Energy Crue
Navigating the Energy Industry: Conversations with Ryan Keys on ESG, Regulations and NPC's Role
Get ready to embark on a knowledge-sharing journey that connects leaders, founders, and executives. This discussion promises to enlighten you on the nuances of the energy industry, with insights from our guest, Ryan Keys, an industry leader with a unique perspective on regulations, environmental consciousness, and the role of organizations like the National Petroleum Council (NPC). We touch upon a recent LinkedIn post by Ryan that could potentially change the game for both companies and individuals alike.
This episode takes a deep dive into the evolving world of environmental, social, and governance (ESG). We explore the complexities of federal and state regulations, often likened to a 'marble cake', and their impact on operators in the oil and gas industry. Additionally, environmentally conscious practices like water recycling, minimising flaring, and preventing methane emissions are put under the microscope. With a special focus on the challenges faced by small and mid-sized operators, we also discuss the crucial role of NPC in providing advice to the government and ensuring their voices are heard.
Finally, we turn the spotlight on an innovative and experimental workshop for operators, aiming to address ESG-related challenges. This initiative, fostered by NPC, brings together operators, IPAA members, and other interest groups under one roof, encouraging dialogue and exchange of ideas. We also explore the potential of ESG in creating profitable opportunities for businesses, emphasizing the importance of cost-effective resources and technology. Gear up for an enlightening experience that could potentially transform your approach to the energy industry and ESG.
Get ready to embark on a knowledge-sharing journey that connects leaders, founders, and executives. This discussion promises to enlighten you on the nuances of the energy industry, with insights from our guest, Ryan Keys, an industry leader with a unique perspective on regulations, environmental consciousness, and the role of organizations like the National Petroleum Council (NPC). We touch upon a recent LinkedIn post by Ryan that could potentially change the game for both companies and individuals alike.
This episode takes a deep dive into the evolving world of environmental, social, and governance (ESG). We explore the complexities of federal and state regulations, often likened to a 'marble cake', and their impact on operators in the oil and gas industry. Additionally, environmentally conscious practices like water recycling, minimising flaring, and preventing methane emissions are put under the microscope. With a special focus on the challenges faced by small and mid-sized operators, we also discuss the crucial role of NPC in providing advice to the government and ensuring their voices are heard.
Finally, we turn the spotlight on an innovative and experimental workshop for operators, aiming to address ESG-related challenges. This initiative, fostered by NPC, brings together operators, IPAA members, and other interest groups under one roof, encouraging dialogue and exchange of ideas. We also explore the potential of ESG in creating profitable opportunities for businesses, emphasizing the importance of cost-effective resources and technology. Gear up for an enlightening experience that could potentially transform your approach to the energy industry and ESG.
And welcome to a live energy crew podcast. I wanna thank everyone out there for tuning in and joining us on this beautiful Monday morning, august 7th. We have a lot of important stuff to talk to you today, with the reason why we're doing this live it's because it is so important and so pressing. But before we get to that, I want to have a couple of exciting things I wanna share with you. The first thing is that Exec Crew is the application is now open, the application process is now open and Exec Crew is gonna be a limited membership based networking group that's based on mentorship and connecting other leaders and founders and executives with a passion to share their strengths and learn from others. And the idea is simple Anyone can be a, anyone is a teacher and anyone can be a student. So that's been that's me kicking off in September, or no, I'm sorry, it's been kicking off Q4. So that's October and pretty excited about that.
Speaker 2:Again, check out more at wwwconnectioncrewcom, head over to Exec Crew and learn more about that, and I'm excited about that. I'm excited to introduce have our guests. I think this is the third time on. I think the second time on Energy Crew and it's third time on being one of my podcasts and I think and the reason we're doing this live I'm gonna have him kind of explain why, but again, I think this I wanna just kind of share that Exec Crew is now. Application process is open. You wanna learn more? Head over and check it out. I'm about to put up a nice little presentation for more information, but that's what is bringing, that's what's sponsoring this right now is Exec Crew, this Energy Crew podcast, and I'm introducing to who we have now, which is the man to myth alleged, the co-founder, personal friend of mine, mr Ryan Keyes. Ryan, how are you today? I'm good.
Speaker 1:Thank you. That was the first time I've heard the new intro to Energy Crew. Very catchy, I like the Unsa, unsa. It's good for a Monday morning Get the energy flowing.
Speaker 2:So that actually is. That was Monica, she and my wife. Yeah, she put that together on a garage band and just threw that together, you know, probably about a year and a half ago, and just kind of brought it back out of the archives to throw it back into the mix. I think, that's a keeper, and I think she is too. So, yeah, and I think that's the song and also she is too.
Speaker 1:She's a keeper, so is her music. Yeah, just to be quick.
Speaker 2:Yeah, and I think for those I want to thank everyone. That was the tune in. Normally we don't do these live. We do these, you know, we record them and then we do all this fun stuff. But I think, for the timeliness of the subject at hand, I'm happy to do this live.
Speaker 2:And Energy Crew is a podcast of mine where, you know, I want to bring in, you know, certain leaders I want to talk about. You know what's their passions, what's their strengths, what's their vulnerabilities, what are some of the stuff that all of us are dealing with on a daily basis that you know kind of no one talks about, or what's something that you know can inspire others through people's passions. And you know I have some great guests on and you know, ryan, you being one of them and also do some personal stuff as well, the kind of stuff that I've faced along the road. So, if you enjoy this, take a look at our previous episodes and find out what you think. But I want to start off now and obviously we're going to save kind of the comments and the questions for those that are tuning in live right now. I think we have a smaller audience, but I think it's a target audience for this, because right now we are going after a.
Speaker 2:This is kind of for everyone, obviously, to kind of know what's going on. But this is specifically for you know, small to middle-sized, you know operators in the upstream and the midstream side of things. And, ryan, I want to thank you for taking time this morning. I know it's kind of a busy morning for you. It's always a busy morning. It's always a busy Monday morning for everyone. But I want to thank you for your time and I don't think we need to do any introductions to you, ryan. I think if people want to find out who you are and kind of go to a LinkedIn or check, just Google you. Is that correct?
Speaker 1:There you go. One of the last energy crew podcast I was on.
Speaker 2:That's right when we talked about traveling, but we're talking about something a little bit more important, not more important. How about this More focused today? This has the potential. Yeah, this is absolutely more stressful and that's kind of that's always the fun side, but this is something that has the potential to impact a lot of companies and a lot of people, and I'm going to kind of give you the stage right now, ryan, I kind of want you to talk about. You made a post on LinkedIn. I think Last week was the last week, mm-hmm.
Speaker 2:Yeah and it was last week and it was kind of a kind of a, not a call to arms, but it was kind of a a. You know. You know, back in the day they used to hammer the stuff you know, in the town square and I felt that's kind of what it was. And, ryan, I think, um, you know, I think when I first had you on the pod, the podcast, we were talking about the ESG, the. You know, your company started the flyovers and not only did you see a, an Opportunity, when most people were looking at, you know, certain ESG strategies and certain Practices as kind of as a pain or a hassle or just a cost. You actually in your team, you know, has off to you and your team. You actually kind of took that and viewed it as a way to increase your profit.
Speaker 2:Actually, and I think it was so cool, not just the fact that you first off you, that you're able to do that, but also your willingness to share that with other operators, to share that with other Companies, and that only the fact that you and you chose to share it only improves the industry. It only improves kind of the industry. I love doing this live at the house, got my beautiful wife and daughter over there about to go to the store. But, um, but I love how. I love how you kind of you know you're not holding your cards close to your chest, you're you want to share best practices, you want to share stuff that will help the industry out. So and I and you did that post and that's kind of where we're at today. So I'm gonna get off my soapbox and like to you and kind of why don't you tell us what kind of that post is all about and kind of the background of that.
Speaker 1:Yeah, and then you know there's in the last couple of years and you know there's like ESG. And then there's ESG like there's certain connotations. It's like is ESG Like in the analogy I always use is like like we're not asking or making our employees where Like sustainably harvested cotton shirts, that's that's like I want to do, that, that's fine, I don't, it's not very meaningful, it doesn't do anything. That's like virtue signaling. It's like, yes, oh, here's the thing we did, I everyone look how, how you know a ball of we are. I mean, yes, like that kind of stuff. It's like, yeah, we've actually, we actually. So when in our, in our board presentation, we even call it ESG, we just call it back what it was, what it was called a few years ago, which is, you know, health, safety, environment, like it's. This is more just a HSC and and this is just more of an environmental initiative and then it was sustainability and then it was ESG.
Speaker 1:It was, it was.
Speaker 2:HSC, ehs, hsc Q. Yeah, it's evolved, but it all means exactly in our, our philosophy from the very beginning.
Speaker 1:You tell it whatever you want, it's, it's a line interest with society generally. Just don't be an asshole Like that's ESG to us. Like don't be an asshole to your employees, to your investors, to your mineral owners, to your service companies, to everyone you deal with to environment too.
Speaker 2:Yeah, yeah, yeah.
Speaker 1:I did go into every interaction, leaving it better than then when you start.
Speaker 2:So don't be an asshole. I like it.
Speaker 1:Yeah, don't be an asshole, there's that, that's generally our philosophy and we've concentrated on water recycling, minimizing flaring and and you know this methane thing, most importantly, because these are things we can all agree on, regardless of why we're doing them. We might say, you know, for different reasons on the methane thing, like, say, someone is very concerned about you know, greenhouse gas, and they're gonna say, well, yeah, we shouldn't let greenhouse gas be atmosphere. If you ask a mineral owner, they're gonna say, well, you're, you're leaking my gas, you're, you're, I want to be paid royalties on, on the gas that you're leaking. You know that those are. You know that those are non, that's not renewable like that. When they're gone, they're gone and we can explore for more, we can maybe drill more, but you know they want to get paid for those.
Speaker 1:Safety, you know we, we don't want to be leaking. I actually just had one recently. There's a big leak Coming off some equipment we didn't own or operate, but the plume, you'd see it, it was right over our field office. It's like we don't want our Employees breathing that like yeah.
Speaker 1:That's not like so for variety of reasons, for many, many reasons. This is something we should be.
Speaker 2:We should be good at and this and this is so. So back, just kind of back in a positive, this kind of Regardless of why you're concerned about this word, this is something, this is a focal point we're all concerned about yes, okay, exactly, someone's gonna find, of the myriad reasons, 10, 15 reasons to do this Everyone's gonna agree with at least one of them. And purposes there, purposes there. The motivators are different. I'm with you, okay exactly.
Speaker 1:So you know we've been focused on triple crowns, been focused on the water recycling, flaring, and and Methane and generally, you know, scope one, carbon intensity, for you know, since we were founded, and, and so this, this latest bit, you know that flaring is pretty well understood. Let's minimize flaring, let's recycle water and actually let's make them profitable. So it's not even, it's just good business. Yes, that's it, and yeah at this point like a business Pete Pete.
Speaker 2:You can't argue with that.
Speaker 1:Yeah, exactly, we're doing our ourselves and our shareholders Solid by by making this profitable. So, just like with with water and this is this is pretty, pretty white spread and the Permian and other other, and then the Eagleford Bakken, it pretty much every unconventional resource play where the full cycle cost of the water water recycling is Is cheaper than producing a barrel of fresh water, fracking with it and the disposing with it. That full cycle cost. It's actually more profitable to recycle it. So Same thing is true with. We found with the vast majority of our methane emissions, okay, it's actually profitable to go capture it. There's always gonna be some and pardon the pardon the term some, some mouse farts. We don't really care about the Mars Fox and to a large extent so is the EPA really no, we can say so.
Speaker 2:We could say asshole, without apologizing about mouse farts. We have to be, we have to be okay. So I just just understand that. Okay, I'm with you.
Speaker 1:Yeah, and these little bitty elites, and some of them can't even detect, they're just theoretical. This is why it's confusing, right? Well, our extent, epa, new regulations very confusing. I'm still confused. I look at this every week because it's it's a big risk to our business and every, every oil and gas company in the United States. You need to understand this. This is happening Very rapidly. It's happening right now, it's going into action At the end of this year and definitely the beginning of next year. This is happening to everyone.
Speaker 2:All right, let's, let's, let's take a, let's take a break. What's first off, explain to me what's happened. If I so, if I'm okay, here's the deal. If I'm listening to this because it's my favorite podcast, because I'm an EAP operator smaller union p opera I'm listening to this and I'm hearing you say, hey, it's happening, you got to know, you got to know what's happened. Talk to me like I like, give me the 30 times, but what's happened?
Speaker 1:very good question at a federal level and we all have. We have the US is marble cake, right, you know marble. So we have state regulators, federal regulators, local regulators. To some extent, some like, if you take Colorado, for example, I've been very proactive someone say too proactive, depending on who you are on. On the methane front, okay.
Speaker 1:I Don't operate in, we triple count is on operate in Colorado. We can't speak to that. We operate in Texas, which has not been proactive, right or wrong, that's. That's both the feature and, above, depending on who you are, that's not really the the issue here. So, but states have been moving at different paces, as that's by design. This is the US, this is beautiful, this is supposed to happen. Or 50 different democracies we can write, if you, different directions at once, as long as we all follow the Constitution.
Speaker 1:But what's happening now is a broad, sweeping change to the EPA rule, on, on, on method, and that was first passed. That the first incarnation of this was Quo to. It's getting into the regulatory, your acronyms and nomenclature, but it's essentially regulated how different sources, methane, emission sources, not just methane, but different emission sources, types of equipment, how we kind of track it. Okay, so now this EPA thing has been, there's not been really any penalty associated with it. They're just. They're basically just guidelines and if you don't follow the guidelines, there's really no penalty. With some, with some exceptions, there are some exceptions to that. But what the new? A new EPA ruling and this will have the force of law at a federal level. All 50 states must comply with this, including Texas, that there are going to be very specific Standards. We all have to meet very specific Sizes of operators who have to report in different ways, and there is now a mechanism that oil and gas companies will be fined for For big methane emissions, and we can talk about what those are. Okay, okay.
Speaker 2:So just kind of catch everyone up, for those that have this on the background, why they're kind of doing their own thing at the desk right now. What you're saying is coming up on in the near short term, on the horizon. It's gonna be new regulation, new law, whatever you want to call it. Pretty much you can the the way you've been operating. New business from today, from when you open up doors, historically, whatever, that's about to change dramatically, because now there are some teeth to these Suggestions or mandates or bylaws or or recommendations. Now there's actual teeth to this where you know people can't get, you know, punished, fine or pay a penalty or something like that. So there's actual some weight to this right now. It's not just this suggestion, there's actual consequences for actions. Yes, and when is it? When it? When is this? When is this? When are people gonna start seeing this kind of bubble, the surface?
Speaker 1:Later this year the final rule will be passed and that there are a few different ways EPA is going about this. In one of them, not, not even EPA. Yeah, first is is that just that the methane rule, which regulates frequency size of leaks, types of equipment in this is? This is a just an emissions tracking Mechanism. Yes, you're specifying. You know what our thresholds are and what types of equipment. You know monitoring methods we can use okay.
Speaker 2:So I'm sitting here, I'm listening to this, all this stuff. Okay, I'm thinking, oh shit, we got stuff coming on the horizon. I was like what, what, what, where do you? Why am I listening to this? Why, why do I need to go to Google and find this stuff? Or is there something out there that you're kind of, that you can kind of help people out there or companies out there in a situation when they kind of, when they kind of they might peer from the computer, say, oh my gosh, I'm a little bit far behind, I don't know what's coming up. So what's talk, let's. Let's get to the meat potatoes.
Speaker 1:So this is happening everywhere. There's a lot of. If you're a smaller, mid-sized operator, anywhere from a publicly traded independent down to someone with a couple of students, couple of marginal wells, you probably don't have dedicated people To follow all this and to understand all this. And what is what is applicable to it is extremely confusing. Yeah, I'll follow this every week. I'm still confused. So there's confusion everywhere about about when, what, why, all the questions you can possibly ask. We know we're supposed to do something and so we all have.
Speaker 1:We have these silos of different great you know groups, you know consolidators of data Analysis lobby groups. The one I was asked to help lead was it's from the National Petroleum Council. The NPC was formed in the 1950s for the Truman administration, at the time for the Department of Interior. It's essentially In the Department of Interior, then broken to the Department of Energy and in other departments, but To advise the government, the executive branch of the government, regardless of who's president, on all things oil and gas. Okay, the general state of the industry Over the years. Npc is Is chaired. It's a rotating management of the majors. This year, for example, conical Phillips is leading in PC and Ryan Lance, the CEO of conical Phillips is the chairman of interest, okay, and then next year it'll be a different operator and they just, you know, rotate.
Speaker 1:You know who's who's an a large, a large operator, super, yes, all the major, that's the super majors. I mean. Everyone knows, knows who those are. So, as you might expect, the NPC, if those are the member companies and there's some smaller ones in there as well but if those are the member companies On all things greenhouse gas, methane, flaring they're not really getting the viewpoint of the smaller operators. And by smaller operators I mean, let's say, below ten billion dollars. You know, market cap, that's.
Speaker 1:Yeah, the mom and pop, the mom and pop operators, exactly so, even like a, like I'm like a, just to pick on them because they're they're barely under 10 billion. My market cap, total capitalization Is like company called metahoe. Yeah, pretty big company. Companies that size Are still the ones that that might not have their their, might not have their voices heard, especially all the way down to your mom pop. You know, you know joe's operating company In. You know some some small, small counting on the edge of the, the Permian basin, for example.
Speaker 2:So the, the, the chunk, the chunk of operators you're talking about is kind of the majority of of the operators that I know. I mean, yes, there's the super majors, the exxon, the chevrons, the conica goes all stuff. But I mean, if you're talking down from you know matador, you know all the way down to, you know the, you know the, the picos, you know, you know county operating, you know these, it's a huge chunk of the pie of people working, of people trying to conduct business, trying to provide energy Out there, trying to get oil out of the ground Out there. So there's, there's a. This is a huge portion of, I guess, the people that I know, the people that you know as well.
Speaker 1:Absolutely yes. And that voice when npc presents to the department of energy and in the White House and again it's as regardless of who's president right say it's especially important when you have an administration that has not been exactly friendly to the oil and gas industry. It is especially important now to get your voices heard Because NTC has a direct line to Secretary Granholm, who's the Secretary Department of.
Speaker 2:Energy. Okay, so what are you? You're putting together something, you're putting together workshops to give. Talk to me about this.
Speaker 1:Yeah, it's so there. These are workshops where these smaller operators and this is a broad invitation, if you're a smaller operator, it's very, very important we might have other events where service companies, consultants, have come in, but right now it's operator only and this is okay, confidentiality purposes. And the first one is in two days in Houston, where we can assemble and we have a 100 page presentation acting as the baseline of resource. What I need to know for what size of operator, what do I need to do, and what we're actually going to concentrate on is not just the regulation. Everyone needs to crop, climb the ladder and what regulations coming down the pike. That's step one. Let's just understand what EPA is doing and what PHMSA is doing. Pipeline I always forget that. Anyway, different regulatory body.
Speaker 2:Yeah, if you said that, probably not, like I know what you're talking about, but I don't. I'm like, oh yeah, I'm waiting and I would be small.
Speaker 1:My operator has no idea, because this is a lot to keep track of. No, it is. Yeah, I've dedicated people and I'm a co-founder of my company and we have wonderful engineers, amazing engineers, two of whom are attending the workshops at least the first one. That's not their job we all have. The small, small, mid-sized operator is going to have to wear this hat and someone else is going to have to do it. Generally speaking, it's a facilities engineer, production engineer For me. I'm a founder of Triple Crown, co -CEO of Triple Crown. This is my job too. I have to wear this hat Among all the other hats we have to wear. It's hard.
Speaker 2:But for me this is getting back to the theoretical running of business type of thing. But I would assume if you're a smaller operator again you say small how about we just say not a super major? How about that? I would assume that you would not want to put this all on one person just because you don't want to deal with it. I would assume that this might be something that you have a lot of people their fingers in the frosting just made that up that you had their fingers in the frosting.
Speaker 2:Everyone understands a little bit what's going on. If there is a red flag or if there is something that pings like hey look, we need to discuss this. Everyone is on board. You don't have to pull anyone to speak. Let me go back to the workshop. This workshop right now is primarily for non-supermajor operators. How about that? Small and medium size operators, midstream companies, first off, I love how you're doing this. The whole goal of this is to bring operators together to. Number one, to understand the regulations that are coming out. Is that correct? Number two, to provide some resource support group. Exactly this is outsourcing.
Speaker 1:A lot of your understanding. This is an outsource consultant and it is free.
Speaker 2:We are here to listen also, how does an operator get an invite to this workshop? You have one in two days, which is going to be August 9th in Houston, texas. When's your next one?
Speaker 1:The next one is August 23rd in Midlands.
Speaker 2:That's my daughter's birthday. I can't go with it. August 23rd in Midland. When's the next one?
Speaker 1:I think it's in September and it's in Denver, and we'll also have one in Carnady, pennsylvania, in September After that, depending on interest levels and how this first one goes. This is an experiment, even for NPC. It's amazing how many different groups have come together. There are several IPAA members in this group and different consortiums of operators, interest groups, ngos Lots of different resources coming together, and we'll probably circle back to Texas again after the Carnegie one.
Speaker 2:If I'm sitting there and say, look, I don't have the resources out of the time, I'll just get the cliff notes after the meeting's done, I'll just find out Peruse and all that stuff. Yes, you can do that. I think that's obviously being there. Yes, you can do that. However, being there in person or having some sort of skin in the game is probably more important for you as a company, also you as a domestic energy producer, because it does give you a voice, it does give you some guidance and say so on, potentially, where everyone kind of b**** and complains about regulations and this, and that, as you said in your post, this is an opportunity to not just understand what's going on but also have a say in what's going on. Is that correct? Yes, exactly.
Speaker 1:A lot of this is we have a series of poll questions. This is meant to be collaborative. There's Chatham House Rules, so confidentiality.
Speaker 2:What is Chatham House Rules? First off, I love it. I don't know why I love it. I think it sounds like Old School New England, like Chatham House Rules. What is Chatham House Rules? For those that aren't out there, that means pretty much any information you get there. You're not allowed to decipher who is from. You're just going there to absorb information and knowledge, to contribute like a sponge.
Speaker 1:You're not going to go out and kind of post or tweet about it or whatever, we don't want an operator to be worried about something they say being taken out of context, for example. That's happening a lot. They can and will be taken out of context. That's not going to happen. No, it's confidential.
Speaker 2:I have to disagree with you. It's 2023. I don't think anything's been taken out of context when it comes to operator space yet ever.
Speaker 2:First off. Again, I want to just kind of commend you and kind of whoever else is kind of putting this together. The fact that you're getting out there and starting this experimental workshops to bring currently, to bring in operators together to have these discussions to kind of get cut up. Honestly, ryan, it might be one of those things You're going to get to the table and say guys, there are guys and girls, there are so much that we just don't know right now. What do we need to start knowing? Do we need a weekly this?
Speaker 2:I think this is such a cool, I guess, launching board or springboard for these discussions because, you're right, there is a lot of it. I mean, when you're dealing with the EPA, you're dealing with environmental regulations, it is a lot. It's very confusing and sometimes it might be made to be confusing for a lot of people out there. And if you don't have a dedicated team that are just focusing this, then I think a resource like this, a community like this, I think is hugely impactful. So I'm sorry, I didn't mean to kind of get on the soap, but we keep talking about kind of what you hope to, I guess, achieve with this and kind of how you're going to measure, I guess, kind of the success and participation. I mean, how is the kind of the feedback coming in currently, since you made the post four days ago?
Speaker 1:It's been. So one of the cool parts of I'm going to answer that kind of indirectly. First, one of the cool parts about our industry is generally, especially smaller companies really just want to be left alone, don't really want to, and. But when it comes to stuff like this, this kind of it's hard to get people mobilized. It's like I don't, I don't want to worry about that, right, please don't. Please, don't do that. This, at this point, it's a lot of. This is still it's not done. Yet we get to. Actually it's being molded and how it looks. So let's be proactive. One of the the product, one of the primary products of this these NPC workshops is to take findings, like we're going to have, I think, at Houston. We have about 25 operators, might be up at 30. And you'll hope to get that as many as possible.
Speaker 2:Yeah, sounds like. Sounds like a crew club event.
Speaker 1:Yeah, there you go. We'll probably have the same concerns repeated multiple times and the objective is to document all those. We have a very, very capable in a full time NPC people and them and people who are part of the workshop actually at operators. So there will be several kind of confidence people here dedicated to this. These are very serious people, these are professionals, they're very good at what they do and we are going to document concerns from small and medium sized operators, especially if they come out more than once, and that will that will form the product delivered from NPC to the Department of Energy and the White House. Again, regardless of who's there, we might or might not have a different president in a couple of years. This is just the White House. This is always going to be there.
Speaker 2:If I can't make it. Okay, I'm an operator, I can't make it August 23rd of midland, all right, I got to be in Houston, my daughter's birthday and all that fun stuff. I can't make it. Is there some way I can either contact you or contact someone to find that information? Or is there something like hey, look, I do have my own concerns, I can't make the meetings, but I do want to contribute. How can people do that? Or are we just strictly talking about the workshop currently?
Speaker 1:at the moment, it's just the, the workshops.
Speaker 2:Okay, okay, which is power?
Speaker 1:may change. This group has been. It's really come on, come all, at the moment just operators, but please show up and your involvement will help help Evolve the format, if it does evolve. You know, maybe this isn't the best form, maybe we do need to have, you know, bi-weekly Podcasts or something, or, you know, but bi-weekly web meetings so any people who are in different locations can, can, better Can can come in. The first one, bare minimum, is going to be in person only for security reasons. Don't want to disclose who is hosting, but that that operator has very high security. Okay, okay, confidentiality side, but this can evolve like this. This can't end, will of it.
Speaker 2:It is and it sounds like it will. And I think, honestly, for those that are kind of sitting out there, you're right, people don't want to be bothered, people do want to be left alone. They would just want to. I just want to do business how it's been done. You know like I, I'm here to kind of, you know, punch all on the ground and deliver product and safest, clean way without being Assoc possible.
Speaker 2:But this is one of those scenarios that you know, you know people you know do complain about. You know when things happen, oh, no, no, no. This is your opportunity to have a voice to help shape this Whatever, whatever it's policy river that is. This is the opportunity To have some sort of weight, some sort of safe, some sort of skin in the game. So I highly recommend, even if honestly, ryan, even if they can't make the event in two days, even if they can't, at least email you or to reach out to you or maybe to someone, to show you some sort of support, some sort of recognition about this, so maybe there might be something in the future.
Speaker 1:Next time they can kind of chime, yeah yeah, but best way to do that is on on on LinkedIn. Apologies if I don't get to it for a couple of days. Get you know the. The other job is is yeah, this is your triple crown business. This is. This is just something I'm passionate about, so I wanted that.
Speaker 2:And and it may, and maybe a way for people to separate that, if you do reach out to Ryan or if you do email Ryan again if you'd like to run on my trip, if you want, we'll put your email here. You can title it GHG emissions Meeting or whatever. You put GHG, methane or something like that in the subject line so it kind of pings Ryan so he knows what you're talking about or something like that. But Ryan, what else? What else you kind of want to talk about this before we kind of wrap this up?
Speaker 1:so the being informed, first and foremost, getting your voice heard. I think we hope people leave with an appreciation that it's not just, this isn't doesn't have to be ugly, this doesn't have to be painful. So there's when we talk about regulation, you can kind of like what are the reasons to do? It's it to minimize your methane leaks, minimize flaring, so on and so forth. You have carrots and sticks. Sticks that's where the regulator comes in and and we there will be a fee through the inflation reduction act actually had a Mechanism to find operators. That gets very complicated. We're gonna explain that in the workshop how that happens. Who's at risk? Where do you need to worry about it? But we don't want to concentrate on that too much because it's just unpleasant. There are parents, there's some juicy tidbits. Some of these are just we're we're all, or that's the exciting part. Yeah, this is, this is the fun part, this is the opportunity part.
Speaker 1:If you just look at a leak, you know like we're oil and gas companies, what do we do? We find and produce oil and gas and sell it and and make money doing so. So if you go out and you're serving and you find a leak and it's like oh crap. Oh my god, this is. This is a big leak. This is. This isn't good.
Speaker 1:I thought I had the right equipment out here We'll talk about right then. I had the right equipment. I did. This isn't supposed to be happening. This is a fugitive emission and it's big and I'm not very happy about it and oh well, that's a bleak of a hundred MCF a day and it costs 500 bucks to fix it. It's like wait a minute, wait, wait, wait. You see back up. You like we do the math on that. This is like a war over. It's like a pump change. I'm gonna go acid ice I'm gonna go get, especially for the small vertical. Oh guys, this is a work over. This is a very, very profitable work over for a subset of our leaks that is Really economic. I mean, we compared these to our other work over opportunities and drill them another. Well, the big leaks paid out of a matter of days.
Speaker 2:I I think that's so. I think that's so funny. Going back to kind of the, the initial conversation I had with you about this, how you know you're like, oh no, no, no, we're gonna get a plane, we're gonna fly the plane over and I do this. That cost it, you know, 26 thousand dollars. To look at everything again, I just made that number up.
Speaker 2:No, I know, I know I know, I kind of felt like I kind of showed a card like oh shit, but if you go back and listen to it you can kind of find out. But no, I remember you said it was like 26 thousand dollars to get the plane, to get this, get this, get this, get that data, get the image and all that stuff. You're like JP, we made that back and profit within four days or something like that. It was something like you turn that, that that potential hazard, into an area to make. So you're right. The carrots portion of this workshop to me is sounds so Exciting because you're right. That's what the opportunities are and the fact that you know you're talking about this. You know the. I just remember that that story about the flyover and how you and how your team went, turn this situation into kind of a we can make some money doing this.
Speaker 1:Yeah.
Speaker 2:I thought. I thought it was such a great way and it's such an exciting way to look at. You know, esg or HSC, whatever you want to call it exactly.
Speaker 1:It's really just running your business. It's a new kind of area to expand your business and like there's no geologic risk to the wells, already there, there's no production risk drawing the well work over, it's our, it's just leaking, it's already there, you just go stop, stop the leak and then like money from it. You make money and you know like this doesn't happen with every leak that we have, we're gonna have Show some economics or different leak rates and intermittency and all that stuff. The important part is knowing the resources out there, the technology to use to keep your costs low, to keep it so low that this actually becomes profitable. Then you're just like you're complying with the regulation and you're making kind of just as your. It's your business. It's like I, yeah, I'm, I'm, I'm complying, yeah, I have to do this annoying report, but like I would have done that stuff anyway.
Speaker 2:How long? How long is his workshop expected? So in two days? What's the time frame you're looking to work on? The morning, afternoon, what's up? It is all day. This is an okay, I'll do that.
Speaker 1:I don't have to stay all day. We'd like for you to, we'd like for Upgraders to, but this is eight to five. This is a long. This is a full day. This is all. We're gonna cover every single thing. We think that is possible. No, right now, not that we have an Comprehensive everything. Answer every question.
Speaker 2:You got it. Look, you're trying, you're starting from somewhere and that yeah, that to me is is such a huge amount of respect. The fact that not only are trying to get ahead of it, which is our industry is tremendously known for being Versus, yeah, what is it? It's it's it's reactive, not proactive. Yeah, and then bitchin about that like, oh, here's the chance to do something proactive. This is a chance to do something product of the fact you're leading the charger or whoever's leading the charge. Hats off to you. Um, I do think that. Um, for timeliness, we're gonna release this up episode tomorrow. So apologies for any audio or anything like that. And, ryan, if they need, if they want to invite to this also, is it just, are you the mains? Are you those single sources or Something they can email and try to get on? I mean, I would hate to kind of, in the way, do with all that, but I mean that's. I mean, is there? What is it? Just you? If that's the case, I'm fine with it. I don't care at the moment.
Speaker 1:So I had to ask you know, a few of our, the folks involved with the, with the study group here if this was okay and it is. It's so inclusive right now it is. The invitation is going out to basically everyone. It's input again, as long as you're an operator, we're gonna hopefully have some non operator interaction.
Speaker 1:But yeah, yeah, yes, or somewhere at the moment it's just me, I get it's manageable right now the the initial post on LinkedIn generated I In I don't think it's hundreds, but dozens of messages. It might take me a couple of days or a day to get back to it. If you do want to, I am. This is a huge priority over the next day, you know, because the first, the first ones on Wednesday, so I will get to. I'm gonna catch up today on on the LinkedIn Messages, get everyone added and then, you know, we hope this, this kind of perpetuates itself and honestly, I don't see come like I don't word it.
Speaker 1:Meet up in the morning like knowing this is this is out there, this resources out there, and I think that's a great thing.
Speaker 2:I think you need to show your the DFW boys and gals in love, especially, you know, corey Pairing up there asking why not?
Speaker 2:why not Dallas? But um, yeah, always, always love a Corey in those and those cats up up north, but, um, and this might be something where it probably does go to DFW, might probably does go to okc. So, but then again, ryan, I'm gonna help you anyway I can for this, because I think what you're doing for the industry to keep people to stay proactive, keep people on top of this very, very important issue and not let it be left up to the super majors to decide what happens to the, the small to medium. The matador is down, I mean, that's just. That's a huge array of Operators and people that I know. And obviously there's anything I can do, ryan, and we'll kind of, once we end this, we'll kind of talk about what I could do to kind of support this.
Speaker 2:But again, for those out there that that either know an operator or know Someone that might not have tuned into this episode which I don't see how that's possible because everyone lives in the energy crew potgat but if you do know an operator out there small, medium, midstream or or upstream that that you do, that might, that probably should be on their rate, that this should be on its rate their radar. I don't know what's wrong me. It's feel like it's Monday 7 o'clock. But, um, please Share this with them. Reach out to Ryan and find out how you can be connected and get involved and get proactive, because if it's once it's out of our hands, we don't want it to be left to the super majors to decide on how, on everything, how it looks moving forward. But, ryan, thank you for your time. Any final thoughts, words, words of wisdom or advice about these workshops?
Speaker 1:No, please keep up one, maybe a week or week or two before each of the workshops, I'll, you know, start. You're kind of advertising those on on LinkedIn and so like, if you miss this one in Houston, you want to go to another Houston one. We're probably circling back. It might not be till October or something. So you know it is. You know, if it's not this one, there will be other opportunities.
Speaker 2:So but if you, but if you can make this one and you, and, and you don't want to wait till October and be too much behind everyone else, it's still time. Just tell it get on this. Let me go by tomorrow.
Speaker 1:Get on this one and well, I will get you on the list that the operator that's hosting is one of the super majors in Houston, has a big, big Facility for us to go talk about. This lunch will be served and a lot of the best and brightest that these are all oil and gas people, okay well.
Speaker 2:Well, I want to thank you for your time, Ryan. I want to thank you I'm not there for a tune in listening this on the first energy crew live Podcasts we've had. Again, you can check out this podcast, another once before. Again, if you know an operator Upstream or midstream, share this with them. I think this is an important, important subject and, ryan, again, you're trying to help the industry out, you're trying to help the environment out. So hats off to you, man. I really appreciate your time. I love what you and the, the team at triple crown, are doing to To better the industry and also kind of share information stuff that matters to other people out there.
Speaker 2:Not a lot of, not a lot of operators are taking that foot, that foot Forward that y'all are. So hats off to y'all. Again, thank you to an energy crew. If you enjoyed it, please share. Please Share it with someone. Talk about it. I bring it up. Tag me on Instagram, linkedin, whatever it is. If you enjoyed it, check out the last one again. If you want to connect with other leaders, founders and get a little mentorship, a group Connect with a exact crew, we're open for that and other than that. I think that's all we got going on, ryan, thank you for your time and you have a good day. Brother, you tubing and I gotta do the, I gotta do this, I gotta do the send out. So you got to stay on hold up, buddy, I got. I got to do the music again, of course, hit it.
Speaker 1:Where's the strobe?
Speaker 2:Oh, there's the overlay, that's the. Oh, your mic is the strobe, all right, and for those that are tuning in after this, we actually have a question, ryan, from someone on on YouTube, frank murder wrote. I was under the impression the methane fee applies to facilities that do subpart W reporting, so any facilities that emit 25,000 kilotons co2 equivalent per year per year. Yes, yeah, oh.
Speaker 1:Absolutely 100%. Wow, that's being assessed through the IRA now. Oof, that is, that's confusing, but this is currently under construction. Dpa is modifying heavily that subpart W language in there and, um, we have, uh, what's changing compared to the last? Uh, yes, subpart W process? Uh, we'll be documenting that heavily, all right, well.