Oil companies know there is a sweet spot for oil a barrel pricing

00:00 All right, let's go to the WRD talk line. We'll talk to Jed and Hickory. How you doing, Jed? 00:08 I'm good man, what's on your mind this afternoon? I want to tell you my feelings on the gas prices. All right. I'm 70 years old and I have never ever seen gas prices jump 35, 40 cents in one hour, one day. It was the biggest, yeah. When we had that ice storm that come through on the East Coast, our gas prices around my hometown of Hickory Grove and York. 00:37 with two dollars and thirty three shant they jumped up that two sixty nine and one day that before the war started i i'll buy it if they get carmen's play on that book book they go up and down when they walk through but all my life when gas prices rose they all the road to three four shanty five sand at the back now they jump in there thirty five forty seven uh 01:05 It was, I mean, it was a pretty um significant jump, Jed. You're right, I appreciate that, pal. But here's the thing. Oil companies know a couple of things. They know that there is a sweet spot. 01:23 Now, first of all, they know we have to have fuel. Everybody's got to have fuel. We do, industry, um everybody's got to have fuel. But they know if their prices are too high that people will start becoming more efficient with the way that they use that fuel. And they, and we do, we start using less. It's less, you know, we do more consolidated trips. We do ways to find, um 01:51 we find ways to save gas and that hurts them economically. And they also know if the price of oil is too low. 02:03 they're not going to be making money so therefore they can't do more oil exploration, they can't open new oil rigs, they can't pump more. So there's actually a sweet spot. And that sweet spot is right around between like sixty-seven and seventy dollars a barrel. Somewhere in there is that sweet spot where you're happy at the tank, I mean sorry, you're happy at the gas station and 02:30 They're making enough money to go and keep the oil rigs running and pay all the roughnecks and do the exploration. that's where the oil companies actually want to be. Do they want to make a profit? Absolutely, they do. But they don't want to cut their own throats in the process. Okay? So we'll see. mean, right now, $86. What did we just end up with? I think it was like $86.40 a gallon today, but we'll keep an eye on that for you. 03:00 Well, this is something that I found pretty amazing. I you to listen to Caroline Wren. She's a Republican strategist talking about Texas. If you're a low-propensity voter who's not going out and searching for your own information here, and you just kind of tune in right before elections and you go vote, maybe you wanted to vote in your county race and you just see the incumbent senator, that's why it's very hard to take out incumbents. admit it's no Republican, or actually either party, no incumbent senator is... 03:29 lost their primary since 2002. That is 25 years since an incumbent senator has lost a primary. That's why what Paxson has done with almost zero dollars in the most expensive state, a massive state like Texas, is so unbelievable and impressive and also why he is a more electable candidate in the general. He's absolutely a more electable candidate. So, you believe that? No? 03:57 Either party, no senator has been defeated. No incumbent senator has been defeated since 2002. Hopefully we're gonna see that change this year, not only in Texas, but in South Carolina as well. So in that runoff race right now, the new polls came out. They've got Ken Paxton at 49%, John Cornyn coming in at 41%, 11 % are not sure. Now here's the interesting thing. 04:25 If Trump endorses Paxton, 04:29 That goes up to Ken Paxton 58%, John Cornyn 32%. Now as interesting as that is, listen to this. If Trump endorses Cornyn, Ken Paxton still wins. He still wins by a point. Ken Paxton has 44%, John Cornyn has 43%, and then you get that 13 % of the not sure's out there. 05:01 But that's why they're s ...