because these fields like the bakken and eagleford are mostly held by production today. so you slow down, not lose leases and harvest it when the economics come back. >> will there be a big decline in the most exciting part of the job growth in the country which is oil and gas? >> there could be. >> could be. >> people will fall back a little bit and cut back. even though we raise cap ex because we announced the springer play. >> right. >> and oklahoma huge good play. and along -- it's overlaid -- overlaying the wod woodforde play but a lot of people lost that a little bit and talking about the bakken they say is the largest bakken player liky mentioned. >> i'm looking at your cost the excellent margins note and total cash costs first quarter, 18.76 to. me there is a lot of money being made even at these prices. >> there is. with e have good position. and we'll make money when everybody else can't in a lot of our areas so it differs by operator. >> good point. >> so the same break-even by some won't be the same as others. >> that is important. >> now what do you think is

. >> the state has confirmed an average of three trains a week caring bakken crude oil are travelingrom south sioux city through fremont and lincoln by rail. does this raise safety concerns for you and does it affect your thinking on the keystone xl pipeline which could carry some bakken crude oil? hassebrook: you know last week the university of nebraska came out with a study come the university was charged to look at climate change, the extent of climate change, its causes and its implications for the state of nebraska. they release their report last week and they said the scientific debate about climate change and the extent to which burning fossil fuels is contributing, the scientific debate is over. the scientific research is overwhelming that the use of fossil fuels is contributing to climate change. we know that burning oil and developing oil in the tar sands region in canada contributes far more to climate change than our own domestic crude oil sources. that's one of the reasons i've oppose developing the keystone pipeline. i believe we have a responsibility, a moral responsi

some are higher like bakken. $70 will give producers a grave conccrn.p in mind most are heavily levered up. they have a lot of debt they're if they're not hedging they're in expensive area. $70 is expensive area. bakken, $12 a barrel on rail. taking deductions, this gets expensive real quick. melissa: it does although i had this argument with someone last month. you would have to go there to sit there for a prolonged period of time to have impact. >> that's true. melissa: do you think we're really going below 70 for prolonged period of time or having a respite here? >> if you asked me that two days ago i told you i don't know. i got a sigh of relief with the oil with floor above 80. we dippee delow 80 few days ago we had concern we wouud hit 57. some producers, smaller guys, can they weather storm if oil goes below 08 and stay? some guys may not. gives an opportunity for bigger guys. 80, to $58 oil i think we have range-bound going forward i think we all can make money and momentum will continue. melissa: you're saying 70. -@citi said the number is clos

. >> the estimate of what it costs in like the bakken, it can be up to ten times higher. >> right. >>at a certain price point, you know, you have shale producers in the u.s. who would have to rethink huge levels of investment that have allowed expanding production. >> so the idea that we're going to enjoy cheaper gas at the pump, which everybody likes, and that will help our economy so much, could cost us long term, because it could shut down some u.s. oil production. >> gasoline prices have already been falling for 14 weeks. $0.10 a gallon, let's say. they could fall further. for oil producers who have been on a tair, it's potentially bad news. they are looking at close to $80 a barrel, where that gets close to their paying point. >> and that is some of the market collapse we have seen -- some of it is energy stocks. >> absolutely. >> so is saudi arabia, putting pressure saying we'll take a bit of a cut to make sure we're possible. >> i think saudi arabia is the kingpin of opec. they have welcomed in the past the advent of shale drilling. more oil will help balance markets, but they

we have other pipelines to carry bakken. where to make sure they're cited correctly, they are cited, not going through the headwaters of the mississippi. pipelines are a more efficient way than rail in many cases. >> as much is about to move onto the next issue i do want mr. mcfadden to address the chinese steel issue. just very quickly, 30 seconds. mcfadden: the difference between us is i will talk straight to you. i will talk straight to you. i don't want to see foreign steel used in pipelines any more than senator franken does. he doesn't want you to know that he's voted against the keystone pipeline, period. that's fact. he has voted against the pipeline multiple times. i will get the pipeline built, and by taking advantage of our energy renaissance is the number one way to make u.s. steel as competitive as it possibly can be. i know that. i know that and i will get it done. that's a promise. >> nine long years, maybe 10, ultimate has been working to get permitted and start mining copper and nickel and other precious met

in the bakken oil fields, nobody's talking about minimum wage. they're talking about jobs and economic prosperity, and things are happening. in and the other thing, too, is, you know, representative nolan talked about common sense solutions. i hope that single-payer government-run health care is not a common sense solution to what we need to do with our health care economy. >> moderator: thank you, mr. mills. mr. sandman, would you care to respond? sandman: well, once again, we've got to have it affordable. i talked with some people here about three, four weeks ago, and just to make a living this young man had to work three part-time jobs. that is not acceptable in a country like ours. he could not afford to have the insurance. so it needs to really be looked at, analyzed, taken apart and make it affordable for everyone. no one here in this great state or in the united states should have to work three jobs at minimum wage and still suffer. no one. this is supposed to be the land of opportunity. i don't see no opportunity there. at all. >> moderat

it will be hard to bring those welders back to the bakken or out to the eagleford in south texas.ot easy to do that. david: national average of gasoline is about 3.19. a lot of people are spending much more than that at the pump. why, when we see the dramatic drops in the price of oil, why does it take so long to it had the gas pumps? >> well, everybody blames oil companies. oil companies once a day or twice a day, they set arak price. those numbers move all the time. they have to stay competitive. oil companies change on regular basis. retailer will keep his price up as long as he can, until the guy down the street get as cheaper load. he lowerses his price. eventually catches up, but the issue is not with the oil companies. they do lower their prices on regular basis at the rack. retailers will take as much time as they can. liz: wait a minute, sometimes the oil companies are retailers, bp, exxonmobil, they're integrated. >> they don't own the stations. they franchise those out. those are franchises. they do not own the stations anymore. they do not own the land. there may be a

but it's around $70 a barrel for a lot of the big oil -- bigger plays such as bakken or eagleford where would start to see reaction on drilling activity. >> so quite a ways away from that. in terms of the companies most poised, because if we believe the shale boom will be larger than expected, who will benefit? >> well, i think the producers that you would see benefit from some sort of step out in technology would be somebody like a continental resources or eog and pie they're. they' ar pioneer. they're looking for how to tease more oil out of the ground. if they find those break through, i think they would benefit. >> do you think the market really has this priced in terms of the mar beggin up side or ifs not eog or some of the other nam names? because i think liquid is where they have the up side. >> i think margins probably are fairly well priced. i think what the market is probably looking for is what happens, what is the market response to those tstep outs in technology. if you oversupply the market and put downward pressure on prices that's where i'm not sure the market has priced

because the rail cars are loaded with crude coming off of the bakken. we need to go forward with the pipeline. they can do it safely. we need to go forward with the keystone pipeline. our economy depends on. you cannot be for jobs and kids the activities that create jobs. >> moderator: thank you. mr. sandman, your opinion, position on shipping oil and pipelines. sandman: that's a hard decision for me because whether proposing to put that pipeline at runs underneath a lot of water, runs underneath a lot of wetlands. and if you watch the news, there's been all kinds of toxic spills up there. is the science safe enough? i don't know. i don't think so. i know the president just the other day, or someone, i may be wrong, talked about getting new tankers. why not split the bat? some for green, some for farm products, some for the oil. but definitely reevaluate those routes that they are talking about the i know we need oil, but at what cost? how is it benefiting us? mr. mills talk about some tax revenue coming through. will that outweigh the still if we have

blend some bakken into louisiana light.an't take a half a million dollars of sludge in saudi arabia turn it to something useful. saudi arabia has russia in their sights. that will keep pressure on oil prices and keep it on brent. wti will keep going until economics don't make sense. those that are drilling already will pump. david: bob, thanks very much. >> "willis report is coming up next. thanks for being here. david: we'll see yoo tomorrow. gerri: welcome to the "willis report." we begin tonight with break news. the cdc just announcing additional ebola guidelines. the agency introducing four new categories of risk from high-risk, those with direct contact with patients in west africa, to those with no identifiable risk. with more, peter barnes at the white house. peteer? >> that's right, gerri. what the cdc is trying to do here is categorize levels of risk depending on possible exposure to ebola patients. and then appropriate responses. it is recommending appropriate responses to those less of risk. as you mentioned, the

we have seen this in north dakota with the bakken shale deposits in north dakota. five or six years ago there was probably no oil moving high oil in north dakota. had a dark 7000 barrels a day moving by rail in north dakota. until there's more hype line infrastructure but that will continue possible even go. >> what we are talking about with the review is for the approval of a facility at the border, not importation of the oil. is the infrastructure exists to move it then you don't have a problem under these executive orders. >> in terms of pipeline versus rail or rather other means, our committee is neutral. what we are essentially saying is a decision should be made by putting him on the scale by making it much, much harder for one form of infrastructure to be built. that's what we would like to address. >> it's an issue of timing as well. i know this as a process you want to get done but canadian critics have said were stretching the time after this, we are adding more processes, we are taking too long. it should be a no-brainer as we heard on the earlier panel.

the bakken shale has been a gift and keeper gas prices will be great in some ways for the economy but for the energy producer not so good and clearly shake up the models people had going into this year. >> thanks. >> thank you. >> kate kelly. if crude oil will stay cheap for while what does that mean for gas prices? to jackie deangelis at the nymex. probably means they're going lower. >> hi there, that's right, that's what a lot of people are saying. as we're watching these oil prices fall we also see -- are seeing gas at a four-year low. your take on this in terms of the drop we've seen in gas prices, 18 cents in the last two weeks, do you think that these levels around $3 are sustainable for the next couple of years? >> jackie, we do think they're sustainable and goldman, a lot of smart folks came out with that call, calling for lower oil last thursday but think about it the crude oil prices about a 66% correlation to the gasoline. 66% of that is refinery costs and as we see that price at the pumps it will give relief to consumers but there is a deflationary undercurrent and consume

we're so excited about bakken shale, and for good reason, but at the same time there's not a good demandism to get it offshore. >> can stocks rally if stocks are going lower and caterpillar doesn't beat. >> they can, but whether they will or not, we don't know. we took a head -- from qe in europe, quack mire -- and they're going to do something in europe, and then we got excited and realized they're not going to do anything in europe. >> is that true, dan, that they're not going to do anything? >> listen, i think they're fishing around, trying to do something. you need to look at the corporate bond market. >> i've had it with europe. i've been listening to mario draghi talk and the germaning go, i don't think so, we'll have a talk about that. >> we got to go. >>> more to come. in fact on "fast money" in just a few moments. i'll take it from here. "fast money" starts right now, live from the nasdaq marketsite in new york city, the trader are dan nating. pete najarian, signs of weakness in this market, dow component boeing driving down the indent. weep have the latest on that stock coming

weiland: the 10% demand talking to folks exploring and pulling out the bakken sweet crude? no. big oil is a conspiracy going on between keystone and mike rounds wanting to build this pipeline. the folks out there want to send it to the east coast. they don't want to senator pipeline to texas and over to china. it's not about jobs. it's not about energy security. certainly not about bringing up grain cars to move our corn and what it's about frankly and at the end of the day do you know what this is about? it's about greed. it's about greed and making millions and millions of dolla dollars. >> moderator: thank you mr. weiland and we need to give mr. howie a chance. howie: you have heard that 60% of south dakotans approved of the pipeline and what tells that is 40% don't. i believe both -- >> moderator: 30%. howie: the undecided business has a lot to do with the leadership we have seen in america and frankly in south dakota of late. i believe if we are going to be productive and effective we need to have leaders that we can believe instead of the old argument about information an

. >> more oil is coming to california by rail and about one-fifth is highly level bakken crude oil.fter disasters come explosions also in the custom state lawmakers have made some against improve public safety. i really it's a federal issue. what would you do to increase the state of rail cars moving through our community. >> it worries me because those rail cars come right down the middle of sacramento, right down the middle of elk road. if one of those cars were to let that would be a disaster. we've been pushing the department of transportation and more transparent. we need to let them know when those cars moving through. yes, i support working with the state and with the state of california is doing in terms of increasing standards. first and foremost we got to keep our communities safe. if these timebombs are going through our communities, at least let us know when they're coming through. i think we've got to think about how to make this more safe. >> moderator: mr. ose. ose: i actually support the legislature's efforts to advise communities of the safety questions. i've seen e

you're talking about has been sent over to him very in atlanta, or if there already is one -- in bakkens that has become the model of which would be putting together for elsewhere in? >> emory and the hospital in nebraska have very some protocols and experience trading ebola patients. we are reaching out to them and as your earlier, two nurses from emory our on site helping them. and these are two facilities and but all working together to learn what works best and what's most practical to stop ebola in the hospital. before i make any concluding remarks, dr. lakey, would you like to say anything? >> well, thank you dr. frieden. and again i really do appreciate the teamwork, the support from the federal government and the response right now. in dallas. the epidemiologists are working really, really hard to map out who need to be monitored, monitoring those individuals and hospital is working really hard to make sure our patient gets the best care possible. we are doing everything we can do to ensure that this does not spread further from the individual that currently is infected in anywa