. ♪ >> from west texas shale, to drilling rigs offshore. >> need to handle the handrail. >> from angolaa. >> you are looking on the inside of an lng tank. good job, eric. >> the giant company is active in 138 countries. these are challenging times for big oil. the nobles like

. ♪ erik: from west texas shale to drilling rigs far offshore -- >> offshore rules. hand on the handrail. ok? erik: from angola to australia -- >> you're looking at the inside of an lng tank. erik: our thirst for energy has pushed chevron to almost every corner of the globe. >> we believe there's opportunity to progress. >> good job, erik. erik: the giant company is active in 180 countries. >> it is the largest resource project in australia. erik: pumping almost 2.6 million barrels every day. these are challenging times for big oil. fracking has upended the global market. renewables like solar and wind power are getting cheaper, and o

." ♪ ♪ erik: from west texas shale to drilling rigs far offshore -- >> offshore rules -- we need a handok? erik: from angola to australia -- >> that right there is the jetty. >> you're looking at the inside of an lng tank. erik: our thirst for energy has pushed chevron to almost every corner of the globe. >> we go where there's opportunity to invest. >> good job, erik. erik: the giant company is active in 180 countries. >> it is the largest resource project in australia. erik: pumping almost 2.6 million barrels every day. these are challenging times for big oil.

a few years ago in texas, the future was so bright, the flares from the oil rigs were visible from outer space. some 200 drilling rigs formed an orange beacon in the eagle ford shale area of south texas. motivated by high prices and armed with new drilling technologies, producers struck black gold in the shale fields, pumping out record barrels of crude around the clock. all those riri required workers and the industry went on a hiring spree. mike: i can remember the first time i made $50,000, i thought that was amazing. the first time i made $200,000 a year, i thought i was donald trump. scott: the lone star state alone accounted for nearly half of all jobs created nationwide between kevin: the story of u.s. producers for the last four decades has been one of unmitigated production enthusiasm. very enthusiastically, producers borrowed and invested and continued to grow their production in the u.s., and there was a market for that oil. until there wasn't. scott: all that "texas tea" flooded the market. and the basic laws of supply and demand kicked in. too much oil brought the prices crashing down. so while drivers celebrate cheap gas, williams is one of 72,000 te

ranch means that what we might be seen by measuring things in terms of shale counties is an accelerating conventional decline. texas has more stripper wells that anybody and that anybody knows their economics really been challenged. there is a lot of inertia in shale production. just reclamation costs and other things that would keep things on for longer. uncle charles needed 12.5% or whatever that some of these small operations. i think that the ego for it has not gone down quite as much, but clearly it's gone down. my price forecast was higher than what we've now seen for most of this year. i am continually making adjustments but i will go back to what i said before that i need to be prescribed about the the continued growth in particular. an eastside -- let me go back. this is just to remind us how changes have in the whole shale revolution. you look at what is happening to a lot of these dates were you long-term to find a bunch of the state of mouse that and this is something i just put into keeping in mind. if we look at u.s. production mix, the only thing i add to what was that before is the main shales dates

shale oil production will likely fall over the next couple of years, and with that, oil prices rose. the benchmark west texas intermediate reached the $32 a barrel level on monday, up more than 8% from the end of last week. the iaea's medium term report predicts a slowdown on the back of the prolonged decline in crude oil prices. this suggested the current oversupply will ease, triggering a lot of buy orders. market watchers say the buying trend was boosted by confirmation last weekend of fewer oil rigs operating in the u.s. but they also point to the iaea that global supply will exceed demand this year. they say it will be some time before we see a significant recovery in oil prices. let's see the impact on the markets. overnight, wall street rallied with all major indices posting gains of just around 1.4%. here in tokyo this morning, the nikkei is trading higher by just about .5% at 16,199. investors are feeling bullish as their concerns eased on global stock markets, including china. the oil tailwind has lifted share prices with the energy and materials sectors leading the advance. on to currencies now, t

texas wildcatter to go out there and drill, a wildcatter that is also a fracker. now, this senator has nothing against fracking, but where is our fracking done? it's done in the hard shale rock of the dakotas, of oklahoma, of texas. they go down under high pressure and shoot water and chemicals to break up the shale rock. it's solid rock. what does the state of florida sit on? it sits on a porous honeycomb of limestone that in that porous rock is filled with freshwater near the surface. so if you go in there and start doing high pressure fracking that we do successfully to shale rock of which was done by the dan hughes company, given a permit by the state of florida until the county commission of collier county found out about it and started raising cain and suddenly the pressure of what that fracking with the high-speed chemical going into that porous limestone would do, not only to the water supply of florida but to the very foundation of florida. if you ever look -- envision a piece of coral that our divers go down in some of the national reefs, you've seen that beautiful coral and it builds up. that's very similar to how florida was formed. it was over years, over a

and briscoe range means what we might be seeing in shale counties is an accelerating convention decline. there are a lot of stripper wells in east texasnd those are economics that are really being challenged. there is a lot of inertia in shale production. reclamation costs and other things that can keep things on longer like charles and eating his 12.5% and small operations. so i think eagleford has not done down as much. my price forecast was higher than we have now seen for most of this year's so i am continually making adjustments but i will go back to what i said before about i need to be proved wrong about continued growth in non opec supply and where that u.s. is. these -- let me go back. this is just to remind us how change causing volt shale revolution is, you look at what happened to a lot of these, long-term decline, a bunch of shale states have stepped up and this is something i just put in to keep this in mind indeed if we look at the u.s. production makes the only thing i would add to what was said before is beside the main jail states, these are mixes of conventional and shale production, gulf of mexico and we think the

texas, are successful, oklahoma, they're waiting to pounce on the opportunity. joining us is a bloomberg energy reporter. david, have you heard from shaleroducers? are they waiting to pounce? david: i mean, they would like to get that being said, they are trying to portray a little bit more caution than last year. they absolutely did pounds last year. they pounced and brought the race back on line again and thought things would be great and we have settled back into a bear market again. the bottom fell out. last year was an example of pouncing. land inest owner of eagle protests that even if oil prices doubled to $60 a barrel, they would be cautious and wait to rush in. that being said, there are some cash-strapped explorers out there who need the revenue coming in fifth it is a question of whether you believe -- vonnie: exactly, and you were at the industry conference. that suits him to say that, right? if he is putting out the idea that there will not be any shale or fracking done in eagle third, he would be hoping that would influence others. there will be a lot of posturing, who rates the collective embargo, if you like? david: exac

shale producers will be repaying back their debt. you've talked about the chart cash there is only a certain amount -- the chart. this is a dramatic decline. you can't stop the wildcat in texasas oil rallies, 4000 wells were drilled. the world has changed in oil, sir. the world has changed. the u.s. could take out 700,000 barrels at these prices this year. that is also critical, isn't it? >> well, i wrote a book about world, and i think they have to justify -- the long-term is also an issue. what has been happening is the destruction of investment capacity and the high cost for producers. the u.s. will have a multitude think thers, but i world does needed balancing in the supply and demand, and having this first initial freeze and coming into production cuts will rally. anna: thank you so much for joining us. 30 minutes to go before the start of the european trading day. oil is just into negative territory. futures in london are a little mixed. 40% higher. ♪ guy: welcome to "on the move." 7:30 in london. we are counting you down to the european open. here is what we are watching. now for the hard part -- the oil story is fascinating today. you have the deal between saudi and