This is when Daniel explains to HW his plans to build a pipeline out into the ocean so that he does not need a well to get to the oil. It will drain out of the ground straight into a bucket. This is an important scene which regards Daniel's disliking of people, and that is revealed later. If Daniel has a pipeline then we will not need a crew, he will not need workers, he can basically sit back and let the profit come to him. The land that he buys from the Sunday family has no fertile land so basically he wants to drain the soul of the land itself.
This scene is also important because he is educating HW about the oil business, and getting him involved first hand on different methods and ideas. Both this premise and the drain pipe are important story elements regarding Daniel.
