many of those accidents involve shipment of oil from north dakota am bakken region.ver the last 18 months, dozens of trains have derailed, six led derailments and fires. some communities are taking matters into their own hands when it comes to monitoring what's traveling through their cities. they're forming train-watching groups. allen schauffler visited one, in everett, washington. he has this report. >> monitoring tracks just a few feet from public buildings. >> how many people here? >> 100,000. >> reporter: when he found nobody could tell him exactly how many of these trains rolled through town he organized volunteers for a week long train watch. >> everybody seems to be turning their back on this problem. so we feel that we as citizens have to do it. >> reporter: they counted 16 oil trains that week carrying an estimated 52 million gallons of crude from the bakken oil fields of north dakota. just two years ago they might have seen a few oil cars mixed in with other cargo but none of these 100 car unit trains with the 1267 placard denoting bakken crude. >> the fi

. >> they counted 16 trains that week carrying an estimated 52 thousand gallon of crude, from the bakken oil field. 1267 placard denoting bakken crude. >> the first train moved into washington state in september of 2012. this is new for almost the entire country. >> eric admits he would like to stop everything that expands our use of fossil fuels. he sees railroad trains as rolling bombs. >> you're looking at 3 million gallons of potentially explosive fuel. not something that railroads are stepping up to deal with. >> railroad spokesman gus malonis says they do step up. he cites bnsf efforts, better train cars. >> right now there's a demand and we move the products that america demands. >> railroads hauling bakken oil have been ordered by the department of transportation to provide information about how often the big trains run and how much they carry. information public over. >> for security we do provide it to the people that need to know. >> dean smith and his volunteers are hardly alone in their efforts. vancouver, washington caichts as are encouraging twitter reports. rail line blas

there are thousands of these flares on fire across the bakken. there's so many, in fact, astronaut ves captured images of this flaring from outer space. why are we seeing this? we see 11,000 wells focus on crude oil, which is more valuable and can be transferred different ways. but the gas that comes out requires pipelines. they're at full capacity so they have to burn off this natural gas. it's sparking chas action suits as an estimated $100 million worth of gas is wasted each month. many of these flares are on residents' properties like tom wheeler whose hay field i'm standing in right now. tom is not taking part in this regular paycheck or drilling in his property. but he hates to see this resource wasted. >> it's a waste. there has to be better ways to do it. we're easy to get along with. don't lie to us. we're not asking for the moon. we just want to be treated fairley. >> so last month, north dakota passed new flaring standards by october. at least 74% of gas generated at existing wells must be captured. the industry is already close to tha

this is a part of the mystery play here in the bakken. production is ramping up so quickly. infrastructure can't keep pace. they put out a recent note saying pipeline companies and crestwood mid-stream stand to gain as more investment goes into infrastructure into these pipelines. speaking on that, take a look at. that that is a natural gas flare-up. that's being burned off because there is not enough capacity in the pipe lean for it. long term, more pipelines will help that situation. short term, drillers are getting creative with what to do with that wasted natural gas right now. so stat oil, for example, has teamed up with general electric and another company out of canada. they're compressing their natural gas and turning it into fuel to help power thee ricks. >> that is one way folks are starting to get a little more creative with how they're using this burned offer natural gas. back to you. >> all right. thank you, morgan brennan and the use of natural gas appears to be booming in texas. the railroad commission says natural gas sales in that state have already doubled

so the industry seized upon us tight loyal production in the bakken fields and the eagle ford play in in south texas as as evidence that. a game changer with technology we had solved the problem of peak oil and with hydro fracturing and horizontal drilling we'd be able to produce enough oil for not only the u.s. but the world to enjoy you know plentiful supplies for decades to come now the evidence is not really there to support those conclusions but nevertheless u.s. oil production has increased by about three million barrels a day in the last last three four years and that has basically saved our bacon in terms of the economy if it hadn't been for the increase. us tight oil production world total oil production would be flat to slightly declining right now and we'd be seen much higher oil prices and the economic consequences of that which would be inflation precession the things that we saw in the seventy's after the oil shocks when the arabs got us off the right well. you look back historically every time we've had an oil price spike we've had a recession as a result or were accomp

you know, as you recall, jim, that day we were flying around in the bakken and i felt confident and atame time i felt brash that we could at some point pass the prudhoe bay production which was in the 600,000 barrels a day and if you look at where the bakken is today we're over a million barrelses a day in just a few short years. it's fundamentally staggering and you look at the success of the eagleford and a lot of the new plays which we're involved in and we just think that it's a great space to be in and we're just honored to be a part of it. >> i want to thank you. i want to thank you for educating me, too. you were one of the people that opened my eyes to what's happening in this country and are you in the sweet spot. what a company you have. rick moncrief, thank you for coming on the show. >> this is it. i just looked at this company and i could not believe that this gem of a company is being run by one of the great executives. it deserves to be even higher than it is. wpx. "mad money" is back after the break. >>> it is time -- it is time for the lightning round on cramer's "mad

they are picking up, starting can do but who also dig up some bakken and other oil as well.o it involves the practical but they did they figure it out or they realize, this would take forever, the politics is local, the politics is over but with the done instead is they have adjusted her instead of waiting for the pipeline to be developed what are they doing? syndicate on rails. that's much more dangerous reversing issues now, fires and such because this is all sort of a new trend, new evolution that were learning this oil coming from the bakken is quite combustible and more dangerous than your traditional. but there send it on rails right now and that's why warren buffett, he owns a remote and they're making a fortune. so they've adjusted to the frackers it said were not going to wait all day or years for keystone and we're going to start send them on rail. because keystone has been built, there's more used of rail to transport oil which is disturbing to me. i would argue the conventional wisdom to talk to people is they will produce this stuff anyway and those in the summe

this scenario is playing out across the bakken and there lies the issue. more natural gas is coming online than the current pipeline system can handle and that's why drillers are forced to flair. across the region, thousands of wells are burning so brightly that astronauts have captured images from space. the flair rate here is 30 times higher than other producing states like texas and alaska resulting in more than $100 million worth of gas wasted each month. >> if you look at the value chain, 95% of the value is in the oil. the gas is 5% of the value part. the revenue side. >> reporter: last month, north dakota passed new flaring standards. by october, at least 74% of gas generated at existing wells must be captured. a number the industry is close to but a rate that will increase to 90% by 2020. they are searching for short-term solutions. the answer is a partnership with general electric and gas logistics company. they are compressing excess gas and storing it used for a stat source. >> we're lowering emotions and we're burning the cheaper fuel because d

the reason for that as a lot of these formations especially shale or bakken limestone is very narrow. you really have to go down horizontally to unlock it. kim was the first in a company called continental resources. they weren't the first to do horizontal drilling but they heard about it and they were among the first and they set off let's combine the two. let's drill down horizontally and [and see if they can get oil. so hamm restocked lands, all kinds of acreages to north dakota and put the largest lease owner in the state. they spend from 2002 till around 2006 working on it. it didn't work. they weren't making much progress. by then they said you know we are running out of money. so they went to sell the acreage and they couldn't find anybody. big guys ignored him, middle guys and little guys, they all ignored him. he said to his crew let's pull back and pull down our production and conserve money. that is what they did and they started to make it work. they started to see oil flow from his rocket north dakota. in 2007 they sold stock. i've helped them that there was one guy named

enterprise be value -- enterprise value, and it's got some interesting oil interests, and, you know, the bakkenunty and montreal county in north dakota. so we think it's an interesting asset, light way to participate in the oil and gas boom in north dakota. adam: i also notice you've picked staples here, and they're down year to date 30%. sounds like this would be, perhaps, the time to get in or still holding out? >> well, you know, again, we're driven off of business valuation and a conservative estimate of what we think, you know, a private market value would be for those shares. we come up with a $14 valuation. again, you're paid to wait with an attractive dividend yield relative to the s&p. i think what a lot of people miss, they're certainly closing down bricks and mortar that are unprofitable, but north american delivery is the second largest business after amazon. and so i think there's always going to be business supplies. it's a question of whether amazon's going deliver those or staples will. in our view, we think staples is a way the play that. adam: let me clap up with you real quic

those two are bakken plays, so -- keep an eye on that. retail target lowered its outlook, i think it's more than a hit from the data breach. walmart, costco, tjx only down a little bit, but we've seen target down rather notably today. let's move on. you wouldn't think there's a lot of worry in the restaurant business. bloominbrands, they lowered the numbers greatly, but look at the rest. they don't seem very worried about it. they specifically talk about business being down despite general weather. everyone seems to be giving everyone is pass here. >>> very interesting story, we just had about what's going on in the high-yield funds. there's avis, by the way. renting a car this summer? you're going to be paying a lot more. >>> these high-yield funds, here as the problem with them. during times of high volatility, high-yield bond funds tend to act like symptom funds. that's one of the reasons we saw they funds hit. when you get that volatility, they tend to act like stock funds. >> depending on which one you're in. >> it's not necessarily

north dakota's bakken, we visited there. colorado's where i'm tempted to go.exas' permen basis and the utica shale and then the marcellus in pennsylvania. for years i have been telling you that this increased production means that there's some incredible growth opportunities. we don't have enough transportation capacity. and then the demand for new pipe is enormous. not just new pipe. the whole pipeline market has begun to shift. for decades we piped it from north to south. down to the louisiana area. thanks to all the gas from the utica and marcellus, many are going north to south where the stock can be made into a lot -- the stuff can be made into plastic and butane and shipped overseas. here's the thing. it can cost billions and billions of dollars to build a new pipeline. you see how hard they are to sight. all the growth opportunities are the reason why i expect to see an enormous amount of consolidation in this industry. with last night's move by kinder morgan signaling that the time for deal making has arrived. in fact, rich kinder said he's consolidati

there are throughs of these flares burning across the bakken right now.nauts can see them from space. drillers are flaring because so much oil is coming online and with it natural gas that the infrastructure just can't keep up. the focus has been on crude, which is more valuable and which can be transported a variety of way, but nat gas moves by pipelines and that network is at full capacity. so drillers have had to burn what they can't well into that system. it's burning 30% of the bakken being proud each day. that's a loss of over $100 million a month. the state is implementing new rules aimed at decreasing flaring to 10% by 2020 the oil and gas is scrambling to meet these new guidelines. even at a 10% rayes rate. that's ten times laernl than other states like texas and alaska, so this flaring situation has a very long way to go and probably spark a lot of innovation among the oil and gas producers moving forward. back to you. >> wow, light and heat were incredible there. morgan, thank you. up federal government, the final thoughts. the president and st

bakken shale. 10% of the company. >>> coming up, every nfl player will be sporting through technology in their shoulder pads this season. we'll get a live demonstration from the ceo of zebra technologies. >>> one of our traders did not see it coming. how joe terenova is managing his losing trade. that's next on "half." >>> the 2014 playbook playoffs. seven cutthroat traders. locked in a big battle to prove whose portfolio will come out on top. taking profits, adding to their positions all in the quest to be named trader of the year. find out who's leading, who's lagging. and who's ready to make a move. track the trades online at cnbc.com/2014-playbook. in today's market, a lot can happen in a second. with fidelity's guaranteed one-second trade execution, we route your order to up to 75 market centers to look for the best possible price, maybe even better than you expected. it's all part of our goal to execute your trade in one second. i'm derrick chan of fidelity investments. our one-second trade execution is one more innovative reason serious investors are choosing fidelity. call or

because of the bakken shale fields and because they have technically-skilled people.d people. that is the answer. by the way, you should be in the stock market if you want to make money. stuart: very good, michael. that's good. next up, the company's name is exact sciences. it is a winner. what is going on, nicole? >> a lot of people would go for colonoscopy to detect colorectal cancers. they have something called coal low guard. for people age 50 to 85, respectively. one time every three years. you send your stool n they have had great success rate. the stock is jumping earlier today. off the highs of the day. still up 5% you have to get a recommendation from the doctor. they look at stool closely and detect if there is any signs of cancer. stuart: michael, tesla, the model. is, it has more than its share of problems according to "consumer reports." would you buy tesla's stock now? >> yes, i do. i own it myself. i would buy it now. i'm in it for the long haul. they're gearing up for the gigafactory to produce 500,000 vehicles. they will put supercharger stations thro

ibaka in jail -- the bakken shale boom. sioux falls south dakota is a finance capital.ennis daugaard , governor of south dakota. what is the good news? with businessing is headquartered here but have presences in south dakota, talking about the possibility of expanding their facilities there or adding a new one. things are looking good. net inflow ofas a population for the last 10 years. this is important. if not with shale, what is the way you grow a state? >> we have a pretty diverse economy. agriculture is a strong sector. thanks to citibank's move to we have as in 1981, strong financial services sector. we should have about half of what we have proportionally, we have about what twice the national average would be for a place of her size. we have advanced manufacturing nation has lost manufacturing jobs, we have gained them. >> one of the most important books i've ever read was on the peopling of north america. you people are a triumph to the recompilation of the midwest. -- of the repopulation of the midwest. there was a population declining you have reversed that.

>>> welcome bakken apple closed at a record all-time high friday despite rumors of the delay of the iphoneof outperform and anticipated launch of the phone, apple favorite on wall street. for more clarity how high apple can go, let's bring in jeffrey, maintains a neutral rating. good morning. >> good morning. a lot of people in the springtime said, watch this name historically it tends to trade well during the summer, leading up to a launch. has everything pretty much gone according to what you thought would happen? >> yeah, maybe even better. talk obviously of them using expensive components like sapphire screen, people worried about litting gross marriages and that hasn't come through. talk of the 5 1/2 phone on a staggered launch, a strong march quarter and march ends up being weaker. positives have given validity to the run. >> what happens now almost at 102? >> the stock holds in. the rule's to sell on the news, maybe we can hold in until march. but the fact of the matter is, perhaps the i phone 6 bringing through pentup demand, people moved to installment plans in the u.s. and the qu

he says, look, we happened to discover the bakken oil shale. that was luck. woes run the company since 1967. he owns 70% of it. he is the chairman and ceo. his leadership alone going from 65 to 154 him i am told a final deal could be between a billion and 2 million, to be the post-expensive ever, it would have to be 4.5 billion. >> i love this story. normally it's for people like myself that have to do an analysis to determine whether your returns are based on skills versus luck. so i'm actually intimately familiar with how to do the analysis of this. >> using your professional diagnoses. >> yes. >> would you say haroldhamm. >> this is skill. he has done it too many years. there are too many data points. also the test is can a basically a layman achieve the same skill? it's clear based on other companies that they aren't able to achieve that success. >> based on the fuse, robert. >> it will be a big sentiment regardless of whether it's 1 more 4.5 thank you. thank you guys this average. i appreciate it. "fast money" is coming up with melissa lee. what's on tap