Big Digital Energy

00:00:00 [Speaker 1]
Hey, everybody.
00:00:01 [Speaker 1]
Welcome to BDE live.
00:00:04 [Speaker 1]
And to all the Victoria's Secret models that tune in who are auditioning to be the second missus Yates, Please let me explain the hair real quick.
00:00:16 [Speaker 1]
So I go to SportsClip down in Richmond, Texas.
00:00:20 [Speaker 1]
They have a file on me.

00:00:22 [Speaker 1]
It says, two blade on the side, leave long on top.
00:00:27 [Speaker 1]
Right?
00:00:27 [Speaker 1]
I peaked at 13 years old.
00:00:29 [Speaker 1]
It's always been surfer boy.
00:00:32 [Speaker 1]
I've just that's been my jam, and I've kinda just run with it ever since.

00:00:38 [Speaker 1]
Dude stopped listening at two blade and went two blade right across the top.
00:00:43 [Speaker 1]
So, I am now running around looking for Victoria's Secret models that have fetishes for Buddhist monks or maybe Bruce Willis circa 1988.
00:00:56 [Speaker 1]
That's where we are.

00:00:58 [Speaker 2]
I didn't take it that way.
00:00:59 [Speaker 2]
When I saw it, it was on the on the immediate heels of just a devastating home loss by Texas a and m on Saturday.
00:01:10 [Speaker 2]
And so I took that as full on sympathy cut for the reg.
00:01:17 [Speaker 2]
For the

00:01:18 [Speaker 3]
I'm still stuck on sport as a guy that private jets, I would think the FBO, when you get into the little, you know, private jet people, they there's a guy that cuts hair, and you wanted to be, like, the rapper next next to you with the big gold chains.
00:01:36 [Speaker 3]
Show us your chains, Chuck, because There we go.
00:01:39 [Speaker 3]
Look dangerous now.
00:01:41 [Speaker 3]
Like, maybe you're going to prison or maybe you're just the heavy.

00:01:47 [Speaker 1]
There we go.
00:01:48 [Speaker 1]
The, the kids around here at Collide have said, I just need to own it, and I need to go get the fade.
00:01:54 [Speaker 1]
So maybe next week, I will I will have the, the fade.
00:01:59 [Speaker 1]
So with

00:02:00 [Speaker 2]
that Update the record and scissors only is Yeah.
00:02:06 [Speaker 2]
Don't do anything without talking to me.
00:02:09 [Speaker 2]
Otherwise otherwise, Chuck, just get a flowbee.

00:02:11 [Speaker 1]
I am, I am not going back ever, period.
00:02:15 [Speaker 1]
Look good.
00:02:15 [Speaker 1]
So I'm gonna go find a barber.

00:02:18 [Speaker 3]
You look good, man.
00:02:19 [Speaker 3]
I'm telling you right now.
00:02:20 [Speaker 3]
You look good.

00:02:22 [Speaker 1]
I appreciate it.
00:02:22 [Speaker 1]
Poster boy for why white guys should not shave their head.
00:02:26 [Speaker 1]
But, Mark, why don't you kick us off?

00:02:28 [Speaker 2]
Yeah.
00:02:28 [Speaker 2]
Let's, let's kick off, Jacob, with a with a TikTok from one of our friendly Republican congressmen.

00:02:37 [Speaker 4]
Hey, everybody.
00:02:37 [Speaker 4]
Tim Burch.
00:02:38 [Speaker 4]
Affordability is the issue right now.
00:02:40 [Speaker 4]
The tip of that spear, of course, is the price of diesel.
00:02:43 [Speaker 4]
Currently, a big oil at the refinery level is a $110 per barrel, their margins are, that is, or $2.61 a gallon.

00:02:53 [Speaker 4]
Now typically, though, it's at $15 per barrel or 35¢ a gallon.
00:02:58 [Speaker 4]
So what are they doing?
00:03:00 [Speaker 4]
They're allowing this conflict to gouge you all, and that's exactly what they're doing.
00:03:06 [Speaker 4]
From $2.61 a gallon to where it used to be at 35¢ a gallon, we get zero oil through the Straits Of Hormuz.
00:03:14 [Speaker 4]
Don't let them fool you.

00:03:16 [Speaker 4]
Their greed is is being allowed because of their control of Washington, and it's both parties.
00:03:23 [Speaker 4]
We need to get back to Washington.
00:03:24 [Speaker 4]
I have two bills to to fix this.
00:03:28 [Speaker 4]
Just say we're not gonna export diesel, and then it floods it floods the American market and forces them to drop their profits.
00:03:36 [Speaker 4]
They'll steal their prices.

00:03:38 [Speaker 4]
It it they'll still make a a decent profit.
00:03:41 [Speaker 4]
They're just not gonna gouge us as much.
00:03:44 [Speaker 4]
This is a quick solution.
00:03:45 [Speaker 4]
Washington could do it.
00:03:47 [Speaker 4]
We do it during wartime, and, obviously, we're in this conflict in Iran.

00:03:53 [Speaker 4]
And I think this would help solve it very quick, and it would drop the prices overnight and force big oil to to do what's right because currently they're not.
00:04:03 [Speaker 4]
They're selling overseas.
00:04:04 [Speaker 4]
They get the higher price over there, and that will drive our prices up.
00:04:08 [Speaker 4]
And that's what it's done.
00:04:10 [Speaker 4]
So two bills.

00:04:11 [Speaker 4]
Let's get back to work.
00:04:13 [Speaker 4]
Thank you so much for sending me here.

00:04:18 [Speaker 2]
Oh, another reinforcing point from the right side of the aisle that the truly only bipartisan thing in Washington is energy ignorance.

00:04:30 [Speaker 3]
No doubt, man.
00:04:31 [Speaker 3]
I mean, as I listen to him, I always get stuck in big oil.
00:04:37 [Speaker 3]
I mean, these when you think about the multinationals, like, they're tiny compared to all these the, you know, the Saudis and these big, big, big major, sovereigns.
00:04:48 [Speaker 3]
But, I mean, what of course.
00:04:51 [Speaker 3]
Let's blame that guy over there, and I'm wondering what kinda kickback Tim's getting for putting a bill in to to keep diesel here in The US.

00:05:03 [Speaker 1]
So my take on this is banning exports to fix a refining shortage is like banning ambulances to fix the ER.
00:05:14 [Speaker 1]
So let's just apply it across the board and fix health care while we're at it.

00:05:22 [Speaker 3]
I think

00:05:23 [Speaker 2]
Keeping with the short hair theme, another story by someone who's got someone else by the short hairs is Saudi cutting off at least two European term contract refiners from crude in their October allocation.
00:05:43 [Speaker 2]
And so we start to see shock waves through the chain, an already short refining system, Russian refineries kind of on their ass right now, thanks to Ukraine.
00:05:55 [Speaker 2]
So we're we're creating we're creating spot shortages in areas where, you know, the global market has responded by presenting a straight strong Transatlantic arbitrage, and that's the way global crude and product markets work.
00:06:14 [Speaker 2]
What is what is this portend for Europe?

00:06:18 [Speaker 1]
Well, first off, we need to take a victory lap that the taco trade finally paid out.
00:06:24 [Speaker 1]
So, we've been talking about that for a while.
00:06:27 [Speaker 1]
So that's number one.

00:06:28 [Speaker 2]
Is that

00:06:30 [Speaker 3]
I just give you that?
00:06:31 [Speaker 3]
That was good.

00:06:32 [Speaker 1]
No.
00:06:33 [Speaker 1]
No.
00:06:33 [Speaker 1]
No.
00:06:33 [Speaker 1]
I I've, I've loaded all our transcripts into AI, so I can I can do the recall now and don't actually have to try to do it in my brain?
00:06:44 [Speaker 1]
No.

00:06:44 [Speaker 1]
But, look, at the end of the day, I mean, what you're gonna see when you see rationing is the richest people get to bid for the barrels, and they get it.
00:06:53 [Speaker 1]
And that's where the barrels will go, and the poor poorest people won't get the barrels, and they'll just have to go without.
00:07:00 [Speaker 1]
And it's always the poor people that suffer the most when we ration things out.
00:07:07 [Speaker 1]
And at the end of the day, that's what's gonna happen with a refining, shortage like we have.
00:07:14 [Speaker 1]
I mean, we we already were short refining, and we've I think we talked about this a couple weeks ago.

00:07:20 [Speaker 1]
We've knocked off seven, eight, 9% of worldwide refining capacity because of these wars.

00:07:28 [Speaker 3]
We talked about it last week, Chuck.
00:07:29 [Speaker 3]
We I mean, we've been saying heading into October is gonna be a major shit show on prices globally because of this deep and I need everyone to understand this.
00:07:41 [Speaker 3]
All three Saudi export routes are impaired at the same time, which is the first time in history.
00:07:49 [Speaker 3]
And Hormuz is contested by Iran.
00:07:52 [Speaker 3]
You've got the East West pipeline down from a drone strike.

00:07:56 [Speaker 3]
The Red Seas held by the Houthis who sees Parham Island.
00:08:01 [Speaker 3]
I mean, this is the largest export on Earth.
00:08:04 [Speaker 3]
They do about what is it?
00:08:06 [Speaker 3]
12,000,000 barrels per day of production capacity.
00:08:09 [Speaker 3]
They can't physically get the crude to Europe.

00:08:14 [Speaker 3]
And, you know, this is the first time they've actually ever missed term delivery.
00:08:19 [Speaker 3]
This is in history.
00:08:22 [Speaker 3]
So what are we gonna see here, Mark?

00:08:25 [Speaker 1]
Oh, hold on.
00:08:26 [Speaker 1]
I got I gotta say this, man.
00:08:28 [Speaker 1]
Europe has spent, what, the last decade and a half telling oil companies to drop dead and Saudi Aramco just went, alright.
00:08:36 [Speaker 1]
You first.

00:08:40 [Speaker 2]
Yeah.
00:08:40 [Speaker 2]
Look.
00:08:40 [Speaker 2]
I think, I think it's complicated.
00:08:44 [Speaker 2]
And when the Saudis who you know, as you pointed out, Kirk, face kind of a triple whammy black swan, it just we we can't physically meet term contracts.
00:08:57 [Speaker 2]
We're in uncharted waters here.

00:08:59 [Speaker 2]
But at the same time, you've got a European continent, and The UK that are on their heels after having just recently suffered through, you know, the post Russian invasion of Ukraine, the tough winter, scrambling to get gas, taking gas away from the global South.
00:09:18 [Speaker 2]
Chuck's exactly right.
00:09:20 [Speaker 2]
There are gonna be haves and have nots in the scramble for refined product and even even LNG and natural gas.
00:09:27 [Speaker 2]
And so, you know, the the structural workarounds of the straight, gas is another matter.
00:09:34 [Speaker 2]
I I think it remains critically dependent.

00:09:37 [Speaker 2]
We're talking about years to get, to get this sorted out in terms of alt alternate routes to move crude and refined product around to get it to, unconflicted passageway.
00:09:49 [Speaker 2]
And so I'd I'd like to take this even further.
00:09:53 [Speaker 2]
If you remember back when, and Chuck alluded to it, the last fifteen years of really the poster child for what Europe's been about is EnergyVenda, the thing that started in 2011 in Germany.
00:10:05 [Speaker 2]
And, you know, now here we are with the reality of of hydrocarbons and other fossil fuels like coal, etcetera, filling the gap on an emergency kind of crisis basis every time it gets cold and the wind, you know, the wind stops blowing and the sun stops shining.

00:10:24 [Speaker 3]
I mean I mean, I when you you talk about black swan, Mark, we've been continuing to roll out black swans.
00:10:32 [Speaker 3]
Like, the black swan just keeps growing and having children.
00:10:36 [Speaker 3]
This is getting as big as we can make it.
00:10:39 [Speaker 3]
And then we've got this congressman in our clip that we showed, blaming big oil, which for Americans, they're thinking the local US, you know, the Chevrons, the ExxonMobil, They have nothing to do with any of this, and they're gonna they're the ones getting blamed.
00:10:55 [Speaker 3]
People are gonna be pissed off at.

00:10:57 [Speaker 3]
And how do you blame Saudi?
00:10:59 [Speaker 3]
You can't do anything about it.
00:11:00 [Speaker 3]
They're too far.
00:11:02 [Speaker 3]
Most people don't even know where they are on app.
00:11:06 [Speaker 3]
Yeah.

00:11:06 [Speaker 3]
This is gonna be a bad you know, if it gets cold in The US, we've been talking Europe is screwed, but they've been screwed ever since they turned out like, when the Germans, they have so much lignite coal in the country.
00:11:21 [Speaker 3]
They could be so energy dependent, low cost, but they just didn't like it.
00:11:30 [Speaker 3]
Shut them all down, and the rest of Europe followed suit.

00:11:36 [Speaker 2]
I've I've gotta I've gotta sidebar this a little bit.
00:11:38 [Speaker 2]
There was a LinkedIn post by former energy secretary, Jennifer Granholm, last week, and she was talking about the hidden 23 gigawatts of of battery availability in Germany.
00:11:54 [Speaker 2]
This is this is after they set shut down over the last decade 50 to 60 gigawatts of thermal generation.
00:12:01 [Speaker 2]
We all know the the, you know, kind of the death march of their nuclear complete nuclear shutdown.
00:12:09 [Speaker 2]
And, basically, at the end of that, admonishing US regulators and policymakers to heed the German brilliance and the just the clever, idea of being able to connect all those batteries in the basement to their grid.

00:12:28 [Speaker 2]
Meanwhile, Germans pay two and a half times for electricity what we pay in The US, and I don't think any German pays less than what California pays.

00:12:40 [Speaker 3]
Yeah.
00:12:41 [Speaker 3]
We we bought a battery company in Germany when I was at Shell.
00:12:46 [Speaker 3]
Olegs did the transaction, Sonnen.
00:12:49 [Speaker 3]
And I was like, oh, this is really interesting.
00:12:52 [Speaker 3]
And it's home batteries to do exactly this.

00:12:56 [Speaker 3]
And I'm like, what a shit Is there it it I don't even know if it helped them on pricing at all.
00:13:03 [Speaker 3]
I think it actually just you know, maybe you could run some electricity in your house when the when the grid's down.
00:13:11 [Speaker 3]
But this is a that's not gonna solve anything at this point.
00:13:16 [Speaker 3]
And by the way, the grid's actually the German grid's actually pretty sophisticated, but I I don't think I mean, the problem is they don't have the input.
00:13:25 [Speaker 3]
They don't have enough power at this point, and that's why, you know, they're they're large middle class of all businesses

00:13:32 [Speaker 2]
and hammered.
00:13:34 [Speaker 2]
Yeah.
00:13:34 [Speaker 2]
Well, conflating conflating storage with generation is is kinda dangerous because at some point, post discharge, those batteries need to be recharged.
00:13:46 [Speaker 2]
And does that does that sync with generation availability after you've taken, you know, 50 plus gigawatts of base load and reliable thermal generation out of the out of the system.
00:13:58 [Speaker 2]
But this is this is all kinda part of getting back to the issue at hand, which is Saudi saying we're not gonna provide any crude under some term contracts in October, this is, you know, this is the distraction that has been the last fifteen years in Europe, which was also the distraction over kind of the twenty twenty to twenty twenty five time frame in The US, where we're not paying attention to kind of the concentration of risk, as it relates to flows of energy.

00:14:32 [Speaker 2]
Stocks are one thing, flows are another.

00:14:34 [Speaker 3]
Well, do you remember and I'm gonna throw this to Chuck.
00:14:37 [Speaker 3]
And this is not AI.
00:14:39 [Speaker 3]
This is just my bad brain remembering.
00:14:41 [Speaker 3]
I'm like, guess who's gonna be good throughout this in Europe?
00:14:45 [Speaker 3]
Guess the one country in Europe that's gonna be okay?

00:14:48 [Speaker 1]
Can you guess it?
00:14:50 [Speaker 1]
The froggies with all their nuclear power.

00:14:54 [Speaker 3]
The French, man, the croissant eaters are laughing all the way to the lights being on.
00:15:01 [Speaker 3]
It's gonna be so fond of

00:15:04 [Speaker 1]
The only the only thing would that would be better is if somehow the German showed up and just stole the nuclear power.
00:15:13 [Speaker 1]
And the French were going, we surrender.
00:15:15 [Speaker 1]
We surrender.

00:15:17 [Speaker 3]
Yeah.
00:15:17 [Speaker 3]
But the Germans actually were like, don't bring that across the river.
00:15:21 [Speaker 3]
Like, they were pissed.
00:15:22 [Speaker 3]
Like, get your nukes away from us.
00:15:24 [Speaker 3]
I mean, it's Oh.

00:15:26 [Speaker 3]
But did we call quits when the Germans bombed Pearl Harbor?

00:15:32 [Speaker 2]
Germans?
00:15:33 [Speaker 2]
Forget it.
00:15:33 [Speaker 2]
He's rolling.
00:15:37 [Speaker 2]
That was another animal house road.
00:15:40 [Speaker 2]
Jacob that that was for Jacob's benefit.

00:15:43 [Speaker 1]
We we we gotta explain it to the monsters that collide.

00:15:47 [Speaker 2]
Let let let's let's let's stay on on Europe and connect it with the newly emerging or resurgent push among the EU for windfall profits taxes.

00:16:01 [Speaker 3]
Yeah.
00:16:01 [Speaker 3]
Explain set it up, Mark.
00:16:02 [Speaker 3]
Tell tell everyone what windfall profits are.

00:16:07 [Speaker 2]
Well, you've got the Germans, the Spanish, the Portuguese, the Italians, the Polish, and the Austrians pushing for an EU wide windfall tax on oil company profits profits.
00:16:19 [Speaker 2]
This this first emerged in April and is is now back at the top of the agenda for the, upcoming actually, it was last week.
00:16:31 [Speaker 2]
The e Eurogroup Ecofin meeting in Dublin.
00:16:35 [Speaker 2]
Press the commission to present concrete models by the October EcoFIN meeting, accusing oil companies of overcharging.
00:16:44 [Speaker 2]
Commissioner Dombrowski said, idea is part of our discussions but stopped short of committing.

00:16:50 [Speaker 2]
Portugal floated a reference model.
00:16:52 [Speaker 2]
30 let's get really formulaic and complicated about this.
00:16:56 [Speaker 2]
33% tax on profits exceeding 2024 or 25 averages by more than 20%.
00:17:04 [Speaker 2]
That was their own 2026 measure that they had in Portugal.
00:17:08 [Speaker 2]
Here's what's gonna happen.

00:17:11 [Speaker 2]
And we talked about this many years ago.
00:17:15 [Speaker 2]
I believe in in what the I think the ultimate message by Ecofin or Blockwide leadership is, look, kinda figure it out for yourself on a national level.
00:17:26 [Speaker 2]
Is this finally the the thread or the the spark that causes the ultimate unwinding and undoing of the EU itself?

00:17:38 [Speaker 3]
We got a good comment over here from, at c and w c d s one.
00:17:46 [Speaker 3]
More government control.
00:17:47 [Speaker 3]
Yes.
00:17:48 [Speaker 3]
Just what we need, SMH.
00:17:50 [Speaker 3]
How about giving more financial support to the local refiners to produce more here?

00:17:56 [Speaker 3]
What a crazy idea that is.
00:17:58 [Speaker 3]
Okay.

00:18:00 [Speaker 1]
Okay.
00:18:00 [Speaker 1]
I've been biting my tongue, but I've thought about this last night at two in the morning when you sent the run of show, Mark, and I was wide awake.
00:18:09 [Speaker 1]
This is coming from grumpy libertarian, and I can't believe I'm about to say this, but I'm ready to do this.
00:18:16 [Speaker 1]
We need to have a plan called big inch two point o.
00:18:22 [Speaker 1]
And does everybody know what big inch is?

00:18:24 [Speaker 1]
And Kirk quit winking at me.
00:18:28 [Speaker 1]
The big inch plan was World War two.
00:18:31 [Speaker 1]
Right?
00:18:32 [Speaker 1]
Logistics, refined product, crude oil.
00:18:36 [Speaker 1]
The German boats were off our shores.

00:18:39 [Speaker 1]
They were, shooting ships.
00:18:41 [Speaker 1]
What did we do?
00:18:42 [Speaker 1]
We laid 24 inches of steel pipe from Longview, Texas up to Illinois, and then we ran it over to New York and Philadelphia.
00:18:52 [Speaker 1]
And then we also ran a 20 inch line similarly to get refined products from the Gulf Coast to the East Coast, and we did all of that within a year.
00:19:05 [Speaker 1]
And here is the plan.

00:19:07 [Speaker 1]
Trump does emergency powers.
00:19:11 [Speaker 1]
The defense department builds this, requisitions the steel.
00:19:17 [Speaker 1]
And what we need is we need to skip all the bullshit permitting stuff that we have to do.
00:19:23 [Speaker 1]
I mean, it's it's 15 or 20 different permits to build a refinery in The United States, associated lawsuits.
00:19:33 [Speaker 1]
And, that's why we haven't built a major refinery since, what, like, 1977.

00:19:38 [Speaker 1]
I think it was Garyville, and and Louisiana was the last one.
00:19:43 [Speaker 1]
We're gonna do that.
00:19:44 [Speaker 1]
When you look at Port Arthur to Matagorda, God clearly said put refineries here because this is a shithole, and we're just gonna fill it up.
00:19:54 [Speaker 1]
And Texas is gonna save the world by building all these refineries.
00:20:00 [Speaker 1]
We'll get them all built within a year under the Emergency Powers Act.

00:20:04 [Speaker 1]
We'll be pumping refined products out across the world, and I'm doing this because I'm Bruce Willis and Armageddon with my hair.
00:20:14 [Speaker 1]
I'm saving the planet.

00:20:15 [Speaker 3]
You that's this is amazing.
00:20:19 [Speaker 3]
Chuck, you bring this up.
00:20:20 [Speaker 3]
But you know who ran the West Texas oil fields and applied all that pipe?
00:20:27 [Speaker 3]
No.
00:20:27 [Speaker 3]
Who?

00:20:29 [Speaker 3]
And he was head of sales for oil well supply company.

00:20:33 [Speaker 1]
Say his name again.
00:20:34 [Speaker 1]
You you you blacked out.

00:20:36 [Speaker 3]
Oh, his name was Richard Coburn, but he was the head of sales for the oil well supply company, which has now turned into n o v is now n o v.
00:20:48 [Speaker 3]
But, you know, they merged back in '87, with National Supply Company and created National Oil Well.
00:20:56 [Speaker 3]
But

00:20:57 [Speaker 1]
they had, like anyway, good good story.
00:21:02 [Speaker 1]
No.
00:21:02 [Speaker 1]
That one, that's awesome.
00:21:04 [Speaker 1]
And two, this is the serious part of it.
00:21:07 [Speaker 1]
Under these permits that we're gonna we're going to, release right now so people can start getting building that we're gonna approve right now, you, for the next thirty years, are exempt from windfall profit tax, export bans, any of the bullshit that the government can throw at you.

00:21:28 [Speaker 1]
Because if we're expecting people to spend billions and billions to build these refineries so that we can finally get the world up to par, what demand is needed.
00:21:40 [Speaker 1]
They have to have protection from that.
00:21:43 [Speaker 1]
So that's the serious part of the rant.

00:21:46 [Speaker 3]
Here's what's interesting.
00:21:47 [Speaker 3]
I mean, just process it for a moment.
00:21:51 [Speaker 3]
EU's response to a supply crisis is to Saudi just told Europe zero barrels in October.
00:22:05 [Speaker 3]
And these six member states want to impose a windfall on is that produced molecule.
00:22:14 [Speaker 3]
I mean, Europe, it's like taxing the fire department during the fire.

00:22:20 [Speaker 3]
It couldn't get any dumber.

00:22:23 [Speaker 1]
Taxing the fire department for the marshmallows that they're roasting over the fire.

00:22:28 [Speaker 2]
I mean Well, notice we haven't heard any of our esteemed leadership either in congress or the administration talking about any kind of fuel tax relief.

00:22:49 [Speaker 3]
So Oui.
00:22:50 [Speaker 3]
Oui.
00:22:50 [Speaker 3]
Oui.

00:22:50 [Speaker 1]
Oui.
00:22:52 [Speaker 1]
The, I'm serious.
00:22:54 [Speaker 1]
Texas ought to be the one to do this.
00:22:56 [Speaker 1]
I mean, we've got we're the logical place to put this.
00:23:00 [Speaker 1]
We've got the oil out in the Permian Basin.

00:23:03 [Speaker 1]
We could finally build refineries that run on the light sweet crude that we're producing these days, and we could supply the world.
00:23:12 [Speaker 1]
And I don't know why we don't do that.
00:23:16 [Speaker 1]
And and it kills the libertarian in me to say it.

00:23:24 [Speaker 3]
You know?
00:23:25 [Speaker 3]
Yeah.
00:23:25 [Speaker 3]
No doubt.
00:23:27 [Speaker 3]
What's next?
00:23:27 [Speaker 3]
I mean, by the way, I just re recalled that, you know, Exxon successfully challenged we talked about this in 2022.

00:23:38 [Speaker 3]
They challenged the EU general court that it was illegal to do a windfall tax.
00:23:44 [Speaker 3]
So and I mean, the Europeans are literally off the rocker, but it'll be interesting to see.
00:23:55 [Speaker 3]
What's next, Mark?

00:23:57 [Speaker 2]
Well, you alluded to something earlier about, you know, the haves and the have nots.
00:24:03 [Speaker 2]
I think that was Chuck.

00:24:05 [Speaker 1]
I don't know

00:24:05 [Speaker 2]
if you guys saw last week that, Pakistan reimposed its semi lockdown because of prices and fuel shortages.
00:24:19 [Speaker 2]
And, basically, what you've got is cutting government vehicle fuel by 50%, official foreign travel ban.
00:24:33 [Speaker 2]
I also read somewhere that any wedding, festivities, which are a big deal in that country, you're you're limited to serving one dish.
00:24:47 [Speaker 2]
We're talking

00:24:48 [Speaker 3]
about the pack Pakistan locking down.
00:24:52 [Speaker 3]
They imposed a darkness at 9PM.
00:24:56 [Speaker 3]
Markets close.
00:24:58 [Speaker 3]
Mall's close.
00:24:59 [Speaker 3]
Wedding halls at ten.

00:25:01 [Speaker 3]
Restaurants at eleven.
00:25:03 [Speaker 3]
I mean, this is interesting.
00:25:06 [Speaker 3]
Basically, the government telling everybody in the country, lights go out at 9PM because you can't afford the diesel.

00:25:14 [Speaker 2]
Yeah.
00:25:14 [Speaker 2]
I don't I'm I'm not sure people appreciate.
00:25:16 [Speaker 2]
It's it's a country of 240,000,000 people today expected to get, you know, just south of 400,000,000 by 2050.
00:25:26 [Speaker 2]
And when I lived there, you know, abundance was never a word we use very much.
00:25:32 [Speaker 2]
And so in just kind of normal circumstances, it's it's a tough place to be.

00:25:38 [Speaker 2]
And now that you've got all kinds of rationing lockdowns, prohibitions on fuel use, you know, what's next?
00:25:47 [Speaker 2]
That's the kind of stuff that leads to, political unrest and pretty quickly.
00:25:53 [Speaker 2]
So it's, it's it's a serious situation.
00:25:58 [Speaker 2]
And, again, it's I I think it's kind of a poster child for who gets the short end of the stick, and who gets a shorter haircut, if you will, during these times of of, you know, physical tightness tightness and energy balance.

00:26:13 [Speaker 3]
By getting him by the short hairs.
00:26:17 [Speaker 3]
Chuck says inch.
00:26:18 [Speaker 3]
I mean, everything is going back to Chuck, and I don't know why you have to throw him under the bus like that.
00:26:22 [Speaker 3]
Yeah.
00:26:23 [Speaker 3]
But here's my

00:26:24 [Speaker 1]
Oh my god.
00:26:26 [Speaker 1]
So Matt Wilk Matt Wilks actually posted that on x this weekend, and so kudos to Matt for his, for his great AI skills.
00:26:37 [Speaker 1]
The, we do need to point out if you're bidding in rupees, you're gonna be the last buyer.
00:26:42 [Speaker 1]
I mean He

00:26:43 [Speaker 3]
No doubt.
00:26:44 [Speaker 3]
But here's my question to both of you gentlemen.
00:26:47 [Speaker 3]
Is this Europe's template, winner template, what Pakistan's doing?
00:26:52 [Speaker 3]
So, you know, when when when molecules are more expensive than the economy can absorb, you either can choose to consume less or pay more.
00:27:03 [Speaker 3]
Well, in Pakistan's case, they're they're choosing to consume less.

00:27:07 [Speaker 3]
This will be interesting to watch.
00:27:09 [Speaker 3]
Do you think Europe follows suit and starts rationing?

00:27:15 [Speaker 1]
I will say the demand response, at least when I was headed over to England, the demand response ability because you had a meter in your a smart meter in your house that was showing you what your current bill was and what the rates were.
00:27:32 [Speaker 1]
They have an ability to actually make real time decisions versus us here in The United States that just kinda set our home meter and and, and keep our house cool or hot wherever we we wanna go.
00:27:48 [Speaker 1]
So we'll definitely see some demand driven response to that because of the technology they have.
00:27:55 [Speaker 1]
The worry I have is, does this just kick us into a global recession?
00:27:59 [Speaker 1]
I don't think Europe's a big enough economic power to drive the whole world into a recession, but it certainly wouldn't help if we have a cold winter over there.

00:28:11 [Speaker 3]
Well, you know, I mean, energy I mean, power, specifically, is the most volatile commodity in the world, but but I found one and this is my question to to pull it full circle to collide.
00:28:25 [Speaker 3]
The most volatile commodity in the world now are freaking AI tokens.
00:28:30 [Speaker 3]
And I watch mine burn, like, because I'm you know, like, all of us that are now coding because we can.
00:28:37 [Speaker 3]
What's gonna happen to the data centers if there's a global, like, energy issue?
00:28:44 [Speaker 3]
What's gonna happen to AI and people building?

00:28:47 [Speaker 3]
Is it gonna just jack the token prices up?
00:28:51 [Speaker 3]
What what do you guys think?
00:28:53 [Speaker 3]
And what's your fearless leader at Clyde gonna do?

00:28:58 [Speaker 1]
The, that's always the opera roll question at any given moment.
00:29:02 [Speaker 1]
What is Colin gonna do?
00:29:04 [Speaker 1]
But, no.
00:29:05 [Speaker 1]
If you if you think about it, I mean, AI driven by energy prices, who has the most thoughtful abundance type energy policy right now?
00:29:16 [Speaker 1]
It's China.

00:29:16 [Speaker 1]
They're building stuff.
00:29:18 [Speaker 1]
Right?
00:29:19 [Speaker 1]
Coal plants every week, nuke plants every week, putting solar out every week.
00:29:24 [Speaker 1]
And so, that's my big worry.
00:29:28 [Speaker 1]
I I truly think this is the crisis of our lifetime is us winning the AI race.

00:29:36 [Speaker 1]
And if we do things like banning data centers, not building the energy infrastructure to be able to deliver on it, we're gonna hand the communist a win, and that's not gonna be good.

00:29:51 [Speaker 3]
I'm a 100%, Chuck, but that's, you know, when you get into these sort of, you know, self actualization era where people are fat and happy, they start thinking about, let's build more therapy clinics versus, like, building base load and building very cheap capabilities and inputs so that we can be the leaders of building things that the rest of the world wants.
00:30:21 [Speaker 3]
That's China's been doing this hands over fist better than we have, and we've talked about it on this show for years now, and it keeps going.
00:30:31 [Speaker 3]
And, oh, wait.
00:30:32 [Speaker 3]
By the way, Jess from Texas ninety six wants to know, do y'all think natural gas will skyrocket skyrocket during the winter months in Texas?
00:30:41 [Speaker 3]
If we do have a bad winter, will ONG prices be higher in the fourth quarter?

00:30:47 [Speaker 3]
Sounds like a mark question.

00:30:53 [Speaker 2]
Say that again, Kurt.
00:30:55 [Speaker 2]
I've got a little skirmish on on here.

00:30:58 [Speaker 3]
Will will will natural gas skyrocket during the winter months in Texas?

00:31:05 [Speaker 2]
Not a I don't think Texas has a deliverability or transmission problem.
00:31:09 [Speaker 2]
I mean, tell me if there's another URI type event.
00:31:12 [Speaker 2]
It doesn't appear that we're in the crosshairs for that.
00:31:16 [Speaker 2]
So, you know, Texas has got plenty of gas.

00:31:23 [Speaker 3]
Will we see fuel prices at a record high at that time?
00:31:26 [Speaker 3]
Absolutely.
00:31:27 [Speaker 3]
This is not this is across the board.
00:31:31 [Speaker 3]
That's why the that's why, I mean, Birkett and everyone else in congress looking for kickbacks is talking about keeping all the diesel we manufacture here in The US in the country.
00:31:45 [Speaker 3]
But as a good libertarian over there for you, Chuck, it is like, let the highest bidder pay for it because these are these are, you know, private companies that are looking to make money.

00:31:56 [Speaker 3]
That's what everyone does.
00:31:57 [Speaker 3]
And the only time refiners ever make money is in times like this anyway.

00:32:02 [Speaker 1]
I mean, the the East Coast and the West Coast right now are short refined products.
00:32:07 [Speaker 1]
And if we and they're actually importing refined products.
00:32:11 [Speaker 1]
And so if we ban our exports and, other countries stop selling to us, that's called a trade war.
00:32:20 [Speaker 1]
You know?
00:32:21 [Speaker 1]
So, I don't I don't know that a lot of thoughts being given to any of this, and it all comes back to, you know, we made a choice however many years ago that just hydrocarbons were bad.

00:32:35 [Speaker 1]
We were gonna do everything we could could can to stop the advancement of that.
00:32:40 [Speaker 1]
And you're gonna have to pay the piper on that because renewables were not able to fill the gap like they were promised to.

00:32:48 [Speaker 3]
Alright.
00:32:49 [Speaker 3]
Well, Zach Chips says, I think AI breaks communism, and it would be beneficial for them to adopt AI.
00:32:58 [Speaker 3]
It would be beneficial for them who I don't know who them is.
00:33:03 [Speaker 3]
But all I can tell you right now is DeepSeek, a Chinese AI company, has way undercut the rest of the market, like Claude, ChatGPT, Gemini.
00:33:16 [Speaker 3]
Their pricing is almost one fiftieth in terms of token prices versus everyone else.

00:33:23 [Speaker 3]
So what costs a $100 to do in Claude cost literally, like, 15¢.
00:33:31 [Speaker 3]
So China is wanting the AI war right now, but I don't know what Zach meant there.
00:33:35 [Speaker 3]
I'd love to hear y'all's opinion because it does impact I mean, we're energy, but energy is what's powering data centers and AI.

00:33:45 [Speaker 1]
Yeah.
00:33:45 [Speaker 1]
I think you're gonna see a couple of things on AI.
00:33:47 [Speaker 1]
One, open source models being adopted in The United States and simple little models for simple little projects.
00:33:59 [Speaker 1]
And you don't need the all inclusive Fables or Astra to be able to run everything.
00:34:05 [Speaker 1]
So we're gonna see that.

00:34:07 [Speaker 1]
At some point, NVIDIA is gonna get their open source model out.
00:34:11 [Speaker 1]
I bet people start using that.
00:34:14 [Speaker 1]
I think we see a break at some point where people just start using the Chinese models.
00:34:19 [Speaker 1]
And once one person does that, everybody will do that.
00:34:23 [Speaker 1]
We saw that with, you know, Japanese TVs back in the nineteen fifties, etcetera.

00:34:31 [Speaker 1]
So I I I think we're gonna see prices actually go down because of competition, good old fashioned competition, where I think the the narrative's been they're just gonna get more expensive because they're doing more and more.

00:34:49 [Speaker 2]
Yeah.
00:34:49 [Speaker 2]
And in the meantime, there's a lightning round item that I think applies here.
00:34:55 [Speaker 2]
I don't know if you guys saw yesterday, the governor of Texas, governor Greg Abbott, issued an order to the TCEQ to stop issuing permits for any data center project in Texas.
00:35:09 [Speaker 2]
This is not only grid interconnect and the ERCOT backlog under badge zero.
00:35:16 [Speaker 2]
This is a this is a another layer of executive order, which, again, I think is more about the governor looking for populist support heading into the November election than anything else.

00:35:28 [Speaker 2]
But it adds another kinda stall or layer of inertia here, and, you know, that affects across the board, grid connected and and behind the meter.

00:35:42 [Speaker 3]
Wait a minute.
00:35:44 [Speaker 3]
But I I I I I read that differently.
00:35:48 [Speaker 3]
Abbott's freeze covers state permits.
00:35:51 [Speaker 3]
Behind behind the meter projects do not touch the grid.
00:35:54 [Speaker 3]
They don't use public water.

00:35:56 [Speaker 3]
They don't need the Texas, commission environmental quality or TCEQ emission permits.
00:36:05 [Speaker 3]
Do they?

00:36:05 [Speaker 2]
Yeah.
00:36:06 [Speaker 2]
TCEQ governs all emissions permits.
00:36:10 [Speaker 2]
You can have a standard permit, which is up to, you know, I forget what the single source generation emissions limit is, but it's several 100 megawatts per site.

00:36:21 [Speaker 3]
And so I I think this freezes, like basically, what this does is it accelerates behind the meter.
00:36:27 [Speaker 3]
Because if you can't get a grid connect permit in Texas, you go behind the meter.
00:36:32 [Speaker 3]
I think Abbott's making the case for, like, go behind the meter.
00:36:35 [Speaker 3]
I I I do not think you need TCEQ regular TCEQ permits to do behind the meter.
00:36:43 [Speaker 3]
Are you seeing it?

00:36:44 [Speaker 2]
You you absolutely need a TCEQ, at least a standard permit for emissions, whether you're behind the meter

00:36:50 [Speaker 4]
or not.

00:36:51 [Speaker 1]
Okay.

00:36:52 [Speaker 2]
And it depends on where it depends on where you are.
00:36:54 [Speaker 2]
And if you're in a nonattainment zone, then that's an EPA layer of federal regulation, which is why you're seeing a hard push to unincorporated, places that are outside of, nonattainment zones, particularly in the Permian.
00:37:11 [Speaker 2]
You wanna stay clear of anything to do with the Texas Water Development Board for source water.
00:37:17 [Speaker 2]
But I think Chevron even commented that this was expected.
00:37:20 [Speaker 2]
This is not an existential threat to Kilby at all.

00:37:25 [Speaker 2]
But, you know, because they did say explicitly when they announced that project that, you know, brackish water and even produced water recycling ultimately were on the, were on the table.
00:37:36 [Speaker 2]
And I was thinking about this last night after after reading it.
00:37:41 [Speaker 2]
You know, this this is clearly kind of the two minute drill political offense that that Abbott is playing here heading into November when, you know, we've we've talked a lot over the last several years about an even bigger problem that is, you know, part of an entrenched industry, something that the governor's office has not addressed, at least to to my knowledge, with respect to the Railroad Commission, what's going on with produced water disposal.

00:38:15 [Speaker 1]
Yeah.
00:38:15 [Speaker 1]
Good point.
00:38:16 [Speaker 1]
Coming coming way out

00:38:16 [Speaker 2]
of left field.
00:38:18 [Speaker 2]
Now all of a sudden, you know, we've got we've got massive, populist issues on the whole push for data center build out in Texas starting with the grid and by zero and ERCOT, etcetera.
00:38:32 [Speaker 2]
And all of a sudden, kinda putting the brakes on for a few weeks.
00:38:37 [Speaker 2]
They've t's TCEQ has until October 19 to respond.
00:38:42 [Speaker 2]
And and I, you know, I get that.

00:38:44 [Speaker 2]
We want we want good license to operate, compliance.
00:38:48 [Speaker 2]
We want above and beyond by industrial operations no no matter where it is.
00:38:54 [Speaker 2]
But, you know, as as we've talked about in the past, what's what's largely had mostly band aids and and a lot of rhetoric around it, Why why the, you know, why kind of the strident push here?
00:39:09 [Speaker 2]
And and I think cynically going into November election, that's why we're seeing, you know, kind of the lightning rod issue, which is data centers in in Texas.

00:39:20 [Speaker 3]
I mean, I'm I'm skeptical here.
00:39:22 [Speaker 3]
I think I think, you know, Abbott's a rhino, and maybe he's looking for kickbacks in in different way that comes in different forms.
00:39:32 [Speaker 3]
I I'm I'm gonna do some research.
00:39:34 [Speaker 3]
We'll come back next week and talk about whether the TCU if this is really if if if his mandate is really a behind the meter, not behind the meter issue, if it's everything, I'm I don't know how that's gonna help in the November elections.

00:39:51 [Speaker 2]
The the way I read it, it's a blanket order for TCEQ in terms of issuing any kind of data center related permit, and that would include emissions permits for behind the meter.

00:40:02 [Speaker 3]
Alright.
00:40:03 [Speaker 3]
Do you still I I trust you, Mark.

00:40:05 [Speaker 1]
I mean, the the hope I have, and maybe I'm being a little cynical, is he plays the politics through November.
00:40:13 [Speaker 1]
You have the midterms.
00:40:15 [Speaker 1]
Whatever happens kinda happens, and then we sit down and be thoughtful about it.
00:40:19 [Speaker 1]
Could I live in a world where, hey, guys.
00:40:23 [Speaker 1]
Behind the meter, go ahead and just build it, knock yourself out, commit to selling excess power to the grid.

00:40:30 [Speaker 1]
Sure.
00:40:31 [Speaker 1]
That's great.
00:40:32 [Speaker 1]
Maybe some sort of study needed if you're gonna connect to the grid, but let's have it be a quick study, not a huge, burdensome study.
00:40:42 [Speaker 1]
But, you know, again, I go back to that point of we have to win the AI race.
00:40:47 [Speaker 1]
And quite frankly, the only place on the planet that really has all the resources to do it is Texas, and we owe this to the rest of the world to win

00:40:58 [Speaker 3]
this race.
00:40:59 [Speaker 3]
Well, Zach Chips made another comment.
00:41:01 [Speaker 3]
He's one of the guys, live listening saying, let the Chinese have AI race.
00:41:06 [Speaker 3]
I think it brings democracy.
00:41:09 [Speaker 3]
What are your comments to that, Chuck?

00:41:11 [Speaker 1]
No.
00:41:11 [Speaker 1]
I I I think, you know, and we've talked about this on here that, the one thing we've always known about education is that one on one tutoring matters.
00:41:22 [Speaker 1]
The one thing we've always known about democracy is communication and the ability to organize is the path to that.
00:41:31 [Speaker 1]
And AI does both of those things.
00:41:33 [Speaker 1]
And so having that in every citizen of in China, in The Soviet Union, go to any of the other authoritarian regimes in the world will be a really good thing for humanity.

00:41:48 [Speaker 1]
So my my my thing when I say we have to win the AI race is we have to win we always have to have the most powerful models because the the models can be used to do bad things, but more powerful models can also stop the bad stuff.
00:42:05 [Speaker 1]
So that that's what I mean by that.
00:42:06 [Speaker 1]
But, yeah, I want AI in the hands of of everybody on the planet.
00:42:11 [Speaker 1]
I think maybe I'm being a little Pollyanna glass half full, but I truly think it's gonna be a great thing.

00:42:17 [Speaker 3]
Hey, Zach.
00:42:17 [Speaker 3]
Zach's saying, I'm so confused what this race even is.
00:42:21 [Speaker 3]
And I kinda go down to that as well.
00:42:23 [Speaker 3]
I I think from a competitive perspective, if you're in a a US based company, if you're the government, get out of the way.
00:42:34 [Speaker 3]
Like but US based companies are always technically competitive as hell.

00:42:39 [Speaker 3]
But DeepSeek's buying the market.
00:42:41 [Speaker 3]
I'm just gonna make a side note.
00:42:42 [Speaker 3]
It's a little bit of a joke, but I've burned almost half a billion tokens, almost 3,000 API requests, and that's cost me $3.12.
00:42:52 [Speaker 3]
I've been running a little deep seek experiment.
00:42:55 [Speaker 3]
Here's the problem.

00:42:56 [Speaker 3]
Sometimes I will run something, and I will cut and I'll copy and paste it and put it into an app to listen to it while I'm, like, playing golf or I'm riding my bike to the golf course or to to surf.
00:43:09 [Speaker 3]
And the two DeepSeek ones that have cut and paste, at the end, it it'll read it to me like what it's like, what I've asked it to do.
00:43:19 [Speaker 3]
At the end, it starts talking to me in Mandarin.
00:43:22 [Speaker 3]
I'm like, wait a minute.
00:43:24 [Speaker 3]
There was no Mandarin in the output, but but it starts talking to me in Mandarin.

00:43:29 [Speaker 3]
I'm like, uh-oh.
00:43:30 [Speaker 3]
Do I need to learn Mandarin?
00:43:32 [Speaker 3]
What's happening?

00:43:33 [Speaker 1]
You know, this kinda reminds me of when I was a kid.
00:43:36 [Speaker 1]
You know, I'm the oldest of four boys.
00:43:38 [Speaker 1]
And one summer, we decided we were gonna dig a hole to China.
00:43:43 [Speaker 1]
And so every day, me and my brothers were out there just digging away on this hole.
00:43:48 [Speaker 1]
And at night, my dad would sneak out there, and he'd put, like, chopsticks and fortune cookies into the hole.

00:43:55 [Speaker 1]
We kept running in.
00:43:57 [Speaker 1]
Mom, we're close.
00:43:58 [Speaker 1]
We're so close.
00:44:00 [Speaker 1]
So long as it's fortune cookies and chopsticks in the hole, and that's China's AI, cheap knockoffs of us, we're good.
00:44:09 [Speaker 1]
We, we just need to have the most powerful models in the hands of US and US based companies.

00:44:16 [Speaker 3]
Well, you got it.
00:44:16 [Speaker 3]
You're you're Clyde, man.
00:44:18 [Speaker 3]
Like, you're you're holding one of the most powerful models is right here.

00:44:22 [Speaker 2]
Yeehaw.

00:44:23 [Speaker 3]
You're in the you're even you're in Clyde offices right now.
00:44:27 [Speaker 3]
What else do we got, Mark?

00:44:28 [Speaker 1]
There we go.

00:44:30 [Speaker 2]
You know, I think that's a good ender.
00:44:32 [Speaker 2]
You know, we've we've got airlines cutting, potentially cutting routes in the heavier travel season.
00:44:40 [Speaker 2]
American Airlines said the, you know, the dollar increase in jet fuel is gonna hit their fuel cost to the tune of a billion dollars.
00:44:48 [Speaker 2]
So these are you know, every penny, I believe, is a $100,000,000, to to the airlines, which is you know, we're starting to starting to see some discretionary decision making around what, what's going on with, with retail fuel cost, wholesale fuel cost in The US.
00:45:08 [Speaker 2]
And, Zach, we Zach Zach, we wanna thank you for your comments.

00:45:11 [Speaker 2]
It sparked a lot of good discussion.

00:45:14 [Speaker 3]
Yeah.
00:45:14 [Speaker 3]
It's been great.
00:45:14 [Speaker 3]
I mean, we we know what's gonna happen with these high d diesel prices.
00:45:18 [Speaker 3]
Your beef's going way up.
00:45:20 [Speaker 3]
So you're gonna what what are we gonna hear in about three weeks?

00:45:24 [Speaker 3]
Ban ban beef because it's bad for the environment because it's too expensive for diesel.
00:45:30 [Speaker 3]
But then that corn that you eat, Mark, and I know you like it kinda Mexican style with a little crema on top, that's gonna go up in price.
00:45:39 [Speaker 3]
Everything we eat is gonna be expensive.
00:45:43 [Speaker 3]
It's gonna be too expensive to fill your car up.
00:45:46 [Speaker 3]
I mean, we're going into a massive we have to be going to a massive recession.

00:45:52 [Speaker 3]
I mean, we this is this is what we've been talking about this the entire summer.
00:45:57 [Speaker 3]
Since the Iran started the Iran war started with the conflict, we're now, what, months and months downstream.
00:46:06 [Speaker 3]
And what are we talking about today?
00:46:08 [Speaker 3]
We're talking about the Saudis that for the first time ever in history told the entire continent, we're not shipping to you anymore.
00:46:19 [Speaker 3]
We can't deliver in for a whole month.

00:46:22 [Speaker 3]
And then that continent has already basically shot themselves in the face a couple times because they don't like, they've scared every oil and gas company off the continent.
00:46:33 [Speaker 3]
And then you've got here in The US, the politicians, like, let's shut down data centers.
00:46:40 [Speaker 3]
But also what I think is scarier is let's keep diesel in The US, which will just implode the oil and gas companies and create a recession here, I think.
00:46:50 [Speaker 3]
I for sure, it'll help domestic companies that aren't dependent that need the cheap diesel prices, but overall, that's gonna screw the country long term.

00:46:59 [Speaker 1]
Somebody somebody in our industry needs to get out and make the case.
00:47:05 [Speaker 1]
Hey.
00:47:05 [Speaker 1]
It's not us.
00:47:06 [Speaker 1]
It's not our fault.
00:47:08 [Speaker 1]
You won't let us build infrastructure.

00:47:11 [Speaker 1]
You won't let us build redundant systems.
00:47:15 [Speaker 1]
You know?
00:47:15 [Speaker 1]
We can't fire up a refinery right now if we wanted to because of you.
00:47:22 [Speaker 1]
And it's not the energy business that should be taking the fall for this.
00:47:26 [Speaker 1]
And, unfortunately, that's gonna happen because none of our folks are any good at making the case of, no.

00:47:33 [Speaker 1]
This is really the the doomsayers, the environmentalists, the folks that say no.

00:47:43 [Speaker 2]
Did we have another comment, Kirk?

00:47:46 [Speaker 3]
We're gonna let's talk we actually have one.
00:47:48 [Speaker 3]
Clay Walrich, Going back to the deep sea comet, do you guys have a preference towards GPT six fable 5.1 or some other model?
00:47:58 [Speaker 3]
I don't know.
00:47:58 [Speaker 3]
What let let this is a good pitch for Clyde.
00:48:01 [Speaker 3]
What is Clyde using?

00:48:03 [Speaker 1]
So we can we're rags, so we can toggle on any of the models that that you wanna use.
00:48:09 [Speaker 1]
And, we use a lot of, OpenAI models, use a lot of Claude models.
00:48:16 [Speaker 1]
The interesting thing I think is gonna be the the latest and greatest GROC models that come out are trained on space, x type engineering stuff.
00:48:27 [Speaker 1]
So I'm thinking they're gonna be good applications for oil and gas type engineering stuff because Groc was, was trained on that.
00:48:37 [Speaker 1]
So that'll be an interesting thing to to play with.

00:48:40 [Speaker 1]
The,

00:48:41 [Speaker 3]
the other big 4.7 I've been running, it's it's super impressive, by the way.

00:48:48 [Speaker 1]
I've got my Grok bot chief of staff, up and running these days.
00:48:53 [Speaker 1]
And, so, yeah, it's the tools get amazing.
00:48:56 [Speaker 1]
The thing we're finding kinda more and more with this is the models are one thing.
00:49:04 [Speaker 1]
The infrastructure you put around it, the harness, the the rules, the loops, the data integration, that so far way outweighs which model you're actually using, for your application.
00:49:20 [Speaker 1]
So

00:49:23 [Speaker 3]
Thanks, Chuck.

00:49:25 [Speaker 1]
Cool.
00:49:25 [Speaker 1]
Well, guys One one

00:49:28 [Speaker 2]
one thing to end on, and I I have to share this one.
00:49:30 [Speaker 2]
I don't know how real it is, but someone called the FJC.
00:49:35 [Speaker 2]
It's their x handle.
00:49:37 [Speaker 2]
Taco Bell has been selected the best Mexican restaurant in America.
00:49:41 [Speaker 2]
I bring this up because you brought up Mexican food, Kurt.

00:49:44 [Speaker 2]
So Taco Bell has been selected the best Mexican restaurant in America.
00:49:48 [Speaker 2]
And that, my friends, is why we have an electoral college.

00:49:57 [Speaker 1]
That's, that's awesome.
00:49:59 [Speaker 1]
Alright, boys.
00:50:00 [Speaker 1]
So, we will see you next Tuesday.
00:50:02 [Speaker 1]
I love doing these things, live.
00:50:05 [Speaker 1]
And my parting shot is if you like this, please share it with a friend.

00:50:10 [Speaker 1]
Love the comments coming in.
00:50:12 [Speaker 1]
And James Casey, happy birthday.

00:50:18 [Speaker 3]
Take care.