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>> I MAY HAVE BEEN THE FIRST
CASUALTY OF THE BUILD BACK
BETTER PLAN.
THREE HOURS AFTER PRESIDENT
BIDEN’S INAUGURATION, I LOST MY
JOB ON THE CONSTRUCTION OF THE
KEYSTONE PIPELINE.
JACKIE: WELL, THAT MAN’S STORY
IS JUST ONE OF HUNDREDS, AND HE
JOINS US NOW.
OF NEIL CRABTREE, FORMER
KEYSTONE XL PIPELINE WORKER,
STILL OUT OF WORK.
GOOD TO SEE YOU TONIGHT.
YOU KNOW, PRESIDENT BIDEN KEEPS
TOUTING CLEAN ENERGY JOBS.
THEY’RE SO MUCH BETTER.
THEY PAY SO MUCH MORE.
THE NEW JOBS.
THE NEW JOBS THAT ARE COMING
THAT WE HAVEN’T SEEN YET.
BUT FOR YOU, YOU LOST YOUR OLD
JOB, AND THAT NEW JOB NOT THERE
RIGHT NOW.
>> OH, ABSOLUTELY NOT.
I MEAN, THAT’S KIND OF THE POINT
WE’VE BEEN ARGUING.
WE HAVE PROJECTS ACROSS THIS
COUNTRY THAT ARE READY TO BE
BUILT RIGHT NOW, AND WE’RE
SITTING ON THE SIDELINES FOR,
YOU KNOW, PROMISES OF JOBS TO
COME IN THE FUTURE.
YOU KNOW, WHAT ARE WE SUPPOSED
TO DO IN THE MEANTIME, IS THE
BIGGEST QUESTION SOME OF US ARE
ASKING.
JACKIE: YEAH.
AND ONE THING WE SPOKE ABOUT IN
THE PREVIOUS SEGMENT WAS THE
IMPORTANCE OF PIPELINES AS
INFRASTRUCTURE IN THIS COUNTRY
TO TRANSOR THE OIL, TO MOVE IT
AROUND, TO MAKE SURE IT GETS WHERE IT NEEDS TO GO BECAUSE IF
WHERE IT NEEDS TO GO BECAUSE IF
IT’S STUCK IN THE GROUND OR IN A
WAREHOUSE, IT’S NOT DOING VERY
GOOD.
IT’S FAR EXPENSIVE TO DO IT BY
JAIL IF TRUE, CORRECT?
>> ABSOLUTELY.
IF THEY DON’T LEAVE CARBON FOOT
PRINTS LIKE MOVING OIL AND
NATURAL GAS TAKE THEY DO.
THE PUBLIC’S GOT TO THOUGH
ESPECIALLY WITH THE NATURAL GAS,
WE HAVE THE NATURAL GAS.
IT’S AVAILABLE.
THERE ISN’T A SHORTAGE.
THE PROBLEM IS THE CANCELLATION
OF A BUNCH OF THESE PROJECTS
THAT SHOULD HAVE ALREADY BEEN IN
SERVICE.
AND MOST OF IT’S IN THE
NORTHEAST WHERE THEY NEED IT THE
MOST.
WE’VE CANCELED SO MANY PIPELINES
IN THE LAST 3-4 YEARS THAT WE’RE
GOING TO SEE THE EFFECTS OF IT
THIS WINTER.
JACKIE: I WANT TO BRING IN MARK
MURPHY AND JAY YOUNG, KING
OPERATING CORPORATION FOUNDER
AND CEO.
GREAT TO SEE YOU GENTLEMEN AS
WELL.
JAY, I’VE SPENT A LOT OF TIME
DOWN IN TEXAS AT PRODUCTION IF
FACILITIES VISITING THE RIGS,
SEEING WHAT THEY’RE DOING.
BUT THIS WAS OVER THE LAST
DECADE OR SO WHEN THE BOOM WAS
HAPPENING.
NOW THE TIDE IS TURNING, AND
YOU’VE GOT BIG COMPANIES SAYING
THEY’RE HESITANT.
THEY DON’T WANT TO NECESSARILY
ADDRESS THE FUTURE BECAUSE OF
THE AGENDA BY THE
ADMINISTRATION.
HOW IS IT IMPACTING YOUR COMPANY
AND OTHER COMPANIES ON THE
GROUND IN TEXAS?
>> YOU KNOW, I TOOK A FLIGHT
FROM DALLAS TO MIDLAND TODAY,
AND I THOUGHT IT WAS GOING TO BE
COMPLETELY FULL.
IT WASN’T.
I GET TO THE HILTON DOWNTOWN,
AND THEY’RE HALF FULL.
I MEAN, OIL’S AT $85 A BARREL,
AND WE’RE NOT SEEING THAT HUGE
ENTIRE, YOU KNOW, IMPACT THAT
YOU DID BEFORE, YOU KNOW?
EXXON MADE $6 BILLION LAST
QUARTER, AND THEY SPENT $10
MILLION I BUYING BACK THEIR
STOCK.
THEY DIDN’T PUT THE MONEY BACK
IN THE GROUND WHAT THEY WOULD DO
BEFORE BECAUSE THEY HAVE PEOPLE
ON THEIR BOARD NOW, AND THEY
ARE, THEY’RE GOING GREEN BY
GOING GREENER BECAUSE WE’LL
NEVER GO GREEN, BUT THEIR
RECYCLABLES, YOUR RIG COUNT IS
STILL DOWN, AND YOU’RE NOT
DRILLING FOR OIL AND GAS.
AND WHEN YOU DO, IT’S JUST -- I
MEAN, IT WAS LIKE IT’S NOT A
GHOST TOWN LIKE IT WAS -- MY
FAMILY’S BEEN IN THE BUSINESS
FOR OVER A HUNDRED YEARS, IT’S
NOT A GHOST TOWN HERE IN
MIDLAND, BUT IT’S NOT LIKE IT’S
$85 OIL.
I FIGURED I’D GET HERE AND
EVERYBODY WOULD BE, YOU KNOW,
PARTYING IN THE STREETS AND
WE’RE BACK AND THIS IS --
JACKIE: YOU BRING UP A FANTASTIC
POINT, THAT IT IS NOT SO MUCH
THE PROSPERITY WHEN IT COMES TO
THE INDUSTRY IS NOT SO MUCH
ABOUT THE PRICE OF OIL, $80
RIGHT NOW, $85 A FEW DAYS AGO.
IT’S REALLY ABOUT THE RIGHT
TIPPING POINT, RIGHT IN AND,
MARK, I WANT TO ASK YOU ABOUT
THIS BECAUSE AROUND $50 A BARREL
IT SEEMED LIKE EVERYONE WAS
HAPPY.
THE OIL COMPANIES WERE WITH
MAKING MONEY, GAS PRICES WERE
LOWER, IT WAS JUST THAT RIGHT
BALANCE WHERE PEOPLE COULD KIND
OF THRIVE, THE COMPANIES COULD
DO WELL, THEY COULD HIRE PEOPLE,
YOU KNOW?
IT’S AN AMAZING POINT WHEN YOU
THINK ABOUT TEXAS -- I DON’T
KNOW WHAT IT’S LIKE IN NEW
MEXICO, BUT THESE COMMUNITIES,
IT’S NOT JUST ABOUT THE PEOPLE
WHO ARE WORKING ON THE RIGS,
IT’S THE HOTELS, IT’S THE GAS
STATIONS, IT’S THE DINERS, IT’S
THE CLOTHING SHOPS, IT’S MAIN
STREET.
ALL OF THAT IS SUPPORT BY THE
OIL INDUSTRY.
>> YEAH, THAT’S RIGHT.
I MEAN, YOU KNOW, I OWN AND RUN
A SMALL INDEPENDENT OIL AND GAS
COMPANY.
WE HAVE 16 EMPLOYEES.
WE’RE A CLASSIC INDEPENDENT
PRODUCER.
YOU KNOW, OUR JOB IS TO GO OUT
AND DISCOVER OIL AND DELIVER IT
SO IT CAN BE CONVERTED INTO
GASOLINE AND ELECTRICITIES AND
PLASTICS AND CLOTHING AND A
WHOLE LOT OF THINGS.
AND NEIL’S STORY IS JUST SORT OF
THE TIP OF THE ICEBERG.
WE SEE IT ALL THROUGH THE OIL
PATCH DOWN HERE, PIPELINES BEING
CANCELED, PERMITS NOT COMING
THROUGH.
AND TO JAY’S POINT, WHICH I
THINK IS A REALLY GOOD ONE, IS
THAT WE ARE AT $80 A BARREL.
BUT A GOOD MEASURE OF THE
INDUSTRY ACTIVITY IS THE RIG
COUNT, RIGHT?
AND SO IF YOU LOOK BACK 18
MONTHS, PRE-PANDEMIC, WE WERE
ABOUT $80-85 WHICH IS WHERE WE
ARE RIGHT NOW.
WE WERE RUNNING HALF THE RIG
ARES.
AND THAT’S WHY MIDLAND’S NOT
FULL AND WHY THE HOTELS AREN’T
FULL, AND WHY -- IT’S NOT JUST
MIDLAND, BUT ALL THE SMELL
COMMUNITIES THROUGHOUT THE WEST.
EVERYBODY FROM THE LOCAL BARBER
TO THE GAS STATION OTHER THAN
FEELS THE IMPACT -- OWNER FEELS
THE IMPACT.
JACKIE: YEAH.
>> AND $50-60 A BARREL IS
CERTAINLY A TIPPING POINT FOR
MANY OF THESE PROJECTS.
AND SO IF WE GET ABOVE THAT, WE
HAVE A REASONABLE LEVEL OF
ACTIVITY.
JACKIE: NEIL, MARK, JAY, GREAT