Supply, and Demand, and Hopes and.

My observations on Mr. Lee’s presentation at the Houston Producers Forum, held as usual at the Petroleum Club of Houston, focus on the integration of natural gas products into the global market. The logistics of gas resources, like many other minerals, are far from optimal.

Texas provides nearly 25% of the natural gas supply, followed by Pennsylvania with 21.8%, Louisiana with almost 10%, West Virginia at 7.5%, and Oklahoma contributing 6.7% of the total major gas distribution across the lower 48 states. Internal logistics encompass the costs from the source to destination tank farms at U.S. ports. Beyond this initial challenge, there are two additional hurdles: the cost of gas cargo shipping and transporting U.S. natural gas to destination ports. The first indirect cost involves the U.S. military's role in securing these processes, an expense not transferred to the buyer.

These factors are weighed against "cheap" Russian oil and gas. We are engaged in a continuous economic struggle with Russia.

Zach, when discussing UpStream Assets, you missed a crucial point: all energy assets are of National Security Grade and should not be owned by foreign entities. Totalitarian countries, including KSA-Aramco, should be prohibited from owning or controlling any U.S. energy assets. I have other strategic recommendations for KSA-Aramco, but these are too complex for this discussion.

The U.S. LNG buyer's expectations depend on a stable and well-formulated Strategic Plan at the White House level, particularly for the Energy Sector. Chris Wright, addressing the challenges left by the previous administration, should develop an "Operational Strategy" for the Department of Energy. This plan must align with the overarching Strategic Plan. I recall no strategic offerings from Trump during his presidency, aside from his geopolitical intentions. As my mother advised, "When in Rome, do as the Romans do," I conclude my comments on Trump.

Following Zach's presentation, I pause to reflect on the previous points. Zach mentioned Henry Hubb in relation to the NYMEX, suggesting it is more predictable than potential White House developments. I advise U.S. LNG buyers to stay informed about Henry Hubb and monitor relevant companies actively engaged in the sector.

Czes' Zalech & Zach Lee of ARM