Latest / CBT Live / Diesel Above $6, 70% Service Retention, Lasco & Treviño (09.15.26)

Transcript

Diesel Above $6, 70% Service Retention, Lasco & Treviño (09.15.26) · CBT Live

0:22
SPEAKER_04: Hello, everyone, and welcome back to CBT Live.
0:25
SPEAKER_04: Today is Tuesday, September 15th.
0:27
SPEAKER_04: I'm Bridget Fitzpatrick, joined by my partner and husband, Jim Fitzpatrick.
0:32
SPEAKER_06: Your partner in crime.
0:33
SPEAKER_04: My partner in life, my partner in business, all the things.
0:36
SPEAKER_06: That's right.
0:36
SPEAKER_04: Yes.
0:37
SPEAKER_04: So welcome to the show, everybody.
0:39
SPEAKER_04: Yes.
0:39
SPEAKER_06: Great show.
0:40
SPEAKER_04: We have a great show coming up later in the show.
0:42
SPEAKER_04: We'll be joined by Jay Lasco, dealer principal of Lasco Ford, and dealer principal of Grand Blank Michiganishi.
0:50
SPEAKER_04: And then we'll welcome oil and gas expert Ray R.T.
0:54
SPEAKER_04: Trevaño the third.
0:55
SPEAKER_04: So great show coming up, right?
0:57
SPEAKER_06: Yeah, absolutely.
0:57
SPEAKER_06: Can't wait to hear from Mr.
0:59
SPEAKER_06: Lasco.
0:59
SPEAKER_06: He's been around the industry, he knows car the car business.
1:02
SPEAKER_06: I've been a fan of his and uh he's runs a great dealership.
1:06
SPEAKER_04: He's doing a great job.
1:07
SPEAKER_06: Yep.
1:08
SPEAKER_04: So we'll talk about it.
1:09
SPEAKER_06: Yeah.
1:09
SPEAKER_06: So um uh well the did you want to talk about the sponsor of the week?
1:13
SPEAKER_04: I would love to.
1:14
SPEAKER_06: Oh, okay.
1:14
SPEAKER_04: So today's sponsor is Radar by Auto AI.
1:17
SPEAKER_04: Keeping up with advertising compliance can be a full-time job.
1:21
SPEAKER_04: Radar by Auto AI helps make it easier.
1:24
SPEAKER_04: Radar monitors your VDPs and meta ads for pricing and disclosure issues, flags potential compliance risks, and can even keep an eye on what your competitors are doing.
1:35
SPEAKER_04: Protect your dealership and stay ahead with the radar by auto AI.
1:38
SPEAKER_06: That's right.
1:39
SPEAKER_06: And by the way, we had the founder on um last week, and what a what a great program he's offering.
1:45
SPEAKER_06: Uh I just want to say a couple of words on this because we were passionate about uh the FTC and we had a whole conference on it in the right in DC and Bernie Senator Bernie Marino was there, and uh um I think this is an area that the that the industry still isn't paying enough attention to.
2:02
SPEAKER_06: And uh I that you've got to step up, folks, and and make sure that your dealership is compliant.
2:08
SPEAKER_06: Uh I love the the radar program because for$299 a rooftop, they ensure that all of your marketing at your dealership is completely uh compliant, which is a huge step.
2:19
SPEAKER_06: It allows dealers to sleep a little bit better at night.
2:21
SPEAKER_06: I've got a number of friends that own dealerships that are on it, and they said that yeah, this thing really nails it.
2:26
SPEAKER_06: And uh so we we I I just can't say enough about that program.
2:30
SPEAKER_06: It it really just is incredible.
2:32
SPEAKER_06: So there's and there's no wiggle room in it.
2:34
SPEAKER_06: And uh you'll understand why I just said that, okay?
2:37
SPEAKER_06: Because I love this clip that's coming up that we found.
2:39
SPEAKER_06: You guys know I love all these social clips, and uh, we show them here at uh CBT News, and uh I got a chuckle out of this one, but uh so let's let's let's show it now, guys.
2:50
SPEAKER_08: Alright, sir.
2:50
SPEAKER_08: So we got the price right there 49,000 plus tax on license.
2:54
SPEAKER_08: If you like that right there, just sign right there.
2:56
SPEAKER_08: And you guys you have any more wiggle room on that price?
2:59
SPEAKER_08: Honestly, yeah, follow me real quick.
3:02
SPEAKER_08: Alright, sir.
3:03
SPEAKER_08: So we're here's our wiggle room.
3:07
SPEAKER_08: So, you know, just a little bit of wiggle room here.
3:15
SPEAKER_07: Got a wiggle room.
3:16
SPEAKER_06: Yeah.
3:17
SPEAKER_06: Every single customer asks you, is there any more wiggle room?
3:19
SPEAKER_06: And they they actually provided the wiggle room.
3:22
SPEAKER_06: It's probably right next to the customer uh lounge, right?
3:25
SPEAKER_05: The wiggle room for every customer.
3:28
SPEAKER_06: That which reminds me, and many of you that are watching remember the wiggle room commercials where it had the little um it was like the gopher.
3:35
SPEAKER_04: It was a badger.
3:36
SPEAKER_04: It was a badger.
3:37
SPEAKER_06: That's right.
3:37
SPEAKER_06: It was a badger because who wanted to be badgered, right?
3:39
SPEAKER_06: At a dealership.
3:41
SPEAKER_05: He did a little wiggle thing, didn't he?
3:43
SPEAKER_05: A wiggle wiggle.
3:45
SPEAKER_06: The best.
3:46
SPEAKER_06: We got to show that.
3:47
SPEAKER_06: We'll we'll show that later, maybe.
3:49
SPEAKER_06: Are the guys quick enough to pick up another thing?
3:52
SPEAKER_04: That's right.
3:52
SPEAKER_06: Maybe it was pretty wiggle.
3:54
SPEAKER_06: That's right.
3:55
SPEAKER_06: That's awesome.
3:56
SPEAKER_04: So we do want to start today with a conversation that's airing on CBT News featuring Ken Cook and Adam Marberger.
4:02
SPEAKER_04: They cover a lot in this interview from AI and technology to profitability, leadership, and the changing customer experience.
4:10
SPEAKER_04: So, what do they say dealers should be focused on now?
4:12
SPEAKER_04: Let's take a look.
4:18
SPEAKER_03: This was just last week, and she was having a situation with a friend and she kind of went off and didn't handle it appropriately.
4:24
SPEAKER_03: And this is what I told her.
4:26
SPEAKER_03: I said, you cannot control the thing, but what you can control is how you respond over reacting to the thing.
4:36
SPEAKER_03: There's a big difference between reacting and responding.
4:39
SPEAKER_03: So it's all I always think about that.
4:40
SPEAKER_03: When something comes my way, how how do I respond to that?
4:43
SPEAKER_03: Because the response is everything.
4:45
SPEAKER_01: It's your responsibility.
4:46
SPEAKER_01: Respond is your responsibility.
4:48
SPEAKER_01: Amen.
4:48
SPEAKER_01: So amen.
4:49
SPEAKER_01: To respond positive.
4:51
SPEAKER_03: Yeah.
4:51
SPEAKER_03: Yeah, and I was just talking earlier, you know, a good mood and a bad mood, it's a decision we get to make.
4:55
SPEAKER_03: It is.
4:56
SPEAKER_03: And it takes more energy and effort to be in a bad mood than it does a good mood.
4:59
SPEAKER_03: It actually takes more work and energy to be negative than it does positive, and that's scientifically proven.
5:07
SPEAKER_03: So let's talk a little bit about, you know, what are some things right now, what are a couple challenges you're facing right now in this landscape that we're in?
5:15
SPEAKER_01: Um landscaping is I I feel the biggest challenge that is leadership, and that's why I zoned in on really focus on our younger peers coming into the to the industry.
5:28
SPEAKER_01: And so what what we did is I would hire, I would hire these guys, and they would come in, they would tell me, I've been doing it for X amount of times, and I'm like, hey, great, this guy looks great on paper.
5:38
SPEAKER_01: This this individual, I should say, looks great on paper.
5:41
SPEAKER_01: But once I got him into the store, it's like it's nowhere near what my expectation was.
5:47
SPEAKER_01: So are you seeing resumes lie sometimes?
5:50
SPEAKER_01: Oh yeah.
5:52
SPEAKER_01: It's kind of like a salesperson, right?
5:54
SPEAKER_01: When you ask them their average, what do they tell you?
5:56
SPEAKER_01: They tell you their best month ever.
5:57
SPEAKER_01: Ever.
5:58
SPEAKER_01: Well, wait, are you you can that's such your average?
6:00
SPEAKER_01: You know, just because you got, you know, you had a lucky month, you know, I want to know what you truly do day in and day out.
6:07
SPEAKER_01: So after I did that a couple times and learned, I was like, hey, this is not working.
6:12
SPEAKER_01: Okay, so we develop our plans like I want to hire most everybody internally.
6:18
SPEAKER_01: Okay, now I say almost everybody because you can't you can't talk in terms of absolute, but for the most part, I want to make sure that I'm organically growing and giving people opportunities.
6:29
SPEAKER_01: Um, because I I always hear people knock the younger generation, say this younger generation is coming in is is not good.
6:36
SPEAKER_01: I disagree.
6:37
SPEAKER_01: The great.
6:38
SPEAKER_01: There are kids.
6:38
SPEAKER_01: Yes.
6:39
SPEAKER_01: And right?
6:40
SPEAKER_01: I mean who's responsible for that?
6:42
SPEAKER_01: We are.
6:43
SPEAKER_01: So we did not do a good enough job.
6:44
SPEAKER_01: So what I feel is I gotta make sure that I'm teaching, you know, the younger generation to come up correctly.
6:51
SPEAKER_01: Because unfortunately, there's a lot of people that have failed, though.
6:54
SPEAKER_01: And it's on us.
6:54
SPEAKER_01: It's it's not it's not it's not their fault of failing.
6:57
SPEAKER_01: Now it is their fault if they continue to fail.
7:00
SPEAKER_01: Um, but it it is our it's my responsibility, it's our responsibility as leaders to make sure that we're building them up professionally as best as what we can.
7:08
SPEAKER_01: Now, it's not only professionally.
7:10
SPEAKER_01: I feel that I have to help people personally too.
7:13
SPEAKER_01: Because quite honestly, we even when I look at myself, I gotta make sure that I'm challenging myself, okay, to be number one, you know, in the best shape that I can.
7:22
SPEAKER_01: Okay, you know, I I work out five days a week, train, you know, making sure I Wow, that that's so true.
7:29
SPEAKER_06: Yeah.
7:29
SPEAKER_06: You do outlooked his uh his comment about it's your responsibility, your response is your responsibility.
7:34
SPEAKER_04: They started it off with that, which I thought was great because it really followed up with the leadership comments that they had.
7:40
SPEAKER_04: Um, but yeah, I always say, I always say it in my head, actually, my response is my responsibility.
7:44
SPEAKER_04: If something is, you know, getting under my skin or something, I'm always like my response is my responsibility.
7:50
SPEAKER_04: That's right.
7:50
SPEAKER_04: How do I want to handle this?
7:51
SPEAKER_04: How do I want to respond to this?
7:52
SPEAKER_06: But then he was touching about on about uh bringing managers into the organization or bringing you know the younger generation in uh to the organization.
8:00
SPEAKER_06: And many times you hire somebody, you think they're gonna be great, they check a lot of boxes and then all then find out uh-oh, they're not what you thought they were.
8:07
SPEAKER_06: In this industry, we do have a tendency to hire too soon and fire too late.
8:12
SPEAKER_04: Oh, in any industry, I think.
8:13
SPEAKER_04: Yeah, right.
8:14
SPEAKER_06: Especially in the car business, where we don't have if you go to work in a pharmaceutical company, um, you'll go to work and if it's in sales or it's in leadership, uh, they send you off to maybe six weeks or maybe two months of training before you ever hit a client or a doctor's office or whatever the case, whoever it is you're selling to.
8:29
SPEAKER_06: Yeah.
8:29
SPEAKER_06: In the auto industry, we have a tendency to go, all right, let's go see what that guy's made of.
8:34
SPEAKER_06: Go shadow Bobby over there.
8:36
SPEAKER_06: Right.
8:36
SPEAKER_06: Bobby's got some habits that we don't want to, you know, that we're not so proud of.
8:40
SPEAKER_06: But that's the way that we've done it in the industry, and it and it's unfortunate because dealerships in many cases can't necessarily afford to have a full training team out there.
8:50
SPEAKER_06: However, um, it's very, very expensive to throw people out that haven't been well trained on how to take care of customers or managers that don't know leadership and haven't been trained in how to lead people.
9:03
SPEAKER_06: That's right.
9:03
SPEAKER_06: That's even more expensive than if you uh for a dealer to have a you know a professional trainer either come in or on staff.
9:11
SPEAKER_04: So hire slow, fire fast.
9:12
SPEAKER_06: That's right.
9:13
SPEAKER_06: And and and make sure that that you're putting them into the proper training before you give them the job.
9:18
SPEAKER_06: Many managers that I speak to in the industry, I'll I'll ask them, how did you, you know, you went from salesperson for 10 years or five years, whatever the case might be, and you became a manager.
9:27
SPEAKER_06: Well, what training did you go through to become a manager of these 10, 15, 20 people?
9:31
SPEAKER_06: Right.
9:32
SPEAKER_06: And uh oftentimes the answer is, well, I I didn't really go to any formal training to manage people.
9:38
SPEAKER_06: I learned from the manager ahead of me that I took their job over.
9:42
SPEAKER_06: What happened to them?
9:43
SPEAKER_06: They got blown out because of lack of productivity or something they did wrong.
9:47
SPEAKER_06: Yeah.
9:47
SPEAKER_06: And it's like, wow, we're we're utili we're we're utilizing the past management team to train the future management team.
9:54
SPEAKER_06: And it's a very, it's a very tough thing.
9:56
SPEAKER_06: I've been in both situations there, both as the new sales manager coming in, didn't learn how to be a sales manager from anybody, and yet, Jim, you got the job.
10:06
SPEAKER_06: And uh we keep doing that in this industry and it and it's tough.
10:10
SPEAKER_06: I do respect those car companies out there that say, no, you're not you're not a manager until we say you're a manager.
10:16
SPEAKER_06: You're gonna go off to leadership training.
10:17
SPEAKER_06: You know, you're gonna go see Dave Anderson for a week or two and uh learn out learn how to do that.
10:22
SPEAKER_04: There's so many others.
10:23
SPEAKER_04: There's so many great, great.
10:24
SPEAKER_06: But Dave's pretty good.
10:25
SPEAKER_06: Leadership.
10:26
SPEAKER_06: Yes, he is.
10:26
SPEAKER_06: He's very good.
10:27
SPEAKER_06: And he's got a show here on the network.
10:28
SPEAKER_06: I think so.
10:29
SPEAKER_04: Check it out.
10:30
SPEAKER_06: That's exactly right.
10:31
SPEAKER_06: Lasco Ford.
10:32
SPEAKER_06: Speaking of great organizations, Lasco Ford in uh Fenton, Michigan, has landed in the top ten nationally for Ford Blue Advantage uh volume.
10:40
SPEAKER_06: And uh it's an impressive milestone, but it's not new territory for this dealership.
10:45
SPEAKER_06: These guys have been knocking the cover off the bowl for a long time.
10:48
SPEAKER_06: Jay Lasco, dealer, partner of uh Lasco Ford and dealer principal of Grand Blanc Mitsubishi, joins us live to talk about this achievement and what's happening in the used car business today.
10:58
SPEAKER_06: So, Jay, thank you so much for joining us on the show today.
11:01
SPEAKER_06: Thanks for having me.
11:02
SPEAKER_06: Sure.
11:03
SPEAKER_06: So, first and foremost, how is business at the Lasco organization?
11:07
SPEAKER_09: Business is solid.
11:09
SPEAKER_09: Um, as you obviously know, uh, you know, the Ford Blue Advantage program growing here at our store.
11:15
SPEAKER_09: Um, but overall, you know, new car sales is solid.
11:19
SPEAKER_09: Uh parts in service, knocking out of the park.
11:22
SPEAKER_09: Uh, we just got our second president's award.
11:25
SPEAKER_09: Um, we're we're really happy here at Lasco Ford.
11:27
SPEAKER_06: Wow, that's fantastic.
11:28
SPEAKER_06: Congratulations on all of that.
11:30
SPEAKER_06: Uh uh, how has the used car business changed, especially in the area of certified vehicles?
11:36
SPEAKER_06: The dealers that I talk to nationally have said that there's such much, so much more of an emphasis now on CPO vehicles in the sense that, you know, the average price of a new car is now fifty thousand dollars.
11:46
SPEAKER_06: So people are like, well, wait a minute, maybe a great CPO car is just right for our family, even though it's been, you know, a long, long time since they purchased us because they were new car customer.
11:57
SPEAKER_06: But now with uh CPOs out there, not so much, right?
12:00
SPEAKER_06: Talk to us about that.
12:01
SPEAKER_09: Yeah, I think you nailed it.
12:03
SPEAKER_09: I mean, the amount of times we've heard the word affordability in the past handful of months, uh obviously not shorthanded there.
12:09
SPEAKER_09: Um, and that's where it does fill a gap.
12:11
SPEAKER_09: I mean, I have personal experiences of customers that have been buying cars off of me me and our business uh for over 20 years that were buying new and then finally came in and showed them a payment and it just didn't fit.
12:22
SPEAKER_09: And so what do we do?
12:23
SPEAKER_09: We walked over and showed a you know certified blue oval or blue advantaged vehicle.
12:28
SPEAKER_09: And uh at first, it takes them a second because they've been buying new.
12:32
SPEAKER_09: Um, or maybe they bought used before and there's still a gap that they quick can't quite get to new.
12:38
SPEAKER_09: Um, and that's where FBA comes in, and it just it's a huge value.
12:42
SPEAKER_09: I mean, our sales staff were very, very fortunate, first of all, to have one incredible leadership, uh, two incredible sales staff with tons of tenure.
12:51
SPEAKER_09: Um we're handing out you know, five, ten, and fifteen, twenty-year uh, you know, awards here, you know, for our staff.
12:56
SPEAKER_09: But that's great.
12:57
SPEAKER_09: They've they've all been trained, as you were just talking about training.
13:00
SPEAKER_09: Um, they've mastered the program, they understand the value.
13:02
SPEAKER_09: Um, so when they sit down with a customer that's unfamiliar with a certified program, it's easy to sell FBA.
13:09
SPEAKER_09: I mean, Ford has given us the tools.
13:11
SPEAKER_09: Um, they have an excellent program as far as you know transparency with the inspection and the warranty that's included, you know, financing incentives.
13:19
SPEAKER_09: Um, it's honestly kind of an easy sale once you've mastered it and learned how to sell the value to the customer.
13:24
SPEAKER_09: So um that's why it works.
13:25
SPEAKER_06: Sure.
13:26
SPEAKER_06: What percentage of your used car uh productivity is our CPO vehicles?
13:32
SPEAKER_09: So it's uh it's slowly changed.
13:34
SPEAKER_09: Um right now I was just looking at some numbers and it's about 80%.
13:39
SPEAKER_09: Um and and that's changed because of Ford adapting and really embracing the program.
13:44
SPEAKER_09: Okay.
13:45
SPEAKER_09: They never used to have you know the blue program.
13:47
SPEAKER_09: Um they introduced the EV program.
13:50
SPEAKER_09: So they're opening up that model year gap and the mileage gap, and that's allowing more affordability as well.
13:56
SPEAKER_09: And it's allowing us.
13:57
SPEAKER_09: I remember when we used to have people going out, well, is that one certified?
14:02
SPEAKER_09: And you'd have to check.
14:03
SPEAKER_09: We're now we we make sure that we're putting a ton of money into reconditioning to make sure these represent properly.
14:09
SPEAKER_09: So it doesn't matter if it qualifies for year or miles for any of those programs and it's on our lot, it's been reconditioned properly and it's certified.
14:17
SPEAKER_09: So a customer or a salespeople can you know can be out on the lot and have confidence that nope, that's forward blue advantage, it comes with this.
14:24
SPEAKER_06: Yeah, yeah, that's fantastic.
14:25
SPEAKER_06: How how high will they let you go on mileage to certify?
14:28
SPEAKER_09: Uh you can so uh gold is six years, 80,000 miles, and then blue is 10 years 150,000 miles.
14:36
SPEAKER_09: So if you think about that, we're talking about affordability affordability.
14:39
SPEAKER_09: I mean, that really gives us some great options.
14:41
SPEAKER_06: Yeah, boy, that's for sure.
14:42
SPEAKER_04: Yeah, for sure.
14:43
SPEAKER_04: Now, Jay, how dealers acquire inventory has changed dramatically.
14:46
SPEAKER_04: Can you talk to us about how you're acquiring cars and where you're getting them from?
14:51
SPEAKER_09: Uh, yeah, sure.
14:52
SPEAKER_09: I mean, uh, you know, various channels, not just one.
14:55
SPEAKER_09: Uh, one that we embrace heavily is never missing a new car trade.
14:59
SPEAKER_09: Uh, our store can average anywhere from 100 to 125 new.
15:03
SPEAKER_09: We got all the way up to almost 200 at one point, but you know, our our goal is to continue to grow and new, and that means that you it you can put more into a trade.
15:12
SPEAKER_09: It's a great certified vehicle.
15:13
SPEAKER_09: I have in front of me I can appraise.
15:15
SPEAKER_09: We never want to miss that.
15:16
SPEAKER_09: Same thing to go in the service lane.
15:18
SPEAKER_09: Uh, you know, whether it be a uh service unsold customer that we might be able to acquire, it's huge.
15:23
SPEAKER_09: And then we have other various channels as well.
15:25
SPEAKER_09: Uh, and not trying to give a shameless plug, but my brother and I developed uh an acquisition tool that that's it's pretty amazing.
15:31
SPEAKER_09: It takes a lot of workload off of a store that needs to acquire a vehicle.
15:35
SPEAKER_09: So we're using that tool, it's helping us tremendously.
15:38
SPEAKER_06: Sure.
15:39
SPEAKER_06: Some dealers um have recently got into a little bit of hot water uh because they were advertising these CPO vehicles, and yet they would when the could when the consumer would come in, they'd say, Well, it's gonna be another$3,500 if you want us to go ahead and certify that car.
15:55
SPEAKER_06: And it was like, Well, wait a minute, what what what do you mean?
15:58
SPEAKER_06: You know, um talk to us about that.
16:00
SPEAKER_06: That's a major danger zone, right?
16:01
SPEAKER_06: You don't do anything like that, right?
16:03
SPEAKER_09: No, and that's why I told you it's so easy now that it's like if it qualifies it's certified.
16:07
SPEAKER_09: I've always, you know, not uh I mean you're not throwing anybody under the bus, but you just you look at some numbers and it's like, well, why do they have no no inventory showing under certified if they sold a hundred?
16:18
SPEAKER_09: How's that possible, right?
16:19
SPEAKER_09: Right.
16:19
SPEAKER_09: And maybe some were doing it right where they were like, well, hey, we can certify this and it costs us a lot of money and they weren't advertising it, but I still feel like you're just throwing up friction there.
16:27
SPEAKER_09: I mean, we we live on transparency here at the store, and it just that the salespeople don't want to deal with that.
16:33
SPEAKER_09: You know, they don't want to be juggling things.
16:34
SPEAKER_09: I mean, the right way to do it is if the car qualifies and you've properly reconditioned it, make it FBA and and the customer knows what to expect.
16:42
SPEAKER_06: Right, right.
16:43
SPEAKER_06: Do you have a uh split sales uh department where you've got used car salespeople and new car salespeople?
16:50
SPEAKER_09: So primarily what they focus on, yes, is split, but they are if they want to sell new cars, they have to be certified in the in new cars as well, so they can't just go sell a new car.
17:01
SPEAKER_09: Okay.
17:01
SPEAKER_09: But I do think that you know most of them, you know, have their craft and and they stick to it.
17:06
SPEAKER_09: And uh the the most amazing part is is like I can look at some of this tenured uh used car staff, you want to call it that, certified staff.
17:13
SPEAKER_09: Yeah, and they they they have stories like new car customers.
17:16
SPEAKER_09: That's what's amazing.
17:17
SPEAKER_09: Like, oh, I remember when I sold Miss Jones an escape, and she always dreamed of having an F-150, and I got her into a Ford Blue Advantage F-150, and they're posting the story and everything.
17:26
SPEAKER_09: It's it's really cool.
17:27
SPEAKER_09: It's like a mini new car department.
17:28
SPEAKER_06: No, I was gonna I was gonna say that the dealers that I've spoken to uh have said have reported back that uh the new car sales department have kind of seeped into the CPO department because of the similarities and the benefits to the consumer, and they're like, you know what, this is kind of like selling a new car.
17:46
SPEAKER_06: And uh in fact, in one case, the new car sales department, one of the salespeople there led the board on CPOs, and this is a high-volume dealership.
17:55
SPEAKER_06: So are you finding that to be the case where people are saying, especially with this affordability issue, right?
18:01
SPEAKER_09: It it is the case.
18:02
SPEAKER_09: I mean, I think that you have some amazing new car salespeople.
18:06
SPEAKER_09: Uh, we have quite a few of them selling 20 plus a month, and when they get Miss Jones back in and they're looking at what that lease payment would be, even on the same vehicle, instantly they're thinking in their head, well, I don't think she's gonna, you know, take the that walk of payment.
18:20
SPEAKER_09: I need to have a FBA vehicle ready for her.
18:23
SPEAKER_09: Yeah.
18:24
SPEAKER_09: That way I can say, well, let's look at both of these.
18:26
SPEAKER_09: We're always gonna try to sell the new.
18:28
SPEAKER_09: And, you know, if she doesn't like that payment, we're we're ready to go on a like FBA.
18:32
SPEAKER_09: And we're very lucky.
18:34
SPEAKER_09: I mean, my my brother is kind of the mastermind behind it all of acquisition and pricing and everything.
18:39
SPEAKER_09: We have such a good selection of vehicle out there.
18:43
SPEAKER_09: I think the new car department's confident that they have something that would fit.
18:46
SPEAKER_09: So I think that that that's that's a big advantage of being a new car person, you know, salesperson here.
18:51
SPEAKER_06: That's right, that's right.
18:52
SPEAKER_06: Um, I'll just ask you this because I got you here and you're and you're a high volume dealer and you're a great guy.
18:57
SPEAKER_06: Um, what's your take on the whole Chinese thing?
19:00
SPEAKER_06: When you when you hear about the possibility of Chinese vehicles, and now the president has come out and said, Well, I'm open to the idea, as long as they build a factory here.
19:08
SPEAKER_06: What what's your take as a dealer there?
19:10
SPEAKER_09: I mean, I kind of liked where Jim Farley was, kind of standing behind that uh, you know, don't don't let it in.
19:15
SPEAKER_06: Yeah.
19:16
SPEAKER_09: Um, but uh listen, if if they're gonna they're gonna create a way where it protects the United States and its citizens and they can do proper business here and it employs people and it's the right right business model, sure.
19:29
SPEAKER_09: Um it's gonna be tough for a lot of people to argue that.
19:32
SPEAKER_09: Yeah.
19:32
SPEAKER_09: Um I mean there's already plenty of other Chinese products here.
19:35
SPEAKER_09: So um as a Ford dealer, I mean I bleed blue.
19:38
SPEAKER_09: I'd I'd rather there not be another another OEM in the United States.
19:41
SPEAKER_09: But if there's going to be, we're all gonna learn to live with it.
19:44
SPEAKER_09: We're all gonna learn to compete with it.
19:45
SPEAKER_09: Sure.
19:46
SPEAKER_09: And uh, you know, if I take Ford, we've got a great product and a great value.
19:50
SPEAKER_09: I think we could compete if we needed to.
19:52
SPEAKER_06: That's the attitude I'm talking about right there.
19:54
SPEAKER_04: So many of your.
19:56
SPEAKER_04: I'm so glad you asked him that question because he answered it so beautifully.
19:59
SPEAKER_06: Exactly right.
20:00
SPEAKER_06: No, so many of your colleagues, though, you've seen them on our shows and other shows where they're like, no, don't let him in, don't let him in.
20:05
SPEAKER_06: I say let him in under a real reserve number, maybe a couple of hundred thousand vehicles.
20:10
SPEAKER_06: Not gonna kill us in the United States when you're at 16 million plus for a SAR.
20:15
SPEAKER_06: And uh, but I think it applies just enough pressure to those OEMs uh here in the States to say, hey, step it up, let's go.
20:23
SPEAKER_06: You know, it's often it everybody refers to the Chinese government say, well, they own half of these car companies and therefore they're gonna be able to sell their products for a lot less.
20:31
SPEAKER_06: That's one issue, but the other issue is the styling and the technology and the length of their batteries.
20:37
SPEAKER_06: Okay?
20:38
SPEAKER_06: That's a different, that's a whole different issue.
20:40
SPEAKER_06: We've got to compete on that international level to say, hey, you know what, for forget the price of the car.
20:46
SPEAKER_06: Let's say it's the same price as American-made cars.
20:49
SPEAKER_06: How come our batteries aren't lasting as long?
20:51
SPEAKER_06: How come the technology isn't as great?
20:53
SPEAKER_06: That's not a government situation.
20:55
SPEAKER_06: That is an innovation from the OEMs, I say.
20:58
SPEAKER_06: What what do you agree?
21:00
SPEAKER_09: Yeah, no, put push to limits, right?
21:02
SPEAKER_09: Yeah, I think that it gets everybody's, you know, mind just turning right away.
21:06
SPEAKER_09: I mean, obviously you hear the concern from the OEMs, um, but you you know for a fact that it's put them hard to work, whether it be a sleepless night or not, that they're trying to think ahead now.
21:16
SPEAKER_09: Yeah.
21:16
SPEAKER_09: And you know, I I really do look back at, you know, like, hey, F-150 leadership for how many years now?
21:21
SPEAKER_09: Uh it's if you have loyal customers and you have a great product, I mean, you you're you're gonna compete easily, yeah.
21:29
SPEAKER_09: I agree.
21:29
SPEAKER_09: You do have to stay ahead of it.
21:30
SPEAKER_09: You can't be sleeping, you can't get lazy and and and think that it's just gonna be a walk in the park.
21:35
SPEAKER_06: That's right.
21:35
SPEAKER_06: I agree.
21:36
SPEAKER_06: Wow.
21:37
SPEAKER_06: Glad we brought you on, Jay.
21:39
SPEAKER_05: Glad to be here now.
21:40
SPEAKER_05: Yes.
21:40
SPEAKER_06: You're gonna be our go-to now for all things Chinese vehicles.
21:43
SPEAKER_05: He's like, why did I start here?
21:45
SPEAKER_06: Yeah, we well, because Farley's gonna call him and go, dude, I thought you were a Ford dealer.
21:49
SPEAKER_06: Well, you're killing me over here.
21:50
SPEAKER_06: No, we appreciate your candy comments about that.
21:53
SPEAKER_06: And by the way, congratulations on all the accolades there in terms of the CPO vehicles.
21:57
SPEAKER_06: I think that there's a lot of dealers out there that.
22:00
SPEAKER_06: Um, you know, uh have seen the light on CPO and certainly with what Ford's program has has done and expanding the program as well.
22:10
SPEAKER_06: There was a time in the business when I was in it that if a car had over 50,000, 60,000 miles on it, boop, went to the auction.
22:16
SPEAKER_06: But nowadays the cars are so well built and the technology so incredible that if a car's got 80,000, 85,000, even 90,000 miles on it, there's still a lot, there's still a lot of life left in that car, right?
22:28
SPEAKER_09: That's right.
22:28
SPEAKER_09: And you can back it up.
22:29
SPEAKER_09: I mean, that that's the thing.
22:30
SPEAKER_09: Ford has given us the tools and the fact that we can certify other makes under their FBA now.
22:36
SPEAKER_09: So I'm not scared to put more into a Chevy Silverado and sell them an F-150 because guess what?
22:42
SPEAKER_09: There is a Chevy Silverado buyer out there looking for that value too, and they can certify it, and it's stood you know stand behind uh stood behind by uh an OEM, and it's just it just works from all angles.
22:52
SPEAKER_06: That's right.
22:53
SPEAKER_06: Yeah, not to say that the Chevy Silverado is better than the F-150, because we know it's probably not, right?
22:58
SPEAKER_09: Coming from a lot of employees and retirees, so hey, we can sell that market too.
23:06
SPEAKER_06: That's right.
23:07
SPEAKER_06: Spoken like a truth for you.
23:08
SPEAKER_06: He's he bleeds blue, he said.
23:10
SPEAKER_06: There you go.
23:11
SPEAKER_06: Jay Lasco, thank you so much for joining us on the show.
23:13
SPEAKER_06: Very much appreciate it.
23:14
SPEAKER_06: Love to do a follow-up with you, especially on Chinese vehicles.
23:19
SPEAKER_09: Appreciate it as well.
23:20
SPEAKER_09: That's right.
23:20
SPEAKER_06: Congrats on all your success.
23:22
SPEAKER_06: Thank you.
23:23
SPEAKER_06: All right, man.
23:23
SPEAKER_06: Thanks.
23:24
SPEAKER_06: What a great guy.
23:26
SPEAKER_06: That's right.
23:27
SPEAKER_05: Great, great guy.
23:28
SPEAKER_06: You uh I agree with the question at the end.
23:31
SPEAKER_06: I know, I know.
23:32
SPEAKER_06: I had to.
23:32
SPEAKER_06: He's a right.
23:33
SPEAKER_06: He's like, oh my god, here's a here's a high-volume dealer that's uh especially in the state that he's doing business in.
23:38
SPEAKER_06: It's like, what's your take on this?
23:40
SPEAKER_06: And he spoke candidly about it.
23:42
SPEAKER_06: So I agree with him.
23:43
SPEAKER_04: So we have a couple minutes before our next guest joins us.
23:47
SPEAKER_04: So a couple things I wanted to mention today is the start of Hispanic Heritage Month.
23:52
SPEAKER_04: So we'd like to take this time to recognize all those dealers, employees, leaders that are um helping to contribute to this wonderful industry.
24:02
SPEAKER_04: Yeah, no question about it.
24:03
SPEAKER_06: There is without a doubt.
24:04
SPEAKER_04: Yeah, for sure.
24:05
SPEAKER_04: Also happens to be Ovarian Cancer Awareness Month.
24:08
SPEAKER_04: I wear this.
24:09
SPEAKER_06: What are you pointing at?
24:10
SPEAKER_04: I'm actually wearing this band.
24:11
SPEAKER_04: I wear it every day in September, every single year.
24:13
SPEAKER_04: So for those women that are watching and for those men that have women that they love in their lives, make sure they talk to the doctors about ovarian cancer awareness because I lost my mom to that and I'm very passionate about it.
24:25
SPEAKER_04: And um it's a real deal.
24:26
SPEAKER_04: It's a real deal.
24:27
SPEAKER_06: So and the color, is that the color?
24:30
SPEAKER_04: Teal is the color.
24:30
SPEAKER_04: So this is a little teal band if you can't see it, but trying to put it in an area where you can.
24:35
SPEAKER_04: Put your finger up in the air.
24:37
SPEAKER_04: Right, right, right.
24:39
SPEAKER_06: No question.
24:39
SPEAKER_06: But anyway, all right.
24:41
SPEAKER_04: Yeah.
24:41
SPEAKER_06: So so you know, gas prices um continue to be front and center, right, Bridge?
24:46
SPEAKER_06: I mean, we how how often do we talk about does everybody talk about gas prices?
24:50
SPEAKER_06: I mean, as we just filled up this morning on the way to on the way to uh to the studio, and you know, you all of a sudden you're like, okay, eighty, ninety dollars.
24:57
SPEAKER_06: This was only sixty dollars not long ago.
25:00
SPEAKER_06: And so this is front and center for everybody, the president, the the their entire cabinet, they're all out on the street talking about you know gas prices and uh the fact that they're and then the president said they're all gonna come down after the election.
25:14
SPEAKER_06: Hey, imagine that.
25:15
SPEAKER_06: Yeah, some reason they're not coming down now, but after the election.
25:19
SPEAKER_06: All right, well, we will we will see about that.
25:21
SPEAKER_06: That's right, very interesting.
25:22
SPEAKER_04: Joining us today is oil and gas expert of Pecos Energy, Ray RT Treveño, the third.
25:30
SPEAKER_04: And as a second generation oil man, RT has worked in a variety of positions from field hand to director.
25:37
SPEAKER_04: In addition to working within the oil and gas industry, RT is the host of the Crude Truth Podcast.
25:43
SPEAKER_04: I love it.
25:44
SPEAKER_04: He joins us live to walk us through what we need to know.
25:47
SPEAKER_04: That's right.
25:48
SPEAKER_04: So, welcome to the show.
25:51
SPEAKER_02: Oh, thank you guys so much for having me on.
25:53
SPEAKER_02: Very excited to be here.
25:55
SPEAKER_04: That's right.
25:55
SPEAKER_04: We're excited to talk to you.
25:56
SPEAKER_04: So let's start.
25:57
SPEAKER_04: What is actually happening in the oil and gas market right now?
26:02
SPEAKER_02: Well, right now, what we're seeing is a true fluctuation in the exact in the markets itself.
26:07
SPEAKER_02: Uh, we are seeing a difference in the price of physical oil versus paper oil.
26:13
SPEAKER_02: And what that really means is the physical price is what the tankers are charger in refineries in places like here in Texas, along with other places around the Gulf of America.
26:24
SPEAKER_02: And the paper price is what Wall Street deems is the value of oil.
26:29
SPEAKER_02: Okay.
26:30
SPEAKER_02: And right now the physical price is about$30 higher.
26:34
SPEAKER_06: $30 higher.
26:35
SPEAKER_06: Well, that that's pretty strong, right?
26:36
SPEAKER_06: Uh when was the last time we saw numbers like that?
26:40
SPEAKER_02: Uh, it has definitely been several years.
26:42
SPEAKER_02: Uh, last time uh that comes to my mind at these sustained numbers was during uh President Biden's term.
26:49
SPEAKER_02: Keep in mind that we've only been at$100 oil for one week, and total during President Trump's terms combined, only four weeks.
26:59
SPEAKER_02: Under President Biden, we were at$100 oil for three months straight.
27:03
SPEAKER_07: Oh wow.
27:04
SPEAKER_02: So I don't think this president's kidding when he says that after the elections we'll see a lower price.
27:10
SPEAKER_06: When you say that after the election we'll see a lower price, what is the correlation between the election and a lower price in oil?
27:17
SPEAKER_02: Great question.
27:19
SPEAKER_02: Uh up until last week, the markets continued to predict every day that the Iranian conflict was over.
27:26
SPEAKER_02: Now that we've had some more scuttle over the last week and a half, that has now gone up in the price.
27:33
SPEAKER_02: And since um the markets are now seeing that the Iranian conflict is not over, the market is now responding properly.
27:41
SPEAKER_02: All that being said, what we are hearing is that all of the Iranian diplomats that actually are negotiating are actually hoping for a different outcome of the midterms to where they might be able to negotiate with different people or have this president be stalled on what he's doing.
28:01
SPEAKER_06: Ah, okay.
28:02
SPEAKER_06: Didn't didn't didn't see it that way.
28:04
SPEAKER_06: All right, great.
28:05
SPEAKER_06: So uh the Strait of Harmoos has become a huge focus.
28:08
SPEAKER_06: Obviously, every day we're is it open?
28:10
SPEAKER_06: Is it closed?
28:10
SPEAKER_06: Is it open?
28:11
SPEAKER_06: Is it closed?
28:11
SPEAKER_06: What's getting through?
28:12
SPEAKER_06: So, how much oil is currently getting through the strait?
28:16
SPEAKER_02: Yes, as of right now, uh we are still at less than 50% of what was going through the straits before the Iranian conflict started.
28:26
SPEAKER_02: Now, that being said, the Strait of Hormouth is 100% open, and it has actually been fully open for the last several months.
28:37
SPEAKER_02: Oh.
28:37
SPEAKER_02: What we're seeing is tankers being charged six times the amount of insurance that they normally would take.
28:46
SPEAKER_02: Places like Lloyd's of London, that really deal a lot in oil and gas, uh really overcharged, in my opinion, that it is my opinion, tankers getting through the Strait of Formouth with the insurance to where these tankers couldn't afford to get through the Strait of Formouth.
29:04
SPEAKER_02: But right now, we're not even really concerned about the Strait of Formouth, and I'm gonna butcher it, guys, but it's really the Strait of Bazaar, uh Badazar, excuse me for saying that wrong, uh, on the other side of Saudi Arabia that we're watching because the Saudi Arabia pipeline has been disrupted in the last several days, and that strait is now being compromised.
29:26
SPEAKER_02: And I believe it was Goldman Sachs who said that if the Strait of Badazar gets compromised, we could see$150 to$200 oil.
29:35
SPEAKER_06: Wow.
29:36
SPEAKER_06: And what caused that that uh that interruption?
29:40
SPEAKER_02: Um, well, what's caused that interruption is two things.
29:44
SPEAKER_02: One, it has shown how not important the Strait of Vermouth is going to become to the world global oil supply.
29:52
SPEAKER_02: Uh, this pipeline had been built over several years in preparation of something like this to happen.
29:59
SPEAKER_02: And uh the other strait there on the other side of Saudi Arabia does have more flow coming through it right now.
30:06
SPEAKER_02: So that is where a lot more concern is coming through at this time.
30:09
SPEAKER_02: And by flow, I mean more tankers flowing through the strait.
30:12
SPEAKER_06: So we might get have a double whammy on our hands here, right?
30:16
SPEAKER_06: Which will drive that higher.
30:18
SPEAKER_02: Yes, unfortunately, that's where they come up with these predictions of 150 to 200 oil.
30:23
SPEAKER_02: Yeah, as an oil man myself, I do not hope that we get uh anywhere near this.
30:28
SPEAKER_02: Don't get me wrong, a hundred dollar oil I know the nation can handle, um, but$120 or more would just be too high.
30:35
SPEAKER_06: Yeah, for sure.
30:36
SPEAKER_04: If if the war ended today, how long would it take for prices to come back down?
30:42
SPEAKER_02: That's a great question.
30:43
SPEAKER_02: If we were able to get the war over today, uh get Venezuelan oil up to full production, it would still take three to six months.
30:53
SPEAKER_02: So that being said, we're looking at anywhere between uh six to eighteen months to get back to normal.
31:01
SPEAKER_02: That being said, uh, it wouldn't take as long to get gasoline prices back down.
31:07
SPEAKER_06: Interesting.
31:08
SPEAKER_02: Okay.
31:09
SPEAKER_06: Yeah.
31:09
SPEAKER_06: And what are you what are you watching most closely over the next few weeks or months right now?
31:14
SPEAKER_06: What I guess you got two straights to keep your eye on, but what else are you keeping your eye on?
31:20
SPEAKER_02: Well, we're definitely right now what we're watching is uh the elections across the United States.
31:24
SPEAKER_02: We need smart policy, we need smart regulations that allow affordable, reliable, and abundant energy to thrive no matter what kind of energy source it is.
31:36
SPEAKER_02: Because what a lot of people don't realize is it's probably natural gas, oil, and or nuclear power when you actually turn on your electricity.
31:46
SPEAKER_02: That's what's creating the electricity.
31:48
SPEAKER_02: Right.
31:48
SPEAKER_02: So we're watching that.
31:49
SPEAKER_02: But also, as an independent oil and gas company, yes, we are watching what the majors do over the next several months.
31:58
SPEAKER_02: And over this year, what us independents like Apeco Synergy and the majors like ExxonMobil and Chevron have continued to do is something called capital discipline.
32:09
SPEAKER_02: If you guys have noticed, over the last several months, as oil has flirted with$100 oil before, um, nobody has gone out and truly drill baby drilled in the sense of we're gonna go lease out six drilling rigs and just start drilling like there's no tomorrow.
32:26
SPEAKER_06: Right.
32:26
SPEAKER_02: What we're doing now is staying packed with our exact production that we have and growing it methodically rather than just punching a bunch of holes in the ground, making a quick profit at$130 oil, and then crashing the oil prices back down to$50, which that would also hurt the American public.
32:46
SPEAKER_06: Okay.
32:47
SPEAKER_06: And what about Venezuela?
32:48
SPEAKER_06: What role does that play in all of this?
32:53
SPEAKER_02: Venezuelan oil is going to play a very important role for American security in the long run.
32:58
SPEAKER_02: Our strategic petroleum reserves, which are really used for major disasters and disasters that we don't even comprehend yet, um, is designed for that type of situation.
33:11
SPEAKER_02: However, during the Biden administration, it was depleted so much that we are at critical levels that we haven't seen this low since the 1980s.
33:22
SPEAKER_02: So what this Venezuelan oil is going to do is be able to fill up the strategic petroleum reserve at a great price.
33:31
SPEAKER_02: And keep in mind, ladies and gentlemen, that during the last president term, uh President Trump's term at the end of 2020, he asked Congress, which was a Democrat-led Congress, to fill up the petroleum reserves at$25 oil.
33:47
SPEAKER_02: They shut him down and said, no, we're not doing that.
33:50
SPEAKER_02: Okay.
33:50
SPEAKER_02: So now we're going to be able to get cheaper oil from a reserve that we control.
33:58
SPEAKER_02: And as I say control, guys, we now own 65 billion barrels of Venezuelan oil, which is why in the last couple of days, Chevron has announced an$18 billion investment in Venezuela to bring that oil production back up.
34:16
SPEAKER_02: If anybody ever wanted to see what communism and socialism really looks like, go look at the business of oil in Venezuela and how dilapidated it's become over the last 30 years.
34:28
SPEAKER_02: Because it's going to take billions of dollars to get us from less than a million barrels of oil a day to three million barrels of oil a day.
34:35
SPEAKER_06: Yeah.
34:35
SPEAKER_06: What do you say to the to the person that says, well, it sounds like we're trying to fix a that the president is trying to fix a problem that he's started.
34:43
SPEAKER_06: I mean, it's like we're we talk a lot about in the news, hey, we're gonna get, you know, he he wants to take credit for bringing the price of oil back down to before when the war started.
34:53
SPEAKER_06: And it was like, well, it was kind of you that started the war to begin with, wasn't it?
34:58
SPEAKER_02: Uh, you know, that's a great question.
35:00
SPEAKER_02: And I look at this as something that Iran started in the 1970s with the uh Haases scenario, and when OPEC took over as being the number one oil producer and supplier for the world.
35:14
SPEAKER_02: Okay, and the Strait of Hormouth has been a contention point for 50 years.
35:19
SPEAKER_02: Yeah, and Iran has always been the one to threaten shutting down that strait to bring us to higher oil prices.
35:28
SPEAKER_02: What this president has done is called their bluff on it and has decimated uh basically their entire uh, you know, uh has decimated their entire uh military, excuse me.
35:41
SPEAKER_02: And so I would say that this was started in the 1970s, and we now have a president that is being tough through action during this.
35:50
SPEAKER_02: And yes, once this conflict is over, the little bullying in the Middle East will not be a problem anymore.
35:57
SPEAKER_02: And keep in mind also that Venezuela is a original founding member of OPEC, the uh organization of petroleum exporting countries.
36:06
SPEAKER_02: Yeah, and in the 1970s, OPEC became more powerful than the United States in oil production and oil distribution.
36:15
SPEAKER_02: Yeah, so with Venezuelan oil now being basically under the United States control, Cutter, I believe it was no UAE, uh removed themselves from um OPEC here in the last two months.
36:27
SPEAKER_02: Cutter is looking at doing it, and so is uh Iraq, that OPEC is falling apart, and the United States is once again on its way to being becoming the energy leader in the world.
36:40
SPEAKER_06: Yeah, I it's I think it's uh confusing to a lot of people that the average American hears that we are uh producing all of our own oil, and and therefore, if that is the case, then why is gas prices what they are today if we've got an overabundance?
36:55
SPEAKER_06: In fact, we're exporting oil and gas uh out of the country.
36:59
SPEAKER_06: What walk us through that if you can in our final moments together.
37:04
SPEAKER_02: Yes, yes, it uh if I if I keep going, give me a heads up.
37:07
SPEAKER_02: Uh that is a very full question.
37:09
SPEAKER_02: So we produce almost 14 million barrels of oil a day.
37:14
SPEAKER_02: And I'm proud to say that the great state of Texas does 40 percent uh over 45 percent of that production.
37:20
SPEAKER_02: Uh that being said, as a country, we consume 21 million barrels of oil a day.
37:28
SPEAKER_02: So we still have to have outside oil production if we actually were able to use that 14 million barrels.
37:36
SPEAKER_02: Now, that being said, the second part of this question why are gasoline prices so high?
37:41
SPEAKER_02: We only have 25 percent refining capacity to process American oil, that sweet crude or sweet Texas tea as we like to call it.
37:52
SPEAKER_02: The 75 percent actually um process all the crude oil like from Saudi Arabia, from Venezuela, even from Russia.
38:01
SPEAKER_02: And so that is why uh this president is making such a push to scale back regulations in a smart way to open up and build new refineries that can actually process American oil.
38:15
SPEAKER_02: Here in Texas, we're actually building the first refinery right now, and it will be a 100% uh processing plant for American oil.
38:24
SPEAKER_02: The other reason why gas prices are so high is because of the lack of refineries.
38:30
SPEAKER_02: On the West Coast, there are five to seven refineries slated to be closed.
38:36
SPEAKER_02: They've already closed three or four, and the Northeast is really anti-refinery.
38:42
SPEAKER_02: So we that is a problem.
38:43
SPEAKER_02: The other thing is, don't get me wrong, Russia uh with Ukraine bombing the Russian refineries, uh, Russia's the second largest distributor of refined products like diesel and gasoline for the world.
38:56
SPEAKER_02: So right now we are producing at 97% capacity and at full capacity for diesel and gasoline.
39:03
SPEAKER_02: So if we actually want to produce more gasoline to bring down the cost, or excuse me, if we wanted to produce more diesel to bring down the cost of diesel and transportation cost, we would then see a skyrocketing price in gasoline because we're already at full capacity for both, and transitioning would actually hurt the other product.
39:25
SPEAKER_06: Wow.
39:25
SPEAKER_06: That's that's it's so in it's all so involved.
39:28
SPEAKER_06: It really is.
39:28
SPEAKER_06: It's amazing.
39:29
SPEAKER_04: And thank you for putting some clarity on this very important discussion.
39:32
SPEAKER_06: Yeah, because you hear about, you know, and the president will get on and say we're producing, we don't even need all this outside oil and what have you.
39:38
SPEAKER_06: It's like, well, then why are gas prices so high?
39:40
SPEAKER_04: You know, if we can produce this, but you broke it down for us.
39:42
SPEAKER_04: We appreciate that.
39:43
SPEAKER_06: And by the way, from a refinery standpoint, it seems pretty antiquated.
39:46
SPEAKER_06: Why why do we wait so long to build our own refineries for this stuff?
39:51
SPEAKER_02: Uh the easiest question uh to answer is that it's a due to bad policy.
39:55
SPEAKER_02: Yeah, you look at where policy has been over the 15 years, and oil and gas itself needs over a trillion, that's with the T, guys, trillion dollars of investment to really get that price between$70 to$80,$75 to$85 oil for the long term.
40:11
SPEAKER_02: Again, we haven't built a new refinery in 50 years.
40:14
SPEAKER_02: This president has just opened up, uh uh has uh commissioned to open up or reuse, I believe it's five nuclear facilities.
40:22
SPEAKER_02: I was on, I I host that show, The Crude Truth, and I had Grace Stankey who was Miss America 2023, who's a huge nuclear advocate, talking about all the great things going on with nuclear right now.
40:35
SPEAKER_02: So this president is changing these policies and removing red tape so that we can become more self-efficient again in the United States.
40:44
SPEAKER_06: Wow, that's fantastic.
40:45
SPEAKER_06: That's great.
40:46
SPEAKER_04: RT, thank you so much for all the information.
40:49
SPEAKER_04: I really appreciate being here today.
40:50
SPEAKER_06: Yeah.
40:51
SPEAKER_06: Yeah, absolutely.
40:52
SPEAKER_02: Well, thank you, thank you guys so much.
40:54
SPEAKER_02: And if anybody has any other questions, they can go to Pecosinfo.com and I'd be more than happy to help them out and answer any more questions.
41:00
SPEAKER_02: Thank you guys for the opportunity.
41:02
SPEAKER_06: Absolutely.
41:02
SPEAKER_06: One more time.
41:02
SPEAKER_06: What's the name of your podcast for our listeners?
41:05
SPEAKER_02: Yeah, it's called The Crude Truth.
41:07
SPEAKER_02: And obviously, it's got a more thanks cake to it.
41:10
SPEAKER_06: I love it.
41:10
SPEAKER_06: There you go.
41:11
SPEAKER_06: We're showing her right now on the screen.
41:12
SPEAKER_06: It's awesome.
41:13
SPEAKER_06: Well, thank you so much.
41:16
SPEAKER_06: Thank you guys.
41:16
SPEAKER_06: Have a good one.
41:17
SPEAKER_06: You too.
41:17
SPEAKER_06: Take care.
41:19
SPEAKER_06: Wow, the crude truth.
41:20
SPEAKER_04: The crude truth.
41:21
SPEAKER_04: He broke it down though in a way that I think many of us needed to hear because I know.
41:26
SPEAKER_04: You know, no matter what side you're listening to, it's end.
41:29
SPEAKER_06: Yeah.
41:30
SPEAKER_06: That's right.
41:30
SPEAKER_06: Well, you know what I'm thinking?
41:31
SPEAKER_06: I'm thinking that we all contribute our$5,000 check.
41:35
SPEAKER_06: Oh, here we go.
41:37
SPEAKER_06: No, it's supposed to be like$1.3 trillion.
41:40
SPEAKER_05: Get our T back on here.
41:41
SPEAKER_05: Let's talk about this.
41:44
SPEAKER_06: If we forfeited the$5,000 check,$10,000 between you and I, we could pay the trillion dollars that we need for the refinery.
41:51
SPEAKER_05: We could.
41:52
SPEAKER_06: That's what I'm that's that's got my vote.
41:54
SPEAKER_05: We could.
41:54
SPEAKER_06: Anyway.
41:55
SPEAKER_06: Anyway.
41:56
SPEAKER_06: Trump never listens to our show.
41:57
SPEAKER_06: Maybe he does.
41:58
SPEAKER_06: I don't know.
42:00
SPEAKER_04: Maybe.
42:01
SPEAKER_06: Who knows?
42:03
SPEAKER_04: Well, thank you all for joining us.
42:04
SPEAKER_04: If you would like to get more information, deliver straight to your mailbox every day, twice a day.
42:09
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42:14
SPEAKER_06: That's right.
42:14
SPEAKER_04: Yep.
42:14
SPEAKER_04: And you won't miss a live show that way either.
42:16
SPEAKER_06: No, don't miss a live show.
42:18
SPEAKER_06: Follow us, let us know what we're doing, what you like about what we're doing, and what you don't like about what we're doing.
42:24
SPEAKER_06: We love the comments.
42:26
SPEAKER_06: Yes, that's exactly right.
42:27
SPEAKER_04: But thanks again for joining us today.
42:28
SPEAKER_04: We'll see you right back here again tomorrow at noon Eastern.
42:31
SPEAKER_06: Make it a great day.