john: actually we -- erik: ceo john watson didn't have a choice. : when a good chunk of your revenue disappears overnight, you do have to take stock of that. and we are taking some actions to reduce our spending profile, finish the projects that are under construction, pace the others to see if we can bring costs down. we keep a very strong balance sheet so that we can withstand the ups and downs of the commodity market. there are some that maybe haven't been in the business as long, that haven't seen the price excursions down that we have. i've seen five drops of 50% or more in the price of oil in my 35 years. fadel: it is impossible for oil companies today to thrive in $60 oil. they can withstand the pressure for a lot longer than most of their peers. they will be hurt, but the smaller guys will be killed. horizontal drilling and hydraulic fracturing has completely changed the energy mix, the outlook, and the perception. that is a game changer that will likely change the industry forever. erik: fracking is why america now produces 70% more oil tha

we're here for a rare tv interview with the ceo of john wats watson. i did that in the previous hour of "power lunch." we covered a wide range of topics including chevron's dividend and where john watson sees oil prices headed from here. take a listen. >> do you think we'll be above $60 this time next year? because there say number that matters to you guys. >> there is. but we're prepared to live with whatever prices the market gives. we don't publish our forecast for prices. we have a range of prices that we look at. we're preparing to live with prices at whatever level. we made sharp reduction for 2016 and expect it to go lower in 2017 and '18. we won't start new long cycle projects right now and we'll fund short cycle investments that have a good return. >> is the dividend safe? >> that's our number one priority. pay the dividend. i made that very clear to the financial committee. our shareholders value. that we generate enormous cash flow even in low prices. we're going to do what we can to cut future spending. this is a priority for me but we have

we have got a long, rare interview with john watson, the ceo of chevron with everything that's goingn in oil today, it is very, very timely. >>> it is not just oil that has been feeling the commodity pain and pinch lately. copper down more than 25% this year. aluminum down more than 15%. other metals too numerous to name also getting slagged. let's talk more about this commodity crunch and the impact on all of it. david hannah, chairman of reliant steel and aluminum based here in l.a. been with the company for more than 30 years. david, thank you for joining us. >> thanks for having me. >> we talk about the energy complex a lot on "power lunch." that is a big part of your in business as well. how is the oil and gas downtourn impacted reliant and the metals market. >> it's had a significant impact. we've grown in the energy end of our business over the last four to five years. it's been the best performer we've had in our company in the last four years. today it's the worst performer. but what we've tried to do is balance our exposure to different industries over time, so we don't wan

john watson told brian sullivan that the sector is adjusting to lower prices by cutting supply. that capital investment will be cut and that he sees oil prices trading higher one year from now. >> there are adjustments taking place in the business. if you look in the united states, production has fallen 500,000 barrels a day in the last six months. the capital being withdrawn from the business, hundreds of billions are being taken out right now. some companies are finishing projects under construction. that's temporarily adding to supply. but once those projects come online and as people absorb the current prices, you're going to see production drop in many parts of the world. >> do you believe that? because every time the u.s. comes down, maybe iraq goes up or iran goes up or russia goes up. we've got 11 million coming out of saudi arabia that we know of. there are countries and companies, john, as you know, that need to keep producing. why are you so confident we will see supply drop? >> there is a natural decline that takes place in our business. as you pull investment out, o

we also heard that from john watson who was on "power lunch" today. >> we know there will be an upturn in this business. there are projects that we may not be choosing to fund today, but it doesn't mean we are abandoning those projects, we're delaying those projects. we will need the people to develop those projects, but in the meantime we are making some choices, we are trying to get our costs in order. >> there are echos, pavel, where access to credit has allowed in many ways even a further reckoning as you've said, equities are down, 7% of the s&p from what it used to be but a lot of these companies are able to push off even worse moments because they still have access to credit markets. >> well, e & p companies do have access to credit in the sense that they have fixed assets that many be used as collateral but they are not borrowing right no right now the mantra in the industry is little within caps low. this is why global oil and gas cap x this year is down 30% in the united states, down 50% next year it's going to be at least as much as for a second straight year. it is the deep

a rare and exclusive interview with chevron's ceo john watson coming up. also, other oil stocks a buy right now. the names that maybe you should be watching around these levels, and smith and wesson reporting after the bell the gun stocks just keep on moving higher. we'll talk about the challenges facing the industry right now. that's all coming up on the show. of course, i'm down at the nyse, and ty is back at hq. sarah, back to you. >> looking forward to it. some of the biggest names in media technologies are gathered at the ignition conference in new york city today. our own julia is at the event and talking to verizon ceo lowell mcadam. it's an exclusive interview you'll see it only here on cnbc. take it away. there's talk with whether or not you're interested in buy yeah hur. it's something your cfo -- it sounds like you're sort of interested. what's your interest in yahoo? >> the key is their board hasn't stided what to do. there's not a question to be arounded here. once they make a decision, there might be assets that would fit together with aol li

since 2011 when baylor's robert griffin beat out stanford's andrew luck be a clemson quarterback john watson came third. >>> new this morning, all lanes of interstate 680 back open after a deadly crash. it happened on north on 680 by the gold hill road off ramp. chp says the car caught fire killing those two people. they still don't know what led to the crash. >>> annapolis school bus driver arrested for allegedly driving drunk with a bus full of kids. chp says it began when the 24-year-old tried to turn her bus around on old sonoma road. she got stuck and blocked two lanes of traffic. officers then give her a field sobriety test and she failed. she is now facing dui and child endangerment charges. 28 students were on that bus at the time, but fortunately no one was hurt. >>> a family searching for answers this morning a year after someone their son. more than 100 people came out last night to remember the 21-year- old, joel ramirez. someone shot and killed him in his car as he was driving home last year. please don't believe he was the intended target but say he drove a car similar to a pot

you heard exclusively from chevron's ceo john watson earlier this week.'s add to the global view with cnbc contributor halima kroll. that was a quick entrance. it was like "the ellen" show. when you look at the fundamentals of oil, the fundamentals aren't much difference than they were when oil was at $48 or $50 a barrel. >> sentiment is so bad, and i think if we look at a week ago, there was some sort covering going into the opec meeting when the opec oil ministers essent l essentially said no production ceiling for us, that's when sentiment went so far south at this point. >> is it sentiment or is it rational supply/demand. >> we are significantly oversupplied. opec november numbers, they're up 230,000 barrels. there's a sense opec is not pulling back. we're still waiting to see when the market turns. >> what i was trying to say, this is a five-year chooart on this beautiful screen. we were massively oversupplied here, massively overspliced here. what's the difference besides $16, $17 a barrel. >> what you want to look at is the short positions. we are

hart, richard quest, model and reality tv show carmen carrera, tituss burge burgess, bethany watson, cnn anchor john berman. from fusion's "no you shut up" left thompson. and robin immediate. it's all the bhes, all the worst 2015. welcome. i'm tom foreman. and we could have used some superheroes to help us through the challenges of this year. some exasperating, some exhilarating, some comical. and over the next hour we're going to go through all of them, starting with the best and worst in the world of big news. >> it was a year of firsts. >> a lot of people who predicted a lot of things were wrong. >> i cannot believe it is the end of the year already. >> some weird stuff happened. >> kind of horrifying in terms of some headlines. >>> the worst way to start came in the first few days of january with the terror attacks on the french charlie hebdo. and the attacks on paris later, you get the worst story of the year, the persistent plague of terrorism. >> there is no doubt we are dealing with a very different beast, something we have not seen before, something which does not follow any form of normal

hart, richard quest, model and reality tv show carmen carrera, tituss burge burgess, bethany watson, cnn anchor john's "no you

i would also like to thank the great members of the watson brown book award jury, professor john, dane houston. receiving this award is a tremendous award and i'm overwhelmingly grateful the -- grateful. thank you for your support and recognition for "learning from the wounded." for reasons that will soon become obvious you will soon be glad that i am speaking after dinner and not before. the old joke about after dinner speeches ruining the digestion of both the audience and the speaker has particular resonance when the topic is medical. july 10, 1863, private douglas transferred from the 11th army corps hospital to the jarvis u.s.a. medical hospital in baltimore, md. he was suffering with a wound of the left leg received in the battle of gettysburg. the case report noted that the whole belly of the gas trockneemious muscle had been carried a wide -- away by the fragment of the shell. for the next weeks, the staff monitor the patient and treated the inflammation in the hope the wound would granulate. but the patient was suddenly seized with a violet constitutional disturbance a , high

john mcdonald was well-advised to use this stunt? >> no. i know left-wing supporters of his. the look on tom watson, deputy leaders face, he said he could not quite see what john mcdonald was doing, but to me, it was a bit of a sharp intake of breath. jokes.re the problem for john mcdonald is a a lot of people think this is what he believes. it is clear that he is making a joke. he is laughing. but he did not play that way. that was a big victory for the labour party to force the government back and he diverted from that. >> not all stunts work on big occasions. have really have to have chosen it right and that was and ever by hand. osborneurse, george came back with a wicked response. overall, was it a good statement? allegra: he did a good u-turn. it was a u-turn that had to happen. he did it comprehensively. very little or people to pick out now. if you are going to do it, do it fully and move on. but it was a shock. it is embarrassing for him because it shows an error of judgment. i think he showed political acumen in how he moved away. >> the big irony is that the lords voted out these tax cre

the look on tom watson's face, he says he could not quite see what john mcdonnell was doing. book was coming out of the other pocket. but to me, it was a sharp intake of breath. jokes are jokes because they are counterintuitive. the problem for john mcdonnell is that a lot of people think this is what he believes. it is clear from watching him he is making a joke. he is laughing with a smirk. but it did not play that way. most importantly, that was a big victory for the labour party, to force the government back on tax credits. he diverted from that. keith: not all stunts work in the commons. >> no, you have to be pretty brave. that was an error. keith: george osborne came back with a witty response, which went down with a storm. overall, was it a good autumn statement? >> he did a good u-turn. it was a u-turn that had to happen. he did it comprehensively with little for people to pick at now. that is the lesson here it -- lesson here. if you are going to do a u-turn, do it fully. but it is embarrassing for him because it shows an error of judgment in trying to do it in the f

watson. and it always takes two hands to handle a whopper and reid wieland took it on. with all my fishing friends this is john campbell reporting. we have high school girls basketball tonight on kcrg nine point two. the cougars of cedar rapids kennedy travel to take on the little hawks of city high. tipoff is kcrg nine point two. deputies with jones county sheriff's offe are worried cars may crash into amish horse and buggies more often now. since the days have become shorter with less daylight, there have been 3 crashes so far. stay with your 24 hour news source, kcrg-tv9. you're watching kcrg-tv9. now, from your 24 hour news source, this is kcrg-tv9 news early morning news. stepping up patrols. jones county deputies are increasing e eorts to keep drugged drivers off the roads. extra precautions. the mass shooting in san bernadino has some law enforcement agencies in eastern iowa getting armored vehicles. and fill the plate. we're at talk about the need for donations to fill the plates for senior meals. here's a look at on our city cam this friday morning. some beautiful weather in store today. first, meteor