Tenaris' US President, Luca Zanotti, comes into The Oil Patch this week - 01-14-2024

Tenaris' US President, Luca Zanotti, joins Kym this week In The Oil Patch and explains his role in the company and his new role as part of the American Iron and Steel Institute Board of Directors.

Inside the Oil Patch. The Latest information on the Oil, Gas, and Natural Gas industry with your host, Kym Bolado. For more information visit https://shalemag.com/in-the-oil-patch-schedule/

Episode Transcript

(00:00):
Welcome to in the oil Patch,presented by Shale Magazine, broadcasting from the
oil Field Experts Studios. Oil FieldExperts where you get the right products right
now in the oil patches, wheretogether we explore topics that affect us all
in oil gas business and in yourcommunity. Every week, your host Kim
Balatto will visit with the movers andshakers in this fast paced industry. You'll

(00:22):
hear from industry experts, elected officials, and many more right here on in
the oil Patch. It's time forme to welcome on my guests, Luca
Snati, who is the US Presidentof Tanaris and also chairman of US OCTG
Manufacturers Association. Luca, Welcome toin the oil Patch Radio Show. Thank
you Kain for having me. Well, you know, we got the press

(00:43):
release that you all are opening upa new association, and I'm always interested
in associations, especially ones that tendto try to help educate our members of
Congress and our administration on the importanceof having solid energy policies, and oil
and gas is the most solid wehave at this moment. So let's begin

(01:04):
by tell me a little bit aboutTenaris. This is your full time job.
You are the US President Tenaris providesa service into the oil and gas
industry. Can you tell me alittle bit about that? Yeah, sure,
thank you for the question. Now, canais Tenais. Let's start globally.
Tonas is the largest OCTG and wetalked about CITG. We're talking about

(01:30):
the casing and the tubing that isused nh wel so it's the largest OCTG
in the world. We have apresence of we have a number of We
have presence in twenty three countries.We have forty two facilities in the world

(01:52):
for a production of seven point amedia. We are also the largest in
Duned States. We have in theStates fifteen facilities operating. And we covered
all the areas in which oil andgas is BRODIUSDA And since we started off
in twenty or six, we investedroughly eleven bon in the United States.

(02:19):
Well, and you certainly have beenwith JENARIES for quite some time, a
little over twelve years. Your backgroundis a you have an MBA as well,
so definitely you have your very seasonedexecutive. So it makes sense that
you were elected to be the chairmanof a new association called the USOMA.
Let's start with why the need tocreate your own organization. I want to

(02:43):
get into the founders and what's themember companies that you guys are starting with
and where do you see it growing? A little bit later on in the
show, but your group appears tobe one of a lobbying group that helps
educate members of Congress to the importantrole that you guys play in the supply
chain, specifically when we talk aboutoil and gas. Why did you guys

(03:06):
create the organization? What issues andproblems did you see a rising that really
kind of morphed into let's create anassociation to represent our interest and help members
of Congress and the administration understand ourvery important role. Okay, Uh,
so let's start from maybe a littlebit from the beginning. So yeah,

(03:30):
the name of our association is usUH US CDG Manufacturing Association, So yes,
us us OMA. All right,and so you we're talking about all
the CDG CDG, as I wassaying before, is casing and uh achieving.

(03:50):
Just give you a little bit ofan idea of what we're talking about.
Uh the word uh why the comptionof these materials OCDG I'm saying is
more or less five point five millionin a normal year. If you exclude
China and Russia that are say untouchablefor the western world, uh you get

(04:15):
nine point five million. And outof this nine point five million, the
US represent represent five million. Soas you may understand, the US of
CDG market is the single largest marketin uh in uh in in the world,
in the in the in the world. Now why in the specific association

(04:40):
to come to your question, Well, O CDG is made out of steel.
But OCDG has its own peculiarities.For example, the process through which
it is producer the first to shortstand form other still still products. So

(05:01):
we have differences in manufacturing, inprocesses, in logistics, in services,
associated data to the specific OCDG.And so that's why as a US producer,
we felt the need of creating theseassociations. And just to complete let's

(05:21):
say the number part. This isan association that counts on six producers,
so tens plus other five and werepresent more than seventy five percent of the
US domestic production. Correct the supplychain, which is very much an issue.

(05:43):
We've seen when we have supply chainissues, how it increases prices to
the consumer. It's a very importantmarket and it's probably one that is somewhat
overlooked when you look at the wholesupply. Chaine specifically in energy, but
still is one of the most importantoponents. So it's good to see that
there's an association now being created tohelp again educate these members of Congress.

(06:06):
In y'all's release of the information onyour new association, you guys, you
pretty much are saying that the importanceof it is that it creates thousands of
high paying jobs in these still plants. And we don't do a whole lot
of steel manufacturing in the United States. Do you guys do hot roll oils

(06:30):
for the oil and gas industry?You guys are also trying to reduce the
carbon footprint. Tell me a littlebit about that. How are you guys
going about doing that specifically in reducingour carbon footprint? Yeah? Sure,
Look, the us OCDG market ismade out of two big components. One

(06:54):
that is seamless. So uh theseare products that data mainly produce. Produce
produced by steel billets or bars,and in this case, uh tenaries Balureck
and other producers. You still,for example, Bendler, we are producing

(07:15):
our own steal. So we startfrom the scrap and we end up with
the finished product. Then there isa second round through which cities is produced,
which is by welding flat still.So in this case producer, they
do not produce their own steel,but they buy US made steal. In

(07:39):
a case, uh, the carbonfootprint or the embodied carbona of our products
is way lower. I would said, just to give you a ballpark number,
is half of the average world.Why because the still that is produced
by the producer within the association orthe still that is both as an input

(08:05):
from a domestic US still producer ismainly produced through the electric art furnace route.
So this is a this is arouter the start from scrap, as
I was saying before, and endswith the finished product. And this rout
has a carbon footprint which is muchlower I was saying before, fifty percent

(08:28):
lower than the other aut, whichis the integrated where we start from iron
ore and cola and through blast furnaceswe produced steel and then the finished products.
So anytime that we are producing theUnited States is has a carbon footprint
which is halfa on average of whator the same tom that we could import

(08:50):
from abroad. So this is oneof the aspects that we intend to use
to educate our community. Was theycalled there's they say, members of the
government, the local, state,and federal because this is a very important
topic and also right now not onlyfor reasons of national security, but also

(09:16):
in terms of carmon foot printer,which is a hot topic right now.
Yeah, and I want to getinto that. You know, you also
claim that it is a matter ofnational security, which I believe that too.
I believe we need to have strongenergy policies here in the United States.
But what are some of the mostpressing issues that your organization feels you

(09:37):
need to work on and possibly probablypassing laws that enhance your ability to work
here in the United States, andhelping members of Congress make sound energy policy
decisions and laws as well. Arethere some key areas that you guys are
looking at with members of Congress andthe administration to help further this along.

(10:00):
Yes, look here obviously the purposeassociation, they are different purposes. As
we're said before, we want tocreate awareness among difference sty holders. We
want we want to collaborate with otherassociations that aim at encouraging healthy domestic industries.

(10:24):
For example, I'm mentioning the arethe AI, s I or SEM
are still manufacturer associations. And whenit gets to specifically the third point of
our AGENTA, which is leveling theplayfielder, I believe that year we have
two main items on our AGENTA.First is the enforcement of existing trail laws.

(10:50):
There are trail laws that needs tobe enforced. And second, we
would like to work with the Congressto create new new tools that would allow
and yeah, maybe we get verytechnical, but in general wood allow to
capture the trade distortions that are notstill covered by the current trade laws.

(11:13):
I'm talking about particular market situation.I don't want to go into the details
because it will be very technical.But these are the two main points that
we have on our agenda, andlet me tell you why this is important.
And to do this, I needto go back to the figures that

(11:35):
I was giving you before. Wesaid before that the domestic consumption obviously is
in the range of five million peryear five million tones per year. I'm
saying now out of these five milliontones, fifty percent is supplied by imports,

(11:56):
and a good chunk of these importsare coming from countries, mainly China.
Satellites that have no domestic consumption.So there are some countries that don't
consume any city J and the producersthat are based in this country have been
going based on subsidies and have theonly purpose of exporting to the US market,

(12:22):
which, as I was saying before, is the single largest market.
Now, these obviously creates a threatfor the domestic production. Domestic production does
not come on SUBSIDIESA. We don'tneed subsidiza. We want to I mean
to grow and go bigger with ourmeans, but we need to make sure

(12:43):
that we are playing on a levelplayfield. And this is very important.
Look as let's take a break realquick. When we come back, I
want to get into this because nowwe're moving into it's a matter of national
security. So let's take a quickbreak. You're listening to an old Patch
radio show. Mob be right back, and you're listening to in the old
Patch radio show. My guest todayis Luca Zanani, who is the US

(13:05):
president for Tenaris and also newly electedchairman of the USMA, a new trade
association focusing on steel manufacturing and tradeimbalances that are currently existing in our US
policies. Before the break, youwere explaining Luca, how there are countries
that are importing here in the UnitedStates and they really seems like they have

(13:30):
a sweet deal versus our US companiesthat are actually based here or selling here,
and how the trade imbalancement is notquite fair to these companies. And
so your association, from what I'mpicking up, is really designed to try
to first of all, level thatplaying field, educating our members of Congress

(13:52):
the association to the importance of this. So go on, you were talking
about how these imbalances it's kind ofimportant. I'll give you back the mic
to finish telling us what you weretrying to tell us about the differences.
And then I want to move intoit's a matter of national security that we
do focus on this. Yes,we as a US or CDG Manufacturing Association

(14:16):
or USUMA. Again, we arefor the for the for the level playfield.
Now, I was saying before aboutthe the imbalances, and we said
that fifty percent of the US supplycomes from countries that have no domestic supply

(14:39):
that has been going on subsidies,mainly the China satellites. And just to
give you an extempola, if youtake the steel business, flat steel,
long stealer. The share of USdomestic production is seventy five percent and only

(15:01):
twenty five percent is based on inputand this obviously creates a power of national
security. In twenty twenty two,there was a shortage of pipe supply and
the ramp up that we let mesay that the oil and gas industry did

(15:26):
the super job and ramping up afterthe pandemic, but anyway, OCDG was
very short. We saw price spiking. And why was that so? Because
during the pandemic, basically the domesticindustry was reduced to very little and so
we didn't have the possibility to rampup fast enafa to supply our customers and

(15:52):
to accompany them through their expansions.I believe that as an industry we did
or what we could. But theseembassies in Trada create swings in in Apar
and Amanda. That doesn't allow domesticproducers to maintain a continuous and steady production
process. And this is the spikeswhich is going to cause the spikes,

(16:18):
And this is obviously something that isnot good for us, is not good
for our customers. So can wedrill down a little bit more into it's
a matter of national security I'm notquite sure if I really if we explained
it well enough for our listeners tounderstand. So when we have obviously not
enough access to steal still products tocontinue to increase our production here in the

(16:44):
United States in the oil and gassector, we know its spikes prices,
but it also leads us very vulnerableto foreign countries. And if we saw
anything completely different topic, but wesaw that when we had COVID, we
were very reliant on China for thingsthat we needed that turned into a matter
of life and death, which wasof course gloves masks. They make penicillin.

(17:11):
So when it's outsourced, you know, we don't think about it until
we actually need it and we havean emergency. And this is somewhat what
you're saying pertaining to what you guysare providing to the energy industry. With
poor trade policies in balancements, itleads to shortages, which then of course
leads to slower production and of coursespikes. Is there anything else that is

(17:33):
in there that I don't really seethat is important that keeps you guys up
at night or trying to help Congressunderstand this is a really this is an
important commodity that we need to havean abundance of not limiting ourselves. Yes
and no, I believe Kim thatyou touched the main the main points here.

(17:55):
The only the only, let's say, point that I would like to
add on your on your consideration isthat there is no well drilled in the
United States in the world that doesn'tuse the CTG. So it's even outside
of oil and gas. It goesacross all different platforms of times, types

(18:17):
of jobs and stuff because there's alot of stainless still that's used in the
United States. Is that what you'resaying now, Yeah, I'm talking about
oil and gas wells. Okay,okay. Obviously pipes are also used in
the midstream and downstream, but inthis case we are talking about upstream only.
But my point is that each weldthat is built in the United States

(18:42):
in the world is carrying or CTGbeing casing or tubing and tubing not for
tubing. So basically, this isa product that is of fundamental importance for
the oil and gas companies. Withouta CTG, you don't have the possibility

(19:06):
of drilling wells, and basically youdon't increase domestic oil and gas production.
So this is the point that itis very important that the audience and understand
and not having a reliable, strongdomestic industry. Again, I mean,
then I see is a global company, so we are operating all over the

(19:26):
world, and as I was sayingbefore, we are operating in twenty three
countries. So basically you can thinkthat we are operating in each countries in
which there is oil and gas.But the important thing is that we need
to add a domestic industry because relyingon very long supply chain. I mean,

(19:47):
to order a pipe from a Chinasatellite, it takes eight months,
and so if you have a searchin oil and gas needs as we had
after the PAN, you cannot relyon these things. Yeah, you can't
wait eight much. Yes, Andthis is beside that, And this is
beside the problem of national security,that of course is much much larger and

(20:11):
complex than the OCTG and I'm notputting myself into that one. But just
if you consider the logistic and thesupply chain, you need to understand that
it is key to have a strongdomestic industry, especially in the largest market.
US is the largest oil and gasproducer, cannot live without a stronger

(20:33):
OC digit domestic industry makes sense.That's take a quick break, Luca.
When we return, I want toget on some of the trade associations you
guys hope to partner with, andwho's going to be leading this charge.
You're listening to a new Old Patchradio show and we'll be right back.
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(20:56):
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(21:17):
ninety two. Unique Hr the partneryou can trust and we're back. You're
listening to in the ol Patch Radioshow. My guest today is Luca Zanati,
who is the US president for Tanaris, a global powerhouse, and also
chairman of USOMA, a fairly newtrade association that was created to educate and

(21:38):
help members of Congress in this administrationas well as the general public, understand
the importance of the supply chain issuesthat we have here when we're talking about
the oil and gas industry. Aluka, before the break, we were discussing,
you know why it's a matter ofnational security. You said that sometimes
these other countries can take up toeight months to provide what we need these

(22:02):
case scenes and two wheelers, stainlesssteel in order to keep our energy production
here in the United States. Movingforward, I want to talk about the
trade associations because we've had a lotof them on our show. From AXPC
and Bradberry, who's the American Explorationand Production Council, American Petroleum Institution,

(22:25):
Institute, Mike Summers. These aresome of the largest trade associations that also
focus on trying to educate our membersof Congress this administration on of course having
solid energy production here in the UnitedStates to of course keep our needs here
what we need, as well ashelping other countries, our allies Europe provide

(22:48):
them with their domestic energy that theyneed as well. So let me go
back to you mentioned earlier in theshow about some trade associations that you hope
to partner with. How has thatand going since you recently enacted this association
and I want to tell our listenersyou don't quite have a website yet.
There's plenty that they can google andread about you. Guys, are that

(23:10):
new you're not quite able to produceeverything we need to understand everything you're working
on. But what trade associations doyou hope to partner with? Yes,
Kim, yeah, we are failingnew and we are working on the website
and all the tools that are requiredto provide the information. And in this

(23:30):
sense, thank you very much forgiving us this interview. And I believe
that you did an amazing job inresearching because they're not a lot of information
available for you. But getting toyour question specific obviously, we partnered with
every association that is aiming at explainingeducating how domestic industry are safer, are

(23:56):
more reliable and have a lower carbonprint than the rest of the world.
So API is a great life ofASA. Mike Summer is a friend.
But we work also with the othersteel association like the SMA, the Steel
Manufacturing Association and the AISI because inthe end we are all after the same

(24:18):
objective, which is to create ineach specific sector a strong, reliable and
local domestic industry. Very good.Who is going to head up this association
in the educational part or the lobbyingpart of helping everyone understand what the problems

(24:40):
are with the trade and balancement thatyou discussed, as well as the importance
of making sure that you guys tightenup the trade imbalancement and make sure that
it is a level playing field.As you said earlier. Yes, the
general counsel of the association is aveteran great lawyer that is very well known

(25:03):
and it's going to be one ofthe main actor in this effort of educating.
He is already working in this,so nothing new from my side.
And we also are looking for anexecutive director that comes from the industry and
can help us in in in inthis effort. Again, we are relatively

(25:26):
new and we are still putting togetherthe team, but these two are going
to be very important roles when itcomes to this let's say education component that
you are mentioning. Well, let'stake a quick break again. Sorry,
we have to pay the bills somehowwith our commercials. But when I return,

(25:49):
I want to talk about the futuregrowth, future potential members, founding
members, and where you see thisgoing and growing as along with also just
trying to understand if you get yourwish in the way of educating and changing
the laws with better trade imbalancements thatare out there. Now, where do

(26:11):
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go to Texasmutual dot com, slashTXOGA and we're back. You're listening to

(27:25):
an old patch radio show. Myguest today is Luca Zanatti, who is
the US president for Tannaris and alsochairman of USOMA, a newly created trade
association designed to really help educate thegeneral public, members of Congress, and
the administration on the importance of thesupply chain issue when we specifically talk about

(27:48):
Tubular's stainless steel and the trade embalancementthat currently is in place on not really
allowing us here in the United Statesto have strong, long supply chain with
great companies as opposed to relying potentiallyon foreign countries. So let's go back
to in this association that's fairly it'sfairly new. You guys have founding members,

(28:18):
Luca, lucat where do you seethis going in the way of how
large do you want it to grow? Are you looking for other members?
Will this be a traditional trade associationthat looks for members or do you just
want a small group of founders.So where do you see the association going
in the next six months or so. Look, no, we encourage all

(28:42):
the US domestic manufacturer to be partof the association now, And he said
so as I was saying at thebeginning, we already count on seventy five
percent or probly a little bit moreof the US domestic production. So there's
no much we can add. Onlytwenty five percent is not yet represented.

(29:07):
But as long as we're talking aboutUS domestic producers, so we need producers.
So people that actually produce the stuffthat we're talking about, they are
all going to be They're all goingto be well accepted and be part of

(29:29):
this association. This is the startingpoint, but potentially we would like to
have one hundred percent of the domesticproducers. So you're looking for upstream midstream
as well as the actual producers ofthe product to join the association in the

(29:52):
near future. Remember that, Yeah, we are always talking about of CTG.
So yeah, we're talking about theupstream portion of the oil and gas
industry. Today we have with usA Walureca, Bots and PTC Liberty,
well, the Tube of the USAand access pipes, which together with an

(30:15):
ARISA, constitute seventy five percent ofthe mestic production. There are a few
players that are out, but Imean they are welcome to join, and
on the I mean we will beglad to have others in in in this,

(30:36):
in this, in this association.Well being sure, obviously we would
need to have a boll because thisis a decision that is not going to
be taken by the chairman. It'sgoing to be a board decision. But
in general the bilows only requires tobe domestic producers. Oh sweet, okay,

(31:00):
great, So yes, they havea buy in. They're here too.
It makes perfect policy sense for themto want to join this association.
What I think I want to dois on our sixty thousand subscribers follows the
show, I want to be ableto put something in there that they can
click through as soon as you guysare ready, making them aware of your

(31:22):
new trade association why they want tojoin. And also I think together the
key is together we can make adifference. And the more numbers you have,
the more members of Congress tend tolisten. Of course, So I
want to thank you for joining metoday explaining what you guys are working on.
Keep up the good work and Ilook forward to seeing you in the

(31:42):
future once this is kind of alittle bit more formalized, and see where
you guys are going, because Lordknows, we need to help educate members
of Congress the administration on all theproblems that the oil and gas industry face
day to day all time, andgood associations are definitely needed. Thank you
Lucas for joining me on in theOld Patch radio show. Sure Jim,

(32:07):
thank you for having men, andthank you very much, and keep up
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(36:15):
Patch Radio show. I'm your host, Kimbalato, and I'd like to thank
my guests, Lucas Tonati of Tanarosfor coming and speaking to us today about
what they are working on and whata great job they are doing at Tanaris.
I'd like to switch gears. Irecently was able to catch up with
doctor Robert Kessler, who is theChief Technology Officer of Admissions in Honeywell.

(36:36):
Doctor Kester, do you mind tellingour audience a little bit about your background.
You are part of Honeywell and theadmissions department, but how did you
get there? Tell us a littlebit about who you are? Yeah?
Absolutely, so interesting story there.So I got my PhD from from Rice
University here in Houston, and Iactually started my own company called Rebellion Photonics
focused on you know, gas emissionsmonitoring and detection with hyperspectral cameras. And

(37:02):
then Honeywell acquired my business in twentynineteen. So that's how I came into
the Honeywell company. And then withinthere, we've created this exciting initiative of
really leveraging all of the different strengthsand technologies within Honeywell to tackle this important

(37:22):
topic of methane emissions and really greenhousegas emissions reduction. Well, I wanted
to bring you on because one ofthe biggest problems that the world faces is
of course climate change. And whileit's always changing, there are some different
things that we are using, suchas methane gas in natural gas that actually

(37:44):
causes a problem and a challenge forclimate change. Honeywell, you guys have
created some technology that helps to alleviatethe problem with climate change, and that
is methane leaks. Let's start withtell me a little bit about what is
the signal nificant contributor to climate change. Why is methane leaks so terrible to

(38:06):
have? Yeah? Absolutely, So, you know, around climate change,
around global warming, a lot ofpeople have heard about, you know,
carbon dioxide or CO two. It'sprobably gone the most publicity. But what
people don't realize is that methane,the methane molecule itself, is twenty five
times more potent at capturing heat inour environment. And so, you know,

(38:28):
one methane molecule released into the airis the equivalent of twenty five carbon
dioxide molecules. And so from thatperspective, it should be you know,
the main gas that we're targeting andtrying to reduce the amount of leaks across
the industry. You know, methaneis a key part of the oil and
gas you know, value you know, provides oil and the gas is you

(38:51):
know, primarily methane, right,and well utilize it, you know in
our everyday lives. So so capturingand keeping the molecules in the pipes so
we can benefit from it is ofparamount of importance. I think. The
other thing that is important as wellto tell our listeners is the fact that
the Texas Railroad Commission there's three commissioners, and part of their role is to

(39:14):
look at the environment and of courseoil and gas. They do a lot
of flaring, which is specifically whatwe're talking about. What's your estimate of
how much they actually lose in leaksor potentially flaring and the cost savings to
the operator if they or midstream tojust look at some kind of technology like
what Honeywell is offering. Yeah,So the numbers I've seen is, like,

(39:37):
I mean, it's staggering. Intwenty twenty one, I think the
estimate is that somewhere around nineteen billiondollars worth of natural gas was wasted in
the industry through like you said,you know, flaring as well as leaks.
And other wasteful uses of natural gas. So it's really important for companies,
you know, top lines, bottomlines, as well as the environment

(40:00):
that we tackle this issue. Sothen let's let's move into and drill down
to your end to end admission managementsuite better own as ems. How is
it revolutionizing methane leaks? Yeah,so it's probably best to talk about how
it's being done today to understand thesignificance of this. So, most methane
leak detection it's actually very manual,and you go to Midland or other basins

(40:23):
and there's people driving around on theroads every day going to sites to perform
surveys to manually find the leaks andreport them out and then you have to
take a second trip to fix them. And so you know, it's it's
very infrequent and very wasteful in alot of ways to be doing this in
such a manually intensive process. That'swhere we've we've really focused on how do

(40:46):
we disrupt this industry, how dowe we deploy technology in a smart fashion
to you know, help capture thiswaste, And that's really what kind of
drove us towards this end to endemissions management solutions. So what we've done
is we've actually created instruments that cango into the oil patch, can go

(41:07):
at the equipment level. Our newestdevice, we call it the Signal Scout
versus tell As Signal Scout. It'sabout the size of a coke bottle.
You know, it's got its ownenergy built into it and wireless connectivity.
It even has a magnetic base,so you could literally just drop this on
your piece of equipment. And whatit does is it automates out that inspection.

(41:28):
So we will automatically tell you whena leak occurs, We'll tell you
what piece of equipment, how bigthe leak is, you know how long
it's lasting. And so now yourguys can spend all of their time driving
out to fix leaks instead of tryingto find them. And we think that's
groundbreaking to be able to have thatinformation in real time at oil and gas

(41:49):
facilities. It definitely sounds like agame changer. And again, as I
said earlier, you know the TexasRailroad Commission is now actually going into rule
changing to address methane leaks. Sogood for them, but also good for
Honeywell that you guys are actually comingup with the technology to do this in
a way that is efficient, andjust to think about how tough it is

(42:10):
to make a buck in the oiland gas industry to be efficient, and
then of course to look at howthey are changing what they're doing to replace
leaks. The amount of money thatthey can save in these efficiencies and possibly
even recycle what they're capturing and useit elsewhere is great. What other sustainable

(42:30):
technology are you guys investing in aswe start making this path forward to net
zero and reducing our carbon footprint?Yeah? Absolutely, And so the other
key piece of this overall solution isactually our cloud based software. We call
it Forge Sustainability Plus. And soa big area of focus in the industry
is not just finding and fixing theleaks, but understanding in real time how

(42:54):
much are you leaking? How muchof it's your Scope one emissions, your
direct emission and Scope two and Scopethree. And so this software platform pulls
in all of that data with youroperations data to help baseline your operations so
you understand at a high level,Okay, what's my carbon footprint from operations?

(43:14):
Right? Where are my leak soI can go out and fix them
quick, so I can get somebenefit there, But then we have a
suite of other technologies in our portfoliowhere we can kind of walk with our
customers as they're thinking about decarbonizing.Because in the oil and gas space,
I mean, to be an energycompany and think about decarbonizing is I mean,

(43:35):
that's a pretty bold statement because ourproduct is carbon based, and so
there's a lot of technologies we canoffer up that are around green hydrogen,
so you know, introducing a newnews supply. There's also a carbon capture
and sequestration technology we have. Wealso have electrification technologies and even sustainable aviation
fuels that we can offer up.So what we're really trying to do is

(43:59):
partner with our customers, help themunderstand their carbon intensity of their operations,
and then figure out a unique pathwayfor them to get down to their net
zero. And so that's really excitingto work with our customers on their journey
to zero. Some of the biggestproblems when I talk to some of the

(44:19):
larger operators rather it's executive level csuite is ESG and being able to release
a statement of how they're doing it, and it's technology like this that actually
tracks monitors and can deliver back actuallyto them what the savings that they're doing,
and be able to make a statementthat's factual by actual data to back

(44:39):
it up. So exciting stuff youguys are doing. Thank you again for
coming and talking to us about thetechnology. Thank you for joining us.
Keep up the good work as youcontinue to represent Honeywell as the admissions director
for Honeywell. All right, thankyou appreciate it. In the Oil Patches,
where together we explore topics that affectus all in oil gas business and
in your CA comunity. Every week, your host kimball Otto will visit with

(45:02):
the movers and shakers in this fastpaced industry. You'll hear from industry experts,
elected officials, and many more righthere on in the oil patch.