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Energy XXI Chairman and CEO John Schiller on how the BP spill has impacted drilling in the Gulf, and how he would like to see safety regulation implem...
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And as you just reported oil prices posting big gains in the month of October and our next guest is very bullish on crude in the short term and in the long term.
His company operates some of the largest oil fields on the shelf of the Gulf of Mexico joining us now -- -- cents.
Is energy -- -- chairman and CEO John Schiller.
John thank you for joining us today it's really great to have you on we've heard great things about the company the stock prices on fire your earnings report on fire.
But there are not challenges you know -- industry are facing the variability of commodity prices what's happening on the geopolitical.
Landscape and then even regulatory issues here in this country so.
Raymond up for us what -- opportunity right now for you.
Well and energy we will always that we stay very focused on -- all assets as you mentioned we've got seven of the eleven.
Largest crude filled on the Gulf of Mexico in terms of -- of production.
-- -- -- traded above ninety dollars on the Brent.
Which he rolls pricing given a lot of cash flow from -- opportunities so we choose our opportunities.
We focus on all longer on our day in day out development drilling.
We -- deep ultra deep wells for gas along with a partner and background.
And for regulatory environment we just from what I've had -- learned to -- -- a lot further advance stop that.
He used to get done in two to four weeks can sometimes take two in three months now.
-- we've all learned to deal with.
John what what what you know that sad to say because after the the gulf oil incident.
A lot of shallow drillers.
Started to complain about this what -- -- the response from the administration why.
Are they taken such a heavy handed approach against such shallow drilling.
Shallow water drilling rather.
Yes shallow water they'd they'd.
They're really don't have a response they just can't attend the library then together they gave us a little bit of bright and that we got back to drill and our lawyer.
But still on any kind of -- -- expiration little do the same exact permanent process the guys aren't deep water.
And energy for a while we were lucky for a period of time and a lot of what we do his real home well -- and sidetrack.
And they weren't -- that subject to -- of the new stuff.
And then the last two months -- just the -- and I by the way.
When it's been one of our permits and so this thing I would do you have to do is the worst has discharge scenarios for now we'll do all these same steps in what we -- -- well -- That's previously been drilled.
Johnny -- though lawmakers out there.
Could hear you -- hearing your key is and your pleas for regulatory changes what would be that at the top of your list and how would it help your.
-- -- Why they have a problem list would be -- -- adjustment of risk reward -- your perfect example.
For the last 430 years we've had a -- that says every seven days we function tests are being appraised making sure they opened clubs.
Every two weeks we got the pressure tests along without function test.
All industry and administration together over years have been waving that seven day -- as -- as -- equipment was being shown to get help because we realized.
There were making incremental troops -- where we tend to get in trouble we -- pipe by the -- go back here and are where we take a majority of our -- And we're stress in the BOP's -- consulate function clothes and -- within only debate.
This administration everything's by the letter of the law they're making -- do things even though.
The risk reward is that there that it wanted to hear about a restaurant more so -- -- -- things I would point out let's.
Let's enforce regulations where it makes sense but where there's a true risks not where we're just doing that to satisfy some -- -- or some person who want to dot every I.
And -- seventy.
John -- what are the big news stories today is Jeanne Eisenberg from Nabors Industries has hundred million dollar packets.
Essentially from shifting jobs are shifting roles.
Do you have an opinion on this because a lot of people saying this is what's wrong with the corporate America specifically maybe even your industry how can someone be worth.
That much money.
Why you know what I think I watch a little bit this morning what I think people -- missile launched or those lows within the industry.
There is not a nabors drilling without juvenile humor he took the company -- a bankruptcy in the mid eighties he's grown up from zero shareholder equity actually negative.
A company that's worth almost six billion dollars so I look at that the guy I was there from the beginning news -- a lot of value for a lot of shareholders.
And this is a lifetime you know pay off if you will for what he's done for shareholder.
His board -- -- Ronald wrong but I do think that the people want are your the last -- three years.
As part of what I think how with a whole corporate -- in America we.
We wanna talk about long term comp at the same time we want results -- one or two years and we are one step back and look at what people of Don over 510 -- fifteen year.
I think you're absolutely right on that John Schiller the full story from you -- CEO and chairman of energy -- one thank you.
You.
