00:00Tell us a little bit about what you expect from oil demand, because it's surprising how prices are still under pressure, but people continue to produce.
00:09Well, first of all, four-zone drilling has given the entire world cheaper prices for both oil and gas.
00:16So the energy renaissance that four-zone drilling brought about was fantastic, has done its job.
00:22But, you know, there's a couple clouds on the horizon, perhaps, and crude oil is one of those.
00:30You know, we're seeing a decreasing amount of the ability to overproduce, overcapacity.
00:38That has went from as much as 65 percent as I remember in the 80s, down to, you know, 2014 and 15 percent.
00:48Right now it's about 2 percent, using 106 million barrels a day, and we've got 2 percent overcapacity in the world.
00:58So where's that dwindle out, and where's it run out?
01:04And we're able to see far enough ahead in the third quarter of 2027.
01:10We believe that gets very narrow, and we actually cross over that demand curve.
01:18So demand becomes more than supply at that point.
01:25Okay.
01:25So that's the problem.
01:27Could the demand picture improve now that we have less trade tensions, or at least some more optimism when it comes to global relationships right now over trade?
01:37Yes.
01:39So I think that we're seeing a couple things as people prepare for this going forward.
01:47For instance, China is establishing a whole lot of storage.
01:54There are 1.1 billion barrels of storage going to 1.5.
01:58And so cheap oil still exists, and oil is cheap.
02:04$60 a barrel is very cheap.
02:07And so they're taking advantage of that cheap price with storage, and the U.S. is starting, beginning to follow suit and fill their storage back.
02:18And that sort of energy security is very important, and you've been advocating about that to President Trump.
02:24Have you seen him this time around here in South Korea?
02:26You know, I wasn't in any of the meetings that he attended here in South Korea, but, you know, I'm glad he's had those.
02:36And, you know, I know he reached out to North Korea, President Kim, as well.
02:44They reached out separately?
02:46They reached out, but he couldn't attend.
02:48So that would have been good if that could have happened, of course, but it didn't.
02:55But anyway, a very successful meeting, I think, with he and President Xi from China, even just reestablishing a bond to start up again.
03:10And so that needed to be done.
03:12So I think it's a very successful trip for the President.
03:16How do you think this will play in the U.S.?
03:18Well, I think that will play out very well in the U.S.
03:24You know, everyone would like to see this tariff situation resolved, and that's a good step in order to do that.
03:34We still have those tariffs when it comes to metals, which increases costs for energy producers.
03:39Is this still a concern?
03:41You know, it's not as big a concern.
03:44You know, I talked about what our company did on Bloomberg about two years ago almost.
03:53We realized that how much of our supply chain had been outsourced to China.
04:01And basically we said, I said, no more.
04:04You know, we're going to bring it back, you know, to America.
04:09And so we've begun to do that.
04:11And we've swapped it around from 90% outsourced to now we're at 92% basically in America.
04:22So it's been a big turnaround for continental resources.
04:28So it can be done.
04:30And, you know, we were seeing these companies take advantage of cheap labor in other countries,
04:38but it wasn't being manifested to continental.
04:42Well cost was still the same.
04:45Somebody else was making a profit on cheap labor.
04:48It certainly wasn't continental.
04:50And so anyway, bringing it back onshore to the U.S.
04:54is what we've been able to do.
04:57And it's been a great thing for the company and also for vendors.
05:02How much oil demand and energy demand do you expect from the fact that we're seeing this incredible AI boom
05:11and the build-out of computing infrastructure everywhere in the world right now?
05:14Well, it's a tremendous amount.
05:17And, you know, that is a preferred fuel of choice by AI.
05:22And I can understand that it would be.
05:25First of all, clean-burning fuel using just the transition from coal to natural gas has lowered emissions in the U.S.
05:36about 40%.
05:36So it's been drastic over the last decade.
05:43And so I can see where that would be the fuel of choice.
05:46It's immediate and it's constant and it's always there reliable.
05:52And it's not only 24-7, it's 365 year over year.
05:57So it's a good thing for the industry as well.
06:01And we haven't seen prices spike over it.
06:05You know, it's still cheap fuel.
06:08Do you expect there to be some risk with the AI build-out that we're seeing right now
06:14if the benefits don't really materialize fast enough?
06:20Well, you know, I'm not busy.
06:24I don't work on that end of it.
06:26But you have to set up the energy infrastructure in your company in order to be able to provide the resources.
06:32Yes, we're responding to the need in our company with power generation
06:39and making sure that we can deliver the fuel.
06:44So, yes, that's happening.
06:46But, you know, I am excited, though, from, you know, the example I give you is diabetes research.
06:56What can the benefits of AI do there?
06:59Right.
07:00Can we cure diabetes?
07:01Can it move us that next step closer to that cure?
07:06We're very close already.
07:09People used to didn't even think it was possible.
07:12Yeah.
07:12I not only believe it's possible, I think it'll happen, you know, next decade.
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