2014 at the outset of this cycle, i would like to also for the record say that in the midst of an oversupplied market we saw oil prices plummet, dropping to a low of $40 a barrel for some crudes in 2016. ..

>> local spending from exploration of production dropped by a whopping 10 6% in twirch and is increased by 22% this year. altogether this amounts to more than 300 billion dollars in lost investment to this industry.

yesterday, -- [inaudible] some of the focus was reporting high in numbers. especially between 2015 through 2020. recently in new deli we have figures rarng between 1 trillion are to 2 trillion are within this period. this track is not to continue in unprecedented in the history of the oil industry. we have never had this in investment for three consecutive years in our history. this is a frightening situation when you consider that it must be according to our oil outlook and must have 10 trillion in oil related investment is required n

to to meet future oil demand and the industry must not be able to emit this level of investment. these factors are the reasons -- decided it was time to take action and that action were there for the industry. and let me say also for the first time, we have seen a variety of views, not only but within opic and also for the time we have seen this between producers and consumers. after the historic agreement on when november, the first visit was in japan.

to congratulate as for what we have done that it was good not only for opic but not only for the oil industry, but it is for producings as well as consumers and the global economy and we repeatedly had this when i went to new delhi last week from the prime minister. let me emphasize that countries remain absolutely committed to ensuring the long-term supply to the market. they continue -- they continue to invest in the upstream and drown stream sector despite the cost and shortage of adequately have a label and this is also despite the shop reduction in the national revenues and competing demand

for the economy. all of other countries or developing countries with huge demand from rising populations on the national treasury. yet, when i went from countries, there's still continuing to invest in upin order to to not only maintain current capacity. but to develop capacity to meet this future demand. according to our recently published outlook, global command is focused to rise by nearly 17 million dollars a day by the 2040 at which time it will reach around 110 million dollars a day. so as you can see the oil producers including opic have their work cut for them if they intend to misthe requirement.

but to achieve this, we all need a fair oil price and stable market which will provide more income for necessary investment in production, research, as well as development. one thing is for sure, though opic cannot ace chief this long or collaborative effort and other dialogue with holders. opic has an extensive list of bilateral and multilateral meetings that holds with international stakeholders this coulding the european union. the russian federation, china, india, wall bank, international monetary fund, g20 and international agency an international energy. we hope now that the united

states major for a new era of collaboration and dialogue so we can together toward a beneficial growth of stability in a world market. these conditions with economy growth and prosperity two things we all desire for this and future generationings. so what we have done in a jiff in ourselves and 11 member countries of nonopic last week was not only for producers. it was also good for the global oil industry as well as the global economy. so i thank you very much for your kind attention. and with your permission may i invite my colleague jorge to take us through our oil outlook

and talk just as we were talking about about -- judge mason just saw him walking in there. [inaudible] thank you. [applause] >> excellent. well done, my friend. [inaudible] >> thank you. good morning everyone. it's a great pleasure to be here presenting to you the 2016 position of the world outlook is it tenth edition of his excellency mentioned and great for the organization. i'm one of the main author rs of the report with great experts back in vietnam. so welcome again incase you're asking the social network i

invite you to use hashtag 2016. so let me start by saying that the world outis look provide a analysis on many aspect, many issues that are affecting our industry, however, in this presentation i want to focus on four main questions where the outlook sheds light. the first is social economic outlook how it will evolve after 2040. then we focus on the energy outlook and we explore how we would evolve into the long-term. we also provide very gradual analysis in materials of the oil markets outlook up to 2040, and finally a new piece of analyze in this year's outlook how could future energy policy changes affect the energy outlook? after the agreement there's still a lot of uncertainty on how policy, energy policies would have evolved in the future. what would be the policy so that outlook provide how this could

affect the energy outlook. so let me start with this social economic outlook up to 2040 and social economic had clear complix on the oil demand evolution. so for main demographic changes in the world when we look into the long-term, first one is that world population will grow currently, we are 7% 3 billion people and up to 20040, we will be 9.1 billion poem that's edition of 1.8 billion people, and what i think is more important is that most of that growth will be coming from developing countries. second sociodemographic change the average growth starting to accelerate while between 2010 and 2010 and 2020 the world added 800 million people during the last decade of the member

decline to 600 million people. so important change into the future here. third important is overall the age, structure of the population is aging and good example here the population age 65 or more currently comes for 8% of the world in 2040 this accounts for 18 population and of course it will shrink slightly, and finally more sociodemographic change is that the world is coming to town. your process continues, currently 54% of the people are leaving in urban areas into the future 2040 we're expected these number will increase to 63%. it is getting larger and number of mega city which are cities with more than 10 million people will increase from 29 to more

than 40 mega cities in the world particularly in a nation. this of course is for important question for policymakers in the cities. but will also be important change front seat economic point of view and key take away here is that the global economic picture will reshuffle. the world gdp doubles between 2015 and 2040 web and what is even more important is that where growth is coming from, in fact, three quarters of the additional gdp between 2015 and 2040 will come from the developing countries. and here, we cannot overemphasize important of china and new economic picture together, they currently count for 24% of the world gdp in 2040 their share combine will be 40% so 40% of the world in 2040 will be china and india. also we want to emphasize the fact that average income level in the world will increase and allow millions of people to exit

poverty and join the middle-class. that income gap remains quite important if we -- the average income level in the regions versus poorest region -- gap remains quite wide. now, let's zoom in a little bit on the energy outlook up to 2040, and the key take away here of the complebt you mention is that energy demand will increase by 40% between 2014 and 2040. you can see on the table that in 2040 in 2014 demand was 274 million bars -- in 2040 we expect that that number will be 382 million bars equivalent of the day date that's an average growth of 1.3% per. and most of these growths by surprise will be coming from the developing countries with with an average growth of 2.1%, and the second graph you can see that average growth for some specific region is what is important.

you can see india, the average growth of energy demand is over 3.3% per animal in terms of energy demand for the region, we expect quite low growth actually -- energy demand peaking around 2030 and decline on back of other energy policies, of course. that is from the regional point of view from the fuel point of view, the message is quite clear. the shift from fossil fuel to renewable is expected to continue. however, fossil fuels remain and continue to dominate energy meek accounting for 77% of the meek. however, the fast growth of oil renewable that's what had includes wind and solar will start to kick in significantly. in particular for oil, most it will remain as a most important fuel until the late 30s when it is overtaken by guest and

focus on this graph on the growth in energy demand by fuel type. we see that most of the additional demand energy demand is going to be satisfied by gas. but also oil and other renewables will play quite an important role satisfying the world energy needs. and together oil and gas are estimated to satisfy 53% of the world energy needs in the future. another mega threat when we emphasize in the outis look is that the world is increasingly becoming more energy efficient. and less energy poor so you can see this graph we have energy intensity clear down trend and this is on the back of policy, and energy efficiency policy, but also technological development, and changing composition gdp country develops their service sector increases.

and also energy as you can see there, the gap in the energy use for capita or narrows between regions. however, the gap remains quite wide. the average energy use per capita in developing world is still only one-third of what had is in the developed world by 2040. now, let me zoom is in a little bit more on the oil markets evolution up to 2040. we start with the first sign of the market the demand side. that's excellent you mentioned oil demand is said to increase to reach 109.4 million bars per day in 2040 that's an increase of 18.4 million bars per day during this period. that's regionally very important differences and demand is expected to drop, drop of 9 million bars per day, the demand in developing countries is expected to increase significantly. dish out 25 million bars per day.

another important observation here is that the growth of oil demand is expected to deaccelerate in the long-term that is quite important during the first five years, the average oil demand growth is 1.1 million bars every year towards the end, it is only 0.3 million every year. this is on the back of lower economic growth and tightening of energy efficiency. in terms of sectors, most of the growth we continue to come from the world transportation sector actually one-third of the additional demand will come from the road transportation sector. but we also see strong growth in the chemical and in the aviation sector. i also wanted to zoom in a little bit more on the conflict and road transportation, every day we hear news and high expectations about penetration of electric vehicles for example, so the outis look

provides what analysis on how the car fleet will evolve into the future. so let me start by saying that the number of passenger cars will more than double when will we look into the future. currently, we have around 1 president 1 billion passenger cars in the world. and in the future, that number will reach 2.1 billion. so significant increase in the car fleet. but regionally, there are very important differences the number of cars will increase marginally as you can see in the graph while most of the growth will come from the developing countries at income level increase in those -- in those countries. but it is also important not to worry where these cars are located but also what had type of cars will be hitting the road in the future. and in the world we differentiate between conventional cars which are pure gasoline diesel and energy car versus nonconventional which include natural gas vehicle, hybrid vehicle, plug-in an

modern hydroelectric vehicle and fuel sale vehicles and in the graph penetration of the non conventional expected to increase quite significantly according to the account for 4% of the car fleet, and in 2040 we expect to account for 22% of the car fleet. so quite an important increase. and we zoom in in the nonconventional battery electric vehicles will be -- taking a leading role in the penetration. we expect 141 million electric vehicles in 2040. now, we move to the supply side of the market in the nonoptic that it will recover slowly. growth will come from latin american particularly bra disilg but also u.s. and canada o.c. with additional in the medium term. the story is a little bit different in the long-term and a

the supply expected to after the recovery to remain fairly flat. for 2030 and is it the main source of growth initially up to around 2025, 2030, and then oil and biofuels are starting to peek in as main source of growth. and with this in mind, with the demand for crude is expected to increase to 41 million bars per day. that accounts for 37% of the world supply currently the crew about thes for 33% of the world biggest supply. so in a sense, the importance of the market is expected to increase in the future. >> i also wanted to zoom in a little bit more on the prospect and here we're showing north american outlook, we expect that it will recover in the medium term and reach 6 president 3 million bars per day in 2030 to

decline to 3.4 but also part of one side of the story there's also some additional barrels from outside north america particularly in argentina and russia where we expect over the long-term so that a total crude outlook will reach 6.7 million bars in 2030 and then expect to decline to around 6 million bars per day in 2040. and if we add these to the unconventional -- total type oil what we call the oil the sum of high crude and conventional mgo is expected to reach a high of 10 million bars per day in 2029 and decline to almost 9 million bars per day in 2040. a few words from the down stream analysis, the new capacities moving where demand is growing, that is basically other china and middle east, but the additional required capacity is

expected to drop in the future. while in the first five on six years of the first there will be -- adding around 1.4 million per capacity in the long-term, the number drops as a result of oil demand, decelerate and noncrude supply. and a few words on trade, oil trade, the growing crude imports from into asia pacific growing from around 20 million bars per day to close to 30 million bars per day, and middle east playing key role at the main supply for the asia pacific region. and this brings me to the last point as i mention new piece of analysis we analyze how could future energy policy changes affect the energy outlook after the agreement still a lot of uncertainty of how energy policy will evolve and how that evolution will affect the energy outlook.

so the outlook provides a fair analysis based on these uncertainty -- so we have developed two scenario scenario a where we assume it is likely faster timing of energy efficiency policy and reduction policy than in the reference case. and scenario b we're zoom in on extreme scenario where there's a timely implementation of both conditional and unconditional indices and also interesting both cases the global energy demand decline but also a shift within energy meek that demand for fossil fuel is reduced and in particular coal is very much affected as energy emission reduction policies are tackling the generation secking tore. and there's also increasing renewable and nuclear energy. in term there's an impact, of course, on emissions that total energy related fuel two emissions could be 14% lower compared to that reference case

in the extreme seminar joe where it is implementation of the eye indices so let me briefly summarize key take away energy demand is expected to increase by 40%. and will reach 382 million equivalent per day, and the energy meeks is continued to be shifting away from fossil fuels to renewables. oil demand we expect growth reaching 109.4 million but growth is expected to decelerate in the long-term. non opic supply expected to recover in the medium term and flat to then decline for 2030 so that demand for crude is expected to increase to reach 41 million bars per day in the end of the period. on the down stream we emphasize that majority had of the refining capacity is moving with demand is growing that is basically asia pacific and middle east, and finally the

changes in energy policy could reduce energy demand and could further shift the energy meeks dollars renewal and with these i finish my presentation. thank you very much. >> thank you. [applause] >> thank you very much. that wonderful presentation you get a record for a really good an quick delivery of a

insightful outlook. we do have copies for any of those of you who have not read the outlook there's a lot of information in there -- on a number of topics that we've been talking about over the next -- last several weeks. but in order to take some questions after we have a little bit of a discussion, both on the outlook and wonderful work that you all have done but we wanted to take this opportunity because of the proximity to the opec agreement and all of this sort of what we're experiencing in oil market to have a little bit of a conversation about that. secretary,s last time you were here, right after algers you said that this was vintage opec and i said what happens. yapped this is vintage opec and you've delivered on that but fairly clear eyed about the challenge of getting from algers to where you and opec members have achieved the agreement in

vienna and one over the weekend. can you characterize for us what you see as the main challenges going forward now that you've reached that agreement? >> thank you very much, if you recall coming out of algiers i headed to washington and under your colleagues to brainstorm on the outcome of algiers accord and the way for the to vienna, november. and i say that storming and very constructive, instructive and helpful for me prnlly prnlly an my colleagues to negate through algiers to vienna on november 30.

now to stage the issue is how do we move forward from here? we had agreed to give a non11 member countries of the group led by the russian federation on the tenth on saturday is now a saturday to join to readjust our supply and market to the tune of nearly 1.8 million a day for the first generally. but also agree with them that this agreement initially will be for a period of six months beginning generally -- 2017. and both groups agree to

establish joint -- [inaudible] monitoring community compromising of three member and on the site, russia federation, this community will walk with the office secretariat in order to monitor compliance and this is the first time this has happened between us and non opec so the commitment that i have both on november and december 10th, i think it was unprecedented.

an mostly behind the scenes to ensure that we delivered and between opec and nonopec with the soul objective for the balance to this fragile market with 2014 with severe consequences on the industry on the treasury of our member countries including the nonopec and also probably for the first time with the significant influx on the economies of the major consuming countries. i just told you that in vienna had to almost visit from japan who came not only to congratulate us for what we did

between both the decision that was good for japan. to come out of deflation and in countries in that economy condition with the bounce sometimes interest ritz and lower levels, historic levels and sometimes even negative territory. so i am confident that what we did was to turn a historic page in global oil. and by establishing this platform of opec and nonopec, i'm confident that we are on course of a new floabl global alliance and producers supported by consumers to perform some

level of stability in the oil markets. in this short medium and long-term that will ensure an investment in all of the -- particularly in the emp and -- would shed -- share his experience with us for opec we remain committed to continuing to be a dependable supplier of oil to our consumers. and therefore, it's pushing for us to do everything we can policy wise to ensure that we, the industry attracts the investments that we require in order to ensure this security of future supply. which is in the best interest of the global economy. >> right. well john what about that

perspective from industry clearly over a period of two years secretary general -- spoken about some of the drivers for the the decision that they make. what's your perspective on the impact that it's had on industry and jr. outlook going forward? >> you know, this field is agreement that is secretary general and team members of opec and 11 other countries not opec making this agreement. it is history and monumental to have this many countries with interest come together for a common cause. it is absolutely essential for future price stability an future price security for energy supply, so i think we need to congratulate his excellency secretary of general and member countries to have the courage to push this through because it really is essential for future

energy supplies in the world as you can see from the 2040 outlook that the secretary general's colleague presented. you know, to have russia in it, to have nonopec member in it along with opec members i think it bodes well for the future. i also think it -- it needs to be noted that having the secretary general here in the u.s. with the u.s. being the largest oiling and gas producers as well as the largest oil consumer, to be extending good will and build understanding both from the opec side but now the u.s. side bodes well for the future of price security as well as the price stability. so it's very heartening. you say you know why is this agreement so important? we had a glut. it was a stubborn glut from overproduction and even though demand was increasing every year for oil a million barrels day,

the glut remained and while there's been some relief of the excess inventory, in the last three months, it certainly wasn't enough to prop up prices to encourage future investment. what this deal does is accelerate the draw down of those excessive supplies to get to inventories in the world where they're comfortable but not excessive, and if this agreement hadn't been done i think prices would have floundered for another year in the 40s. so you know that would have created even longer term problems for the world in terms of future investment, and in terms of what impact does this have? i think you know why is it so important? it all has to do request two issues. one is investment which the secretary general has talked about, and one is the financial deficit both producers but also of the member countries as well that are in opec. in terms of the investment side it was talked in the 2040 presentation just recently

there's been devastating decrease in investment and o'pack has talked about this. eia and global investment in the world has gone from approximately 700 billion two years ago to $550 billion last year to 380 billion this year. that is unsustainably low. iea actually says you need and we in the industry agree about 600 billion a year of investment called global oil and gas production flat. and we're way under that and it is likely that the investment for this coming year in 2017 is going to approximate so the word is at an unsustainable position in terms of investment for future oil and gas production. the second key point is the industry is hemorrhaging financial deficit. if you just look at the public companies that are in the exploration production business in the world, after reduced

capital expenditure with lower investment level and industry is running about 100 billion dollar a year financial deficit now thafers last year, that's this year. and opec itself is running approximately a 500 billion deficit after a their government expenditures. this is not sustainable. so basically something had to give. so i think this with agreement we're entering a new chapter for oil prices. one of upward trajectory and very encourage that that will incentivize investment today to make the important growth an oil supply that we're going to need in years. another interesting point is not just why oil prices are important to the world economy and price stability and energy security in the world economy, but it's also important for the stock market. conventional wisdom couple of years ago was that if you had a

low oil price it would be good for the stock market but actually in last 12 monthses there's a very high correlation between oil prices and the stock market. and so as a consequence take away from this stronger oil prices are actually good for strong stock market. >> so -- great point about how it's very good for the sorts of investment and certainty and what's been happening with the oil market. one of the things i wanted to ask you about secretary was about -- you mentioned deal was done and deal with oil market analysis and what is going to happen with the market. in terms of the response to the deal, one of the fundamental questions that is still out there is in a low price environment that may stay between a 50 to 60 to $70 range over next several years a lot of opec number just mention ready feeling the pain as much as industry is and having to make

some harded adjustments what is your perspective of how difficult sustaining those cuts will be beyond the six month time frame and in in light of the kind of difficulty that i'm sure you discussed at imf when you were there that some of your member companies are experiencing. how hard is it going to be to sustain those and discipline if the market environment and price environment remains low? >> thank you very much. i think that what our countries, another producer from nonopec went through in the last two years has been probability most severe. to have from the corporate presented by john here. and most of our member countries of reporting high deficit numbers construction in the economies included the most

among them have all of the impact on the majors -- into the debt market in order to apply this. so in terms of the pain, i think that what we have gone through, what we're witness in the last two years cannot by enemies be compared with what is required for us to what is through the market stability by the actions that we took in algiers as well as in vietnam. both on 10th of november and 10th of december with the 11 -- countries from opec. yes, some of our customers particularly from asia continue to -- ask for more crude. because of the robust demand there.

but we have all entries which was the main variable in the equation that led to this equilibrium in prices. although we have seen this drill continue in the last three months, we have seen continual -- but we're still over 300 million over the five-year industry average. so to restore this balance, we have to continue to stimulate and accelerate this to bring the levels to the five-year average. and i think is a variety of views as well as the year and also -- agrees with this fort by with

both opec and nonopec we can bring forward this. depending on level which we're going to work very hard through this giant community toen sure that we have a very high level of -- players within opec. >> so stock levels certainly being one of the key variables another one that folks are very interested in is responsiveness of title especially here in the united states. john do you have a view on what we learned in the last few years and what you respond going forward? >> i think the key question -- can shale and opec coexist? and the answer is absolutely, yes. shale, you have to remember is about 4.5 million a day of oil production out of 97 million barrels day in the world.

it is not a swing producer. the only swing producer that we know of is really saudi arabia that can go up several hundred thousand barrels a day or down several hundred thousand barrels day in short order. but shale is a short cycle producer. and this is a new key variable in this supply mix going forward. what a short cycle means, it's between 6 and 12 months from the final investment decision to first oil. where long cycle like offshore deep water is somewhere between three and five years from the final investment decision and first oil. so it's a new variable that we have to contend with. but when you think about that, it, obviously, was because of the short cycle the one that felt the biggest front when prices went down. so as a consequence when the prices started to fall into the 40s or even lower into the

20s, what you saw was a devastating decrease in the rigged account in our country from 1900 to about 600 rigs today and also as a consequence for peak u.s. oil productions has gone down a million barrels day. so the u.s. has already made its cut, and i think it's very much a function of the fact that those low prices weighed on short cycle shale more than they did on any other supply source. now, in response to those low prices, and the impact that it's had on the industry, there have been a couple of responses. and i think it really shows american ingenuity and innovation at its best. what is happened is that, we as an industry have really inno vatted to get our cost down. so inefficiency where our economy where we are leading producer of about 100,000 barrels a day of oil production

we've been able to take our drilling time in the last two to three years from 30 days to spud and spud a new well to 15 days and the industry is followed -- similar path. in addition to that we've made changes in our completion technique in terms of number of stages how much has been used to get more for a product production or a recovery out of the wells themselveses. so as a consequence where iia said $60 of shale production in the united states would stay flat. that number really now is $50. so while the industry has lost a million barrels day from peek mainly due to shale decreases, overt last couple of years, where we are now is at $50 shale production is pretty much going to stay flat. you're starting to see that in the month to month numbers that -- brings out every month. having said that, while it's

flat at that level at $60 with the increase in recount that is underway right now, we actually see shale production 6 to 12 months from now starting to go up in the rarng of range of 300 a day. and i talk about shale and opec coexisting that increase in production is not going to be enough to meet the world wide demand growth of a million barrels a day or production decline of two to three million barrel day that oh cur from the base. so shale is going to be needed for sure but so is long cycle. that is from opec and offshore deep water and it's important to look at the long cycle for a second. because that a part of industry has been devastated as well. nearly 60 projects have been deferred about $40 billion of investment has been deferred over the longer term opec

outlook shows trillions of dollars are going to be needed in investment in opec in shale, and in offshore deep water and in heavy oil. and right now worldwide exploration has been decreased in response to those price from $100 billion a year to $40 billion a year about half had of that is for the deep water ant pipeline of new projects has basically run dry so we need higher prices not just for shale. but also for long cycle so you have short cycle, long cycle an our company has taken strategy to be half uncon conventional half onshore, and half offshore deep water because as you look forward, shale is not going to be enough to meet the world's future dmantd for oil you're going to need opec you needed offshore and that's why we have about half of our business in the short cycle and another half in the offshore deep water where we recently had discovery with

offshore that's the largest oil discovery in the last ten years and it's a big resource and low cost it's going to offer great return, and it should come in on first phase of 2020, but that oil is going to be needed and we're going to invest in the cycle to make sure that we have long cycle oil going along with short cycle oil and it is very important that you think about this everybody tends to talk -- just talk about shale and shale is becoming the new o'packs not the case shale short cycle and long cycle you're going to need both for sustainable prices going forward. >> thank you very much. i can't agree more with john. oil outlook shows clearly the continued growth in demand for oil up to the year 2040. the estimates we have projects

about additional growth demand of about 17 million barrel a day. now, whether we're in conventional or uncon vngsal, the global oil industry is one industry. for us, i must share with you, that we observed with great admiration the ingenuity that technology called innovation -- the particularly in cost cutting still maintaining high productivity that has been recorded particularly in oil in the the united states. this is really important not only for the united states. but for the global oil industry.

this is what we encourage the long cycle plays that you refer to also emulate because it's good for the health of the global oil, oil industry. we never saw tight oil as a computer. we saw tight oil in necessary innovation in order to plug some parts of this robust growth. just think with me for a moment if we had not tight oil what would have happened? the convention of oil would not have met this rise in demand that we saw. it's impossible. i think that the industry is very proud of the achievement of particularly in the united

states and -- now we advocate in this dialogue to meet as an industry in order to compare, to share our experiences and get guidance from each other on how not only of maintaining this but maintaining this stability that we badly need. but also to avoid this type of cycle in future. we all know that our industry is cycle and what we imagine from -- what we have seen and we in opec we're confident of the dialogue that we have embarked upon. we should be able to put our

thinking cups up and come up with joint measures both from corporate wall from sovereign government as well as the industry as a whole if we cannot avoid this cycle but unless we should minimize their effect that we have seen. so i want to use this opportunity to -- i want to tell you that whatever we do that is good is good for the industry as a whole. and what is good for this industry is good for the united states. and whatever is good for the united states is good for the global economy. so only in one boat at the end of the day so panel out -- imagine out of this seek l we

would like to leverage our relationship with for example, other institutions so in order to promote this dialogue between opec and nonopec between ourselves and the corporate world both in tight oil and -- because for us this is the only way going forward to meet expectation of this growing number that we have seen or shared with us for billions coming into this planet. and by right should have access to energy in order to for sue their growth and mental aspiration and objective. >> i know i speak on behaver of everybody and jun everyone that

we surgery work very hard and support your effort to global energy market stability, it's a difficult thing to do with with all of the transitions that we're experiencing both in economies that are growing and slowing down and also new resources that we're discovering so a lot of effort in one we're happy to be a part of. i want to open it up because i know people will have questions but i do want to ask one more of the two of you before we do that. john will be familiar because they have the world energy outlook and it was brought up in your discussion but it's really the question peek demand right so this peak demand question have been been per vase of in boardroom and certainly within government policy making -- as we saw your outlook in sort of some of the view that you have on peak oil demand and what he was here he sort of made a point of saying you know they didn't see peak world demand

until 2040 which is a little bit different of what we had been hearing from other players not too long before. i want to get both of your views on how you think about not only peak oil demand is the question of when will it be reached just sorts of the that frame but how is it factoring into opec member and factor into your discussions is it increasingly important and i say it because when we have min store it was something he brought up as well so i was wondering how it factored into your discussion and john to get your view as well. >> thank you very much. yes, we have the issue of peak thoor rei -- theory has been a theory that has become dismal over the years and theory has been defied several times.

of course models and a op-ed and other agencies to be more and more sophisticated and we've seen the outcome of this model. but for us within opec, we attack -- take it in its strides. all of our member countries have signed on to the climate agreement about five or six i believe were ratified. one we're overlooking countrieses. we are severely impacted by climate change the effect of climate change, and despite the fact that -- they have made sustainable

development particularly looking forward to developing countryies to priorities but losing sight of the precipice of climate change. and populations. so you can see that jorge talked about contingent about how we move from the agreement going forward. i was recently -- in my view turned out to be a nonevent cop because the most important party dell gigs -- delegation to cop was --

[inaudible] therefore the international community that gathered were waiting to hear from this most important member. without its leadership, in implementing the parties agreement the whole agreement with swrep did i in my opinion. we have seen a similar situation where senate held protocol 95-0 -- we saw the consequences from the protocol. without the u.s. leadership, it would be almost impossible to realize. now this is not to say that we

fully agree with the outcome and the programs. and in order to move this process forward but we have also concern the fundamental process that have been compromised in order to build this fragile consensus that is now being put at risk by the huge uncertainty. so while we're focusing on this for us, the overriding priority for us is to continue to admit this growing demand whether peek demand in 2030 or 2040, or 2050 as long as there would be continue demand growth opec must continue to invest together with with the industry to mix this

demand to guarantee security of supply not only currently, but for future generations. >> right. so we surgery don't see oil demand peaking at least for the next 25 years nobody has that crystal ball that can go out that far. but we would certain subscribe to this study and outlook that opec has as well as the implet e.a., e.i.a. other companies as well. while it won't peak. oil demand growth because of efficiency and conservation its rate of growth actually slows over the time period so there's an impact from efficiency but it's not enough to offset demographic impact that were talked about earlier growing from 7 billion people now growing to 9 billion people overt time period of 2040, energy demand is going to grow

about 1% a year. while renewables will certainly speak for the biggest increase in growth on a regulartive basis from about 12% of energy demand to about 18% of energy demand in that period, oil and gas will still be about 50% of that energy demand in 2040. ...

so we need to redouble our efforts on research. it's very heartening that so great a group of other philanthropist have set up a billion $-dollar-sign. you have to take that with the best of contents which is to make our economy more efficient and to help in the carbonate fish enough for it at the end of the day we have to have clear eyes about what technology can and can't today make our decisions with that reality. >> a little bit of a longer transition. we've got some ground rules. please wait for the microphone. figure name and affiliation. we will be really happy about that. we will start right here. >> thank you for doing this. i am a russian reporter at washington d.c.

thank you so far for a great presentation. and neither but you just said about being in the same boat and the u.s. leadership, which countries to receive through the introduction and are you looking for sort of an understanding with the u.s., especially now that we have a new secretary is date designate. does this give you how and what level of prices to receive for next year? thank you. >> as i stated earlier, we had non-opec countries who met with as in vietnam on saturday, the 10th of december led by the russian federation and then the

declaration that we have signed, the declaration of cooperation between nasa and his countries we have said it's very clear that we are not closing on other producers who may wish to join this partnership in the interest of producers as well as consumers. my partner on the u.s. industry, particularly on oil. the u.s. has lost nearly a million of oil production. far as, we have to close ranks not only among ourselves, but with our friends the 11

countries to start with and also launch into the industry because they are an affront if you like. it has to be a comprehensive, which implies the sis is late enough in this dialogue by organizing this type. >> we will take one right across here. >> good morning. steve herman from the voice of america following up on an unanswered question that the russian reporter just asked. in the light from now on it was announced this morning by president-elect trump that there will be two friends of oil in the cabinet secretary of state killers then if the nomination is confirmed and the area, with

the oil industry. what is your reaction and how did she think the opec nations will react to these two appointments. but the choice of teller's sin is not only important for the u.s. but i think for the global community because of what she's bringing on board. they were listed oil and gas company. it is an understatement to say that the rest is more than

qualified for the very important office, particularly at this time. it's a very thin line between oil, geopolitics and diplomacy. rex rex tillerson i know personally. very measured broad and bringing it a wealth of experience until they have a very credible network across nations, across continents. he would be a great asset to the incoming administration to the united states government and we

as well as our member countries want to use this forum if you permit me to congratulate racks for this well-deserved appointment and we look forward to continue to different levels not only as an oil technocrat coming, but now he's become a product for the whole world. >> another perspective while i do not know governor perry personally, i know rex tillerson really well. he is not tanning business executives. he does his homework. he is always prepared and he obviously has a very deep knowledge of local affairs. another tip i might ring is just a more general one about the trump administration. they made it very clear that

energy is critical. it's fundamental to the future of economic prosperity in the united states and oil and gas are really the future engine of the economy. the shell has been so important in terms of our economy and in terms of jobs where there are high-paying jobs in terms of investment with the industry is one of the biggest investors here in the u.s. and in terms of national security. so for those three reasons, the trump administration's policy that third-party articulated details to follow his fundamental to being pro-energy as an engine of the economy going forward. >> just in the interest of disclosure, rex tillerson is a board member and see sis. i want to make sure that it's

quite clear. i hope while we are sitting here they don't pick off any of our board members. why don't we go back there. >> hi, emily emeritus from energy intelligence. mr. barkindo, i was hoping i can understand your perspective on how quickly the cuts to all pack and non-opec will rebalance the market. we know this is for an initial period of six months based on how things are going at the moment. do you anticipate that will be sufficient or not? >> thank you very much. very important question. in the consultation that led to the agreement, we compared not projections made by both off bad day ita and the lead agency is

making regular analysis and projections and we have seen that without the action that lead to is of course in the fullness of time. but one would not have been? some of the projections show it to you for next year will be named to q1, q2 of 28 team. but the action we took on endorsing the implementation of the supply adjustment of 1.2 million but is the day we've agreed upon on september 28 and together with the contributions present the 11 countries on saturday december 10 or 558,000

a day, a very impressive number from those countries together taking effect, we project to see an accelerated struggle already in very bullish numbers in terms of what draws it together hopefully i sank into the third quarter will be able to restore this palace gate that is why we are given a lot of importuned to the committee of five countries, two from non-opec working to ensure a very high level of

compliance. it might have nightmares every resources for the future. over the last 45 years, petroleum as a commodity has had dramatic increases and decreases just like agricultural commodities and medals. to what extent do you think it permanently change petroleum from being a traditional commodity? >> the oil business has always in a cyclical business. we obviously have had a lot of price volatility to the point that you're making. i actually think we are entering a new era now of hopefully better price stability where you have affordable oil, affordable energy going forward by us better understand how short

cycle shale works and long cycle all pack. the more we can build an understanding and also work with consumers, i think we can really enter a new chapter of more affordable, more stable and more secure energy going forward. it's still going to be cyclical and there'll there will still be peaks and valleys, but hopefully by us better understanding each other and that's why the secretary's visit here and the opec outlet is in the united states so we can better understand each other to make sure they have the oil, gas, the affordable energy they need and deserve. >> one way in the back. >> my name -- and business anchor. your excellency, do you think that prices will increase next

year and d.c. 70 or $80? this is the first question. the second question what will be the mechanism to make all the countries respect the agreement, the jet to cut the production. thank you so much. >> as far as the policy, we offer an amendment prize target when we used to have quarters. we have evolved the market of the industry and follow the presentation we had earlier with the process of this consultation leading to this historic meetings that were focused mainly on this highest level

built up as a result outside over the years. and it is agreed in this industry that the equation to maintain stability was disrupted by this one key variable of stocks and to restore that equation to balance, we needed to address that enhance the collaborative action that we are barking upon with the non-op-ed. what i can tell you is that the current price levels are a little bit far from equilibrium price, but the equilibrium price was dictated at the end of the day. what we are doing this to assist the market to bring forward

base. the market would always walk, but sometimes, especially in the situation we have found ourselves some level of intervention and just taken, i must confess too long to build this consensus and it's not an easy task during the different countries with different perspectives, experiences and different interests. what we have been able to achieve now is to lay down a solid foundation for a new global platform of profit as well as non-op-ed countries that will build a framework of structured and sustained dialogue and collaboration to

minimize the effects of the cycles of the industry, particularly volatility and muffled seventh urgency. ensuring some level of stability of the continued growth and development of the industry. that is why it is a new historic page if you like. i believe you share that and therefore, going forward we determined to not only solidified this platform, but also to engage operators both in the conventional as well as the nonconventional. we are one industry.

the fastest growing demand country in 2016. in terms of demand growth. i had from the prime minister congratulations for what we did. they share the same vision of stability. this is a country with 1.3 billion people in one of the fastest population growth and demographics will come from the developing world, particularly these two countries. so i think on the whole we are

really in some historic moment and working together in the industry with government, particularly some of the key players it gives us hope and confidence. >> at that time for tomorrow. >> megyn o'sullivan from harvard university. thank you was a conversation opportunity. i'm really struck their hopes for a global pop form i want to ask you about something related to the out. i noticed in the scenarios the first one has an aggressive policy implementation for

climate goals in the second one is the implementation of paris. can we assume the reference case is assumed something less that paris is not wholly implemented and does that mean that as the scenarios that just as global demand for energy actually goes down and is a departure from your reference case scenario. i know that is technical, but the bottom line is your demand scenario dependent on sailing. >> the paris climate agreement is key in the medium to long-term projections for energy generally. the two scenarios use team hinge their projections on the implementation of the paris agreement. one aggressive and comprehensive implementation of these

agreements are elaborated gradually graduating and the other scenario is less aggressive if you like, and maybe with longer time frames. the low scenarios will then call us on demand projections. the lettuce come into play after what i saw, i had good discussions with the u.s. delegation with the e.u. delegation. the war is waiting anxiously to hear from washington on the faith of the paris agreement.

guess it's a multilateral process. it was a global consensus and the consensus was facilitated by the united states. i was in copenhagen. i saw firsthand the failure to get this consensus in copenhagen and president obama did not give up. you walk very hard -- he worked very hard to ensure that paris did not turn out to be another copenhagen. equally more important now is how do you operationalize the target of paris? how do you graduate within what time rams and don't forget as i said earlier in facilitating

this consensus filled with festivities of the experience of copenhagen, some principles of the convention were compromised. they were common but differentiated responsibilities. the overriding principle of combining poverty were all watered down. between the annex one parties in developing country parties with the various levels of obligations were all compromised in paris in order to ensure they are able to cover this consensus going forward.

so in our opinion, all our member countries and many have ratified ratification. we believe this is the only way forward and we insist the negotiating tables with the views of the energy there, and poor developing countries must be taken into account and operationalizing. but all this depends on what we get next year from washington. >> we had the current special envoy for climate change your last week to give us a readout on tuskawilla bit about but

expectations are united to its leadership that form. it's interesting to see how many folks are the oil and gas community and diplomatic community are encouraging the u.s. to maintain an act of role in those discussions and that sustaining an active participatory role in that discussion is truly important. you'll be the last person that got time for today. thank you for being so generous with your time. >> peter with capital intelligence group. my first question for mr. hess. you mentioned countercyclical measures to address volatility. we have been pushing numbers to their oil production risks. i think libya started looking at it and mexico does. nothing was in chicago. we'll help members going on

exchange trading in chicago rather than over-the-counter which is quite expensive to the taxpayers of oil-producing companies. thank you. >> thank you very much. the decision or a member countries are national oil countries of our member countries to embark on programs of member countries. but i think it's instructive that from washington i'm heading to new york and wall street and i'm sure i'll be with you and your colleagues on wall street. i was sharing yesterday that back in 1986 i spent some apprenticeship in chicago as a young trainee and i look forward to returning to wall street.

the numbers are staggering. the evolution of that fact there is a market industry has been very impressive. the impact of that committee is on the physical market has also as i said earlier i was asking my colleagues here and you remind me what's the affordable trading today in anticipation of meeting you here probably. this november, 27 million contracts. and monday and, about 20 million. altogether nearly 48 million contracts in november.

physical oil, for 95 million. so we have a vested interest in knowing your business, and working with you, and getting you on board this global platform that we are now up building between arafat and not offset and producers and consumers, between the producers and operators companies. they think the platform at the incomplete without your thought. would you agree to that? >> another perspective to complement but the general saying is perhaps our strategy and business focus is to find, develop and produce oil and gas to help make the world's future demand for energy. it is not to hedge or trade with other companies to help them hedge themselves. we have our hands full just hedging their own production

which is our activity level goes up to ensure we have the cash flow the cash flow on a year-to-year basis has something to year-to-year basis that something will give it serious consideration. i want to use the opportunity to thank the secretary general for being here in the united states. this is horrid. the opec agreement was historic, but his presence here is historic and it helps us in the united states better understand opec, but also helps opec better understand the united states. it helps opec reducers that are understood and show and show producers better understand opec reducers. i think is that the new foundation or a new chapter for greater price stability, affordability of oil and security of supply as we look out the next 10, 20 years. why don't we give the secretary-general a warm round of applause.

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[inaudible conversations] underway from vienna to algiers, several pundits question the credibility of the agreement. before we met our friends, several -- the 11 countries unprecedented in our history joined us together signed this declaration. 558,000. so i think you should give us some pat on the back. i am not

>> well, this is part of the dialogue that we are initiating with the u.s. this is the place to start from csi snm area glad will be the outcome of the initial meeting. i have lined up meetings. we have met with the imf and meeting with cf tc and having to the wall street players in the market. so this is a new leave of construct is mutually beneficial cooperation between nasa and the

united states. the united states is the most important oil producer as well as oil consumer. our member countries are supplies of energy to the united states. the united states companies are active players in art domestic oil industries. as i said earlier, what ever is good for op-ed is good for the global oil and is great. for the united states and whatever is good for the u.s., believe me is good for the global economy. we remain confident and hopeful that with the incoming administration, we will see a global engagement led by the united states insuring the much-needed stability and energy

market that will benefit our companies, our countries and the global economy. i am back >> i have no plans of meeting with head, but am sending my best wishes. we are very proud of him as an accomplished technocrat from this industry. i think the u.s. is extremely lucky to have such a personality at this point in time and global affairs into the state department. i do not >> i would not like to preempt the discussion which is just an

initial meeting and we intend to continue this dialogue going forward. >> what are some of the issues he will be discussing at the cftc? >> among other things we would like to be educated on the regulatory environment. the regulatory regimes also have severe impact on our industry on producers and the u.s. being the most important market for us. i think it's important for us to be kept up with changes in the united states and our meeting with the cftc this afternoon. >> what do you think about rick perry? >> brett. i don't know as much. from what i've had my arrival

here, he will be announced in a secretary. i mail my >> i am in contact with the minister, my very good friend and we are looking. it's a very key global player, a leader without his leadership role, so he has become a leading fashion in this global platform where the name. we look to continue our interactions on a regular basis. [inaudible] >> who will determine the reference baseline with a

nonmember countries? [inaudible] >> for member countries, but what about non-opec? [inaudible conversations] [inaudible conversations] >> we will leave this at this point. if you missed any discussion at

this point you find it on the seat and video library. go to c-span.org. more live coverage coming up later today. we'll bring a discussion on media coverage of the 2016 presidential election hosted by the brookings institution. he will be able to watch that live at 2:00 p.m. eastern here on c-span2. a little bit later with more election coverage in election coverage and a look at what happened then analysis of the result. google will have discussions with a focus on what digital advertising strategies for more effect. you can watch that live at 3:10 eastern here on c-span2. we are the key now again at the lobby of trump tower in new york city where we keep an eye on the golden elevators, potential trump administration officials gathering for meetings with the president elect. here is a look. stimac

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[inaudible conversations] >> not a lot of action library right now. early one of those where of those weird for him was vice president-elect mike pence. he spoke to reporters as he headed into trump tower earlier today. >> another busy day. here at the transition we are looking forward to more interviews than boardd co discussions and we just couldn't be more grateful that someone rex tillerson's proven leadership in proven leadership and a combo schmidt has been willing to step forward to serve our nation is our next secretary of state. he along with general john kelley at the department of homeland to carry the represents the caliber of its. the american people are coming

to expect from the cap coming together around our president elect. we're looking forward to moree announcements this week it will be traveling with the president elect today to wisconsin as part of the thank you to her but the work of assembling an administration and cabinet will be ready to make america great again on day one continues today. thank you all. >> those remarks are my few hours ago. earlier today we were is the president-elect trump intends to have sub via serve as the next secretarsecretar y of state. "the associated press" reporting donald trump with business leaders in the world adding that he does have two manage a global enterprise which is crucial to running a successful day department. archived video where he talks about russia's oil and gas industry in the country's relationship with exxon.

the 2013 forum hosted by the dallas-fort worth world affairs council. >> in his wonderful introduction, mr. hunt referred to your success in russia. one of the members of our audience would like you to comment on the future of the russian oil and gas industry. >> russia continues as a nation to evolve it down economic structures, certainly its own legal structures. we been there a long time for the evolution and we have participated in it. it is a big country with a lot of complexities. they have huge, enormous natural gas resources, many of which are not even known to us yet, but we will find them. there will always be a very significant supplier of energy to the world.

today they are the largest oil producer. larger than saudi arabia. they have enormous gas resources in enormous potential to do more than they are limited only by their fiscal and regulatory structures. the rule of law structures. our experience in russia has been quite good. it hasn't been easy, but we entered in a time in putting contracts before their laws were even written from soviet era laws to their modern day. they have always respected that contract. they could've changed it here they could've toured a here they could've said not fair. they stuck with it and i have a lot of admiration for their leadership for having done that and as a result we've been successful together. the only limitation is their ability to put the right legal regulatory fiscal structures in place to attract a significant investments that are required.

nothing is done inexpensively there. the resources refuse and investments required are enormous, so you have to have the stability frameworks in place. their leadership is committed to that. it's how they travel the road to get there is sometimes hard for them. i would observe we have the same problem here in this country. we know where we need to go. we just have a hard time getting mad. in many ways they are not that different from us. they are going to be significant in the future and i think the prospects are very good and like a lot of countries there will be some highs and lows, but the reacting will be up. >> florida senator marco rubio had this to say about the secretary of state nominee. while rex tillerson is a respected businessman i have serious concerns about his nomination to the next secretary of state must be the with moral

clarity cover for a potential conflicts of interest and of interest and make their sense of america's interest that will be a forceful advocate for america's foreign policy goals. in the meantime, senate foreign relations committee member ben carson had this reaction to the nominee. i'm deeply troubled by the local opposition to the sanctions on russia following illegal invasion and occupation annexation of crimea ukraine from close personal relationship with vladimir putin. i look forward to meeting mr. we will scrutinize his record, experience and qualifications for the job. we will continue to watch the trump administration. more live coverage as we go live to the white house as president abbas as a 21st century cures act, a research bill that includes funding. you can see that live at 2:45 eastern on c-span.

earlier this month, house speaker paul ryan talked about that legislation. his comments are about 20 minutes. [inaudible conversations] >> well, what a day and what a moment. i could not think of a better way to end the year then by signing this bill. this exactly the kind of legislation we need to be passing. this bill takes head-on one of the big challenges we face. here in what today are considered incurable diseases. i don't have to tell entity this mama was a very long time coming.

[laughter] and we would not be here if it were not for the tireless, relentless work by so many people that are here today is like fred austin. and now we have a lot to show for it. i want to say to all the legislators hear it. [applause] book what we have to show for it. more money for medical research. the drugs and devices. that is millions of patients will get the treatments that they need. i'm talking about people like our good friend, max shell. speaking of medical innovation to mean fewer surgeries and less hassle. it could be millions of americans get to live longer, healthier lives. if that doesn't convince you that we need this bill, then i don't know what will. i would also be remiss if i did not recognize the good work of

congressman tim murphy. tim murphy, just like everybody else works so hard on getting mental health reform over the finish line, crisscrossing america, listening, doing hearings, talking to people about how to fix these issues did his lead the charge to bring attention and resources to mental health issues but all of you have worked hard to put the patient back in charge. this is what this is all about. i'm so proud of the accomplishments of these numbers and i simply want to stay thank you and job well done. [applause] >> well, the speaker cover the significance of this and a whole lot of people here deserve recognition but i am going to single out one member of the senate who did more than anything i think to equate us all with the significance of this. this is, i think the most

significant piece of legislation passed by this congress. i have the greatest impact on the future and the fellow who educated us in the republican conference about this for senator lamar alexander and i want to single him out for special recognition. [applause] i also want to thank the president. this is a classic example of incredible bipartisan operation and their particular interests and position. the vice president in the moonshot. i had an interest in regenerative medicine. we all kind of pull together. when the bill passes the very big margin, a lot of times people say well that was easy. [laughter] greater publicity would agree some of the toughest things to do around here and the end to

end up passing by a very large majority, but it was hard to put all the pieces together. everybody behind us played an important role in this. i'm pleased to be here today. this is an exciting way to end the session. thank you. [applause] >> to 21st century cures act represents a vital step forward, one that is very important to modernize and strengthen our nation's pursuit of life-saving treatment. the national institutinstitut e of health has a biblical power to cure. where there is scientific opportunity, i think we have a moral responsibility to allocate resources and so that's part of what this legislation does for reforms and resources that will accelerate innovative medical research, position medicine as an interest of president obama

with research very important. i want to particularly so the vice president eitan because he really advocated for not only his moonshot -- cancer moonshot initiative, but for the entire bill to its purpose and success. frank allowed, ranking member on energy and commerce has made this legislation their life work for a very long time. their knowledge, their persistence, they're traveling the country again as the best possible input working in a bipartisan way as speaker and leader mentioned, which was very, very important. and i'm very pleased that we have the $1 billion in lb at funding needed for the epidemic, also make a mental and substance

disorder services and that was a very bipartisan initiative as well. i am also pleased to have a letter from this beaker's saying that -- promising congress will meet its responsibility to robustly fund these commitments in the years ahead, not just in the 2017 appropriation. are you okay? don't worry. accelerated development choice in protecting the health and safety of the american people depends fully funding the fda and nih. and may i say, that when we make these investments and we come forward with cheers, interventions, we want them to be available to all americans. we will continue to work in a bipartisan way to champion their best investment and innovation that powers numerical is going back to that biblical power to

cure. i joined the speaker is saying i can think of no better way than to start the holiday in signing this legislation which makes america more healthy. thank you. mr. upton. >> well, thank you. i am fred upton. this has been a great couple of years because that is how long it has taken. we have worked not only both sides of the aisle, but both sides of the country from north to south, east to west. we did something that congress is often accused of not doing and that is listening. we listened to every group that without error. the researchers, scientists, particularly the patient groups. ..

republicans and democrats but typically i want to take, thank my partners frank vallone and diana to get. the leadership on both sides of the aisle, particularly lamar alexander who just did an outstanding job as we cobbled this thing together to get the 94th vote yesterday, 392 votes of the two votes the week before in the house. just want to close, you know what made this important, it's personal. it's personal to everybody out there, our colleagues, our staff, our constituents.

it is going to find the answer and it's important that we get it right. we also want to thank the administration. because without them it would not be a reality when president obama signed into law next week. so thank you, everybody. thank you. [applause] >> thank you, fred. you and representatives have set a remarkably good example for the united states senate and we're grateful for that. i'll say it again next christmas when we do the same thing. dr. francis collins who is the remarkable leader of the national institutes of health, he calls it the national institutes of hope, predicted in hearing before our committee

that the following could happen in the next 10 years. artificial pancreas for people with diabetes. medicine that would identify alzheimer's before the symptoms are apparent, and then once identified would help retard the progression of alzheimer's. a vaccine or zika. a vaccine for aids, a vaccine or universal flu which killed 30,000 people last year. heart transplant doctors like from the majority leader bill frist who will be out of business because instead we will begin to use regenerative medicine to use your own cells to restore your own heart. this is dr. collins talking. and the real answer to the opioid addiction which would be non-addictive pain medicines. he sees sees those coming in 10 years. these are truly medical miracles.

this legislation helps make that dream come true in two ways. one, the funding for the research, and second, to move all those cures and treatments more rapidly through the investment and regulatory process and into doctors offices and into the medicine cabinets so people can use them, hopefully, at a a lower cost. that is why the president said this is an opportunity we can't miss. that's why the vice president was making phone calls to senators all week. that's why speaker rhein put this as part of his agenda for leadership. that's why mitch mcconnell said this was the most significant piece of legislation for the year. i want to especially thank the speaker and senator mcconnell because they had so many conflicting demands as leaders and that's speakers, but they cleared a pathway for a very complex bill with many important differences of opinion. and without that it simply would

not be here today. last year we presented president obama with what he called a christmas miracle, after a long time, we helped affect the lives of 50 million children by fixing no child left behind. this is a second christmas miracle, a medical miracle that the president will be presented that affects even more people. it's the way congress ought to work and i'm privileged to have been a part of it. thank you. [applause] >> thank you, senator. i'm going to sound a little like senator alexander when i say first of all, i think this is a significant bill that became even more significant as the leadership of everyone who got more and more involved. to start out by saying that first of all read upton and diana to get from the very beginning were determined to go around the country and listen and you and what a country to continue to be innovative.

the feeling that those two have was that there wasn't enough innovation, that there may be too restrictions, there wasn't enough money being spent at nih on research for diseases that we haven't found a cure, that we could do more as a country took published that. so that was 21st century cures. but as time went on we had his other bills that were just as important, mental health reform, dinner with opiates. we passed an opiate package and the president signed back in july but it wasn't the funding. and also the canterbury chart which was a really innovative idea on the part of president obama and vice president biden. so all this evolved into package now that really is truly remarkable that we are able to combine all these in one rubric, if you will, under the auspices of 21st century cures. i just want to thank the leadership and i have to thank

nancy pelosi, our leadership on both the house and the senate side because there were many times when i met with nancy and there were the naysayers who simply can't do all this, we can't put all this together, there's not enough time. she said there is enough time, we are going to do this, i hear the naysayers but they are wrong. this overall is a really great bill and it is i want to thank everyone here for putting this together. i think it's remarkable that we are able to accomplish so much in this last few days as this session. i would like to introduce diana to get because if there was anybody who actually refused to say no and said it will get done, every day every hour in my here, it was her. thank you. [applause] >> thank you so much. it was almost exactly three years ago today that fred upton came up to me on the floor and he said, i'm thinking about

doing an little bill to help kind of revise the way we do biomedical research so that we can get cures much more quickly from the research lab to the approval to the patient. and i'm wondering, what you want to help you with that? so i said sure, fred. that it would back to my office and told my staff. so you can imagine three years later as with standard with all of our wonderful compadres on the energy commerce committee from both sides of the aisle what a special moment this is for us. but it's not just special for all of us. it's really special for all of the patients of america, people for whom we need to have hope during the season. people like max, people like my daughter francesca, people like so many other americans who have diseases for which we don't yet have a cure. and that surely when this congress can come together in a bipartisan way to bring that hope to those americans. everybody has said what a team

effort it was, and it was a team effort. our friends on, on, into sin on both sides of the aisle, our leadership in the house, speaker ryan, leader pelosi. i wasn't the only when he refused to say no. there were those many late-night phone calls with fred and his staff and, of course, everybody on this committee. i do think that there's one group though that deserves our thanks more than anybody else, , and that's the incredible staffs that we have on all sides. give them a big round of applause. [applause] >> just one thing in conclusion. some commentators have said this is the way congress used to work. and guess what? i hope this will be a new day opening the door and congress working this way again, to solve the very serious problems we have facing this country. i now want to introduce the start of our show, max. so max -- >> super max.

[applause] >> max, by the way, he was with us every step of the way. >> hi. my name is max. thank you for supporting cures. cures will help people heal better. its action. thank you for working with each other on cures. cures to cure. [cheers and applause] >> awesome. [applause] >> come on over here.

>> max is the star. >> i know. [inaudible conversations]

[applause] [inaudible conversations] [inaudible conversations]

>> and the briefing with reporters happened last week after the bill was approved. live coverage of this afternoon of the bills siding with president obama. that will take place at the white house starting at 2:45 p.m. eastern and we will cover it on c-span. we will be live on this network later for a discussion on bd coverage of the 2016 presidential election hosted by the brookings institution. live coverage starts at 2 p.m. eastern here on c-span2. later, more 2016 election coverage with a look at what happened and an analysis of the results, hosted by google and that will be at 3:10 p.m. eastern also here on c-span2. once again live to the trump tower lobby to see the comings

and goings taking place. earlier we saw president elect mike and make remarks as he headed into the building. there was an announcement by the president-elect that he wants exxon mobil ceo rex telemann to head the state department. we watched the action for just a little bit at trump tower.

backgrounbackground[inaudible c]

[inaudible conversations] >> earlier today philanthropist bill gates was seen heading into the elevator to meet with the president-elect. also entertainer kanye west walked into the lobby, and

here's a look at what he had to say to reporters and onlookers afterwards. >> what did you guys discussed in your meeting today? >> just friends. he's a good man. known him for a long time. we've been friends for a long time. [inaudible] >> life. [inaudible] >> no comment about your meeting? >> i just want to take a picture right now. [inaudible]

>> follow the transition of government on c-span as president-elect donald trump selects his cabinet, and the republicans and democrats prepare for next congress. we will take you to key events as they happen without interruption. watch live on c-span, on demand at c-span.org or listen on our free c-span radio app. >> i do think you can learn from failure. i think that if the next president onc wants to aspire te like somebody, that i want to aspire to be washington or lincoln. you can't re-create the country and you can't have the civil war. so what do you do next? you aspire to be james munro? i don't know what you can do is aspire not to be james buchanan.

>> sunday night on q&a, robert strauss talks about james buchanan in his latest book worst president ever. >> i think the differentiation of good president and bad presidents, washington, lincoln and fdr are always at the top of the survey system we mistake. they were decisive men. you can't come to the top of the ladder and not be decisive. buchanan was a waffler. james located him for being awol for a secretary of state. always back-and-forth on decisions. you are in my advise to come here to tell you what to do. that's how he was as president. >> sunday night on c-span's q&a. >> the supreme court recently heard oral argument in mccrory versus harris, racial germanic is examining arrays can be taken into consideration when states draw district maps.

the case concerns to congressional district in north carolina were black voters of those districts sued arguing republican-led legislature packed my north into districts one and 12 diminishing the vote and other parts of the state. the 14th amendment equal protection clause prohibits the government from using race as a predominant factor in redistricting and let sit sirs and state interest. this is just over one hour. >> we will hear argument in case 15-1262, mccrory v. harris. mr. clement? >> mr. chief justice, and may please the court. this case involves the constitutionality of two congressional districts in north carolina that should be familiar to the court because they have been before the court on multiple prior occasions. even though there are two congressional districts and bolts north carolina congressional district, the issues are actually quite distinct.

with respect to congressional district well it is different from both the house delegate district in the previous case and congressional district one because this was not a district that was drawn with an intent to create a majority-minority districts to comply with the voting rights act. rather with respect to congressional district 12 this was a political draw. if that all sounds for me it's because it's the exact same dynamic that was before this court. in cromartie to, this court in reversing in reversing a district court on the clear error standard concluded that when the state actually said that this was a political draw, that race did not predominate over politics in the drawing of this district. that is essentially the exact same dynamic that is before this court now with one major difference. this is a much easier case for this court to reverse man cromartie ii was because even

before this court gets to the clear error standard of review there is a clear legal error here that was greeted by my friends on the other sides and the district courts failure to abide by the teaching of cromartie ii. i think cromartie ii was about as clear as it could have been, that in a case where you have a majority-minority districts or something approximating it and you have race and politics highly correlated, and you have somebody challenging the states suggestion that it is a political and not a racial draw, but the plaintiff must show, not can show, not may show, not it would be nice that they show, mo show is that there are alternative ways the legislator could've accomplished its goals without a comparable -- >> that passage in cromartie ii says in a case like this one. it's pretty clearly following

off analysis in a case with purely circumstantial evidence, rather than direct evidence of race-based districting. i think you would have heard it and it would've sounded different if the court had really meant that in every case where the question was, is this politics or is this race, there was a requirement a requirement to present maps. that would have read a lot differently spend i respectfully disagree for at least two reasons. one is the was direct evidence in cromartie ii. and, indeed, the direct evidence is eerily similar. in cromartie ii unit evidence that the map drawer himself had taken race into account with the treatment of african-american community in greensboro. >> i guess that's why i said i was the problem. what i wrote in a case such as this one, and then people can

argue what does that mean in a case such as this one? by the time we reach the alabama case, there is a need seen by a majority of the court to try to bring clarity. we are speaking as a court. not every individual gets his own way, or should. and so if we go back into an area and try to reconcile the cases and try to come up with, in a complicated area, i set of standards that will prevent us from being turning into the 19th court of evidence to consider smiley detailed matters and so forth, all the problems, i would take that or at least i would start taking that last case, the alabama case, as at least trying to set the way in which a district court should go about deciding a case such as this one. do i not do that? >> know, in the following respect, which is alabama and

cromartie ii are different cases. i'll take your point that alabama is this courts last desk guidance on how to deal with the case like alabama and like congressional district one where you have a state that says, why do we do it? the voting rights act made as do it. we wanted to draw a majority-minority district. but cromartie ii is this courts last and best worked on cases like this where the state says why? politics. we look at the benchmark map. the benchmark map had congressional district one over here which was a majority monday district, and we want to preserve that. we know how to tell you when we're taking race into account. we said we are doing it. we are not playing hide the ball. ball. we did it with respect to cd one. when it comes to cd 1 12 we lood at the benchmark map. >> that's the question that this record was trying to answer, is

a politics or is it race? if it's politics, it's fine. if. if it's race, it's not. let's take a hypothetical which is, a state really does decide to do race-based districting. says we want to segregate all the african-american voters, this is a way we want to do it. but then they say we will justify it based on politics because that sounds better. but there's lots of direct evidence that, in fact, the justification is politics but the true reason is race. were you suggesting when you stood, in your first statements there, what you suggesting that even if they played its comes in and has all this direct evidence that they are really trying to do race race, that the plaintifs to present its own maps? >> and i would say yes. and i would say why not?

we are talking about a situation where the plaintiff is going and asking a federal court, in this case after they have already asked the state court and lost, but asking a federal court to say and hold that a sovereign state legislature that says it's politics was dissembling and it is actually race. that's a big thing to ask of a federal court. it's the unique thing in these cromartie ii cases which is different from what you're asking a federal court to do when the state is forthright that we took race into account to comply with the voting rights act. >> but it's also a big thing to ask plaintiffs to come in with her own maps, if they have a direct evidence that the state is doing race-based rather than politics based districting. >> i'm a little of trouble by being demanding a plaintiff thn i am of putting sovereign state legislatures in a difficult position. if there's all that direct evidence, i think the alternative map drawing is going to be a breeze. all this direct evidence that

this is really about race and the idea this was a politics is just a pretext, i think it's going to be easy as pie to show actually, right or you could have drawn this map differently and you would not if they can race into account. >> not so easy because we know that race and politics correlated. the question is, i mean, that's just a fact of the matter. but we said notwithstanding that, if race is your motive you get one result, and if politics is your motive, you get another results. these maps are hard to do given the extent of correlation there is, that direct evidence of race-based what i had to say there really is some in this case, because the principal line drawer says they told me to get above 50% bvap, direct evidence. that basically makes the case for somebody. >> just to be clear. the direct evidence of the map drawer actually is incredibly

helpful for my clients as to cd 12. the same guy who had no problem saying as to cd one, it's about 50 point 1%. also testified he had exactly the opposite constructions -- instructions for drawing cd 12. he didn't even look at racial data. he looked at the 2008 presidential election and the political result from that and to the map in order to bring in democratic voters and exclude republican voters. and -- >> didn't he say that he was told specifically did not consider race except with respect to guilford county? >> well -- >> which is probably the most important piece of this discussion. >> he didn't say -- he basically said do it as a political draw and then you going to have to check what you did in guilford county. >> we can go back to the original deposition testimony, which is what the district

courtcourt, i think what the cot below relied on. >> absolutely. but you look at the deposition testimony and you look at his testimony at trial and it all fits together. again, he never says well, when it came to guilford county, i turned off the political screen on my map drawing software and picked up the race drawing screen. why did did is the whole time he drew the maps, he had political data up there. precisely because race and politics are highly correlated. he drew the map to draw the democrats in and the republicans at. then he checked his work specifically with respect to guilford county, and he did treat guilford county differently, and he should have because it's the only covered jurisdiction in cd 12. he looked and is that i have the african-american community together. i don't have a problem. my friends on the other side want to take whatever quibbles are is about guilford county, it is uncontroverted here that with respect to every other part of the,