The analyst discusses the energy sector, focusing on the price of crude oil. He mentions that he has had successful trades in the energy space before. He believes that crude oil at $63 per barrel is very cheap. The analyst examines a survey from the Federal Reserve Bank of Dallas regarding shut-in prices for existing wells. In the Permian region, the shut-in price is roughly $33 to $35 per barrel. He notes that existing wells would need a WTI price of between $41 and $45 to remain operational. For new wells in the Permian, the break-even price point is around $62-$63, potentially reaching $70 per barrel. Based on government budget expectations 30% of Saudi's income comes from Aramco Dividends which is to roughly $77 a barrel, which the model infers a good price target.