Newsletter No. 30
Good evening,
Hope everyone had a great week. There are several videos for you to watch in this week’s newsletter. I hope you are able to watch all of them.
Today’s Headlines
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Drilling Faster, Safer, and Cheaper with Andrew Richards
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King Operating News from the Field
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Oil and Gas News
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Ask Jay
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On a Personal Note …
Drilling Faster, Safer, and Cheaper with Andrew Richards
Andrew Richards co-founded Automated Rig Technologies in 2009, a company that makes solutions and new tech for the oil and gas sector.
It began as an engineering consulting firm for big oil and gas clients. But in 2015, when the industry had problems, they switched to making their own technologies. One major invention is the Jointed Pipe Injector (JPI), like coiled tubing but better.
I recently sat down with Andrew for my podcast, The Jay Young Show, to discuss how his company is revolutionizing drilling and well servicing.
Richards provides an insider’s perspective on the latest equipment and software that is bringing more speed, safety, and efficiency to drilling operations. We explore how technologies like the JPI are reducing emissions, personnel needs, and risk compared to traditional techniques.
Tune in to learn how new automated technologies are enabling faster, cheaper, and safer energy production.
Check out the full video episode here.
King Operating News from the Field
I made it out to Borden County this week and took a few videos of our wells, giving a little rundown of what’s happening in the field. You can watch one of those videos below, or check them all out on our YouTube page here.
Oil and Gas News
Oil prices demonstrated an upward trend in a recent trading session. On Tuesday investors showed confidence, leading to higher oil prices.
Investors felt good about the market, leading to what’s called a positive “risk-on” feeling. This means they were more willing to take chances on assets like oil. When people believe the economy will do well, they need more oil for things like factories and transportation. As a result, this higher demand made the oil prices go up.
A Forbes magazine article came out this week by Clem Chambers discussing the possibility of oil going much higher than the $66 to $84 range it has been trading at this year.
As I have mentioned in the past, it is about supply and demand. If you throw in the political events, the price definitely seems to be going even higher in the not-so-distant future. This would be incredible for our partners in our drilling program.
I would argue the best investor in the world, Warren Buffet, has backed up his truck recently to invest in oil and gas when Berkshire increased its stake in Occidental Petroleum to 25%, now owning 224.2 million shares of the Houston-based oil producers.
This is in addition to Berkshire Hathaway Energy acquiring a 50 percent stake in Maryland’s Cove Point liquefied natural gas facility for $3.3 billion from Dominion Energy in July, and Berkshire still holds 132.4 million shares of Chevron, showing continued involvement in the energy industry.
J.P. Morgan CEO Jamie Dimon said that we are in the beginning of a new oil boom when he explained, “We need cheap, reliable, safe, secure energy, of which 80% comes from oil and gas,” during an interview with CNBC back in December. His company said last year that global oil prices could reach a crazy $380 a barrel if there’s a worst-case scenario and Russia cuts production. The country recently announced their plan to cut oil exports by 500,000 bpd in August and by 300,000 bpd this month. We’ll see if that actually happens.
Even Elon Musk, speaking at a conference in Norway, said that if the world stopped oil and gas production “civilization will crumble.” Yes, Musk, the CEO and Co-Founder of electric car giant Tesla.
Ask Jay …
The question this week is How Can You Make Money in Oil and Gas?
Watch my answer here.
On a Personal Note …
As I mentioned last week, I was going to talk about my recent visit with the Ryans.
Before we talk about Nolan, I want to give huge kudos to his wife, Ruth, for raising some wonderful children. Besides Reese and Reid, they also have a daughter, Wendy, who also lives in Texas with her family.
Nolan, Ruth and their family are definitely top notch. Michelle and I are grateful to call them friends.
I have always enjoyed getting to spend time with Ruth. She is a wonderful person and is the driving force behind Nolan (watch Facing Nolan on Netflix) and has done a tremendous job with Nolan raising their family and setting an example for all of their grandchildren.
Reese and Reid are both extremely hard workers and two of the kindest people I have ever been around. Both Reese and Reid work in the family business, which includes ownership of a Minor League Baseball team, the Round Rock Express, and have holdings in everything from a cattle farm and meat company to a turf company and a community bank.
Ok. Back to Nolan. What an incredible baseball career. It was amazing to watch how he could pitch at such a high level for so long. Seven No-Hitters, 324 wins and 5,714 strikeouts. He holds the record in the MLB for no-hitters and strikeouts. He had his first no-hitter in 1973 and the seventh came with the Rangers at the age of 44. His record of 5,714 strikeouts is 839 more than runner-up Randy Johnson, who retired at age 46 after 22 seasons.
These are tremendous feats by any human, but when we get together we rarely talk baseball. He would rather talk about business. Now, occasionally, he will mention some of the dugout talks or discuss some of his stories about being in the big leagues, but that is normally a funny story about his teammates. We did ask him during a round of golf about the bloody jersey, when he and Robin Ventura got into a fight on the mound. Ruth was quick to add that someone in the dugout washed it between innings.
Nolan always asks a lot of questions about the oil business, including what we are doing here at King and where we are drilling. He has a great mind for business. He also has a charitable heart, something I admire about him and can relate with our desire to help people wherever we can.
One event coming up that I am so excited to be involved in, is the Alzheimer’s Pro-Am golf tournament in a few weeks on September 18. I have been blessed to be a part of the Alzheimer’s Association here in Dallas. More and more research is being done on Alzheimer’s everyday, including launching an at-home blood test to detect Alzheimer’s and a recent study that was in the Journal of Alzheimer’s Disease finding that people with Alzheimer’s disease have significantly lower levels of five essential nutrients in their brains.
Events like this golf tournament are huge factors in making these things happen. If you’d like to learn more about the event, you can click here.
I hope everyone is having a wonderful Labor Day weekend. Michelle and I are especially thankful for our family at King Operating.
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Recommended Reads
EY: Oil and gas core asset amid energy transition
Last Oil and Gas Lease in the Badger-Two Medicine Retired
Biden admin hit with lawsuit for restricting production: ‘Put American jobs at risk’
All the best,
Jay
