the market turning positive territory, nasdaq's adding about seven points here, .25%. "power lunch" picks up the ball right now. >> announcer: halftime is over. "power lunch" and the second half of the trading day starts right now. good afternoon, everybody. america's energy problems be gone. the genie we have been hoping for for four decades now will arrive and the u.s. will serve up more oil than saudi arabia in the year 2020. that according to a new report by people who actually do know the oil business very well. and sex and the ceo. and the collateral damage. how widespread is sex at work? we really want the answer to that question? what should the consequences be. and no hockey. forget about that. no problem. look what the world of auto racing brought us over the weekend. a brawl! another black eye for a sport that corporate america was counting on? no fighting here at cnbc.

sue's with me here again. nice to have you here, sue. >> it is great to be here, ty. those "fast money" guys got me all riled up over there. they're having a good time. we're going to take a look at the markets right now. dow jones industrial average has turned into positive territory, not by too much, but hey if you're a bull, we'll take it. the s&p is up two. the nasdaq up almost eight on the trading session. we here at cnbc, as you do, follow the energy sector very closely on "power lunch" but you don't have to follow it closely to recognize the world's major oil producers and regions with oil have some big problems right now. in the last two days alone, hamas has fired more than 100 rockets at israel. israel says it will respond when it's ready. today israel is responding to shelling from its troubled northern neighbor syria where a full-blown civil war is under way. iran, meanwhile, is holding a massive air defense drill just a week after firing on a u.s. drone in international airspace.

but what if we didn't have to worry about any of those concerns anymore? well, according to the international energy agency, in 2020 we might not have to. sharon epperson is live at the nymex with the details. >> sue, there is in fact a major transformation that is under way in the oil and gas industry and particularly here in the u.s. and it is going to change the landscape dramatically. in just the next seven years. what the international energy agency is saying is that, of course, for many years, we have seen the concentration of the world's oil production in saudi arabia, and in fact saudi arabia is the second largest exporter to the united states of crude oil. but the iea says that the u.s. is going to overtake saudi arabia as the top oil producer in the world by 2020. then by 2035, just about two decades from now, we will see our reliance on middle eastern oil completely gone. in fact we will become completely self-sufficient in terms of our energy needs.

how will this happen? what is the road to our energy independence? well, we've already seen it happening. we've already seen conventional oil and gas production start to taper off and we're getting that oil and gas from unconventional sources, from fracking. and that is increasing dramatically. in fact, nearly half of the global production that we're seeing in natural gas in particular through 2035 is going to come from unconventional gas, according to the international energy agency, and majority of that will come from the united states. so what does this mean for the dploe global energy trade? it means we're going to see a build-up and diversification of oil and gas that's going to change that landscape as well. in fact, they are predicting that by 2035 we will see 90% of the oil that's produced in the northeast going to asia. >> sharon, quick follow-up to you, if i could. >> sure. >> obviously there are a lot of people in the united states who will be extremely glad to hear this news. the question that i have though, is the infrastructure that's

needed to get all of this going by the year 2020, is it there, how much more infrastructure needs to be built out? >> the infrastructure is there but what some are concerned about is that we may have tapped out some of these unconventional sources already or some of them may not produce as much as what the international energy agency is forecasting. so you do have these forecasts running the gamut as to how long it is going to take us to become truly energy independent. but the fact remains that most analysts that i talk to believe that if it doesn't happen by 2035, it may happen even sooner. it may happen a little bit longer but it is happening. it is definitely changing what is happening here in terms of this whole debate we've been having about foreign oil. the dependence is not there as dramatically as it has been over the past several decades. >> very good news indeed. so if the u.s. becomes the global leader in oil production in 2020, what will that mean? finance.yahoo.com will talk

about the results. can washington rise above the partisan rancor to keep the u.s. from falling off the fiscal cliff come the first of january? eamon javers live in the nation's capital reporting on the plans that could actually save the day. >> there's a lot going on in washington this week. we're going to have a press conference from the newly re-elected president of the united states. we're going to have business groups visiting the because to talk about the fiscal cliff and we'll have high-level negotiations between members of congress and the president and his team on the fiscal cliff, all trying to avert a showdown here before the end of the year. but i want to drill down on one issue of this that might be really important to our audience which is the question of capital gains and dividends taxes, where are those headed under all of these various fiscal cliff scenarios. you talk about the different plans out there. a lot involve cap gains. simpson-bowles under that plan released last year, capital gains are taxed as ordinary

income. domenchi-rivlin, cap gains. we assume what paul ryan wants to do is keep those at the rates where they are now. but in talking to republican lobbyist types around town, wall street lobbyist types around town they are betting the capital gains rate will go up at some point in this fiscal cliff negotiation somewhere to the range of 20%, 22%, even 25%. he think they sort of an inevitable outcome here as washington is looking for new sources of revenue. that's one thing to focus on here between now and the end of the year. we have 49 days until that deadline. america's economy literally being held hostage, many say, by washington and as the clock ticks down we're holding lawmakers' feet to the fire. congresswoman allison schwartz

represents the 13th district of pennsylvania and she is on the budget committee and the foreign affairs committee in the house. miss schwartz, thank you for joining us. congratulations on your re-election. >> thank you. >> let's go to the question that eamon just raised about capital gains. obviously of key interest to our audience and investor centered audience. do you think that capital gains tax rates ought to rise from their current 15%, and do you think as part of the bargain that they probably will? >> well, the fact is that we have not made firm decisions on exactly what goes up and what doesn't but i think what we do know and what we do feel strongly about -- and the president laid it out just yesterday -- is that we need a balanced approach. we do need some more revenues. we do need the very wealthiest among us to pay a little bit more. and so what we really need first is a willingness on the part of everyone in washington to actually get this done and to say that there will be cuts. we know that.

but that there have to be some revenues as well. we need a balanced approach. once we have that willingness on the part of republican leadership to work with the democrats, work with the president, then of course what we're going to try and do is raise taxes as little as possible but in fact we're going to need some newer revenue. the fact it's going to have to come from wealthiest americans is something we all recognize and the american people certainly recognized in this election. >> we made a lot, at least those of us in the media, made a lot last week of speaker boehner's references to an openness to increasing revenue to the government. whether this was an affirmative desire to do that as a result of a tax reform or sort of a secondary effect of reducing rates and creating more economic growth is a little bit unclear here, but how encouraged are you from the words that the speaker has been saying and that others on the gop side have been saying about an openness really to raising revenue as part of a bargain?

>> well, the tone was right. i think that that is something that certainly should be being a flojed. because there is no question when you heard the language after the statement we want to -- we're willing to see new revenues, what speaker boehner said and what the republicans are saying is that in fact the revenues can only come from economic growth. now of course as democrats we also believe in economic growth, growing jobs but we also say that we do need some hard revenues in the short term if we're going to be serious about bringing down this deficit and creating some stability for the business community and for consu consumers. the fact is that we already agree on middle class tax cuts so let's get that done. let's create that certainty. let's make sure consumers have more dollars in their pockets so they buy more products and our business community can respond to that. what the business community says to us is give us some certainty, tell us what you're going to do, stop sort of just delaying these hard decisions. many of them said they're

willing to talk about getting rid of some of these special tax deductions and lowering the rate. again, we actually agree with that. so let's have this serious conversation but it's not going to be good enough just to say we need new revenues coming from just growth. >> congresswoman schwartz, thank you very much for being with us. we wish you good luck because we're all watching and counting on you. >> and we should get it done. yeah, absolutely. >> very good. a reporter with the "fiscal times" joins us live in washington. you heard the congresswoman? she seemed to move the conversation forward a little bit. are we going to get a deal or no deal? >> well, the deal and the devil is in the details and the details are really what matters here. thus far we've heard nobody wants to be boxed in. until you're willing to be boxed in, you're not going to commit to a compromise. >> you know, though, i think most of america at this point has some pretty high expectations. are we going to go right to the

end? because the electorate has given its message, they want to see a deal done. do you think it is going to go to the 12th hour? >> the electorate has given a mixed message. for example if we look at the congresswoman's district, she was re-elected with roughly a 2-1 margin. in other words, so many congressional districts are gerrymandered that both republicans and democrats are relatively safe. that changes not just an understanding but a basic interpretation of what the mandate from 2012 is. when we go to the 12th hour? most likely because that's when leverage increases right at the end. >> if it does increase at the end, where is the giving point? where is the point where they're going to compromise and perhaps get the deal done? >> the giving point for democrats is right when we get to that january deadline. because the tax breaks are going to expire automatically. the important leverage inflection point for republicans is in february because that's when you're going to have to vote on raising the debt ceiling again. >> josh, thank you. we have special coverage of

the crisis second by second at cnbc.com, including a special section on the fiscal cliff. access it by going to the top right of the page, look for the "rise above" on cnbc.com. just like our button's, ty. next up, julia on bond, james bond. plus, courtney -- that will be reagan -- on a slippery retail slope. courtney? >> next up, the pile on to open up thanksgiving night rather than waiting for black friday. who's leading the way on price cuts and extra hours and will it impact the stock? plus, the biggest opening for a bond movie, ever. how can you make money from the world's most famous spy? i'll have that answer in four minutes. if congress fails to take action by january 1st, the u.s. department of labor's veterans employment and training service would face a funding cut of over $12 million. affecting over 51,000 veterans.

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rim moving back 3% after it said that its blackberry 10 is going to be released on january 30th. yes, it is a little late to capitalize on the holiday shopping season but on the plus side, this is suppose to be the

phone that helps them out of slump. it is one of the high-volume leaders in the u.s. today, a top percentage gainer on the amex, up about 3%. the countdown to christmas by way of thanksgiving is on with retailers releasing quarterly numbers this week, many are also outlining their bare knuckle strategy to win over black friday or pre-black friday shoppers. courtney reagan is on the retail beat with the details. >> that's right, tyler. it is hard for retailers not to get involved in black friday once the big boys start unlocking their doors on thanksgiving. it is hard for the rest of the field sit stuffed with turkey and pumpkin pie on the sidelines. walmart and sears announced thanksgiving hours last week. today toys "r" us an target following suit announcing thanksgiving day hours and door busters long before the calendar strikes friday. kohl's, macy's and many sports authority retailers are also opening at midnight. new deals revealed through social media hoping to entice

shoppers to come back to the stores. office max is bringing back its black friday every friday through december 19th. most analysts believe the early black friday will more than likely just shift when sales are made. the goal is grabbing shoppers early and gaining market share in the process. though there's concern that retailers could repeat last year's stunts. retailers panicked and offered deeper promotions further cutting into margins. jpmorgan's matt boss says many retailers are planning to roll out new product as the season unfolds to keep consumers shopping. on earnings calls, macy's discussed newness in december and kohl's hinted at that as well. sue? >> thank you very much, courtney. this weekend brought the biggest opening ever for a james bond movie. sony just telling cnbc the movie "sky fall" brought in more than the $88 million originally reported. it grossed in the $90 billion barrier as well. who's cashing in? i bet a lot of people. julia boorstin is live on the hollywood beat for us.

>> that's absolutely right. a lot of people are cashing in. expectations for the latest james bond movie were high and "sky fall" exceeded them. sony telling me that strong word of mouth drove a big turnout yesterday. the weekend's domestic gross is now projected to be more than $91 million, putting the film's worldwide gross in the range of $520 million as it continues to set records overseas. this is, of course, good news for sony which co-produced and distributed the film, though it didn't help sony's stock at all today. it is a big win for the wide range of brands that struck product placement deals like honda motorcycles and heineken. perhaps the biggest winner today is i max. "sky fall" was its first ever bond release. it was i max's biggest no egest non-summer opening ever. bids well for chains like regal and cinemark.

seeing the biggest gain in three years. the final twilight movie is set to hit theaters this friday. we'll have to see if all those vampires follow in james bond's footsteps and have some records. talking about collateral damage from having an affair at work. plus why cat just got hit with a downgrade. we're analyzing the analysts after a quick break on "power." if a budget is not agreed upon to avoid the fiscal cliff, the average middle class family will pay almost $2,000 more in taxes.

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welcome back to "power lunch." this time we have a market flash on utx, best performer on the dow, up 1.6%. also one of the best performers on the s&p large cap industrial group. no real headlines pushing this name higher but definitely drawing some investor interest. back over to you. time to analyze this with jim iuorio. welcome, good to have you with us. joining us from the cme. jpmorgan downgrading caterpillar to neutral from overweight on "the re-election of president obama" and the impact this could have on the u.s. coal and energy sectors. caterpillar down better than 11%

over the past year as you see right there. jim, what do you think? agree? disagree? >> i disagree. normally i get down on these analysts because i think they look too much the minutia of a company and minneapolis the macro themes. i like his methodology, starting right at the top, politic and policy because those are the big drivers and movers of stocks over the last five years. the thing i don't like about downgrading cat, there have been some decent numbers out of china. if we think we're going to come to some agreement on fiscal cliff, the broad market with rally. cat would become a proxy. >> so disagree with jpmorgan there. brave man. "limited upside brings us back to a hold on valuation ground." the stock has had a modest jump of 8% over the past six months. >> i'm long j&j and am going to

hold it like they say. that 3.51% yield is nice particularly when they're -- when the government's compressing yields along the treasury curve and the perception of safety and yield together is going to become very attractive. i'm not sure if safety's deserves but perception is there. people might flock to johnson & johns johnson. >> you're comfortable with this drown grade. >> i am. if it settles above $70, i'll add to my position. >> "the result of a number of pipeline setbacks this year and competitive development shares have not done much over the past three months," up 1.2%. wha say here? >> another one i'm uncomfortably long on. the report said merck and gi-- not a huge buy, if they're having great success in this, somebody's got to suffer,

probably bristol mire squiyer s. i'm like neutral on bmy but if it settles belon $31.47 i've had enough. >> uncomfortably long. thank you, jim. the impending fiscal cliff is prompting the smart money to change course right now. we're not talking about buying and selling stock. we're talking about other kinds of protection and, no, that's not republicans and democrats in congress. though it might be -- tell you what sparked this race driver crash derby coming up. they were throwing tires. [ male announcer ] this is steve.

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pushing further into the green right now, the dow jones is up five points. the s&p 500 up four, and the nasdaq up 11. bob pisani joins me from the nice. what turned us around? it was a pretty decent pop a few minutes ago. >> we had a rally on nothing. on air. this is one of the lightest volume days of the year. bond market is closed. folks, we've rallied 70 points

in the dow in the last hour and a half. and i think a lot of this might be related to the options expiration. the vix, volatility index, intraday has simply collapsed. a lot of people are likely short. we're going into an optionics piration on friday but the vix has just collapsing right across the curb. that's a big decline on intraday. light volume, going out even january and february numbers have come down a little bit. it wasn't just even today. the front end is the one that's down the most. elsewhere we're seeing declines as well. if you look at the sectors, fairly light. we're about even on the advance/decline line but this will be one of the lighter volum volume days of the year. gold markets are closing as we speak. >> gold is practically holding steady here right around $1,730 an ounce after last week's tremendous rally. we saw the biggest one-week rise that we'd seen since january in

the gold market and gold near the three-week high right now. we are looking at a lot of traders pointing to the fiscal cliff as the next trigger that's going to keep gold in positive territory, keep it on its trajectory higher. we're also seeing increases in gold demand and that is coming primarily from india where the festival season is getting under way. the wedding season as well. driving up demand of exchange traded funds as well as the actual gold jewelry. then we have the shanghai gold exchange talking about the fact that it plans to launch gold etfs. that's something that's also positive for the gold market. the demand that we're seeing is really going to drive this rally to the $2,000 level. they see demand from china and central bank buying all of that driving up the price. prices right now holding steady at this three-week high. also some gains over at the nasdaq today. it is outpacing the move from the dow. seema mody is following the big

movers over there. >> a mixed bag for tech stocks. research in motion is one of the winners after setting a date for the launch of its highly anticipated blackberry 10 device. microsoft though one of the losers after the ceo steve ballmer made some comments that its surface tablet had a modest start to sales. elsewhere we're seeing big moves in biotech and pharma. gillead shares are up showing one of its hepatitis treatments had a high cure rate. abbott also presented promising hepatitis c data. analysts say hepatitis c could become a $19 billion market by 2020. while there are already drugs on the market to treat it, there is a strong demand for an easier to take all-pill treatment with fewer side effects. as we have been reporting, the fiscal cliff would mean big

tax changes at the end of the year and many with with money are not waiting to find out what happens on the fiscal cla cliif. they are trying to move now to avoid higher taxes then. robert frank is here with me. you've been looking at some of the big deals that are sort of being accelerated here in advance of what might happen. >> many of the wealthy have become sellers after this election. they're selling stocks, they're selling real estate and some of them are even selling their companies. the reason -- yes, taxes. if we go off the cliff, capital gains could go from 15% to 25%, taxes on dividends could nearly triple and the estate tax and gift taxes could also go up. by selling now the wealthy can protect billions of dollars in income from next year's tax hikes. it's called accelerated income. wealth advisors tell me the wealthy have already been cashing out of stocks with big gains. 1% own more than half the stocks in the u.s. so that of course has been a big drag on this market. they're also selling real estate and private companies. one banker told me he's working

on the sale of a family owned company where the family hopes to save more than $20 million just by selling this year rather than next. why does this matter to the rest of us? well, because it could depress asset values we've seen in this market but it also may result in a shortfall in taxes in 2013. we've seen this movie before. in 1986, the wealthy front loaded their income to avoid that increase in 1987. capital gains revenue fell in 1987 by more than half. this is not to argue for or against any tax change. it just means that markets and governments are in for a very wild ride in the coming months as the rich accelerate their riches. >> a lot of people said that the only reason george lucas sold his company to disney was to beat the -- can they close that deal by year end? >> i think it is one of the hopes that they do. a lot of companies -- harold simmons did a multi-billion dollar deal last week. a lots of people -- it doesn't mean you can suddenly just sell your company because of taxes. it means if you are already in the process and you canab feasiy

close a deal -- >> the estate tax, the only way is to die sooner. >> die sooner or give it to your -- some people are writing that $10 million check to their kids right now this year. >> gifting. >> transferring wealth. >> that $10 million exemption. a lot of very happy kids this christmas getting $10 million checks. not us. what's going to happen to the tax rate on dividends -- we're going to skip that one? go ahead, sue. >> it was that $10 million check that threw you, ty. speaking of rich and where the rich with parking their money, an increasing number are turning to the rarefied world of fine art. case in point is christie's auction house is expected to sell nearly half a billion, with a "b," dollars worth of post-war and temporary art this week alone, including andy warhol's statue of liberty silkscreen and

jeff koons' tulip sculpture. tomorrow we'll speak with christie's deputy share. what will happen to the tax raft dividend paying stocks? it is one of those big questions for investors. jim iuorio, are they still a good play? they were under performing a little bit last week, perhaps in anticipation of these moves. >> some were underperforming. some were mercilessly hammered, is the technical way to describe it, particularly things like utilities, traditional dividend plays. long-end yields were getting xrom messed down to 1.60% in the 010. year. to me it seems like the fed is still trying to force people in to riskier assets and that's the reason we were buying these difficult difd plavidend plays first place. if the public comes away with one thing as a victory, it has to be dividends in capital gains

taxes because that would be disastrous to raise those. i like coca-cola, xlv, the health care etf that pays a nice dividend. >> jim, thank you. appreciate it. the list of executives and government officials who think that they can get away with sex at work is pretty long. now that the cia director and in coming head of lockheed martin had to resign so publicly at the height of their careers, will this change the culture of sex and the ceo? plus, an inside look at the other people who get caught in the cross fire. if lawmakers do not reach a budget deal to avoid the fiscal cliff, federal taxes will be raised by more than $500 billion in 2013, an average of almost $3,500 per household. having you ship my gifts couldn't be easier.

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g in facebook's put ve triggered options. options traders certainly talking about this activity. shares were down more than 1% earlier this today. around $19. seeing a little bit of a turnaround now as you see in the intraday chart. right now up by .9%. $19.38 on facebook. to street signs and what's coming up at 2:00 p.m. eastern. thanks very much, sue. up next, are retailers ruining thanksgiving? we are going to debate the good, the bad and the ugly of these black thursday specials. time running out to fix the fiscal cliff. in fact just 16 working days in congress until the end of the year. hard to believe but it's true. and two weeks in the dark post-sandy. the outrage growing and so are the calls for competition in power. we've got cable tv choices. why not electric choices? there's only one choice for cable for me, that's comcast. it is a great corporation. >> indeed it is. >> very, very heartwarming company. >> indeed it is, thank you,

brian. two sudden and shocking tales of sex on the job in the last week alone. cia head david petraeus resigning after an extramarital affair, and the incoming head of lockheed martin is out after having an affair with a subordinate. "the discrete guide for executive women, how to work well with men and other difficulties." we know of course how damaging these affairs can be to the players involved but talk about the collateral damage in the work place. the author joins us now. jennifer, thank you so much for joining us. >> thank you. >> let's talk first of all about these particular situations seem to be coming around more and more. but talk to me about the collateral damage in the workplace and some examples of how the ripple effects of these types of sex scandal can be felt in the workplace. >> well, first of all, they're very distracting obviously. the news that these relationships often do leak out

and employees are very curious about them. and also very observant about the impact that it might have on the company, on their position, and even the stability of their job. so it's certainly a big concern for the employees. they're often very disturbed by relationships, particularly at the executive level. >> jennifer, i guess i categorize myself among the "other difficulties" based on the title of your book. >> dang, you noticed. >> do you think that in all such cases, whether it is general petraeus, the case of lockheed martin going back to best buy, that the only solution in these matters is for the ceo to resign, whether that ceo happens to be a male or female? >> you know, it's unfortunate that we always seem to see these situations in retrospect.

i really wish that we were more proactive early in our careers with instructing young people when they come in to the business world that these relationships can be very damaging and career ending. because it's very difficult to put the pieces together after all this has come apart, and the boards of directors find that they have little choice then. it's a real shame bau often the these are individuals that they've invested a lot in and they would like to see them be successful. now we have a big problem so how are you going to solve that problem? >> what are the legal ramifications say if you have a supervisor who's having a relationship with a subordinate and it creates a difficult environment for the other members of the team. is there legal recourse by those other members of the team, and if there is, how often does that type of action happen? >> in my experience it's

unlikely that someone would sue for a situation like that but i can tell you from personal experience that they certainly complain. they find it very disturbing to work with people who are having an affair and so they certainly are unhappy about it. clearly there is huge legal ramifications for having an affair with a subordinate. when we know many companies that have had to pay very large fines because of that. so it is expensive and dangerous. >> thank you very much. the book again, "the discrete guide for executive women -- how to work well with men and other difficulties." as sex scandals rock the defense world, women are stepping in to lead. top companies now choosing females as their chief executives. the latest hire, lockheed martin, long-time executive marilyn huson. is this a trend or is the industry growing into a girl's club? jane wells is live in l.a. with more. hi, jane.

>> hi, tyler. i think it is just more inevitable over im time as thes women work their way up. on the very day sequestration could begin cutting half a trillion ondollars out of defense. hewson, "it will be a challenge and priority for me personally." she's preparing for an era of smaller budgets, a change for the company she has worked for pretty much her entire career. >> people are here because they are really focused on doing something larger than themselves and that's what we do. that patriotism, that purpose, that being involved with the company where they can be working on some of the most incredible activities and most important work in the world. >> hewson was already moving into the president and coo position but she got the ceo job after the guy who was going to get it had to leave after the

company discovered an inappropriate relationship with a subordinate. more women are playing defense with her. the ceo of general dynamics january 1st. linda hudson, already president and ceo of bae systems u.s. division. sorry if we move back a bit, two others from lockheed are high-ranking. again, guys, most of these women have moved up within the company or have come over from our defense contractors. they have not come from outside industries. back to you. >> jane wells, thank you. watch out, saudi arabia. the u.s. is hot on your heels when it comes to oil production. what happens when we get there? and check this out. a massive brawl on the track. once the darling of corporate america, is it another big bump, a plaque eye, for nascar? and how will sponsors react? if lawmakers allow the payroll tax to expire, federal

taxes will be raised on more than 120 million households.

cnbc has launched a new online feature, series, featuring some of the world's top leaders like warren buffett shown here in a way you've never seen them before. called "off the cuff," and it takes ceos out of the boardroom and into their lives off the clock. check out our interview with mr. buffett at offthecuff.cnbc.com. there is the number. the antivirus software company mack fee was swallowed up by intel but the founder of mcafee may get swallowed up by the law. jon fortt live in slows. jon? >> yeah, strange case. john mcafee no longer has any involvement with that company which intel bought for nearly $8 billion a while back. he's apparently wanted for questioning in a murder case in belize, this according to

gizmoto. victim's name was gregory fall. 52 years old. mcafee himself is 67 years old. police authorities arrested mcafee on firearms charges back in may. he's a controversial figure. there have been rumors about him engaging in drug activities that gizmoto reported based on things he's posted on message boards. these charges of course quite serious. again, he's no longer associated with mcafee security company which was purchased by intel but this is quite a puzzling and troubling case. sue? >> indeed it is, jon. thank you very much. time for the power rundown with bob pisani and john carney. good to see you, guys. first up, more signs of the shale revolution and it's changing the globe and the energy landscape after a new report declares the united states will overtake saudi arabia as the world's biggest oil producer possibly by 2017

and be nearly sufficient self-by 2030. personally, i remember the gas lines of the '70s and i cannot believe this is actually going to happenpy i mean it is fantastic, john. >> you don't even have to go back to the '70s to see gas lines. we still have them in brooklyn. >> well, this is true. yes, we do. >> not to put too much of a megtive spin on this but there is a lot of other countries that are oil independent, energy independent, that i don't know we want to imitate. i'm thinking saudi arabia, the soviet union, oil independence isn't everything and you can in fact become dependent on oil in your own economy. we want to watch out -- >> that's interesting. >> but in this case it is a good thing. come on, we both agree. this is all because of shale and tar to a certain extent. that's why we need that keystone pipeline. there are parts of it that are still not fully approved, going from canada all the way down to the southern united states. twout without it we have a problem. >> 39% believe it is going to bring lower gas prices.

20% say a new push for american isolationism which is interesting. 17% environmental problems. and 24% perhaps siding a little bit with john. other unforeseen negative consequences. >> i have to say, i think a very positive consequence here is the less we're dependent on something to make our economy function on somebody else, not isolationism, not protectionism, but just being able to supply our own energy will be really important whenever there is a global crisis. we can turn to ourselves. >> moving on, president obama and congress remain at odds on the tax cuts for the wealthy as part of a fiscal deal but at what point do you label someone rich? those earning $250,000? $500,000? $1 million? how do you define rich? >> robert frank did a great behavioral economics piece on this earlier in the year. it is twice what you'remakering now. if i make $50,000 a year, what would make me feel wealthy? if i made $100,000. if i had a net worth of $1

million, most people say if they had $2 million they'd feel wealthy. >> a lot of this is dependent on geography, where you live. if you're maybe 2g $00,000 a year in brooklyn you're living in a four-story walk-up. you can't buy an apartment. that would go a long way in des moines, iowa. >> that's why twice what you'remakering now makes a lot of sense to me. >> rather than just a monetary figure. >> it's all relative because you're getting paid more in more expensive cities and so it probably is -- it does work out that way. >> tempers with flaring and fists were flying between nascar race car driver jeff gordon and clint bowyer and their crews. apparently gordon whacked in w bowyebowye bowyer's car on the final lap.

>> gordon turned into bowyer and triggered a multi-car crash? what is wrong with that man? disregarding who might have been at fault. causing a multi-car crash is dangerous and unprofessional. duh. >> and it is a lack of civility here. we're supposed to have sportsmanship especially in a sport like car racing where it can be deadly to lose sportsmanship. i think this is terrible. the people involved should be ashamed of themselves. do i hope they investigate it and -- >> oh, i'm sure they are. >> hand out real punishments to these guys. >> gordon says they've got do what they've got do just like i had to do what i had to do. >> that's just a terrible way to approaching the accident. i think that's actually sickening for him to say that. he should apologize and say, the adrenalin got the best of me and say -- >> take the higher road. >> say i'm willing to take my punishment. >> gentlemen, thank you very much. appreciate it. coming up in the next hour, sex and the c suite. should fooling around cost ceos their jobs? we talked a little bit about it

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markets are performing. we're up about 27 points on the dow jones industrial average. right now the s&p 500 is up about three. nasdaq composite is up 620. bob pisani is on the floor of the new york stock exchange. >> where's all the volume going? >> first, the bond market's closed. there is not a lot of room to play off of that overall. plus we're after the election, think people's positions are out there. we had a nice literally, 60-point rally, almost 70 points in thedown in the last two hours on very thin volume. you see the move to the up side. what's important i think, volatility has collapsed. the vix, the front end of the vix is down 9% -- 8.3%. we're off of the lows there but that's quite a steep drop there considering all the concerns about the fiscal cliff and what it is saying right now is that for the short term at least, the concern is not there by going over the fiscal cliff. believe me, if it was there -- >> at what point do you think it will creep back into the market. everybody was hot and bothered

about it before the election. it is hard to believe -- >> if we start going into the second week of december an we're still fiddling around with no clear outlines, this will go over 20 very quickly. remember, august 2011 we went to almost 50 on the convictivix. >> you'll see more i think as president meets with labor i believe tomorrow, business leaders on wednesday, holds a propose conference, then meets with the congressional leadership in congress. after each of those meetings there are going to be public statements and you can bet that investors will be looking and trying to parse every syllable. >> yes, indeed they will. i also think that might increase volatility alone. right? >> for sure. my thought is that on the back of a napkin, as art cashin used to say, you can see the outlines of a deal and where we're going to go on this. the question is will they walk through that door. >> thanks very much, bob. well, another day down here in the post-elen