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Scott Sheffield

Professor of mathematics

Oct 13, 2026

17:47
What do you think the biggest misconception or anti-consensus call is today as you look about at the market? What do you think the market's missing or management teams are missing?
17:59
Yeah, I think, um, ever since I came back, we both had to fight, uh, I'm gonna call it the ESG movement.
18:07
Uh, and it, and it got to a point to where it was strong with the financial institutions.
18:12
So we had the ESG movement, and then we had the movement by shareholders, uh, wanting us to change our, our business model To be more, to return capital back to the shareholders.
18:25
So as you all know, the industry had a 2% return on capital for several years.
18:30
Um, uh, so very poor returns, um, but with the industry.
18:37
Uh, and what's happened is that we've gone from 100 public companies in the upstream side to 40.

20 MINS LATER

38:53
How do you think about the return profile that you need to be international versus domestic? And how do you think about politics and the liquidity of the market if you're developing assets? You obviously have lots of experience in those areas, but how do you think about Argentina, Venezuela, Australia in terms of the environment versus domestic US?
2:48
We feeling still a little nervous? Do we have our ducks in a row? How are we feeling as, uh, the big day gets closer?
2:55
No, it's only two weeks away.
2:57
Uh, it's really for us a, a two-day event because my wife, um, Kimberly, and I have a ranch outside.
3:04
We're bringing all of our major sponsors and all the pros out to the ranch.
3:08
Everybody gets to fly-fish.
3:09
Everybody gets to do some shooting with pistols and shotguns and with clay pigeons.
3:16
Everybody gets to horseback ride.
6:19
Yeah.
25:50
I
25:50
know.
25:50
It started with a guy named Ed Vetter, who I comment in there.
25:54
He was one of the top three officers that formed Texas Instruments.
25:58
And he's the one that told you, he was MIT, and he told me, Scott, you got to think out five, 10 years.
26:03
And I was thinking out like we most do when you form an oil and gas company, the next week, the next month, maybe a year at the most.
26:11
Because, you know, you didn't have enough prospects to sit there.

11 MINS LATER

37:00
you know.
4:03
He was a petroleum engineer.
4:05
And my father, he was an engineer with ARCO, Atlantic Richfield.
4:09
He got the family together one Sunday in Houston and said, "We're being transferred over to Tehran, Iran." And I loved history, and so it reminded me of the Persian Empire going back to Darius, Xerxes.
4:24
Went over there when I was thirteen, entered the ninth grade, played American football on the US Embassy grounds.
4:32
I learned how to snow ski, one of my favorite sports over there.
4:35
I loved traveling to the Tehran bazaar with my mother, learned how to negotiate with merchants and, and shop owners in the Tehran bazaar, probably one of the largest in the world.
4:47
I loved Iranian culture, Iranian people, and Iranian food.
9:51
Yes, I asked him about that and whether President Trump was right to start this war in the first place, and this is what he told me.

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