 Thank you, Roland. Good afternoon, everyone. It's a true honor and a privilege to be at Stanford. I have to say I'm incredibly envious, and even though I went to school in the East, I think this is the place to be. You guys definitely figured it out. No Ithaca winters, no six months of snowing. What a beautiful campus, and how lucky you all are in privilege to be a part of this. So I'm delighted to be here, and thank you for having me. I do live in Houston, Texas, since 1993, and there's been a lot happening in Houston. So what Roland asked me to share with you is, what are we seeing relative to how companies are surviving the commodity price downturn, and what would I say that the successful companies are doing to survive? So that's what we're going to talk about today, and we'll definitely have time for questions. Now a lot of times when I show this slide, I wonder if people will get it, but I see a lot of gray hair in the audience, just like mine, so you'll remember the old help, I've fallen, and I can't get up commercial from the LifeTouch commercials, and that's really how things feel if you sit in Houston, Texas. In 2014, in May of 2014, we hosted a global energy conference, and your very own Dr. Condoleezza Rice was our guest speaker at the privilege of interviewing her, and at the time, oil was above $100 per barrel, and our audience, we all predicted that it would stay, like 90-plus percent of us predicted that it would stay above $100 per barrel through the end of 2014. So how wrong were we? So I think the thing that's important to understand is, 2014, the industry was like, okay, we can still get through this, and there wasn't a lot of big changes. 2015, it was starting to feel like, uh-oh, there may be more to this downturn than we thought. By 2016, it's the lower for longer, and it's here to stay. So how do we cope? And that's when companies started making some major changes. And you can see what the results were in terms of total shareholder return by segment. What I find is important to note when we talk about these commodity price downturns is it doesn't have a universal impact, right? So some folks are beneficiaries in the downturn and some suffer. It's power and utilities at the top, refiners, petrochemical manufacturers, and then it gets to the midstream, the MLPs, extreme and oil-filled services. The oil-filled services segment of the industry has suffered the most, and I think have gone through the most fundamental changes, and then shortly behind them would be the independent producers, and now the integrated oil companies are responding as well. As I indicated, it's not a universal downturn. So what this means to the different segments and understanding what those differences are is an important part of the conversation. Upstream EMP, particularly the independence, they have gotten incredibly efficient, particularly at onshore production. So production decline curves have gone, have improved, cost efficiencies have improved, the length, the duration of the wells have improved, enhanced oil recovery techniques has made previously what would have thought of as dried up wells producing hydrocarbons again, so incredible transformation that they've undergone. Midstream has suffered a fair bit and a, quote, rich kinder of kinder Morgan, one of the biggest MLP players who radically changed their corporate structures you may have followed during the downturn, but he quoted the guy from Network, you know, I'm angry and I'm just not going to take it anymore because they were really tired of being treated as though they were a commodity that they had exposure to the commodity price environment. When in essence they were rate payers, toll providers, stable cash flows, stable revenues, production volume declining a little bit, but they didn't have the commodity price risk that was baked into some of their peers. Nevertheless, the market didn't forgive them and we've seen quite a lot of consolidation and you're seeing Canadian companies taking large stakes in U.S. midstream companies now. The refiners, we got the right to export crude oil and we suddenly lost our Brent WTI Advantage crude slate. So what was, in essence, the golden age of refining and most of my refining friends will say, the golden age of refining don't blink because that's as long as it lasts. They had tremendous margins because of the Advantage crudes and now core business lacks growth and we're seeing some demand trends and the gasoline demand in the United States might go down given the rise of electric vehicles and some of the demographics. Petrochemicals on the other hand, surge, low cost feedstock, low cost energy costs, revitalize U.S. basic chemicals. The U.S. market will be a strong exporter for petrochemicals and you're seeing still green field construction projects in places like Louisiana and Pennsylvania that are still on track. Power companies have been the beneficiaries of natural gas supply. The U.S. has been able to meet a lot of the climate change objectives purely from the economics of switching from coal-fired generation to gas-fired generation and there is a view that long-term natural gas prices will stay relatively low and that makes it a safe bet. Oil field services, they had to get lean and mean to avoid bankruptcy and I think they're going to come out of this quite successfully and quite well. They needed a lot of cleanup in that business, frankly. Most of them had done major acquisitions and had not effectively integrated the companies. So tremendous opportunity but it's important to remember that the commodity price cycle change is not going to be universally felt. But something else happened in the meantime, right? How do I move this forward? We have a new administration and that's an official picture of the first cat that will be occupying the White House and I won't say that it's a whole lot about the administration except for there are some good things that are happening that make the industry a whole lot more excited about what the future might hold for them. So regulation, there is a strong belief that regulations will be rolled back. The industry felt that it was incredibly overburdened with very difficult to comply with, complex, arbitrarily developed piecemeal regulation that they were faced with. And the Obama administration went on a sprint to produce a lot of regulations right before the end and the industry was feeling very burdened and now the Trump administration likely will roll back some of those regulations. Here's an interesting thing, my observation, I get the chance to fly all over the world and meet with lots of executives from all parts of the industry and the thing I find the most fascinating anecdotally is that everyone in the industry seems to think that they are going to be a winner under this administration. The wind and solar guys and gals, the coal folks, the gas, the upstream, the downstream, everyone believes that they're going to win and where I come from, you always know that that can't be the case. Logic tells you it can't be the case but I do find the level of optimism quite fascinating. The tax reform conversation will be significant, in particular the border adjustment tax. Let's think about this. You guys are smart economists in the room. You guys better understand supply and demand than I do. We're going to tax imports but not tax exports. So if you are an upstream producer, if you're an antidarko, if you're a pioneer, if you're an EOG, suddenly if you take that crude oil out of the ground and you sell it overseas, you basically get a 20% uplift if you don't have to pay tax on that exported crude. If you're a refiner, if you're a valero, you're incentivized to buy made in America crude oil molecules that you'll want to get from an antidarko or an EOG. But antidarko and EOG are going to want to sell their crude outside of the US, depending on the Brent WTI and obviously factory and transportation costs and things of that nature. But if you're a valero and you have to buy Saudi crude or you have to buy Canadian crude, which Canada is still our number one export provider or import provider for crude oil to the US, you're suddenly paying 20% more on that cost of goods that you traditionally did not have to pay on. And then if you then export that you're gasoline, you wouldn't have to pay the 20%. So are you really incentivized to produce and sell gasoline in Texas? Or would you rather start shipping your product to Mexico? So I think as an industry and as an academic group, we really have to think hard about what these changes might do to the incentives that will exist. Infrastructure, I think people have said quite a lot about it. It might be delayed, but there's still a lot of positives in the industry that they'll get. Pipeline's approved. And you're seeing it with a stroke of a pen, Keystone is approved, haha, not really that easy. The code access pipeline and things of that nature. But there is a belief that infrastructure will be invested in. And then you just look at the friendly appointees. I've had a lot with ExxonMobil. Had the privilege of meeting Rex Tillerson a number of times. I find him to be an incredibly impressive individual. But who would have thought you would have ever been Secretary of State? I mean, it's just, it's fascinating times. So let's just look at where we are now. Rig counts are going up. That's all very exciting news. You can see it's predominantly oil rigs versus gas rigs. Here's some of the statistics that we like to keep an eye on. WTI has stayed above 40 since June of 2016 and it stayed below 54 since June of 2016. Although it's probably up above 54 now, I think, 55. The industry feels comfortable in a 50 to 55 environment. Suddenly in Houston, people are spending money. They're buying, they're hiring again. Things are picking up. The economy feels a whole lot more productive. Provided people feel like 50 to 55 is where things will stay. And then this is another very useful statistic that production, U.S. oil production continues to go up despite this kind of rig count decline. That shows right there the efficiency that's built into the shale oil producers and how well the industry has responded with cost reductions and technical efficiencies to extract more oil with fewer rigs and fewer crews. Let's talk about the human impact because, again, I sit in Houston and this is where a lot of the information comes from. There is a big human impact. We've heard hundreds of thousands of people have been laid off. There's still underemployment. Will those jobs come back? Particularly in an environment where you all sit. If you're a young petroleum engineer and you were working for two years and you're not laid off, does that feel like the industry where you want to stay? So I do think the industry is struggling with the human impact. And we haven't necessarily learned because four times in the past 40 years crude prices dropped by more than 33%. And you can see what we did in the 1980s where hundreds of thousands of positions were eliminated. And when the price of oil rebounded, there was a competition for talent. So we tend to be boom and bust in terms of how we handle our talent. And we're a little naive in terms of how we think about when we'll need those resources. So here's how Pollyanna we were again in 2015, because remember I said we were a little slow to recognize that crude oil was not going to come back to $100 per barrel anytime soon. And the same survey we ran in May of 2015, 79% said they could see headcounts staying the same or increasing. And finally a year later it flipped where they said, yeah, okay, we see headcount reducing. And at the same time, we're still not making the investments that we need to make in terms of engaging our employees. So what this one says is we don't see management helping us work cross-generationally and we will have the most diverse generational workforce than we've ever had. We're not seeing engagement with leadership. They're not investing in training and some of the softer skills engagement. As well though, so here's on the plus side. The industry is fundamentally changing how they do business. That's the consultants we like to use fancy words, like operating model and business model. And so everyone is radically changing how they go to work, how they manage their processes, how they organize their teams and employees. And this same survey showed 94% say that their operating model will be disrupted in the next three to five years. And 67% had already launched a business transformation initiative. From my business, that's always a good thing when they're changing. So that's just to set the stage with some of the statistics and some of what we're seeing. The headwinds that are facing the companies. So not only do you have your base price for your core product cut in half and dealing with that kind of top line reduction, but then you've got challenges with systemic issues around talent management and the fact that your business model has to be fundamentally reshaped because you have new entrants and you have demographic changes and we have all kinds of factors that are coming at us. I think this is one of the reasons why the industry is so optimistic about what they believe the administration will do for their industry is because they feel this sense of foreboding from all these disruptive headwinds. Whether or not that optimism is warranted, I don't know. Okay, so I'm a consultant. I always have to boil things down to five things that you should remember. So successful CEOs, what are those that are going to survive? And to be frank, we haven't seen the level of bankruptcies that we would have expected. Part of that is private equity propping up more smaller companies that probably have no business still being in business, but there's so much money available in the capital markets that the private equity folks have long-term views and they were able to keep some of these oil-filled, small oil-filled services and small independent producers and small midstream companies running. But what are the five key things that I see the larger, more successful ones doing? It's a talent management. It has to be a key part of the equation. Integrating with your suppliers to reduce your overall cost of recovery and delivery has to be key. Better managing risk through joint ventures and M&A to multiple players coming together, de-risking projects, making it not all about just one company shouldering the whole potential project. Variabilizing the cost base so you can go up and you can go down and it's not just a headcount question when you face commodity price changes. And then figuring out how to innovate because technology is so quickly forcing change in how these companies operate that those that will be successful have to come up with the ability to innovate and innovate internally and innovate quickly. So let me go through these five and just kind of do a little bit of a deeper dive on what each of those looks like in my great consulting charts now. Talent. So what this one says, it might be hard to read from the back, but you've got to look at what work needs to get done. Work that is asset sticky, very associated with the physical asset itself, stays with the line of business. Work that is very specialist, high impact, where you have a very high demand set of skills that have a big impact on your finding and recovery costs or your finding operations or what have you. Those come from a center of excellence and then things that are repeatable and easier to task eyes you might put into service centers. And so you're breaking the work into its component parts and then figuring out who is going to do that type of work from where is a key part of the talent management question. So you're not, this is how people are reducing costs. So if you're in the Permian, you have certain skills that need to be close to the assets in the Permian, but if you're operating in the North Sea or offshore Nigeria and you have certain highly, highly technical skills, with the advent of technology you could probably service all of that from New Orleans or from Houston or from Bangalore. So creating these centers of excellence and taking advantage of delivery centers all over the world and then doing more of your transaction processing with service centers. Now the latest wave of the future for the service centers are robots and I don't mean the mechanical robots, it's just the artificial intelligence of the future. Algorithms can post transactions and do most of what a lot of I will say most because I am with an accounting firm. A lot of what accountants do today and some of the specialist judgment that they apply relative to invoice matching and things of that nature. Cognitive intelligence, machine learning can do a lot of that activity. So we see it moving into potentially reservoir engineering, reservoir mapping if you can use computers to better do that initial assessment and then you use human brain power to take it to the next level. You've just saved a lot of time and money and shorten your life cycle to time to first oil. And then there's ways of delivering it so that you make sure that the delivery mechanisms, you get in the right quality, their service delivery angles. But figuring this out especially if you're an integrated oil company or you have vast operations, how you better manage your talent so that you don't also have the boom and the bust of the people who can cultivate your resources for a long-term career is a key part of that question. I have been asked in the past, do I think the industry will return to the headcount that it was beforehand? And I think some of those jobs will come back but I also would put forward that technology will deliver some of the jobs that were being performed by human beings before the downturn in this next cycle. Integrating the end-to-end drilling and production value chain, basically this shows that there are three kind of key decisions that can either extend the life of a rig or improve the cost profile of that drilling that well. Integrated planning to providing more transparency and visibility to your service providers as to what kind of rigs you need where, how much piping you need, your drilling equipment, how much mud, et cetera, et cetera, et cetera. And making that open and available is a key part of this process. And you will see, you will start to see more innovative drill rig contracts coming to market. Shell and TransOcean recently announced one another, a couple others that are under negotiation. Fundamentally different way of thinking about day rates for drilling rigs and fundamentally different ways of helping oil companies get out of those drilling rig contracts when they have a downturn or when a rig needs to be warm stacked or cold stacked. Second key decision is inventory management. Like how much of the equipment do you need to have? And one of the things that folks are realizing, they were custom building facilities for shale oil developments in Eagleford and the Permian. And the EOGs of the world had standard profiles, right? This is what my facility looks like for X, Y, and Z. I'm doing different well pad spacing. And they were radically reducing the total cost of the post implementation management. So they didn't have to have different kinds of valves or different kinds of equipment or different kinds of specialties to maintain and operate the equipment once it was in operation. It seems a little perhaps obvious now to all of us in the room, but it wasn't being done because a lot of the engineers in the industry love to create things anew and solve new problems. And then that created challenges down the road for folks that had to standardize and maintain. A great example of this in action, I was in Mexico City speaking at their oil day. I can't remember what they call it, Mexico Energy Day. And on my panel was Statoil, Chevron, BP, and Shell. And every single one of them said that for new, okay, now it's caveat new, not, you know, Mars platform that's already in the Gulf of Mexico, new ultra deep water projects in the Gulf of Mexico, they could do at break even of $60 per barrel, 60. I mean, I was like, what? You can do that now? And they go, well, it's fundamentally different design. You know, when you think about Jack St. Molo and that's a Statoil, Chevron one, they even referred to it as the Cadillac platform that they built, right? So there's no more ballroom dancing on the platforms. They were joking. But they figured out ways to re-engineer the platforms to be break even at 60. That is totally rethinking how you do your design and build. And then the last is the operating efficiency, which is working more closely with your oil-filled services suppliers. You know, sometimes they just don't ask the right questions. Like, you might spec a tank that's holding water in the Permian, and if you're a shell, you are using the same spec that you would for a tank that was holding hydrocarbon over water in the Gulf of Mexico. Well, you really, it's water in the Permian. It's water that would bleed into the desert. You don't have to double wall it. It can be spec that comes from the mill. Those kinds of information points were getting factored in, and that's how they're achieving those cost reductions. Better leveraging risk and sharing capital. It's so expensive. There's so much risk in these big projects. So here's one example of a recent tie-up. One subsives Cameron and Schlumberger. Actually, then Schlumberger bought Cameron. Helix entered the venture and sub-C7 because it becomes one sub-C joint venture. It's combining their technologies, combining their capabilities. It's helping them manage the talent management questions that we were talking about when they lost people, so better leveraging their resources and having better access to a broader customer base and combining their intellectual property, which probably would have been unheard of maybe even five years ago. Oh, no, that's my IP. I can't share it with somebody that's partially a competitor of mine and coming together to provide an end-to-end full service set of capabilities. The other thing that the integrated oil companies in particular are getting smarter about is demanding turnkey, fixed cost, kind of all-in end-to-end services from their oil-filled services provider. So, you know, no longer can a Halliburton say, well, liquids is this, technology is that, manpower, womanpower is this, and I got contingency baked into every part of my estimate. No, you take the risk and I want one estimate, fixed fee, I'll do risk sharing, you know, if you save money, I'll share that with you. But I'm not eating your inefficiencies, and I think that's helped a lot to drive the cost down. Variabilizing the cost base, I liked this example. I thought this was a very clever example. It's GE trying to do kind of what it does with aircraft engines. So, they bought back the blowout preventers that they had sold to Diamond Offshore, and they're leasing those blowout preventers back to Diamond Offshore, and Diamond Offshore only has to pay for them when they're in use. And they don't, they don't pay for the maintenance. So, GE is putting a lot of data and analytics around these blowout preventer's performance. They're getting smarter about their own equipment. They can do predictive and preventive maintenance because they're incentivized, if it goes down when Diamond Offshore actually needs to use it, GE doesn't get paid. So, it creates a variable-ized cost structure, and I think we're going to see more and more deals that get done like this throughout the industry. And then the last of my five, if you go back to my five, it's innovation, and it's innovation on all fronts. And the energy industry in particular may not necessarily consider themselves to be the most agile or innovative, although the technology that we've already talked about demonstrates incredible innovation and technological prowess. But they don't necessarily have a culture that allows them in particular to fail fast because you want to experiment. If you're going to fail, you want to do it quickly. You learn from that and you move on. So, we're seeing successful companies starting to build this culture of it's okay to fail. It's okay that they'll do the crowdsourcing for ideas. They'll have contests. They'll engage a broader part of their workforce to come up with new and exciting and different ways of working. So, change the way you solve problems for your thinking, creating a minimally viable product. That's back to the platform design even for Ultra Deep Water. Looking for partnerships for your innovation agenda. The successful energy companies, particularly in the utility space as an example, are partnering with companies in Silicon Valley to figure out what is that next app that's going to change the way I develop and deliver electricity to my customers. And creating an organizational model so you'll see more and more energy companies have chief innovation officers. And I know it sounds a little kind of gamey a little bit, but it does help when you appoint somebody and you really change the view of the culture that we care about innovation and we're going to promote and sustain it. And then finally having that culture to take those ideas and bring them to fruition and commercialize them. So it's not just the life cycle of how you build innovation into your culture. It's also ensuring that you are building innovation and leveraging technology in particular across all of the different functions. So it's not just a corporate. We talk a little bit about robots for accountants. But when you look at well performance and well management, we work with McLaren, the big car formula one. I don't know what it's like. A race car provider. And they have so many data points that come in from their cars and they know exactly when to pull it out for a pit stop and exactly what to do to it in the 30 seconds or 10 seconds that they have while they're working on the car. We're doing that same kind of thing with some of the super majors on their well performance. And so how do you take what McLaren was doing with its cars and apply that to your drilling operations? Pipeline companies, thermal storage, gas processing, a part of the business that's not necessarily considered to be very sexy or forward thinking, there's so much that can be done with better management of pipeline operations, better scheduling of the crews, better management of the equipment that they have on their trucks. So one pipeline company that we work with, one of the larger onshore operators, they drive 47 million miles a year across their routes. 47 million miles a year. Just imagine the cost of doing that and the potential safety risk of doing that. So if you can cut that in half or optimize it by a third, you've just saved a lot. You're de-risking your operation and you're better managing inventory and you're improving your throughput and your uptime. Service functions, customer care and utilities. What if your utility were able to call you and say, we think you might have left your pool running because your electric bill is what it would have been for a month after only two weeks into the cycle. So we think there's something going on. Or even if it knew, you have left your pool on. Do you want somebody to come out to your house and turn it off? Proactive. You don't have to call a utility to tell them that your power's off. They call you and tell you that your power's off. I have a friend, center point in Houston, does that. And she subscribes to it and I'm like, why do you need to know when your power's off? She's like, I have a wine cellar and it's really important. She's from California, she protects her Napa investments. So I think she's got a backup generator for her wine cellar. And then you look at things like trading, nominations, pipeline management. Just think of the potential that cognitive intelligence, data and analytics, mobility, the things you should do on your smartphone if you could do at work. All of those things are going to drive radical change in how the energy industry is serving its constituents. Its constituents and all of us going forward. So just to summarize and bring it to a close, what are the five things? Talent management, integrating the end-to-end development for life cycle, better partnering, which is difficult to do, but the successful companies will do it very well and they'll figure out how to leverage partners, variableizing their cost and leveraging innovation and technology. So those are the key remarks that I wanted to share with you. I am open to taking questions. Alright, so we'll begin with questions from the students. So you talked a lot about how oil companies are restructuring themselves. How do they view alternative energy companies, solar companies and stuff, and how do they respond to those companies taking over a larger share of the overall energy market, especially here in California? So Shell and BP in particular have launched renewables and energy venture investment groups, and BP has probably been at it longer than Shell, but they've recently relaunched their new energy ventures team. And what I find fascinating about it is they want to be like a wind or a solar company. And I kind of look at that and I go, that's not where your strengths lie. And you're not going to be able to be as agile and as lean as another one of our clients called EverPower, which is a wind provider. So how do they compete? Because they realize that fossil fuels aren't going to be around forever and that if they want to stay in the game, they have to figure out a different way of continuing to manage that transition. I don't think they have it exactly, they definitely don't have it exactly figured out yet. But I do see the fossil fuel companies in particular starting to come to grips with this notion that we are not going to extract all the hydrocarbons that are underground today. There's going to be oil that is left in the ground. So the peak oil fears, not going to happen. There will be oil that we will not, hydrocarbons all over the world that we will not tap. So it's kind of point number one that I think the industry is getting its head around. The point number two that they're getting their head around is there needs to be a portfolio of energy resources and how do we best develop that portfolio together understanding the cost profile of delivering it and understanding the climate impact of delivering that. And I think the key for me as a service provider in this industry is it's not an either or. It's not fossil fuels or renewables. It's not cost effective or cheap or environmentally friendly. It needs to be an and world. And those of us in this room I think are the ones that can come up with the and story. What is the future of nuclear? Carbon-free investments we've already made. We may not like them necessarily, but can we keep them going for another 15, 20 years while we figure out everything else in the portfolio? And then let's also remember that not all of us are lucky enough to live in California or Texas that have tremendous access to electricity because another statistic that I like to quote is your average Pakistani consumes 450 kilowatts of power a year which is the same as what your average Texas refrigerator consumes. So electrification is directly tied to wealth creation and if we want to think about economic opportunity the whole world, access to energy has to be a part of that. So I don't have a great answer for it. I'm trying to preach it's got to be a portfolio. Let's not demonize one versus the other. Let's figure out what the long-term strategy is and maybe the U.S. can advance renewables and storage and some of the technologies more quickly but we also can't deny India and Pakistan and Africa from the opportunity to have electricity. So are there ways to leapfrog the technology? Do you really want to see us having to build a bunch of T and D wires across the African continent or can we use the battery storage and generation of electricity within the community or within the village in a way that's a lot more optimal from a cost and delivery and climate perspective. So in long story, long version but I'm telling my clients you can't compete like that and you have to figure out what your role is going to be in the overall portfolio. I'd be interested in knowing a little bit more about the survey around downsizing and whether or not that affected people in different age brackets differently. So the last time I was in the oil industry we recognized already very much a vital distribution out in the industry. So did you see sort of a lot more early requirements being asked for while maintaining young talent that might drive more successfully like culture innovation? There's a definite fear of the bimodal distribution Isaac that you just pointed out. They made a big mistake in the 80s when they cut a lot of people and then they stopped hiring for at least 10 or 15 years and so now your average oil company employee is either on average 50 and above or 30 and below. So you have this big gap. They did not want to repeat that mistake this go around and so for the first year that's why the statistic was so starkly different 79% said they see headcounts staying the same through 2015. They really tried to ride it out. It was contractors, consultants, people like oil field services workers. Those were the ones that got let go. 2016 though they couldn't continue that and unfortunately they did start laying off the young petroleum engineers who only had a year or two in on top of the early retirements. So I think we're going to suffer again because we scared off a generation that we can't afford to scare off and I think that is going to be a big, big part of how the industry needs to come back. I also think that means they're going to rely a lot on technology to fill that, to end up filling that gap. I wish I had a different answer. I thought they were going to have come through it okay but they ended up not being able to. Building on your very nice point that everyone thinks they're going to be the winner and that there are opportunities to tap innovation and the theme she raised in response to the first question you could maybe say that some of the great strengths of the oil and gas industry in thinking about transformations towards a decarbonized economy where it's all about energy access as well could be the fact that oil and gas is particularly good at transporting CO2 injecting underground, managing massive infrastructural projects with big government dimensions and doing that across compute orders. So kind of really pushing for the things that oil and gas does best, do you see ways to leverage that in terms of letting them be the leaders in decarbonization? I think that's a great point and that's why you see some of them making a big bet on gas as an example too. LNG needs to be, will continue to be a big part of what gets driven and I love what you just said about what they are good at, figuring out their core competence. I haven't seen them talk like that yet but I'm going to take that point and leverage it going forward. So you say like the companies are getting to the idea that there will be oil left in the ground and now more than ever they need young talent to bring this innovation to the companies, how do they balance the perspective of a, especially for instance me. As a young person I don't want to go to work in some dying industry. So then how do you attract talent to these companies if they see themselves that eventually the industry is going to go small or die? Yeah, I think I'm not ready to say the industry will die yet. I think we're still a long way off from a fossil fuel free world. What they do have to focus on is the things that make them sexy and attractive to the next generation and the things that are important to the next generation. I was telling a story earlier. ExxonMobil has made a huge investment in a new campus in the north part of Houston. 10,000 employees all gathered together and they have, while Shell was kind of snickering up their sleeves going ha ha ha Dummy's made that big investment in 2014. I think they will reap tremendous benefits for making that investment because they're set on the way work gets done in the future and frankly in the way that millennials want to work together. So it's a beautiful campus. It rivals, almost rivals this one. Wi-Fi is everywhere. Coffee nooks everywhere. Artwork, fun little places to go sit down. Trees to sit under. You get your work done. The desks that move up and down and things to kind of play with and a beautiful gym on campus. Child care on campus. We're cut on campus. Multiple dining facilities and they want to create this environment that young people, technologically savvy people, want to engage in with other smart people because frankly it will end up feeling a lot like a Stanford or a Harvard if they do it right. Intellectual stimulation, solving some big problems. That's the message that they have to get out and in the technological I wish I had the answer to it because I get asked this all the time how do you bring sexy back to the oil industry and I don't have the answer to it. But I think if they focus on the technological opportunities it rivals what I think Silicon Valley is doing and if you're interested in the planet and the environment I think that's a great place to be. There's a question there by the... Yeah, so you mentioned that there won't as many renewable energy companies wouldn't bankrupt as you expected because you have too much money in the private equity industry supporting there's more companies. Yeah, not renewables. I was surprised that there's some really small oil field services companies and some really small hydrocarbon production companies that were propped up by private equity. The renewables industry I think remains very robust, lots of access to capital despite Solar City and Sun Edison and some of those types of things but there's some really, really interesting companies that are out there and there's lots of capital that's available. Reaction and confidence to the new Yeah, there's still a lot of money available. The other interesting thing is the investor portfolio has shifted so CPPIB is a big Canadian it's like the CalPERS kind of thing for Canada. They bought natural gas producing wells in Colorado. Like no company they just bought the wells because they believe in the commodity price and the asset and so we had to help them build a company around it to run those wells that you know there's a lot of money that believes in the commodities that underpin this industry and they'll come in and invest in lots and lots of different ways. That's why you don't see refineries shutting down either. I mean two refiners in Hawaii they both got sold down. Lots of those assets continue to get invested in and maintain and there's a lot of smart money from Wall Street that comes in to keep it afloat. My questions about the mergers and acquisitions you've advised. Are you determined that the company should do a merge on that acquisition and for example diverge into renewable energies or focus on the core competencies because often there could be synergies but the girls would be probably making the town work together and creating that. Yeah no for sure. We do a lot of research on why mergers fail because most of them destroy shareholder value in the long term versus created. We've even created a we're doing a breakout session on this exact topic in our upcoming global energy conference in May and what I was trying to get the group to do is do a look back. Overall over the last three or four years when you look at energy company mergers is it net positive to the shareholders or net negative? The guys told me that they can't parse out the commodity price impacts because some people bought high and then it tanked and others got out at the right time but generally speaking you don't want to stray away from your core competency. It needs to be synergistic and you need to make sure that you're paying the right price the multiples are right and then you need to do the cultural assessment to say can you or can you not work together? One example is I was at Ernst & Young a couple decades ago and Ernst & Young and KPMG were going to merge back then and the single thing that kept them apart was the cultural assessment that they did and they went let's not do it. So they got really close and then they decided not to do it which was probably a smart thing because of the cultures. One last question. Yes, give it to me. Me. Okay. What you've told us about the petroleum industry what do you see in the future of the coal industry in the U.S.? Well they've got a lifeline I think with the administration I mean the coal industry has really suffered and some great companies like Peabody Coal and Cliffs Natural Resources and important clients of ours and but coal is still a big part of electricity generation all around the world and I got the chance to meet Tony Hayward when I was in Davos and Tony Hayward is the CEO now the chairman of the board of Glencore which is a big coal miner I don't think coal is necessarily going to go away anytime soon and I do think that they got a lifeline with the new administration having said that would I go invest in Peabody right now? Probably not, I'm still I wouldn't necessarily make that bet I'm also the one that bought Enron stock when it was crashing I bought it $12 I totally believe Jeff Skilling and Ken Lam totally bought the Kool-Aid can't get any lower than $12 I bought it again at $11 can't get any lower than $11 so I don't know that I would put too much stock in my own stock tip Alright I think in the interest of time we need to close it out there so let's thank Regina once again Thank you all very much Thank you