Energy Crue

Crue Club 1.23 Recap: Unlocking Innovation: AI, Market Dynamics, and Navigating Career Growth in Energy Industry

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From Crue Club Operator Mastermind Roundtable!

Energy Crue dives into the future of the energy sector, focusing on 2025 predictions, the evolving role of AI, and strategies to reframe obstacles as opportunities for career growth. 

This episode emphasizes the need for self-reflection, effective networking, and the importance of action in navigating industry challenges. 
• Exploring 2025 predictions for the energy industry 
• The impact of AI on decision making and efficiency 
• Addressing service company dynamics and market competitiveness 
• The necessity of self-reflection and personal growth 
• Networking strategies to overcome industry obstacles 
• Actionable steps for navigating career challenges

Speaker 1:

Thank you very much. Welcome to a new energy crew podcast. It has been a minute. Everyone, my name is jp warren and welcome to energy crew, and I took in a hiatus from uh recording these and I don't listen. I don't know why. I think life gets busy, life Life gets in the way. A lot of different projects kind of start presenting themselves and, unfortunately, the energy and effort towards Energy Crew kind of took a backseat. However, I've missed talking about it. I've missed talking about what's happening in the conversations I'm having with people in energy space. I miss bringing to light what conversations that I'm having with different people in the oil and gas space, and I think a good way to kind of continue these conversations is obviously bring it back.

Speaker 1:

You're here now, so I appreciate that, but another layer that we're going to do now is we're going to try to bring in what we've been discussing at our Crew Club, operator Mastermind Roundtables and, for those of you that aren't familiar, this Crew Club is actually. Energy Crew is brought to you by Crew Club. Now, for those of you that aren't familiar with what Crew Club is, crew Club is an exclusive networking event where we host different EMP operators and a couple of service companies at the table. We keep the service companies limited just to ensure the operators are there and from there we dive into conversations that are driving the industry forward, anything from energy policy, ai, operational challenges and solutions I already said energy policy, ai and technology to leadership topics. So in 2024 alone we had 28 events and we hosted 270 EMP operators from over 160 EMP companies, 50% of that manager or above, and that's manager and drilling, completion and production. So the best way to start off this 2025 Energy Crew podcast is to dive in with what we discovered, discovered, discovered and discussed at our first Crew Club, operator Mastermind Roundtable. And this is just to give everyone out there kind of some insight on some high level stuff that we're discussing around the table and how it's actually shaping and driving the industry forward. There's a lot of information. So I have a lot of notes here to read from and just go off of, just in case I kind of get lost in the mix. But again, I don't think everyone out there for tuning in and just to say what we did for our first Crew Club event. So this week I'm actually going to be headed to Midland and then Oklahoma City Midland on Tuesday, oklahoma City on Thursday. In Midland we have Drew Limbacher, the CEO of Cedar Creek Energy Partners, talking about pretty much how to scale your business as a private operator in today's market. It's different than previous years. Not only that is the Permian Basin something that people still should be focused on as a private operator. And then in Oklahoma City, jeremy Ence, the VP of Operations Engineering at Ascent Resources, talking about extreme long laterals how far should and could we go? So that's gonna be a great conversation.

Speaker 1:

But we kicked it off last week in houston where we had, uh shun xion, uh harris, uh the senior technical advisor at chevron lead a fantastic conversation where kind of things around the table started getting real and vulnerable uh towards the end of the end of the evening and it was a great conversation and this was a leadership focused discussion. So if you're interested about leadership and how to actually uh leadership skills for career development, personal development in the oil and gas industry, energy industry, this was a leadership-focused discussion. So if you're interested about leadership and how to actually leadership skills for career development, personal development in the oil and gas industry, energy industry, this is a place for you. But before we got kicked off and let me thank the sponsors who were around the table. Again, this was last week in Houston and around the table we had WorkRise, welldrive, cooledgeb, edge bits and ai sales join us at the table to sponsor this event. So I want to thank them. Without them, this wouldn't be possible.

Speaker 1:

So let's kick it kicked off on what happened this evening, what we talked about around the table. Of course, it's not an only gas uh conversation without talking about, without breaking everyone, breaking out their cloudy crystal balls, and talking about what's happening in 2025. So we talked, we had a little brief discussion on predictions and expectations for what's happening in the energy industry in 2025, and so here's some kind of some takeaways that we discussed. And then we're going to get into kind of another topic we discussed, which is ai and how that's going to be impacting the industry, but then we got into what's going to be happening in the service companies, what's going to happen to of service companies, what's going to be happening to OFS side, and after that, that's when we dove into our facing obstacles, reframing obstacles and actually how to use that for career development. So, starting off again, we're going to go through 2025 predictions. We're going to talk about AI and the industry where it's at now. We're going to get into OFS, what challenges they have, and then, finally, the meat and potatoes of this conversation how to reframe obstacles. So again, let's dive in.

Speaker 1:

So, number one 2025, what's going to happen in this industry? First off, 2024 saw a dramatic, aggressive year when it came to consolidation. There was a lot of record consolidations, a lot of anxiety out there, actually. So let's talk about the landscape that's changing in 2025 and what people are seeing. So, number one data and technology integration. There's an expectation that companies will develop algorithms and combinations with AI to enhance decision making processes. Now, when it comes to actually approaching projects or obstacles, or creating tasks and all that stuff, ai is good for that. But AI seems to be around the table in this day and age, really good at speeding up decisions, finding those points, I guess, in the data that are flagged, and a better decision is to be made. So I think a lot of companies right now are relying on AI for decision-making solely currently. And you're seeing a different approach when it comes to AI from some of the larger operators, how they're incorporating it with their own systems or their own limitations to their systems, and also to smaller operators. They're more nimble, they can move more, but are they relying on AI as much as they should? So we're definitely going to see two types of companies, I feel like in 2025. Those that are being more efficient, incorporating AI and utilizing AI more, and those are just kind of playing with it a little bit to get emails out and chat GPT and all that stuff. So it's going to be interesting to see where AI actually starts kind of bleeding into everyday operations and everyday decisions with these teams.

Speaker 1:

All right, market volatility is another hot topic people are talking about. Okay, even though there's a new administration, all that stuff, there is still a lot of market volatility, and that is rapidly changing pricing. We've seen prices flooding to where they're at today, but anywhere from 68 to 80 kind of. But again, that's picking up, that's going down really rapid, really fast. You're seeing the gas market pick up too, which is exciting. But what's going to happen when it comes to capital discipline whenever the Haynesville does pick up? We're going to find out. Is the oil and gas going to historically forget, have that short-term mindset where we forget historically on ramping up and what we do to prices, or is it going to be more disciplined in approaching these gas fields, all right. So what else are we talking about? Shifting business dynamics, all right.

Speaker 1:

A lot of people at the table discussed there's a concern about the competitiveness of doing business in the United States A lot of service companies. It's very difficult to do business inside the United States. Prices are constantly beat down, extra competition and if you're out there in the directional drilling mud drill bit side all that side you know that there's competition out there. So is there real opportunity in the United States? We'll see. There's a lot of talk about longer term contracts, higher revenue generating projects in the international market. So how do we have the US service side thrive? Well, we'll find out. All right, I don't think there's an answer to that, but hopefully we'll find that out soon, all right. So there's also conversation about reservoir depletion. How productive is the Permian? So reservoir depletion rates in the US compared to OPEC nations could impact investment attractiveness.

Speaker 1:

And we're also seeing investments come from not only historic private equity companies, which is fine, which historically we didn't see that in the past 18 months we saw a huge, I guess, lull when it comes to industry investments. You're starting to see that a little bit more and more now, which is interesting, but we're also kind of curious on where else is it going to come from? Where else is capital going to come and flow into the market? So we're going to see what happens with that. I'm excited 2025, listen, 2025 is going to be another interesting year in the oil and gas industry. But I think it's really going to be. If you position yourself, if you look for opportunities and you're strategic and intentional about who you're conversing with, what decisions, what data you're looking at and what technology you're kind of consuming, I think that's really going to separate you from everyone else. All right, what else?

Speaker 1:

We all talked about dependence on forecasts. All right else. All right, what else? We all talked about? Dependence on forecasts All right, the industry's ability to plan uh, properly planned forecasts will increasingly rely on accurate forecasting related to uh, customer demand. All right, so companies express an ongoing need for open communication to adjust their business strategies based on customer activities. So this is something that I think. Again, talking about crew club, we're talking about crew club and where this is at. I'm very passionate about crew club because the conversations you get from the service side and the operator side. The walls are down, the platforms and pedestals are taken away. So conversations are had. So, again, it's going to be very interesting to see where forecasts are created. Is it guesswork or is it going to be more factual. Where forecasts are created is it guesswork or is it going to be more factual I think the companies around the table are probably going to walk away with more of a sharpened blade to carve out their strategy versus just kind of guessing.

Speaker 1:

All right, we also talked about energy transition renewables in 2025. There may be an increased emphasis on integrating renewable energy sources within the grids all right, which in the grid, which could affect energy distribution market dynamics. So what is the increasing reliability of unreliable? I'm not saying I'm not knocking it. I think we need all energy, I love all energy, but when it comes to actually implementing an unreliable energy source into the mix, I think that causes for a lot of headaches, a lot of pressure, a lot of pain points for a lot of consumers out there. So we're definitely going to see some conversations happen around the energy transition, which I call the energy addition and renewables, all right.

Speaker 1:

So one person said a great quote in this. They said we won't have the same jobs in three or four years. All right, so think about that. How will your job change, whether it's through market dynamics, whether it's through consolidation, whether it's through capital investment, whether it's you taking risks and stepping out on your own to pursue what you want to do? So we're going to see what kind of changes happen in this industry and how these job roles will change. I think that you're going to see a lot of the administrative stuff when it comes to permitting, when it comes to, I guess, maybe logistics, getting things to location.

Speaker 1:

I'm kind of curious on seeing how that's going to change with AI and technology. All right, speaking of AI, we talked about so remember, that's 2025 predictions. All right, now we're talking about AI and artificial intelligence. We kind of lost over this a little bit and it kind of just kind of fleshed us out a little bit more before we move on to the OFS side. So we discussed around the table, we discussed kind of before we kicked it off. We discussed the AI's role as an essential driver of innovation in this industry, and I'm kind of curious if it's innovation again, or speed of making decisions. I think, again, right now we're at the forefront of AI and companies are using it to not only to go through data and to form decisions, but also I think it's going to be a lot quicker decisions. I'm kind of curious on when the breaking point is like hey, listen, engineer, you made this decision. However, the AI model was saying you should make this decision, and I'm kind of curious on seeing where the responsibility is going to be held. Is your job going to be dependent on making an AI decision or a decision based on experience? So that's going to be kind of interesting to see.

Speaker 1:

All right, ai technologies can enhance efficiency, reduce costs and improve decision-making. Talked about that. There's concerns and opportunities in both. All right, well, while AI introduces challenges, including fears about job displacement that's constantly ongoing that and automation, it also opens up avenues for those who embrace this technology change. All right, investing your skills in learning these AI tools can definitely help you in your career. All right, expert insight encourage listeners that you out there to consider practical applications in AI on your work. How can you be more efficient, how can you be more quick, how can you be more concise utilizing AI tools that are out there? All right, now let's get into oil fields Again. This is the last section we get into before we dive into the obstacles and how it affects your career growth and career guidance. All right, all right. So service companies now. So service company is an interesting place right now in 2025. Pricing them, beating up below the floor All right. I think there's a lot of companies out there that are just kind of maybe practicing doing the same things to get, whether it's market share, whether it's getting in front of customers, and again, these. I think 2025 is a different market, a different environment. So OFS is going to be interesting to see.

Speaker 1:

I asked the question is it going to be more consolidation or potentially doors closed? A lot of feedback was if you're an OFS company with technology, with good, obviously good books, with technology that's can be invested with, you'll probably get acquired. However, if you're a a OFS company without investing in technology or anything like that, with dumb iron, the chances are things are tough right now. It might be door closing. So, hey, hopefully, hopefully, not Hopefully everyone can thrive in this industry. But I think it's been real. Reckon was it thrive in this industry? But I think it's going to be real settling of when it comes to pricing services and what it actually has to offer. All right, there's investment gaps.

Speaker 1:

We pointed out that the decrease in capital investment OFS sector. It has implications for research, development and operational improvements. Also, new technology. We talked about this Whenever in our industry. In the oil and gas industry, technology is usually spurned from operator support of OFS companies. However, through the past 18 months, investment in the industry has dropped. People are being more conservative with trying out new things because again times are tough. People don't want to stick their neck up, they want to operate below their AFE. Cash is king, cash discipline is king. So I'm very curious to see where the technology is going to come from. I think there's going to have to be a lot more partnerships from the beginning for technology to continue to thrive.

Speaker 1:

Again, technology we're talking about whether it's rig count. So we're not expecting rig count to increase that much either. That was another conversation around the table. Based through technology and efficiencies, you're not seeing rig count going to be going up or swinging that much. I think people are now less of the gas field playing. So again, it's going to be very interesting to see OFS companies release new technology, because again it takes two to tango and again the technology is for the operators. So operators probably should be having these conversations with the service companies before they even bring a product to the market. Hey, this is what we want. Let's talk about this, let's come up with a solution. That way we're not burning you know hundreds of thousands or millions of dollars creating this technology that may not, which may be something that we don't want. So let's all work together from the beginning Adaption to change. On the service side, a call to action was made for OFS companies to innovate and overcome these hurdles. How we got to think innovative outside the box? Maybe at other industries as well. So creating platforms for knowledge exchange and resource pooling within sectors can foster resilience and inspire new solutions and ideas. Okay, now we talked of course you know we talked about that for the first, probably about 45 minutes of the operator mastermind round table.

Speaker 1:

Then Shun kicked it off, and he kicked it off with a great quote from Marcus Aurelius Meditations. All right, this is the basis of this and for your career development. All right, the mind adapts and converts to its own purposes. The obstacle to our own acting, the impediment to action, advances action. What stands in the way becomes the way. All right, let me read that again the mind adapts and converts to its own purposes. The obstacle to our own acting, the impediment to action advances action and what stands in the way becomes the way. So, again, this is all about obstacles, reframing obstacles for your career growth.

Speaker 1:

So how do we look at obstacles in individuals, whether it's personal, whether it's professional, and face them for career advancements, for personal growth? And that was a great conversation starter on how we all look at obstacles. And the first point that we brought up was that it's very important to have self-reflection when you're dealing with obstacles along the way. Self-reflection whether that's journaling, whether that's assessing why an obstacle may hinder you from taking action, to kind of face it. A lot of times, whenever obstacles pop up, either we throw down, throw in the towel or we walk away from a certain obstacle. So maybe doing a little self-reflection on maybe finding out what is behind the anxiety, what's behind the lack of action whenever we are facing obstacles, all right, this helps you understand yourself as a professional and as a person for areas improvement, how you can position yourself for better opportunities whenever obstacles do pop up, and if you can predict an obstacle. Wouldn't that be a cool thing? To predict an obstacle? That way you already know the steps to get around it or to face it. Okay.

Speaker 1:

Also, it's important to stay informed, being aware of kind of the market dynamics, of what's shifting in the industry, whether it's industry plays acreage, spots, basins, technology. Understanding what's happening, I apologize, technical difficulties. Understanding what? This? I apologize, technical difficulties, understanding what? This is so ridiculous. Forgive me, apologies, I'm just trying to get all my notes right now and, of course, I'm doing this under pressure. All right, sorry about that everyone. Okay, now we're back into it. Okay. So again, let me get down there. I hate doing this. Now. I feel all flustered again, but it's part of hey, listen, it's part of ripping the band-aid off, getting back out there again. Of course, you're going to experience technical difficulties, all right. So again, when you're looking at the market, how can you predict some obstacles with your team? It's going to be a shortage on equipment, location, personnel, people. If you can better understand what's happened in the market dynamics, you can better predict on how to navigate these obstacles that pop up.

Speaker 1:

All right, one quote that was brought up was leveraging conversations and sharing insights to enhance personal growth, to foster a sense of community cooperation, navigating challenges. So, again, what does that mean? That means surrounding yourself with knowledge of people. That means having conversations. That means talking about the obstacle. What are you doing about this obstacle that's in your path? And again, being vulnerable, I think, is a huge, huge area of opportunity for a lot of professionals out there. All right, so what else? Yes, okay. So talking about obstacles we talked about, okay.

Speaker 1:

So in this industry, there's a lot of obstacles, especially in our career development, right, getting out there, meeting people, consolidation happens. So what do we have to do? So, number one look at networking like a tool. Surrounding yourself with knowledgeable people that actually understand obstacles, have been in leadership positions before, that are want to and willing to help you navigate through these obstacles, is extremely important. So building a robust network is important, okay, and having these discussions, all right.

Speaker 1:

So how can you, as a professional, all right, approach obstacles with a different mindset, which is kind of what we all talked about, and again, it was kind of what we all talk about. And again, it was kind of very cool conversation, because we're all sitting around talking. We're all talking about obstacles that we're all facing and challenges that we're all faced with personal, professional lives and next thing, you know, we start getting vulnerable, we start sharing what we're, what we're faced with, how we're approaching it, and it was great to hear the entire table kind of lean into, into each other and to kind of not just create some common groundwork between us but also kind of emphasize like, hey, listen, you're not alone, let's be blessed with, kind of what we're looking at right now with, you know, mindset of gratitude, and let's approach the obstacles in more of an optimistic, inspirational way versus being hesitant and anxious towards it. So here's four ways you as a listener, whenever do obstacles pop up in your path, how to navigate and actually how to thrive whenever obstacles pop up? So number one shift your perspective.

Speaker 1:

Whenever obstacles come up, whether it's change, whether it's someone not liking your product or project or anything like that, sometimes we freeze and we kind of take a lack of action. We think doom and gloom. Okay. So it's extremely important for you as an individual, and this is the thing we can control, two things we control our actions and we can control our thoughts. Okay, so you as an individual, it's important to you to control your thoughts behind this obstacle. How can you look at this obstacle instead of something that demotivates you or something that kind of puts you down or something that you don't want to pursue anymore because the obstacle just seems too tough. How do we look at that? And kind of look at that as an area of opportunity. Where can I grow from this? What avenues can I learn from facing this obstacle? So, again, understand that obstacles may appear larger in your mind than they are. It can actually help you reframe them and kind of not make a mountain out of a molehill.

Speaker 1:

All right, again the second thing you can do. Again, a lot of people don't take action based on fear. I understand that I'm guilty of that as well. Even doing this Energy Crew podcast just now, I was procrastinating. I was doing 15 other things because I did not want to take action. So the second thing is take action. I don't care if you doubt yourself. I don't care if you're afraid of this obstacle is going to ruin this or that. The lack of action is more detrimental to you than not taking action. Wait, the lack of action to you is more detrimental than taking any. If you take any action whatsoever, just go with me here, all right. So, pretty much, take some action. Take some action throughout anything, whether it's, whether it's a new project, whether it's an obstacle, whether anything.

Speaker 1:

I think people taking action. Action is probably one of the most important things we can do to progress our career and, as individuals, grow and learn more, all right, and actually take chances on yourself. I mean, it's so much. How boring is it to have all these ideas and wants in your head without even taking the smallest action to see if they'd flesh out? So, again, take action, despite your own personal doubts, all right.

Speaker 1:

The third thing you can do whenever obstacles pop up, seek support, whether that's mentorship, whether that's teamwork, teammates, whether that's people, whether that's teamwork, teammates, whether that's people, colleagues that are different organizations but have the same roles. Maybe you're facing the same things. So, again, sharing your struggles with others around you. I've talked about the power of being vulnerable as a professional, especially in this hyper-connected, disconnected world we live in. So, again, find your support group. Talk about obstacles, reframe it, take action.

Speaker 1:

And the last thing you can do is learn from your own failures. Okay, we all fail. I don't even like the term. It's tied to it, it's not even a failure. You're trying something out, okay, and from trying that out, you're going to learn what works and what doesn't work, okay. So, learning from your failures and reflecting on your failures, and then again, don't even call them failures Don't even like calling them failures, but reflecting back on the obstacle, what was in front of you, how you changed it, how you approached it and what were the results. And not only that what next time? Next obstacle that pops up, how will you do better? And honestly, I want to say out there, it's important also to celebrate your success. So celebrate you approaching your obstacle head on, because again, that's going to give you more confidence. The next obstacle that pops up in your way, okay, all right? Again, I think yeah. So again, that's it for this week's Crew Club update on what we discussed at our Crew Club roundtable. If you're interested about learning more, join the table. Head over to connection crewcom. That's C? O N N E C T I O N C? R? U Ecom, like Martin the crew, but again I want to thank everyone out there.

Speaker 1:

Just kind of my thoughts is 2025 is definitely a wild year. I think there's going to be a lot of stuff when it comes to consolidation. There's a lot of companies already announcing layoffs. So it's very important to you to, number one, continue building your leadership skill sets. It's important for you to continue to build out your networks and it's important you to, I guess. Now it's important you to lean in on some AI and technology and understand that a little bit more, and it's also important to be vulnerable and face your doubts. To be vulnerable and face your doubts, face those things that are laid in front of you that you're kind of hesitant of that maybe you'll get to tomorrow or something like that. So, again, face your obstacles.

Speaker 1:

I want to thank everyone for being at the table. I want to thank everyone out there for listening. Hope you found value out of this. If you did, please feel free to share it. I look forward to seeing you on the next Energy Crew podcast. I don't know if we're going to have a guest. I don't know if we're going to be covering another roundtable discussion. Again, we have two coming up this week, so pretty excited about that. Again, thank you all and we'll see you soon. Thank you.