wildcatter william rutter, jr.t the oil industry in 1959 and re-entered when the promise of profits returned. when the price of oil went up enough i started looking at deals that would pay out in a reasonably short period of time and that the total estimated value of the reserve was an attractive multiple of the perceived risk. these commodity prices go up but always come back down. the producers want to produce a lot. the consumers want to consume less. this is the law of supply and demand and it works. many new suppliers won their gamble. with the lure of higher oil prices and profits, oil production almost doubled in america and the o.p.e.c. countries. as profits soared, producers began pumping even more oil, and soon there was a glut. by 1985, the price of oil had plummeted. we asked economic analyst richard gill what this story tells us about the law of supply and demand. it tells us how consumers and producers react to higher prices. with higher oil prices american consumers found ways to use less oil. their

zuckerman, "wall street journal" writer and author of book, frackers, the story of new billionaire wildcatters, throw it to you first. honestly who would have thought with war in the middle east and countries like syria and what happened with israel and gaza strip, on top of the fact that iran is a threat we see mere $82 a barrel? how could that be bad news at all? >> years ago it would be tremendous news for the united states. today it is good news. not as good as it used to be because the industry is so big, energy industry is so big for us and important for us in the united states. it is 1% of the 2 or 3% of the gdp over the last few quarters and so those guys will be hurt. they won't be crippled. we will continue to produce. we're producing nine million barrels a day up from five million, a real revolution. it will continue but not pays if we get 75, $70 a barrel oil. liz: half the world is laughing, half the world is crying. stick with the people who are laughing, absolutely thrilled. cheryl, i believe market watch did interesting assessment how much money the american family will save at

but if you talk to the guys in the fracking business, most of whom, by the way, are wildcatters and entrepreneursthey can go a lot lower if they have to. look, this helps consumers. it's about $100 billion tax cut for consumers. it helps producers. it helps manufacturers. it helps the whole -- the whole cost structure of our economy is coming down. it keeps the inflation rate down. this is so totally pro-growth. now, i acknowledge that the energy producers will be the least of it. okay, i get that. but everybody else -- everybody else, unambiguously benefit. i think people have misread this positive oil shock, and i want to put in it's going to cause better growth and lower inflation. good for stocks. >> okay. >> i just wanted to push back a little says bit. you know what i paid for gas yesterday? $2.75 a gallon. >> $2.75? >> i was literally almost drinking it. it was that cheap. >> you're dead right. it also makes our manufacturers cheaper. >> more competitive. >> it makes us more competitive. let's not kid ourselves. >> unless the bear market in oil is being caused by lower economic growth arou