WEBVTT 00:00.000 --> 00:02.068 MASLANSKY + PARTNERS LEE CARTER AND PWC PARTNER MITCH ROSCHELLE. 00:02.103 --> 00:02.902 AND PWC PARTNER MITCH ROSCHELLE. THANKS TO ALL. 00:02.904 --> 00:04.303 THANKS TO ALL. GREAT TO SEE EVERYBODY THIS 00:04.305 --> 00:04.604 GREAT TO SEE EVERYBODY THIS MORNING. 00:04.639 --> 00:06.306 MORNING. PHIL, LET’S TALK ABOUT THE OIL 00:06.307 --> 00:07.707 PHIL, LET’S TALK ABOUT THE OIL DEAL, THE PRESIDENT SAID IT WAS 00:07.708 --> 00:09.709 DEAL, THE PRESIDENT SAID IT WAS GOING TO BE BETWEEN 10 AND 15%. 00:09.710 --> 00:11.811 GOING TO BE BETWEEN 10 AND 15%. IT LOOKS LIKE WHAT WE ARE SEEING 00:11.812 --> 00:14.447 IT LOOKS LIKE WHAT WE ARE SEEING NOW IS A LITTLE LOWER THAN 00:14.482 --> 00:15.615 NOW IS A LITTLE LOWER THAN EXPECTATIONS, HOW DOES THIS PLAY 00:15.650 --> 00:18.418 EXPECTATIONS, HOW DOES THIS PLAY OUT PHIL, AND WHY DON’T WE SEE A 00:18.419 --> 00:22.455 OUT PHIL, AND WHY DON’T WE SEE A BIGGER MOVE IN THE PRICE OF OIL? 00:22.490 --> 00:24.090 BIGGER MOVE IN THE PRICE OF OIL? PHIL: YEAH, I THINK THERE’S 00:24.092 --> 00:27.327 PHIL: YEAH, I THINK THERE’S LITTLE BIT OF DISAPPOINTMENT AND 00:27.328 --> 00:31.298 LITTLE BIT OF DISAPPOINTMENT AND THIS DEAL IS BETTER THAN NO DEAL 00:31.299 --> 00:32.032 THIS DEAL IS BETTER THAN NO DEAL AT ALL. 00:32.033 --> 00:34.201 AT ALL. AT LEAST GIVING SOME OF THE OIL 00:34.202 --> 00:36.136 AT LEAST GIVING SOME OF THE OIL PRODUCERS SOME HOPE THAT THERE’S 00:36.171 --> 00:37.471 PRODUCERS SOME HOPE THAT THERE’S SOME PRICE STABILITY IN THE 00:37.505 --> 00:38.905 SOME PRICE STABILITY IN THE FUTURE AND ONE OF THE BIG THINGS 00:38.906 --> 00:40.807 FUTURE AND ONE OF THE BIG THINGS WHEN YOU LOOK AT A DEAL LIKE 00:40.808 --> 00:42.542 WHEN YOU LOOK AT A DEAL LIKE THIS, WE HAVE A TENDENCY TO LOOK 00:42.576 --> 00:45.178 THIS, WE HAVE A TENDENCY TO LOOK AT THE FIRST COUPLE OF MONTH’S 00:45.213 --> 00:46.513 AT THE FIRST COUPLE OF MONTH’S CONTRACT LIKE THE JUNE CONTRACT. 00:46.514 --> 00:49.650 CONTRACT LIKE THE JUNE CONTRACT. IF YOU LOOK OUT A FEW MONTHS, 00:49.684 --> 00:51.685 IF YOU LOOK OUT A FEW MONTHS, THE REACTION TO THE DEAL IS A 00:51.719 --> 00:53.453 THE REACTION TO THE DEAL IS A LOT BETTER, SHOWS THAT PRICES 00:53.454 --> 00:55.021 LOT BETTER, SHOWS THAT PRICES WILL COME BACK BUT THAT’S 00:55.023 --> 00:56.323 WILL COME BACK BUT THAT’S ASSUMING THE DEMAND WILL COME 00:56.324 --> 00:57.357 ASSUMING THE DEMAND WILL COME BECOME AND THAT’S THE BIG 00:57.392 --> 00:59.125 BECOME AND THAT’S THE BIG QUESTION FOR THIS OIL MARKET 00:59.160 --> 01:00.360 QUESTION FOR THIS OIL MARKET GOING FORWARD. 01:00.395 --> 01:02.796 GOING FORWARD. MARIA: YEAH, I MEAN, AT THIS 01:02.831 --> 01:05.966 MARIA: YEAH, I MEAN, AT THIS POINT WHAT WOULD A 10% CUT DO? 01:05.967 --> 01:09.069 POINT WHAT WOULD A 10% CUT DO? IT’S TAKING HOW MUCH OIL OFF THE 01:09.070 --> 01:10.237 IT’S TAKING HOW MUCH OIL OFF THE MARKET IN AN ENVIRONMENT WHERE 01:10.238 --> 01:11.972 MARKET IN AN ENVIRONMENT WHERE YOU DON’T HAVE ANY DEMAND 01:11.973 --> 01:13.874 YOU DON’T HAVE ANY DEMAND BECAUSE OF THE CORONAVIRUS 01:13.908 --> 01:17.778 BECAUSE OF THE CORONAVIRUS SHUTDOWN, RIGHT? 01:17.779 --> 01:20.080 SHUTDOWN, RIGHT? >> PHIL: RIGHT, BY TAKING OIL 01:20.081 --> 01:22.649 >> PHIL: RIGHT, BY TAKING OIL OFF THE MARKET IT CAN EXPAND 01:22.684 --> 01:25.085 OFF THE MARKET IT CAN EXPAND WHERE OIL STORAGE WILL GET 01:25.086 --> 01:25.485 WHERE OIL STORAGE WILL GET FILLED UP. 01:25.487 --> 01:27.755 FILLED UP. RIGHT NOW AT THE PACE WHERE OIL 01:27.756 --> 01:29.190 RIGHT NOW AT THE PACE WHERE OIL PRODUCERS ARE PRODUCING, WE WILL 01:29.224 --> 01:31.392 PRODUCERS ARE PRODUCING, WE WILL RUN OUT OF PLACES WHERE TO PUT 01:31.393 --> 01:32.326 RUN OUT OF PLACES WHERE TO PUT THE OIL. 01:32.360 --> 01:35.262 THE OIL. STORAGE CAN BE OUT BY NEXT 01:35.263 --> 01:35.562 STORAGE CAN BE OUT BY NEXT MONTH. 01:35.564 --> 01:36.197 MONTH. BY PRODUCERS CUTTING BACK 01:36.198 --> 01:38.599 BY PRODUCERS CUTTING BACK PRODUCTION A LITTLE BIT, THAT 01:38.634 --> 01:41.035 PRODUCTION A LITTLE BIT, THAT SHOULD EXTEND THAT TIME PERIOD. 01:41.069 --> 01:42.203 SHOULD EXTEND THAT TIME PERIOD. GIVE THE GLOBAL ECONOMY A CHANCE 01:42.237 --> 01:44.272 GIVE THE GLOBAL ECONOMY A CHANCE TO COME BACK AND START BURNING 01:44.306 --> 01:46.574 TO COME BACK AND START BURNING BARRELS OF OIL SO IT’S REALLY A 01:46.575 --> 01:48.576 BARRELS OF OIL SO IT’S REALLY A SITUATION THAT’S GOING TO BUY 01:48.577 --> 01:50.578 SITUATION THAT’S GOING TO BUY PRODUCERS TIME AND GIVE US A 01:50.579 --> 01:52.480 PRODUCERS TIME AND GIVE US A LITTLE FLEXIBILITY AND HOPEFULLY 01:52.481 --> 01:54.215 LITTLE FLEXIBILITY AND HOPEFULLY SOME STABILITY IN PRICES SO 01:54.249 --> 01:57.919 SOME STABILITY IN PRICES SO PRODUCERS DON’T GO BANKRUPT 01:57.920 --> 01:59.720 PRODUCERS DON’T GO BANKRUPT OVERNIGHT. 01:59.722 --> 02:00.921 OVERNIGHT. MARIA: DAGEN. 02:00.923 --> 02:02.457 MARIA: DAGEN. DAGEN: PHIL, THE PRESIDENT IS 02:02.491 --> 02:03.824 DAGEN: PHIL, THE PRESIDENT IS GETTING A GREAT DEAL OF PRAISE 02:03.826 --> 02:05.793 GETTING A GREAT DEAL OF PRAISE FROM PEOPLE IN THE ENERGY 02:05.794 --> 02:08.629 FROM PEOPLE IN THE ENERGY INDUSTRY EVEN THE REGULATORY 02:08.630 --> 02:10.598 INDUSTRY EVEN THE REGULATORY BODY AND TEXAS RAILROAD 02:10.599 --> 02:11.799 BODY AND TEXAS RAILROAD COMMISSION JUST TO NAME ONE 02:11.800 --> 02:13.034 COMMISSION JUST TO NAME ONE BECAUSE PART OF THE DEAL WAS 02:13.068 --> 02:14.802 BECAUSE PART OF THE DEAL WAS GETTING MÉXICO TO THE TABLE 02:14.837 --> 02:18.039 GETTING MÉXICO TO THE TABLE ALTHOUGH MÉXICO ONLY AGREED TO 02:18.040 --> 02:18.639 ALTHOUGH MÉXICO ONLY AGREED TO CUT 100,000-BARRELS OF 02:18.674 --> 02:22.209 CUT 100,000-BARRELS OF PRODUCTION A DAY WHICH WAS 02:22.244 --> 02:23.745 PRODUCTION A DAY WHICH WAS 250,000-BARRELS LESS THAN SAUDI 02:23.779 --> 02:25.847 250,000-BARRELS LESS THAN SAUDI ARABIA HAD WANTED BUT THE U.S. 02:25.848 --> 02:27.716 ARABIA HAD WANTED BUT THE U.S. GOT MÉXICO ON BOARD WITH THIS 02:27.750 --> 02:30.351 GOT MÉXICO ON BOARD WITH THIS DEAL BECAUSE WE AGREED TO -- WE 02:30.353 --> 02:32.453 DEAL BECAUSE WE AGREED TO -- WE PLEDGED TO COMPENSATE FOR THE 02:32.487 --> 02:34.455 PLEDGED TO COMPENSATE FOR THE MEXICAN AMOUNT WITH 300-BARRELS 02:34.456 --> 02:36.924 MEXICAN AMOUNT WITH 300-BARRELS OF OUR OWN REDUCTIONS. 02:36.959 --> 02:38.426 OF OUR OWN REDUCTIONS. IT’S NOT CLEAR THAT IT’S IN 02:38.427 --> 02:40.261 IT’S NOT CLEAR THAT IT’S IN ADDITION TO U.S. CUTS OR HOW THE 02:40.262 --> 02:41.963 ADDITION TO U.S. CUTS OR HOW THE U.S. CUTS WOULD BE IMPLEMENTED, 02:41.997 --> 02:43.798 U.S. CUTS WOULD BE IMPLEMENTED, AGAIN, THIS IS DEAL-MAKING AND 02:43.832 --> 02:45.166 AGAIN, THIS IS DEAL-MAKING AND MAKING SURE THAT WE WERE STILL 02:45.200 --> 02:46.401 MAKING SURE THAT WE WERE STILL INVOLVED IN CONVERSATIONS WITH 02:46.435 --> 02:49.037 INVOLVED IN CONVERSATIONS WITH RUSSIA AND SAUDI ARABIA FOR 02:49.038 --> 02:49.471 RUSSIA AND SAUDI ARABIA FOR WEEKS. 02:49.472 --> 02:50.438 WEEKS. PHIL: ABSOLUTELY. 02:50.440 --> 02:51.339 PHIL: ABSOLUTELY. THIS DEAL WOULD HAVE NEVER 02:51.340 --> 02:53.274 THIS DEAL WOULD HAVE NEVER HAPPENED IF IT WEREN’T FOR 02:53.309 --> 02:53.741 HAPPENED IF IT WEREN’T FOR PRESIDENT TRUMP. 02:53.776 --> 02:55.276 PRESIDENT TRUMP. YOU KNOW, THERE WAS NO WAY TO 02:55.311 --> 02:57.245 YOU KNOW, THERE WAS NO WAY TO BRING SAUDI ARABIA AND RUSSIA 02:57.279 --> 02:58.179 BRING SAUDI ARABIA AND RUSSIA BACK TOGETHER. 02:58.213 --> 03:00.081 BACK TOGETHER. THEY WERE ABOUT AS ANGRY TO EACH 03:00.082 --> 03:02.450 THEY WERE ABOUT AS ANGRY TO EACH OTHER AS THEY POSSIBLY COULD BE 03:02.485 --> 03:03.985 OTHER AS THEY POSSIBLY COULD BE AND REALLY IS AGAINST PRESIDENT 03:03.987 --> 03:04.652 AND REALLY IS AGAINST PRESIDENT TRUMP’S NATURE. 03:04.654 --> 03:05.854 TRUMP’S NATURE. HE HATES OPEC. 03:05.855 --> 03:07.789 HE HATES OPEC. HE HATES COLLUSION WHEN IT COMES 03:07.790 --> 03:09.291 HE HATES COLLUSION WHEN IT COMES TO THE PRICE OF OIL. 03:09.325 --> 03:11.092 TO THE PRICE OF OIL. YOU KNOW, BUT ONCE YOU’VE GONE 03:11.094 --> 03:13.227 YOU KNOW, BUT ONCE YOU’VE GONE DOWN THE COLLUSION PATH AND 03:13.262 --> 03:14.996 DOWN THE COLLUSION PATH AND YOU’VE HAD AN OPEC BASICALLY 03:15.030 --> 03:17.499 YOU’VE HAD AN OPEC BASICALLY FLOODING THE MARKET WITH OIL, 03:17.500 --> 03:18.734 FLOODING THE MARKET WITH OIL, PRODUCT DUMPING TRYING TO PUT 03:18.768 --> 03:20.302 PRODUCT DUMPING TRYING TO PUT PEOPLE OUT OF BUSINESS, IT DOES 03:20.336 --> 03:22.571 PEOPLE OUT OF BUSINESS, IT DOES CHANGE THE GAME A LITTLE BIT, SO 03:22.605 --> 03:24.005 CHANGE THE GAME A LITTLE BIT, SO I THINK PRESIDENT TRUMP DID A 03:24.006 --> 03:27.709 I THINK PRESIDENT TRUMP DID A GREAT THING FOR THE U.S. ENERGY 03:27.743 --> 03:29.511 GREAT THING FOR THE U.S. ENERGY INDUSTRY AND GIVES OUR GUYS A 03:29.512 --> 03:32.581 INDUSTRY AND GIVES OUR GUYS A CHANCE TO SURVIVE WITH WITHOUT A 03:32.615 --> 03:36.118 CHANCE TO SURVIVE WITH WITHOUT A DEAL THE BANKRUPTCIES FOR THE 03:36.152 --> 03:38.053 DEAL THE BANKRUPTCIES FOR THE U.S. OIL INDUSTRIES COULD HAVE 03:38.087 --> 03:38.820 U.S. OIL INDUSTRIES COULD HAVE BEEN THROUGH THE ROOF.