's better to hope if you will take be so quickly,

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Speaker 11: that's all what I can hope in the benefit of

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Speaker 11: all the parties. And like it was for Trump, and

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Speaker 11: I remember it was a debate at the end. Maybe

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Speaker 11: the shortest would be the better for everybody, including by

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Speaker 11: the way, for the US economy.

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Speaker 8: Does it make you think two or three times about

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Speaker 8: investing in the United States?

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Speaker 11: No, No, because I'm an energy company.

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Speaker 5: Energy.

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Speaker 11: It's a nice country for energy. You have the cheapest gas,

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Speaker 11: you have oil.

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Speaker 5: We can explove, we.

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Speaker 11: Can develop in the electricity booming market of xtricity.

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Speaker 5: You need more electricity.

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Speaker 3: It's gonna cost more now now, Yeah, but it's good too.

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Speaker 11: We can build gas plants, cheap gas gas. Five poor

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Speaker 11: plants we are building also in Texas. Were in Texas today.

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Speaker 11: I have five giga webs or solar plants. It was

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Speaker 11: easy to build here because you have a lot of space.

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Speaker 11: Combining plants with gas plants, it's a nice way to

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Speaker 11: produce more equicity. So for me, the US is a

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Speaker 11: large market and we are ready to invest in the US.

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Speaker 5: I understand that.

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Speaker 11: The only point is that if we need to reshure,

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Speaker 11: for example, all the solar panels that we use on

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Speaker 11: our neway board films, why not. It's just a little

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Speaker 11: more expensive, so the customers will have to pay somewhere.

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Speaker 8: So not you, but the end market. Yeah, okay, but

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Speaker 8: then let's just tackle say after win for.

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Speaker 5: A second, I put it in the pools.

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Speaker 9: A pause or like the garbage.

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Speaker 5: Pine not garbage pause.

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Speaker 11: We got a concession for fifty years, okay, So I

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Speaker 11: understand during the next four years no way to obtain

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Speaker 11: any federal license. So I don't want to spend my

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Speaker 11: time to lose my time my team, so I don't

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Speaker 11: need to spend pay money to spend money for that.

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Speaker 5: So we say no, we put a poose.

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Speaker 11: We have reduced our teams to minimum, and then four

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Speaker 11: years we'll see if federal GLD policies are changed.

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Speaker 8: Are you worried about any existing leases that you currently

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Speaker 8: have and operating for wind and solar I was talking

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Speaker 8: to the Secretary of the Interior, who didn't who didn't

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Speaker 8: rule that out? To do what to take away those leases?

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Speaker 11: To take away the leases, but the leazes, it can

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Speaker 11: manage that on federal lands, so I check. I have

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Speaker 11: no leazies on federal lands. So and by the way,

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Speaker 11: in Texas there is no federal lands or most so

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Speaker 11: no that we make. We make our due diligence. So

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Speaker 11: we are fine. And I think, honestly when I discuss

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Speaker 11: by the way, lund mask is a big fan of

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Speaker 11: solar and batteries for good reasons, so I think, and

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Speaker 11: we will see the debate. I trans choose the debate

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Speaker 11: the Congress and the Senate would be interesting with the

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Speaker 11: reconciliation bill.

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Speaker 5: So that's clue.

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Speaker 11: But for the time, I mean, we will wait to

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Speaker 11: see what are the new physical conditions to develop solar

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Speaker 11: in the US. But you know there are a lot

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Speaker 11: of red states where we develop new way bores. And again,

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Speaker 11: what the priority for Trump administration is. We want more

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Speaker 11: electricity for AI for data centers.

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Speaker 5: It's all of the above. More electricity is gas.

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Speaker 11: It could be nuclear, but it could be also were

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Speaker 11: bares with batteries.

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Speaker 5: So I'm optimistic.

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Speaker 11: I think at the end common sense in the US,

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Speaker 11: but have observed at the end business interests are always respected,

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Speaker 11: and you have a fundamentalism. Trum is very business friendly,

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Speaker 11: So why not for energy, which is the core of

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Speaker 11: all the program for golf.

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Speaker 5: Okay, so I'm optimistic.

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Speaker 8: Globally though, I mean, we're looking at starts taking a hit.

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Speaker 8: The sentiment's not great. They're worries about recession, either in

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Speaker 8: the US or elsewhere because of terrorsts are using any.

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Speaker 9: Indication of that.

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Speaker 11: Yeah, but what because you know what people ate, it's uncertainty.

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Speaker 11: What has been created is uncertainty. We've all these started

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Speaker 11: for us. So suddenly we don't like the markets. The

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Speaker 11: stock markets do not like. We don't know what we go.

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Speaker 11: So putting the caroos is a nice way to negotiate.

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Speaker 11: I can use it myself from time to time. I'm

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Speaker 11: not a big I'm not sure obtaining the good reserves.

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Speaker 5: But short, callous please, that's all.

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Speaker 11: But the markets are saying to the administration we don't

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Speaker 11: like uncertainty.

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Speaker 5: We are changing the world. Where do we go?

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Speaker 11: So I think the shortest will be the better for

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Speaker 11: all the interests, including fundamentally for the US. Economy, and

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Speaker 11: I'm sure that President from Trump and his administration are

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Speaker 11: very led by the un lf US economy, which was

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Speaker 11: not too bad in fact, so stuff is uncertainty. But

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Speaker 11: I think the best thing to do in order to

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Speaker 11: avoidization and things, which honestly is the US economy SHO

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Speaker 11: should not get again.

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Speaker 8: No globally for China, for example, China puts a tar

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Speaker 8: uf on US energy that does directly impact your business.

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Speaker 8: You're a huge gas and energy traders.

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Speaker 5: It does not impact.

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Speaker 11: I will tell you what, because the Chinese are smart

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Speaker 11: if they choose that product is because it has a

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Speaker 11: little impact. Because in fact, a company like Total we

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Speaker 11: produce energy fourty million terms in twelve countries. So yes,

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Speaker 11: my energy from the US will not go to China

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Speaker 11: because there is a tariff, but I will use the

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Speaker 11: energy from cat or from Australia to go to China.

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Speaker 11: So in fact we made the analysis. The impact on

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Speaker 11: China is very minimum, almost nothing. And for honestly, today

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Speaker 11: for US we are the largest exporter of US energy

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Speaker 11: more than Telemeton's. Our primary market is more Europe today,

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Speaker 11: so we are so we bring recent Europe, which is

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Speaker 11: fitting by the way, effect exactly with the Trump administration

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Speaker 11: policy to expand the business the trade or to the

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Speaker 11: trade with Europe food, energy, and in particular energy.

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Speaker 8: What happens though, if there's peace in Ukraine and Europe

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Speaker 8: starts buying Russian gas more.

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Speaker 5: We'll see, First we need to have peace.

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Speaker 11: Second we need to see if Europeans will buy more

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Speaker 11: Russian gas.

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Speaker 8: Any indication that they might from here where you say,

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Speaker 8: I think you know, it's not an easy It will

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Speaker 8: be a debate between economy and geopolitics.

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Speaker 11: Economically, for sure, Russian gas is cheaper, so it was

441
00:20:41,119 --> 00:20:45,159
Speaker 11: part of the competitiveness of the German industry. Politically, I

442
00:20:45,160 --> 00:20:49,160
Speaker 11: think it still will be a big debate to see if.

443
00:20:48,960 --> 00:20:50,000
Speaker 5: We take back some gas.

444
00:20:50,080 --> 00:20:52,520
Speaker 11: Yes we'll take some Russian gas, but surely not at

445
00:20:52,560 --> 00:20:56,800
Speaker 11: the same level before the war. The other dependency from

446
00:20:56,840 --> 00:20:59,760
Speaker 11: Europe to the Russian gas. I think this eries over

447
00:21:00,560 --> 00:21:02,639
Speaker 11: we will be in between will not be zero. It

448
00:21:02,680 --> 00:21:04,560
Speaker 11: will not be one of the fifty percent per year,

449
00:21:04,600 --> 00:21:07,840
Speaker 11: maybe alph of it eighty. And so that means that

450
00:21:07,960 --> 00:21:12,240
Speaker 11: still we will need more energy after the peace when

451
00:21:12,280 --> 00:21:14,080
Speaker 11: we were using energy.

452
00:21:13,840 --> 00:21:14,560
Speaker 5: Before the war.

453
00:21:14,880 --> 00:21:18,119
Speaker 11: So for the US energy it is a growing market.

454
00:21:18,480 --> 00:21:21,600
Speaker 8: And also you have Germany that's trying to pass money

455
00:21:21,600 --> 00:21:24,919
Speaker 8: to be able to rearm and reindustrialize. What kind of

456
00:21:24,920 --> 00:21:27,480
Speaker 8: demand you like, what's your opportunity set there that really

457
00:21:27,480 --> 00:21:28,520
Speaker 8: comes to pass.

458
00:21:30,080 --> 00:21:32,439
Speaker 11: But I think Germany is a very strong market for us.

459
00:21:32,440 --> 00:21:34,639
Speaker 11: We love it because the Germans in an excity have

460
00:21:34,760 --> 00:21:37,600
Speaker 11: decided to get a non nuclear get.

461
00:21:37,400 --> 00:21:39,359
Speaker 5: Off of coal, so it will be a mix of

462
00:21:39,400 --> 00:21:40,000
Speaker 5: gas plants.

463
00:21:40,000 --> 00:21:41,920
Speaker 11: We need to build a twenty GigE out of gas

464
00:21:41,960 --> 00:21:44,679
Speaker 11: for appartments and renewables exactly of strategy.

465
00:21:44,880 --> 00:21:45,760
Speaker 5: So there is for us.

466
00:21:45,760 --> 00:21:49,080
Speaker 11: We have invested in the last two years strongly in

467
00:21:49,119 --> 00:21:52,560
Speaker 11: Germany to build what we call our integrated power business.

468
00:21:52,920 --> 00:21:55,680
Speaker 11: So I think, yeah, Germany, and it's true as well,

469
00:21:55,720 --> 00:21:58,240
Speaker 11: but we need to gain the kis. We need to

470
00:21:58,280 --> 00:22:01,800
Speaker 11: produce more weapons in Europe for sure, in order to

471
00:22:02,080 --> 00:22:05,560
Speaker 11: be more independent somewhere. And because the message from the

472
00:22:05,640 --> 00:22:09,000
Speaker 11: US is clear we need to take ourselves of future

473
00:22:09,119 --> 00:22:12,040
Speaker 11: in our hands. So that's good for globally, for the economy,

474
00:22:12,040 --> 00:22:12,720
Speaker 11: in the industry.

475
00:22:12,880 --> 00:22:14,720
Speaker 9: So what's on your M and A list right now?

476
00:22:15,840 --> 00:22:18,280
Speaker 8: Yeah, you're going to buy something for that's a opportunity.

477
00:22:18,480 --> 00:22:20,880
Speaker 11: First, we have a huge organic growth. I have five

478
00:22:20,880 --> 00:22:23,399
Speaker 11: percent in front of me for the next five years now.

479
00:22:23,480 --> 00:22:24,440
Speaker 5: We have been clear that we.

480
00:22:24,400 --> 00:22:29,000
Speaker 11: Want to in particular to build a larger gas business

481
00:22:29,040 --> 00:22:32,320
Speaker 11: production business in the US. So we made so many

482
00:22:32,400 --> 00:22:35,240
Speaker 11: ideas last year. Maybe there is more to come because

483
00:22:35,240 --> 00:22:38,359
Speaker 11: I need to increase my gas production in the US.

484
00:22:38,400 --> 00:22:40,520
Speaker 9: But boltons or bigger deals.

485
00:22:40,320 --> 00:22:41,240
Speaker 5: Boltons is fine.

486
00:22:41,240 --> 00:22:44,840
Speaker 11: It depends opportunities, some matter of to make good m

487
00:22:44,880 --> 00:22:45,160
Speaker 11: n as.

488
00:22:45,200 --> 00:22:46,600
Speaker 5: It's good to become a cyclical.

489
00:22:46,680 --> 00:22:51,440
Speaker 11: So I will not announce that today.

490
00:22:52,240 --> 00:22:54,840
Speaker 5: I need to, Okay.

491
00:22:54,600 --> 00:22:55,000
Speaker 9: I get that.

492
00:22:55,840 --> 00:22:57,280
Speaker 8: Is this also a good time to get out of

493
00:22:57,359 --> 00:23:00,960
Speaker 8: certain assets that aren't working for you, say Ista, maybe

494
00:23:00,960 --> 00:23:01,520
Speaker 8: on the list.

495
00:23:02,040 --> 00:23:04,399
Speaker 11: Yeah, we last year one of our piers has done

496
00:23:04,440 --> 00:23:06,280
Speaker 11: a very good deal. You know Argentina. We have the

497
00:23:06,280 --> 00:23:08,120
Speaker 11: strongest gas producer in Argentina.

498
00:23:08,440 --> 00:23:09,760
Speaker 5: We have also some share roll.

499
00:23:10,240 --> 00:23:12,080
Speaker 11: We are not very keen to develop the share all

500
00:23:12,600 --> 00:23:15,240
Speaker 11: for different reason. And so last year one of our

501
00:23:15,240 --> 00:23:17,520
Speaker 11: piers has done a very good MNA. So yes, I'm

502
00:23:17,560 --> 00:23:20,240
Speaker 11: ready to at the same price one of our coolies.

503
00:23:20,280 --> 00:23:23,080
Speaker 11: I'm ready to divest my share old production license in

504
00:23:23,160 --> 00:23:24,960
Speaker 11: Argentina as part of the divestment.

505
00:23:25,280 --> 00:23:27,080
Speaker 3: But you know, we have been getting close to that, and.

506
00:23:27,160 --> 00:23:32,719
Speaker 5: I don't know we have processes. Well, it is good news.

507
00:23:33,240 --> 00:23:35,640
Speaker 8: All right, let's go to one other area that mona

508
00:23:35,680 --> 00:23:38,240
Speaker 8: make some news. So Mozambique, El gie. I know you've

509
00:23:38,240 --> 00:23:40,920
Speaker 8: been working very very hard on that project. To get

510
00:23:40,920 --> 00:23:44,520
Speaker 8: it restarted. You need approval reapproval from the US Import

511
00:23:44,520 --> 00:23:46,840
Speaker 8: Export Bank for a four point seven billion dollar loan.

512
00:23:47,080 --> 00:23:47,880
Speaker 9: How's that gone?

513
00:23:48,040 --> 00:23:50,200
Speaker 11: I think it's for US In first, this was approved

514
00:23:50,200 --> 00:23:52,920
Speaker 11: on the Trump one administration. So it's a contract which

515
00:23:52,920 --> 00:23:55,080
Speaker 11: has been signed. I just would like to remember, and

516
00:23:55,119 --> 00:23:57,919
Speaker 11: I believe in a rule of roof. Fundamentally the contract exists.

517
00:23:57,960 --> 00:24:00,480
Speaker 11: What happens is that in twenty one were to declare

518
00:24:00,520 --> 00:24:02,840
Speaker 11: force measure because there were some security events, we had

519
00:24:02,840 --> 00:24:05,000
Speaker 11: to stop the and so it's just a matter to

520
00:24:05,040 --> 00:24:07,639
Speaker 11: amend this contract to put a new completion date in

521
00:24:07,720 --> 00:24:10,879
Speaker 11: twenty thirty to reflect the fact that between twenty one

522
00:24:10,920 --> 00:24:13,040
Speaker 11: and twenty four we are forced to stop. That's what

523
00:24:13,080 --> 00:24:15,000
Speaker 11: we want be amendment. So it's not a big amendment,

524
00:24:16,560 --> 00:24:18,679
Speaker 11: you know the debate. I think now you have a

525
00:24:18,840 --> 00:24:23,840
Speaker 11: functional USXEM. President Trump has decided to put in place

526
00:24:23,840 --> 00:24:24,440
Speaker 11: a new board.

527
00:24:24,560 --> 00:24:27,160
Speaker 5: So we'll say, but I'm optimistic.

528
00:24:26,640 --> 00:24:33,639
Speaker 8: But years, days, hours, month, Okay, I don't know Tondamentally,

529
00:24:33,680 --> 00:24:37,040
Speaker 8: I think honestly there is normal debate with this administration.

530
00:24:37,640 --> 00:24:40,280
Speaker 11: The mandate of USXIV is to be neutral in terms

531
00:24:40,280 --> 00:24:44,200
Speaker 11: of support. In fact, why USXM is supporting us because

532
00:24:44,320 --> 00:24:47,280
Speaker 11: most of the contracts have been awarded to US companies,

533
00:24:47,359 --> 00:24:52,280
Speaker 11: US contractors. This project represents sixteen thousand jobs in the US.

534
00:24:52,320 --> 00:24:55,280
Speaker 11: That's why USXM is supporting it. We inevited the project

535
00:24:55,320 --> 00:24:57,800
Speaker 11: from Manadako. We are not a US company, but we

536
00:24:57,920 --> 00:25:02,320
Speaker 11: kept all the US contractors and that is the driver behind.

537
00:25:02,040 --> 00:25:03,440
Speaker 5: Which supports USXEM.

538
00:25:03,440 --> 00:25:06,159
Speaker 11: It's not total energy, it's fundamentally the support of U

539
00:25:06,240 --> 00:25:09,679
Speaker 11: SXEM is an export credit supporting the fact. But we

540
00:25:09,760 --> 00:25:13,280
Speaker 11: have awarded more than forty percent of the contracts to

541
00:25:13,400 --> 00:25:17,640
Speaker 11: US contractors, which are all asking me please resetart because

542
00:25:17,680 --> 00:25:19,639
Speaker 11: we have the jobs, and they have written to all

543
00:25:19,720 --> 00:25:22,639
Speaker 11: their congressmen, to all their this is for what, But

544
00:25:22,720 --> 00:25:25,199
Speaker 11: this is the reason why we can be also pro

545
00:25:25,440 --> 00:25:29,520
Speaker 11: US industry when we invest abroad, when we give jobs

546
00:25:29,520 --> 00:25:32,280
Speaker 11: to US companies. And this is the reason why I

547
00:25:32,320 --> 00:25:36,120
Speaker 11: think USXEM will honor his word for simple reason. It's

548
00:25:36,119 --> 00:25:38,919
Speaker 11: not because it's energy, it's just because it's US jobs.

549
00:25:39,200 --> 00:25:40,320
Speaker 5: That's the fundamental reasons.

550
00:25:40,320 --> 00:25:42,240
Speaker 9: That's a good pat to You're one hundred percent component

551
00:25:42,240 --> 00:25:43,240
Speaker 9: that money is going to come your way.

552
00:25:43,280 --> 00:25:48,199
Speaker 8: Yeah, pernfident Patrick. It's a real pleasure. I love speaking

553
00:25:48,200 --> 00:25:49,879
Speaker 8: with you. Thank you so very much for joining me.

554
00:25:49,880 --> 00:25:52,159
Speaker 8: I really appreciate a package pre and a chairman and

555
00:25:52,160 --> 00:25:53,399
Speaker 8: CEO of to Hotel Energy.

556
00:25:53,680 --> 00:25:55,200
Speaker 2: I'll sign it back to you, all right, Alex, thank

557
00:25:55,200 --> 00:25:55,560
Speaker 2: you so much.

558
00:25:55,560 --> 00:25:56,280
Speaker 3: We appreciate that.

559
00:25:56,280 --> 00:25:59,480
Speaker 2: That's Bloomberg Intelligence co host Alex Steel speaking with Total

560
00:25:59,560 --> 00:26:04,040
Speaker 2: Energyopatrick P and A on the global oil and gas

561
00:26:04,080 --> 00:26:06,000
Speaker 2: business down there in Houston, Texas.

562
00:26:07,680 --> 00:26:11,359
Speaker 1: You're listening to the Bloomberg Intelligence podcast. Catch us live

563
00:26:11,440 --> 00:26:14,560
Speaker 1: weekdays at ten am Eastern on Apple, Cocklay and Android

564
00:26:14,560 --> 00:26:17,840
Speaker 1: Auto with the Bloomberg Business app. Listen on demand wherever

565
00:26:17,920 --> 00:26:21,040
Speaker 1: you get your podcasts, or watch us live on YouTube.

566
00:26:22,000 --> 00:26:25,920
Speaker 2: Well, yesterday Toby Rice, CEO of e QT, spoke with

567
00:26:25,960 --> 00:26:29,520
Speaker 2: Boomberg Intelligence co host Alex Steele about the impact of

568
00:26:29,680 --> 00:26:33,640
Speaker 2: tariffs on energy investments. And it's Sarah Week in Houston.

569
00:26:33,720 --> 00:26:34,399
Speaker 5: Let's take a listen.

570
00:26:34,960 --> 00:26:38,639
Speaker 12: So for our business, surprisingly from a cost perspective, doesn't

571
00:26:38,640 --> 00:26:41,159
Speaker 12: have a material impact on our costs. But when you

572
00:26:41,160 --> 00:26:42,840
Speaker 12: step back and you look at energy as a whole.

573
00:26:43,560 --> 00:26:46,320
Speaker 12: Tariffs on a country like I say, Canada would actually

574
00:26:46,359 --> 00:26:50,760
Speaker 12: be bullish on natural gas prices here domestically. So that's

575
00:26:50,800 --> 00:26:54,359
Speaker 12: a big why gus more demand because of the fact

576
00:26:54,400 --> 00:26:57,400
Speaker 12: that Canada imports so much gas into the United States,

577
00:26:57,400 --> 00:27:00,320
Speaker 12: which would have terrifs which would lift lift the price

578
00:27:00,520 --> 00:27:04,080
Speaker 12: of natural gas here domestically, but from a minor amount.

579
00:27:04,119 --> 00:27:05,919
Speaker 12: I mean, if you think about it, gas prices are

580
00:27:05,920 --> 00:27:09,320
Speaker 12: four dollars and fifty cents. That's the energy equivalent of

581
00:27:09,400 --> 00:27:11,960
Speaker 12: call it thirty dollars a barrel. So I mean, natural

582
00:27:12,000 --> 00:27:14,639
Speaker 12: gas still is the most cost effective energy solution, but

583
00:27:14,960 --> 00:27:17,920
Speaker 12: tariffs are certainly a big theme of the conversations we're

584
00:27:17,920 --> 00:27:18,360
Speaker 12: hearing this.

585
00:27:18,320 --> 00:27:19,600
Speaker 9: Week with some o real services.

586
00:27:19,600 --> 00:27:22,520
Speaker 8: Say, look, we're looking at shale, you're gonna drill a well,

587
00:27:22,560 --> 00:27:25,120
Speaker 8: like it could really increase those costs to actually get

588
00:27:25,119 --> 00:27:27,320
Speaker 8: more oiler get more gas out of the ground.

589
00:27:27,400 --> 00:27:31,359
Speaker 12: True for you guys, absolutely, that definitely is an issue

590
00:27:31,359 --> 00:27:33,240
Speaker 12: for people that are playing the spot market for their

591
00:27:33,240 --> 00:27:36,040
Speaker 12: services and looking to gauge their activity levels based on

592
00:27:36,040 --> 00:27:37,200
Speaker 12: the current commodity price.

593
00:27:37,440 --> 00:27:38,960
Speaker 5: At EQT, we take a much.

594
00:27:38,760 --> 00:27:41,800
Speaker 12: More long term, steady focus on our activity levels and

595
00:27:42,080 --> 00:27:44,960
Speaker 12: because of the fact we've contracted so much of our services.

596
00:27:44,960 --> 00:27:47,680
Speaker 12: We've muted or we've insulated the impact of these tariffs,

597
00:27:47,680 --> 00:27:49,720
Speaker 12: but they are going to be felt by others playing

598
00:27:49,720 --> 00:27:50,359
Speaker 12: the spot market.

599
00:27:50,640 --> 00:27:53,600
Speaker 8: Unleashing American energy is a cornerstone of the Trump administration.

600
00:27:53,960 --> 00:27:56,560
Speaker 8: You have been saying that for a very long time. Also,

601
00:27:56,880 --> 00:27:59,359
Speaker 8: when we talk about unleashing, do you interpret that to

602
00:27:59,440 --> 00:28:01,800
Speaker 8: me unleashing oil or unleashing gas?

603
00:28:02,320 --> 00:28:04,480
Speaker 5: All of it at all American energy?

604
00:28:04,520 --> 00:28:06,120
Speaker 12: I mean, Alex, we are in a place right now

605
00:28:06,160 --> 00:28:09,960
Speaker 12: in this country where we are producing record amounts of energy.

606
00:28:10,000 --> 00:28:11,720
Speaker 12: If you added up the oil in the gas that's

607
00:28:11,720 --> 00:28:15,080
Speaker 12: being produced today, it's over thirty million barrels a day

608
00:28:15,119 --> 00:28:15,719
Speaker 12: of energy.

609
00:28:15,840 --> 00:28:19,320
Speaker 5: OK. But here's the challenge. People are scratching their.

610
00:28:19,240 --> 00:28:22,800
Speaker 12: Heads at home because Americans have seen their energy bills

611
00:28:23,119 --> 00:28:26,320
Speaker 12: increase over thirty five percent. How can we live in

612
00:28:26,359 --> 00:28:30,840
Speaker 12: a world where energy production is up but prices are

613
00:28:30,880 --> 00:28:35,560
Speaker 12: still still going up. The answer is quite simply, because

614
00:28:35,600 --> 00:28:38,840
Speaker 12: political force has overwhelmed market forces, and that's made it

615
00:28:38,920 --> 00:28:40,480
Speaker 12: incredibly difficult for the.

616
00:28:40,360 --> 00:28:42,200
Speaker 3: Market forces to work.

617
00:28:42,360 --> 00:28:45,080
Speaker 12: And that means we see big disconnects between where energy

618
00:28:45,120 --> 00:28:47,880
Speaker 12: is produced and where it's consumed. I'm selling Gas and

619
00:28:47,880 --> 00:28:51,560
Speaker 12: Appalachia today for four dollars, and in Boston they're paying fifteen.

620
00:28:52,400 --> 00:28:54,960
Speaker 12: There's an incredible opportunity for us to get ourselves out

621
00:28:55,000 --> 00:28:58,440
Speaker 12: of this. It's not about drill, baby drill, It's about

622
00:28:58,440 --> 00:29:01,120
Speaker 12: build baby build. That needs to be the mantra that's

623
00:29:01,120 --> 00:29:04,360
Speaker 12: going to unleash America energy and unleash energy dominance here

624
00:29:04,360 --> 00:29:06,240
Speaker 12: in this country, which is going to lower energy bills

625
00:29:06,280 --> 00:29:08,640
Speaker 12: for American and strengthen our energy security.

626
00:29:08,680 --> 00:29:10,280
Speaker 9: And by built, you're basically goo pipelines.

627
00:29:10,320 --> 00:29:12,040
Speaker 8: Like the reason why people in Boston are paying fifteen

628
00:29:12,040 --> 00:29:13,880
Speaker 8: bucks is because there's no pipeline that's going to get

629
00:29:14,040 --> 00:29:17,000
Speaker 8: a gas efficiently there. Do you think we're going to

630
00:29:17,040 --> 00:29:20,280
Speaker 8: get East Coast pipeline? Would you bet money on that?

631
00:29:20,680 --> 00:29:23,080
Speaker 12: Well, you know, you look at the headlines last couple

632
00:29:23,080 --> 00:29:26,440
Speaker 12: of weeks. The Trump administration has already thrown support behind

633
00:29:26,480 --> 00:29:29,760
Speaker 12: the Constitution pipeline, which could bring up to a BCF

634
00:29:29,880 --> 00:29:33,400
Speaker 12: day of natural gas. That was one of the travesties

635
00:29:34,000 --> 00:29:35,800
Speaker 12: that has happened in the past, was one of the

636
00:29:35,880 --> 00:29:38,960
Speaker 12: pipelines those blocked cancels are opposed. So for the fact

637
00:29:38,960 --> 00:29:42,040
Speaker 12: that this administration is putting focus on that, I'm optimistic,

638
00:29:42,200 --> 00:29:45,880
Speaker 12: but it's not just going to be executive order or

639
00:29:46,000 --> 00:29:48,040
Speaker 12: political support that's going to make this happen. We need

640
00:29:48,080 --> 00:29:52,280
Speaker 12: to see real permit reform in addition to legislative reform

641
00:29:52,600 --> 00:29:56,160
Speaker 12: to give our pipeliners the confidence to get these projects built.

642
00:29:56,200 --> 00:29:58,280
Speaker 12: Because the market is screaming in four.

643
00:29:58,200 --> 00:30:00,920
Speaker 9: Years, I get built in four years. That's a tough

644
00:30:01,240 --> 00:30:02,040
Speaker 9: that's a tough road.

645
00:30:02,240 --> 00:30:02,440
Speaker 3: Yeah.

646
00:30:02,480 --> 00:30:08,000
Speaker 12: Hopefully the legislation reform, the perperform that takes place, will

647
00:30:08,000 --> 00:30:12,640
Speaker 12: include some some litigation reform that will prevent people from

648
00:30:12,640 --> 00:30:16,719
Speaker 12: actually going back and trying to vacate permits for assets

649
00:30:16,720 --> 00:30:18,600
Speaker 12: that are already built. I mean, this is the type

650
00:30:18,600 --> 00:30:21,120
Speaker 12: of situation that that's happened in this country. Imagine a

651
00:30:21,160 --> 00:30:25,360
Speaker 12: pipeline company getting their permits, starting construction and then having

652
00:30:25,440 --> 00:30:28,720
Speaker 12: their permits yanked away from them. Yeah, okay, that's exactly

653
00:30:28,760 --> 00:30:31,080
Speaker 12: what happened with Mountain Valley Pipeline, one of the most

654
00:30:31,080 --> 00:30:34,600
Speaker 12: controversial pipelines in this country. And that's an asset that

655
00:30:34,640 --> 00:30:38,560
Speaker 12: eqt owns today. And for people that maybe say, hey,

656
00:30:38,640 --> 00:30:41,000
Speaker 12: we don't need these pipelines, well, let me tell you

657
00:30:41,040 --> 00:30:44,080
Speaker 12: what's happened on that pipeline this last winter. That pipeline

658
00:30:44,120 --> 00:30:46,440
Speaker 12: that people have said is not necessary for this energy

659
00:30:46,480 --> 00:30:49,600
Speaker 12: for this country's energy security, have flowed at max capacity

660
00:30:49,600 --> 00:30:52,320
Speaker 12: over to bcf a day. And here's a shocker, the

661
00:30:52,360 --> 00:30:54,720
Speaker 12: price at the tail pipe of that pipeline reached over

662
00:30:54,800 --> 00:30:59,040
Speaker 12: thirty five dollars per mcf. What would have happened if

663
00:30:59,040 --> 00:31:01,480
Speaker 12: that pipeline was not built. Clearly there's a sign that

664
00:31:01,520 --> 00:31:03,320
Speaker 12: we need to get more infrastructure built. And if you

665
00:31:03,320 --> 00:31:06,120
Speaker 12: think it's hard to get a pipeline built, understand this.

666
00:31:06,400 --> 00:31:08,960
Speaker 12: It's hard to get a transmission line built. It's hard

667
00:31:08,960 --> 00:31:10,680
Speaker 12: to get an oil and gas location built. It's hard

668
00:31:10,720 --> 00:31:13,440
Speaker 12: to get a five thousand acre solar facility or wind farm.

669
00:31:13,640 --> 00:31:16,000
Speaker 12: I don't care what type of energy you're building. It's

670
00:31:16,000 --> 00:31:18,360
Speaker 12: gotten incredibly difficult to get things built in this country.

671
00:31:18,400 --> 00:31:20,160
Speaker 12: That's why to get out of this, we need to

672
00:31:20,200 --> 00:31:23,200
Speaker 12: get back to letting market forces rule and build baby built.

673
00:31:23,280 --> 00:31:25,200
Speaker 9: Okay, So that's the pitch. I get that.

674
00:31:25,640 --> 00:31:27,160
Speaker 8: The other side of it is not only to get

675
00:31:27,200 --> 00:31:29,120
Speaker 8: say gas to the East Coast, but also to get

676
00:31:29,160 --> 00:31:31,520
Speaker 8: our gas out of the US and export it and

677
00:31:31,600 --> 00:31:33,600
Speaker 8: form of lag. You're going to need a pipeline from

678
00:31:33,600 --> 00:31:35,040
Speaker 8: the Haynesville to get to the Gulf Coast.

679
00:31:35,080 --> 00:31:38,120
Speaker 12: As it happen, there is going to be some more

680
00:31:38,120 --> 00:31:41,680
Speaker 12: opportunities that people are looking at leveraging existing assets.

681
00:31:41,280 --> 00:31:41,760
Speaker 5: That we have.

682
00:31:42,360 --> 00:31:45,320
Speaker 12: It's one of the questions that I think a lot

683
00:31:45,360 --> 00:31:48,280
Speaker 12: of pipeline operator looking at, is the right of ways

684
00:31:48,280 --> 00:31:51,960
Speaker 12: that we've already established. What is the extra capacity we

685
00:31:52,040 --> 00:31:54,800
Speaker 12: get put inside those right aways? You know, the environmental

686
00:31:54,800 --> 00:31:58,840
Speaker 12: disturbance from creating a right away can be muted when

687
00:31:58,840 --> 00:32:01,120
Speaker 12: you're using existing core doors that have already been created.

688
00:32:01,200 --> 00:32:03,920
Speaker 12: That can be an opportunity. But the theme isn't just

689
00:32:05,160 --> 00:32:06,720
Speaker 12: the three themes I look at it when it comes

690
00:32:06,760 --> 00:32:10,200
Speaker 12: to natural gas. One, continue to evolve our energy systems

691
00:32:10,400 --> 00:32:15,200
Speaker 12: using natural gas to replace coal. Two is this LNG

692
00:32:15,400 --> 00:32:17,760
Speaker 12: theme that's taking place. And the third big theme that's

693
00:32:17,800 --> 00:32:21,720
Speaker 12: taking place is with AI. So there's a really amazing

694
00:32:21,800 --> 00:32:24,120
Speaker 12: opportunity for natural gas in the future.

695
00:32:24,160 --> 00:32:27,520
Speaker 8: Well, currently you can't benefit off of the LNG export

696
00:32:27,640 --> 00:32:29,480
Speaker 8: trade right now, right because you need your gas to

697
00:32:29,480 --> 00:32:29,960
Speaker 8: get there.

698
00:32:30,040 --> 00:32:34,600
Speaker 12: Well is America's largest natural gas or Big America's natural

699
00:32:34,600 --> 00:32:37,680
Speaker 12: gas champion EQT. We sell our gas all over the

700
00:32:37,720 --> 00:32:40,600
Speaker 12: country and so to the Gulf Coast specifically, we move

701
00:32:40,640 --> 00:32:43,000
Speaker 12: about one point three bcf a day of our product

702
00:32:43,040 --> 00:32:45,400
Speaker 12: down to the Gulf Coast. About eight hundred million a

703
00:32:45,480 --> 00:32:48,320
Speaker 12: day of that is going to the Energy Corridor. So

704
00:32:48,360 --> 00:32:51,680
Speaker 12: we do have access to that market, and we are

705
00:32:51,800 --> 00:32:56,520
Speaker 12: excited about the America's ability to continue to supply LNG

706
00:32:56,760 --> 00:32:59,120
Speaker 12: to the world and help them lower their global emissions

707
00:32:59,160 --> 00:33:00,760
Speaker 12: and also provide energy security.

708
00:33:00,760 --> 00:33:02,680
Speaker 8: At the same time, you also brought up AAI and

709
00:33:02,720 --> 00:33:04,720
Speaker 8: power demand. How are you guys going to play in

710
00:33:04,720 --> 00:33:06,840
Speaker 8: that space? What are conversations like? It feels like it's

711
00:33:06,840 --> 00:33:10,440
Speaker 8: not just independent power players, it's now regulated utilities. It's

712
00:33:10,480 --> 00:33:12,880
Speaker 8: also energy companies that are now trying to become power

713
00:33:12,920 --> 00:33:14,840
Speaker 8: companies in essence, what are your conbos like?

714
00:33:15,080 --> 00:33:17,960
Speaker 12: So AI is the thing that everybody's talking about. Whether

715
00:33:17,960 --> 00:33:20,320
Speaker 12: you're at an energy conference or any conference, people are

716
00:33:20,360 --> 00:33:20,960
Speaker 12: talking about AI.

717
00:33:21,080 --> 00:33:22,560
Speaker 5: Just remember it's only.

718
00:33:22,360 --> 00:33:25,200
Speaker 12: Been twelve months since people really started saying this is

719
00:33:25,240 --> 00:33:27,520
Speaker 12: going to be a big deal. So in less than

720
00:33:27,560 --> 00:33:30,960
Speaker 12: twelve months we've seen the momentum for AI only continue

721
00:33:30,960 --> 00:33:34,160
Speaker 12: to strengthen. How big could this be is there's a

722
00:33:34,160 --> 00:33:36,640
Speaker 12: lot of wide ranges. Some people are saying fifty gigawats

723
00:33:37,000 --> 00:33:41,200
Speaker 12: or seventy five gigawatts. That's people are basically saying between

724
00:33:41,240 --> 00:33:44,800
Speaker 12: ten or fifteen New York cities power to feed in

725
00:33:44,800 --> 00:33:46,960
Speaker 12: New York cities. This is a really big deal. We're

726
00:33:47,000 --> 00:33:50,480
Speaker 12: seeing some technology investors come into EQT that have estimates

727
00:33:50,480 --> 00:33:52,600
Speaker 12: that we're going to see one hundred and seventy five

728
00:33:52,640 --> 00:33:54,880
Speaker 12: gigawatts of power demand when you do the build up

729
00:33:54,880 --> 00:33:55,640
Speaker 12: on how many chips?

730
00:33:55,640 --> 00:33:57,240
Speaker 9: So, but how do you play in that right now?

731
00:33:57,480 --> 00:33:59,920
Speaker 12: Well, right now EQT, about a third of our now

732
00:34:00,280 --> 00:34:03,640
Speaker 12: gas in this country is used for power generation. So

733
00:34:03,800 --> 00:34:08,480
Speaker 12: we've consistently seen year over year higher and higher natural

734
00:34:08,480 --> 00:34:11,879
Speaker 12: gas utilization to meet power. So when you're talking about AI,

735
00:34:11,920 --> 00:34:14,520
Speaker 12: you're talking about power, you're talking about natural gas. The

736
00:34:14,560 --> 00:34:18,520
Speaker 12: evolution that's taking place over the last twelve months, people

737
00:34:18,520 --> 00:34:20,759
Speaker 12: have questioned, say, well, how will natural gas.

738
00:34:20,880 --> 00:34:22,879
Speaker 5: Meet this power demand? Will they play a role?

739
00:34:23,080 --> 00:34:25,560
Speaker 12: Well, twelve months ago people were thinking they were going

740
00:34:25,600 --> 00:34:27,480
Speaker 12: to be able to meet that security or meet that.

741
00:34:27,440 --> 00:34:30,200
Speaker 5: Demand with renewables. We've moved past that.

742
00:34:30,440 --> 00:34:34,200
Speaker 12: Then they looked to nuclear and realize it's hard to

743
00:34:34,200 --> 00:34:36,120
Speaker 12: get nuclear built, it's probably going to meet the time

744
00:34:36,160 --> 00:34:38,920
Speaker 12: ambitions that they have, and so now they've moved to

745
00:34:39,000 --> 00:34:42,200
Speaker 12: natural gas, which is the most cost effective most reliable

746
00:34:42,239 --> 00:34:46,799
Speaker 12: form of power generation and most importantly, it's the fastest

747
00:34:47,200 --> 00:34:49,520
Speaker 12: speed to market, and we think those attributes are going

748
00:34:49,560 --> 00:34:51,840
Speaker 12: to allow natural gas to lie and share of the

749
00:34:51,840 --> 00:34:52,799
Speaker 12: power gen that's coming.

750
00:34:53,560 --> 00:34:53,880
Speaker 5: All right.

751
00:34:53,920 --> 00:34:56,719
Speaker 2: That was Bloomberg Intelligence co host Alex Steele speaking with

752
00:34:56,760 --> 00:35:01,359
Speaker 2: Toby Rice, the CEO of EQT, at Sarah Week down

753
00:35:01,440 --> 00:35:06,520
Speaker 2: in Houston, and my takeaway was not much so much build.

754
00:35:06,760 --> 00:35:11,200
Speaker 2: I mean, drill, baby, drill, but build baby build. So

755
00:35:11,239 --> 00:35:14,000
Speaker 2: that's kind of a takeaway there. We need more pipelines

756
00:35:14,239 --> 00:35:17,279
Speaker 2: to get the energy that we do produce to.

757
00:35:17,280 --> 00:35:18,040
Speaker 3: Where it needs to be.

758
00:35:18,480 --> 00:35:21,240
Speaker 7: It's actually great. I'm learning a lot just watching Alex's interview.

759
00:35:21,280 --> 00:35:23,360
Speaker 7: I mean, this is a space that's very important and

760
00:35:23,360 --> 00:35:25,640
Speaker 7: crucial to the economy, but I think doesn't really get

761
00:35:25,680 --> 00:35:27,520
Speaker 7: a lot of headlines, not like that.

762
00:35:27,480 --> 00:35:27,759
Speaker 9: S and P.

763
00:35:28,160 --> 00:35:29,440
Speaker 3: Yeah, exactly exactly.

764
00:35:29,440 --> 00:35:32,120
Speaker 2: So the energy business is front and center down there

765
00:35:32,160 --> 00:35:36,239
Speaker 2: in Houston, Texas. And again you know the EQT. They

766
00:35:36,280 --> 00:35:38,279
Speaker 2: have a lot of oil and gas coming out of

767
00:35:38,320 --> 00:35:41,960
Speaker 2: their shale areas, but the challenge in some markets is

768
00:35:42,000 --> 00:35:43,640
Speaker 2: to get it efficiently to where it needs to be,

769
00:35:43,680 --> 00:35:46,480
Speaker 2: whether it is via pipeline to the East coast or

770
00:35:46,640 --> 00:35:50,319
Speaker 2: down to the Gulf for export LNG market. So again,

771
00:35:50,400 --> 00:35:52,200
Speaker 2: great stuff there.

772
00:35:52,760 --> 00:35:56,439
Speaker 1: You're listening to the Bloomberg Intelligence podcast. Catch us live

773
00:35:56,560 --> 00:35:59,879
Speaker 1: weekdays at ten am Eastern on Applecarclay, and Android Auto

774
00:36:00,080 --> 00:36:03,080
Speaker 1: with the Bloomberg Business App. Listen on demand wherever you

775
00:36:03,120 --> 00:36:06,120
Speaker 1: get your podcasts, or watch us live on YouTube.

776
00:36:06,520 --> 00:36:09,360
Speaker 2: All right, let's head down to Houston once again. Bloomber

777
00:36:09,360 --> 00:36:13,399
Speaker 2: Intelligence co host Alex Steele speaks with Williams, CEO of

778
00:36:13,480 --> 00:36:14,560
Speaker 2: Alan Armstrong.

779
00:36:15,200 --> 00:36:19,080
Speaker 9: Take it away, all right, thanks so much, Paul.

780
00:36:19,120 --> 00:36:21,719
Speaker 8: That's right, I'm here with Allan Armstrong, CEO of Williams.

781
00:36:21,719 --> 00:36:24,600
Speaker 8: Williams is one of the largest natural gas infrastructure companies

782
00:36:24,880 --> 00:36:26,480
Speaker 8: in the United States.

783
00:36:27,000 --> 00:36:28,600
Speaker 9: Great to see you, Thank you for joining me.

784
00:36:28,840 --> 00:36:29,400
Speaker 3: Glad to be here.

785
00:36:29,480 --> 00:36:29,799
Speaker 5: Thank so.

786
00:36:29,840 --> 00:36:32,360
Speaker 8: The news of the last hour is that President Trump

787
00:36:32,440 --> 00:36:35,520
Speaker 8: is increasing tariffs on steel aluminum imports from Canada to

788
00:36:35,520 --> 00:36:36,200
Speaker 8: fifty percent.

789
00:36:36,440 --> 00:36:37,880
Speaker 9: What does that do to your business?

790
00:36:38,520 --> 00:36:40,960
Speaker 13: Well, you know, we we have a number of suppliers

791
00:36:41,120 --> 00:36:46,160
Speaker 13: the large diameter pipeline business, a lot of European suppliers,

792
00:36:46,280 --> 00:36:49,480
Speaker 13: Korean suppliers for that space as well, so you know

793
00:36:49,560 --> 00:36:53,960
Speaker 13: the market will have to react to that certainly.

794
00:36:54,000 --> 00:36:54,320
Speaker 8: Though.

795
00:36:54,600 --> 00:36:54,920
Speaker 3: You know.

796
00:36:56,719 --> 00:36:59,520
Speaker 13: Something that companies will have to react to and respond

797
00:36:59,560 --> 00:37:01,560
Speaker 13: to in terms to the supply chain. It's always been

798
00:37:01,560 --> 00:37:04,960
Speaker 13: a great relationship with Canada, you know, as a supplier,

799
00:37:05,040 --> 00:37:07,840
Speaker 13: particularly in the still into the energy business and the

800
00:37:07,920 --> 00:37:11,319
Speaker 13: large diameter pipeline. So a lot of people don't appreciate,

801
00:37:11,360 --> 00:37:14,920
Speaker 13: you know the fact that the still pipe making process

802
00:37:15,000 --> 00:37:19,280
Speaker 13: involves making the plate still and then converting that into

803
00:37:19,440 --> 00:37:20,799
Speaker 13: large diameter pipeline.

804
00:37:20,880 --> 00:37:24,759
Speaker 3: A lot of capacity here in the US for smaller diameter.

805
00:37:25,200 --> 00:37:28,319
Speaker 13: Still products like is used in the drilling and uh

806
00:37:28,640 --> 00:37:30,880
Speaker 13: in in the production area, but when you get the

807
00:37:30,960 --> 00:37:35,640
Speaker 13: large diameter pipeline, pretty limited capacity here in the universe.

808
00:37:35,960 --> 00:37:37,319
Speaker 9: Capacity to be built would be.

809
00:37:37,280 --> 00:37:37,920
Speaker 3: Quite the build.

810
00:37:38,080 --> 00:37:41,040
Speaker 13: Yeah right, it takes a while to to gear that up,

811
00:37:41,080 --> 00:37:43,080
Speaker 13: and a lot of those mills are already you know,

812
00:37:43,120 --> 00:37:46,000
Speaker 13: booked out pretty far so so but the good news is,

813
00:37:46,040 --> 00:37:48,480
Speaker 13: you know a lot of really good suppliers in Europe

814
00:37:48,560 --> 00:37:50,719
Speaker 13: that we've always used, as Williams, those.

815
00:37:50,640 --> 00:37:51,440
Speaker 9: Traffs are coming up.

816
00:37:51,600 --> 00:37:56,160
Speaker 13: Yeah, so we'll see I mean, I think you know them.

817
00:37:55,640 --> 00:37:58,319
Speaker 8: Certainly laying pipe right now on the ground where this

818
00:37:58,360 --> 00:38:00,400
Speaker 8: would be an immediate issue, or.

819
00:38:00,360 --> 00:38:02,719
Speaker 13: We've already i mean anywhere we've got a project like

820
00:38:02,760 --> 00:38:05,640
Speaker 13: that we've already bought the steel well in advance, and

821
00:38:05,719 --> 00:38:08,200
Speaker 13: we line those up well in advance. So it's not

822
00:38:08,520 --> 00:38:11,080
Speaker 13: it's not a situation where we've got pipe coming across

823
00:38:11,080 --> 00:38:13,560
Speaker 13: the border and we're gonna have to figure out how

824
00:38:13,600 --> 00:38:16,960
Speaker 13: the tariffs work. So most of our pipe gets bought.

825
00:38:17,120 --> 00:38:20,960
Speaker 13: You know, we contract the business. Once it's contracted, then

826
00:38:21,000 --> 00:38:24,160
Speaker 13: we go by the pipe. And so you know, the

827
00:38:24,239 --> 00:38:26,800
Speaker 13: kind of ironic thing about that is because our permitting

828
00:38:26,880 --> 00:38:30,360
Speaker 13: processes take so long here in the US that we

829
00:38:30,440 --> 00:38:34,120
Speaker 13: have plenty of time, unfortunately, to go buy the pipe's

830
00:38:34,120 --> 00:38:35,440
Speaker 13: while we're working on the permitting.

831
00:38:35,680 --> 00:38:38,680
Speaker 8: So the theme here the administration originally it was sort

832
00:38:38,719 --> 00:38:41,040
Speaker 8: of a drill, Baby drilled, But the theme here among

833
00:38:41,160 --> 00:38:43,960
Speaker 8: CEOs is build baby built, which was is one hundred

834
00:38:43,960 --> 00:38:46,880
Speaker 8: percent up your ally and in your business, right, what

835
00:38:46,960 --> 00:38:48,760
Speaker 8: are the biggest hurdles, Like is it permitting?

836
00:38:49,000 --> 00:38:50,680
Speaker 9: Is it going to be sourcing? Is it labor?

837
00:38:51,000 --> 00:38:53,680
Speaker 13: Yeah, no, it's I mean it is first and foremost

838
00:38:53,719 --> 00:38:55,640
Speaker 13: permitting in the markets that we serve.

839
00:38:55,719 --> 00:38:56,880
Speaker 3: We serve some of the more.

840
00:38:56,760 --> 00:39:01,880
Speaker 13: Heavily populated areas like Seattle, Portland markets, New York, New Jersey.

841
00:39:03,000 --> 00:39:05,400
Speaker 3: Up provides supplies.

842
00:39:04,960 --> 00:39:07,560
Speaker 13: Up into New England and all along the eastern seaboard,

843
00:39:07,680 --> 00:39:12,320
Speaker 13: so areas that have a lot of data center load

844
00:39:12,440 --> 00:39:15,959
Speaker 13: right now going on, and as well as some big

845
00:39:16,000 --> 00:39:19,720
Speaker 13: projects here in the Gulf Coast area serving LNG market.

846
00:39:19,800 --> 00:39:21,200
Speaker 3: So we've got a forty.

847
00:39:20,960 --> 00:39:24,600
Speaker 13: Two inch pipeline right now that is being built from

848
00:39:24,719 --> 00:39:29,560
Speaker 13: the Hainesville down into the Tying into our Transco system,

849
00:39:29,920 --> 00:39:32,480
Speaker 13: large diameter pipeline. So we've got a lot of big

850
00:39:32,520 --> 00:39:36,319
Speaker 13: projects going on. But truly, when you get into the northeast,

851
00:39:36,520 --> 00:39:41,440
Speaker 13: the state's ability to block pipelines has been pretty chronic,

852
00:39:41,440 --> 00:39:44,200
Speaker 13: particularly in the New York City mark into New York City,

853
00:39:44,320 --> 00:39:48,319
Speaker 13: Like you know, Governor Cuomo block two of our big pipelines.

854
00:39:48,400 --> 00:39:51,920
Speaker 13: The outcome of that is ninety eight dollars natural gas

855
00:39:51,960 --> 00:39:54,640
Speaker 13: in the winter this year into New York City, which

856
00:39:54,680 --> 00:39:55,600
Speaker 13: is going to make.

857
00:39:55,680 --> 00:39:58,160
Speaker 9: The federal government fit. That said, if that's a state.

858
00:39:58,000 --> 00:40:04,080
Speaker 13: Issue, if the federal government, I would say that I

859
00:40:04,120 --> 00:40:06,520
Speaker 13: think what's going to fix that is people being really

860
00:40:06,640 --> 00:40:09,759
Speaker 13: upset about their utility bills. Yeah, and you know you

861
00:40:09,800 --> 00:40:13,000
Speaker 13: saw yeah, so you saw a couple of weeks ago

862
00:40:13,160 --> 00:40:18,520
Speaker 13: where where Governor Hokeel actually went out in supported the

863
00:40:18,560 --> 00:40:23,080
Speaker 13: Iroquoid pipeline expansion into Long Island, and she recognized that

864
00:40:23,160 --> 00:40:26,239
Speaker 13: it was because customers on the con ed system, while

865
00:40:26,280 --> 00:40:28,439
Speaker 13: they were providing low income.

866
00:40:28,120 --> 00:40:30,319
Speaker 3: Assistance for people's utility bills.

867
00:40:30,000 --> 00:40:33,040
Speaker 13: That was being completely eaten up by the fact that

868
00:40:33,160 --> 00:40:35,960
Speaker 13: the cost of gas into those markets. And it's not

869
00:40:36,120 --> 00:40:39,080
Speaker 13: because natural gas is high. Natural gas is, you know,

870
00:40:39,239 --> 00:40:41,839
Speaker 13: so much cheaper than crude oil or fuel oil. It's

871
00:40:41,920 --> 00:40:44,360
Speaker 13: used for heating there. But it's just the fact that

872
00:40:44,400 --> 00:40:46,040
Speaker 13: there's a bottleneck on infrastructure.

873
00:40:46,080 --> 00:40:48,000
Speaker 8: And then you add on to the fact that AI

874
00:40:48,160 --> 00:40:51,680
Speaker 8: data demand need for power is going to increase a lot.

875
00:40:51,719 --> 00:40:54,640
Speaker 8: You recently struck an agreement with an undisclosed investment grade

876
00:40:54,680 --> 00:40:57,920
Speaker 8: company to provide natural gas and power infrastructure at the

877
00:40:57,960 --> 00:41:01,640
Speaker 8: tenure purchase power agreement. The total cost of projects about

878
00:41:01,680 --> 00:41:02,840
Speaker 8: one point six billion dollars.

879
00:41:02,920 --> 00:41:04,880
Speaker 9: Can you tell us anything about who the customer is?

880
00:41:05,239 --> 00:41:07,840
Speaker 13: No, we cannot, so, and you know, the good news

881
00:41:07,920 --> 00:41:09,839
Speaker 13: is we have a customer that really wants to make

882
00:41:09,880 --> 00:41:13,640
Speaker 13: sure we get all the permitting done that we work

883
00:41:13,719 --> 00:41:17,359
Speaker 13: closely with the local authorities to get permitting done there.

884
00:41:17,400 --> 00:41:20,560
Speaker 13: So we very much respect that as much as we'd

885
00:41:20,640 --> 00:41:22,920
Speaker 13: like to, you know, talk about who that is.

886
00:41:22,960 --> 00:41:25,080
Speaker 8: Are you in other conversations that with other companies do

887
00:41:25,120 --> 00:41:25,720
Speaker 8: something similar.

888
00:41:26,160 --> 00:41:27,760
Speaker 9: How far long are those conversations.

889
00:41:27,880 --> 00:41:30,279
Speaker 13: I would say they're pretty advanced. And one thing we've

890
00:41:30,360 --> 00:41:35,320
Speaker 13: learned is that speed to market is so critical right now.

891
00:41:35,920 --> 00:41:39,280
Speaker 3: And what we learned in this last process was actually that.

892
00:41:39,160 --> 00:41:41,680
Speaker 13: These companies don't really want to have to go to

893
00:41:41,760 --> 00:41:45,319
Speaker 13: the gas company to buy their supply and to the

894
00:41:45,360 --> 00:41:48,680
Speaker 13: power generator to build the generation and then to manage that.

895
00:41:49,239 --> 00:41:51,440
Speaker 13: They just want somebody to show up with the power

896
00:41:51,640 --> 00:41:54,480
Speaker 13: and provide the gas supply to provide that power. And

897
00:41:54,520 --> 00:41:57,360
Speaker 13: that's obviously something that Williams is really well positioned.

898
00:41:57,440 --> 00:41:58,919
Speaker 8: We'll talk about that because I think of you guys

899
00:41:58,920 --> 00:42:01,520
Speaker 8: as like a pipe that like moves liquids, Like, what

900
00:42:01,560 --> 00:42:02,440
Speaker 8: are you to do with power?

901
00:42:02,600 --> 00:42:02,880
Speaker 3: Yeah?

902
00:42:03,040 --> 00:42:05,719
Speaker 13: So, you know, if you think about today, most of

903
00:42:05,760 --> 00:42:07,839
Speaker 13: the natural gas now in the US.

904
00:42:07,600 --> 00:42:09,600
Speaker 3: Is produced are sorry, most of the power.

905
00:42:09,400 --> 00:42:12,000
Speaker 13: Generation in the US today is coming off the backs

906
00:42:12,040 --> 00:42:14,880
Speaker 13: of natural gas. We've been in the generation we've been

907
00:42:14,920 --> 00:42:17,319
Speaker 13: in and out of the generation business for years. But

908
00:42:17,680 --> 00:42:20,440
Speaker 13: what people probably don't appreciate is those same gas for

909
00:42:20,520 --> 00:42:23,279
Speaker 13: our generators that are used to compress the gas and

910
00:42:23,320 --> 00:42:26,480
Speaker 13: move the gas on our pipelines are exactly the same

911
00:42:26,760 --> 00:42:30,040
Speaker 13: piece of equipment that's used to spend the generator to

912
00:42:30,120 --> 00:42:33,440
Speaker 13: provide power. So we're one of the largest buyers for

913
00:42:33,600 --> 00:42:39,360
Speaker 13: solar turbines, which is a Caterpillar arm and so we

914
00:42:39,800 --> 00:42:42,640
Speaker 13: have a great relationship with Caterpillar through that.

915
00:42:42,920 --> 00:42:44,640
Speaker 3: So we're able to get access.

916
00:42:44,320 --> 00:42:48,239
Speaker 13: To these, you know, very in demand power generation facilities

917
00:42:48,280 --> 00:42:49,640
Speaker 13: because of our relationship there.

918
00:42:49,920 --> 00:42:52,279
Speaker 8: So when you came to this deal and the conversations

919
00:42:52,280 --> 00:42:55,240
Speaker 8: that you're also in, what's it like to come to pricing?

920
00:42:56,640 --> 00:42:57,080
Speaker 9: Top part?

921
00:42:57,160 --> 00:43:00,520
Speaker 13: Is it you know, the main issue use While I

922
00:43:00,520 --> 00:43:03,279
Speaker 13: would say, you know, we were very transparent about what

923
00:43:03,360 --> 00:43:07,680
Speaker 13: our pricing expectations were, the main issue at the negotiating

924
00:43:07,719 --> 00:43:10,440
Speaker 13: table was speed and reliability.

925
00:43:10,960 --> 00:43:13,000
Speaker 9: Okay, so they're willing to pay a premium or does pay.

926
00:43:12,960 --> 00:43:14,000
Speaker 3: I wouldn't say it's a premium.

927
00:43:14,000 --> 00:43:17,000
Speaker 13: I would say it was it was, you know, better

928
00:43:17,040 --> 00:43:20,520
Speaker 13: than they could get off the grid, and certainly from

929
00:43:20,520 --> 00:43:22,920
Speaker 13: a timing standpoint, a lot better than they could get

930
00:43:22,960 --> 00:43:25,080
Speaker 13: off the grid. And so the grid in some of

931
00:43:25,080 --> 00:43:27,840
Speaker 13: these areas is so you know, one of the areas

932
00:43:27,840 --> 00:43:31,200
Speaker 13: that we serve a lot is the PGAM market Northeast,

933
00:43:31,440 --> 00:43:34,120
Speaker 13: and it takes you know, people are getting told it's

934
00:43:34,120 --> 00:43:36,600
Speaker 13: going to be eight years before they can get an interconnection,

935
00:43:36,680 --> 00:43:39,239
Speaker 13: get somebody to study the interconnection for some of these

936
00:43:39,360 --> 00:43:43,360
Speaker 13: large loads. So the market just has no appetite for

937
00:43:43,480 --> 00:43:46,319
Speaker 13: tangling with that kind of bureaucracy, and that's why we're

938
00:43:46,360 --> 00:43:48,520
Speaker 13: going to see more of this kind of behind the meter.

939
00:43:48,680 --> 00:43:50,480
Speaker 13: You know, people use this term behind the meter like

940
00:43:50,480 --> 00:43:53,840
Speaker 13: everybody would understand what that means. It simply means. It

941
00:43:53,920 --> 00:43:57,640
Speaker 13: simply means that these people are buying their own generation

942
00:43:57,840 --> 00:44:00,319
Speaker 13: facilities and they're not being connected into the grid.

943
00:44:00,640 --> 00:44:02,719
Speaker 8: Well, funnily enough, my next question was about behind the

944
00:44:02,760 --> 00:44:06,600
Speaker 8: meter projects. So what's your willingness to increase capex if

945
00:44:06,640 --> 00:44:10,160
Speaker 8: those kind of projects go through or those you have

946
00:44:10,160 --> 00:44:13,319
Speaker 8: potential like thirty behind the meter projects that could come through, Like,

947
00:44:13,360 --> 00:44:14,640
Speaker 8: what's your capex tolerance?

948
00:44:15,080 --> 00:44:17,680
Speaker 13: Yeah, I mean we have a lot of capacity right now.

949
00:44:17,719 --> 00:44:21,120
Speaker 13: The good news is that our gas pipeline business and

950
00:44:21,120 --> 00:44:24,719
Speaker 13: our gathering business has been producing very high returns for

951
00:44:24,920 --> 00:44:26,439
Speaker 13: so a lot of incremental cash flow.

952
00:44:26,719 --> 00:44:28,960
Speaker 3: So we have a lot of capital, a.

953
00:44:29,000 --> 00:44:33,360
Speaker 13: Lot of financial capacity right now to invest in this space. Obviously,

954
00:44:33,680 --> 00:44:36,200
Speaker 13: it's going to have to be you know, secured with

955
00:44:36,239 --> 00:44:40,240
Speaker 13: strong credits for us to take that on. But it's

956
00:44:40,400 --> 00:44:42,759
Speaker 13: it's we've got quite a bit of capacity right now.

957
00:44:45,040 --> 00:44:47,759
Speaker 13: Six months ago, our investors were asking us what are

958
00:44:47,800 --> 00:44:49,560
Speaker 13: you guys going to do with all this cash flow?

959
00:44:49,680 --> 00:44:52,200
Speaker 13: Like cash flow is piling up on you, what are

960
00:44:52,200 --> 00:44:53,440
Speaker 13: you going to do with it all? So this is

961
00:44:53,480 --> 00:44:56,080
Speaker 13: actually kind of a nice place for us to be

962
00:44:56,120 --> 00:44:58,600
Speaker 13: able to go, a nice investment for us to be.

963
00:44:58,560 --> 00:44:59,040
Speaker 3: Able to go to.

964
00:44:59,280 --> 00:45:01,839
Speaker 8: So you do have a cap cycle going there. There's

965
00:45:01,880 --> 00:45:04,279
Speaker 8: also potential M and A opportunities. There's been a lot

966
00:45:04,280 --> 00:45:07,280
Speaker 8: of action in this space, particularly as it surrounds power.

967
00:45:09,320 --> 00:45:10,759
Speaker 9: What would you be in the market for.

968
00:45:11,960 --> 00:45:15,719
Speaker 13: You know, we've been very successful at doing setting our

969
00:45:15,800 --> 00:45:19,640
Speaker 13: strategy each year with our board and so we kind

970
00:45:19,640 --> 00:45:22,880
Speaker 13: of predetermine, hey, here's the stuff we want to go after.

971
00:45:23,760 --> 00:45:26,680
Speaker 13: For instance, last year and the year before that, it

972
00:45:26,760 --> 00:45:29,960
Speaker 13: was going after the storage business because we knew with

973
00:45:30,120 --> 00:45:34,440
Speaker 13: both LNG loads and with intermittent power loads that the

974
00:45:34,680 --> 00:45:37,400
Speaker 13: amount of storage demand for storage.

975
00:45:37,120 --> 00:45:37,759
Speaker 3: Was going to go up.

976
00:45:37,960 --> 00:45:41,239
Speaker 13: We've seen the demand for gas over the last ten

977
00:45:41,320 --> 00:45:45,080
Speaker 13: years go up by forty seven percent and storage only

978
00:45:45,120 --> 00:45:47,920
Speaker 13: went up by two percent. So store new storage capacity

979
00:45:47,920 --> 00:45:51,200
Speaker 13: only went up by two percent. So we kind of

980
00:45:51,719 --> 00:45:54,560
Speaker 13: sit back, study and get real conviction at the board

981
00:45:54,640 --> 00:45:57,040
Speaker 13: level on this is what we're going to go after.

982
00:45:57,120 --> 00:45:59,080
Speaker 13: Until we see the signals change, we're going to go

983
00:45:59,120 --> 00:46:01,480
Speaker 13: after that. So we went out and we're the largest

984
00:46:02,120 --> 00:46:03,359
Speaker 13: owner of storage now in.

985
00:46:03,320 --> 00:46:04,360
Speaker 3: The Gulf Coast area.

986
00:46:04,520 --> 00:46:05,279
Speaker 9: So now what's the.

987
00:46:05,160 --> 00:46:08,200
Speaker 13: Theme and so so now we are in the process

988
00:46:08,280 --> 00:46:12,400
Speaker 13: of continuing to do bolt on transactions in particularly in

989
00:46:12,480 --> 00:46:14,239
Speaker 13: areas where we think there's going to be a.

990
00:46:14,120 --> 00:46:16,720
Speaker 3: New call on gas. We talk about all.

991
00:46:16,600 --> 00:46:21,279
Speaker 13: This demand side you know investment, Well, there's going to

992
00:46:21,360 --> 00:46:23,640
Speaker 13: have to be a lot of supply side investment in

993
00:46:23,680 --> 00:46:25,600
Speaker 13: the gathering areas to be able to keep up with

994
00:46:25,640 --> 00:46:28,520
Speaker 13: all this demand. And so that's the kind of the

995
00:46:28,560 --> 00:46:30,560
Speaker 13: next area we're looking at is where is all this

996
00:46:30,640 --> 00:46:32,600
Speaker 13: gas going to come from? And how do we position

997
00:46:32,640 --> 00:46:34,319
Speaker 13: ourselves to be able to take advantage of that.

998
00:46:34,800 --> 00:46:37,719
Speaker 8: Is volatility an uncertainty good for helping make those decisions?

999
00:46:38,239 --> 00:46:42,040
Speaker 13: No, No, you know, you know, we have a we

1000
00:46:42,080 --> 00:46:44,520
Speaker 13: have a you know, a gas trading arm that you

1001
00:46:44,560 --> 00:46:49,440
Speaker 13: know loves to see volatility obviously, but but no, in general,

1002
00:46:49,560 --> 00:46:51,719
Speaker 13: you know, we like to see gas prices at a

1003
00:46:51,840 --> 00:46:55,560
Speaker 13: level that producers are making a decent return, and that

1004
00:46:55,640 --> 00:46:59,840
Speaker 13: it's low enough that it incents people making big capital

1005
00:46:59,840 --> 00:47:06,520
Speaker 13: investments like LNG export facilities, like power generation facilities. You know,

1006
00:47:07,080 --> 00:47:08,719
Speaker 13: it depends on you know, where we are in the

1007
00:47:08,760 --> 00:47:12,160
Speaker 13: inflation cycle. But right now we think, you know, kind

1008
00:47:12,160 --> 00:47:14,720
Speaker 13: of the high threes is a pretty good number, and

1009
00:47:15,000 --> 00:47:17,000
Speaker 13: a lot of producers are saying, no, no, no.

1010
00:47:16,840 --> 00:47:18,400
Speaker 3: It's four fifty, it's five dollars.

1011
00:47:18,440 --> 00:47:21,359
Speaker 13: Well, you know, we're seeing pretty good response right now

1012
00:47:21,480 --> 00:47:25,080
Speaker 13: from the producing community at these kind of prices. So,

1013
00:47:25,520 --> 00:47:29,400
Speaker 13: but we definitely have got to get after it because

1014
00:47:29,440 --> 00:47:32,520
Speaker 13: there is a lot of incremental demand coming on between

1015
00:47:32,760 --> 00:47:35,279
Speaker 13: L and G and the power generations, and at least

1016
00:47:35,320 --> 00:47:37,760
Speaker 13: for the time period, it's going to be pretty sticky demand.

1017
00:47:37,800 --> 00:47:40,000
Speaker 13: It's going to be some pretty pretty heavy loads on

1018
00:47:40,040 --> 00:47:43,919
Speaker 13: the system. And so, you know, in January of this year,

1019
00:47:43,960 --> 00:47:45,960
Speaker 13: this is an amazing stat to me. We get so

1020
00:47:46,040 --> 00:47:48,279
Speaker 13: much attention from our investors on oh my gosh, you

1021
00:47:48,320 --> 00:47:50,439
Speaker 13: guys got a data center project that it's so cool. Yeah,

1022
00:47:50,520 --> 00:47:52,839
Speaker 13: well it's not that big a load, frankly, I mean,

1023
00:47:52,880 --> 00:47:57,080
Speaker 13: it's nice load and it's a nice return and hopefully

1024
00:47:57,120 --> 00:47:59,640
Speaker 13: the first of many to come. But what we did

1025
00:47:59,640 --> 00:48:02,399
Speaker 13: in now said earning scoll this year was in January

1026
00:48:02,440 --> 00:48:05,719
Speaker 13: of this year, on trans Goo alone, we saw a

1027
00:48:05,840 --> 00:48:09,680
Speaker 13: ten percent increase over the highest January we'd ever seen

1028
00:48:09,760 --> 00:48:10,400
Speaker 13: on our system.

1029
00:48:10,600 --> 00:48:11,759
Speaker 3: And it wasn't cold weather.

1030
00:48:12,120 --> 00:48:14,719
Speaker 13: This is on top of the January of twenty two

1031
00:48:14,800 --> 00:48:17,560
Speaker 13: when we had a blizzard that hit the Northeast and

1032
00:48:17,600 --> 00:48:21,880
Speaker 13: that really peaked a demand. So a ten percent increase

1033
00:48:21,960 --> 00:48:24,480
Speaker 13: for the entire month in terms of volumes on our system.

1034
00:48:24,880 --> 00:48:26,680
Speaker 3: And this winner alone, we.

1035
00:48:26,680 --> 00:48:31,080
Speaker 13: Have seen eighteen now of the top twenty peak days

1036
00:48:31,280 --> 00:48:34,600
Speaker 13: ever on our systems, all the weather cycles we've ever

1037
00:48:34,640 --> 00:48:38,480
Speaker 13: seen eighteen the top twenty peak days. So the demands

1038
00:48:38,520 --> 00:48:40,560
Speaker 13: on our system are really picking up. If I was

1039
00:48:40,600 --> 00:48:42,960
Speaker 13: an investor, I'd be wanting to know more about that.

1040
00:48:43,000 --> 00:48:44,400
Speaker 9: Frankly, I'm sure.

1041
00:48:44,680 --> 00:48:46,960
Speaker 8: And so that's more business opportunity for you and not

1042
00:48:47,040 --> 00:48:49,480
Speaker 8: just out of center demand. Really appreciate Alan, thanks very much.

1043
00:48:49,719 --> 00:48:52,080
Speaker 8: On I'mstrong William's CEO joining.

1044
00:48:51,840 --> 00:48:54,000
Speaker 2: Us there, Paul, back to you, all right, Alex Steel,

1045
00:48:54,000 --> 00:48:54,560
Speaker 2: thank you so much.

1046
00:48:54,600 --> 00:48:55,359
Speaker 3: We appreciate that.

1047
00:48:55,360 --> 00:48:58,839
Speaker 2: That's former intelligence co host Alex Seal speaking with Williams

1048
00:48:58,840 --> 00:49:02,760
Speaker 2: Company CEO Alan Armstrong. That it's Sarah Week down in Houston. Texas.

1049
00:49:03,480 --> 00:49:08,160
Speaker 1: This is the Bloomberg Intelligence Podcast, available on Apple, Spotify,

1050
00:49:08,360 --> 00:49:12,320
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1051
00:49:12,520 --> 00:49:15,799
Speaker 1: ten am to noon Eastern on Bloomberg dot com, the

1052
00:49:15,920 --> 00:49:19,759
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1053
00:49:19,800 --> 00:49:23,080
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1054
00:49:23,320 --> 00:49:25,240
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