Big Digital Energy

00;00;00;00 - 00;00;27;14
Unknown
Hey, welcome, Clyde, to another thrilling episode of BD. We were off air talking about concerts. First concerts, Doobie Smoke, you know, all the stuff the first concerts have my moment of kind of like, shock, I guess is the best way to put it. I'm at a concert, the guy in front, and I'm in, you know, high school.

00;00;27;14 - 00;00;46;19
Unknown
Maybe I'm a freshman. I'm at a concert. The guy in front of me is sitting there smoking weed, and I'm shocked by this. Oh my gosh. What? You know, what is this? And all? And he was sitting down and the police finally come over and grab this guy and yank him up. He was in a wheelchair and he had no legs.

00;00;46;27 - 00;01;15;08
Unknown
And they carried him, carried him up the up the, the, the stairs. And I was just like, sir, it's just happened. It's medicinal. It's medicinal. Hey, boys, how are y'all? I'm great. My first concert, I got high as well and it was Robert Plant. Of course. I mean, what a great first concert. Go! Love that dude. LED Zeppelin front man.

00;01;15;10 - 00;01;40;12
Unknown
But I got hired. No idea what was going on. I was 1112 was at the Honey Dippers super group back. Back in the Honey Dripper era. And who played who played keyboard for the Honey Dippers? Man, no. Paul Shaffer of, David Letterman. Yeah. Really? Okay, so name from the past. Let's keep going on that trivia. Who wrote the song?

00;01;40;12 - 00;02;11;14
Unknown
It's rain, raining men by the weather girls, it's raining men. Hallelujah. Who wrote that song? The aforementioned Paul Shaffer. Well, yeah, I was thinking you were going there, but didn't know. Good one. That's a good one shot. Yeah. There you go. I'm just full of it today. All right, where are we starting off? Mark, don't mess with Texas energy, environmental litigation on deck.

00;02;11;16 - 00;02;55;24
Unknown
Oh, wow. Yeah. So, I'll kind of set up this story. Ashley. What? And I need to preface this with dear friend, I love Ashley. She's great. Dear friend has a ranch out in West Texas, kind of by Monahans. And, just an old field out there that literally Texaco had taken the lease to in like 1924 and just had all sorts of old pap wells spewing, across, you know, kind of the, the lifetime of, the property we all know out in West Texas, God did not put any pressure under the ground.

00;02;55;24 - 00;03;30;02
Unknown
So if you have pressure and spewing wells, it's manmade. I mean, any idiot knows that, and, and just had a real problem interacting with, with, Chevron through the years on that, and you kind of messed with the wrong person there with Ashley because she's wicked smart. And basically what what had happened is, you know, went back and kind of dug in and found records on microfiche that basically Chevron was way over injecting their limits.

00;03;30;05 - 00;03;54;18
Unknown
They were, in effect, claiming this was a water flood, but it was really just a way to get out of paying salt water disposal type stuff. If I if I had to guess that that's what was happening. And so anyway, just filling up the reservoir with, with that water, probably polluted the groundwater in the area. Ashley's mom died of a rare form of of cancer.

00;03;54;18 - 00;04;25;08
Unknown
So we'd done multiple podcasts on this. The, the kind of the biggest one I did was 31.69, because I was out riding around on an Teton ranch, and Ashley showed me a spot where, well, had had bubbled over and water spewed everywhere. And there was literally 400 yards of death and destruction. Right? Dead mesquite trees, no grass, all that.

00;04;25;10 - 00;04;52;23
Unknown
And Chevron claimed that only 31.69 barrels of saltwater had, had, fallen on the ground and I was like, this is West Texas. That would evaporate before it hit the ground. And so what we did is we we got a freshwater truck to come out and just spill 31.69 barrels to see what happened. And, I mean, it didn't even make a trickle in the 400 yards of death and despair.

00;04;52;23 - 00;05;20;07
Unknown
So, I have not talked to, to, to Ashley about this, but I kind of I kind of hope she's at peace in terms of, what got done here. And and I'm the biggest homer for the oil and gas, industry out there. I think we do great things, but, we also need to be responsible actors, and we need to to monitor ourselves, or else the EPA and others are going to do it.

00;05;20;07 - 00;05;44;06
Unknown
Who don't necessarily understand our industry or have our industry's best, efforts at heart. So anyway, that's kind of the set up. It looks like, Chevron bought the ranch. So the lawsuit was settled and hopefully everybody's happy. Yeah, I know it was set to go to trial imminently. They bought not only the surface and all that. All the surface assets.

00;05;44;06 - 00;06;29;12
Unknown
They bought the subsurface as well as you would imagine. And this kind of harkens back to my Seminole experience with pollution liability. And that's the Valdez project. It's the first time I ever heard the notion of limitless liability. And so I think I look at it from the defendant's standpoint, you know, setting a a precedent with a jury outcome, relative to, you know, putting focus on not only individual wells, but, you know, the the collateral, impact of what's been going on for decades now.

00;06;29;12 - 00;06;59;00
Unknown
And the subsurface just part of normal oil and gas operations. But I don't think any other outcome, at least from Chevron's perspective, was was terrible. Of course, the, the purchase price was not disclosed. The owner is registered as, with an address at, Chevron's, San Ramon, California location. Just, I guess their old headquarters.

00;06;59;03 - 00;07;31;24
Unknown
But, yeah, this is. This was kind of a, wholesale outcome, in terms of a settlement to avoid really setting some much bigger precedents. And there's no doubt that we're going to have an issue in the future with old pad wells. I mean, a lot of them need to BP and a lot of the stuff that was done 50 years ago just wasn't best practices or whatever.

00;07;31;24 - 00;07;56;12
Unknown
And, and so can become an issue. So it's I don't know what a good solution is to all that, but it is going to be something we're going to be be dealing with. I mean, unbelievable when you think about what really is happening here, I mean, and at the end of the day, they it's not a settlement that's evident.

00;07;56;13 - 00;08;27;08
Unknown
Suppression with the property deed. And I mean, it's it it wouldn't surprise me. I think they prove something really. Chevron prove something really important here. It's cheaper to buy a 22,000 acre ranch than to establish legal precedent that oil companies are responsible for their century old messes. I mean, this is a big issue, and that's not really corporate malfeasance, if you will.

00;08;27;10 - 00;08;57;02
Unknown
And that's rational economic behavior. I mean, that was the only decision that Chevron could have made. And a system that could unravel Big Oil's lock in West Texas if you had thought about it. Had Ashley wanted to play hardball, she could have sold 100 acres to pick any large environmental defense fund and said, hey, you know, go to go to town.

00;08;57;04 - 00;09;25;11
Unknown
Greenpeace, whoever you know. And, so, yeah, the, the kind of sad thing and hopefully I'll grab a beer with Ashley at some point, get to hear this, and hopefully she is at peace because like I said, I'm a big Ashley fan. The sad thing is, is this was like the family ranch where she grew up and learned to hunt and, you know, ran out in the sand and, you know, all those memories and stuff.

00;09;25;11 - 00;09;47;01
Unknown
So it's kind of got to be hard parting with how many generations did that ranch go back? I want to say that part of the ranch her mom had for a long time, and then they added to it, kind of when, when Mom and dad got married. But I may be off on that. I mean, I think for those that are sentimental.

00;09;47;03 - 00;10;20;05
Unknown
Absolutely. There's a little sad piece, but for $20 billion or whatever, you know, whatever the number really is, it can't be that hard. As Chris Bird said, it is West Texas, but, well, it's going to be interesting to see what the follow on is to this, if any. You know, that somewhat emboldens the the opposition, if you will, to the industry, but to your opening point, doing the right thing.

00;10;20;07 - 00;11;12;24
Unknown
The industry has certainly a responsibility and an obligation to live within existing statutes and regulations. But, you know, being a good citizen, I think this this becomes more in focus as we start to maybe shift the focus from kind of the emissions obsession we've had to really what's going on, on and under the ground and the, the next piece of this environmental litigation, Texas, Attorney General Ken Paxton filed a lawsuit last week against, Global Fiberglass Recycling Texas LLC, which owned and operated a couple of fiberglass recycling sites near Sweetwater.

00;11;12;26 - 00;11;52;26
Unknown
Those had essentially been shuttered or the gates lock since 2020. But over time, there had been more than 3000 wind turbine parts. Most of what you see in the photos are the blades that have been stacked up, and what looks like a, wind turbine blade, graveyard. And so, apparently the, the permit or the license to operate that facility required that at least 75% of the parts that were, stored or staged on that site had to be recycled.

00;11;52;26 - 00;12;23;26
Unknown
And that clearly wasn't happening. And I believe they had a whistle blower back as early as 2018. That raised the attention of what was going on at the site. And so, you know, you look at the, at the aerial shots of it, it's it is a massive stack of, degrading fiberglass turbine blades. I mean, this has been going on since 2018 and 18 years of investigation.

00;12;23;28 - 00;12;56;05
Unknown
They they got an agreed order in 2020 to. But here's what, that I think it's just hilarious, but not funny. Funny? Not funny. By 2025, inspectors show up and find I'm not making this up. More waste had accumulated since their last visit at an abandoned facility with no permits and nobody home. So these green bastards are dirtier than Chevron is in West Texas.

00;12;56;08 - 00;13;32;10
Unknown
Here's some great facts for you. When you think about, wind turbines, the blades are made out of, out of fiberglass and carbon, you know, fiber composites. So it's basically indestructible, right? Only about 5% of turbines get, get recycled worldwide. The rest are thrown into landfills, chopped up, or get the irony here, burned for fuel. And tell me that's pleasant in terms of, emissions.

00;13;32;12 - 00;13;57;28
Unknown
And, you know, one of those blades can weigh as much as a school bus. And, one other kind of last thing in Europe, they've actually started blade graveyards where they put these massive piles. They have them in Denmark, they've got them in Germany. And, some people actually turn those into bike paths. So what's the what's the half life of a, turbine blade?

00;13;58;01 - 00;14;28;01
Unknown
500,000 years, I believe last time someone dated it using the wood method. You know, Paxton's lawsuit quote was perfect, by the way, just because the radical left calls something a green industry does not give any company a free pass to harm Texas countryside. The irony is thick, by the way. I mean massive terrestrial damage. It the fiberglass graveyard.

00;14;28;04 - 00;14;59;16
Unknown
Nobody wants to talk about. And what's frustrating is it reminds me of Finland. By the way, if we have time, I want to go move over to Finland because that's a great story too. But but, And it's all about wind. But this is good for Paxton. Kim. I mean, actually, I can believe that. I mean, I'm dealing still with, a broken new blade off the waters of Nantucket, another one that fell into the ocean.

00;14;59;16 - 00;15;31;22
Unknown
And that shit is still fucking coming up on our shores. Oh, that's still the blade from, what, 2024? Yeah, there's still just pops up. Fiberglass is nasty. It learns how to find open holes. It's like alien, man. One thing I found amusing about the, the Texas lawsuit. It identified the headquarters location of, Global Fiberglass Recycling. Texas LLC was in drum roll.

00;15;31;22 - 00;15;58;13
Unknown
Kirkland, Washington. Yes. Hey, we're agreeing. Yeah, exactly. And that's, you know, that's we won't get into it, but I saw a post yesterday about, some research group, lawyer out of Vermont who lives in LA talking about the shock and all that. The I push to off grid or behind the meter generation was egads, natural gas. It needs to be.

00;15;58;20 - 00;16;23;11
Unknown
It needs to be clean and demand responsive was her contention. And then, you know, just thought about these stories where, you know, you have actual surface damage that you can see and measure with a lot of it. And not to mention the far upstream mining operations that have ramped up to go to support this transition or whatever you want to call it.

00;16;23;11 - 00;16;48;29
Unknown
So when, when are we going to shift focus to, you know, actual damage that we can that we can see and, and lived next to. So that's. Broader philosophical point, I guess. But yeah, it's you know, at the end of the day, the thing I hate about it, and we've talked about this a million times on BD, so we don't need to belabor the point.

00;16;49;02 - 00;17;23;06
Unknown
All of life is a water balloon. You push one side, another side pops out. And the problem is we can't have a reasonable discussion on the various ramifications of everything because you're destroying the planet and blah, blah, blah, blah, blah, you know? No, it's all tradeoffs. There is no utopia. I mean, either way, I let's be honest, I don't think any of these of these people pushing the Al Gore's of the world, they don't give two shits about the environment.

00;17;23;06 - 00;17;52;08
Unknown
It's just a money scheme. Now. They've convinced a whole generation of young people to to care about it and think that if you if natural gas, bad green energy wind turbines, even though they're killing, you know, even all the waste good. That's the problem is, is all the sheep have been taught that all these lemmings have been taught that, hey, it's it's really good.

00;17;52;08 - 00;18;15;14
Unknown
And anything old school is bad. That's the problem. But the people behind it, they don't. They don't mean it. They're just get rich. It's a get rich scheme. To your point, I think it's even deeper and darker than that. It's about control. I mean, the single greatest that you can, you can do for freedom is give somebody a car boom.

00;18;15;16 - 00;18;37;09
Unknown
You know, you can go drive out to West Texas. Nobody knows where the hell I am if I don't take my cell phone with me. And, you know, off to the races and, and, I ultimately think this is about control, because all of these things seem to narrow in on ways that you can control the population. I mean, Chuck, wow.

00;18;37;15 - 00;19;02;23
Unknown
I'm with Polly on this team. Holly's applauding. I'm getting there, I really am. I'm kind of Pollyanna now. Oh, they mean well. They just view the world different. No, they don't know. They do not. All right, let's do that. Let's move to outer space. Do it. Love. I just want to talk I in space. Why not? Did you guys watch the Cheeky Pint podcast?

00;19;02;29 - 00;19;31;05
Unknown
I did not, I saw clips, but, you know, set it up for us. Yeah. So it was, a podcast that Ellen did a few days ago. Cheeky pint there sitting around drinking pints. Pints of Guinness. And it's at least the the bulk of what I was able to watch and listen to was focused on the notion of putting AI data centers in space at speed and scale.

00;19;31;07 - 00;19;57;24
Unknown
And when you listen to Elon talk about what space X is pivoting into, it's not only, you know, trying to get what ultimately is the cost of of launches down to get satellites in space. And they put more satellites in orbit than about, I think they're 90 plus percent of the satellites get launched on a, on a, on an annual basis.

00;19;57;24 - 00;20;32;01
Unknown
But basically, the concept is we're going to put we're going to put, AI data centers in space that will be powered by solar panels. I don't know what that actual physical configuration looks like, but the argument is solar is five times more productive when you don't have the atmosphere to deal with, and weather, and a 10th of the cost because you don't have the need for battery backup.

00;20;32;03 - 00;21;16;13
Unknown
And so he's talking about literally within 30 to 36 months, having meaningful launches of space based AI data centers. They're working at the root level, from raw materials to manufacturing to kind of in product for the solar panels that will be used for these. I don't know if you call them satellites or many, co-located data centers with, with solar power driving the GPS is but some pretty interesting, I guess visions about what this ultimately is 10,000 launches a year, which is literally a launch an hour.

00;21;16;20 - 00;21;47;24
Unknown
And you only need if it's optimized. You only need 20 or 30 spaceships or rockets to be able to do that because they go they orbit the Earth. Once come back, you pick them, put them back in the rotation, launch the next one. And it's it is a I guess I just a super interesting concept. But when you think about, I don't know, the reliability of the, the data centers and the GPUs themselves, what does that mean?

00;21;47;27 - 00;22;12;10
Unknown
You can't, can't suffer a high failure rate up in space. So how are you going to how are you going to do the maintenance work and the repair? Here's my question. I've got a couple questions here. I love the idea. I mean, you know, we talk space. But number one is Vlad, our loyal, most loyal listener, and a bunch of others listening to our our show.

00;22;12;12 - 00;22;36;26
Unknown
They don't even believe that space is real. So there's this big glass ceiling. So you hit that. So basically what what some of our listeners are thinking is they're basically building data centers somewhere in the South Pole behind that, you know, that's that area that no one's allowed to go in. So number one, secondly, hold on. Just real good.

00;22;36;27 - 00;22;57;19
Unknown
Just real quick. I saw Vlad yesterday. He was very disappointed in you all too, of making fun of me for having to go to the bathroom at the end of last week's episode, but continue on. Hey, we all I mean Mark and I just put our catheters in during the show. Was was this at Joseph's or at Larry's?

00;22;57;19 - 00;23;23;21
Unknown
Is that, this was at Joseph's because, Johanna had her, birthday party. So we all met at Joseph's. So is there been a date? Has there been a detente reached now, now, the old men are still at, Larry's, and I'm way over caffeinated because the waiters at Larry's do not let your cup get empty. We need you to do a episode live in Rosenberg.

00;23;23;23 - 00;23;49;08
Unknown
Rich and rich. Yeah, I know, yeah, I had to say it. I know, I know you did. You know I had to. Here's a little story saying discussed. Go ahead. Space-X launches the satellite. Tesla makes the solar panels and robots x AI builds the AI, Neuralink interfaces with it, X distributes it. It's a closed loop empire for Elon Musk is perfect.

00;23;49;12 - 00;24;24;06
Unknown
They they manufacture the and they source the raw materials and manufacture the solar panels. Yeah. So he's talking about controlling everything. And probably your Chuck's at some point too. Here's my question. Should all those guys that are getting their deep water welding degrees, should they pivot to because they're going to need blue collar and SpaceX like what does what does the blue collar rig worker look like when the data center up in space is broken?

00;24;24;09 - 00;24;47;07
Unknown
Like, who do you send up there? What does that look like? I want to go 28 and 28. Man. I want to go getter. I want to be a go get some like what he said. I mean, basically, you know what what Musk said in that in and that what I read is those who have lived in software land don't realize they're about to have a hard lesson in hardware.

00;24;47;08 - 00;25;15;28
Unknown
Like we don't realize how hard it is, but but building a data center in space, that's hard. Yeah. You know what's interesting? And I think Musk is proving this, longtime venture capitalist, Barton McMurtry, God rest his soul, passed away. He was a rice guy. Board of trustees at rise board of trustees at Stanford. He's the only, venture capitalists that gave Microsoft any money.

00;25;16;01 - 00;25;49;16
Unknown
So kind of generally acknowledged in the Hall of Fame of the creators of venture capital. You know, Bert McMurtry's there. And I was fortunate enough to get to meet him and and call him a friend. And when he would come into Houston for a board meeting, he'd take me to breakfast and, anyway, so I got to talk to him as a young college student and one of the things he always said about venture capital is he said, at the end of the day, the engineers can always build what they say they're going to build.

00;25;49;16 - 00;26;15;19
Unknown
It'll take longer. It'll cost a little bit more money. Your job is to really go, who cares? Is there an actual market for this? You know, does it actually does it actually matter? Will it kind of be cost competitive? All those type things. And I think Musk is proving that, you know, Musk is sitting there every day because you can say all you want to about Musk is politics and all that.

00;26;15;21 - 00;26;45;25
Unknown
He pushes engineers and they solve these problems and it works. And and at least to this point, he's been right about the markets developing. And so to that end, you know, the big issue in space outside of just the cost and how hard it is, like you guys have said, is the latency effect. But at the end of the day, I still think I ultimately a lot of the inference is going to happen at the device level.

00;26;45;25 - 00;27;07;13
Unknown
I mean, yeah, the test, we're looking back more and more on device for that reason. That's that was, you know, when we talked about the Internet of Things, that was the that really was the genesis is you can't do everything in the cloud because it is it's going to become too big of a problem. And that's what we're talking about.

00;27;07;13 - 00;27;35;03
Unknown
But let me go back for a second. What what what Musk was talking about in that podcast is that we're running out of electricity on Earth. The entire U.S. uses about half a terawatt, and scaling AI to where it needs to go would mean doubling that. And the the the one big issue is that is the gas turbines.

00;27;35;07 - 00;28;08;02
Unknown
Really at the end of the day, it's coming down to gas turbine manufacturers. There's only a few on this. I mean, maybe there's a business there. Let's build the next Nvidia of gas turbines. But they're backordered through 2030. So that's my question. Why are we starting a gas turbine manufacturing company. And as he pointed out, you know, we basically said we we can't scale power for I on earth.

00;28;08;05 - 00;28;47;16
Unknown
Thus space where, you know, he used a metric 1/1,000,000 of the sun's energy is 100,000 times more, if not more than all of the energy use. And so civilization. And so, and he learned, you know, using x, I and, and Memphis as a, as an example. It's hard to build a power plant. Was his message. Well, you can't you came up with a pretty good interim solution for, 3 to 400MW in, you know, inside of 150 days.

00;28;47;19 - 00;29;20;18
Unknown
Now they're building a, a thick structure power plant across bordered Mississippi, but on an industry wide scale. His point is, you just can't you can't scale to power, whether that's technical limitations or manufacturing limitations. In the case of turbines, what he's talking about is the actual turbine blades and the vanes themselves. There's only a handful, maybe 3 or 4 companies that, do the casting and forging for these very highly engineered blades.

00;29;20;21 - 00;29;53;25
Unknown
And so that's one thing about fiberglass wind blades. We're talking about aerospace steel. Correct? Yeah. And the other one is, you know, it just it takes a long time to to navigate through both the, state and federal level permitting process for anything for building a plant, not building the blades, but. Correct. So, I mean, that's the the the libertarian in me says that this is a political problem and actually not a physics problem.

00;29;54;02 - 00;30;24;26
Unknown
Here's my prediction. Do you want to hear it write this down, collide. Lay it on us. Whether you believe the timeline or not, the direction is clear. Every major tech company is now racing to put compute infrastructure into orbit. So Google has Project Sun Catcher, Bezos Blue Origin. Sam Altman supposedly has been looking to buy a rocket company.

00;30;24;29 - 00;30;55;20
Unknown
So when the software guys think about Smart Start buying rockets, we're all told that we've hit the limits of what Earth can provide. But these are software nerds telling the world what hardware needs and what energy needs we need. So I think my predictions going back to this, I think Elon Musk is just fucking with those guys because they're lemmings to and he knows that there's a better way to do it.

00;30;55;25 - 00;31;25;12
Unknown
And and come on, we have a bunch of smart oil and gas engineers listening to this podcast. I don't believe that. I know AI is the power and it's it's all happening, but there's going to be solutions. There's going to be solutions on Earth. This is a red herring. If I've ever heard one. Musk will continue to make money on x I he's going to make money on sending rockets into space.

00;31;25;12 - 00;31;51;14
Unknown
That'll never stop. But this is a red herring. It's not real. That's my prediction. I wonder what's the, site called polygon or whatever. Why don't we go place that file? Poly market? Yeah, yeah, a couple Israelis were arrested that, like, figured out how to hack the system, but we were we were in, a meeting with an oil and gas company.

00;31;51;14 - 00;32;16;04
Unknown
And one of the things I always do kind of pre-sales meeting is we do intros. And I always say, tell me what you're doing with AI, even if it's just in your own life. You use ChatGPT or whatever. And so we're going around and the guy goes, what? I'm doing AI right now is I'm writing a script that goes and and finds arbitrage in the poly market, betting market.

00;32;16;04 - 00;32;42;27
Unknown
And I, I act on those. So, you know, a lot of times what will happen is, is there will be an event and it's like 47% chance that it's, yes, 48% chance that it's no. So you bet both ways. And and so it's, it's he's like, yeah, I'm sitting there using AI to do that. And I'm making, you know, 27,000 bets a day, netting, you know, $200 or whatever.

00;32;42;27 - 00;33;16;28
Unknown
It was pretty cool day trading all over again. Absolutely, absolutely. Lightning round. Let's wrap up with a lightning round. I'm going to I'm going to start at the bottom of the three and talk about BP. And if this is the only thing we wrap up with that's fine. So BP announced in its earnings call, that they are going to suspend their 750 million quarterly share repurchase program and use all excess cash to reduce debt.

00;33;17;01 - 00;33;44;28
Unknown
You know, when I looked on the day that it did open, I forget what day that was. Maybe Monday. They were down like 6 or 7%. I haven't seen how the stock has traded, you know, and it really is a, an example of what, I think has been known by the the best among the majors is through the cycles, over long periods of time.

00;33;44;28 - 00;33;51;18
Unknown
You got to have a fortress balance sheet, credit cards, Marty, for that.

00;33;51;20 - 00;34;28;24
Unknown
That moniker. But, you know, this is just another gut punch, if you will. Which in the immediate term reduces the return of although they've got to get their leverage metrics much more in line. So if you compare where BP is on a net debt to total capital, they're at about 23%. Exxon's an 11. Their debt coverage, BP's debt coverage or, leverage ratios like 1.4 times debt to EBITDA.

00;34;28;26 - 00;35;06;00
Unknown
Exxon's is less than half, 0.510.45. So this is, kind of a wide gap in in the fundamentals of being a major. BP obviously went off on its, on its transition distraction for multiple years. And ended up levering up because those projects didn't generate the types of returns that were anticipated, or at least, sold in terms of justification for making those investments.

00;35;06;00 - 00;35;31;02
Unknown
And now, you know, we've got a triage situation as it relates to, as it relates to, you know, BP's leverage position or gearing, as they say. Yeah. You know, I come back to the same thing I've always said about BP, and y'all are tired of hearing it. It's almost as bad as Mark in the air. It's the IEA, every IEA whatever, E-i-e-i-o.

00;35;31;05 - 00;35;57;28
Unknown
Our 2020, 2021, whatever it takes. The, every individual person I've ever met that worked for BP is incredibly impressive. One of my best management teams, the Treadstone guys, they were. I feel like you have to say that there's, like, an eye loop that goes off in your brain. Yeah, you're just say something bad about. You're trying to give the sandwich.

00;35;58;00 - 00;36;21;27
Unknown
Yeah. Go ahead. Jay, everyone say BP. You've ever met her? Amazing. You ever saw her Jane Stricker, tick on. Yeah, we've heard him now and then. I how is a group? Have they had such a fucked up, just mess of a track record? Because I've never met a stupid XRP person. You know what happens in riot theory? Shock.

00;36;22;00 - 00;36;43;22
Unknown
You get a bunch of normal people, and one guy says, let's get him. And all of a sudden you're dead. Because 50 people decided, hey, we just killed a guy because we were just all doing it. And then they realized later, we don't know what happened. That's bad culture. BP's bad culture. I don't know, how are we going to change it?

00;36;43;24 - 00;37;11;01
Unknown
But they just told their shareholders, do you get nothing? Good day, sir. I mean, this is Willy Wonka turning his back on that young lady and a young boy and sent him outside. And then the boy gives his gobstopper back and leaves and Willy Wonka turns around. But there's no Willy Wonka moment for BP. Write that down. That's a good that's a quote.

00;37;11;04 - 00;37;38;02
Unknown
I like that one. There you go. I might steal that at some point, though. There's no Willy Wonka turn around for BP. All right. Last item. Thoughts on expand. Announcing it's it's also departing Oklahoma City. I think they made that announcement a couple of days after Devin. And then, Nick Dale also is stepping down as CEO. What do you make of it?

00;37;38;07 - 00;38;02;11
Unknown
Last one out. Turn out the lights. The, you know, it was when and I shouldn't say this about Nick because I've met him, but I haven't seen him since he worked for Jeffries way before it. But when they announced him as CEO, my reaction on BD was, ma'am, blah. I mean, they announced the CEO search.

00;38;02;11 - 00;38;24;23
Unknown
It took nine months or 11 months, however long it took. And you settle for the guy who had been the CFO and had been in front of you the whole time. I mean, when it's obvious, like Case Van Hoff, boom, CEO is stepping down, boom case is taking over and we're pumped about that. The fact you looked around, you found it.

00;38;25;00 - 00;38;52;00
Unknown
That being said, in the time he took over, the stock price has doubled. It was 50 and now it's 102. But I will say that he took over in October of 21, which was probably still heights of Covid stuff. And in the first year it went from 50 to 102. And that may have been the Covid bounce back.

00;38;52;02 - 00;39;21;28
Unknown
So maybe he's been flat for the last four years. Hopefully they'll take a mulligan on the on the renaming. If not just go just go back to chest pick. I mean, we're approaching the ten year anniversary of Aubrey McClellan's death. March 2nd, 2016 Texas Independence Day. The man who built Chesapeake into a giant drove it into crisis and then died in that horrific crash the day after being indicted.

00;39;22;00 - 00;39;47;26
Unknown
Now, the company billed, he rebranded. It's been rebranded. It's merged, rebranded again, is leaving the city built. And in some ways it's I mean, I don't know, I kind of feel bad, you know, full circle. Oklahoma City was Aubrey's town. Now even that's over. So it's an end of an interesting and an important era is sort of my take.

00;39;47;28 - 00;40;16;16
Unknown
And that that campus is beautiful. It's modeled after Duke, and you go walk around there and there are a lot of smart folks there, and they've got they've got some shucks, got to say it. Yeah. So many smart people. It's trash talk, trash talk, great people. Yeah. But, anyway, you know, I'm a salesman these days. I gotta get Clyde and T rolling the tape and you just enter like the same speech.

00;40;16;19 - 00;40;49;15
Unknown
A lot of great people, instead of BP, it's like at. And then you you just. I changes the name of the company, then you do your live shit or you talk trash about, which is real time. And then I takes over again. So we need we need BP, we need BP, I truck, we need, Stevens, I check and we need rice, I truck, and, and, we will not find those nice comments about my two co-hosts anywhere, just for the record.

00;40;49;15 - 00;41;19;01
Unknown
But those are buried. And actually, Clyde has written a script that says, if you ever say anything nice about your co-host, burn it, burn it, delete it, burn it like those fiberglass blades to delete it. The, you know, one of the things that's always happened in the history of the oil business is when, when, and you think that, like, when the oil business is down, Houston would suffer, and it does a little bit.

00;41;19;01 - 00;41;49;10
Unknown
But what always happened is people would get rid of their New Orleans office, fire half the people, and then bring half the people back to the home office in Houston. Same with Tulsa. Same with Oklahoma City, same with Denver. And so during these dips in the industry, Houston always winds up expanding. And I think that becomes exponential. I do think if you're going to have an oil and gas company, you need to be in Houston, Texas.

00;41;49;10 - 00;42;17;14
Unknown
It's just where it happens. And in this case, it's literally expanding with expand, with expand, you also you'll see Collins Post because we've hired two AI engineers that are both headquartered in Oklahoma City. Since the announcement of that, two corporate headquarters of Left. So anyway, welcome to Houston expand. Happy to have you. Maybe they'll fill up that entire building that, southwestern built and never fully occupied.

00;42;17;16 - 00;42;37;06
Unknown
Fair enough. Fair enough for boys. It was good seeing you. Good. So you guys do it again next week. Go tell Vlad that, we need to get his opinion on the rockets and space and a special guest next Friday, but, we'll we'll keep that under wraps.