Jack McClendon
๐ค SpeakerAppearances Over Time
Podcast Appearances
I'm an imperfect narrator for that as well, too, because I will admit that I have not watched the show maybe as religiously as other people that have watched it.
You know, as, as, as I said, I, my, my wife watched two episodes with me and she said, this is ridiculous.
Okay.
Okay.
Well, there you go.
So, so maybe, maybe that's, maybe I'll just leave it at that.
Yeah, no, sure.
I'm happy to do that.
And, you know, I won't tell you anything that you guys maybe haven't already heard, but costs in general, you know, our costs are kind of allocated into two buckets, right?
You have your operating expenses, which are kind of fixed and variable costs.
Those are the day-to-day costs to run a business, whether that's paying your people who are actually out in the field, you know, the cost of chemicals to treat your wells, the prices you pay for electricity to power your wells.
And then you have your capital costs, which are, you know,
largely tangible and intangible goods, right?
So the day rate of cost to drill, the amount you pay to drill a well, the amount you actually pay for the physical tools and equipment that actually go into a well, that's steel and metal and other human labor.
What I will tell you is since COVID, and this is, as I said, not unique to us, is costs have gone up.
Personnel costs are up and
And back in the day in COVID, salaries went up across the board.
And you know as well as I do, once you raise salaries, it's very hard to get those back down.
Chemical costs have gone up.
Utility costs have gone up.