producers are under fixed crisis as shale slowdown worsens shell oil producers are under fire from investors while most analysts see a supply glut in 2020 the 1st and 3rd fire from investors while most analysts see a supply glut in 2020 the 1st and 3rd largest oil field service companies in the world saw their earnings hit in the 3rd quarter largest oil field service companies in the world saw their earnings hit in the 3rd quarter due to the slowdown in the u.s. shale drilling schlumberger took a $12.00 due to the slowdown in the u.s. shale drilling schlumberger took a $12700000000.00 impairment charge related to its north american business a rather dramatic and $1000000000.00 impairment charge related to its north american business a rather dramatic slow. down that led to an $11400000000.00 loss for the quarter the largest and that exploded that led to an $11400000000.00 loss for the quarter the largest in the company's history quote that's a sizable write down from pressure pumping business that's the company's history quote that's a sizable right down from pressure pumping busin

a feel for the magnitude of how much money they're burning by sorting through 29 publicly traded shell oil companies the institute for.

feel for the magnitude of how much money they're burning by sorting through $29.00 publicly traded shell oil companies the institute for energy economics and financial analysis found that between 201-320-1818 extension 1 1000000000 dollars in cash was burned plus is the cash burned by the privately held companies so the total. casper is likely in the neighborhood of 700000000000 bucks right i know i'm our republic that they didn't go through the artifice of creating a public company or a private company they just burned the actual cash in the stove to keep warm here they've created. a bull business model of fracking which is another euphemism for burning cash right because it takes more energy in they get out it takes more cash in than they get out it is a literally a bottomless pit of cash that is by definition impossible to make a profit from and in the private market like a we work or other tech companies that are in the private market there's a mass hallucination going on where they've think that well we need to become the biggest energy exporter and producer in the world in the saudis a

i was not one of them, i worked for shell oil.ecause i was the brazilian accepted at stanford that year i decided to make my case and he decided to pay for my first year, out of his own pocket. so i went to stanford because of him, and it was interesting because he asked three things of me when i went. he said, first, keep in touch, before you can accept any full-time job offer when you are done with stanford, talk to me first. no obligation to work for me. and help someone if you can in the future. pay it forward. so that was it. carol: that was part of the education. talk about your experience at stanford, what you got out of it. >> for me, it transformed the way i view the world. it was very international, so a very open to the world even in those days. it was also a place where i learned talents. i was surrounded by the best people in the world pretty much at that age group that kind of orientation to business. and i had to up my game. i used to be the top student, always top of my class and when i went to stanford, i was not

an example of this is shell oil now in the netherlands experimenting with allowing people to pay and extra euro sent earlier of gasoline. it ends up being pretty much the same amount that the norwegian government is paying. paying into the amazon fund. five dollars a ton. expanded it to encompass a large number of people who buy gas frequently from shell and the uk. they are using that money to buy credits from the highest quality projects that are helping to reduce emissions from forests in southeast asia and in peru. they've got tens of millions of dollars, hundreds of millions of dollars they're planning on investing in the space. the modality, the structure could be very large scale. around these kinds of payments are just starting to get formed. largely in the space of experimentation. i would surmise from what we've been seeing over the past decade. it is not going to happen based on foreign aid. this is not a problem that foreign aid is going to solve. it is a problem we are all part of. because we are all consumers. via the company's that service our needs, we will need to be

shell oil production. some people have argued that the shell industry is now the new swing producer, not so much because it has a lot of extess capacity but it's easy to bring on and off line. it's on land. you have small producers. there's a lot of equipment but they can go on enough. what would you sa i to that argument, the impact of the shale oil production on the united states on the global balance of power? >> the iris that there's a time lag that if there's an immediate shortfall like two or three or you name it "x" million barrels goes offline tomorrow, who is going to replace that oil tomorrow? it's not going to be u.s. shale producers. that will take at least several months to years to be able to do so. i've been following this in the wall street joournl and other places, the u.s. produces a lot of oil, shale oil, it's supposedly very -- transformed the global energy outlook. but shale companies are incredibly poor investment. they're incredibly -- they basically all have negative cash flows. it'

an example of this is shell oil now, in the netherlands, has been experimenting with allowing people to pay an extra euro cent per liter of gasoline, which when you do the math, adds up to pretty much the same amount that the norwegian government is paying, has been paying into the amazon fund, which is $5 a ton. they have expanded the program now to encompass a large number of people who are buying gas frequently from shell in the u.k. they are using that money to buy credit from the highest quality projects that are contributing, that are helping to reduce emissions from forests, in southeast asia, and in peru, two examples. they've got tens of millions of dollars, hundreds of millions of dollars, they're planning to invest in this space, and it is not only them, there are others, as well. the modalities, the structures for this kind of an emergent market, that could be very large scale, around these kinds of payments, are just starting to get formed. and it's largely in the space of experimentation now, but i would surmise from just what we've been seeing over the past decade, two

time for sport with leah thanks for shell oil in tennis russia and canada are battling it out for a place in the final at the davis cup canada's denah shapovalov levelled the tie out one all in the 2nd singles match the 20 year old beat. she is karen in the kitchen of in 3 sets to force a deciding doubles for robert. and on friday rough around the doll powered spain into the semi's as he aims for a 15 title the world number one set up a come from behind victory against argentina by dominating diego schwartzman in the single 6162 he was back on court soon after to combine with marcel granollers in the doubles they overcame the argentinians in 3 sets to reach the semi's for a 2nd straight year spain last won the davis cup in 2011 against argentina. to play the craziness today on the doubles we know already everything besides in the few balls and on all the matches that so close so happy for for that big. i think both of us well i think myself well that in the whole match i think i increased the level on the on the 3rd. is a great victory he's not going to enjoy his time to rest right to be

their city and leaving them with poor basic services in another part of basra 6 at the shell own measure noon oil fields we understand that were tossers are also blocking the entrance there they're asking that the companies stop hiring foreigners and instead give jobs to iraq e.-s. they say that again that all they're getting from the oil fields are pollution and cancer and we understand that there are even cancer patients among the protesters so a lot of basic services a lack of jobs accusations of foreign meddling by the united states and iran and alleged government corruption are a big themes that have emerged in these protests basra specifically has been an area where there has been simmering tension for more than a year specifically due to a lack of reliable electricity and clean water speaking of basic services martín here in tahrir square in baghdad a high. of civic duty is emerging all along here today i've seen people have set out these garbage bags with signs encouraging people to keep the area. all right natasha thank you for that natasha came in live in the iraqi capital baghdad well

oil right now? when the international institutional investors are looking at this, they will be comping it against the companies like royal dutch shelln, and some of the national oil companies listed, rosneft, petrobras. all of thosere is stocks are trading at much lower cash levels. for aramco to appear attractive to those international investors, they will need to have a longer track record of good corporate governance, along with the dividend paying track record as the other companies involved. we will need to see the valuation come down to more acceptable levels for those international investors. the other thing is, investing in any national oil company, you are investing in something where the government has all the control. you see most of the national oil companies trading as the super oil major companies, although a lot of them are in the same regions. it is going to take quite a bit for investors to come and look at the aramco ipo and current valuation. could be a risk for aramco but could be an opportunity for international investors to get in in the international market. do you see international investors tried to get a pi

shell set to make $1 billion of profit selling fuel oil over this year.nie: we are back with jeremy stretch, cibc head of g10 fx strategy. there was a gala dinner this week in new york. ray dalio was one of the speakers, and he talked about something that is quite war betweenapital the u.s. and china. have a listen. ray: there is a trade war area there is a technology war. there is a geopolitical war. and the could be capital wars. that is the nature of the environment. how that is approached is going to determine what our futures are like. vonnie: when somebody like ray dalio says that, and clearly he has quite the record to say the least in finance, how seriously do you take it? do you believe it is true, that there might be capital wars? jeremy: you are right, one has to take what he says with a degree of credence, and certainly consider the potential ramifications of that. -- i think that is a realistic backdrop in the sense that it is something that has been framing the backdrop of some of the trade negotiations, and some of the thorny issues with re

some oil majors up on the board, shell and bp a them, but their slumped.ill they have a downbeat forecaste global economy. also that slumping oil price. credit suisse with a beat, but some words analysts used, mixed, mediocre, unimpressive. those were the ways they described these results. though credit suisse did beat, other banks did not do as well. ing on the miss board over here. european banks struggling to boost revenue. another highlight you do not want to miss, alpha but -- alphabet, a rare stumble. a quick look at the sector breakdown in europe, consumer staples posting 30% earnings growth this quarter. they are followed by utilities and health care, technology, little change. let's get to the negative, those are more telling. dent european earnings. by far the worst earnings growth, dropping as much as 35% for materials and 30% for energy as oil prices continue to fall. nejra: let's get the bloomberg business flash. fiat chrysler ditching the big banks. they announced as much as $90 million in advisory fees. it underlines the increasing trend of big companies leaning on smaller

some of the oil majors, some of them on the beat board, bp, shell.a lot of the shares slumped. shell gave a downbeat forecast for the global economy, and the falling oil prices hurt. credit suisse, a solid beat, even though we have negative interest rates. analysts use words like mixed, mediocre, unimpressive. ing didredit suisse, miss their analyst expectations, feeling the pinch of rates and struggling to boost revenue. one of the other highlights to point out is google, a rare stumble by the parent company , dented by spending on cloud business. i want to give a quick breakdown of what the sectors look like. consumer sectors in europe posting the greatest due to utilities. if we look at the negative, those are more telling because it shows why europe's earnings seasons have looked so weak, and it follows oil prices. materials earnings growth down 35% and energy down more than 25%. this might be why we are seeing europe move towards an earnings recession. anna: dani burger. steven major is still with us. thingsick up some of the -- there seems to b

that prince is now in charge of the oil ministry that's usually something that doesn't happen and ultimately that means more control over for for investors unlike with shell b.p. chevron all the other all companies they will not have that much control of will this move help this is only 1.5 will it help when the saudi economy of all is that possible. the saudi saudi are encouraging rates roughly 2 thirds of government revenues so it's going to be very hard to do in the very short term i know this is only $1.00 and $1.00 and a half percent also at the moment but it's something that will take you know years if not decades there is a vision 2030 plan by the crown prince. ultimately will help but there are a number of other factors that be they need to change i think the relationship between politics and economics is to close at the knees before more independence of the private sectors i think there is an issue with large companies dominating individual sectors because of the close connections with the royal family and there really isn't that much in terms of financing for smaller companies who wield little influence or think there's a lot of transition withi

the oil giant follows in bp and shell's footsteps in the weaker earnings parade. >>> from a new leakthe controversial keystone pipeline to wildfires fueling climate change backlash, today's trade related spike as well, throw it into a pot, could an even bigger surge in oil prices be on the way? top d.c. energy policy guru kevin book says energy buyers, beware. he will explain why, next on "the claman countdown." ♪ limu emu & doug and now for their service to the community, we present limu emu & doug with this key to the city. [ applause ] it's an honor to tell you that liberty mutual customizes your car insurance so you only pay for what you need. and now we need to get back to work. [ applause and band playing ] only pay for what you need. ♪ liberty. liberty. liberty. liberty. ♪ to earn j.d. power chevdependability awards... across cars... trucks... and suvs. four years in a row. since more than 32,000 real people... just like me. and me. and me. took the survey that decided these awards. it was only right that you hear the good news from real people... like us. i'm daniel. i'm case

oil is fungible. you can move it all over the world. royal dutch shell is a large and global company. is it much different from exxon and what it does? no, it just happens to be located in europe. i think there is that concern for the european economy but less so except on a global basis for growth -- maria: what about china? this week we saw the chinese come up with this idea that maybe it's going to be harder than people think to get a trade deal done? that, obviously, impacted markets a bit. although the president came back and said, look, we're going to find another mace to sign it because there's not going to be an a apec in chile. >> yeah, look. china is ine credibly important to investment today. i think trying to figure out when and where the trade deal might be signed is probably a difficult thing. when you step back and say china's the world's second largest economy, it is slowing, but it is also relative to dynamic, and it's carrying a huge burden from global growth per sect andive. it's -- perspective. it's still going to grow in and around 6 president which is much, much

oil and gas company, i thought this can't be right. but you say there actually is value in royal dutch shell >> look, i think in this environment when they're giving away new highs like participation trophies and you're looking for value, you need to look for cashflow generative businesses. typically, oil and gas companies haven't been that. they spent a lot of money on cap ex well, some of that cycle has changed and real dutch shell is giving you a six handle yield. so for me, real cash flow from an investment in this environment, an environment where you've seen all those excesses in private markets both in debt and equity, that's something that catches my eye. >> the one thing we talk about is low rates all the time but one angle we haven't talked about is the positive investment on many of the investment firms. private equity banking. et cetera. and that is one reason, i assume, that you like lazard. >> yeah. brian, you and i have talked about kqr and blackstone forever. those were partnerships that couldn't be owned by the index funds. then the ownership of those companies converted them into c corp. it's one of the leading asset manag

oil and gas the worst performing sector made by shell, certainly weakening up around europe.nd derivatives trading down .3%. flat. basic resources i do not think you can derive much from this. individual stocks are probably worth a bigger focus. b.a.t. having a solid session today. rolls-royce, we are watching what is happening with the sector, you see what is happening with airbus, you come out into the engine manufacturers, the joke of the sectors you both the engine onto the airplane, not the other way around. deutsche bank laying off assets out of its bank. that is up 1.23%. this is definitely a pre-thanksgiving market. 25aine: we have tallied record closes on the s&p 500 so far this year. it looks like you can pencil and 26. looks like we are headed for another record close on the s&p 500. up .2%. 10 of those record closes we have had have been in november and not a single one involved a gain of more than 1%. a melt up, that is what you are seeing in you are seeing every day persistently, no matter what happens. we have good economic data out of the u.s. earlier today wh

shell. >> royal dutch because it pays a handsome dividend. dividend.tter than a 6% one of the lowest-cost oilrs, so it's a greatba ain and a good income vehicle to add to portfolios. >> you chose a utility, another classic company that seemed to be insulated from the trade wars. exelon. a good dividend. why did you pick this one? >> so exelon has low-cost of pruction but more importantly is one of the cleanest producers out there. slates into a lot of appeal for its stock. and also i think it has the best positi for thefuture. >> you picked a retailer next, and it's key at this time of year. holiday season. and they had a very good earnings report the other day as well. while else do you like targ? >> like target because one, i think that retailers will do better this holiday season. think g we've finalten to the point where we've all experienced that, that hey, your gift just didn't make it in time and i'm sorry about it. but you know, it didn't get delivered. and so there's some tangible ability there and think target is in a good place to benefit from that. in this holiday season. >> so ma

this guy was the minister of oil and gas and basically granted himself through the shell companies lots of exploration permits and zones where he could drill for oil himself as the minister in charge of oil. so it is accurate that burisma is a problematic company in ukraine, and that it was trying to improve its image after a lot of that started to come to light, after the revolution, the orange revolution in ukraine. >> and was joe biden point person for ukraine policy at the time? >> joe biden becomes point person for the policy late 2014, 2015, 2016. that's probably a little after his son hunter biden takes this board seat in march or april i think of 2014. but it is the case that his dad was already vice president at that time and a period in which burisma was trying to clean up its image, pointing a lot of very prominent people, like the former president of poland and so forth, along with hunter biden, the vice president's son, to its board and putting out press releases touting these names that were now attached to that company. >> okay. and the letter continues, requesting the te

he didn't really expect to pay out a yield, really on par with the other big oil majors, like exxonmobil, chevron and shellndering if it isn't received well, i always like to play it out, is it a reflection on say saudi arabia, anything, anyone connected with the kingdom or a bigger indictment of traditional oil. what do you think? >> i think some people believe it's a bigger indictment of oil. they're talking about peak demand. some day in the near future we'll not use oil anymore. i don't personally believe that. but some people do. so i think it really goes back to an indictment of saudi arabia, the killing of mr. khashoggi that was a negative. a lot of people don't want to be associated with that. the ability of people to sue saudi arabia for things they couldn't before when it was state-owned company. for example, global warming concerns. risk of the no-pac exchange and 98% of the company is still owned by the saudi government they are making the major decisions, expecting other people to put in billions of dollars. that doesn't usually work out that way. neil: making sense what seems to be off the ch

stunt where fracking is a technique that taps into oil and gas reserves by turning the drill horizontally and then going hundreds of mrs into a shell formation the casing of the well as then punching with explosives and a mixture of sand and chemicals is forced through a very high pressure and all this breaks apart the shale rock creating pos ways for the oil and gas to flow into the well while we are about the fracking holes he's an anti fossil fuel campaigner with friends of the u.k. . oh we are delighted than i've been on the phone all morning with friends in lancashire who face these after quakes and fought the sender straight for over 8 years and they fought the filth force of the government to make it happen the government is not just decided they've decided because of this uprising from the grassroots across the country and it truly is testament to their hard work compassion to stop 1st scandalous industry from taken hold in a group of friends of the earth and account dinners across the country were always going to push for a complete ban him from not just an england across the world not here not any worse the motto you're r

a weaker pound but oil majors really slumping, bp and shell bringing the biggest points contribution00 -- ftse 100. tom: i really want to get to gabriela santos on international investment later in the hour. on the overall central bank down, from where you proceed in the investment world, our global central bankers in touch with the message and in touch with the underlying theory or are they making it up? >> i think they are trying to provide as much offset as possible to policy uncertainty. we have seen that from the fed, we have seen that with the ecb. they are trying to do as much as possible. we wonder how much it helps and whether it can create more issues down the road. as bill dudley was pointing out, around the issues of corporate and government that. -- that. -- debt. tom: fiscal space, we are doing that in october. . regardless of who wins the election, more fiscal spending is in the cards. --is just tom: you and jp morgan see the political will for fiscal expansion. >> it will depend on the composition of congress, the exact amount that we see, but there is focus on spendi

would last well fracking is a technique that taps into oil and gas reserves by turning the drill horizontally and going hundreds of meters into a shell formation the casing of the well isn't punctured with explosives and a mixture of water sand and chemicals is forced through at high pressure this breaks apart the shale rock and creates pathways for the oil and gas to flow into the well but we've been speaking to jamie pieces about the fracking holter he's a an anti fossil fuel campaigner with friends of the u.k. or we are delighted and i've been on the phone all morning with friends non-teacher his face these earthquakes and fought this and this race is over 8 years and they fought through force of the government to make it out and the government is not just decided they decided because of the size of rising from the grassroots across the country and it truly is a testament to their hard work and passion to stop us scandalous and this recently can open a group of friends of theirs and. account dinners across the country were always going to push for a complete ban in front and not just an ngo and across the world and not here not an

$111000000000.00 and in 2018 now if you with us to stack up all the other oil companies in the world in specially the big companies exxon b.p. shell they will come nowhere close to its profitability so how do you value that particular company there's different methods or methodology used which can be used but not for them stacked up. for international investors so like you said in 2016 the crown prince of prince prince mohammed bin solomon wanted a 2 trillion dollars for the for the company but valuations from from measuring it by by oil prices currently would value to about $1.00 trillion dollars but international vest is because of the geopolitical risks involved in this particular. particular company plus the government control of this company after the sale because there's still a 98 percent say that the valuation is closer to between $1.00 and at a very stretch $1.00 trillion dollars and out of how important is international investment in iran for saudi and for armand's economic plans for the future to diversify the economy away from oil and that's key because initially they wanted to raise 100000000000 dollars and they wante

shell came in here. my question was, "if there's a earthquake,e, what is your eaearthquakplan?" the lady laughed at me, then rigight after they had that meeting, you had that big oilll in the gulf of mexico. the whole community watch it. if they did that out here, we'd be screwed real bad. inglangasa: what are they gonna do if they have an oil spill? be oil everywhere. our fish, whales, seals. we won't be able to get our food. thompson: when they talk about developing the 1002, who's gonna benefit? is there other oil available that's more easily accessible, and should we look intoto alternative clean energy? rexford: life is a lot easier nowadays than it was before any of the development occurred. we have some folks still alive who have gone through starvation. they do not want to see that ever occur again in our communities. these gravel roads, the power lines, the houses that are built. pretty much every infrastructure that you see here has come from taxing the oil industry. patkota: we're being asked to keep the oil in the ground in our backyard, sacrifice our economic opportunity, to save their world? never mind what it takes to run the schools, the power plan