9-10-26 - 11am - Energy and Oil & Gas and Capitaloism

0:00Why you deal with listening to Armstrong and getting on demand? We're not boring. Lot of news is boring. And tedious. And depressing. And makes you angry. You don't want to live your life like that. Hey, I'm Jack Armstrong. He's Joe Getty. We're Armstrong and Getty. We try to bring you the truth and help you figure out this crazy modern world. About something about a comedic tone. What? We have a winner? Yes. Listen to Armstrong and Getty on demand on the iHeart Radio app. Apple podcasts or wherever you get your podcasts. I believe that whoever was in that room and did that was a murderer. A new podcast series, Fault Line Haditha, tells the story of a shocking crime and a cover-up at the highest levels of the United States Marine Corps. If you've got five players and you offer immunity to four, you better be right about the fifth. Because if you're not, then you've just given immunity to your color. Listen to Fault Line Haditha on the iHeart Radio app. Apple podcasts or wherever you get your podcasts.

1:00A three, one, three, three, one, oh, three, it doesn't work. Pull over. Turn your car off. Make sure you're far enough off the road so that the stupid drivers in Colorado won't rear end you. And three, three, one, zero, three. You are micr-micro. Better yet just hand the phone to the IT person in your family. True. True. Because it's clearly not you. A few years ago, before he ran the Department of Energy, we had a guy in the studio who wrote a chaos name Chris Wright. Remember that interview, Dragon? Sure do. A Denver guy ran an energy company. Now he's the Secretary of Energy in the United States. And I ask him a question if I recall that everybody asks, when do we run out? When does the oil run dry? And we got to figure out something else.

2:00Remember that conversation, Dragon? Yeah, and I can pull out those numbers, but I think that's where you're headed. No, go ahead, pull the numbers out. Sure, he had stated to us that here in Colorado alone. Wait a minute. In our little square state. In our little square state. Yeah, little square blue state. We had enough oil and gas to last. 500 years. I thought it was 600, but 500, 600 years. Either way you look quickly, who's quibbling? Anyway, you want to look at it. It's a plurality of hundreds of years. It's more than a century. It's more than a century. Yeah. Yeah. Here's what I wrote down. He looked at me like I had asked him when the ocean runs out of water. He said we are nowhere close. If the billions of barrels of oil left you. But that's not the part that stuck with me. He said that we cannot quit oil overnight.

3:01Not because maybe we don't want to, but we can do it because there is nothing on the shelf to replace it. The thing that takes over for oil, he kept emphasizing has not been invented yet. And until somebody invents it, the wind turbine, the solar panel, all the green energy things that that the congregants in the Church of the Climate Activists are insistent that we use instead, they can't do it. And I'll explain why in just a minute. Then more than a year later, I'm reading an article written by an engineer, a different guy, but the same idea. But he put a really hard edge on that point. He said the whole way that we talk about this is wrong. We keep asking, according to this engineer, if the world is addicted to oil, like it's somehow it's a bad habit, like it's fentanyl or something,

4:02like it's the cigarettes that we know we ought to quit and we just can't do it. And the engineer says that's not it at all. It was never an addiction. It was never even a lifestyle choice. It's something actually colder than that. He calls it and described it in the article I read, a functional necessity. Now, when you think about it's not because we want it, it's not because we prefer it, because it is a functional necessity. Just let those two words sink in a minute. Functional necessity. Because somewhere in the world this morning, there is a woman that is one, let's see, I'm not sure what time it is in some of these places. Let me look at my handy-dandy iPhone here and see what it says. No, I'm not trying to log into my account. I am trying to find my clock, world clock. Let's see.

5:02Well, that's not a good example. The prog is not a good example. So I don't have the crap old countries in my clock. Well, go figure you only have the ones that you'd want to visit. Or the ones I have visited is what I've got to be. The ones I want to go to or I haven't been to the morning to or whatever. I've got Bangkok, I've got Rome, I've got Taipei, I've got Moscow, I've got Dubai. But somewhere in the, somewhere is morning time somewhere in the world. And there's a woman who is cooking breakfast for her kids over an open fire. Using wooden charcoal, dried animal dung, cow patties as we call them in the, in the Oklahoma panhandlers, they're called cow patties. And she's doing it inside a room that probably doesn't have much of any moving air whatsoever. Kind of like, but we're sitting in right now. As I stare around in the room, I know. And we kind of think that the stainless. Probably in a room smaller than the rooms we're in.

6:02Oh, much smaller than the rooms we're in. That smoke gets into her lungs. He goes into the lungs of her baby on her hip all day every day. Constant. That is not a rare thing I just described. That is actually how a huge share of the human race still cooks breakfast, lunch or dinner. Or most likely just breakfast or just dinner. They're not having three meals a day. And it's killing them. In fact, I know don't just claim or don't disregard the number, but the World Health Organization. The who? 2.9 million people a year die early from breathing the smoke of dirty fuels burned indoors. Heart disease, stroke, pneumonia, and the little kids. 2.9 million funerals a year. And almost all of those are women and children. Because the children are standing next to the mothers all day long, while the fathers, if they're to be found, are out running around trying to find something to kill,

7:07something to eat. The hunters and gathers. But here's why I want you to hear. 2. The thing that saves that woman is not a solar panel. You cannot cook a meal with a solar panel. The thing that saves her is a tank of clean burning propane. LPG, a refined fuel. A fuel that starts as crude oil or natural gas. And it comes out the other end of refinery clean enough to burn in her kitchen and it's not going to poison her family. And in fact, that's what we cook with at the undisclosed location. Except I'm very fortunate. I live in a first world country. And even at the undisclosed location, I've got a gigantic propane tank, the size of, I don't know, a small pickup truck. But yet we're told to feel guilty about that fuel. What would that woman do? I think she might cause a difference between her kids growing up

8:12and her kids dying at a young age. A shocking crime and a cover-up at the highest levels of the United States Marine Corps. Someone opened the door and was the primary sugar. Is it possible you could do that and then suppress the number? A new podcast series, Vaultline Haditha, tells the story the United States government wants to keep buried. How can you not know? There were women and children in there. Can you tell us here that you don't know what happened that day? Based on thousands of pages of previously classified documents and over a hundred hours of secretly filmed video, the truth about one of the most infamous crimes in Marine Corps history can finally be told. If you've got five players and one of them is guilty of murder at least and you offer immunity to the other four, you better be right about the fifth because if you're not, then you've just given immunity to your color. Listen to Vaultline Haditha on the My Heart Radio app, Apple Podcasts or wherever you get your podcasts.

9:14Drowney? Dragon is the king. The king of bulk rap. Get into. Yeah. Yeah. Let me back up and it's functional necessity. That's the phrase of the day. But let's back up and think about how it actually works. Because I'm guessing that truly most people in there have never really thought about it. And it's kind of one of those things that once you see it, you can't unsee it. Nobody burns crude oil. Nobody did I know that. You could not run your truck on the black stuff that comes out of the ground. It's useless to you, useless to me, as it sits other than if it's still on the ground and it's being bumped out. That's that's worth something to me if I have to own the mineral rights. But otherwise it's just something in the ground. Same with raw coal, same with raw natural gas.

10:16These things sat underground for hundreds of millions of years and on their own, they don't do a single thing for either you or me. What makes them useful is a refinery. That's a multi-billion dollar plant that takes the buried sludge, cracks it apart. I emphasize the word crack because that's what it does. It cracks it apart and it turns it into things. Gasoline, diesel, jet fuel. And of course, then the things that you never even think about. The asphalt under your tires, the tar on your roof, the fertilizer on the farm, the plastic and the phone that's in your hand right now. The oil industry likes to say there are 6,000 products that come out of a barrel of oil. I can't verify that exact number. I don't think anybody really really could. It's a talking point. And I'll tell you what is true.

11:17Look around whatever room you're in right now. The paint, the carpet, the wire insulation, the eyeglasses on your face, the medicine in your cabinet at home, start pulling out everything that touched the refinery on its way to you and you will be standing in an empty room naked in the dark. Yeah, even that North Face jacket. Oh, that love. North Face jacket is the best one of all. We're not going to sell you your own branded win, win jackets, your win breakers because you're an oil and gas company. That's going to be the stupidest thing we've talked about in years, Dragon. Oh, that was so fun. That was hilarious. Oh, my North Face would not, I forget the name of the company. But was it a Colorado company? Yeah, I think it was Chris Wright's company. Was it his company? Pretty sure. I just remember the story was an oil and gas company wanted their trademark on the win breakers to give out to employees. Yeah. And North Face would not do it because you're an oil and gas company.

12:19Where do you think you get your ship? I have to make your own win breakers. Oh, my God. Anyway, the honest version of 6,000, I don't need the number because the room makes the case for me. Look around this room. Oh, my gosh. This room's nothing but oil and gas. And that's all it is. The electronics, everything. But here's the piece that I think ends the entire debate. I want to say about loud. A wind turbine, it makes electricity. A solar panel makes electricity. That's it. The entire job. They produce electrons. And don't get me wrong, electrons are wonderful. I'm not going to knock electrons at all. I need electrons to do what I'm doing right now. But an electron is not a molecule. And you can't build a physical thing out of an electron. Fertilizer doesn't come from sunshine. Get field doesn't come from the wind. The plastic in the heart valve.

13:21The asphalt over on the 25 or the 270, what's left of it? The insulin in a diabetics refrigerator. None of that comes from a solar panel. Those are physical products made from molecules. And the molecules come from oil and gas. Watch this. This ought to make you go. The wind turbine itself. The blades, fiberglass and resin. Petroleum. The housing, the coatings, the lubricants that keep it spinning. Petroleum. The solar panel, the back sheet, the frame seals, the polymer, holds it together. Petroleum. The thing that we are told will replace oil is built out of oil. It cannot make more of itself. It cannot make the fuel that carried it to the top of the ridge on a flatbed truck. Take away the refinery and you just don't lose gasoline.

14:22You lose the ability to build the very machines that were supposed to save you from gasoline. And that's not addiction. That's a supply chain. That's physics. So let me give you the scale of what we're actually talking about. Because it's easy to wave your hand at the economy in air quotes and not feel what I'm really talking about. So let me get back. Let's start with food. Because food is the one that actually ought to scare the crap out of you. A shocking crime and a cover-up at the highest levels of the United States Marine Corps. Someone opened the door and was the primary sugar. Is it possible you could do that and then suppress the number? A new podcast series, Vaultline Haditha, tells the story the United States government wants to keep buried. How can you not know?

15:22There were women and children in there. And you can tell us here that you don't know what happened that day? Based on thousands of pages of previously classified documents and over a hundred hours of secretly filmed video, the truth about one of the most infamous crimes in Marine Corps history can finally be told. If you've got five players and one of them is guilty of murder at least and you offer immunity to the other four, you better be right about the fifth because if you're not, then you've just given immunity to your color. Listen to Vaultline Haditha on the iHeartRadio app, Apple Podcasts, or wherever you get your podcasts. North Face is truly an extraordinary customer of the oil and gas industry. I'm Chris Wright, CEO of Liberty Energy. North Face recently came out against my industry, even refusing to let one of my competitors put their company logo on a North Face jacket. I went through North Face's website of wide-ranging products

16:24and I failed to find a single product that wasn't made out of oil and gas. The great majority of North Face's products, jackets, backpacks, outdoor pants, shirts, shoes, hats, etc., are dominantly made out of the oil and gas that we so proudly produce. Globally, 60% of all clothing fibers are made out of oil and gas. For North Face, it is likely 90% or more simply because they make premium, high-performance products. But our customer relationship goes much further than simply supplying North Face with copious raw material. Their vast manufacturing, distribution, and retailing networks are also large consumers of gasoline diesel, natural gas, propane, jet fuel, etc. But heck, I could say that about any manufacturing company. Perhaps they went the extra mile with those outdoor natural gas and propane fireplaces at headquarters

17:26and the private jet terminal. Again, many others check those boxes where North Face does go the extra mile, is their focus on the outdoor industry, an industry which only came into existence because of oil and gas. Without the enormous leap in human wealth and health, catalyzed by the arrival of oil and gas, there was no spare time or wealth necessary to pursue such luxury endeavors as outdoor sports. Escaping the modern world to the great outdoors typically begins with modern energy and transportation, whether by car, bus, train, or plane. Our outdoor choices keep expanding because we now have all these fabulous outdoor toys made of oil and gas, like skis, snowboards, wakeboards, bikes, kayaks, canoes, sailboats, hot air balloons, climbing gear, ropes, etc. We can spend days in the outdoors with our lightweight backpacks, tense sleeping bags,

18:29cooking with our camper backpacking stoves. Climbing the world's highest mountains wasn't even imagined before oil and gas, for all the reasons that I've already mentioned. Plus, there was no water high on mountains. Fortunately, we can carry canisters of white gas or other petroleum fuels to melt snow off glaciers for drinking water and cooking, even at 26,000 feet elevation. I could go on and on about the beauty of wilderness, the joy of being in the backcountry, the character building experience is made possible, the team adventures, and serenity of the great outdoors, all only possible thanks to oil and gas. So, North Face is not only an extraordinary customer of the oil and gas industry, they are also a partner with the oil and gas industry in bringing the great outdoors within reach of so many. So, thank you, North Face, and you're welcome. Onward and upward. That is marvelous, absolutely marvelous. And to think

19:36you're currently the Secretary of Energy, not a better pick you could have made than Chris Wright. Now, back to the point he's making about the great outdoors, and only because of oil and gas, do we have the capabilities to recreate in the outdoors? Go back to my woman cooking the breakfast for the kids in that smoke grimy that she lives in, and the kids are going to die a slow premature death. Food. I want to start with food because roughly half the people alive on earth today are alive because of synthetic fertilizer. Half. Now, that's not an oil industry number. That's the researchers who study food. We pulled nitrogen out of the air, we turned it into fertilizer, and that fuel that runs that process is natural gas. We take that away, this planet cannot grow enough food for 8 billion people. We grow enough food for maybe four

20:43you can do the math and what happens to the other four billion. Yes, now think about transportation. Nearly every truck that brought food to your grocery store runs on diesel. The ships that carry the world's goods across the ocean, tens of thousands of them, refined fuel. The industry says those ships carry 90% of all world trade. The more careful numbers, closer to 80, either way, 80% 90% it's almost all of it. And not one of those ships runs on a stupid battery. The planes overhead, they run on jet fuel. There is no electric 747 or 787 flying your daughter home for Christmas and there's not going to be one for a very long time. If ever. Medicine. Hospitals. The gloves, the tubing, the IV bags, the syringes, the sterile packaging, half the pharmaceuticals themselves. All of it, downstream of a barrel of oil. Here's the number that ties a bow on all of

21:52this. In 1900 the average human being lived about 32. 32. How many of you would be dead a long time ago? Raised hand. Oh even even those who backed their road, raised his hand. Yes. I am older than 32. Today is past 75. We have more than doubled the human lifespan in just a little over a century. And in that same window, we went from one billion people on this planet to eight billion. If he grew up as I did with oh my gosh, the population explosion were all going to die. That didn't happen because people got richer. It happened because we learned to turn a buried rock into food, medicine, fuel, and shelter. Eight billion of us are standing on that discovery right now. Whether you know it or believe it or not, that's what you're standing on right now.

22:53Now the other side, all the town gets in the church of the climate activists, the transition crowd, the international energy agency. They've got arguments. Let me tell you what the arguments are. They'll tell you oil demand is going to peak this decade and this start falling. And you know what? The IEA does say that in this main forecast. They'll tell you renewables are the fastest growing source of power on the planet. Let's take that as true. They'll tell you every year we keep burning this stuff. We put more carbon in the air and there's a bill coming for that. I'm not going to stand here and pretend that there's no bill at all. That's the entirety of the case. And parts of it are simply correct. But watch what happens when you hold that up against everything that I just showed you and everything that's Chris Wright just described about North Face. Peking is not replacing. Let me say it again. Peking is not replacing.

24:03Oil demand could flatten out tomorrow. And we would still need every refiner that we've got because demand flattening doesn't make fertilizer out of sunshine. It doesn't put propane in that woman's kitchen. It doesn't propane in my tank at the end of the close location. Even the IEA, the same people forecasting the peak. Even they admit that in their deepest green scenarios, the world is still using oil for plastics and chemicals and heavy industry and will be for decades and decades why? Because there's nothing else that does that job. Nothing. And here's the part that gets left out of every clean energy press release. If we keep trying to force the exit before a replacement exists, you don't hurt the people riding the stupid reports. They're fine. Oh, they've got grocery stores. We've got hospitals. We've got heat. The people that we're going to

25:06hurt. They're going to be the woman at that cooking fire. They're going to be the family that can afford food when the fertilizer runs short. The poorest people on this planet, they will pay first and they will pay in their lives. In fact, I would argue that there are some people who wants that to happen. They believe that's the best thing they could ever happen is that the poor woman just trying to feed her kids while her husband's out trying to find the next wild boar to kill so she can cook it in that hut. They want them to die. They want them gone because that's more for them. That's how socialism works. That's how the elites work and think. Yeah, just do rid of them. So you can give the other side the peak oil argument. I'll give them the carbon bill. What I won't give them is the fantasy that somehow we can just walk away from the refinery before we've built anything

26:10that's going to take its place because we have not built it yet. I know that right now, I, you know, I feel a new mech skills for I came home. Regular and related for the Jeep $4.9 a gallon. I know cheaper than here so I was happy to use pay the $4.9 a gallon. But I want you to consider something. Why do you think I know the Iranian War? I know whatever you can put as many causes as you want to for the price of a barrel of oil today. And that price I've breached over the Labor Day weekend. Peaked over a dollar over a dollar of barrel over a hundred dollars of barrel. I don't know what it is that they haven't looked it up today. I don't dare what it is today because the point I want to make is something other than the price of the barrel of oil. It's the price of the end product. Why do you think it's as high as it is right now? Yes, you can name all those factors

27:12that we all know. The war in Iran, the problem in the state of her moves, but the one problem that nobody wants to admit is refinery capacity. It's operating in this country at 100% seven days a week. You can't keep doing that, but ask yourself why? Because we have regulated most of the refineries out of business. We've made it so expensive, so such a heavy regulatory burden that many only gas companies side, it's just easier and cheaper to shut it down. And now we're paying the price for that because not only are we paying for the price of it and what we pay at the pump, when you go to Sam's or King Super's or anywhere else, but think about the US military. Think about how much of this concentrated on the West Coast. And there we have shut down 50% or more

28:14other refineries. And so now we've got to ship that from Houston around the Patagonia or through the Panama Canal to get to the West Coast or we have to ship it by rail or we've got to ship it by pipeline or whatever else. No, we're stupid. We're absolutely stupid. refineries. Oh yeah, you can go out and come or sit and you can look at it and you say, oh, it's ugly. Oh look, it's putting out, you know, whatever it's putting out. It's hurting the people around that refinery. Those people would be much worse off without the refineries. No more fertilizer. Cost of food, food, skyrocketing. Their ability even to use public transportation becomes enormously expensive because we're destroying the very machinery that produces the fuel that gives us everything that we have. The article they got me going on this, the one by

29:18the engineer. It's got some numbers in it that are softer than he lets on. That 6,000 projects figure that I told you about. He says there are 250 refining techniques. I can't verify that one either. And his bio says that his book was really surprised and nominated. Well, may or may or may not be the pull us for people will tell you flat out this sending in your books. It's not the same as being nominated. Anybody can send in a book. Elsewhere she's sending in my book. Then I can say I was pretty nominated. I'm telling you all this on purpose. Because the case for oil and gas is strong enough that it doesn't need any puffery at all. The 2.9 million dead is real. The half the planet fed by fertilizer is real. The doubles lifespan is real. When you got numbers that strong, you don't need to guild them. And in a minute we guild the numbers we hand the other side of reason to throw the whole thing out. Don't ever give them

30:20that reason. Check your own math before somebody checks it for you. So back to the word. Addiction or lifestyle choice. Now, addiction means it's a sickness and we have to be trying to quit. Lifestyle means it's a whim and we could drop it if we liked it. I'm telling you, neither one of those is true. We did not get addicted to oil and we did not choose it off a menu. We built the entire modern world on top of oil. One refinery to time. And what happened when we did that 8 billion people moved in. So you don't quit the foundation of a house while you're still living in it. You built the new foundation first. Then you move. That brings me right back to Chris Wright. So you my studio those years ago telling me the honest thing that the loud people will

31:23not say. We are not running out. And the answer isn't to smash the machine that's keeping 8 billion people alive today. The answer is let technology advance. Let the kids in the garage. Let the tankers. Let somebody let the big companies. I don't care who it is, but somebody is going to invent the thing. Whatever the thing is that ultimately replaces oil and gas. The answer is to go invent the the thing that finally replaces it. Chris Wright thinks the next great breakthrough in energy is probably going to come from inside the oil and gas world itself from the people who actually know how energy works. And you know what? I think you actually might be right. But until that day comes, this is the one product that the world cannot quit. Not because we're weak, but because we're alive

32:27and it's what's keeping us that way. Every time you hear these people scream and holler about, oh, we got to quit oil and gas. We got to quit doing what's going to replace it. Until we know what's going to replace it, we're kidding ourselves. We cannot do that today. It cannot be done today. We have to wait until, until we finally get to the point where we have something to actually replace it with. We are not there yet. Switch here. Victor Davis Hanson was talking over the weekend. And I would sum it up this way. DSA, the Democrat Socialists of America, their hatred of capitalism is all a show. Just like all the congregants in the Church of the Climate Activists,

33:27we say that oh my gosh, we're killing ourselves with oil and gas. No, we're actually doing just the opposite. We're expanding our lifespans. We're living longer and we're living better because of oil and gas. The Democrats, Socialists of America understand that, well, I think they're just complete total abject frauds, especially when they talk about their supposed hatred of capitalism and then blame capitalism for all the world's troubles. You just substitute oil and gas for capitalism. Hanson exposes that capitalism is what is enabled each and every one of those hypocrites the ability to live their lives a conspicuous consumption and luxury, which is what they did and what they do. Does Luigi Mangio wonder all around the world really without getting a real job? Was it his family? Were they hypercapitalists? Turns out yes, they were. How does Rokana, for example,

34:28give lectures and live in this house on a congressman's salary? Oh, he was his father-in-law's capitalism that enabled him to do that. How is it? You know, if I ever got rid of my M-sport, might be MWM Sport, there might be one car, maybe two, a Lamborghini, but more like the old My Level of Porsche. Hanson Piker, the one out there telling us that we deserve what we're going to memorialize tomorrow, 9-11. They'll be deserved it. How is it Hassan Piker can drive a $200,000 Porsche? Was it because he was a NEPO baby? Yes, he was. How is it that Zofram, the mayor, Mamdami of New York? How can he lecture everybody and have a beautiful came from Uganda, have a beautiful, comfortable, materialistic existence in the United States? If it's not for capitalism. You see, for all of these people, it's just one big show.

35:34They go out, they trash people, they destroy lives, and then they pose that they're anti-capitalists. But when you start to examine them, you find out it has been true through all of history. Oh, they're privileged to begin with. So it's easy for them. In fact, their privilege makes it possible for them to go out and to vilify the very system of economics that made it possible for them to be able to go out and vilify that system of capitalism. It's all a big show, a big fake show. Mamdami, Elon Omar, Hassan Piker, Rokhana, they're all wealthy, first and second generation immigrants. Alexander Acasi Cortez, she says she was poor. She's living in what upper middle class Connecticut, New York, suburb, when she came, when she grew up for the most part of her entire life.

36:37I think the people are getting really tired of it. I always say that phrase and people say, oh, they're not tired. I think people are getting tired of it. I think people are really, really tired. And I think the Victor Hanson Davis Hanson is absolutely correct. All of these anti-capitalists, you dig deep enough into them. They're just like North Face. Yeah, they're totally dependent upon capitalism for the lives they're leading and for the lives that you and I lead and say that we're awful for doing so to which I say, like me. Why do you listen to Armstrong and Getty on demand? We're not boring. Lot of news is boring. And tedious and depressing and makes you angry. You don't want to live your life like that. Hey, I'm Jack Armstrong. He's Joe Getty. We're Armstrong and Getty. We try to bring you the truth and help you figure out this crazy modern world. About something about a comedic tone.

37:37We have a winner? Yes. Listen Armstrong, you getty on demand on the iHeart Radio app. Apple podcasts or wherever you get your podcasts. I believe that whoever was in that room and did that was a murder. A new podcast series, fault line Haditha, tells the story of a shocking crime and a cover-up at the highest levels of the United States Marine Corps. If you've got five players and you offer immunity to four, you better be right about the fifth because if you're not, then you've just given immunity to your color. Listen to fault line Haditha on the iHeart Radio app. Apple podcasts or wherever you get your podcasts.