CERA WEEK 2025

Episode Transcript

Speaker 1 (00:01):
Welcome to the nationally syndicated Energy Mix Radio show, produced
by the Energy Network Media Group. The Energy Mix Radio
Show will give you an inside look at the energy
industry and how it affects you by talking with industry leaders, experts,
and government officials on the Energy Mix Radio Show.

Speaker 2 (00:17):
Good afternoon from Sarah Week here in Houston. I'm kimbal Otto,
host of the Energy Mix Radio Show, reporting live in
the heart of a global energy conversation. This week, we
are exploring the challenges and innovation shaping the future of energy.
Joining me today are two esteemed guests. Ethan Phillips, who
leads Bain's America's Oil and Gas Team I could talk

(00:38):
about the evolution of investor sentiment, and Kate Height who
is Bain's Energy transition expert and she can talk about
E and R executive sentiment on the energy transition and
net zero. Welcome to the Interview Mix Radio Show.

Speaker 3 (00:54):
Thanks for having us.

Speaker 2 (00:55):
Thank you so First up, how do you all feel,
Sarah Weeks? Good in the way of anything new that's
happening that you guys are hearing that you kind of
didn't think you would hear here at the conference or
at the event.

Speaker 3 (01:10):
Yeah, sure. Yeah.

Speaker 4 (01:12):
So two things. First, the tone is very different than
last year. I think there's a renewed optimism around the
role that oil and gas, particularly gas can play in
the energy mix for for some time, I think there's
less talk about the energy transition and more talk about
how do we continue to deliver meet that the ever
growing demands for energy across the board while continuing to

(01:34):
reduce emissions overall.

Speaker 2 (01:36):
Absolutely, Kate, what are your guns? Yeah, I'd agree with that.
I mean, especially from the US perspective, right, we've had
us one of the leadership here. Definitely change of tone
the previous administration, Edergy. I do think that well, I
agree with you on sort of the energy transition point,
but I do also think that there is a vibe
of all of the above on energy. More energy is
needed all over the world exactly. I think Asia is
a really big part of the conversation in a way

(01:58):
that it really hasn't been before, and taking a leadership role.
I was pushing more labor is suitable energy in addition
to some of MIGA think nice shorteners you as well.
I take energy framed as a security issue. It's really
good before really across the board. Absolutely, listening from the
US to Europe up to different expage and well, so
that's interesting to see. We're going to get into a

(02:20):
report that's being produced here shortly. But some of the
themes that I'm also hearing are, of course, the tariffs
that are coming, how is that going to affect? And
you're absolutely right retaining to security. I hear China, China, China,
training and China, and we need to be careful with
how we're looking at security as we're moving forward in
artificial intelligence, and how are we going to power all this?

(02:42):
This is some of the stuff that you guys are
hearing as well. Yes, that's right. So let's dive into
the report. First of all, it was a survey that
you guys did on energy leaders shifting from net zero
expectations admit financial and policy changes. So let's get started
with with nearly half the energy leaders now predicting that
net zero will be here by twenty seventy or later.

(03:06):
My question is what do you guys think, What do
you guys think is causing the ship and this expectations
compared to the previous years, And I think you alluded to.

Speaker 4 (03:15):
That, yes, correct, Yes, that's correct. Yeah, the surveys you
mentioned energy executive is nearly half now expect the net
zero to happen twenty seventy year later, just a substantial
increase from even just a year ago is less than
a third we're citing that date, so a major jump.
The survey mentioned several drivers of that, but ultimately it

(03:36):
boils down to economics. There's quite a bit of capital
being deployed in lower carbon energy sources across the board.
The challenge is just the economics don't support capital at
the pace and depth needed to achieve net zero by
twenty fifty. So I think there's a growing recognition that

(03:58):
it'll take longer to get the two you know, the
two factors that the survey sites as being the biggest
roadblocks are one customer willingness to pay a green premium
essentially pay more for lower carbon sources, and to the
regulatory support to enable the economics. So again, both of
those just come down to the fact that these energy

(04:19):
sources are more expensive and will be more expensive, not
everywhere in every case, but for now in most use
cases are more expensive, and just the recognition that the
returns are there is what's slowing. They're creating the perception
that the transition will take longer than people might have
thought about a year ago.

Speaker 2 (04:35):
Now, you mentioned that these are executives in the energy space,
so they're very familiar with this, But so is our
new Secretary of Energy, Chris Right. So it's stud verbum
with the Secretary of Interior. And of course the Trump
administration is taking a lot of what they say and
stock how familiar or not familiar. How much do you

(04:56):
think that these two secretaries really think about also zero
and the administration itself. I mean, I know we need
to be making that push, but it doesn't seem to be.
It does seem to be on the forefront, but there's
like a lot like he was here a Secretary of Energy,
Chris Wright. He actually announced his fourth Secretary Order in

(05:17):
which he's focusing on energy for right now, so an
important bridge fuel. What are your thoughts on that?

Speaker 3 (05:24):
Sure?

Speaker 2 (05:25):
So, I mean the yesterday the Secretary clular articulated that
climate change is something that he understands is fascinatingly right,
So I think it was nice to get that sort
of clarification they had the destination. I do think there
is an orientation around sort of the security question, right
like we sit on an enormous amount of fossil resource
in the US, we have an offersity to utilize that

(05:48):
resource to our industry, to grow industry domestically, to feed
the AI demand as you cite it, and also looking
for LG exports and exporting our energies to the world.
I do think that Secretary Right has a lot of
experience in a number of different technologies and on the
sort of zero emitting side. I've heard in citing nuclear
and geothermal as being things that he's very sorted and

(06:10):
export it. So one of the things that I'm really
looking for sort of in this year with this administration,
but also in the Congress this is the conversation around
permitting and energy infrastructure and enabling infrastructure for some of
these new forms of energy, including nuclear. I think that's
something that a lot of people are really excited about,
and as we hear sort of the ideas of reindustrializing

(06:33):
the US the big big power needs of artificial intelligence,
nuclear is a really interesting option. So it'll be very
interesting to see how far we can get in these
next four years and removing some of those barriers and
really focusing on some of those technologies that can provide
power at the big scale that we really need right now.
But also, lookit, I'm curious, are either one of you

(06:54):
hearing or what are you hearing here at the conference
pertaining to the teriffs thoughts some other than that changes
every day. Okay, was it sure? Because we've been here
at the studio, let's talk about rising capital project cost
and the constraint budgets influencing decisions around clean energy investments.
It seems as though we've kind of switch gears definitely

(07:16):
from one administration to another. So what does your report
or survey talk about in this area.

Speaker 4 (07:22):
Yeah, sure, we well, first of all, costs them and
going up in capital projects for quite some time for
a number of reasons. Kate mentioned permitting costs and permitting
timelines or as a challenge labor costs. Inflation is another
huge challenge, you know, I mentioned earlier. One of the
biggest reasons executives aren't seeing as much capital flow into
energy sources of all sorts, including new energy, is economic

(07:47):
stone support it. So the best, one of the best
ways to improve the economics is to improup the capital
efficiency of projects. So we're seeing a number of innovations,
particularly in the new energy space. Executives are or using
digital and AI tools across the board, both to pick
better projects, better citing, find better locations, better markets, but

(08:08):
also to improve the economics of the project itself, improve
the efficiency of the capital, whether through better better supply chain,
better value engineering, looking at ways to improve the workflods
and reduce the labor costs across the board.

Speaker 5 (08:24):
Absolutely stun we see capital projects is the big bugaboo
of energy at large, right, getting more stuff built during
a timing instraint with limited capital and labor.

Speaker 2 (08:37):
Right. So I think that you know, some of these
innovative tools have really been able to help companies accelerate
and a lot of the conversations we have with clients
are about, you know, how to utilize artificate intelligence to
catalyze some automate things and ourf machine for the teams.
Let's talk about what roles the shareholders planes or or
lack of their apps. So plane in the pace of

(09:00):
scale up transition oriented with energy businesses, how do shareholders?
Is there a lot of still support and pressure for
companies to move into energy clean energy projects as we
have a new administration. What did your survey come out
with what's the thought is the shareholder.

Speaker 4 (09:18):
Yeah, so, look, I mean shareholders. Shareholders care about more
than anything is sustaining growable cash flows, and you know
that they tend to be agnostic about the source of those,
you know. I think even a few years ago, there
was a strong sentiment and a strong push to reduce
exposure to oil and gas again with this sentiment that

(09:39):
maybe demand was peaking within the decade and that those
cash flows would be declining rapidly after that. Again, I
think with this new recognition that oil and gas, and
probably gas in particular are likely to be part of
all remain a large part of the energy mix for
some time, I think you're seeing, you know, more recognition
from shareholders that, to use Kates phrase, all of the

(10:01):
above is the answer, and those companies that will be
able to deliver long lived cash flows are going to
be rewarded. Continue to deliver cash flows from existing oil
and gas assets, redeploy that capital to oil and gas
assets that can be resilient, while while finding new energy
sources that can deliver the returns over time is going

(10:25):
to be the winning BIX.

Speaker 2 (10:26):
You're an energy transition, it's the expert for pain and
I guess I want to drill down with you a
little bit more pertaining too. I'm not sure who the
executives were, but I would imagine a lot of them
are in the large integrated exploration and production companies. Years back,
there was a lot of sentiment to make the change
into energy transition, and as we move through different administrations,

(10:49):
political side has changed. The shareholders seem to go back
and forth in some ways they want to adhere to
ESG and new standards on making that change. Then thing
also I think realized that, well, it's not as profitable
in some ways it might have been in the past.
So what is happening pertaining to as these executives sort

(11:09):
of discussing the transition, are shareholders coming along understanding we
can't have it both ways? In many ways, we can
have some ways, maybe not all the way that the fourhand.
Do you start seeing the reality what this really looks like?
Tell me your thoughts on this, Yeah, I mean I
think we see in general accross the word. So the
intersector is very diverse, right, And so our survey included

(11:31):
oil and gas, but it also utilities and agriculture and mining,
et cetera. And so I think across the board, we
sort of see this return to focus them a core,
focus on what you're good at. Focus on. If you're
an oil and gas company and you've been exploring for
a long time, think about how you could deploy those
into sort of near near inadjacencies, carbon captured underground seaqustrations,

(11:52):
guth arm all use your drilling technology for that sort
of thing. I think we have seen that, you know,
some of the integrated companies that explored some of these
new energies, businesses that are farther from their core, they
just weren't shareholders weren't seeing those thing returns all those
new types of businesses for many different reasons. I mean,
just structurally those types of businesses don't make returns in
the same way. But also there were different motions, different

(12:14):
muscles for these companies with vellows, So I think that's
sort of one set of companies. And then on the
utility side, I think, you know, deploying more renewables is
part of every utility strategy, absolutely right, So I think
that's a different set of shareholders, but of course a
different set of returns with utilities companies. So I think
you can't really aggregate sort of all of these sectors together.
But I would say that shareholders in general law returns

(12:36):
the way you can describe, but also right in this moment,
they're very focused on supporting companies to really focus on
the core of what they're good at, and looking at
this package of different types of energy companies as part
of your portfolio, how each of those fills a bit
of a different niche or different parts of the energy transition.

Speaker 3 (12:53):
It makes fair cook sense.

Speaker 2 (12:54):
So let's take a quick break. You're listening to the
Energy Makes radio show, and we'll be right back. And
we're back. You're listening to the Energy Mix radio show.
Let's talk about the report. It highlights optimism about AI,
which has been a big thing here at SERA Week,
and emerging technologies and how do you both see AI

(13:16):
transforming operations. You had mentioned earlier Ethan about technology using
it for more efficiency and how that is looking promising,
but also it's addressing I guess financial constraints in the
endyceptor what you alluded to earlier. Do we want to
drill down on any specifics or was there any drilling
down on any specifics that you could highlight in what

(13:37):
way is this coming to the forefront.

Speaker 3 (13:39):
So definitely all the.

Speaker 2 (13:41):
Reasons eth incide it, but I also want to sort
of spin it back on the opportunity of AI for
energy companies. Absolutely love to hear that something that's been
really interesting. It's sort of AI has been at the
center of many conversations, many international conversations lately, and I
think that sort of on the how you can approve
operational efficiency side, we're pretty well covered that manifests itself

(14:03):
differently in different types of companies and certainly even a
bay we're deploying it sort of across the boards mat
or own business martition. But then there's the idea of
how do you power all this right? And this is
this is really what's behind the energy dominance in gen
Ibte as you mentioned, for the combination with China is
going to win the AI race. It's going to be
able to write that power and really power is blinded, right,

(14:25):
and so power provided by regual levels, provided by firm,
clean power provided by natural gas and behind the meter,
in front of the meter connected to the grid. All
these things were sort of tied together. So I have
found it very interesting to speak to energy companies kind
of out of stross that the different parts of the
value chain, about the opportunity it presents it, how many
conversations they're in with these companies right now about how

(14:46):
you get that power deployed to your asap? Right mind,
peak oil is anticipated to peak at twenty thirty eight.
What implications does this have for legacy as in their
roles in how they're going to meet energy future demand?

Speaker 4 (15:04):
Yeah, sure so, I think that was the median that
are responded. So who knows exactly when oil is going
to beat? But I think that's as good.

Speaker 2 (15:13):
I've seen a few and they're kind of in that
thing as good.

Speaker 4 (15:15):
A guess as anyone. Yeah, exactly, as good as good
a guess as anyone. Really, What it does is that
it puts a real burden on oil and gas leadership
teams to do a couple of things. One to ensure
that there is cost competitive and efficient as possible so
that the assets they do have remained competitive as as
demand peaks. That doesn't mean it goes away entirely. It

(15:37):
just means that the most cost efficient barrels are going
to be the ones that remain standing for the longest.
But also again, given the longer time frame that you
know that the industry centiment is expecting. It puts you know,
a premium on building a portfolio of assets and reinvesting
in their portfolio to ensure that they actually sustain resilient

(16:00):
and resilient assets in resilient cash flows. Even if it spoiled,
does PE can come down. So you were seeing a
you know, a return to economic and less carbon intensive
deep water projects. We're also seeing a lot of m
and A activity around the globe is executives look to
rebuild and ensure that the portfolio is going to be resilient.

Speaker 3 (16:19):
Form by some time.

Speaker 2 (16:21):
And I think sort of adding to that, I mean,
something else that I hear a lot of clients talking
about is focus on efficiency costs for barrel but also
emissions for barrel. Right. That is certainly something that is
top of mind for a lot of different operations. And
I think there is a thesis that you know, sort
of as the world transitions to more cleaner energy over time,

(16:43):
the cleanest soil and gas is going to be that
which trimming for the longest take in the system. Right,
And so conversation around CCUS, around methaneabatement, around you know,
new types of equipment and sensors to detect emissions. I
think this really continues to be a big part of
a conversation.

Speaker 4 (16:59):
And just to build on that a little bit, I
think this has been going on for quite some time,
but you're really seeing with peak oil a divergence between
the outlook of demand for gas and the outlook of
demand for oil.

Speaker 3 (17:08):
So one of the big.

Speaker 4 (17:09):
Themes, you know, if there is a macro theme for
this conference, it's all of the above. If the double
click within the hydrogarbon world is gas and the race
for energy in particular is going beyond for quite some time.

Speaker 2 (17:22):
Absolutely, So we've had a lot of discussions with crew traders,
so a little different, but they are actually it's something
that doesn't get enough attention but I think it should,
is how they are actually selling, you know, globally. You
know a lot of these countries that are very focused
on a mission yes, admission reduction and these things, they're

(17:45):
buying their crew first and they're getting premium pricing. So
we're really starting to see it, you know, migrate all
over the value chain. Let's talk about emphasis on dual
challenges of increasing energy supply while the car urbanization, I
think our listeners. I know I would like to figure
out how do energy leaders effectively balance and compete in

(18:07):
these two priorities that seem to be the opposites of
each other.

Speaker 3 (18:12):
Yeah, well, well Kate alluded to it.

Speaker 4 (18:14):
I think you know that the challenge that boiling gases
executives face in particular is the ability to continue to
deliver cash flow from their existing operations, reduce operating expense,
but also focus on carbon emissions per barrel and and
emissions per barrel is increasingly going to be one of
the variables that executives teams look to manage across the portfolio.

(18:35):
It's not always the lowest cost, but how can you
improve your carbon intensity over time from the overall portfolio?

Speaker 2 (18:41):
And I guess and y'all did discuss this, but I
guess where I was looking for an answer is as
you as we go through the Encora pods and you
see that most of the majors have already made a
lot of transitions into if you just go into their
rooms and you see they're in green, they're in renewables,
or they really make that transition. But you all had
a lot of energy and other type of executives discuss

(19:04):
or talking about this in your survey. Are they too
making these changes as well as easy? As we can
see that the large ones are smaller independent exploration utility
companies struggling to find their way out to diversify. Are
they taking advantage of this too in someone do they
how to stay competitive? It's a really great question, and

(19:26):
the small medium on break question is a really good
question when it comes to matters. So the super majors
all have a big incentive bail trade globally. They trade
in markets who care about intensity but barrels and cargoes.
The small and medium sized operators, many of who have
partnerships with the super majors, may feel some pressure from

(19:47):
them to reduce their missions and may receive some subsidy
from their their their customers to enable them to do this.
But it's it's an economic absolutely for them, you know,
more than anything else. It's not any to hier to
be harmful to the world. Is it's not economic? Lots
of times to control emissions, or you don't have the
infrastructure in place, that's an kill that bood I think

(20:08):
that we have seen, you know, in the past probably
five years, there's been a push by private equity. It's
you know, a flyiring a number of these smaller operators
and then sorted using the thesis of you know, getting
ready to for exit for these companies to kind of
clean up their missions and make it more valuable. I
think we're seeing less of that activity now and so

(20:28):
we do have and this is really a problem that's
unique to the US in many ways. Sort of this
this middle of operators who recognize the problem, who would
be glad to do something about the problem, but the
economics just don't.

Speaker 4 (20:42):
Yeah, it's the it's an economic challenges Kate mentioned. It's
also for many smaller operators, they're only in one basin,
so they don't have the ability to shift their capital
to lower carbon intense basins. But you're seeing a lot
of innovation in the service sector to electrify, which is
you know, the best and nearest inn way to reduce

(21:03):
the emissions of the operations themselves, so with EFRAC and
of bringing a grid power to the permiaan for example.

Speaker 2 (21:10):
It's an exciting time, but it's probably very tough to
hear and come from the INDUS show. Let's take a
quick break. You're listening to the Energy Mix radio show,
and we'll be right back. And we're back. You're listening
to the Energy Mixed radio show. Let's talk about utilities
based surging energy demands from AI, drift and data centers.
Do you all believe the industry is adequately prepared dominicion challenge.

(21:33):
We've heard a lot of discussions we don't really have
a choice, we must. We've also heard there was a
group yesterday speaking about how we must meet this demand?
How are we going to do it? We also need
to be careable with cyber security and maybe sure that
we as we grow, can grow in a way that
it's safe as well. You don't want malware. And so
that being said, it's a it's almost like the wild

(21:53):
West in some ways. These companies are having to deal
with this. How are utility companies dealing with providing this?
And it's like that. Well, I think that in general,
the American economy is pretty innovative. So when you have
an incentive to develop something, you'll likely develop it. Right,
So if I think that that is a wonderful aspect
that we have here. I think one of the challenges

(22:13):
that utilities are having right now is trying to really
size what the demand is going to be used, right
abody seems to know, right, which there are like a
billion different estimates and in a fluctuois every day, as
like ships themselves get more efficient, when the data centers
get more efficient, or we have new forms of cooling
which neebally dator center and take up a much smaller footprint. Right, So,
so the technology itself is evolving a lot. I think

(22:33):
that AI right, It's a lot of focus right now
because it's sort of the new kid in town. It's
not necessarily going to be the biggest share of growth
and electricity demand ever time.

Speaker 3 (22:44):
Right.

Speaker 2 (22:44):
That's coming from a number of different areas of the economy.
If we do have a for real reindustrialization any US,
that's going to be a lot more industrial load that's
going to be called for. We have electrific engin of vehicles,
we have building electrification. There are a number of different
demands that utilities are trying to size right now. Right.
So in general, yes, I think that especially given sort

(23:05):
of the energy affordability imperative, right, we're going to see
a lot of innovation and a lot of efficiency utilities.
I think that there is an incredible amount of energy
efficiency games that are just mating out there to be
taken advantage of. And I'm hopeful that we're going to
see more of a push into that space even as
they built additional generation capacity. Absolutely, you're inspiring me. Last
question ERP modernization first for the listeners. What is that

(23:30):
and is it seen as a strategic imperative and how
can we upgrade these systems to unlock efficiency and innovation?
Is it possible in energy companies as well? So let's
begin with what is e R.

Speaker 4 (23:43):
It's just that the big systems that the companies use
to manage all of their resources in voicing, supply chain,
et cetera. SAP is, you know, the biggest single provider
oracle other systems like that. The reasons why it's important
is if you're really going to realize the potential of
AI and UH and newer digital technologies that's all based

(24:05):
on high quality data and a lot of the One
of the biggest barriers that we hear from executives on
the ability to take advantage of of of AI and
some of these newer, newer technologies is the decades little
legacy systems that they have which doesn't allow the easy
access and processing of that data. So it's just a
foundational element, technology element to get upgraded, you know, get

(24:29):
the latest RP systems in place, in order to have
that structured access, access to that structured data to be
able to deploy the exciting stuff that you hear about
in the end lore and everything exactly. So it's the boring,
the boring plumbing to make the exciting stuff work in y'all's.

Speaker 2 (24:45):
Report, Is there something that I missed that you feel
is very important to talk to the energy enthusiast that's
listening to our show and wanting to learn more what's
happening here at Sarah Week. What are some of the
things from happening and what did your report more specifically
reflect what you might have found to be very important
for us to anil.

Speaker 4 (25:00):
Yeah, I can lead on. I mean, we we talked
a lot about it, but you know, my biggest takeaway
from the report was sort of this tale of two cities.
We let off by talking about the sentiment that net
zero maybe you know, maybe taking a little bit longer
than people thought even just a year ago, but also
but still that there's of even more conviction that decarbonization

(25:22):
and reducing carbon emissions overall would happen, and it would
just take time, innovation, and capital. So you know, so
I Kate mentioned the all of the above. I think
that's sort of the the the the answer or demand
is going to be demand for energy of all sorts
is going to be continuing to grow. The Uh, there's
a lot of talk here about the seven billion people

(25:42):
in the world who have energy debt compared to those
of us who are fortunate enough to live in the
US and Western economy. So being able to meet their
needs as they improve their lifestyle will require kind of
all sources of energy, and so we've got to deliver
that while while reducing the emissions of that. And so
I took away, frankly, a lot of optimism that the

(26:03):
industry was coming to terms with meeting that dual challenge
in a practical, pragmatic way.

Speaker 2 (26:09):
Absolutely, we have countries that are still in energy poverty.
We must continue to work. Yeah, I mean, the foot's
not off the gas, right, I mean we're obviously you're
the electric pedal, right, right, or whatever your source. I mean,
I think that we're now in this interesting sort of
inflection point. We have been probably for the last two
years of oh now we understand what this is going
to take, right, and so I think this is where

(26:30):
the funds, right, this is where the problems get solved,
and this is where people really dig in. I think
there's a ton of opportunity right now. I mean, one
of the things that I would love to highlight from
the survey is like we're seeing continued huge growth and renewables,
battery storage, can't get enough of it, nuclear how soon? Right, So,
I think we see this sustained demand from firm power

(26:51):
to back up renewables. We see a sustained demand for
clean firm power as soon as we can get it,
whether that comes in the form of natural gas plus
c c us, whether it comes in the form of nuclear,
whether it comes. So I just think it's a really
exciting time to be in the energy business and to
really walk out on somebody who's flint energy topics. For sure,
one thing is for sure, it's going to be an

(27:12):
exciting right absolutely. Here, Kate Ethan, thank you for joining
me on in the energy mix Radio Picture than Spanking.
And now it's time for me to welcome on the
governor of the Great State of Alaska, Governor dun Levy
Governor done Levy, Welcome to the Energy mixtry wish here.

Speaker 3 (27:31):
Thanks for having me.

Speaker 2 (27:32):
So you are scheduled to speak at SARAH a week
in two days from now, so I'm glad to have
an interview with you. Before you speak, I'd like to
give you maybe an opportunity to tell our listeners. Is
there anything specifically that you're going to discuss that you
want to discuss with us beforehand, Is or anything you
can let out of the bag just a little bit. Well,
I think its urch.

Speaker 3 (27:51):
I think a lot of it has already been. It's
been out of let out of the bag. Meaning Alaska
is the only state that was given an executive order
by President Trump across the board on everything from oil, gas, minerals, metals, timber.
The President sees Alaska as a solution to much of
America's issues. Many of their problems we can actually take

(28:14):
care of. And so you know, excuse me. Alaska has
always been an oil giant. We have Trans Alaska Oil Pipeline.
We were producing two million barrels a day back in
nineteen ninety ninety one. We're down to about five hundred
thousand barrels now, but a number of exciting nude plays
or have happened in Alaska, including Willow and some others
coming on Pica Quaca or Shoe. These will be plays

(28:37):
that will up be producing gas excuse me oil here
in there in near future and huge amounts of gas.
And right now the President has got behind very large
LNG pipeline project that would supply Asian allies with gas
with Pacific and supply gas internally for Alaska as well.
So a lot of exciting things happen before.

Speaker 2 (28:57):
Since our show's primarily a lot of them air in Texas,
we're in the Marcella Shell, we are in Mexico, New
Mexico and Mexico. Tell our listeners a little bit about
your background and what made you really want to seek
the governorship for the great state of Alaska.

Speaker 3 (29:15):
Well, I live up in nineteen eight three to Alaska
of Pennsylvania. I was actually born and raised in scrant Pennsylvania,
and that's where the more Selish Shell gas center is
just north of there. We grew up as a family,
grew up peating her home with coal because scrant was
cole capital of the United States at one time. Anthracite
coal in Pennsylvania was where oil was discovered, so oil

(29:38):
gas cole that is the Keystone state. Anyway, I went
to Alaska nineteen eighty three and live in rural Alaska. Oh.
My background is actually a teacher, principal superintendent, so it's
in education. But always want to serve and want to
serve the people of Alaska. So ran as a state
senator and then this is my second term as governor.
You just want to make sure that Alaska real license train.

(30:01):
Alaska is the only state in the entire United States
that was compelled by the federal government to collectivize all
of its resources under the sovereign In other words, were
similar to Texas in many ways, but also very different.
In Texas, you'll have thousands and thousands of landowners that
own the middle rates. In Alaska, we were prevented from
doing that in order to become a state because the
federal government thought we were too big of a land

(30:21):
mask too small of a population to pay for our
way to an income tax. So they wanted us to
develop all of our resources. And as a result of that,
we really have a compulsion to develop. But since date
t in nineteen fifty nine, especially during the seventies eighties,
nineties and so forth. The NGOs, the environmentalists have wanted
to turn Alaska the national parks. It's been very difficult

(30:43):
to have Alaska actually realize a stream of fully exploring, developing,
and putting all of these resources in the plane.

Speaker 2 (30:52):
So let's talk about not recently. Some years back, we
did a cover of the Willow Project, which is actually,
of course in a last a Conico Phillips project. Can
you In our cover we discussed the problems that this
project actually encountered similar to other projects, that they take
a long time to develop these projects, and that was

(31:15):
exactly the problem. And so when we covered it was
showing how important some forms of energy reform would be
at the federal government.

Speaker 3 (31:23):
Permitting core permitting, like the court cases, all of that,
And that's what I'm hoping that the Trump administration in
the second term really takes a look at, as well
as Congress. How do you prevent the whip song effect
that happens for investors and sobers like Alaska. When you
want to be able to develop your resources, you bring
in investors, they see the resource, that's good resource, They

(31:46):
start to develop a plan, and then law suits appen,
and then los suits happen, and really for the purpose
just of having lawsuits which can then extend a play
a project many many years with cost over is it
which can occur when that happens, and then there's no
real definite ending for some of these loss sings. And

(32:06):
so long story short, we'll all went through that whole process.
You know, it got out of it all high, as
we would say, and there were going to be producing
some great oil here very soon, upwards of one hundred
and sixty to one hundred and eight thousand barrels a peak,
which would be significant for Alaska. But again that issue

(32:27):
should be an example for the entire country and including
Congress to put fixes in so that we don't go
back to this situation where NGOs could gene rail great
projects that are environmentally sound that help America, help Alaska,
and move this country forward.

Speaker 2 (32:44):
Tell me a little bit about some of the differences
between the last administration that your state faced with federal
bands and on leases versus what you think you'll see
with Trump administration. And how quickly have you already started
to see.

Speaker 3 (33:00):
It's truly night and day stark. So, the Biden administration
put about sixty eight almost seventy sanctions on Alaska as
soon as they got into office. Wow, taking oil plays
off the table, taking mineral plays off the table, timber
plays off the table, literally crippled Alaska. And if the
Harris Harris team got in for four years, Alaska in

(33:23):
many respects would have been done and this would have
been a game ode for Alaska. So President Trump has
always been friendly to Alaska and always recognized its potential
to create jobs, wealth, revenue, opportunity. And so when he
was re elected November fifth, it was almost like a
commuting of a death sentence for the state of Alaska.
And on the heels of that, the President, as mentioned,

(33:47):
put together an executive order solely for Alaskar because of
all the opportunities, all of the resources that we have that,
if unleashed, would really make a difference in this country,
difference to our Pacific allies, for example gasunerals, and a
huge difference to the stable Aska. So night and day
second order working with us been printed place of working
with the President, of working with the Secretary of the Interior, Barium,

(34:09):
Secretary of Energy. Right, we have a tremendous opportunity at
potential and it's incredibly optimism going forward.

Speaker 2 (34:17):
Well, let's take a quick break. You're listening to the
Energy Mix radio show, and we'll be right back.

Speaker 6 (34:23):
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a golf tournament at the Club at forest Ridge. Your

(34:45):
participation supports sky High for Kids, a mission to end
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Speaker 2 (36:12):
You're listening to the Energy Mix radio show. Can we
talk a little bit about pipelines, the development of pipelines.
How do you envision the Great City of Alaska the
energy future when we talk about pipeline right.

Speaker 3 (36:24):
We have enormous amounts of gas that we want to
mind its eye, and it seems like every year we're
finding more gas in the state of Alaska. Well, our
Asian allies need gas, they need reliable gas, they need
American gas. To be honest with you, so they have certainty.
Alaska actually pioneered LG export in the Western world nineteen

(36:44):
sixty four. The first planet went online in Algeria in
nineteen sixty nine. Alaska was exploring gas that Japan. They
did that for fifty years reliably. And so Alaska has
a tradition, a history of shipping gas to Asia, Japan,
but now Japan, Korea, Taiwan, Vietnam, Thailand, Philippines, We're all

(37:04):
looking for a gas to diversify their gas and Alaska
is a perfect opportunity for this to happen again. It
also helpens in it helpens helps Alaska in state with
our own residents, but more importantly, our Asian analyzes can
rely on America for decades and decades and decades of

(37:25):
clean elastic gas.

Speaker 2 (37:27):
Let's talk about carbon capture as well. What do you
see in the way of carbon capture and storage for Alaska?
What's your energy strategy there?

Speaker 3 (37:35):
We can store estimated at least one hundred and fifty
giga tons of carbon one hundred and fifth thousand gigotons
of carbon in both cook Inlet and on the slope,
and for example, in cook Inlet, which is a completed
oil and gas field. This is where we sent the
gas to Japan for fifty years. There's incredible horse base

(37:55):
there and we've we passed the law with the regulations
have done as well on the ability to sequest their
gas there. So we are in discussions will some outfits
in Japan doing just that. Incredible opportunities to sequest the
CO two again, both in Cooking lit and on the
slope and in other areas of Alaska that we still

(38:16):
have to map out. So carbon, whether it's carbon, whether
it's oil, whether it's gas again, whether it's minerals, whether
it's timber. Alaska's got it along.

Speaker 2 (38:25):
Let's talk about the environmental groups that are opposing full
projects everywhere as a seasoned elected official or used to
dealing with them, or are we ever really used to
dealing with them? But how are you going to take
on some of these projects now in light of the
new administration? Are any plans you have to try to
maybe build a bridge between these groups so they can

(38:46):
see the benefits.

Speaker 3 (38:48):
I think they're very smart groups, the people involved. I
don't think it's an issue of education. They know that
we can develop rec versus in America and Alaska better
than nowhere else in the world. They don't care. They
want to shut down in America. They want to shut
down in Alaska. And when you do that and you

(39:09):
send it overseas, you just degrade the environment even even
more so absolutely, and your jobs, opportunity and national security overseas.
So you know what I've learned over the years is
I've thought, like you just mentioned, that these groups just
needed more facts, more figures. They don't want facts and figures.
They just want any of this to stop in America

(39:32):
out And you know, I thought they were.

Speaker 2 (39:35):
Environmentals, But what's the purpose of this do we have
to know?

Speaker 3 (39:38):
That's the essential question. I thought they were environmentalists. But
if you willingly know that when you ship the stuff overseas,
that you're going to wreck the environment overseas, there's no protections.
You're going to support dictatorships through these actions. You're going
to ship jobs over national security over you're going to
You could care less about child labor or minorities being persecuted.

(40:00):
They don't really care about that. They care about shutting
down this country. And that's what the rest of us
have to accept. It's not about making the environment safer.
We do it better here than anywhere else in the world.
It's about killing these industries of this country and social
engineering this country and the something that doesn't resemble today.
So there are actually, I have committed respects the enemy

(40:21):
of this country and they need to be dealt with.

Speaker 2 (40:24):
How much thought and discussion has gone into the new
administration around looking at how to help Alaska another spin
some announcements with.

Speaker 3 (40:35):
You again the executive orders they support for the big
natural guest pipeline. President Trump mentioned this in the State
of the State's of Beach too, the State of the
Units Beach the Congress. He has mentioned that Alaska is
a solution to many problems. It see further to try
to kill a number of birds in one stone. It's
not just about resource development, but it's about how do

(40:56):
you tackle this thirty four trillion dollar depth that we
have and eat debt payments. You can't just keep prating money.
So he understands basic economics. You have to produce something
of wealth. Well, in Alaska's case, that's oil, that's gas,
that's minerals, that's rare orsi, that's timber. So right now,
if you don't produce that, there is really no value

(41:18):
in the ground. But once you start to produce and
develop with those resources, you create new wealth. So you're
not borrowing money off of our kids and our grandkids.
You're creating new wealth now to help pay down debt
and do help service all the you know, the goods
and services that America runs on.

Speaker 2 (41:37):
So I'm going to circle back around because I have
one last question after this question. Your scheduled to speak
at Sarah Wills to us in two days from now.
Anything you want to share with us, just a little
bit of what you're going to discuss.

Speaker 3 (41:49):
It's surely what we just talked about, but that this
is going to be Alaska as we think the next
fifty years really be Alaska centric because of the Pacific.
We are closer to Japan, for example, than any other state.
We are a thousand miles closer to Australia, even in California,
So we're Western Pacific sovereign. We're a Northern Pacific sovereign,

(42:13):
and we're Arctic saw So with the melting of the Arctic,
with the political alliances that were strengthening in Asia, and
with the world looking at gas is the underlying fuel
for data farms, electrification, Alaska is going to be at
the center. That's what we're going to talk about.

Speaker 2 (42:31):
So I would like to end this show with the
Permanent Find vivided. Can you talk to us about what
that is?

Speaker 3 (42:39):
Sure is it?

Speaker 2 (42:40):
Sure do seem like a wonderful thing for the residents
of Alaska. And it's driven by, of course, good old energy.

Speaker 3 (42:47):
Yeah. So when oil was discovered on the North Slope
and we knew it was going to be a huge,
enormous find over the last decades, some enlightened politicians and
others developed what we called the Alaska Permanent Fund and
they put it out to the vote of the people.
Saw in nineteen seventy six, the people voted to put
this fund in the constitution so that politicians couldn't touch

(43:07):
the court was their fund. Today, we have about eighty
billion dollars in the fund. It's arguably the second largest
software wealth fund in the world for capita, and it
has paid out a dividend tens of billions of dollars
over the years to Alaskas. About approximately today, approximately six
hundred and sixty thousand Alaskans get a dividend from this fund.

(43:28):
So it helps to pay for government and it helps
to pay for a dibdend, and again the idea behind
that was to turn a non renewable resource such as
oil into a renewable resource for the people of lasted
for forever quite frankly through investments and so far as
worked really.

Speaker 2 (43:45):
To so what my research reflects, it's not completely Verify
twenty twenty five, just to give our listeners an idea,
each resident received one than seven hundred and two dollars. Yeah,
and that's a lot of money.

Speaker 3 (43:59):
Yeah, and in many ways it could be larger too.
The legislature decided to put more of that money into government.
But nonetheless, the residents of Alaska and the economy of
Alaska duntry greatly from the from your fund and individend,
no doubt.

Speaker 2 (44:15):
Governor Dan Levy, thank you for joining me on the
Energy Mixed Radio Show.

Speaker 3 (44:18):
Absolutely thanks for having me.

Speaker 1 (44:20):
The Energy Mixed Radio Show is where we explore topics
that affect us all in the oil and gas industry.
Every week, our host will interview the movers and shakers
in this fast paced industry. You'll hear from industry experts,
elected officials, and many more on the Energy Mixed Radio Show.

Speaker 6 (44:36):
It's the Sky High for kids Tee Town Golf Fundraiser
presented by Vital Energy. Join us in Tulsa April sixteenth
and seventeenth for two exciting days of fund and fundraising.
On April sixteenth, join us for our VIP reception at
Osage Casino. Then swing into action on April seventeenth with
a golf tournament at the Club at forest Ridge. Your

(44:58):
participation supports sky High for Kids, a mission to end
childhood cancer. There's a way for everybody to get involved.
Registered today at sky High for Kids dot org.