3 Podcasters Walk in a Bar Episode #21 - Talks about the IRA is subsidizing, Market Update and more.

00:00 - Intro

02:15- Talks about Cementless Cement

4:15- Talks about Coal Usage has gone up

08:32- Talks about amount of Reserves

11:53- Talks about power structure and grid gets older

13:27- Talks about Renewables on the grid

14:58- Talks about the IRA is subsidizing

18:31- Market Updates

23:52 - Outro

3 Podcasters Walk in a Bar Episode #21

Stuart Turley [00:00:10] Hey everybody! Welcome to today. Today is not only a great day, it's a wonderful day because I'm here with two of my favorite compadres. Never had that really funny uncle as he is at a party, and he says these three guys walk into a bar. I have no the other two guys, and they are two podcasters here, and we're three podcasters walk into a bar. I got David.

David Blackmon [00:00:33] Black, B-L-A-C-K-M-O-N

Stuart Turley [00:00:35] I was trying to think of something else. David I had a senior moment and I'm over here going to David Blackmon, who is a Forbes contributing author. And I mean, he's got the energy question. He has got his substack He is a man about town, who just got back from a cruise. Welcome, David. Thank you for stopping by.

David Blackmon [00:00:54] I'm tanned and rested and ready to go Stu let's hear it.

Stuart Turley [00:00:58] Boy, last week you look like Doug. I mean, you came in hard partying, hard off of that groove. You could barely even move.

David Blackmon [00:01:06] Yeah, well, that's just part of the general vibe. I get lost.

Stuart Turley [00:01:10] I got nothing on that. Our next guy. Yeah, We don't want to dodge that one. RT is coming around the corner and about warp speed. RT is a head honcho over there at Pecos Operating Corporation, an amp operator in Texas Oklahoma. He's also the podcast host for the crew. Drew's the one and only Crude Truth. Welcome RT

Ray Travino [00:01:34] Hey, welcome. Welcome. Welcome to you, gentlemen. I hope everybody had a great game and am excited to be doing this again on this wonderful Monday start. What, every.

Stuart Turley [00:01:42] Day? We got an action-packed show today. We want to talk about some of that, as we say in a text Okay kind of slang some of that ESG got me and you got a couple that is going on there, Dude.

David Blackmon [00:01:55] I drink a quart of it a day. I think.

Stuart Turley [00:01:57] Oh my gosh.

David Blackmon [00:01:59] The carbon footprint shrinks all constantly.

Stuart Turley [00:02:01] I don't want to know about that. Do you have medication for that? Because I can.

David Blackmon [00:02:05] Do I got three or four of them pretty I got to call my doctor's office room or over to get a prescription removed.

Stuart Turley [00:02:10] So nice. Now, what was your article you were going to talk about? What our Well, we had.

David Blackmon [00:02:15] A really interesting announcement from SLB. You used to know this company is Schlumberger, a big oilfield service company that's now bills itself mainly as a technology company. And there's good reasons why they have been introducing a bunch of new technologies over the last year. And at Ceraweek this week, they rolled out what they're calling cement with cement,.

David Blackmon [00:02:40] Which is an alternative product to the cement we all use, everyone uses in industrial applications, construction, and across the entirety of the oil patch. Upstream, midstream, downstream, cement, and steel are the two main ingredients in oil and gas and in the oil and gas business. All right.

Stuart Turley [00:03:01] I can't wait to talk about this one. Explain to me in my stupidity since I went to Oklahoma State University. What the hell is cementless Cement?.

David Blackmon [00:03:09] Yeah. It's an alternative product that they source. They make it from waste materials, and locally sourced natural products, and they have run an 18 well pilot tasked with pioneer natural resources in the Permian Basin as a proof point on the effectiveness of the technology. And pioneers apparently very happy with it and continuing to use it for future operations. So that's a good sign.

David Blackmon [00:03:36] And, you know, the thing that makes this such an interesting, tenaciously game-changing technology is that the carbon footprint of carbon of cement is enormous. It's one of the biggest drivers. CO2 man caused CO2 emissions globally.

David Blackmon [00:03:53] And if you can develop alternatives with a much lower carbon footprint, it could be really impactful in the whole ESG debate. SLB says that this product lowers lifecycle carbon emissions compared to actual cement by 85%, which is a huge, huge reduction.

Stuart Turley [00:04:15] Call me, call me skeptical. But here's the thing we use currently, California's coal usage has gone up over the last several years because they use coking coal to make cement. So if we can get rid of coal usage, I'm in. But if we're using polychlorides and other chemicals that just took out Ohio, I'm not really interested.

David Blackmon [00:04:42] Oh, Vinyl Chloride now. Yeah, I doubt that's an ingredient here. I, I don't have all the details on it yet. I'm hoping to get an interview with one of their senior executives next week,.

Stuart Turley [00:04:53] Nice.

David Blackmon [00:04:53] To talk in more detail about it, and we'll have a subsequent report. But I wrote a story about it at Forbes on Monday. And, you know, just to get what details were in their release and out to the public and not trying to do a commercial here, but it. This is a significant thing. So I think everyone should be aware of it.

Ray Travino [00:05:12] Well, I'm just thinking, you know, as an operator myself, you know, being a pioneer, we have one thing in common water, oil, oil. Well, that's about it. But, you know, this is very interesting to hear because, you know, I know for us and anybody else, you got to seaman all around your casing and through your water source to protect the water source, which a lot of people don't. Don't understand that we do.

Ray Travino [00:05:37] Because, you know, again, we drink the same water, so we do our best. So it'd be really interesting to see how this, you know, again, how it holds up long term. And if the Pioneers already done this to 18 wells, that's not an I mean, in my opinion, I know Pioneer is a large company, but to do 18 wells, that's no joke today.

David Blackmon [00:05:58] That's pretty slow.

Ray Travino [00:05:59] Yeah, it's very significant. So they must be pretty happy with whatever the cement list cement is. And the Filby wants another smaller operator, give it a test drum, you know, Hey, you know, they could find a Pecos Country operator, and I can tell you that much I always about trying to save and protect the environment long term.

Stuart Turley [00:06:18] I am absolutely thrilled about this because of any energy tech we can use to save the carbon footprint. But Occidental Petroleum was probably a little upset since they're trying to enter into the 40 billion a $4 trillion market of carbon capture, they're going around destroying our market here.

David Blackmon [00:06:38] I think there's still plenty of other carbon emissions out there today.

Stuart Turley [00:06:42] Oh, okay.

David Blackmon [00:06:43] I don't think they're going to have any shortage of feedstock for carbon capture.

Ray Travino [00:06:48] No doubt. Oh, thanks, buddy.

Stuart Turley [00:06:51] Well, Artie, what's your story?

Ray Travino [00:06:52] Well, you know, here we are already in March, and I won't say about how the weather has been so far for March, and hopefully it'll continue and I'll leave it at that. But we didn't have a very bad winter. Yes, we had one or two days in December and one or two days in February. But as a whole, you know, the weather this winter was not very bad.

Ray Travino [00:07:14] And which is a very good thing, not only for us here in America but also in Europe. But one thing that I read today, it really is kind of a canary in the coal mine as the Arctic we've been using as an example, is up in the Northeast that their power grid is continuing to get older and that due to their regulations and their lack of pipelines and the old this of their infrastructure, that that is actually one of the largest power grids in America and that it is going to get I guess the best way to put it is they really need to start updating it or else we could see some major power outages and the most one of the most populated areas in America in the near future.

Ray Travino [00:07:54] And, you know, we've talked about it before that, you know, they have such old rules and regulations that really hinder them from getting all the modern necessities of getting more reliable natural gas to that entire northeast area.

Stuart Turley [00:08:09] You know.

David Blackmon [00:08:09] Yeah, you've had a blockade. Oh, go ahead, stay.

Stuart Turley [00:08:12] Oh, sorry. I learned a lot. Mike, You and I talked about Meridith Angwin on shorting the grid on her book. I learned a lot from her in our podcast. Same shameless plug on my podcast, but it's even more than that is there's another article that came out last week and we talked about the amount of reserves.

Stuart Turley [00:08:35] Soon as you throw the renewables on there, you got to add another 180% for the renewables instead of just adding 20%, which is the industry standard for natural gas and or a coal plant that you could use be