With the 2024 presidential election just five months away, Verde Clean Fuels CEO Ernie Miller joins Asking for a Trend to discuss how the company is preparing for the road ahead as Donald Trump and Joe Biden go head-to-head on contrasting energy agendas.

"The upcoming election is interesting as it comes, but I don't see that there's going to be a lot of change regulatory-wise that's going to affect our business," Miller says. He explains that the business is a long-term play: "There are benefits with what we do for oil and gas producers beyond the energy transition and so a change in administration is not really going to change this for us."

As for the company's future, Miller points to multiple opportunities in the Permian Basin and across the US. He adds, "To me, what we do in the Permian Basin on this first really can be looked at as a case study for what can be done globally."

For more expert insight and the latest market action, click here to watch this full episode of Asking for a Trend.

This post was written by Melanie Riehl

Video Transcript

Well, believe it or not as of today, we are exactly five months from a presidential election.

It's coming on Tuesday, November 5th, voters will be faced with a choice giving President Joe Biden four more years to continue the country's transition to clean energy or to bring back Donald Trump's more pro big oil policies.

Joining us.

Now with a look at the energy landscape is Ernie Miller, Verde Clean Fuels, CEO.

Thanks for being here, Ernie, thank you.

Good to be here.

So you guys work on developing sort of alternatives to gasoline specifically and on types of fuels.

Um And so I wanted to get your perspective a lot.

Maybe I'll ask you in a little bit if you would think about listing on a Texas stock exchange because you guys are based in Texas, right?

But we'll get to that later because I, I am curious your perspective on leading up to this election where kind of we are in this energy transition and how pivotal the election is gonna be for that.

Julie uh Verde Clean Field focuses on on we make gasoline and uh and we make gasoline from natural gas that's either uh flared or otherwise disadvantaged, either physically or economically stranded.

Um, and, and, and so we're, we're helping producers solve a AAA problem with associated natural gas that allows them to, to produce their oil more, more efficiently and, you know, uh, uh the upcoming election is, is, is interesting as it comes, but I don't see that, that there's gonna be a lot of change, um, regulatory wise, it's gonna affect our, our business.

We, this is a, this is a long term play.

There's uh there are benefits with what we do for oil and gas producers beyond uh beyond energy transition.

And um and, and so uh uh a change in administration is not really gonna change this for, do you guys get any kind of incentives as associated with our ira or else wise with what you do when, when we use natural gas as a feedstock like we're doing in the Permian Basin with Diamondback energy.

We do not.

So we, we compete heads up with traditional refining and um and, and we provide producers like diamond back a a, an, an alternative pathway to monetize natural gas, which in the Permian Basin is, is often no zero or even negative value.

Um How does it get straight?

It, it, it's a by product of what them getting oil out of the right?

It's associated natural gas.

So, so in many basins throughout the, throughout the world, oil production is accompanied by a certain out of natural gas.

And when the infrastructure is either not there to get that gas to market or is constrained so that not all of it can get to market, you are naturally constraining your oil production and the oil is going to drive the economics on these developments.

And so the inability to move natural gas becomes a real problem for oil producers.

And it's also to go back to energy transition.

Most of these companies are trying to not flare natural gas because it is not great for um climate change, et cetera.

And also they're incentivized to not to, to figure out something else to do with that.

Um So how much are you guys producing through this method?

And, and sort of like if I'm driving a car around the country, what's the likelihood that I'm, I'm using gasoline that's been produced in this?

Well, the, our, the, the, the Permian Basin plant that we're doing with Diamondback is our, is our first commercial facility.

And so the what we will do there is take approximately 34 million cubic feet of natural gas and produce in round numbers about 3000 barrels of gasoline a day.

And uh you know, there, there, we see opportunities, we see multiple opportunities in the Permian Basin, but uh we, we see great opportunities for us in other producing basins here in the US and, and then uh stranded or associated natural gas globally is a, is a real problem that we can, we can address, got you.

And so what's the sort of growth plan for you guys?

Well, uh like I say, we've, we've got multiple opportunities in the, in the Permian basin and then, and then several opportunities uh across the us.

To me, what we do in the permanent basin on this first, on this first plant is really can be looked at as for, as a case study for what can be done globally.

If you know, if you think about the the African continent, for example, there are billions of cubic feet of gas that are flared every year in uh in, in Africa and usually in places that have no refined, no refining capacity.

So they're flaring natural gas on the one hand, and they're importing refined products at huge premium.

On, on the other hand, when that natural gas could be a resource that could, that could give them a, you know, a, a fair bit of their refined product need.

All right now, I'm gonna throw you the curveball that I alluded to because we just heard Rick talking about this Texas stock exchange that is raising money.

Would I mean, would you guys, I mean, what would be the uh I I'm just trying to get some insight into why people would want to list on various exchanges.

Would a local exchange hold some allure?

You know, it's, that's an interesting question.

We're, we are we're traded on NASDAQ and uh very happily traded on NASDAQ.

But Texas exchange is, is, is an interesting thought.

I've, I've, it's, it's not a mystery to me why so many companies are relocating to Texas.

Texas is a great business environment.

You, you alluded to the income tax and, and, and uh and it is very, very pro business and, and will help you grow.

So we Texas is more than welcoming into business.

But the idea of a Texas exchange is uh is, is interesting.

I'm, I'm interested to learn more.

Well, we'll check back in with you once you do and once it gets up and running.

Thanks Ernie.

Thanks for being here.

Appreciate it.