Texas RR Commissioner, Jim Wright joins the Energy Mixx - 07-14-2024

Texas Railroad Commissioner Jim Wright is Kym's guest this week in the Energy Mixx.

Energy Mixx Radio. The Latest information on the Energy Industry with your host, Kym Bolado.

Episode Transcript

(00:00):
Welcome to the nationally syndicated Energy MixRadio Show produced by the Energy Network Media
Group. The Energy Mix Radio Showwill give you an inside look at the
energy industry and how it affects youby talking with industry leaders, experts,
and government officials on the Energy MixRadio Show. And Welcome to the Energy
Mix Radio Show. I'm your host, Kimbalato, and today I have a
great show lined up for you.I will be joined by the Texas Railroad

(00:23):
Commissioner Jim Wright. But before Ibring on Commissioner, right, I'd like
to tell you about an upcoming event. It is the Energy Network Media Group's
twenty twenty four coastal Bin Energy TransitionLuncheon, in which its keynote speaker will
be Nick Borello, who is theexecutive director for the Center for Hydrogen Safety.
Opening remarks will come from Susan Shefflett, who is the executive director for

(00:45):
Texas Hydrogen Alliance. Some of thespeakers will include Imbridge, Howard Energy,
Wood Group, Pinoak, and PatternEnergy. The date is set for August
fourteenth at the Beautiful or Te Centeron four h two Arbor Drive. Doors
will open at eleven AM. Andnow it's time for me to welcome my
guest, Commissioner Jim Wright. Jim, Welcome to the show now, Jim,

(01:10):
Before we get started with the show, allow me to introduce you to
our listeners. Commissioner Right, youare a lifelong South Texan and a fifth
generation Texas rancher. As such,you understand the important relationships the energy industry
has with the citizens of Texans andthe role that energy plays as the cornerstone

(01:30):
of the Texas economy. Since yourelection to the Railroad Commission in November twenty
twenty, you have emphasized the needfor fair and consistent regulatory environment designed to
promote and encourage innovation in Texas energy. You also believe that the long term
success of Texas economy and Texas energyindustry are closely linked, and that increasing

(01:55):
and strengthening access to global energy marketswill ensure that Texas remains an energy and
economic powerhouse for years to come.You've also said that the energy industry for
tomorrow will look vastly different than today, which is why you believe that the
Railroad Commission must be proactive when itcomes to issues such as water, carbon

(02:16):
management and when considering regulations for newenergy technologies such as build thermal power and
hydrogen production and storage. Jim,welcome back to the Energy Mix radio show.
Thank you so very much Kim forhaving me on again. It's very
exciting to be able to talk aboutthe issues that we're seeing in the oil
and gas industry today, especially whentalking with you in this wonderful show that

(02:38):
you always seem to put on foreverybody. You know, I'm really PLoud
to the fact of how you andyour organization has done everything they can to
get the right messages out to ourpeople here in the state of Texas,
and so they understand some of theissues that we face in day to day
and how important the all and gasindustry is for us in the stake Well,

(03:04):
thank you for saying that, becausein today's show, Commissioner Write,
I do want to try to touchon some things that really matter or should
matter to the citizens of Texas.One is the Biden administration's regulatory over grasp
if you will consistently when we talkabout the energy sector, and then of

(03:24):
course how important Texas energy is tothe State of Texas through the Rainy Date
Fund. I would like for usto talk about that. Also, some
of the new stuff that you guysdeal with carbon capture sequestration as well.
So we're going to get all intothat in show a little bit later on
the show, but I want tostart with giving you a compliment as well
too. You know, our showis in syndication. It's been on the

(03:46):
air for nine years now. Meand time is just it's flown by and
we are growing. So that tellsme that the interest of Texas energy,
even though it's hard to understand it, it's complicated, it's really important and
I think people are understanding that becausewhen they go to the grocery store and
they pay more or they have topay more at the pump, or they're

(04:10):
hearing about electric vehicles, climate change. There's a lot to think about and
it's very hard to understand and putit in a way that people can understand.
Hints to why our show is onthe air for all these years and
growing, But there is something thatthe Railroad Commission itself does to help also
inform the individuals listening to the show. I'd like to say the state of

(04:32):
Texas, but our show is carriedin Mexico, Louisiana, Oklahoma, It's
carried in Minneapolis, many many statescarry the show, and so it's not
just Texas, but the Texas RailroadCommission. You guys produce, you voluntarily
produce out of your time, aone minute segment that is pretty much like

(04:53):
a PSA, but in energy,and our stations that are partners with us
will them and these PSAs they're calledTexas Energy Minutes. You guys give us
a one minute snapshot of what islike the most crucial and important thing when
we talk about energy as a whole, mostly focusing on the state of Texas.

(05:13):
And I just want to let ourlisteners know you guys do this voluntarily
and while we produce them and putthem out with our station, our partners,
our stations, radio stations, they'rereally important because you guys are doing
this of your own free accord.You're also taking the time to put this
together. You on your team,your administrative team, and without you guys,

(05:33):
you know it would just be us. So thank you for the partnership
and helping us try to explain howimportant energy is. I need to again
tell you thank you, Kim,because you a lost platform to actually get
some messages out that we think areimportant for people to hear about what's going
on here in Texas as far asour natural resources are concerned. You know,
I'm very proud of the ability tobe able to furnish those and glad

(05:59):
to know that you're interested to getthose broadcasted out, not only from myself
but from my fellow commissioner. SoI wouldn't say that's something that we're volunteering
to do or look at it moreof you're doing us a favor to help
get our message out of what itis we're actually trying to accomplish here in
the state of Texas. Well,I guess we're partners in trying to promote
energy and what it means for us. So that being said, let's discuss

(06:26):
You guys have an up the stateof Texas. A railroad commission has an
upcoming conference scheduled for July thirtieth andthirty. First, can you tell us
a little bit about the mission ofthe conference, What can we expect from
the conference? Who should go tothe conference? You know, that conference
is something that we've been doing forquite some time now. It's two days

(06:46):
of pretty much every segment that weare actually over and we regulate whether it's
all a gas or coal or pipelinesor any of those issues. We have
modules that we set on that peoplecan attend. They're kind of training courses
and educational courses so that people understandhow the Railroad Commission interacts with those those

(07:10):
industries that we oversee. So Iencourage not only just the industries that are
related to that, but I encouragethe public too to try to attend if
they have an interest in knowing,you know, exactly how the regulation works
when it comes to regulating those industriesthat I just mentioned that it's really exciting
to be there. You know.We try to do our best to give

(07:30):
out as much information as we canover that two day times bying period,
and I've had a lot of peoplecome back from me, not just from
the industry, but just from generalpeople in the state that says, you
know, that conference is so informative. We've learned a lot by attending some
of those modules that you guys provide. So, you know, I'm proud
that we still have the ability todo that and we continue to do that,

(07:51):
and I think that's one of thehighest priorities for us, is that
we have the ability to do thatannually. So yeah, it's a Great
Conference. Well, you know,as I introduced you coming on the show,
it briefly touched on the Railroad Commissionitself. You all regulate everything in
anything that's happening in the Great Stateof Texas when I talk when we talk

(08:13):
about energy, but I'm going togive you a moment to maybe drill down
a little bit more on the importanceof it because you guys are elected to
the Commission and you're regulating all thingsenergy. But who we elect and having
an understanding of who we elect thatthey understand how important energy is to the

(08:37):
Great State of Texas. It's important. Right now, we have three commissioners.
There is Chairman Christi Kratick, thereis Commissioner Wayne Christian, and then
there is you, Jim Right.I've never seen a more seasoned and honestly
a more well put together group ofthree of you guys that are really regulating

(09:01):
in a very hard time considering andwe're going to get to this later on
the show. The Biden administration,all the regulations you're facing. We have
energy transition, we have new energysources coming on board and online. It's
exciting and yet it's confusing. Sobefore we jump into the Biden administration,

(09:22):
please just give us an overview ofhow much the Railroad Commission covers y'all's role
and how important it is to electseasoned elected officials that understand energy and what
it means here for the state ofTexas. I mean, that's moodily important
to make sure that we have peoplethat gets elected, especially here at a

(09:45):
road Commission, then has the experiencenot just from what all our industry does,
but has the experience politically to knowhow to navigate through things. And
I can tell you my fellow commissioner'sChairman Christi Krattick, and a commissioner Chris
da Wayne Christian, they they weeach play our own unique part. I
can tell you that christ Without Christy, I don't believe that our agency would

(10:09):
get the funding that we require.I don't think. I don't think that
we would get some of the thingsthat we ask people down at the legislature
for because you know, as Christie, I feel Christie's contribution is and successful
contribution for us here in the stateof Texas is her experience and her ability
to bridge between us and the legislatorsand make sure they're listening and giving us

(10:35):
what we need. To provide thethings to make things better for the State
of Texas people who live here inthe State of Texas. Commissioner Wayne Christian
brings a really good advocacy when itcomes to fighting for how important our natural
resources are, especially all in gas. And you know, those that follow

(10:56):
Wayne are Commissioner Christian around, we'llunderstand that. You know he is.
He is very very spot on,very very accurate when he talks about,
you know what impediments we're seeing thatit's not only coming from the current federal
administration, but from just issues thatwe have in the face every day.

(11:20):
And I think that he does awonderful job and getting that message out to
people. You know, I considermyself more of the workhorse. I stay
with my nose to the grindstone everyday, and I work hard and and
help our staff fight the issues thatwe fight every day and try to come
up with good solid answers. Andyou know, all three of us recognize
exactly what our mission is, whichis we have safety, we have the

(11:43):
environment, and we have to alsoprotect the economic vitality of the industries that
we regulate. If you think aboutthose three words, are those three statements,
those are those are hard to accomplish. It's a major job. But
I have been involved in the allgas industy for you all of my life.
But I've never seen a better team, I don't think today than the
three commissioners that we have serving.So it's really important to know, especially

(12:09):
as as elections come around, andwe have one coming up for Chairman Cratic
this November, how important it isto make sure that she gets re elected
so that she can continue to supplythe things that she does for our agency.
Jim, let's take a quick break. When we return, I want
to get back on this topic.You're listening to the Energy Mixed radio show.
We'll be right back. Hey,when you're in business, you have

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slash long Star Energy and we're backhere listening to the Energy Mix radio show.
My guest today is Commissioner Jim Rightof the Texas Railroad Commission Commissioner.
Right before the break, we weretalking about the importance of getting to know
the candidates that you were going toelect for the State of Texas, especially

(13:16):
when we're talking about for the RailroadCommission. It is the regulatory agency that
basically regulates everything in the energy spacefor the state of Texas. And I
want to talk a little bit aboutwhat types of things are you guys regulating,
and then if you can explain tous how much money does the state
of Texas and if you need somehelp in those numbers, I can help

(13:39):
you. But how much money doesthe State of Texas receive from royalties and
permitting of everything that's coming out ofthe Railroad Commission that benefits the great citizens
of Texas. So it's a greatquestion, Kim. Just so people understand
what the Railroad Commission actually does today. Despite its name, we are responsible

(14:01):
for overseeing all of our all andgas production, our interstate pipeline systems,
our generation of coal, and thatmining also our uranium mining that we have.
We're also responsible for propane gas distributionand for distribution to homes for all
the lines that you see that comeinto your home that are your heaters or
your stoves, that falls all underneathus tonight. I think that you know,

(14:28):
when you look at what what isthat whole industry really attribute to Texas
And as you mentioned it earlier,it's the money that they bring in the
form of taxation. And just lastyear, in all in gas severance Texas
alone, we brought over twenty sixbillion dollars to the state. I mean,

(14:48):
that's a huge increase from just tenyears ago on a record. Yeah,
it's set a record. And weyou know when you look back ten
years ago and we were really happywhen we broke a billion And that's saying
something, you know, it's sayingand it's I think it's making people notice
that, you know, we've comea long way with how we're discovering all

(15:09):
how we're producing it and how we'regetting it to markets that really need it,
not just domestically, but you know, around the world. So yeah,
it's it's it's it's it's grown huge. It's provided great benefits to our
states, besides being one of thenumber one employers of the state of Texas,
because I don't think people realize weemploy over half a million people directly
in the long gas industry, butif you look at the assilliary jobs that

(15:31):
that creates, I would say thatnumber is closer to three million people.
Because you know, every one ofthe people that work directly for the all
on gas industry make a good salary. They buy boats, they buy cars,
they buy houses, they shop,they they do all those things that
carry other people and support other peoplein jobs. So you know, I'm
very, very proud of what theon on gas industry has had to do

(15:54):
to adopt and and make sure thatwe keep technology in the forefront so that
we can keep producing and being oneof the major suppliers again not just domestically,
but for the world ruled itself well. And you know, a lot
of people that are listening to theshow, I'm sure heard of the Economic

(16:15):
Stabilization Fund better own as the RainyDay Fund, but maybe they don't quite
understand how it benefits them in theway of some of that money that's used.
The first thing is our legislators meetevery two years, right and when
they meet, they have to balancethe budget before they can even get onto
the state's business. And if it'sshort or if there is some numbers math

(16:36):
that's not quite working out just right, the legislators have been very fortunate.
We have been very fortunate to beable to look at that money that is
primarily coming from oil and gas hereand helping the State of Texas continue to
stay strong economically. Do you haveanything to say on that, because it's
really important these citizens understand we're talkingabout your roads and the money for things

(17:00):
that we need, and if wedon't have enough money, this is where
they go to. So it's kindof like our savings account, if you
will, and we don't want todo anything to harm our savings the Golden
Air d. Yeah, there's two. There's two ways of looking at that.
When you look at the up toover twenty six billion that we contributed

(17:21):
in taxation taxes last year, youknow that all of that money goes towards
schools and roads and making sure thatour police forces and our fire departments and
all those people have the funding theyneed to adequately through their jobs and to
make sure that we have people thatstay interested in in wanting to be in
that space. But you talk aboutthe Randy Day funds, that money's not

(17:44):
only helped helps to balance our budgetif we need it, but it's there
just for what it's intended to,exactly what it says, it's a Randy
Day Fund. You know. Ihad a perfect example of where that gets
gets used. Mostly is I thinkwe have a hurricane that's probably we hit
it somewhere here towards South Texas,and if it does hit, that's where
those funds help provide a lot ofassistance to people that are in need.

(18:08):
Again, it's pretty self explanatory.It is a rainy Day fund, and
I'm glad. I'm happy that wecan contribute the money that we contribute to
because you're right, most of thatmoney does derive from those severance taxes that
we receive off of all and gasproduction. And so when we start talking
about that we want to shut downproduction here in Texas, which by the
way, is the number one statethat's producing most of the energy that we're

(18:33):
also needing to sell or help forour allies and other people in other countries.
We start messing with not only oureconomic livelihood and our savings account,
but we're also missing the need tobe able to provide energy resources to the
world in the most cleanest and greenestways. Jim, when we get back

(18:56):
from break, I want to startnow getting into a little bit more deeper
to the week what you guys aredealing with, which is of course the
Biden administration. I want to talkabout the LNG band, some of the
things that Texas is facing due tosome of the regulations coming out of the
Biden administration, how you feel we'renavigating through that as a state, and
the Railroad's part as well. You'relistening to the Energy Mix radio show.

(19:19):
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(19:44):
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(21:21):
back. You're listening to the EnergyMix radio show. My guest today is
Commissioner Jim Wright of the Texas RailroadCommission Commissioner. Right before the break,
we were discussing the importance of Texasenergy on how probably Texas does it the
best of any state, and wehave the biggest amount of resources here,
but it doesn't go unnoticed when wetalk about the federal government and this administration,

(21:44):
the Biden administration. I don't thinkit's any secret that the Biden administration
has from day one in an executiveorder killing the Keystone Pipeline that they met
business when they were talking about tryingto out regulate or overregulate the oil and
gas industry. And you can dothat, I guess, in the name

(22:07):
of climate change, but you're alsogoing to cause a whole lot of pain
to the citizens that need to consumeenergy, which is all of us.
And so I want to ask youa question about the Biden administration and get
your take on all of this regulationthat's coming out through all the different agencies
they have at their disposal dispose.How is this affecting Texas energy policies and

(22:29):
how do you feel our elected officialsare grappling with a lot of the policies
coming out. You said it,you said it earlier, Kim. Everybody,
not just in the state of Texas, but across our nation, other
people that were supplying oil and gasto or are feeling of some of the

(22:52):
effects that the Biden administration has donein trying to eliminate fossil fuel usage.
You see it when you go tothe grocery store, and you see it
when you go to the pump,you know, and they do it.
They do it by a thousand cuts. You know. Some of the examples
today that we're actually faced with isthe Endangered Species Act that they're trying to
impose on us. You know,it's more specifically the sage breast lizard and

(23:18):
the cherry prairie chicken and some endangeredplant life that they're now saying that you
know, we we basically can't drill, uh if those things are existing,
which is which is huge, andit just I don't think that it's something
that's warranted. I don't think alot of investigation has gone in. I

(23:38):
think it's just another way of tryingto to put another nail in the coffin
for fossil fuel usage. Uh,you know EPA methane rule, the the
Biden lng VAN. I mean,they're they're all things that that are at
the end of the day, they'recaught hosting us and we're paying more for

(24:02):
just about everything because delivering your groceriesto the grocery store takes fuel, and
it takes diesel, and it takesfuel to create those products that you buy
at the grocery store. Everything thatyou have out touched has got some implication
of what those fuel costs are.And those fuel costs continue to rise,

(24:22):
as we've seen since he's been electedand since that administration has taken over,
because of those regulations that they continueto try to impose on oil and gas
production. And I will say thatwe in Texas, I don't think I
can even tell you all the lawsuitsthat we have gone out and sued the
administration over on trying to combat andfight a lot of that nonsense that I

(24:45):
refer to it as you do.I think that we need to make sure
that we're doing things environmentally conscious.I do, but I do think there's
a way that we can achieve thatand continue the economic success of what we're
doing. They seem to not understandthat at all from the Biden administration.

(25:06):
Yeah, well, you know,we're getting ready to go to break and
when we come back. I wantto get back on the Biden administration because
it makes it's very confusing when we'retalking about climate change and we're saying,
Okay, we need to make atransition and we need to look at alternative
energy resources. I'm all for thatbecause I love the environment. I think

(25:27):
we should all be environmentalists. Ithink we all are. But when you're
talking about shutting down production in theUnited States of America, in which there
are so many regulatory agencies that overseefrom the start, you know, upstream,
which is the Endangered specien Act,and Waters over America and LNG bands,
and you keep going, and thenwe go into midstream pipelines, and

(25:51):
there's downstream too, and yet wehave all these regulatory agencies. Commissioner right
and yet we're talking about outsourcing itto another part of the world that doesn't
have any regulatory oversight. And soif they're polluting the air and the climate,
should we not care? And soit just does it quite make sense

(26:11):
to the little kim over here asto why are we doing this? You're
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(27:17):
guaranteed. And we're back. You'relistening to the Energy Mix radio show.
My guest today is Commissioner Jim Wrightof the Texas Railroad Commission. Commissioner.
Right before the break, you werehelping us to understand how much the bid
administration, in the name of climatechange has really been putting a lot of

(27:38):
oversight on all of these agencies thathe has at his disposal to really hinder
the progress of energy here in thestate of Texas as well as in the
United States. And before the break, I did kind of discuss or thought
had a thought about, well,why are we outsourced it to other countries

(28:00):
that don't have any regulatory oversight theway we do. We are producing it
the greenest, we are lowering admissions, and we are doing it right,
and we are the model for theworld for them to learn how to explore
and produce oil and natural gas allover the world by following us as the

(28:21):
lead. So I want to getback on that. What are you seeing
I'm going to know you said,we're dealing with a lot, but how
are we really dealing with it inkeeping up with these agencies lowering our carbon
footprint, lowering admissions through our ownregulation through the Texas Railroad Commission. Sure,
that's a great, great question.Also, Kim, you know,

(28:42):
I spend a lot of time talkingto the Environmental Protection Agency in the Department
of the Interior on the issues thatthey're concerned about and how we're going to
be addressing those, and a lotof that. You know, it evolves
around green house gas emissions certainly,but you know, you kind of touched
on the point there. We arefocused. We we want to make sure

(29:07):
that we're doing the best we canfor our environment. We're spending a lot
of money to try to try tomeet those goals that are set for us.
But the point that you were makingearlier is I don't know that they
understand that our atmosphere is not justover the United States, it's over the
entire world. And we're doing ourpart. And you're right, we produce
the cleanest energy there is it istoday throughout the world. But you know,

(29:33):
countries like Russia and China and Indiaand Iran they have they have none
of those regulations that they have toreally abide by, and and you know,
it just doesn't make good sense tome to know why we're really doing
this without looking at how do weget those guys to also move in the
same direction that we're trying to movein to make a real accomplishment, uh

(29:57):
in trying to do something and withgreenhouse gas emissions and what that's causing effects
to our atmosphere on. You know, I think the industry is making really
great strides here domestically to accomplish allof those goals you talk about the carbon
capture. You'll see today that Texasthe Railroad Commission, has applied for PROMISEY

(30:22):
with the EPA for Class six injection. You know, if anybody has got
experience and how to inject stuff intothe ground, I would say that would
have to be Texas because we arethe leading producer in this nation, fourth
in the world, so we kindof know a little bit about injecting stuff
underground. And if you kind ofcompare of the applications that the EPA has

(30:45):
received for projects to capture carbon herein Texas, they have yet to issue
a permit. This program has beengoing on for a little over two years
of full speed ahead. They're holdingup those they're holding up our see,
so I'm not really sure what whatthey're thinking when it comes to Okay,
we've set the parameters that we wantyou guys to try to go out and

(31:08):
accomplish in bettering our environment. Butthey don't. They don't really seem to
be doing it theirselves. You know. I think when you saw the court
ruling here or I think it wasyesterday, where the courts basically said,
look, unless it's in statute,you know, you're not going to be
able to put some other interpretation otherthan what statue really says and means.

(31:33):
So I think what you've seen sincea Biden administration has taken over is a
lot of those agencies are are puttinga lot more into what statutes really saying,
and they're and they're doing they're doingit kind of without without anybody being
involved. You know, they're justarbitrarily making these decisions. And most of
those agencies are not elected positions,so they you know, they they really

(31:56):
don't listen to what their constituents aresaying. It it's it's it's very frustrating,
to say the least, to haveto see what's going on today.
Again, I could tell you fromthe agency standpoint, from the industry standpoint,
we always want to be good stewartswhen it comes to the environment.
We all, you know, nobody'sopposing energy sources. What we want is

(32:19):
we want economically feasible energy sources.We want reliable sources, whatever those sources
may be. But the way alot of those sources are set up today,
that's not what they equate to.You know, I asked somebody the
other day, I said, letme know and wind and solar builds that
iPhone that you're using that you're talkingon, because I haven't seen that happen

(32:43):
yet. Well, and to gofurther on that, you can't even have
your solar without oil and gas either, because they're byproducts. If it as
well, so it you know,I did a show not too long ago
on electric vehicles, and again I'mnot I'm not for all the above.
I don't have winners or losers.If it makes sense, we need more,

(33:04):
not less. The planet is growing, we need it all, but
we need to start at the beginning. And it kind of goes back to
the question of environmental climate change,how do we outsource it to other countries
that are the biggest polluters on theplanet, and we're talking about climate change,
and the same thing is if we'regoing to look to alternative energy sources,

(33:25):
that's fine, but we've got tostart by telling the American people the
truth that without those products. Theydon't exist without oil and gas in the
beginning, because they're byproducts of it. So we have to start at the
beginning of where this all starts andlook at it logically as opposed to scaring
the hell out of people and havingthem stop thinking logically. And so,

(33:50):
you know, the electric vehicles thatI mentioned a moment ago, they have
created an environment where the dealerships forwardand all of these dealerships that have double
down, triple down into the electricmarket, and nobody wants these vehicles.
The last show I did, theywere losing thirty thousand a car. Right
now it's gone even up from there. Are we looking at these dealerships going

(34:15):
into potentially bankruptcy because they're going intothis with the government trying to help,
and it's just not feasible and thematerials are not there, and where it's
not that time yet to do this, So I look at it in that
way of just practical, like weneed to start. We're not ready for
the worst. We're in a transition, but we're not ready to flip a

(34:36):
switch. We're not ready. Sowhen we get back and I want to,
I want you to break down carboncapture, a seaquestration, and then
the flaring issue and how you guysare dealing with that, because I know
you've been dealing with it pretty prettyhard and regulating it, so I want
to talk on that too. You'relistening to the Energy Mixed radio show,
We'll be right back at the portof Corpus Christy. We maintain in a

(35:00):
clear pathway for waterway commerce so thatour customers can deliver goods and energy products
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build and enhance critical maritime infrastructure andmanage traffic twenty four hours a day,
three hundred and sixty five days ayear. Thank you Coastal Band Region for

(35:22):
entrusting us with your most precious asset. Join us in Corpus Christy on Wednesday,
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Luncheon at the Orts Center on HarborDrive in Corpus Christi. This year's keynote
speaker will be Nick Burrillo, theexecutive director of the Center for Hydrogen Safety.

(35:43):
Topics to be covered include carbon capture, assessing and managing safety risk in
the hydrogen value chain, and theemerging hydrogen economy in the coastal band.
That's Wednesday, August fourteenth, startingat eleven am in Corpus Christi or the
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to Shale mag dot com slash eventSlash twenty twenty four DASH Energy Dash Transition

(36:07):
Dash Luncheon. And we're back.You're listening to the Energy Mix radio show.
My guest is Commissioner right with theTexas Railroad Commission, Jim. I
was talking a little bit about lookingat climate change electric vehicles, and it
seems as though we've just there's alot of culture skelter going on, not

(36:28):
a lot of common sense when we'retalking about climate change. So you said
you wanted to make a comment beforebreak, I'll give you back what was
your comment, sir. We weretalking about, you know, going back
to the beginning, and how dowe make all these things accomplishable while upholding
the economics that you know makes iton a level type scale. And I

(36:50):
think that the answer to that iswhat it always has been. You let
the free market work. And oneof the things you're seeing today in the
Biden administration is there a hell beento not let the free market work.
They want the government to intersect theirselvesin every phase of everything we do.
And I have never seen that besuccessful anywhere around the world. I have
seen that as we start experiencing andseeing what concerns from just a general public

(37:16):
are, it always reflects and howyou sell your products, so all those
concerns are addressed. And if youjust get out of the way and let
the free market work, they usuallydo it faster, quicker, and better
where the outcome is good for usthe consumer. So that's what I wanted
to say when you were saying thatearlier. And I know you wanted to

(37:37):
go into carbon and what that meansfor us, And if you'll ask me
again, I'll try to answer thatone. Sure. So the Texas Railroad
Commission, you guys have been veryvocal about flaring and the need to reduce
it. You also mentioned earlier thatyou applied for the underground injection control program,

(38:02):
and we've been doing carbon capture hand seaquestration here. So touch on
for our listeners a little bit ofnot everybody is familiar with what carbon capture
and seequestration is. So let's talkabout flaring, carbon capture and seequestration.
Okay, well we'll talk about flowingfirst. As you know, the Biden
administration now is put an LNG banon which which I think just got overturned

(38:27):
also yesterday where sixteen states had goneout and sued. So that's good news.
Oh the liberals heads are exploding rightnow. Yeah, the uh you
know. But flaring, flaring,it fluctuates, would take away. So
if you don't have a market totake it away, oil production really can't
stop. We haven't replaced oil,so we have to produce all to survive

(38:52):
comfortably the way we do today.So as you'll see, it usually rides
that roller coaster. But when youstop the to take it away, which
by takeaway, I mean you've gotto have a market, otherwise there's there's
not the economics that work to reallyget it to a market if there's not
a market to take it too.So I think I think the ruling that

(39:13):
the Court's made yesterday, you knowthat that was kind of a fear of
mind when they came out and putthe ban on LNG further Act LNG permitting
that we would see our flaring intensityincrease. But I can tell you,
as reported by the Energy Information Administrationjust here recently, you know, we're
at the highest level we've ever producedof natural gas in our lifetime, and

(39:36):
we're at the lowest level of admittanceor flaring that we have ever been in
our lifetime, which is now lessthan one half of a percent. So
you know, I kind of saidit earlier. If you watch the free
market work, they work, uh, and you know, there there are
some things that we've got to doto make sure that we're encouraging that.
And I've been I've been a bigproponent of, you know, of really

(39:59):
wanting to to get those things done. When I first came into office,
Barring one was my big concern becauseit was my big concern because I don't
like wasting our natural resources. Butbesides that, you know, I think
it's our job to continue to showjust the industry and the agency that we
have responsibility and we can take careof ourselves. We don't need big Brother

(40:22):
telling us what to do. AndI thought that when I looked at flaring
and the flaring exceptions, I feltlike, we really need to take a
harder line in this or we're goingto have further federal administration impediments put on
us. And you're seeing that todaywith the Methane Energy Reduction Plan that that

(40:44):
MERP they call it, that theywere imposing on us were now flaring.
As of twenty twenty four, You'regoing to have to basically start paying at
tax on everything that you're admitting intothe atmosphere. That's going to be a
huge impact for the on gas industry. It's another blow. It's going to
really be an impact on our smallerproducers, and that that fee goes up

(41:06):
annually. And one thing I say, and looking at watching government and politics
throughout the years, is once youthe government or politics to collect those taxes,
it's very hard for them to evergive them back. So no matter
what our administration looks like coming upin the future, I don't think we'll
ever see that tax return. SoI'm very concerned about that issue also,

(41:29):
and I think you wanted to talka little bit also on carbon capture.
You know, again, we've beencapturing carbon for a long time in Texas,
not not necessarily capturing, we actuallyhave been purchasing it from people that
have been capturing it, and ourproducers use that to put into formation to
help drive out more oil and gas. So that we make sure that we're

(41:50):
not leaving anything in that reserve thatwe can't go back and get later.
We want to make sure that we'renot wasting any of those products that might
be down in formation. So we'vebeen doing that for I don't know how
many years now. We have wehave with certainly a good level of expertise
on how to handle that, andwe have applied because we're mandated to now

(42:15):
to the EPA to allow them togrant us authority to permit wells that will
store that carbon or keep it sequestionedforever. The concerns there are from everyone's
is do we have formations that we'resatisfied will actually keep that carbon captured from

(42:36):
now on? So that's that's whatwe're doing with the e PA right now.
That's what carbon capture really means.The carbon capture is the sentives that
are out there for that now arewhat's called carbon credits. So as companies
start to capture carbon and how whateverthat volume ends up being, they can
sell those credits back into the marketand that's what helps pay for that.

(42:58):
It's I think it's a very goodcarried I think that's a that's a small
way of trying to get this done. It's just a lot of times that,
like I said earlier, when whenyou look at trying to get these
permits done and you've got a missionthat you want to accomplish, well you
have to you have to allow thatthing to be accomplished. And I don't
see that happening from a federal level. So that's why we're working really hard

(43:20):
to make sure we get our promisesso that we can get that accomplished.
Texas is always a leader, andthe Texas Railroad Commission especially the leader that
other countries come in and just seehow are you regulating. It makes sense
that you guys would apply and startregulating this as well. I don't know
where you fitted because you all arehuge and the way of what you have
to regulate to begin with, Butit makes me feel better knowing that it

(43:42):
is under your watch, y'all's watch, that this is going to be We
already do that today, Kim.I mean, like I said earlier,
you know, we permit class twowells where we allow carbon to go down
in the formation to push that allin gas back up to the circus.
That's sport of what we've been doingforever. It's not it's not really something.
How will this change if you getthe EPA's approval. How do you

(44:04):
see that more the magnitude carbon projectsthat we're seeing out in the industry to
go out and capture more carbon thanjust using it for what we call energy
recovery, you know, more alongthe lines of trying to further clean up
our atmosphere from greenhouse gas emissions.We're expecting a large volume of that,
so a lot of that stuff's goingto have to go into formations to where
you stored away or it's stored awayforever. So the difference there is we're

(44:29):
going to have to make sure thatwe're in formations that are safe and secure
so that the carbon has no wayof escaping that particular formation. And they're
regulated. Jim, it was wonderfulcatching up with you. I wish we
had another hour to talk to whichwe had three days. Give creation and
I'm out of time in berries kickingand thank you for joining us on the

(44:49):
Energy Mixed Radio Show and we lookforward to coming back and talking to us
soon. Thank you so much forhaving me, it was a pleasure.
The Energy Mixed Radio Show is wherewe explore topics that affect us all in
the oil and gas industry. Everyweek, our host will interview the movers
and shakers in this fast paced industry. You will hear from industry experts,
elected officials, and many more onthe Energy Mix Radio Show.