brian is in bakken in north dakota.re somewhere between 40 and 80, $70 per barrel is what you need price of oil to be at for the wells to be profitable. canada is $50 to $100. let's show you the rest of the world. brazil where there is deep water they need $70 plus oil to be profitable. look at saudi arabia. $10 per barrel is what they can do when it comes to how profitable each well is. this is a very different number than the break even for budgets. they have all of this oil coming out of the ground. they love to spend the money that comes from it. saudi arabia in order to balance the federal budget needs oil at $99. russia $100. nigeria $126, venezuela $162, numbers according to deutsche bank. >> when you look at some of the numbers -- michelle stay right there i want to bring in another voice. it almost feels like strategy of letting the price go is potentially mutual destruction. >> if saudi arabia lets this price go to $75 for three years their reserves will be gone. people talk about the saudi reserves. those wil

why is it harder for the bakken stocks? two reasons.ng to bring those both to you after the break when ha "halftime report" fast money returns. you can bring back a lot of things from a trip around the world. but you can't always bring back customer data. because many customers don't like it when their data moves around. can i go now? if you're going to do business globally, you need a cloud that can keep your data where it needs to be. today, there's a new way to work and it's made with ibm. ♪ my baby drove up in a brand new cadillac ♪ ♪ my baby drove up in a brand new cadillac ♪ ♪ look here, daddy, i'm never coming back ♪ discover the new spirit of cadillac and the best offers of the season. lease this 2015 standard collection cts for around $439 a month. we're for an opens you internet for all.sing. we're for creating more innovation and competition. we're for net neutrality protection. now, here's some news you may find even more surprising. we're comcast. the only isp legally bound by full net neutrality rules. for the shale revolu

i am here in north dakota which is really the heart of the bakken shale.to go into the oil story and some of the story lines that maybe we have not talked about yet enough but we will. >> that is exactly why we have sent you out there. don't go licking lamp posts. let's take a look at what is happening in the markets before we get to what

select areas for them in the bakken fabulous. marathon.t you mentioned, as well. >> mike, thank you very much for joining us. good to see you. >> thank you. >>> we're going to go for a quick break here and will be back in a couple of minute's time. you total your brand new car. nobody's hurt,but there will still be pain. it comes when your insurance company says they'll only pay three-quarters of what it takes to replace it. what are you supposed to do, drive three-quarters of a car? now if you had a liberty mutual new car replacement, you'd get your whole car back. i guess they don't want you driving around on three wheels. smart. new car replacement is just one of the features that come standard with a base liberty mutual policy. and for drivers with accident forgivness,rates won't go up due to your first accident. learn more by calling switch to liberty mutual and you can save up to $423. for a free quote today,call liberty mutual insurance at see car insurance in a whole new light. liberty mutual insurance. i have $40,ney do you have i

. >> let's bring in brian sullivan who just got back from the bakken in north dakota. gentlemen, exxon ceo is comfortable with $40 a barrel oil. i guess partly if you are exxon you can be. >> sure you can. first off, exxon buys a lot of oil. they are in upstream and down stream. also think about this. if oil stays at these levels and if our reporting for the bakken is accurate they might have to start selling assets on the cheap. who do you think would be ready to start picking up prime assets on the cheap? exxon, chev ron, the big players that have excess capital. >> he said they are already doing just that buying resources in the bakken because it is one of the newest big finds in the world these days. >> a well will cost you about $9 million to buy and start the well. it was $6 million five years ago. the operating costs have almost doubled because of the -- fracking makes things cheaper but not the land leases and not the labor. >> where do you see oil? we will play a sound byte in just a minute from another oil executive. where do you see oil headed in light of th

more than the bakken shale.been more of a growth industry than even oil and energy for the last couple of years. >>> sony pictures the victim of a hacking attack. little orphan "annie" may be suffering. and then we'll reveal the three companies we think will be cyber monday's big winners. we're back in a moment. financial noise financial noise financial noise financial noise i'm just looking over the company bills.up? is that what we pay for internet? yup. dsl is about 90 bucks a month. that's funny, for that price with comcast business, i think you get like 50 megabits. wow that's fast. personally, i prefer a slow internet. there is something about the sweet meditative glow of a loading website. don't listen to the naysayer. switch to comcast business today and get 50 megabits per second for $89.95. comcast business. built for business. >>> welcome back to "squawk box" this morning. take a look how the market is going to set itself up on this cyber monday. coming back a little bit. dow jones looking like it wil

the bakken oil is like nigerian crude. we backed out a lot of the june crude since we've been producing in the bakken. we are probably going to have implications for nigeria and the north sea because that's -- the eagle ford is unusual. it's much, much lighter. it needs to have the condensates stripped out of. so even with the light oil categories is a lot diversity we have a lot of information about. >> thank you, mr. chairman spent this time recommends that children from kentucky for five minutes. >> thank you very much, mr. chairman. but i think all the witnesses for the testimony and knowledge. i've learned a lot but i'm still not sure where i am on this issue. i'm curious can we talked about the potential downside and while everything looks wonderful right now with an abundance of oil and petroleum in the world and prices down that would seem to be mitigated against worrying about a crazy, but isn't it entirely possible that we could return to a 1970 situation? i was a staffer here in the '70s and remember those lines

the mentioned the bakken. it's anywhere from 5 to 9 dollars off. we have only cruelty oil blends. so that indicates that we haven't found the bottom yet. >> where have we not seen the impact? we have seen is the shell producers get obliterated. their stock is already down significantly. >> well, i don't think the consumer has really seen the impact yet. we are going to get this incredible dividend. the different will range between 75 billion and $110 billion next year. if you're in new england. it's a great place for an out. you will spend $and we will see it -- we'll see that infiltrate, and lower food prices, and diesel prices are actually much higher on the board than what the truckers are paying right now. >> as it works its way to the economics. by a restaurant, let's say. how does that work? >> they're not benefitting right now. december and january are always lousy months for refiners, but marketers, people in the retail, if you're in gasoline retailing, it's beaucoup, a renaissance. they're proving it up -- so that will be a real hot commodity. >> just an alert. we are see

brian sullivan there in the bakken. >>> for more on oil, let's bring in art hacken.glam, the volume has come back in, the price of oil has moved off its lows and i think we're up at least 6% from the bottom of that trough to where we are now though clearly the level is a concern for many people. >> yeah. no. i think the markets in general are feeling around trying to find out. is i don't think anybody clearly knows what the costs of production are. markets are feeling around for that. there is some sense here that we could be building some kind of bottoming process in oil maybe somewhere in the mid to low 60s. we'll wait and see where they are. then of course the technicals you bounced off 20 -- there's a support band in the s&p, 2048, 2051. that allowed you to bounce a little bit. you've gotten some things going. as you aptly point out, volume is up a little bit so far. >> after the holiday. you would expect to have had some exaggerated price moves and then the market comes back with volume and corrects which is what is maybe what we're seeing. >> even at that i thi

however the international energy agency came out and said most wells in the bakken will be profitablet $42 a barrel which is really hard to believe. gives you an idea these costs are continuing to decline as we get new technological improvements and greater efficiency. gerri: wow, 40 bucks a barrel, that's shocking. patrick, andy, thanks for coming on the show. great stuff. appreciate your time. >> thank you. gerri: we want to know what you think. here is our question tonight. are you spending more on christmas because gas prices are lower? log on to gerriwillis.com. vote on the right-hand side of the screen. i will share the results at the end of tonight's show. later in the show bond funds are, dashing for cash but what should consumers do? we'll cover your assets. >>> more problems ahead for obamacare. next how prominent ceos are having buyer's remorse about backing the health care law. ♪ how could a luminous protein in jellyfish, impact life expectancy in the u.s., real estate in hong kong, and the optics industry in germany? at t. rowe price, we understand the connections of a co

at the bakken a lot of this is new. the permian they have seen three or four cycles of the busts. they are more prepared and a little concerned but this is texas after all. they have gone through a number of these things. and i think there is this feeling of like we've got it covered. not everybody is going to survive but the big players will be okay. >> good stuff. we'll see more of you later on in your own show street signs, 2:00. >>> so how are they trading in futures today. >> the question is how do you trade crude? and a lot of traders don't know. but today we're getting a pop of more than 3%. a lot of strength in the pits today. jim, question here right now is oil strtrying to stabilize at te levels. do you think that is bottom? it's hard to ask but what do you think? >> it is early in the game but giving interesting indications that 54 level in the february contract is without question a level of some significance. it's been rejected there a couple of times. including yesterday. we all know what the fundamental b

it's estimated 60% of the rigs in north dakota's bakken shale will be too expensive to operate if oil prices stay below 60. >> this is metropolitan liberty. >> reporter: back in amet county, bernell mcgehee showed us how the promise of an oil boom had already transformed the town of liberty. mcgehee expanded his restaurant because business grew 10% a year. oil companies have filled office space on main street. when was the last time you had so many people leasing space in downtown? >> never. this is a boom. >> reporter: the boom could continue for max lawson as projects already in place, like this rig, will moveed for. but, anthony, he's not sure he will see a return on a $70,000 investment, a pond for water used in fracking, since he was recently told to put that project on hold. glork manuel bojorquez in gillsburg, mississippi, manual, thank you. chrysler is giving into government demands and expanding its recall of vehicles with defective airbags nationwide. chrysler is recalling more than three million cars and trucks made between 2004 and 2007. they have driver side airbags made

we're joined by brian sullivan in the bakken of north dakota and ceo of brightling energy.there. what are people in the industry saying? supply or demand issue? >> it's a both issue. you guys are both right in the commentary. right? listen. here's the thing. there's an equilibrium. so we're producing 1.1 million barrels a day in the region up from 1,500 barrels a day 10 years ago. say the price is coming down and driving down the amount of oil that's supplied. and then the lower oil price that you're talking about helped lift the u.s. economy maybe more people go back to work, so that increases demand so the hope here is that both of those things create an equilibrium so that maybe puts a floor under the price of oil because here in the bakken, we have heard the numbers, guys. 68 to 72 seems from all the research i've done over the last couple of days and weeks seems to be about the break-even point on average some are lower or higher but a good reference point. >> does that jive with you, chris, and what you're seeing and hearing? >> yeah. i think smaller independents are

it is $60.o bakken, there is still an enormous differential. >> you have to look at these sorts of numbershe country's 10 reached the budget targets. reach the budget targets. >> there are impacts on deflation, as well. >> thank you so much for that. >> coming down on chocolate. report some of your favorite food. after the short break, no, never! ♪ >> welcome back with asia edge. climate change talks kick off today in peru. >> we are used to seeing images of ice caps melting. to consequence is changes the food we eat. tom gibson reports. >> globalization. lth. and, supermarkets. some of our favorite issues may soon be off the menu. the world is running out of chocolate. drought, andsease, new markets, the demand is expected to outstrip supply by one million tons for the for suitable future. -- foreseeable future. brought coffee fungus to plantations. prices have skyrocketed. in africa, the number of regions suitable for growing coffee is expected to fall as the climate warms. warmer temperatures will reduce crop yields. reduce the time for growing and maturing. food prices could rise 84% b

lou: russia, cry mia, more threats on the balanc bakken st. the alliance with china. s the state of our military right now? are we building up a military, looking toward the future in which we'll have greater contention, potentially war with these countries, or are we just continuing to bleed our military? >> oh, you've got it right in that last comment. we are downsizing the united states military. we have cut all of our major new programs to build the capabilities that we need, and as we continue forward, sequestration is still at play. we're beyond being irresponsible in terms of what we're doing. i think we're just down right reckless in what we're doing in downsizing the military. taking down the capabilities that meant so much to us and literally removing tens of thousands of people in the force that took us so long to acquire them, train them, get them to the level they're at, and we're dismissing them handily this last year and it's going to continue going guard. forward. lou: as we do that, russia sending its jets over the balkins. overpoland. provocative. to

. >> williston, north dakota, it's noun as the bakken region and the stock markets have been very, very hot around this area until recently. the irk is not so much the suddenness in the drop in oil price, but rather how long the price of oil says at these lower levels. >> it would take an excess of six months or a year, probably longer than that. we still have a lot of work to do on the wells that have been drilled. there's a lot of infrastructure to be put in place. there's a lot of jobs. the wells that have been drills, they're not going to be shut in. >> so when you're looking to invest in some of these names, you have to know what their break even costs of production are. thoughts wells could be, in wall street particle lance, uneconomic, meaning not profitable. some of the bigger players have lower costs of production. they can sustain these levels of pricing, although they would prefer to have higher, they can deal with it. so the issue becomes not just where oil prices go, but how long they stay low and what's going to happen to the pipeline companies, the real estate market and

the bakken shale turns out more gasoline than conventional crude. some are making mother more than their stated capacities. this may be why gas is coming down, along with the price of oil. where did those deer go? adam: you win the global globe for the best segue. a segue from the deer and the environment and oil business. >> i try. you can't make this stuff up, david. liz: and you didn't. adam: jeff flock. have a good weekend. >> speaking of oil, not all parts of the energy sector suffered the same. there is a certain order as to how the pain trickles down. could make you money if you know about it. adam: also, the strongest west coast storm in years pummeling california and oregon causing power outages, mudslides. head to malibu with the latest. liz: and they're in bad shape. who could be the first to default? blackberry has found a brand-new ally, ford. and sony's pr nightmare gets scarier with emails insulting kevin hart. who will take the fall? that mor and more ahead. ♪ liz: oil was further battered this week following more than 12%, closing b

we'll see closures in the permean and the bakken. that's not going to curtail production dramatically or slow the production. the saudis explained that abundantly and made it very clear and the bakken may slow. the expansion may slow but the amount of production will not decline. that's the problem. >> all i know is i look forward to the day when i get to pay a one handle on gasoline. i hope -- like our friends in oklahoma and texas are paying these days. >> bill is driving to missouri today. >> yes. heading to the midwest. >> bill we have been around long ago when we didn't have a one handle on gasoline and a 40-cent and 30-cent on gasoline. >> i drove past the local statement in california 61 cents and refused to pay that much for gasoline in those days. thank you. happy new year. >> you, too, my friend. be well. cheers. >> down in virginia beach there. >> all right. a lot more still to come on the closing bell. before that bell sounds see the dow coming off the lows and down 85 points and now 55. still on pace. the dow for its six

. >> you have focused on that and not the bakken.that are not nearly as fertile. >> we have a big crude oil upstream position of a bunch of reserves, so to speak, in the permian basin and the core of it in northern reagan county and you have good rocks and good location with respect to getting the barrels out. it's got all the key attributes. you touch on the bakken, there are certain parts people typically think about it as roughly a million acres. 2 200,000 or 300,000 of those are what we would define as the core. it produces about 1.3 million barrels a day of crude oil. i think the question going forward is at current prices, you know, how sustainable really is that. currently you run about 485 horizontal rigs. >> how sustainable is it? >> we're going to find out. i think we're going to find out across all the basins in the coming three to six months as you start to see what happens with rig activity. one of the big questions i think everybody was trying to get to is how many drilling rigs are you running in 2015? it's not an easy

bakken region producing 8.9 million a day, 9.6 billion in by the largest producer.am is facing a billion dollar divorce by the market got a cut first, no doubt. the founder of continental resources saw the shares go from $20 billion to $10 billion in three months. exporters are looking at a new reality for energy consumption. >>> joining me now, gentleman, great to have you with us tonight. bart, you first. what is happening to oil? is the united states putting out so much oil right now it is effecting the global market? >> well i think is all together, of course, ed. when you look at what russia is putting out and saudi arabia and the u.s. along with other countries. canada and venezuela, they put out a lot. there is clearly a gut that is impacting prices, i think, in a good way. you asked me when i was commissioner at cftc if i hated it when prices were so high and i always had to hold back because personally i wanted them to be lower but my job as a regulator was to say i was commoditiy-blind and price-neutral. but damn it i don't mind lower oil prices, i think i

might be defaults based on these junk bonds or issued to help finance some of the drilling up in the bakken area? >> on a scale of 1 to 10, i think we are at a 2. it's an interesting topic. you can clearly see if you look at things like the barclays junk bond index, that over the last month junk bonds widened out to treasuries by 30 basis points and still well contained, under 500 basis points. looking back at, you know, how they were well over 1,200 or 1,300 basis points around the credit crisis, that's perspective. no matter how you slice it, it's a good thing. is it going to come at a cost? absolutely. >> you mean oil prices? >> tearing the fabric. lower oil prices, i think from the mideast perspective, that's the conversation down here. what's saudi arabia going to do? i don't know that they can compete against fracking and its decentralized structure. i think it's old-school kind of oil services and, of course, the exploration and pumping like the middle east. that will have the roughest adjustment to this. ultimately michelle did a great job yesterday talking about not how much it cos

because of all of the debt that's being maintained by the oil services companies, we're looking at bakkenl shale right now is a losing bet, and it's getting worse by the day. this was supposed to end, wasn't it, at 75? it was supposed to end at 70, etc. now we're at 59 and change. in crude oil prices. this is right now unchartered, unsettled territory, and i don't think there's any way in the world to continue looking at this market in quite the same way whether we're looking at the capital markets that are now being influenced by, obviously, lower crude oil prices or the russian collapse. the ruble is devastated. charles: so we cannot be ignore the geopolitical risks associated with this, even though it feels great for the audience watching this. you're saying if venezuela blows up, if iran blows up, if russia blows up, that can have a devastating consequence that we just don't understand yet. >> well, that's true, charles. the reality that i'm talking about is not geopolitical, it's geoeconomic. and it is in the markets now. and it is reverberating in the markets, and we have a lot of p

eye on the names and recall the fact that this has brought up a lot of controversy because of the bakkendents. analysts saying this is the perfect time for that as shipments ramp. the only issue here would be if we see decline in production next year because of lower cap x and drilling. that is something to consider. with shipments at only 1.1 million barrels it is a small percent of the total production they will probably continue to do it. back to you. >> thank you so much. >>> it's been a day of market alerts, no doubt about that. not everything is done. here is a big look for you. amazon up on the day. so is yahoo. we will watch the markets. how much money do you have in your pocket right now? i have $40, $21. could something that small make an impact on something as big as your retirement? i don't think so. well if you start putting that towards your retirement every week and let it grow over time, for twenty to thirty years, that retirement challenge might not seem so big after all. ♪ nobody's hurt,but there will you totstill be pain.new car. it comes when your insurance company sa

phil flynn just told me about an hour ago that also because that bakken shale turns out more than gasoline, these refiners are actually turning out more gasoline than even their stated capacity. cheryl: jeff flock, thank you. that's all for now, everybody. hope you're making money. melissa's back on monday. "countdown" starts now. liz: thank you very much, cheryl. no longer the santa claus rally, but the worst week for the dow jones industrials since the beginning of the year. that's happening right now to your money. we are going to tell you what that sword of damocles is that's hanging above the heads of the market and what could really bring santa down to his knees, and how and when will that emerge? and imagine a computer glitch bringing air traffic to a complete standstill over, say, new york city or any major u.s. hub. happened today in

brian, you are fresh back from the bakken. williston, north dakota.r single biggest take away from what is happening there? >> how indebted the companies are. we talk about the impact of the price of oil coming down. there is an impact. how many new wells will be drilled depends wildly, trust me, on the price of oil. i guess what surprised me the most is that a lot of the companies have doubled or tripled their long term or short term debt in the last couple of years. it is a race to buy more assets. the other surprise would be we always hear about fracking bringing down cost of wells. because there is such demand the monthly operator cost of a well has nearly doubled in the last five years. a price of a lease is up 30% to 40% over the last five years. it is much more expensive to drill and a lot of debt. to me that is the biggest take away and the biggest worry about what is happening. >> as we were talking yesterday potentially could have a shakeout on the entire debt market if things turn belly up which we hope it doesn't. >> obviously not. i'm pul

phil flynn just told me about an hour ago that also because that bakken shale turns out more than gasoline than other forms of crude oil, these refiners are actually turning out more gasoline than even their stated capacity. cheryl: jeff flock, thank you. that's all for now, everybody. hope you're making money. melissa's back on monday. "countdown" starts now. liz: thank you very much, cheryl. no longer the santa claus rally, but the worst week for the dow jones industrials since the beginning of the year. that's happening right now to your money. we are going to tell you what that sword of damocles is that's hanging above the heads of the market and what could really bring santa down to his knees, and how and when will that emerge? and imagine a computer glitch bringing air traffic to a complete standstill over, say, new york city or any major u.s. hub. happened today in london. the domino effect was felt around the globe and certainly with airline stocks. a buying opportunity. and you might call it the hack being heard round the world and being felt in all corners of the deal-making worl

the higher cost is like the bakken take more time and the lower quality ones like the mississippian, they may cease to be a factor. i know that some people were heartened this morning when repsal bought talsman for $8.3 billion. but this reminded me of when another spanish company, terra, bought the also internet-ran play, lycos in the year 2000, right at the height of the dotcom boom, only to sell it to some south korean company for $94 million four years later. i think repsal's real early. we got a boat load of estimate cuts today, but frankly they're just beginning. then there's the wiggest, baddest bear of all. the russian bear. and this one's a dominant and angry papa bear, that's not so easily appeased. russia, put simply, is falling apart. its biggest asset is oil and gas, and there's a run on the country's banks, so the russian central banks took rates up from 10% to 17% last night, in order to stop the run and defend its currency. the ruble. i say it's too soon to tell if that rate hike will fail, as there are always knuckle-headed the funds that will swoop in to get yield a

because the xle is mostly large cap oil stocks and the trouble in hyg are the smaller oil stocks or bakken play. >> two reasons. one the puts i had are january, so some point i need to start monetizing that. number two probably more importantly somewhere around here on friday, the bottom in oil. if we get to $40 we're going to have a huge problem. somewhere in the 55, $56 range is probably the bottom on oil? to the latest news on the terror threat in the heart of sydney, australia. a 16-hour hostage standoff ending with three dead including the attacker. mandy drury a long-time native of sydney has been watching the situation all day. >> hey, mel his a sa. a tragic end. heavily armed australian police stormed the lindt cafe in sydney after hearing gunshots inside the cafe. they did free a number of hostages being held at gunpoint as you say over 16 hours and you're right, three people including the gunman were killed and four wounded. more details are emerging about the gunman identified as an iranian refugee who came in the 1990s. his name man haron monis he is a cler i out on bail for a

i actually think they were sold on this whole bakken exposure that they're moving oil around.truck against it. >> jon najarian? >> we have the jpmorgan health care conference coming up in january. meantime, two drugs hit today. pfizer and abbott. i bought them both. i like them both going forward. >> brian kelly? >> one stock that traded quite well has been blackberry. i wanted to buy it on a pullback. it came back down to $10 off of 12:50. b.k. bought it. i bought the calls out to january. and that is my final trade. >> steve grasso? >> ford. i'm going with that as my final. >> ford? >> big oil prices. low gasoline. you think full-sized pickups. >> f-1 '50s. a man's truck. >> but they're more fuel efficient because of the aluminum. they're lighter. >> but i digress. when you're looking at ford, it's make you money. i'm here to level the playing field for all investors. there's always a bull market somewhere and i promise to help you find it. . "mad money" starts now. >>> hey i'm cramer. welcome to "mad money." other people want to make friends. i'm just trying to save you mon

since the growth in the bakken has been important he can save clients thousands of dollars by refurbishing worn engine blocks, made possible by the equipment he bought in 2007 and 2013 for $450,000. at a 34% tax rate, he says he wouldn't have been able to make those equipment purchases work. but with section 179 expensing and depreciation, he was able to make those things work. and as a result, he's providing jobs in the western part of our state. udall's auto parts employs more than 200 people. another constituent wrote in, leon slaybaugh of roulette. she writes -- quote -- "i'm concerned about section 179 and what this is doing to the agricultural sector in north dakota. farm equipment is not being sold as farmers are concerned about the amount they will pay taxes movement i farm with my husband, and i work in a small town small supply. farmers have quit spending due to low commodity prices and section 179. i'm concerned with the effect on our small town economy if section 179 is not revised. after with our tax consultant we are concerned with a possible liability we are facing and what

we even sent brian sullivan to the bakken where it was minus 15 degrees. you know, he had a hat on and i said your most distinguishing feature is that. he took it off and he got, you're right, i love my ears. he's 6'6", you know? tell him you don't like his ears. >> yeah, go ahead. >>> let's take a look at the dollar and check out where the euro stands today. right now, sitting at 1.2438. the dollar is up across the board. >> i won't be concerned until it's like 75 cents. >> ready to go to europe. >> take a look at what's been happening with the dollar/yen, sitting right now at 118. gold prices, down by almost $20 this morning, sitting right at $1,198.70 an ounce. >>> the nasdaq and the russell 2000 suffering their biggest decline since mid october. joining us right now with more on the markets is steven freedman, head of investment strategy at ubs. and on the economy, jim oh skull van, the chief economist at high frequency economics. when we say we're looking at the worst drops for some of these indexes in a while, we're looking at the declines. what happ

we have significant holdings in the bakken, the permian, and some in oklahoma in the bakken. it is a huge resource base. so if you're in our business, you have to be in the big resource bases around the world. and this is one of the largest new resource plays in the world, what's happening in north america. >> certain parts of either the environmental movement or the left have indicated that exxon is the major producer of power and energy in the united states. and needs to move quickly to the next generation sources like renewables, wind, solar. and they wanted you to be a solar company now. at this point, some of those investments might not look so attractive. did you go slow with the knowledge that maybe the stone age didn't end when we ran out of stones? >> we look at the full array of energy sources, all the renewables, all the emerging technologies. we have been in the solar business. we were one of the early movers in solar power 20 years ago. we lost a lot of money in solar at that stage. but it's not that we do not pay attention to these things. and we do evaluate the

many more companies here can still be profitable at 55 1/2 barrels than in the bakken.distension. as we know, people have been selling off all the oil companies. the cost in the permian -- not always. there are some high-cost players here. but as a whole companies like chevron, they've been here since the 1930s. some of their capital costs are almost zero. all they have are operating costs. be careful if you're dumping the baby out with the bath oil. >> i like that. brian, we had herald hamm on. it must have been probably four weeks ago at this point. he said that this is not a situation where a lot of these wells will actually shut down. they might slow down with production, you might not see new production. but that was probably $10, $15 ago on the price of wti. i guess that whole story changes below a certain point. >> well, we're already starting to see a change. yesterday we were driving around, met some great people. but there are lots, fenced in lots with cranes, tractors, and drilling pipe. those are rigs and crew that have been idled. and the guy that took us a

in the bakken there's a different price. texas you can produce $60 or even a tad below in certain areas. the bakken is more expensive, a little more of a punishing environment. so you're going to have all kinds of people suffering. they're focusing on their best wells. app lot of them can just pair back. you'll see production -- you're already seeing production reduced. but, you know, at these levels, there's pain. >> gentlemen, thank you. can i just call it mother frackers? >> feel free. >> just because you didn't have the -- >> as long as people are buying it. >> meet the frackers is good too. >> we thought about that one. >> did you really? >> yeah. >> you say you thought about all these things but you didn't want to do it? who's your publisher? >> i'll put you guys in touch later. yeah. >> well, it's a missed opportunity. all right. thank you. >>> when we come back this morning, get your orders in now. today is expected to be the busiest shipping day in the history. you might want to listen to our report after the break.

the permian basin and the eagle ford in texas and the bakken shale in north dakota. u.s.il prices fell 17% between october 31st and november 28th. analysts say the job and permits is more about producers taking a wait and see approach while with oil prices. they say it could be a decline in rig activity. the u.s. has been relatively flat since september. shares of u.s. oil drillers were slightly lower on tuesday. wilfred, back to you. >> thank you very much for that. you're now looking at a live shot of rockefeller center in new york city where the famous christmas tree will be lit later today. is this a big moment, seema? is this what people focus on as the start of christmas? >> absolutely. 30 rockefeller, the tree is from norway, it's 14 tons. >> i think it's more than that. i've lost my notes on that, but it was definitely very bybig and very tall. the swarovski psychiatrist tall is on top. >> mariah carey among others will be singing. we've been asking you, do you think the santa claus rally will continue? do you even believe in it? we've been getting your sweets thi

i agree that in terms of the oil outlook, the recovery in the balkan will -- in the bakken will continuein capital spending, could take a hit, and obviously our exports to other countries that are impacted, so the decline in oil prices is clearly in a positive for the u.s. and for oil importers, but the arithmetic is not as favorable as the headline number because of these other effects. do ust phillips in d.c., a favor, put in a call to vladimir putin and let us know what his plans are. >> no problem. ask coming back on "bloomberg surveillance," we will continue intersection of politics, economics, and finance and bring in our twitter quest of the day, fold in education, too. is the class of 2015 better off than the class of 2014? especially when it comes to jobs. >> it has got to be a better job market. >> tweet us @bsurveillance. we will be right back. ♪ >> this is "bloomberg surveillance." with tomlet fu here keene and brendan greeley. we bring in betty liu, host of "in the loop." you spoke with sting. he spoke, he didn't sing. >> no, he did a thing to me. what is that? >> what did y

. >> it is amazing how optimistic midland and the bakken can be. how many people think this will be over quickly. >> were you amazed to see leaks that opec is projecting $80 within the next year? >> i had a hard time stopping the laughter. that is simply not going to happen. i wrote about it this morning, the data coming out showing how quickly china has moved from being supplied by saudi arabia to being supplied by angola to other suppliers and clearly the saudis are very upset about this fact and are going to make certain that any market share that they have lost they are going to regain and they have the ability to do that. this is not going to end very quickly. this is not going to end nicely. there will be a lot of disturbing circumstances, bankruptcies, shutterings later in the year but not in the next two or three weeks or two or three months. this is not over quickly. >> bring it back home for us. talk about some of the impact we can see in 2015. >> there is a couple of parts of this. if you look at just united states and gasoline consumpti

you can say bakken but it doesn't mean this is productive as that or the break even on this well is theame as on that one. but it may be 40 bucks they can still do business. >> they -- 18 months from now, given -- i think we can -- if you study 1999 collapse, you'd be shocked how quickly exxons of the world can shut that. there is a way to be able to just stop production and then that does create a decline in supply. it's 18 months. >> let me ask you this, all of the headlines, it's window dressing, everybody's dressing the tape, they want to show they own it at year end. do you want to chase a market after the second-best week in two years? >> on wednesday i said let it come in a little, market was up, dow was up big, dow dropped 100 points and immediately the short-term guys on twitter becoming less and less valuable, i think, cramer kept us out of a rally. i mean you know? i probably have been the most bullish guy on air. >> some argue too bullish. >> in the country, okay? really, honestly. >> you kept us out of a rally. >> yeah. >> thanks, thanks. >> we wanted a rally. >> i apologiz

enterprise had news about the pipeline from bakken to cushing. >> falling by the wayside. >> exactly.nd spending plans we are worried about. what do you say, dennis, on that note perhaps the pretty steep slide in oil over a short period of time indicates something is not right with demand and perhaps china where the official numbers have been questioned brve? >> we always question all the numbers of china but demand is lower for an interesting reason, because we are so much more efficient than we ever used to be. we get so much more gdp per barrel of crude oil now than in the past. every one of our automobiles gets better gas mileage than the past and heat the houses with less fuel than we did in the past. demand is lower becoming more efficient. that's a very good thing. i'm with kevin on this. all things being equal, give me a choice of $100 a barrel of crude, $35 a barrel of crude and create jobs? with lower priced energy. that's a very good thing in the long run but the psychology right now is such everybody's excited or depressed because crude is collapsing and just getting baby

while we focus on the wti benchmark price here for the u.s., there are pockets like pockets in the bakken below that price and brent fell through the $65 level and the questions that raises about everything from geopolitics next year to the balance of trade here for this country and others becomes the overarching question and bottoming here for 2015. >> well, sure. i think it is hard to call a bottom in any commodity and if brian is right, god bless you. i think that's fabulous. for you to be involved in the energy stocks at this point, you kind of take a little bit of a gamble. i would rather wait for the price to stabilize. wherever they might be and miss the first five, $10 in certain stocks but at this point we won't know. there's too many uncertainties but i come back to the u.s. economy on pretty good footinger and american express said cyber monday was the best billings numbers in their history of the company. >> we. >> that's a very, very big statement and speaks to a better consumer and that -- not just oil price that is are down. it is that jobs are getting better. wages better.

extent because of the fracking revolution and because of the enormous expansion of oil production, the bakken and eagle for another show place in the united states -- eagle ford come is on the verge of breaking the back of opec for the first time since the early 70s. and many of you will remember there was oil lines in 71 come in 73. we have shortages of oil that was going from $8 to $40. it was enormous, negative repercussions on the u.s. economy. opec had as kind of by the throat at that time. we end up importing more and more and more. now we are importing less and less. we will be totally independent of imports, certainly conclude canada and mexico, and so that to me is very exciting. the leverage that opec has had over us is disappearing. and also russia's currency opportunities, he is being crushed right now. and so this is going to have a significant come and, frankly, it's because the u.s. exploration that really began by independent oil companies, and it's just remarkable. it also gives us economic advantages for manufacturing natural gas. we will have lower natural gas prices and th

. >> in the bakken it is there. >> i wonder what this means in terms of consumer demand.de everybody's hoping happens here. the black friday sales have been extended through valentine's day if i look at my e-mail and not bode well from a retail standpoint, consumer standpoint so the consumers aren't stepping up here, the price of oil and gas where it's at, when will they? >> i was talking whereabout the money is going. one theory is going to verizon data plan. two, it's going to your health care plan. is it possible that we're not seeing as much of the -- >> there's an article in "wall street journal" did a big data dive and discovered a huge percentage now going to those two things. that's where the middle class is squeezed the most. your cell phone bill which is gotten so much bigger. >> so important to most people. >> yeah. >> ross? >> adding devices. but the money has to go somewhere so it's either going to spending or savings and going to spending and health care is more expensive for most people but the bottom line is a lot of it is going to apple. >> you love apple

oil price right now isn't even represented by the wti price that we're quoting that in parts of the bakken already closer to $50 a barrel. it feels as if we haven't gotten near close enough to figure out where this goes. >> in oklahoma, that's a result of a loss. >> exactly. >> oil can create enough political instability in iran and russia to make gold move, then i'm giving up on gold. it would be the undependable friend that never shows up. if we don't have inflation, if we don't wind up with political instability, as far as i'm concerned, gold can leave the building. >> gold, the 6,000 year bubble that he i guess is call tending of as well. thank you very much for being here. really appreciate hit the afternoon. "fast money" is coming up in just a few moments. >>> now with melissa lee and the gang, hi, melissa, what is on tap? >> falling oil prices have been great for the airline trade as a whole. the xal up 30 something percent so far this year. but we have one analyst coming on saying that low oil price mace not be as good as you think for airlines. there could be a cautionary tale aro

part of that is because we're pumping so much out of the bakken.ouldn't it be rich with irony if we started exporting oil and joined opec. >> we had some of the big experts asking and saying what about the fracking thing. they said no that's a one off or, no that's not going to be material to supply. they had all these reasons. they get so stuck when oil's up there at a hundred for five years that they can't even imagine -- so what good are they? doesn't make you much of an analyst, does it? >> or it means you don't have much imagination. >> right. okay. >> thank you, folks. >>> coming up, a court overturning two insider trading convictions and it could have big implications -- >> is there a fly over here again? >> it's not a fly. it's a gross gnat thing. something dead around here? anyway, details next. and then later treasury secretary jack lew speaking at the dealbook conference in new york. our own andrew ross sorkin is hosting and they will join us in the next hour. (trader vo) i search. i research. i dig. and dig some more. because, for me, t

bakken, probably the place to focus. we've done a lot of reporting there. lot of small drillers that work there that may be overleveraged. i think we should keep an out out for bankruptcy. that is, of course, an interesting indicator. a lot of this paper trading at below par. interestingly, though, l&g -- i'm sorry, l&g's kicker, their bonds are trading at par for this to be impact. so that tells you wall street is relatively comfortable. we've had an amazing stock market story. but this crude oil fall could be meaningful for them. >> thank you for that. i don't want anybody to go bankrupt. >> we can be hearing about -- >> no, we absolutely could. deutsche bank has been ahead of the game on that. they just issued new research on that yesterday saying things are looking surprisingly worse than they were about a month ago. they were predicting about a 30% default rate with oil at 60. >> what about like investment guys that might have been long. wouldn't we have margin calls already? wouldn't we have margin calls? >> people were actually selling apple and stoc