Jay Young - CEO, King Operating Corp. Joins Houston's Morning News

Episode Transcript

Speaker 1 (00:01):
Now here on Houston's Morning News. A little less of
the green though. Right now oil price is least yesterually
Diplow sixty bucks a barrel.

Speaker 2 (00:08):
Join us.

Speaker 1 (00:09):
Talk about Jay Young. He's the CEO of King Operating Corporation,
lifelong oil man, comes from a family of oil men.
You've seen this kind of price before, Jay, what's driving
the price down right now?

Speaker 2 (00:22):
Yeah? Well, I mean there's a lot of all on
the markets right now that you know, Opek and other
countries have have you know, pulled the markets right now,
so we're we're seeing a little bit of a glut,
if you will. And and I'm also going to talk
about the uncertainty. I mean this word that you know,
it just keeps coming up every time you turn on
the TV or or you know, read the newspapers. Right now,

(00:44):
it seems like that word, you know, comes up and
it's something that I never heard of, an uncertainty Index's Jimmy,
I don't know, never heard of it until this year.
But there definitely is a lot of uncertainty and people
just just barreled down and not not doing much and
just kind of hang it up. So I'm gonna see
I'm going to say a little bit of an oversupply

(01:06):
from some of the markets, and demand is and I
don't mean overall demand, I mean just our normal demand
right now is coming down. So uh, therefore you've got
old prices that are going to come down, you know big.
The big question obviously is how long is it going
to stay down? And I don't I don't if you're

(01:26):
gonna stay down for for much longer. I don't see
it going Really, what do you think?

Speaker 1 (01:32):
Well, who knows? I mean, you know better than I.
You're right though, and I mean it always is all
about supplying demand. I guess the thing that surprises me
is is, you know, I know there's probably a little
lag time at the pump. I mean, pump prices have
remained pretty city and maybe even have gone up just
a little bit. I know we switched over to the
summer blends, but would you expect, well, would you expect
gasoline prices come down a little bit?

Speaker 2 (01:55):
Yeah? And that that does happen with the summer blend,
you know, before we hit we hit the gas pedal,
you know, for for summer travel and people traveling, you know,
going on places. Uh. When when that happens, obviously, demand
goes up and you'll see a lot of the gas
that's on the markets right now be gone. And then

(02:15):
you'll see you'll see people going again. But you know,
global demand is still growing. I mean there's no question
about it. With his data centers and and all the difference.
I mean, there's there's there's Billy Bob Thornton or Tommy
Norris on Landman, you know he talks about you know,
oil gas is still huge demand. It powers every one

(02:37):
of the top industries in the world and will continue
to do so. And as as they grow, oil and
gas grows, and there's no question that we need oil,
uh you know for a long period of time, and
we're we're not going to see this, you know, demand
go away like you know during the pandemic, which is

(02:57):
a I mean we saw the oversupply from OPEC and
the demand go to not zero but pretty close here
to the pandemic, and then all of a sudden it
was off. But if you see, and there was a
really great, great graft that we had on one of
our webinars this week talking about you know, once oil
and gas companies, you know, quit drilling, how much production

(03:21):
goes down. And as production goes down. You know, let's
let's supply the market demand goes up. You'll see process
going back up because of the shell and I mean
s H A L E. When when shell wells, when
you quit drilling those shell wells, production goes down drastically.
And that's not good because you'll see companies that are

(03:47):
You'll see companies like you know, Excellent, I just saw
them on the CNBC this morning. You know they'll they'll
they'll decrease their recount. Well as they're decreasing their recount,
that means that that they're taking a lot of you know,
supply off the RCAs. And when they do that, you're
going to see you know.

Speaker 1 (04:02):
I guess the good news about brig count in shale
oil and all that is that, you know, you've got
an administration now that is very pro drill, baby drill.
So maybe that'll give oil produces a little bit more
confidence going forward. Jay Young, always a pleasure, sir. Thank you,
The CEO of King Operating Corporation. Jay Young seven twenty
seven