over time, we can sequester a lot of volume in the reservoirs in the permian.nnot only do it in the conventional reservoirs, we can sequester, we believe, ultimately sequester in shale. we have run four pilots, it technically works. over time, we can develop a field development plan that will enable us to sequester in shale as well. alix: let's get more detail on that. typically it is hard to do with shale because you can't move it, it is tight rock. what will enable eor to work there? >> in our traditional projects, with conventional reservoirs, normally we use a process where we inject co2 followed by water, and then we repeat that pattern. in the shale play, we cannot use the water because it will not move through the pore space very well, the matrix of the reservoir. the water would only move very well through the fractures and fissures. we have to use co2 from the start. there are two ways that you can do it, inject a certain volume into the well, let it soak. as it soaks, it starts to disperse within the reservoir. it contacts the matrix, gets into the po

oil drillers in the permian flared a record in the first quarter.re are not enough hype lines so companies have no choice but event -- to vent that gas, and that could supply 4 million u.s. homes. president trump keeps saying money from chinese tariffs is going into u.s. coffers, but it may be going to farmers. this is how much the u.s. is making from tariffs, and this is payments made to farmers hurt by the trade war. for this year and last, those payments could be 130% of the total tariffs collected from chinese trade. speaking of china, pig fever is running rampant in the region. this shows the african swine fever outbreaks in asia by month. you can see it spreading and getting worse. 1.1 million hogs in china have been culled to stop the spread of the virus. you have trade tensions, central bank dovishness and equity selloff, all leading to a rally in gold. thomas kaplan weighs in. >> gold is the only currency that cannot be printed. so when you have central bankers trying to debase their currencies, and the mining companies cannot find it, you

over time, we can sequester a lot of volume in the reservoirs in the permian.cannot only do it in the conventional reservoirs, we can sequester, we believe, ultimately sequester in shale. we have run four pilots, it technically works. over time, we can develop a field development plan that will enable us to sequester in shale as well. alix: let's get more detail on that. typically, it is hard to do with shale because you can't move it, it is tight rock. what will enable eor to work there? >> in our traditional projects, with conventional reservoirs, normally we use a process where we inject co2 followed by water, and then we repeat that pattern. in the shale play, we cannot use the water because it will not move through the pore space very well, the matrix of the reservoir. the water would only move very well through the fractures and fissures. we have to use co2 from the start. there are two ways that you can do it, inject a certain volume into the well, let it soak. as it soaks, it starts to disperse within the reservoir. it contacts the matrix, gets into the

of 2019, transportation costs in the permian fall, everything else being equal, the u.s.ntinue to take market share from opec. >> what do you think when you hear about these tankers being attacked in the gulf of oman >> it has to be stressful for those who operate there. the strait of hormuz has about 18 million barrels of oil flowing through it so it's a choke point and it could de-stabilize the world 20 years ago, supply disruptions in oil and gas were much more prominent. we had a sea of calm until these attacks, these four ships were attacked in the uae last month maybe the global supply needs to not be taken for granted as much, we need more slack in the system >> all of saudi arabia's oil has come through the straits of hormuz >> yes and many other gulf producers. >> with tensions like this, what does that do to your industry when you're talking about permian basin? >> sure. i think it shows the permian basin is a much more stable market, it's onshore it's less complex and less room for supply disruptions it has a foreign policy component. as we produce more and mor

we are very active in the permian, specifically in the southern permian, the texas part of the delawarest gather and transporter and manager of water in the basin. today we have over 500,000 acres dedicated to our network that spans the basin. alix: that is a capital-intensive business. what is the return profile like? david c.: returns are attractive. if you look the return on investment, part of the reason we are so successful doing this is it provides a phenomenal service for producers. it takes them from needing to pay trucks, which can be from two dollars to three dollars a deliverto being able to a redundant network at approximately 30% to 40% of that. $.65 a barrel. alix: how much do you make off of that? david c.: margins are offoximately $.50 a barrel of $.65 of revenue. that is a return to capital to fill out the network. alix: do not have that cash currently? how long does it take to build up the kind of project? david c.: the beauty of the water infrastructure network is you can build in small pieces. -- it the adding capacity is not a long infrastructure, not along capacity

collapse, we're still only at 57 bucks and change in the united states is that simply because of permianroduction >> well, i think it is a combination two of or three things first of all, it is really demand really demand stats over the last couple weeks and months as you know have really rolled lower. and that's just pressing on crude oil prices from a supply standpoint, u.s. crude bills have been massive over the last two months or so typically over the last two months you get flattish bills. a build of almost 40 million barrels. so those are huge counterseasonal builds that's kind of weighed on it recently, about a week, week and a half ago, the iea came out with their monthly oil report and it showed second half demand going lower and 20 demand going lower as well with supply going higher so it is just a lot of those confluence of events have just weighed on crude oil at this point in time. >> i can remember a day, michael, not that long ago, if we had tankers being blown up, we had conflict with iran, the talk about u.s. military ships esco escorting super tankers through the strait

the permian basin has a lot of oil, it also has a lot of debt is debt the biggest threat to the u.s.boom? >> debt and the oil companies themselves so oil companies as a whole remind me of airlines. airlines for years and years didn't make money. every four or five years they would go bankrupt. airlines would enter, prices would come down. feels like this to me. the oil -- there's been a lack of discipline and capital. we're starting to see the banks pull back. the fed is getting tighter with regulations on bank lending. these guys have taken in 200 billion in capital and lost 250. the fact that they're able to raise money for wall street, the fact that the banks are coming down more. it's better for the longer term. >> aren't we aligned with opec the saudis would like higher prices they want mid 80s to fund their government and social programs ironically we might want higher prices as well i'm sure everyone makes a little money at 70. >> 70 would be terrific. gas prices would be below 3.25 and we would get more capex. >> kevin, good stuff appreciate it. see you soon. >>> we have live

vitol chairman ian taylor speaking exclusively to annmarie hordern about the permian and elsewhere.ated by andrea horton in we willrsburg, where hear from oil ministers and including bob dudley. you can catch that on bloomberg tv this friday. up next on the european market open, we bring you stocks on the move, including lansdowne. after removal from a flagship fund. this is bloomberg. ♪ ♪ the mood in the room was gracious. i thought comments made by her majesty but also by the president were very affirmative of the special relationship the two countries have. ben vanat was shell ceo beurden talking to us earlier about president trump's banquet yesterday evening with the queen and others. the president raised the prospect of a u.k.-u.s. trade deal, urging the u.k. to get on with brexit so they could make a deal. today he will speak with theresa may, probably for the last time as she will be resigning as leader of her party friday of this week. economics is an fellow in the u.s. and americas program at chatham house. very good to have you with us. i wonder what your expectations woul

it wasn't just all about the permian. the permian gets a lot of attention.d it was something that was a moment in time and a great value opportunity for us and unfortunately, you know, we have not captured it we have a great story. >> you helped to set the bar, right? you kind of identified where the value is and where valuations may be if things still look relatively well valued in the permian the stocks have not responded. they're the worst performing sector this year down 20 or so percent as a group. >> certainly there continues to be a belief that there's some downside risk in the oil markets right now. i think that's weighing on the entire complex and, you know, we continue to look at all opportunities to invest in our business but we have great organic opportunities that will keep our business growing for years and years and years. we don't have to do anything and so, you know, we always watch -- >> well, you got $1 billion for walking away i'd love to get $1 billion for walking away you have $2 billion for the sale in the north sea you're on your way

. >>> and could the permian oil boom turn into a boost if the wells run dry? some in opec think so.e'll have comments from the ceo of a major u.s. oil company on that ahead. >>> and it's a term you'll hear a lot of today, direct listing what the heck does it mean get readfoy r a thursday picker upper as we lay that out in layman's terms higher expectations. the light beer you've been waiting for has arrived. corona premier. >>> futures up 220 points right now s&p and nasdaq green the yield on the benchmark ten-year note fell below 2% for the first time since november of 2016 get ready for mortgage rates to fall again >>> messaging service slack set to begin public trading today on the new york stock exchange. it is the latest company to choose a so-called direct listing instead of a traditional ipo. the company will trade under the ticker symbol work the reference price is $26 a share. that is not an opening price or an offering price. instead that number will ultimately be determined by the designated market maker at the nyse you will hear that term direct listing a lot on this net

be above $100. >> i think that's probably right, but the permian has made a world of difference.e're a major, not just swing producer, but we're a major producer now i think you've got something strange going on over there. obviously, in an all-out military conflict, iran couldn't supplant the united states, but i think they're playing a different kind of game the president has said over and over again, he does not want to put u.s. troops at war in the middle east. so i think iran thinks they've got a little wiggle room there, they can push a little harder and push a little further to see if he will be restrained from doing anything so it will be interesting to see what kind of response it is. the good news, obviously, is that it was a drone, there was no loss of life. so that would have changed the odds greatly but the bounce in oil is modified, because of the fact that we're producing so much >> do equities respond to this whole situation out there or not? >> it depends on what kind of response you see you know, for now, the geopolitical shift is mainly toward the trade talks,

it's a model of all robotics tops to an extinct tetrapod that lived during the permian era around 219000000 years ago. scientists at berlin's home bought university and the planet take in stitches of luzon drew on the fossil and fossil tracks to create a robot simulation. called our robots it's made out of motors with flexible plastic and steel parts. with the help of the robots the scientists were able to prove how the ancient animal moved and come to conclusions about its evolutionary history. tend to think of fish as something well fishy. that we should identify more with them after all our ancestors came from the primordial seas. fish has plenty of surprises hidden in effect scales. in the storerooms of the german oceanographic museum inch trials and is a treasure trove of fish from the depths of the oceans as well as the mediterranean and the baltic biologist t.-mo markets has been doing research here for more than 15 years studying fish from all over the world. using a method known as clearing he looks inside the specimens to examine their skeletons . well nothing really just think of

surge in production now here's a map just to give you an idea of where this is happening this is the permian basin which covers a part of texas and you mexico i'm with say that this part of the u.s. is going to be for the next 10 years the part of the u.s. where the oil supply will mostly be coming from so it will be fueling this u.s. surge that we're seeing right now and alex what the surge in domestic supply how is that affecting oil imports to the u.s. . well when the u.s. has oil that doesn't need oil from anybody else and we've seen that in the terms of a massive drop in imports and here check out this graph it gives you a great idea of what this actually looked like it looks like so according to the e.i.a. in august 2006 the u.s. has net imports of crude oil and petroleum products was over 13000000 barrels a day of oil. and then this past march that number was under 842000 barrels believe it or not so this graph takes you all the way. to 973 so you can see that drop is very vivid in the way that it's happened and alex with us production ramping up so high how what is the effect on glob

champion claiming the number one spot with a win over germany's julia girl just in the final of the permian classic boss your place is now mary sack is the game's leading. sister always a continuation of learning a progressing through every tournament every single match you learn something different in a try and learn whatever i can from all the different experiences so i think taking that into the next few weeks to be really important and roger federer has hit yet another landmark federer beating doubly go fine in the how open final becoming just the 2nd man after rafa nadal so in the same top level tournament 10 times it says 102nd career title is he closes in on jimmy connors also record $109.00 is now targeting a 9th wimbledon championship. every time i won and went on to play really well wimbledon so i think i mean there's never a guarantee of course been on the door for long enough to know what it means and also most important that i know i'm injured free i'm going to have a couple of days off i guess and then get ready 3 games today in the africa cup of nations heartbreak for the may

you need to be rooted in permian because it is that big. the saudis are still drilling.anies are not drilling. venezuela has been taken off the face of the earth, basically. you would say i have to buy halliburton. up 24 cents. it's mocking us. >> in terms of the losers, it's a lot of transportation. >> retail. if you are not our age, my wife spends a lot of money. she is a part of the club. i think it's a club to spend a lot of money. my wife likes country clubs. people -- how is it the dining facility the answer is that it's an instagram temple. it's a temple to instagram. you see everyone instagraming. these are staring. facebook, have we talked about it yet that we haven't mentioned that their e-mails would show privacy violated by facebook. >> you said yesterday we were in a moment of fatigue over facebook regulation. >> i thought that that story was a story that i read. sometimes you see stories. and then the journal -- >> is there an advertiser who says i read a story about e-mails. you can't reach these people otherwise. >> they don't do anything but instagram an

. >> the second half of the year, we will get three pipelines out of the permian. do you see u.s. production and exports in the second half of the year? up.t will go does it go up by 300 or 400 or more? obviously, we expect demand to go up to compensate for that. that's one of the key things that will have to happen carefully. vonnie: ian taylor's exclusive interview with anne-marie. up more than 1.5%. the dow up 1.7%. tech really helping the nasdaq up to 1.9% gains. this comes after jerome powell's comments this morning. a little down take in the vix -- downtick in the vix. guy: europe doesn't have so much tech. some of the downturns over here are less dramatic. the dax is having a really decent day to the upside. one of the reasons for that, the auto sector driving into the upside. umphac 40 has some car behind it. ♪ guy: 30 seconds until the end of regular trading in europe this tuesday. europe does not have as much tech at the united states and appreciate we have seen the blue touch lift on u.s. markets over the last hour and a half. we are up. you can see the

output from the permian basin rising higher since 2017. forecast output from this region will double, jumped 50% by 2025 years if you take a look at the bottom panel. higher, analysts say crude from the shale play will surpass record output in 2020. very interesting to see how opec factors in shale to their decision. guy: absolutely. nice chart. romaine bostick is here. anchor of what did you miss? what have you got for us? romaine: everyone talks about how the equity bull market is the most hated rally in history. if you look at the bond market, you see something similar. i want you to look at the duration we are starting to see in the bond market. the duration risk is being taken. how long an investor has to hold onto an investment before they make a return. 8.32 years is the duration, a record right now. the risk is the longer you have to hold out for the future, that means the greater exposure you have to interest rate risk. we did the math. a 1% increase in yield what a $2.4 trillion loss on an aggregate basis. ,hat seems like a crazy

we have come back by more than a dollar a barrel, but traders will still be focusing on the permian and the white house as well as the middle east. joe: thank you. still with us, alec young of ftse russell and bloomberg's cameron crise. cameron, i want to start with you. trade and the upcoming g20. how much is this important and how much of the recent volatility can be traced to the ongoing uncertainty here? >> clearly very important and a lot of it. given the highs in the s&p. caroline: you like that phrase. >> full london phrase. we were at the highs when the president tweeted his fateful re-escalation tweet after the third of may and we went straight down. i think there is still quite a bit of uncertainty as to what the g20 is going to hold. it is generally accepted that trump and xi are going to meet. what comes out of that is the big debate. do we have a truce? do we have a rapprochement where trump de-escalate some of the tariffs and we have an agreement? i don't think there's a consensus. whatever the outcome is, we should get a move. scarlet: in the meantime, we are going to mud

the permian is more important than china you go to the permian, huge number of trucks they have a gigantic of autonomous trucks, no drivers, for miners they had superior technology and i think if you're trading off of china, go find something else that makes sense this is wrong. this is a stock that you want to own. you want to own it look, there have been times, as hedge fund manager, if there was a tick down, short cat short cat at your own pearl. >> directionally you would rather own it when global capex is not threatening to go negative or pmis are not contracting. >> true, but what i like -- absolutely what i liked about it is the business in america is very strong as it is -- everything slowed right here if you get a trade deal, the stock can go up big, if you don't get a trade deal, people look at the quarter and will be shocked at how it wasn't bad business is good business good because they make a lot more money for whatever they sell because they have really cut costs still spending r&d an executive is saying we're no longer to be at the mercy of the world's growth we have a deal

the permian basin out in west texas, that is making up for the effects of the sanctions on venezuelaan and, frankly, global analysts have figured, you know, all the tensions in the mideast, we're done. they actually thought of this yesterday. but not anymore. the problem is is in this waterway, the key waterway, 30% of the global supply comes out of there. the worry is if this waterway is going to be blocked, how is that supply going to get out. that could disrupt supply, and that, in turn, affects prices. >> and for folks at home, you notice this right away because it will be at the gas pump. you'll see it quickly. >> oil prices make up 71% of the gas price. >> good to have you on. thank you so much. >>> it is deadline day for the first round of democratic debates. which candidates will make the cut? that's coming up. and with new features and richer stories... ...it can show dad where he's from... and strengthen the bonds you share. it's only $59 at ancestry.com. give it to dad for father's day. has been excellent. they really appreciate the military family and it really shows. wit

the good news is, the permian basin is the world's largest oil producer. you know as well as i do, markets react first and asked questions later. that's what's happening right now. >> neil: interest rates are surprisingly low. not getting people overly rattled. that depends if there's an escalation, right? >> it does. i'll tell you, interest rates being this low for so long and continuing to go lower is a concern. the bond market, in my opinion, even though they're wrong, might be the smartest market out there they're telling us something here. it's rates overseas where we have negative rates in many developed countries now. we may be heading that way as well. >> neil: thanks very much. scott martin following the developments. also want to give you a quick look at the east room of the white house, this is an unusual event. the president is talking about giving a second chance to those out of jail that want a second chance. he has with him in that audience some of who have just come out of prison and want that opportunity. he also has kim kardshian with him

the united states has an oil boom going on in the permian basin thanks to fracking. that insulated a shock potentially from the middle east. it insulated stock market. stock market investors should be giving three cheers what is going on in texas which made the united states a net producer of oil and not a major importer. melissa: amen. kristina: let's go straight to gerri willis from the floor of new york stock exchange. break it down for us. reporter: major averages all turning negative. just running out of gas here for many of the reasons your guests just mentioned. but for the week, up across the board. so good news there. talk about the dow winners, boeing, caterpillar, cisco systems. boeing logging some dreamliner orders for the first time since horrible experience with 737 max, confirming eps forecasts despite tariffs. cisco getting a 700 million contract with the government. the story of the day in my view, apple is asking to be exempt from the next round of tariffs on goods from china. why? because, they give the government a lot of taxes. that is at least w

supply, i think about the interview with scott sheffield, the dean of oil ceo's who told us that the permian basin is producing an amazing amount of oil. roughly a decade ago when they were producing six barrels a day sheffield said they could double that number and now the u.s. produces 12 million barrels a day and soonwe'll go to 17 million. no one is predicting that. but the oil market is reflecting that and if it happened it will wreck the market right here and right now even thinking that we're so far away from it, it doesn't work like that it foresee this is and oil, by the way, has entered a bear market. now down more than 20% from the april highs so that is good. in other words, on the fossil fuels, millennials don't like it, in other words it is probably not done going down because there is less demand from a slower economy and hit by supply but the bulls don't care. for them as actual about oil prices as an exhibit of why the fed must cut rates because it said the economy is weak jimmy with our friends the tariffs. the president might be sanguine about the tariffs and that happens

the second half of the year, we will see even more shale coming out of the permian. is a demand and a supply-side. thank you very much. annmarie hordern with the latest on the oil story. you can follow the latest on the terminal. vita for, dolce italian debt. to ward off aok budget pressures from the commission. this is bloomberg. ♪ matt: welcome back to "bloomberg markets" 51 minutes into the trading day. now looking at gains across the board. we had futures down, the markets opened down, and now we are seeing a turn to the upside in terms of the european equity index. we are also seeing u.s. futures turn higher. it looks like the risk appetite is increasing across the globe. the next battle in a struggle between italy and the eu begins today at the meeting in luxembourg. budget -- cou not onbudget defines is the agenda what will surely be discussed as the commission of moves towards disciplinary action. with us is the chief economist -- is a chief economist. what is your take on this? the financial markets have really given italy some help. people are buying bonds

since lifting her maiden grand slam title astray and beating donna vacates in straight sets at the permian classic only 6 women have won the french open and wimbledon double in the same season. the director of the tour de france christie and says this year's race will not be the same without chris froome he says he's become a central character of the tour for the army is breathing a sigh of relief that current champion gerund thomas is fit to compete again he says it's all ok after crashing in the 2 of switzerland thomas required hospital treatment and pulled out of that race staying with the injury theme of major league baseball star suffered a rather unusual misstep during training he put on washington nationals better max scherzer clearly practiced doesn't always make perfect show ended up with a broken nose and it looks like he will miss these teams next game against the philadelphia phillies. ok we'll leave it there to make us go to her business i think cider that's it for me macleod for this news are i will be back in coverlets with another full hall of news to see that from the. fre

annmarie: yes, in the second part of the year, we have three pipelines out of the permian, so a lot ofe. ian: we could see a lift. it will go up, does it go up by 300 or 400 or by more? is certainly goes up and i think that is one of the negative -- we expect demand to go up by enough to compensate for that, obviously, but that is one of the key things we will have to look at very carefully going forward. vitol: that was the chairman, ian taylor, speaking exclusively to annmarie hordern. let's check the markets with our correspondence. dani berger has the latest. and also niraj shah. indian shares slumping today with a little bit of strength in the rupee. how much of this is due to the drop in crude prices? niraj: manus, all of it, i would reckon. good morning to you. holiday. tomorrow is a next thursday we will be talking about policy. but today's session is looking best for what the equity markets are doing currently. so a third of a percent lower. but the currency as you pointed out is strengthening in trade and in a large portion, due to the crude price fall have been seeing. will

and other places that is the new thing that creates a ceiling, right >> yeah, and the cap on the permianu can't get the oil out, but -- so we could go to 14 million barrels a day in the united states if we could get the oil out. we've got two pipelines that are coming online in the next year. >> and that's going to change everything. >> that's going to help. we could easily go to 14 million. the market has sort of already started to price that in plus if opec breaks their production cut deal, 1.2 million barrels a day, they break it, they can't come to an agreement, if they don't, that's another million barrels on the market. that's a lot of barrels. >> you missed the joe eating ribs picture in picture. >> they had it in a double box. >> no. >> so those ribs are a metaphor for opec so there's excess oil, that's the rib, on the market so if you ate those ribs prices would firm up, but there's excess -- >> take one bite. >> andrew eats -- >> i'm not eating on tv. >> do you have a bone to pick with my rib metaphor. >> why couldn't it have been a two-minute package >> we have about maybe 90

shale -- the projections on the permian basin, the only constraint on the government is the infrastructure put on upward momentum. on the downside, some of these producers can hedge and can lock in their future price. but at some point shale becomes uneconomic to bring out of the ground, and that number has been estimated around $35 to $40 per barrel. >> if iran was behind the attacks, what is the motivation? >> it is hard to discern that because you have both sides publicly proclaiming we don't want toward and had no part in this. i don't discount the factor of a renegade actor. we have all these proxy wars being fought -- is there a loose cannon behind some of this? madef the determination is that iran is responsible -- the key for me is you are heading these different vessels but if it ever involves the u.s. naval warship, if there's ever a shot suspectsif somebody the u.s. naval warship, then we are off to the races and the fear factor goes up to maybe 10%. >> john driscoll, thank you for your insights. use gtd energy services director. the trade war is making one of the world's top ch

with oil, the big issue is hikes coming online out of the permian later this year.create substantial downside risk. i want to .1 thing i picked up in russia. there is a lot of focus -- i want to point out one thing i picked up in russia. the question of what kind of uncertainty is tied u.s. oil supplies. david: what is the biggest risk upside or downside? is it shale oil out of the united states? , it is thatmodities supply uncertainty is the big uncertainty. demand, we may have sentiment swinging all over the place. the tail risk on demand is going like this. david: within supply uncertainty , where is that uncertainty the highest? isn't iran coming to terms with united states? oil, europe international you have a lot of -- you have international oil, supply out of canada, brazil, norway has reverse those production cuts they made earlier, and then let's go to the shale bucket. , is thetion people pose drilling in u.s. going to be sufficient to fill those pipes and exports? i think the answer is yes. inventories are building rapidly. then let's go to the low cost.

in the permian basin of west texas, we went from producing a million barrels of oil a day to four million a day, soon to be eight million in just three or four years, making it the most active oil and gas-producing region in the world. the blessings of these natural resources have given us an overwhelming advantage for economic prosperity as well as national security. to ensure we continue these advantages for the next generation, i offer this amendment that would prevent u.s. taxpayer dollars from going to the united nations framework convention on climate change, a costly, ineffective, and irresponsible program that has produced the likes of the paris climate accord. the climate activist veand, mr. chairman, and extreme ideological abuse by the framework convention embraces the view that the only means to reduce carbon emissions is to eliminate conventional fuels which, by the way, power our nation at 90%. this framework is flawed in its assumptions, fraught with political bias, hostile towards our main source of energy, and amounts to a jobs program for ideological bureaucrats and i op

we will ship oil as we drill more and more permian, because there is not enough pipeline ferc is a problemill a holdover from the previous regime. president hasn't had a chance to address ferc yet >> we are rolling back missioemn standards from powerer pla epla >> i interview all the ceos of the major utilities and they're not -- they fear if they do what he wants and a democrat comes in, it will once again right back to what obama wanted. they're not going to change. >> to the point you're making about new york, you got different standards and different places including california and then new york as well that are going to be demanding certain things that are in complete opposition at least to what the administration is currently >> some of the turbine decline is related to renewables companies -- big clients are demand renewables. google, demanding -- they all want no carbon footprint and this is something that -- geez, these executives eric lot of them are pretty sophisticated about carbon footprint they're not going back to coal they're not going back to coal they're not. every coal p

i own the companies like chevron that has a great balance sheet and they bought the permian assets sohave the better growth between chevron and ex n exxon. i like what hair doing in terms of streamlining efficiencies and operations i'm bar pelle belling it wi bar and -- on any given day they're up 5%, 6% or down. i like to barbell it i'm not convinced we're off to the races in energy at this point. >> just want to ask you about some of the big tech names where do you stand on the political risk they're facing? >> thanks for bringing that up we have thought there's a lost political risk on this if you try to come one one topic the democrats and republicans agree on you have a hard time coming up with it. but elizabeth warren and donald trump both agree that the tech companies are exhibiting too much power i think we've absolutely got a risk here that the government goes after amazon in particular, google and facebook secondarily, for exercising monopoly power. and that may not be right economically but i think it is right politically and i don't think it is factored into these stocks >

this going to make it even easier to ship from the permian basin in the months and years ahead.o again, it's really remarkable to me. i think 10 or 20 years ago i would be sitting here today saying this could be the kind of thing that could cause a recession. and today i'm saying if you look at what happened at 10 year treasury yield, stock prices, oil prices, it doesn't register on a one month or three month basis, if you look at charts over one or three months. you don't even see this event yesterday. dagen: we are the world's number one oil producer. we produce more oil than even saudi arabia and russia, i think based on the most recent information, and oil is still -- even through yesterday's close, it's still down in a bear market, it's down more than 21% from the recent high hit in april of this year. i want to move on to tariffs, hundreds of american companies including walmart, costco, target, sending a letter to president trump, writing against tariffs. the white house economic advisor larry kudlow speaking yesterday about the upcoming g-20 summit and potential meeting

supply as josh pointed out is the wrong oil, coming out of the ball -- balkin and permian and today you metric here. the market can deal with higher oil, help on inflation front which makes them feel better, u.s. manufacturing industrial sector has been hurt in pullback in oil that we have seen, that generally, our industrial complex relies partly on oil, generally we think higher oil is okay for the market. it's not like the old days where we were huge importer of oil. maria: that's right. it's interesting because we see high-level of oil, that's either reflecting economic growth that's stronger or it's actually about to be an indicater to cut into consumer spending to take the economy down. >> you're saying things have changed because of the americans' position. >> one more of net exporter than exporter, actually our whole way of thinking is different about oil right now, higher oil is different for us and these prices where we are now don't reflect an improvement in global demand which if we get trade deal at some point it's not ifened that should pick up too. maria: important point

approached by chevron, but what many people may not know is that a lot of that anadarko property in the permianacreage if and when occidental completes that deal for anadarko >> i think probably nothing much will change immediately on the ground indeed, we are in what we call an ami, so it is an area of mutual interest where we work together and you know, occi most likely then will step into the shoes of anadarko we know occi well. it's a good operator and we will have the same arrangements as we would have currently with anadarko going forward. probably a different level of sort of capital planning, different levels of collaboration, but we have to see how it plays out but fundamentally, nothing changes to the acreage. >> occidental bought anadarko in part because they're neighbors they talked about that, vicki hollub, they're neighbors. you're not just neighbors, you live in the same house why didn't you try to buy anadar anadarko >> we look at things all the time, but i make it clear that to make a deal, we had to be very disciplined with our capital and said we will not spend more than $25