john hofmeister, former shell oil president. let me ask you, everyone is saying, critics at least, rex tillerson is vladmir putin's best buddy because they are out there doing deals. what is that relationship is like, do you think? >> like every ceo of a major oil company, a relationship of mutual respect where rex is pursuing his objectives, putin is pursuing his objectives, somewhere they thread the needle. by threading the need dell, rex gets what he needs, putin gets what he needs, or they wouldn't do the deal. melissa: people feel like he is a murderous thug. that vladmir putin is somebody murdered his own people, done terrible things to the press. a list of things that he has done, crimea, everything else, all the way down what is going on in aleppo, how could you have mutual respect with someone like that? >> when you have a job definition and job scope, you compartmentalize things you're not thinking about. melissa: yeah. >> he has a new job scope. he has a new set of criteria he will be using and it will be in the polit

john hofmeister, former shell oil president.ve below 50 bucks a barrel. convince me that i'm wrong. >> if it does, stuart, it won't be for a month because all of the capital investment cuts that have been happening over the last couple of years are going to make themselves well known is beginning to 2017 and even if demand stalls further, i think we are still going to see production reductions. they can't continue at this low price. stuart: what about american crackers and american producers? are they gearing up in ramping up about 50 bucks a barrel? they will bring new product on stream, aren't there? >> yes, other parts of the u.s. in other words, the recovery is not happening all across the oil patch. it's only happening in a select few areas of texas right now. a little bit of north dakota. pennsylvania, ohio, et cetera, not a major expansion. other locations in the gulf of mexico is simply the status quo. the recovery is much more slowly fellow. stuart: president-elect trump says he will restore the incentives for clean coa

scarlet: thank you so much, john hofmeister. let's get a check of the headlines.om. emma: donald trump has selected strategicwley to lead mitigations for the national earlier inuncil -- her career, she worked for president next and. nixon.esident the governor of idaho is being considered as a possible candidate for agriculture secretary. the republican governor is currently being vetted by president-elect donald trump's transition team. ryan binky is donald trump's pick for secretary of the interior. he is 55 years old and a retired abc will who was awarded -- retired abc all -- retired navy seal who was awarded two bronze stars. and france have voted overwhelmingly to extend the national state of emergency for another six months. the fit extensions and the day after the paris attacks that left 130 people dead. the attacks have been claimed by islamic state. global news 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. this is bloomberg. scarlet: coming up, more on what's being called donald trump's $6 billion cabinet.

former shell oil president john hofmeister whether it holds and if it does, what does it mean for us? >> i think it's a big question mark whether it holds. i think faster the oil price rises the less the chances that it will hold because there are a lot of folks out there, opec as well as other producers are really short of cash, lived with such difficulty in the last few years that they will do anything they can to raise production in the short term in order to capture some of that available money with the higher oil price. you but we'll he see. i think, what helps the price rise is not just the anticipation of the cut, but there's also the natural decline of the oil fields and in addition, there is the already announced major cutbacks in capital spending by all kinds of independent producers that simply aren't going to spend money in 2017 because they don't have it. neil: what if, you know, gets to a point where, you know, donald trump comes in, far more friendly force for the traditional energy industry, takes away a lot of regulations, impediments to oil drilling and the rest an f

john hofmeister, thank you for coming in.elping us learn more about the man who could be our next secretary of state. >>> coming up, back in the news this morning, what we just learned about the irs. >>> plus, our friend performed on the show yesterday. what happened after the show, you're looking at it, it is hilarious. no wonder ainsley wants karaoke. ♪ but you can do the job when you're in town ♪ ♪ later we'll conspire as we dream by the fire ♪ >>> it is your shot of the morning. brian went to do radio. heather, ainsley and steve went to sing with steve amerson. ♪ later on we'll conspire as we dream by the fire ♪ ♪ the face unafraid the plans that we made walking in a winter wonderland ♪ >> i wouldn't be surprised if this show becomes a musical version of "fox & friends." >> we were totally sober, too. we were singing and dancing. >> i'm not so sure -- it was a lot of fun. why don't we invite musical acts on -- well, we should just do the numbers ourselves. >> you sent me the video yesterday and i was like, i don't want to