The duo is LIVE for Episode #12 for the 360 Digital Closing Bell for another wild week in energy. Michael starts by overview the big news that the Trump Administration is considering multiple lending methods to help struggling OG companies and rips into shale CEO's who will none the less still lay off employees while taking this direct lending option. They then shift to the top stories for the week, covering US sending crude BACK to Saudi, Shell cuts it dividend and Stu covers the international news desk. As always Michael covers the levels for the week, check in at the DOE inventory numbers and see how the shows official non-official fund is going. Contact the show: [email protected] / 303-907-6825 Sponsors:

Contact the show: [email protected] / 303-907-6825 Charts:

Key articles and show transcription is listed below video.  Thanks for watching! 

Key articles/Transcribed Show Notes *

Oil major Shell slashes dividend for the first time since World War II

Exclusive 360 Energy Expert Network Video Interview: Sproule – The oil and gas demand curve looking up with increased road traffic.

Exclusive 360 Energy Expert Network Video Interview: Tisha Schuller – What is the national treasure for the oil & gas market?

Haynes and Boone Replay: Weekly Energy Tracker Call 4-28-2020

Exclusive 360 Energy Expert Network Video Interview: Gregory Wrightstone -”We should use all of earth’s resources for the betterment of mankind, and do it as good stewards.”

*Automated Transcription by Trint and grammatical may be present.  

Episode #12- May 1, 2020

Michael Tanner [00:00:07] What's going on, guys? 360 Digital Closing Bell here I am, your humble, humble correspondent, Michael Tanner from an undisclosed location here in Denver.

Michael Tanner [00:00:17] Commend you for on May 1st here before the market opens. If you listen to this, it is Friday, like I said, May 5th, right before the market opens. We're recording this Thursday afternoon.

Michael Tanner [00:00:29] As always, I am joined by the purveyor of the show, the executive producer and the director of Oil and Gas 360, Stewart Turley. How you doing, man?

Stu Turley [00:00:38] I'm doing fantastic. It's a beautiful day in Dallas and we're open.

Michael Tanner [00:00:43] That's good. That's really great to hear. It's actually a little overcast here in Denver.

Michael Tanner [00:00:47] It's about actually eleven forty five Mountain Time to get to give you an idea. So if obviously there's any news. Things can happen between now and when you hear this.

Michael Tanner [00:00:56] We'll obviously update you with this. You know, like I always like to do a little inside baseball. Let people know how the how how the behind the scenes work is. I've always wondered. I like that. I like to give it a lap. But we have an awesome, awesome show lined up for you. We're going to talk public stakes in oil companies and if and if your head's exploding. Mine is, too, so don't worry. We have a great week back in the week of energy. We've got some excellent news stories. Three of a thousand barrels. Looks like they're going to be coming off per day in May and June. Personally, a little, too. I think it's a little too little, too late. But we'll check that out. Saudi crude is being shipped back to Saudi. Stew's going to come out of the international newsdesk and has some crazy stats when it comes to Shell's dividends. Obviously, we're going to take a look at those levels for the week. If you're a bull, you actually I think you actually see some good news if you're a bull on oil bears. There's a lot of volume to the downside. But like I said, we'll be right into it. EIA numbers come out really were shocking. And obviously we'll check in with our official non-official fund and look at how our picks are doing. But before that, we just need to do a little bit of clerical work. Please, guys, you're not subscribe to dish on I to Spotify or YouTube. Please, please do it. The best way to stay up to date on everything. 360 Digital Closing Bell. You don't subscribe to Entercom on Twitter. Please do it on Linked-In Oil and Gas 360. Entercom Follow McNee, Michael Tanner and Stuart Turley as well. It's the best way. If you fall all four of those, you will never miss anything that we put out. And I promise you, the content we are putting out is gold. We have great new interviews that were also probably on the Energy 360 network, one with Admati Energy Tisha Schuller backdrop last week, Gregory Whitestone, who's an Amazon best selling author when it comes to climate science, we dropped him. We also talk a great interview with some of the research people school. You can now finally hear the whole interview on the last episode. I gave away some an interesting fact from that about traffic is something which actually was confirmed. I was on another I was on another webinar with Rice Dad Energy earlier, which is really the only interesting thing I got out of that was some demand numbers, but we can get into that again later on. Sproule It was a great interview with them. Please check it out on the Energy 360 networks. We also will be dropping premiere oil field group at S.A.C. Specialties next week. You can actually check out we have a little we were starting to shoot commercials for those now. So there's word that they're pretty funny. You could check out all of that at W W W the oil and gas 360 dot com. Did I miss anything says anything else when you let people know what's going on?

Stu Turley [00:03:18] Oh, I think he got it all covered. But, you know, it's kind of funny. Just as a hair. Side note here, we were contacted by the Chinese Broadcasting Group because we weren't Asian. No.

Stu Turley [00:03:32] We're big, bad and rural. Why? They wanted to interview us based off of our oil and gas in depth knowledge.

Michael Tanner [00:03:39] Well, I guess we're gonna have to start doing the show in Mandarin then. All the story. We need to catch. Can we? Can we? I'll get Rosetta Stone. Can we get that as a chargeback? Can we get that budget approval for Rosetta Stone? Absolutely. Start doing two shows, one in English and one in Mandarin. We'll do after we order trends.

Michael Tanner [00:03:57] Another interesting thing, though, that before we get into is we're starting to transcribe the show so you can start to see all the transcriptions from the show. Very, very interesting. I don't know if any of you have noticed, but I talk kind of fast and sometimes I can guarantee that transcription is gonna get a little nuts. So I'm excited to start.

Stu Turley [00:04:17] It's called them the Michael Tanner charge. They're having to charge extra just to keep up with you.

Michael Tanner [00:04:23] Kevin, if if a physical human reading it. But I just want to kind of move into the show now. And really the first big thing I want to look at and really I think the biggest thing that is bothering people and is going to move forward is, is the idea that did that that was really floated today.

Michael Tanner [00:04:39] It was in a Bloomberg article that was actually repurposed by world oil. Got to love places like oil and gas. 360 dot com and places like I don't want to name the competitors, even though I just did another one taking articles that you didn't only have to pay for Bloomberg when you're free, article limit is up and they push him to a central feed.

Michael Tanner [00:04:57] And so you can read him. So that's one reason why you should follow oil and gas so you can see articles that you just necessarily can't see unless you have a Bloomberg subscription. This is a read. A Bloomberg article that talks about really the update on what the Trump administration is thinking about on how to help the oil and gas fill me. I'm pretty sure is everybody listening to this knows it's been a really tough time and it's for the oil and gas field. Obviously, Saudi Russia was the big thing that happened, but also the demand. I mean, like I said, I was on that webinar with Rice, that energy this morning. And really the only interesting thing I got out of that, besides some interesting corona virus demand numbers, which I thought was actual oil demand numbers because of Corona virus, they have it about 28 million barrels, but they had a pulled back pretty quickly. And really they only show about 5 to 8 million barrels being taken off when it comes to the end of the year, which actually I think is really good.

Michael Tanner [00:05:54] I would consider I mean, that's talking. You're going now down to only a 5 million of a million a day barrel gap.

Michael Tanner [00:05:59] I mean, it's at twenty eight right now, so that's twenty three million barrels that they expect to come back within a year, which obviously is going to really, really LPT when the gas leak is. That's what's hurting us right now. The 2 million barrels that Saudi and Russia tried to flood the market with. That's like bring it. I spring like a water gun, do a shoot out. It's bringing a little water down to a high noon shoot out. It's like, oh, look what I got. When you got do there's got a Colt 44 that's about to blow your brains out.

Michael Tanner [00:06:27] So really, you know, that's what's hurting us.

Michael Tanner [00:06:31] And so part of why I think you're seeing a lot of stuff come out about what's going to happen to oil and gas is because, you know, for a long time it's been suffering. It's been suffering before all this stuff hit, but it's only been exacerbated. And as we know, hundreds of thousands of people have been laid off. And if you want one of those people that have been laid off are we know that our house. I know I speak for you and I say, is our hearts go out to you? That is never a position that needs to happen. And unfortunately, it's been on the service side.

Michael Tanner [00:06:59] Right. It's not really the S&P companies who when we get into this plan that Trump has to announce how he's going to help the only gas industry. I don't think it addresses. And that's you know, I don't think it addresses the biggest part, which is the service companies who've been hit really hard.

Michael Tanner [00:07:14] So, you know, so, so, so so, you know, to kind of just get into it. Basically, there's there's you know, originally, as we all know, back when this whole started and then the virus happened.

Michael Tanner [00:07:24] There was the opportunity for the SPRO to buy about three billion barrels worth of oil, fill it up. And it was actually going to be a strategic petroleum reserve purchase of oil and they're going to store it in the reserve. Well, that got axed in the first wave of the Corona virus stuff. Everyone got twelve hundred bucks, but we couldn't figure out how to get three billion, which when you look at the deficit we're running right now is a drop in the bucket. We couldn't get that just to fill out the spqr. So it was beyond me. How much? So whatever way, we couldn't get that figured out. And we basically, you know, the free market has really driven this market to where it has been today. There's been no government intervention. Pretty much every single industry airlines have seen a bailout. Multiple other industries have seen specific bailouts. We're actually on a Hayne's and Boone call where they went over the traditional main lending programs about about what's available to small businesses in terms of economic relief due to Corona virus. But now what's getting floated out in this article dropped yesterday, so this is going to be Wednesday for twenty nine. And what they talked about was the plans that are being floated by President Trump on what should be done to the oil and gas industry. It's sort of the final, as you know, the news is putting in the final industry that needs to get checked off. And there's a couple of things that they that they're that they're being flown in. I want to kind of dove into them a little bit and then give just sort of my high arching thoughts on where I think the oil is going. So the first thing that's being proposed is, well, there's really two high level things being proposed. One, loan programs and SPDR storage under loan programs. You're seeing two options being floated. One of them being bridge loans and the second being emergency lending. And the goal is to try to push that to small and medium sized businesses. Basically, what that looks like is that the government right now is there's this main lending program that every small business just under. Again, this is a shameless plug to the Hayne's and Boon Weekly Energy Tracker. Their energy practice, guys, did a great job last week or last week, last Wednesday. So yesterday or Tuesday, it's Tuesday every week, right?

Michael Tanner [00:09:28] Yes, Tuesday every week.

Stu Turley [00:09:29] It's Tuesday. So is this Tuesday.

Stu Turley [00:09:31] They did a great job of going over actually the details of what each of these lending programs look like. And really, there's the PPE, which everyone talks about, which is the payment protection program. There's this main lending program that is available to people who know businesses will qualify under the paper. And then there's other. They set it up. Other lending devices. And really what the government is doing right now is they're evaluating whether or not oil and gas companies fit into that.

Michael Tanner [00:09:53] And there's a lot of specifics in this that make this interesting, because right now you can't use them, whether it's the main lending economic disaster program, whether it's the normal program that they have for disaster relief or the payment protection program. None of that money can be allowed to reserve its debt. And right now, that's what's killing the oil and gas field, is they would use this money to repay existing debt. Well, clearly, you don't want that. If you're if you're the government, you want to be loaning someone money that they're just going to use to pay down debt. You ideally want them to keep people employed, not lay people off.

Michael Tanner [00:10:30] And so that's partly why they're working through some issues here, because they understand the biggest issue in the oil and gas field is debt. And so that's where you see these bridge loans and emergency lending. And the goal is to get it to companies that need it and can't get access to capital. You know that the majors we're not talking about BP, Shell, all of these are. You know, BP X now excuse me. They're subsidiary that spun off, you know, Chevron, Exxon.

Michael Tanner [00:10:55] These people have access and have good enough credits, have access to capital. They can go out now. All of them have gone out, restructured in small to mid sized companies. Don't. That's partly why that's where you're seeing them take their time and figure out, OK. Do any of these small businesses do any small business? I'm doing that in quotes for the podcast. Small oil companies.

Michael Tanner [00:11:12] Do they qualify for payment protection or any of the main lending program? And if they don't, how can we give them give them money?

Michael Tanner [00:11:19] And that's basically what's being floated by as one. So that's sort of high level part one that's going that they're talking about giving some sort of economic relief package in some way to directly to oil and gas.

Michael Tanner [00:11:30] The second thing they're doing is they're really still looking at SPDR for what they're doing is they're not looking at it from a filling up perspective, because if you really get it given to the numbers on what it would take to fill up the SPDR, really there's already about nine companies who have agreed to fill up the SPDR to its Mique complete maximum, according to Undersecretary of Energy. Basically, the last year's mission ready to do about six hundred and eighty five thousand barrels per day. The problem is it's sour. It's not the good stuff. It's not the crude that we have a glut of. It's good. It's sour crude. It holds a lot of crude that comes from Louisiana. A lot of these other areas where, to be honest, mean the production wasn't high. We had so much light sweet crude sitting at Cushing and sitting in all of these other reserves that cannot be shipped down to the SPRO to be stored because you just can't mix those types who just completely destroy the blends. So it doesn't really solve the issue, in my opinion, to fill it up. And that's why they've moved on to this even spicier option of SPRO storage.

Michael Tanner [00:12:34] And, you know, follow me on this one. What they're going to do is they're going to buy undeveloped oil reserves. They're going to buy from a company undeveloped oils and claim them as U.S. strategic petroleum reserves, which is a slightly crazy I have crazy idea. But basically it's if you're an oil operator, you're going to get paid not to drill.

Michael Tanner [00:12:55] It's almost like crop rotation when it comes to farmers. You have to rotate your crops not only for your soil, but certain times of year. The government subsidizes you not to grow soybeans because we have so much.

Stu Turley [00:13:06] Can I ask a question? Yes.

Stu Turley [00:13:09] They get money for doing this. Right. They get money for doing this and they go out of business. What happens?

Michael Tanner [00:13:16] Well, I think that's sort of the point. I mean, that never we do we now we can do something. So. So you bring up a you know, with all of this stuff brings up a great point. So what does this mean? We're we're looking at paying oil companies not to drill. What seems crazy. We're already filling up the SPDR. We're going to give bridge loans and emergency lending to oil and gas companies. Why? What does this mean? And really not. What does it mean? But but but it's really what do you believe in? And in my opinion, I think this is a terrible thing.

Michael Tanner [00:13:52] I mean, really, I think the people who are pushing for this in a really hard or industry insiders who hold massive long equity positions in these large companies are the only people that want this. Because, you know, let's just be real here.

Michael Tanner [00:14:05] Shell oil companies in the past eight years haven't produced one single free cash flow statement on a 10-K. And if they have, it's been lost in a sea of losses and reinvestment and stock buybacks. And let's be real. Baj executive compensation program. So who's to really say that when you give these companies, these Shell oil companies who are hurting the most? Just more money that they're not going to continue to do the same thing that they've done, pay off debt, restructure their companies, increase bonuses and buy assets at extremely high court. I know. Right. So excuse me for being skeptical that I think this money is actually going to get utilized to what I talked about in the which is service company.

Michael Tanner [00:14:51] I mean, really, what who's laying off people is service companies. I I have multi-line I would just call the school month, which is a really large petroleum engineering school. You don't know how many people I know that they're getting laid off. And those companies is it is really, really sad to see those are the companies that need some sort of direct lending. It's not your Shell Oil companies. And we don't need to name names because you don't need to. But if you're on if you brought ETF Twitter, there's names. Be a name so you can get you can get all the names you want and all the inside information you want. But you know, and so that's how I see it. I think the way we're approaching this from a bridge loan it from a loan standpoint and from an s PR standpoint, yes, we have to do something. I don't think we can stand idle.

Michael Tanner [00:15:35] But giving loans to oil and gas companies to pay off debt who have originally who have not just who have who have no. And I guess what I'm saying. Who have no inclination that they're going to change their direction. I mean, you want to I mean, this brings up a very interesting article that I.

Michael Tanner [00:15:55] An article I read on Reuters. And this is going to start doing a new segment. They will call what, reporter of the Week?

Michael Tanner [00:16:02] She can be called REPORTER of the week is that finds do fake news of the fake news reporter.

Michael Tanner [00:16:08] Well, no, this is a real this is a real art. Unfortunately, it's not fake. It's a real article by someone at Reuters. I'm not going to call out the person's name, but just know this was an article that got read on Reuters. It was talking about Chesapeake.

Michael Tanner [00:16:20] And, you know, I'm just gonna read it in all its glory. You let you, the listeners decide and this is this is this a quote, Shark week. Chesapeake was trying to pivot from gas to a greater emphasis on oil production. When a Saudi Russian energy price war earlier this year up ended its plans and the wider crude oil market, it was dealt another blow by the Corona virus outbreak, which caused energy demand to dwindle by studying large swaths of the global economy.

Michael Tanner [00:16:45] Oh, yeah, yeah. Great investigative research. So you're telling me that if it wasn't for Saudi Russian price war and the Corona virus out, the Chesapeake would have been great know. Oh, really? Let's. That needs to be pushed out of oil and gas to be 60. Get that one up on there. Yeah. That side tracks so close the Chesapeake's can now gonna get a bailout from these bridge loaning programs and they're gonna spend it wisely. I just I'm skeptical. Your thoughts? I've ranted.

Michael Tanner [00:17:17] I've I've I've got myself too worked up at this point. Do you have anything on this gloomy public stakes in oil companies? I mean, really, that's what it comes down to. It's not really they're not taken equity positions or at least they haven't talked about it yet. But I mean, that's really what this is going towards you. What are your thoughts on this?

Stu Turley [00:17:32] I I believe in the free market and I'm very scared because you just brought up a good point is they haven't talked about it yet.

Stu Turley [00:17:40] But there are other government officials out there right now talking about wanting to put ownership into company energy companies, not just oil and gas, but just energy companies. And it's kind of frightening to think of the government controlling energy. That's a backbone.

Stu Turley [00:18:02] Yeah. And well, that's one thing and then. So, yeah, that would be that would not be a. I mean, do I think that, you know, the problem I don't think is this administration, it's another administration.

Michael Tanner [00:18:13] It's a tax. It's not. You know, I think people are. When people look are looking at public stakeholder, it a. Yeah, sure. You know, this administration and generally the Republican Party is more in favor of oil and gas and probably leaning.

Michael Tanner [00:18:26] But who's to say a Democrat or a third party candidate who's against energy when, say, either in twenty, twenty or twenty twenty four is going to be not only going to be pro energy people that occupy the White House. So who's to say when that person comes in they don't be able to decimate because now they have stakes in companies they're sitting on. The president sitting on the board.

Stu Turley [00:18:47] Well try this one on George W. Bush put in with the ethanol and that program was. Absolutely.

Stu Turley [00:18:57] Have you ever tried to run ethanol in a car and have. It is a good thing. Ethanol is not good for the engines. So, no.

Michael Tanner [00:19:06] And that brings up something that people should watch. And I know you want to bring us. I'mma let you do that. Oh, no, go ahead. I guess this was forwarded to us by a colleague, Dan gentes, who's the director of Consulting's at Entercom.

Michael Tanner [00:19:19] It was a YouTube video that we're actually shooting a commercial for an interview that the S.A.C.. I'm pretty sure it was S.A.C. who we are shooting interview for. And he sent us. It's the new I'ma let you describe it. But it was it's a it's a Michael Moore documentary. And it was an hour and 40 minutes of extremely captivating stuff on renewables.

Stu Turley [00:19:41] And we're aiming trying to get Michael Moore on the show so that we have to various entertainment where bands reaching out to him right now.

Michael Tanner [00:19:49] We would get and see this is where like I'll set we're gonna send him this. We would give him a fair shake. Like, this is not got we're not we wouldn't play gotcha journalism. I mean, I'm not a journalist, so I don't even like to say that because I'm not a journalist. I just ask questions. So, like, we're not going to you know, we're it's gonna be good because really this I mean, I don't want to spoil your ovary, but this was just a crazy, crazy movie that just broke.

Michael Tanner [00:20:14] Just like a lot of our folks have said, we like hearing both sides. There's two sides to every story. And then it's not necessarily saying, hey, one's right or wrong. I like having all the data. Like a lot of our clients, the this the the thing I'm Michael Moore is just nutty.

Michael Tanner [00:20:33] He got most of the movie was called Planet of the Humans. And what was like you get to give the listeners a new look. Oh.

Michael Tanner [00:20:39] Looks like I thought he was going after all of the renewable energy, the battery, solar. He went nutty on these guys. And that's something that I just would not have expected from Michael Moore.

Michael Tanner [00:20:54] Yeah. I mean, his his thesis is pretty clear. He's not. It's not a pro fossil fuels movie, but it's definitely A.I. renewable energy. And it kind of echoes a lot of stuff. People in the energy industry has been saying for a long time is that, you know, really creating wind farms in the in the aggregate generate and produce more and require more energy use, which comes from coal, natural gas and crude oil than if you would just continue to just use crude oil and natural gas to heat.

Michael Tanner [00:21:26] I mean, it's really fascinating. He goes hard at the environmentalists. You can see it on YouTube. It's called Planet. The humans don't like a half million views. And it's getting it's getting a lot of it was crazy. I need to know this drop. I didn't know it was coming. So I highly recommend watching that. We are going to get that repurposed on oil and gas 360. Can they watch it there or just we just push it to the YouTube.

Stu Turley [00:21:50] Just push it to that YouTube. You and I are going to have a special on it. So we're gonna do our own special and we're going to try to do our own because it brings up a really good analyzation that we're doing on. So this is personal opinion. Two and a half seconds. Let me rant. And I think that energy. Poverty and has a energy pie. It an all 100 percent relationship and we have to be good stewards of the environment. Let's take Governor Cuomo. I ranted on this the other day. Why are we shutting down a perfectly good nuclear reactor that's already paid for? Yeah, it's better meuron safe. Why a balanced approach to power through hydroelectric, through natural gas, through nuclear is the right way to go. Sorry, I ran in Tono.

Michael Tanner [00:22:55] You're allowed to read. I love it. And I. Yeah, I mean, I know that again, we'll save all that stuff for the special for for wood that it's like a guy.

Michael Tanner [00:23:06] It's almost like what you all got to watch the movie. While the recap podcast on it. Oh yeah. Recast podcast. But we've got a little side track. All I think this is to say is that public stakes in oil companies. Yikes. I'm not convinced if these loans were given. They're even going to be spent wisely.

Michael Tanner [00:23:29] And you're going to see people retained. I think the majority of people getting laid off are in the service industry.

Michael Tanner [00:23:35] So we'll see. I think I know this SPDR storage stuff could be interesting. I again means do I think we're on the same page?

Michael Tanner [00:23:41] We're free market guys and I'm generally skeptical whenever I hear the government's going to get involved. That being said, I think we need to check out kind of the main stories that happened specifically in energy last week. But before we do that, I see to tell you about our friends at Sandstone Capital Group. These guys do insanely good research. They provide levels, all of the levels and all the research that you see in this package. They provide it via their energy clipse solution. These guys are rock solid. They're actually gonna be starting to write some articles for oil and gas, 360T We've got them onboarded as contributors. That will be really fun to see. If you want to check out what they could do, go to sandstone S.G. dot com or give me a call. 9 4 9 5 6 1 18 18. All right. My stories for the week. Really? This was a prediction that, you know, really the big thing, you know, from a trading side I predicted three weeks ago I mentioned this on my LinkedIn page yesterday that I was expecting three to four hundred thousand belled that would be taken off the market these past three weeks. And it's been completely raw. Only about one hundred thousand barrels have been taken off each week. And there was this news article that dropped from oil, gas be dot com this morning. That talk that talked about stat energy specifically mention that they are projecting now May and June have the three hundred thousand barrels per week or per day on a weekly rolling average basis be pulled off. You know, I think it's too little, too late. I was calling for this a week or know a couple of weeks earlier. Clearly, it was along deaf ears, but. It is hard to shut in stuff, and that's actually on Monday we're going to be running a segment with a we have a new guest. I can tease this segment a little bit. It's a reservoir engineer with a really large, large operator in Texas. And really what his expertise is, is easy. He's working, too, right now. What wells do we shut in and what wells don't we?

Michael Tanner [00:25:23] And he's going to kind of walking through, you know, what is a corporation from a corporate level thinking about that. So. Really, I think what what you're seeing and reflected in that number is what Brett's going to talk about is they finally worked through what wells are we starting off? Which ones do we think are going to turn back on more efficiently? Which ones do we think, you know? You know, you don't want to you know, the shale wells or high producing shale wells you drilled last year probably going to come on much quicker. But that's going to cost you a little more than if you just shot in save. You know, as we mentioned in the last podcast, majority of wells in the country produce less than our bills a day. There is no guarantee you shut that well and it comes back on. So how do you, you know, range that?

Michael Tanner [00:26:01] You know, Nick Barry gave us a great analogy of would you rather park a Ferrari in the garage or have two hundred clunkers sitting in your junkyard? And that's basically the difference between maybe some of these stripper wells and these new high court shows. I make the argument like I'd rather shut in my teeth. It's a nice little midsized sedan. So I think that's really what you're going to see. And that that would be my recommendation if someone asked me, you know, let's take your mid range performing wells, shut that portfolio. We want to keep your small base on. Just wanna make sure that doesn't go away because eventually price is going to rebound and we're going to be able to you know, we're gonna pump back up to twelve point.

Michael Tanner [00:26:37] You know, we're gonna get above twelve million barrels of oil production per day from the US. Don't worry. We'll be back there. We'll we'll all make the same mistake again. So you can keep those wells on. Shut your range down and maybe keep your high cap on.

Michael Tanner [00:26:50] But to be very interesting to see what or what our source says. And you will hear from him Monday. Another shameless plug. The other article that I just read that dropped the other news item that I thought was interesting dropped yesterday, the Reuters. And this is something that I heard actually on when I on Tuesday, Wednesday. And it was very interesting to see it recorded. It was this was that physical traders in the US are now stopping incoming Saudi oil tankers that they've already allocated to come in. They're turning them back around. So these are these are not this is not storage floating on the sea on the Atlantic right now. This is they already purchased them in a designated for physical delivery. They're now turning them back and saying, make the trip. That's expensive. These things, these VLCC, as they call them. This is what these big tankers are. They're going to make two hundred thousand.

Michael Tanner [00:27:37] Oh, Danny, that's a large chunk of change that just punches an offshore drilling rig, if not more. So I was I was, you know, not shocked. I wasn't shocked to hear that. But it's you know, it's still the economics are just getting absolutely destroyed.

Michael Tanner [00:27:53] And people are eating, you know, millions of dollars to just send this crude back. That's what's crazy. How about how that journey is like four days? They it makes that journey. So we talk and that's that's a cool mil Kuwait. Hundred thousand to a million depending on staff costs. That just did not take inventory.

Stu Turley [00:28:14] And not to mention the pollution and pounds of cargo. I mean, 'scuse me pounds of CO2 that are put out, Fred.

Michael Tanner [00:28:25] He's a fan, though. Gregory's a fan. Oh, I know. So but, you know, think about useless materials being wasted now.

Michael Tanner [00:28:33] A lot of waste. Lot of waste. And it's just it's just interesting. I mean, it makes sense. Freight costs are high, but it's just crazy. All right. International news next time. Do what do we got?

Stu Turley [00:28:43] Well, I thought was kind of funny. Shall chunked out this morning. Let me get to there. Oh, yeah. I saw this. Yeah, there's two there's two stories. Just real quickly, I got to give a shout out to our governor in Texas, Greg Abbott.

Stu Turley [00:29:00] Governor Abbott, he did a good job this morning. We're opening up tomorrow. But the ESG point of this. You brought up yesterday on our call. Let me get this right here with you, Parker McConnell. You talked about that yesterday. You know, the stock market went up. Everybody loved it. And everybody but everybody.

Michael Tanner [00:29:29] Everybody. But the 34 million people who got laid off this week, that's a whole nother rant. We could do OK.

Michael Tanner [00:29:35] Sorry for ranting on that.

Stu Turley [00:29:36] But if the oil and gas industry and the energy industry need to take a note of Perkin Elmer in the fact that they are they use ESG and ESG is giving the people the oil and energy companies that survive will use E as G.

Stu Turley [00:29:57] Sorry that I just need to use that as an example.

Michael Tanner [00:30:00] That was no, it was true. And I mean, that's what, you know, we chatted with tissue about in our interview is that. This stuff is going to be. It's at the institutional level ESG in it has not only become important over the past six months, even in the post code, the nineteen disaster, it's still going to be important because I mean, people who government's going to take public stakes in oil companies. You know, there's going to be some stipulations about how that's gonna get spent on ESG. You know, that's going to get written in there by these by book by the Democrats.

Stu Turley [00:30:34] And what's just amazing is there's two important people that are taking notes of ESG.

Stu Turley [00:30:41] OK. Are you ready? Are you sitting down? OK. I am. I was born. More coffee. OK. Consumers, the generations are now really paying attention to what they buy.

Stu Turley [00:30:57] And if the company has good ESG plans, the next is folks that invest in companies are paying attention to an ESG corporation and plant anybody not hearing that story need to wake up.

Stu Turley [00:31:14] The other one that I wanted to visit with is the oil shell slashes dividend for the first time since World War Two, World War 2, World War 2.

Michael Tanner [00:31:29] You want to go over that?

Michael Tanner [00:31:31] We have to bring Tomcat in to get our perspective onto the pie. The only person we know in our portfolio who is who was released could preach about that.

Stu Turley [00:31:39] Who? OK. Unbelievable. I mean, this is a a a bellwether stock for retirement funds.

Michael Tanner [00:31:52] That's an integrated. It's in everything. So. Why is it is it's literally. It has the well, it's vertically integrated. It has a upstream, a down, a midstream and a downstream. That's a rough marketing company. They have gas stations. I mean, I guess they're all they're getting hurt revenue wise. But when those kind of companies vertically integrated across the value chain, as good as an integrated, that's what they're called IONSYS integrated oil companies. Coke deadly.

Stu Turley [00:32:29] You bet.

Michael Tanner [00:32:30] That's crazy. Anything else we need to be watching out for news wise that happened last week. That's kind of I think we've hit everything I was everything I wanted to get to.

Stu Turley [00:32:38] That's everything I have. There's so much more. But I think we hit the high points like, holy cow, Batman.

Michael Tanner [00:32:44] Exactly. And really, you know, to just say update on a daily basis with everything that's going on in the oil and gas finance space is, you know, this famous book, follow the daily ticker on YouTube, the 360 to do a daily ticker every single day.

Michael Tanner [00:32:58] We're live on YouTube. And we'd love to actually see you pop in and watch us live. I will do this. We were talking today inside baseball. We have a bunch of shirts. We're trying to push merch and we don't quite know how that works. But I promise you this. You someone watches are digital closing bell digital ticker live on YouTube. Leave a comment during the show. I will personally mail you were sure I'll eat the shipping cost because that would be cool. Let's some live listeners.

Michael Tanner [00:33:26] Oh, absolutely. But you know, it's kind of fun.

Michael Tanner [00:33:30] Now it's been good. So it's the best way to stay up there. All the new stuff, we really what we do here is we just try to hit the high points and keep you up to date, because really what we need to do is dove into the levels for the week and bowl week bowls one this week. That's about all I'll say.

Michael Tanner [00:33:45] You know, for everyone who's watching The Last Dance Nets, ESPN, Netflix thing that came out. The Bulls are winning, baby.

Michael Tanner [00:33:51] We saw oil start out this week really on a dip down all the way to $10, but has ramped up all the way to about $17.

Michael Tanner [00:34:02] Currently trading about sixteen sixty five. It'll be interesting to see what happens tomorrow morning, obviously. Listen to this Friday morning is Thursday afternoon. So give us a little bit. And sparrow's it newsgroups as remember all of these levels or continued upon no Trump tweets, nothing insane. You know, he he tweet right now that we started an international war with every single Middle Eastern country and oil were probably 30 bucks. And all of our positions would be going crazy.

Michael Tanner [00:34:28] Now, he's not going to do that, but just be wary. Anything in this day and age can be can be a tweet can change everything. So when I look at that, here's what I see for the bulls.

Michael Tanner [00:34:40] Seventeen ninety three is probably your first level to the upside. And then really what you see is a huge gap between seventeen, ninety or really eighteen. And that next chunk is remember what happened about ten days ago? We were trading in the 20s. And remember when it dropped down into that first initial it well, it lost that $2 chunk right there. So if you're looking at it from a volume perspective, not quite sure where it has to go in. You know, part of what it kind of confirms that to me is actually here about 20 minutes before this podcast started.

Michael Tanner [00:35:10] Oil peaked at 1862. But then what did it do?

Michael Tanner [00:35:15] It immediately ripped back down underneath. Well, this was loss of volume. All the volume is sitting between seventeen ninety three and really twelve dollars and unfortunate. There's much more volume to the downside than the upside. So it's so when you're when you're looking at oh I think this is a gap in the market, I think hey if it reaches this it's going to run. What's that. That's a great signal that it couldn't. It broke and it ran up a little bit. It ran up past into our no volumes. It ought to do it immediately came back down.

Michael Tanner [00:35:41] And if you look at the relative amount of volume that was traded from 1783 all the way up to 1860 to comparative the what's on the downside, it doesn't compare. Now, that's because it didn't take that long. But that gives you an idea of how all of that volume is for. But if you're still a bull, $2. You know, twenty, forty two. I think it's your next stop up. If you see anything, Spike, if some positive news comes out. Twenty two. Oh five. Twenty two. Ninety five is good. And then again you see another nice $2 volume gap to twenty five 07. I'd like to give you guys four or five levels. Do I think twenty five dollars is is what's going to happen next week. I don't know. Probably not. Right. Not what's going to happen. But you never know. I'm honest, I didn't think it'd be 17 bucks at the end of this week. I would've thought you have been twelve.

Stu Turley [00:36:24] So the Amazing Kreskin. Okay. You ready? Yeah. The Amazing Kreskin. OK. Oil price next week. Nineteen eighty five average next week, OK?

Michael Tanner [00:36:37] More write that down. We'll put that in the portfolio as we will get up to. So obviously, Stuart, a bear and he's going to he's actually talking about a break of the bond, which I really like. Eighteen eighty five. I love it.

Michael Tanner [00:36:49] Nineteen eighty five. Excuse me, but if you are a bear and I mean not to be the not to be the sad guy on the show but I'm going to take the bearish stance this week. I think there's just too much volume to the downside of X17 0 3 is your first level down fifteen threes and other big big big chunk. Fourteen eight, twelve forty seven. But really there's just a lot of volume to the downside and I know I've continue to hound on that. But if there's one thing you take away from this segment, more volume on the downside than the upside, if you put your pit at where it is now at about sixteen, sixteen, fifty. When we look at EIA as again I've been getting my shorts eaten on D-O-G trades week after week after week, I finally put it out on LinkedIn. Yes, it's like everyone just know my losses because I've been getting shorted. I've been baking it three to four thousand dollars being taken off of domestic production, being taken off the market each of these weeks. And that is not what happened. Losing a hundred thousand bales, that could take it off the market. And that brings us down to twelve point one million barrels per day. Those numbers drop at 8:30 mountain time on oil on every single Wednesday. It's the D.O.T. crude inventory numbers. Crude stocks came in at 9 million, which was comparatives about 11 million, which is good cushion. Crude stocks, actual Cushing crude stocks were up 3.6 million barrels to sixty three point four million barrels. That gives us it's about 90 million barrels storage up there. So we're keeping an eye. There were about thirty six point twenty six million barrels away. So we were interesting to see what happens there. I again, I got I I'm done. I'm going to continue to trade the deal we inventory day. But I am now going to have to pullback because right now to start expecting now to expect 150, 200 thousand next week and it's going to be like four hundred thousand and just it's going to kill me first. But the whole time knocking these nice bad guys for giving me false info. But I think that has that's about everything with with oil last week. I mean that's really sort of your main oil finance news items as obviously as anything else you want us to cover. Please let me know. But still, are we missing anything? Before we move on to our final segment.

Michael Tanner [00:38:52] No, we're good. I love it. Well, I think what we do is go ahead now and move in to our final segment, which is our 360 Digital Closing Bell Fund and our Picks for the week. But first, our lawyers make us say this, that we do not get sued.

Michael Tanner [00:39:05] This segment is for entertainment purposes only. Everybody on this show, i.e., Michael Tanner and Stuart Turley, invest for our own account. And we do not manage any outside money. We do not give investment advice. We do not offer securities or have any involvement in the regulatory side of the industry. Remember, investing is risky and you can lose your entire principle, especially if you're trading gold futures right now. They're down heavy. Know a lot of people who in it. Eighteen hundred bucks on gold futures. I'm just another a side note, a little different than what we're talking about. But as you know, last week we set up our first official non-official 360 fund. We're still looking for a fund names. If you have any great suggestions, please e-mail me. I'm or Entercom E-com. If we take your suggestion, I will personally mail you a shirt that says, do these rigs make my assets look big? I promise you, it's written on the back. It's is really big. Do these rigs make my assets look big?

Stu Turley [00:39:57] Unbelievable. All right, Stu, your picks last week, how they do come up in LNG actually doing pretty well.

Stu Turley [00:40:05] Unfortunately, they're forty seven. Thirty one right now. Apache, I'm down. It's kind of remaining flat where I where I did it in. So as a portfolio, I'm kind of like flat.

Michael Tanner [00:40:19] Let's go. Hey, flat's fine, and that's why we take out multiple positions as we know everyone last week. I took out sixty five shares of Bonanza Creek at fourteen eighty nine. It's been a good week for Bonanza Creek. Currently trading sixteen eighty six.

Michael Tanner [00:40:32] Up about four percent from what we were going. It's been great for Bonanza Creek. And honestly I was just looking at it from a technical standpoint. So we don't need to get no financials that drop. Nothing had really come out. I did take out a portfolio hedge for us. I think I've been sitting on all these interviews by experts from Corum, from Sproule, from and Vernice. Do all these different experts we've had on the 360s or the Energy 360 network? They've been saying natural gas is gonna be 350. I found the dip and I bought us a futures contract. Cost about seventeen hundred bucks, but we got it at a dollar eighty two. Natural gas currently about a dollar ninety one. I really don't necessarily see it dropping below that support for about six hundred bucks on that, which is eight to see from a monetary standpoint. And I figured everyone's been preaching to us. Do we. Natural gas is going to be huge. Well let's I put my money where our mouth is.

Michael Tanner [00:41:23] Portola hedge position determines a lot of sense where you and we talk to premier oilfield group and we talked about how to shut in wells. How did how you got to have experts water wells?

Michael Tanner [00:41:37] I mean, how did you hear? That's a good thing. What did you hear from because you were on that interview I was in and it hasn't dropped yet. But, you know, we're gonna run in a segment Monday on this show about a reservoir, you know, from a reservoir geon, his perspective on shedding animals. Was there any interesting nuggets you took from that interview?

Stu Turley [00:41:53] Absolutely. And when you were talking about shutting in wells, there's a little bit of a difference. A, get an expert, B.

Michael Tanner [00:42:01] Right. That's why we bring him in.

Michael Tanner [00:42:03] That's why we bring him in.

Stu Turley [00:42:05] I didn't realize that there was such a parent child relationship in the dilution of when you shot it in the fluids, come back in from the frac and then it changes the whole dynamics of the fluid coming out. So when you fire up a well, again, coming back out of being shut down, you are going to have a lower part. You could have a lower production count of good oil versus other fluids, that area in there.

Michael Tanner [00:42:40] And it's because the fluids change. Interesting.

Stu Turley [00:42:45] Or held stagnation. Gotta have experts thought it was pretty cool.

Michael Tanner [00:42:53] That's awesome. I think that's really interesting, a you know, that's and that's sort of what I think. I think our the friend of the show, I don't want to give his name away quite yet in case we can't get a Monday. He's actually been trying to apply inside baseball. He's been trying to play to grad school and he's been having interviews with different business schools like the Asume. It's we have been able to schedule the call yet, but we'll get him on. Trust me. And he's got some really interesting thoughts. He's going to go going to lay out from a high level what his sort of company strategy is.

Michael Tanner [00:43:20] He's just he's got it. Okay. But the powers that be, I guess so it'll be really cool. But now you bring up a very interesting point when you talk about the way you shut in these wells and that parent child relationship between now we're getting way out of my room so I can't wait to cut up the premier oil field interview. That's why I love cutting up these interviews. I get to see important evidence. But I'm I'm only you know, I'm a I'm not about 60 percent of them, which is nice, because then I get to hear the information in real time. I get bored inside baseball. We're about we do about a week turnovers. If you are a sponsor and you're looking to come on for interview, we do about a week turnaround from what we shoot it to when we cut it up and we push it all out and we get it up to upload all of our channels.

Michael Tanner [00:43:59] And it's really considering the amount of work and amount of availability that this that these interviews have. The fact that it's a five day turnaround, five business day turnaround is actually incredible when you think about it.

Michael Tanner [00:44:11] So and the traction we're getting did the drivable crown patch has been unbelievable. So just to wrap up Stu's portfolio, even on the week I'm off, big natural gas is our hedge as that's the new position we took out Tomcat. He will. That's the one thing we forgot. Tomcat, how he's look, he's been on. He's a loyal trader on the show.

Stu Turley [00:44:33] Yeah, right. Out of just. He's got a feeling he got out of just about everything he was doing. He's hanging onto a lot of cash right now. He's kind of got a feeling on what's going on in the market. And I respect that. Take your chips back. Make your money. Hold on for another day, though.

Michael Tanner [00:44:53] And sometimes waiting in the waters is the best way to do it. But I've pretty much got everything that I've got. This is I don't know how long we went here. I don't have the time. But I've got a lot off my chest. This episode, this has been as therapeutic, hopefully, as it has been entertaining.

Stu Turley [00:45:09] It's been fun for me listening to you rant.

Michael Tanner [00:45:12] I love it. So with that, we're going to go home and let you guys get back to work. Check out us tomorrow on the 360 Digital Ticker on the closing bell. E-mail and please subscribe at W W W the oil and gas.

Michael Tanner [00:45:23] 360 dot com. We'll see you tomorrow for the Digital Ticker.

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