The barrage of utter BS coming from the "C suites" of oil and gas companies during the current downturn in prices had me thinking... Why do they do this? Why do they spew this garbage to any and every market news outlet they can? I think I have the answer. Stay with me for a bit.

In 2005, "Thank You for Smoking" was released on the big screen. It was/is a satirical comedy about a Lobbyist/PR Man/Chief Spokesman for "Big Tobacco" named Nick Nalyor. It aslo briefly loops in similar advocated for the gun and alcohol industry, All three together jokingly refer to themselves as the MOD (merchants of death) Squad. It's a pretty good movie if you've got a few hours to kill.

Nick is smooth, I mean real smooth. The kind of guy that could steal your wife away from you at your wedding and make you feel excited you paid for their getaway uber. Aside from his spokesman role, he also runs a think tank called the "Academy of Tobacco Studies" which makes knowingly fringe claims about the safety of cigarettes rooted in massaged numbers and quasi "experts" testimonies. In the movie, Nick is being profiled by a young beautiful journalist (Katie Holmes) about his advocacy and how he can knowingly spread the falsehoods of the reports generated by his organization, In a moment of weakness, he presents her with the truth. I must insert here that he only does this because she seduces him. I think we all know the temptations of a beautiful woman can make one do crazy things. Just prior to "sealing the deal", Nick admits the truth. He says "Everyone has a mortgage to pay". They do it for the money.

How does this fit into original question of how the oil and gas executives can spout the bs they do? It's essentially the same, they do it for the money. If any one of them were to broadcast publicly the truth that their oil/gas company is severely underwater with no real chance to reach the surface, they'd be fired or acquired. Either of which would put an end to the compensation (save a buyout package), the perks and the company sponsored private planes. Take for example a hall of fame promoter, Mr. S. Sheffield who in the 2015 collapse touted his companies sub $10 "lifting costs" allowed them to make good margins below $30. Fast forward to today, when he's not the head of one of America's largest independent producers, and the tone has changed to "these $60 +/- prices are unsustainable". Today's execs have an idea their carefully crafted accounting metrics, over-simplified technical jargon and complete horse manure economics are just that, horse manure, but the truth and its consequences are less than desirable. They broadcast to pandering click bait chasing "journalists" and poof, the company, in the eyes of the ignorant John Q. Public, is on solid ground poised for continued growth and free cash flow from heaven.

Always keep in mind that many of today's oil and gas execs don't know the difference between a draw works and a draw by numbers. I just hope my ORRI's from coyote hills hold out a little longer. DPlainview'sLandman out.