what obstacles and opportunities are there for economic leadership as it relates to the permian basin basin is just a tremendous opportunity and an area that is much like several other areas of the united states. we have known from a technical standpoint for a long time that there is a lot of oil and natural gas in these areas. what has really changed and this unconventional wisdom is all about. the 30 or 40 feet from the formation by drilling the wells horizontally and paying him that vertical window drawing it horizontally 5,000 to 10,000 horizontally you are exposing yourself to that amount, five to 10,000 feet of the reservoir plus hydraulically fracturing were breaking up the rock to alloallow it to flow in commercl quantities so that is where this new unconventional technology has created an entire energy revolutioentire energyrevolutioe on shore in the united states that always allowed itself to take place. now what's the problem? there are challenges in a couple of areas one of the biggest challenges are to develop like the infrastructure in the pipeline system. we've got the

we are above breakeven for most areas in the permian basin. ♪ >> i am alix steel, and this is bloombergcommodities edge." time now for the data dig. first up, ducts. the rise of wells that are filled but not completed. this is particularly in the permian, the yellow line, and the eagle, the blue line, they have seen a reduction of them. cargill had a disappointing quarter, but rain volatility has increased. the last few months, it is come down, but best on a year ago, it is had a big rally, and that means they can exploit some volatile markets despite trade wars. staying with gold and the safe haven appeal, a company started trading this year as a new company. the stock has 26% more upside, a new era. the ceo says he is committed to a disciplined approach, while improving shareholder return. >> we are a standout performer in the ftse 100 over the last two decades. we have demonstrated that if you focus on quality, no matter what jurisdiction you are in, you can deliver real value for stakeholders, which we have done. there is no doubt in my mind that we have world class assets, the majo

. >>> still ahead, a hedge fund making a major play in the permian basin, offering a fat premium.e'll give you details and an exclusive look at some companies that could be next on the oil shopping list. >>> making a case for the border wall president trump to make a major primetime speech tonight with the government shutdown enters its 18th day we'll take you live to washington and what you can expect as wodwe chge tus.rlidexan unpredictable crohn's symptoms following you? for adults with moderately to severely active crohn's disease, stelara® works differently. studies showed relief and remission, with dosing every 8 weeks. stelara® may lower your ability to fight infections and may increase your risk of infections and cancer. some serious infections require hospitalization. before treatment, get tested for tb. tell your doctor if you have an infection or flu-like symptoms or sores, have had cancer, or develop new skin growths, or if anyone in your house needs or recently had a vaccine. alert your doctor of new or worsening problems, including headaches, seizures, confusion and

>> people or continue to operate in the case of the permian basin for instance, apparently people arenomic -- good economics at $50. but they are a little more weary, a little bit more careful. when placing orders for various kinds of completion equipment and so forth. they are not quite as robust or enthusiastic and they are not buying over the next 12 months. saying this by 1/4 at a time and see what happens. >> your also invested in the restaurant business, is that right? >> absolutely. >> tell me about that because it's a good indicator of the economy. when people have more money in their pocket and they feel confident they go out to dinner. >> and if there a good commission check if they have extra overtime, you are right, they spend the money. and i think probably, restaurants are one of the best indicators of the economy. if the economy has been over the week people go out and eat. if it's bad, they stay home and eat cheerios. >> we see from the restaurant industry in the restaurants that you own? >> things seem to be reasonably solid, reasonably buoyant as this time. there is

and coming up on this program, dan eberhart, canary ceo, will talk about slowing in the permian basinbad is it going to get? we will discuss next on "bloomberg commodities edge." ♪ ♪ alix: i am alix steel and this is "bloomberg commodities edge." it is time now for commodity in chief, where we focus on one executive in the commodity world. today, it is dan everhart, the ceo of oil services company canary. first, a closer look at the issues facing oil services. ♪ alix: it is the worst performing sector in energy, oil services. oil prices recover and services are left in the dust by big oil, emp's, refiners, and midstream players. to play catch-up, the group has to find drilling activity and pricing. onshore drilling was a bright spot. before the 2018 oil crash, activity was picking up, day rates were rising, and top-tier assets commanded a market premium of $6000 to $8000 a day. but then oil prices fell into a bear market, volatility exploded, and now independent producers are cutting their capex for 2019. it is going to be hard to find pricing power if producers spend less. there also

may affect survey shows and my we're ion with contexts, above break evens for most areas in the permian basinlegations against former nissan chairman ghosn. nissan fund toal pay $48 million run by two of in the middle es east. it's unclear what the payments were for. he's been accused of and accused his pay of breach of trust. he's been in police custody since the middle of november. korea's acting ambassador to italy has disappeared raising the possibility of a rare defection. south korea's spy agency says diplomat gil and his wife went hiding in november just before his posting was scheduled to end. defection by one of north korea's elite would be kim barrassment for leader ung-un as he continues diplomacy with seoul and washington. owered by more than 2,700 journalists in more than 120 countries. i'm kathleen hays. this is bloomberg. kathleen hays. this is bloomberg. >> still ahead he quit his job rich investing in hong kong. picker.ar stock >> chinese weakness could cause more u.s. stocks to slichltd to the more evidence contrary. we'll ask ubs's kelvin next. this is bloomberg. vin next.

economic leadership as it relates to the permian basin? >> it's just a tremendous opportunity.an area -- just like several other areas in the united states, we have known from a technical standpoint for a long, long time that there's a lot of oil and natural gas in these areas. what's really changed and what this unconventional revolution is all about is instead of drilling a vertical well through these formations that we've seen forever that maybe you expose yourself to 30, 40, 50 feet of the formation, by drilling a will horizontally and staying within that 30, 40, 50-foot window but drilling it horizontally 5,000 to 10,000- foot horizontally, you're exposing yourself to that amount, 5 to 10,000 feet of the reservoir. plus you're hydraulically fracturing the rock for it to flow in commercial quantities. so this -- the permian is the best example of where this new, unconventional technology that's created this entire energy revolution taking place onshore of the united states, how it's allowed itself to take place. now, what's the problem? well, the problem -- there are challe

the permian basin was a logistical problem. now at the end of 2019, it is probably solved.increase of two thirds. the u.s. oil industry will be able to react much faster and bolder to the international market. >> it looks like the u.s. is fast becoming a major exporter of oil and gas. china is a major importer of oil and gas. is there a sense that at some point, the u.s. could be a supplier for china? gas, look at the numbers. the u.s. energy exports are growing very strongly. looking at china, china energy imports are growing double-digit's. very strong growth. japan as thetaking largest gas importer of the world. coal for air pollution reasons. energydeal world, u.s. meeting chinese needs would be perfect. issuesll know, there are beyond the discussion today. >> everything hinges on this u.s.-china trade war. thank you for that. there you have it. the iea chief bear. back to you. anna: thank you very much. 40 seconds to go until the start of cash equity trading in europe. let's have a look at where we are positioned. the euro fairly stable. oil trends a little higher arou

don't listen to my forecast, but i would say little bit higher, the permian basin means more infrastructure some of that infrastructure will wear out so they need a somewhat higher bond price. it is the u.s. industry that has been the swing mover of the supply side. the naked high enough, it gets expanded. that is the reason for expecting a somewhat firmer oil price during 2019. manus: what's was made last year the crisis from shale and from itself. it had its foot to the floor, it had cuts and now we are back to cuts, all within one year. does it lacked the robustness that maybe it once had? steven: it had a market share double where it is now payment it was much more important when they had strong leadership from saudi and its allies. but of course it had much more influence. as its market share has dwindled who were operating on simple commercial criteria, where is opec is led by its political leaders, and therefore had much more political influence on prices, therefore the market. we are looking at simple supply and demand. iny are not interested making political gestures, they just wan

refiners have been running a crudeighter slate of because of the light crude coming out of the permian basinthe shell basin. what that tends to do is while we are seeing high demand and high markets for diesel, when they do that they have a lot of gasoline. not running as strong.the venezuelan angle is venezuela tends to use a have your great of crude. u.s. gulf coast refiners love it.if that gets cut off for any reason, they will either try to go to other sources of heavy crude who are also seeing pressure because can it has production caps. what they may inevitably do is switch back into lighter slates of crude. they will take the hit for as long as they can. but it will mean the gasoline inventories will keep building. even if we see bullish pressure from the crisis in venezuela, you will see gasoline margins pulling back as well. lisa: what is the bigger factor, the supply side or the demand side? liam: i will always answer that by saying -- lisa: come on. liam: it is true. we can see a disruption.let's take an example . lisa: hold that thought. we are going to go now to senator chuck sc

i mean, the permian basin may be essentially the largest oil field in the world.e and left. technology breakthroughs by small companies back in time, george mitchell, have unlocked this. it's only going to get more and more but it declines fast. maria: you recently launched one of the largest advertising campaigns ever, showing the company can advance the alternative energy sectors. here in davos, where sustainability is a big subject, oil is a bad word, tell us about that. tell us about your ad campaign and what you're trying to message. >> well, thank you that you saw it or maybe you saw it, but thank you. we have. it's been a long time where we felt like we could tell the story of the company, almost 10 years really. so we told the story that we're a broad global energy company. we do everything from renewables, wind, solar, biofuels, all the way through oil and gas exploration, natural gas technologies and trading. it's a story people don't know about bp. and we've been together with 13, 14 companies in the oil and gas climate initiative, we take this seriousl

it may affect 2020, but our survey shows that even if oil price were above break even for the permian basinrforming the competition again in 2018. billion for a total gain, amongthe best performance the 10 largest actively managed bond funds. peersnd beat 97% of its in what was a rough year for fixed income investors. after theaht declined government set a elections could be delayed again. the deputy prime minister said the boat may clash -- vote make clash for plans with the royal coronation. global news 24 hours a day on air and on tictoc on twitter powered by more than 2700 journalists and analysts in more than 120 countries. i am kathleen hays. this is bloomberg. rishaad: the u.s.-but trade war and slowdown in demand is hitting many economies. in decemberkening across much of asia. contractionignaling , taiwan, malaysia, and south korea also pointing to declines. yvonne: some softening in intnam and malaysia contraction. our next guest believes southeast asian colonies will reconfiguration of the supply chain. our guest is with us. that chart is telling. your macro outlook is liquidity

now you've got multinationals and well-capitalized companies who are drilling in places like the permian basinlot of people had in 2015 and 2016 among the small producers. so they can sort of fight the fight and have much better lasting power. we're talking about companies like occident al, chevron, exxon mobil. i don't think they'll get hit with debt problems anytime soon. dagen: do you think that the slow shift to electric vehicles in this country ultimately hurts demand for fossil fuels? >> ultimately, yes. but probably when i lose my hair or it's all white and gray. i think it comes probably after 2025 and certainly in the decade of the '3030s we're going to see a lot of electrical vehicle intrusion. it's going to be a slow pace. i mean, the tesla problems are problems that other people have faced. china will have many, many more electric vehicles than we do by 2025. dagen: if you wear a t toupee u don't need to worry about losing your hair. >> you have to be like shatner and update it all the time. that's got to be really expensive. dagen: i'm just clarifying that. i know you don't wear f

permian. there are basins noted in west texas and new mexico hold the most potential oil and natural gas resources ever assessed. what obstacles and opportunities are u.s. economic leadership. >> well, mike, the permian basis is a tremendous opportunity. it's an area -- it's much like several years in the united states, we have known from a technical standpoint for a long, long time that there's lot of oil and natural gas in these areas. what has really changed is instead of drilling a vertical well through these formations you expose yourselves to 30, 40 feet within the formation, by drilling a well horizontally and staying in that vertical window, but drilling it horizontally, you're exposing yourselves to that amount, 5,000 to 10,000 feet of the reservoir or you're breaking up the rock in order to allow it to flow in commercial quantities. the permian is the best example of where this new unconventional technology that has created this entire energy revolution that has taken place onshore united states. how it's allowed itself to take place. now, what's the problem? well the problem is -- the c