prices are putting on kingdom and low oil prices are a function of the amount of oil produced in the u.s. as a result of fracking. as to whether all of this is a good or bad thing for us i'm going to come back to them. as for my second obsession who wouldn't be obsessed with with alabama brie former ceo of chesapeake love them or hate them and a lot of sentiments out there he's within of the remarkable characters that make -- business stories read like novels. one of those characters that proves the old ad is truth are of stranger than fiction over and over again you couldn't invent a guy like this. if you tried -- and he's like many of needs great characters in the business world a mix of really remarkable positive attributes with some really negative dangerous ones as well. i finished any very first story for vanity fair with a quote that i always think about and it is a quote from calvin and hob and calvin says to hobbs do you believe in the devil a supreme evil being dedicated to temptation and corruption of man. he say i'm not sure man needs the help. so i always love stories th

now there's oil roads and oil fields. at night some of these trucks to drive along gravel roads and they don't poison. blocking water it's all water logged the thing into the ditch. because they're too lazy to drive to the dump station and that it's going into our river going into our creeks if going into our spot on. the feeds not in the water but it is you know they're not telling the truth i have twenty nine grandchildren i want them to enjoy this river where i do don't want them to walk in the water i want them to catch a fish you can eat you know want to grow a garden do won't have to worry about poisoning the planet i want to have plants with their medicine it's not deformed now because of the things that are in this water. oil workers are best suited to judge the eventual pollution is caused by fracking. unfortunately this problem is not a priority they are in survival mode first and foremost they are in need of or. during the journey phase radioactive to prepare out back to the surface is a major risk for workers

sell a month supply of the palm oil company p.t. will mock. the company is trying to expand its plantations. what a mug it must be when it's not how do you get a man. in league two i don't know where you are given the get out. you got i. been on my end of the was it an easy thing for the unlike me. what i think about them the numbers it's all in the. hope on then. someone bought a whole bunch. bomb up on. you too often to come on up come up with that new movie you go to the moon one little siab a movie mohan so get up on lalama. but not good got to do with. the book but he. wouldn't be like hotness in the. guy thing but we could put a little bit of yeah yeah big what if in but not go blue i don't leave my little thought of him but i get up you need yeah. he want to send a big open up on you do up on the most of us and. the more you know he's not the only one protesting a few kilometers down the road there's another dispute between local farmers and another wilma supplier. you know someone i don't know i thought he didn't own the lot of. the us

do to the price of oil? paolo: that is the issue. today, we have an oil price, and i think this will stay as it is for the next three or four years. every time the oil price moves up, shale oil in america will act as a kind of seething, so $70 to $75 a barrel will be the price for a few years, then the lack of investment might push prices higher, even in the , probably$90 or $100 three or four years, and less investment except again, and you have all this unknown. francine: i remember chasing you around the world trying to get a comment 20 years ago when i used to cover opec. at the time, did you think it would change so quickly? did we underestimate the force that shale producers in the u.s. have become? paolo: certainly everyone underestimated the force and the volumes of shale oil. now i have been reading that shale oil might pick up to 10 million barrels a day, so 10% of world production can come from shale oil. this has been such a threat to the industry that we achieved to results -- to bring results.

i spoke to ceos to see how oil emand could be affected. >> the growth on the oil side has been strong. >> it would have an impact on global demand, no question about hat. >> i think demand will maybe not be as strong as the past. years but solid. >> the trade tension is affecting the in component of demand. >> there is a lot of concern about emerging markets and what is happening there, but the main growth you are seeing, there is a very robust economy in the u.s., you are seeing china, india. we think demand will be there. we are watching it but not concerned. alix: what do you think? >> they are trying to sound positive, but we are about to replay the asian debt crisis, except the demand is twice as high. if you look at the key countries, argentina, brazil, turkey, india, it is 9 million barrels per day. that demand is going to go down. urkey is down 50%. brazz -- brazil will be under pressure. consumption will slow and we could lose half a million barrels to one million barrels per day from these countries. alix: do you agree? >> i have seen this before, every five years, there is

sell a month supply of the palm oil company p.t. will mock. the company is trying to expand its plantations. what i get must be when is not how do you get a man. the only one and only you are given the get out. you got up. and out of the was it an easy thing for the unlike me. with the want to talk about them the number is a limit and if i go on hold on then. someone bought a hold but. i'm up on my hobby is going to come when i come up with that new movie . the moon one went out of sight yabba moon no hunt so job on law. but not good got to do with. the book but he. wouldn't be lost in its entirety if that's the guy thing but we could put a little bit of yeah yeah. but not go blue i don't leave my little foot of him but i get you up you need and yeah. you do so want to send a big open up on your bill up on the most of us and. more do you know he's not the only one protesting a few kilometers down the road there's another dispute between local farmers and another wilma supplier neil you know someone i don't know i thought he didn't own the lot

there will also be a lot of oil. the rich gas wells also produce oil. there are also a lot of oil zones that are shallower up the column that we haven't gotten to yet on the testing site. we have proven there is a lot of rich gas. there is also some dry gas. alix: when do you think you will see well results from alpine high? >> we put some out last quarter. we brought on a pad in the blackfoot area, where we drilled 12 woodford wells. one is a half section test. those wells have come on very nicely. we have shown several examples. our program this year is back end loaded. we have about 92 wells we will bring on. a lot of them are the back half of the year. we are constantly bringing on new wells. alix: when do you feel you will turn from more donation to a full-scale development timeframe? >> that is a process, we are in that optimization period. we did some half-section tests. now we have converted those into full section tests. you see those results. at alpine high, we just did a half section woodford test. we will come back with 10 barnett wells on t

every day we consume palm oil, labeled as vegetable oil. and a lot of it is coming from hehere indndonesia. the'vv converted t the lowlands alread. and now the palm oioil plantatis are e moving up p and up thehe , toto here, leeuser raiinforest. we've gotta go. >> leuserer isn't the onlnly ple experiencing deforestation. sincnce 1985, more than 50% of e forests in sumamatra have b been cleared, not just for palm oil plantations, but also for paper, wood, mines, , and road infrastructure. what took thousands ofof years to grow is coming down at an alarming rate. >> look at that. we traraveled d for over r an h, deep into t this palm o oil plantition, till w we've got h , the f front line of the expansi. this expapansion here is illegal under indonenesian law, and it's all happening for p palm oi this timbmber wilbebe shippededf to market, and in its place, in a matter ofof days, yououng m oil seedlings wiwill be planted. >> palm m oil is one of the momt widespreread vegetable oils throughout the world. within indonesia itself and also china

oil equities cannot catch up with the oil price. why? the sector is set to deliver a record cash flow and rein in spending. one theory, climate change. big oil talks a good game, cutting emissions, reduce flaring and shipping portfolios to a net -- emit less greenhouse gas, but that cost money. a new report shows the largest european oil companies is that percent of on new energies. that number will need to rise to 17% by 2025, that is billions of dollars. some companies can handle it. shell will spend $4.5 billion so it has some wiggle room, but others cannot. total spends just 3% of its budget on new injuries -- energies, and that could quintuple by 2025. at the same time, spending more money on a traditional portfolio. jpmorgan says this is a structural shift and overall will have to rise, hurting shareholder return. one reason investors are skiddish on the sector. who are the winners and who are behind the capex curve? i recently caught up with the ceo of equinor. in part, to reflect shifting trends in the energy market. eldar: we do

oil prices. the group said it would boost output only of customers requested it. we spoke to alexander novak about his country's output capacity. let's see how september ends because the month is not yet over. if we are looking at all these ofbers, we have $47,000 out 300,000. that means are still within the october cut level. we have always been within those levels. i would like to once again underscore the fact that this is with all the agreements that were made in june 2018. i would like to remind that we should increase output by about one million barrels. so far, we only managed to do five or thousand barrels. why they once again recommended achieving 100% conformity. much extra oil production can you put into the market by december? terms of: in short-term potential, it's what a couple hundred thousand barrels. prospects, a lot depends on what we will ready to be -- what we will be ready to give. no decisions have been made yet. know, we have quite a complex system. currently ist reviewing

i spoke to oil ceo's to see how oil demand could be affected. >> so far the demand growth on the oil side has been strong. despite some of that turmoil. >> china falls off significantly, that would have an impact on global demand, no question about that. >> i think demand will maybe not be as strong as the past years but solid. >> the trade tension is affecting the emerging market component of demand. >> there is a lot of concern about emerging markets and what is happening there, but the main growth you are seeing, there is a very robust economy in the u.s., you are seeing china, india. so we think demand will be there. we are watching it but not concerned. alix: the ceos sound positive. what do you think? >> they are trying to sound positive, but we are about to or the1998, and 1999, asian debt crisis, except the demand is twice as high. if you look at the key countries, argentina, brazil, turkey, india, it is 9 million barrels per day. that demand is going to go down. the argentina peso is down 50%. turkish lira is down 50%. brazil is going to be under pressure. consumption is goi

tack on -- texas would not be texas without the oil. but i do think people migrated to texas they see it as a freebie. and most industries are not social welfare organizations they don't care about those consequences of behavior and texas is still very stingy with it social net if you subtract 20 from public schools which is the primary obligation because you are feeling your children are not providing children with your workers of the future it is a conundrum. texas can afford to be more generous and farsighted. there could be some trauma left over and it was never rich the way people think of it as being rich there are more millionaires per capita, certainly in connecticut but south dakota i think? someplace you would think really? when good times are in texas the oversize dollars for sale in the airport so you know the oil is flowing. but it never really flows down to the people but that doesn't mean there was not money gushing into the state. but also in our state government with the liberals with an $8 million surplus. it was a $6

the gas-to-oil ratio. rising means you are producing more gas, falling means you are producing more oil. investors like oil. here's the problem. a newborn well produces a lot of created, but as it grows into an adult, it produces more and more gas. it also changes the predictability of the reservoir. pioneer was hurt from rising gor in 2017, and last quarter, natural gas horizontal production in the permian rose 78%, while oil rose 37%. possible solutions? find a new well to offset the aging ones, drill in the oilier parts of the reservoir, and find ways to keep higher oil content for longer. goldman sachs thinks natural gas production growth will outpace that of shale oil. the question is, what can companies do about it? i caught up with richard dealey and asked him how he is dealing with rising gor. >> as you produce oil, your gas ratio goes up over time. we have seen the phenomena happen and we know it will happen with our horizontal wells. it is built into our production curves and forecasts. i do not

there will also be a lot of oil. the rich gas wells also produce oil. there are also a lot of oil zones that are shallower up the column that we haven't gotten to yet on the testing site. we have proven there is a lot of rich gas. there is also some dry gas. alix: when do you think you will see well results from alpine high? >> we put some out last quarter. we brought on a pad in the blackfoot area, where we drilled 12 woodford wells. one is a half section test. those ones have come on very nicely. we have shown several examples. our program this year is back end loaded. we have about 92 wells we will bring on. a lot of them are the back half of the year. we are constantly bringing on new wells. alix: when do you feel you will turn from more donation to a full-scale development timeframe? >> that is a process, we are in that optimization period. we did some half-section tests. now we have converted those into full section tests. you see those results. at alpine high, we just did a half section woodford test. we will come back with 10 barnett wells on to

crude oil strike. the pipeline began operating in 1973, and that's when the tanker traffic in prince william sound happened. about 15 years past before the spill. the oil industry in alaska from the date oil was discovered had an enormous mind share in the state. it was instantly recognized as the biggest source of government funding. for long time it was the only source that matter. the oil industry produced money so fast in the state coffers that one of the jokes was even the alaska legislature could not waste it all. some of it was accumulated in what we call the permanent fund. some of it was spent on state services. so the oil industry besides generating all this money, they took an acute interest in politics because they are always interested in politics and taxes and in regulation. over time, their influence over the legislature became enormous. and it was almost mandatory to be oil friendly to get elected to the legislature in this state. >> who were some of the big companies that were operatin

i spoke to ceo's to see how oil demand could be affected. >> so far, the demand growth on the oil side has been strong, despite some of that turmoil in china. >> if it falls back significantly, it would have an impact on global demand, no question about that. >> i think demand will maybe not be as strong as the past couple of years, but still solid. >> the trade tension is affecting the em component of demand. >> there is a lot of concern about emerging markets and what is happening there, but the main growth you are seeing, there is a very robust economy in the u.s., you are seeing china, india. we think demand will be there. we are watching it but not concerned. alix: the ceos some positive. what do you think? phil: they are trying to sound positive, but we are about to replay the asian debt crisis, except the demand is twice as high. if you look at the key countries, argentina, brazil, turkey, india, that demand will go down. 50%.rgentina peso as down 50%. the lira will be under pressure. consumption will slow and it will drop. 50%. the lira will be under pressure. consumption will

that would do to the price of oil? paolo: that is the issue. today, we have an oil price, and i think this will stay as it is for the next three or four years. every time the oil price moves shale oil in america will act as a kind of ceiling, so $70 to $75 a barrel will be the price for a few years, then the lack of investment might push prices higher, even in the region of $90 or $100, probably three or four years, and less investment unless investment picks up again, and you have all this unknown. francine: i remember chasing you around the world trying to get a comment 20 years ago when i used to cover opec. at the time, did you think it would change so quickly? did we underestimate the force that shale producers in the u.s. have become? paolo: certainly everyone underestimated the force and the volumes of shale oil. because now i have been reading that shale oil might pick up to 10 million barrels a day, so 10% of the world production can come from shale oil. now this has been such a threat to the industry that we

i spoke to oil ceo's at the berkeley conference to see how oil demand could be affected. >> so far, the demand growth on the oil side has been strong, despite some of that turmoil. >> if china falls off significantly, it would have an impact on global demand, no question about that. >> i think demand still is going to be maybe not be as strong as the last couple of years, but still solid. >> trade tensions give a lot of concern to the oil demand growth because it is affecting the e.m. component of demand. >> there is a lot of concern about the emerging markets and what is happening there, but the main growth you are seeing, there is a very, very robust economy in the u.s. you are seeing china, india. we think the demand is going to be there. we are watching it but not concerned. alix: phil is the ceo. sound positive. what do you think? phil: they are trying to sound positive, but we are about to replay 1998, 1999 with the asian debt crisis, except the demand is twice as high. if you look at the key country -- countries, argentina, brazil, turkey, india, it is 9 million barrels a day. th

the world's number two oil producer and meaning higher prices would also mean higher revenue. you know well and oil prices already have been on an elevated basis for quite some time and yes that has led to an increase of production comes to fracking as you mention oil prices here in new york also gaining a good two percent on monday and this year it is pretty likely that the u.s. actually will become the biggest producer on earth just to give you a rough idea of u.s. oil production all about doubled in the pasta decades why output from saudi arabia or russia pretty much remained the same and we also saw that oil companies actually traded quite to the upside here on monday without those oil stocks and the losses here on wall street would have been even higher against go to new york thank you now here in germany and. heads of carmakers on sunday to discuss additional measures to avoid large scale diesel vehicle bans in german cities these so-called diesel summit ended in conclusively there will be more talks later this week meanwhile some parts of the ottoman model of industry a

from high oil prices. we have a sliding scale of taxes and if they will price goes up it is the government of the takes this profit this incremental profit but not the companies they get just a very small proportion of the incremental value ok and sat me what i did a country could step up as production is iraq able to do that for example. i think iraq is mired in its own issues a bus full of protests and that's the main oil city in iraq i think trump the reason he puts pressure on saudi arabia is because he wants the saudis to do it it was the saudis to be the ones to flood the market and from his perspective he says look i took iran out of the game i want you go you guys now can take the market share the saudis are not seeing it that way with regards to donald trump i think the oil is there that there is the capacity to fill those two million barrels if opec genuinely do decided to do so however the problem is opec are not necessarily happy with the treatment of iran they're not of the which they do the a

alix: president trump goes after opec for high oil prices -- higher oil prices. can saudi arabia and russia do anything about it? flying high on alpine high. apache ceo digs deep into the plans for alpine high. he talks about oil and gas exposure. here comes the sun. sun power breathes a sigh of relief after getting exclusion from u.s. tariffs for imported solar panels. how competitive they are over their chinese rival. alix: i'm alix steel. welcome to "bloomberg commodities edge," 30 minutes focused on the companies, physical assets, and trading behind the hottest commodities with the smartest voices in the business. spot on is our take on the big story. the spotlight is a tit-for-tat trade battle between the u.s. and china. we have you covered from all of the angles. joining me is bloomberg's nouri malik, and sterling smith, and bloomberg's metal in mining reporter joe doe. things focused on lng, the its lngpped about 7% of there are china, and $132 billion worth needed to fund a second wave of projects. wewe have very cheap gas and know how to build a vocation

i spoke to ceo's to see how oil demand could be affected. >> so far, the demand growth on the oil side has been strong, despite some of that turmoil in china. >> if it falls back significantly, it would have an impact on global demand, no question about that. >> i think demand will maybe not be as strong as the past couple of years, but still solid. >> the trade tension is affecting the em component of demand. >> there is a lot of concern about emerging markets and what is happening there, but the main growth you are seeing, there is a very robust economy in the u.s., you are seeing china, india. we think demand will be there. we are watching it but not concerned. alix: the ceo's, some positive. what do you think? phil: they are trying to sound positive, but we are about to replay the asian debt crisis, except the demand is twice as high. if you look at the key countries, argentina, brazil, turkey, india, that demand will go down. the argentina peso as down 50%. the lira will be under pressure. consumption will slow and it will drop. we could lose half a million barrels to one million

now there's oil roads oil fields. at night some of these trucks to drive along the gravel road and they don't poison . blocking water and salt. all the all the things into the ditch. because they're too lazy to drive to the dump station and that going into our river going into our creeks it's going into our spot on. the sea it's not in the water but it is you know they're not telling the truth. i have twenty nine grandchildren i want them to enjoy this river where i didn't want them to walk in the water one compute kitchen fish can eat you know want to grow garden dueled have to worry about poisoning the planet i want to have plants with their medicine if not before and now because of the things that are in the water. these dilapidated barracks will probably continue to landscape for eight years to come. construction sites for abandoned by the dozen and left to rest and. housing construction began and the peak of the realest boom is now nearly complete . occupied in part by survivors of the neighborhood seems sadly em

sell a month supply of the palm oil company p.t. will mock. the company is trying to expand its plantations. and what a mug it must be when it's not how do you get a man is. the only one there know when you're given the get out. you got up. in a month and that otherwise wouldn't you say that the undermine that many. of them want to talk about them the number is a limit and if you're on hold on then. someone bought a whole bunch. bomb up on my hobby is going to come when i come up with that new movie you go to the moon one little siab a movie mohan soaked up on law. but not good got to do with. the bump out of the butt but he. wouldn't be lost in its entirety if that's the guy thing but we could put a little bit of yeah yeah big. blue i don't leave mobile phone up in front of that but you need. want to send a big open up on your bill up on the mobiles and. the more you know he's not the only one protesting a few kilometers down the road there's another dispute between local farmers and another wilma supplier you know. someone i don't know i dou

tack on -- texas would not be texas without the oil. but i do think people migrated to texas they see it as a freebie. and most industries are not social welfare organizations they don't care about those consequences of behavior and texas is still very stingy with it social net if you subtract 20 from public schools which is the primary obligation because you are feeling your children are not providing children with your workers of the future it is a conundrum. texas can afford to be more generous and farsighted. there could be some trauma left over and it was never rich the way people think of it as being rich there are more millionaires per capita, certainly in connecticut but south dakota i think? someplace you would think really? when good times are in texas the oversize dollars for sale in the airport so you know the oil is flowing. but it never really flows down to the people but that doesn't mean there was not money gushing into the state. but also in our state government with the liberals with an $8 million surplus. it was a $6

there will also be a lot of oil. the rich gas wells also produce oil. there are also a lot of oil zones that are shallower up the column that we haven't gotten to yet on the testing site. we have proven there is a lot of rich gas. there is also some dry gas. alix: when do you think you will see well results from alpine high? >> we put some out last quarter. we brought on a pad in the blackfoot area, where we drilled 12 woodford wells. one is a half section test. those wells have come on very nicely. we have shown several examples. our program this year is back end loaded. we have about 92 wells we will bring on. a lot of them are the back half of the year. we are constantly bringing on new wells. alix: when do you feel you will turn from more donation to a full-scale development timeframe? >> that is a process, we are in that optimization period. we did some half-section tests. we did those last year. now we have converted those into full section tests. you see those results. at alpine high, we just did a half section woodford test. we will come back wi

a lot of these are people that have moved in with the oil. there is no place to buy in town they bought a lot so what here probably three four acres lots and bills out here. for man are sitting in a car when the fifth gets shot in the head. all four have different versions of what happened one of them is on the death row there's no way he could have done it there's no possible way because the lists do not shoot around a corner. what politicians do to. put themselves on the line they get accepted or rejected. so when you want to be president. or some want to. have to lie to the press this is what the four three in the morning can't be good. i'm interested always in the waters about how. to. best suit. my body told me that i belong with the boys but my thoughts my mind with that belong with the girls. i would rather have surgery stubs to be of any particular. person's doctor. i was born a male had a sex change when i was thirty years old. i've now been living as a woman for twenty eight years and i fully recreate this. problem should have gone

of oil. went up by the money i would. get in a million years and i do it you know what i'm going to get on with the i'm going to read that i mean what do you need i mean you're going to. i mean you know what i mean that really with it. yeah but it could. but it could. not indonesian families buy into the problems that lead to greater prosperity. millions of chosen to continue with their traditional farming practices these villages in the sim auction province of jumbo. land as they have done the hundreds of years. explains the three principles of the family and mostly by the somebody who can look at the body they were with if they were that many muslims in that i wouldn't that much of. when you put them out there and then you could put it that amount would only go when you don't know that it will be the name of one thing and what would you of them not do up without be able cobol that they go to by the bible doesn't say. by that they will move there. you know did. you know that. growing fruit is not sustainable and other cr

president is pushing for lower oil prices but thanks to the fracking technology the united states has become the world's number two all producer and meaning higher prices would also mean higher revenue right now well and oil prices already have been on an elevated basis for quite some time and yes that has led to an increase of production when you comes to fracking as you mention oil prices here in new york also gaining a good two percent on monday and this year it is pretty likely that the u.s. actually will become the biggest producer on earth just to give you a rough idea of u.s. oil production all about doubled in the past decades why output from saudi arabia or russia pretty much remained the same and we also saw that oil companies that actually traded quite to the upside here on monday it was all those oil stocks and the losses here on wall street would have been even higher against go to new york thank you now here in germany a chance at heads of car makers on sunday to discuss additional measures to avoid large scale diesel vehicle bans in german cities these so-called diesel

this oil field isn't all. good for everybody we have sacred land here we have virgin land here and now there's oil roads and oil fields. at night time some of these trucks to drive along gravel roads and they don't poison. rocking water it's all water the all the things into the ditch. because they're too lazy to drive to the dump. and that going into our river going into our critics if went into our spot on. the food not in the water but it is you know they're not telling the truth. i have twenty nine grandchildren i want them to enjoy this river where i didn't want them to walk in the water i want them to catch a fish if you can eat you know want to grow garden did you would have to worry about poisoning the planet i want to have plants with better medicine if not before and now because of the things that are in the water. oil workers are best suited to judge the eventual pollution is caused by fracking. unfortunately this problem is not a priority they are in survival mode first and foremost they are in nee

equity markets this morning, keep an eye on oil. oil is a bit lower. trump could go after the strategic petroleum reserve. the dax is up 36.5%. ubs.ust heard from we will talk about that in a moment. paris is up. unicredit, basically saying unicredit could be looking at abm or lloyd's. interesting take on that. santander gets the dealmaker in play. he moves houses. all the deck chairs are changing in the banks. 2019 is going to be the deal year for banks. nejra: something we are focusing on this our in the europe session. looking back at asia we see a mixed session, a pullback in japanese equities. of shanghai composite, one the biggest gainers, up 1.3% after the msci is increasing the weight of shares in a global index from next year. a mixed picture in asia. we are focusing on the 10 year yield. some interesting thoughts from ubs. overweight treasuries. the 10 year yield on a 309 handle. we did touch 3.1%. that is quite close to that 2018 high we hit. , near aioned oil, brent four-year high, pushing back. goldman pouring water on calls for $100 oil,

oil at a four-year high. elsewhere we see impacts on ongoing trade tensions with regard to other industrial metals. steel, copper, iron, all looking weaker. we have to talk about what mario draghi had to say about the inflation debate about the great transatlantic divide. to what extent is that going to be closed? matt: let's talk about what is going on with chinese stocks trading down as investors pondered concerns about the outlook for global growth and increasing trade were environments. markets in hong kong, south korea are shut. oil trade is at a four-year high. the euro jumped against the dollar after mario draghi says he sees a strong pickup in inflation. i think that is the only new piece of news we have to really discuss with mark cranfield, joining us from singapore. obviously there is a lot of ongoing things we need to focus on. trade being the biggest one of them. the only really new piece of news we have from markets is mario draghi's boosted concept of inflation. is that coming from oil? >> i am

♪ alix: $100 oil. analysts warn of an oil price spike. total says it could happen. how to play triple digit crude. the golden merger. mark bristow is leading the new company. how other gold makers will compete. how one oil company is trying to change the energy mix in a world where wind and solar gain market shares. ♪ alix: i'm alix steel, welcome to bloomberg "commodities edge," 30 minutes focused on the companies, physical assets and hottestbehind the commodities with the smartest voices in the business. we start with spot on. -- me is john dellanoce and richard melson. the spotlight today, $100 oil. total's ceo says it is a possibility. >> what is happening in the world today, there's a lot of development in the price of oil, in particular a lack of supply. disruption in supply. iran, venezuelan, libya. even on the opec side, they have agreed to increase production, but not so much. i think you have strong support for oil price, the getting with the demand which we find quite high. alix: do you agree about a $100 oil possibility? richard: i think it is absolute

those affect trade flows of oil. we see some impact of sanctions and the cost of steel going up by $100 million in the but for now come in the impacts are not there and the market is anticipating things to but that is where the volatility comes in because no one is sure right now. yvonne: that was the bp ceo bob dudley speaking to alix steel and david westin. rishaad: coming up, the former google china president says some chinese tech is already way .head of u.s. peers we have had thoughts on the tech race. that is on the way. ♪ rishaad: we are back. this is "bloomberg markets: china open." having a look at some stores trending across the bloomberg universe. tictoc has sold the latest news from the united nations general assembly. video feeds of key speeches as well. meanwhile,bscribers, the surprise move by buying sometime there -- bank santander. we have a look at asia's $22 trillion succession problem, business is grappling with handing over the reins to dozens s as they fightr it out. yvonne: technology lies at

president is pushing for lower oil prices but thanks to the fracking technology the united states has become the world's number two all producer and meaning higher prices would also mean higher revenue right now well and oil prices already have been on an elevated basis for quite some time and yes that has led to an increase of production when you're comes to fracking as you mention oil prices here in new york also gaining a good two percent on monday and this year it is pretty likely that the u.s. actually will become the biggest. producer on earth just to give you a rough idea of u.s. oil production about doubled in the pasta decades why output from saudi arabia or russia pretty much remained the same and we also saw that oil companies actually traded quite to the upside here on monday it was all those oil stocks and the losses here on wall street would have been even higher yes go to new york thank you . now here in germany a chance at heads of car makers on sunday to discuss additional measures to avoid large scale diesel vehicle bans in german cities these so-called diesel summit

some oil in washington manila chan r.t. . and there is more good news on the u.s. economic front and this just out today according to the u.s. census bureau on average u.s. household incomes rose last year to sixty one thousand three hundred seventy two dollars that's up one point eight percent when adjusted for inflation time now for a quick break but hang here because when we return we'll look at new data details when investments in financial technologies in the united kingdom with the c.e.o. of straw market were poured which plots it's been more than a year since amazon took over a whole foods has that taken a toll on other natural food retailers archies rachel globus give us the latest as we go to break here are the numbers of its closing bell west texas intermediate oil w t i was trading in new york today above seventy five the barrel and the global benchmark to which manila referred to brant crude oil was trading in london at nearly eighty dollars per barrel i will make those shale guys happy we're back in a flash. my body told me that i belong with the born

and oil prices go up as u.s. president donald trump sends out mixed messages to opec ahead of the blocks next meeting. at least one hundred twenty people confirmed dead in tanzania after a ferry they were traveling in capsized on thursday that death toll is expected to rise as more bodies are found in lake victoria about two hundred fifty others are missing likely toria covers three countries tanzania uganda and kenya the ferry sank between carry away and quarter islands on the lakes south eastern shore catherine so i has the latest from nairobi in neighboring kenya. government official the saying this ferry was carrying more than four hundred people and we have information that the capacity was hundred people two hundred at most and we're not just talking about people who are on board because this was a market day so it was traders who had their goods in there there were view calls there were bags of cement etc and what we're told happened is that as the ferry was going to dock people surged forward this is comm

the gas-to-oil ratio. rising means your well is producing more gas, falling means you are producing more oil. investors like oil. here's the problem. a newborn well produces a lot of crude, but as it grows into an adult, it produces more and more gas. it also changes the predictability of the reservoir. pioneer was hurt from rising gor in 2017, and last quarter, natural gas horizontal production in the permian rose 78%, while oil rose 37%. possible solutions? find a new well to offset the aging ones, drill in the oilier parts of the reservoir, produce parts of the reservoir, produce wells at a slower rate to keep higher oil content for longer. goldman sachs thinks natural gas production growth will outpace that of shale oil. the question is, what can companies do about it? i recently caught up with richard dealey and asked him how he is dealing with rising gor. richard: as you produce oil, we know your gas ratio goes up over time. we have thousands of vertical wells. we have seen the phenomena happen and w

from high oil prices. we have a sliding scale of taxes and if they will price goes up it is the government of that takes this profit this incremental profit but not the companies they get just a very small proportion of the incremental value ok and sat me what i did a country could step up as production is iraq able to do that for example. i think iraq is mired in its own issues a bus full of protests and that's the main oil city in iraq i think trump the reason he puts pressure on saudi arabia is because he wants the saudis to do it it was the saudis to be the ones to flood the market and from his perspective he says look i took iran out of the game i want you go you guys now can take the market share the saudis are not seeing it that way with regards to donald trump i think the oil is there that there is the capacity to fill those two million barrels if opec genuinely do decided to do so however the problem is opec are not necessarily happy with the treatment of iran they're not of the which they do the

>>> oil alert. crude oil continuing its surge higher shell's ceo weighing in on the big move. >>> president trump speaking before the united nations later on this morning. we'll let you know what to expect. >>> a big moment for brexit. a major meeting is about to get under way. we're live in london with the latest >>> a pair of high-level departures at facebook. >>> and starbucks making big changes in an effort to jolt sales. the details ahead on this tuesday, september 25th as "worldwide exchange" begins right now. ♪ >>> good morning welcome from wherever in the world you may be watching. i'm brian sullivan happy birthday to superman and luke skywalker >>> futures are not doing a whole lot right now. maybe we need a market superman. we'll wait and see what goes on with trade, brett kavanaugh, rod rosenstein we're seeing dow futures up a bit, 38 points now the big money moves have been coming in oil. crude oil once again today is higher overseas traded brent, 82 a barrel u.s. traded oil up about 7

opec is talking about boosting oil output. this weekendl meet to discuss the oil market and supply deal. we will have the details. this is bloomberg. ♪ romaine: taking a look at the oil market, it has been on the 3%. up almost brent is also rising back near the $80 level. here with more insight on policy decisions that could affect the oil market, our next guest is from the global energy sector. we have a big meeting with opec this week. with saudi arabia, iran, and russia not in the mix, does this meeting matter much? >> we have to look at the context of the global oil market. we have two big trends. a tight oil market and geopolitical risk galore. you will have a lot of other risk. meeting going ahead through 2018, there is a trend of rising oil prices that opec has to look at. walk us through the interests of the major players. we reported saudi arabia is comfortable with a two dollar brent crude. with $80 brent crude. who wanted to be higher? brenda: if you look at the media on the opec decision, trump's they are fundame

sanctions on iran will fail miserably and iran will not lose a single barrel of oil from its oil exports and that is my reasoning is being asked over five market facts the first fact is that the global the overwhelming majority of the sions with the exception of saudi arabia and possibly. are against the sanctions on iran because iran has not violated the nuclear agreement does second thing as i mentioned and that's the most important one is the petro yuan the petrea one has become a thorn on the side of the united states because it merely pfizer's the day are you a sanctions against iran and provide a third within for it to be paid iran can be good in the pet for you and for any exports it sends to china it can be a pig in the euro for an exports to the european union which account for twenty pattison of iranian exports and it can be paid by baht of penetrated with delights of turkey and india if thing is that china is any a position to nullify the entire you a sanction. by buying the whole. exports of iran two point five million barrels a day and below it pay for them in the pit for yo

i spoke to ceo's to see how oil demand could be affected. >> so far, the demand growth on the oil side has been strong, despite some of that turmoil in china. >> if it falls off significantly it would have an impact on , global demand, no question about that. >> i think demand will maybe not be as strong as the past couple of years, but still solid. >> the trade tension is affecting the e.m. component of demand. >> there is a lot of concern about emerging markets and what is happening there, but the main growth you are seeing, there is a very, very robust economy in the u.s. you are seeing china, india. we think demand will be there. we are watching it but not concerned. ceo. phil is the what do you think? phil: they are trying to sound positive, but we are about to replay the asian debt crisis, except the demand is twice as high. if you look at the key country stats argentina, brazil, turkey, india, it is 9 million barrels a day and that demand will go down. the argentina peso as down 50%. .urkey's lira is down consumption will slow and it will drop. we could lose half a million barre

now, the price of oil. we we re times. now, the price of oil. we were obsessed with it last year, because it was tanking. a real problem for many big economies around the world and companies. now it isa around the world and companies. now it is a 1—way bet. we have had brent crude playing around the $80 a barrel mark. now this article in gulf news, we are looking at $100 a barrel in the new year. the big question as to whether we will see triple digits in oil prices. 0pec has said it will not increase supply because of the sanctions from the us against iran reducing by sobral. the problem with a high oil price is that it problem with a high oil price is thatitis problem with a high oil price is that it is the consumer. when we go to the petrol—bombs everything becomes more expensive in economies like the uk —— hopes the consumer. especially in emerging economies, not all of them are exporting countries. india imports about 80% of its oil. that sucks weighing on global growth, at a time when there isa global growth, at a time when there i

sanctions on iran will fail miserably and iran will not lose a single barrel of oil from its oil exports and that is my reasoning is being asked over five market facts the first fact is that the global the overwhelming majority of the sions with the exception of saudi arabia and possibly. are against the sanctions on iran because iran has not violated the nuclear agreement does second thing as i mentioned and that's the most important one is the petro yuan the petru one has to become a foreign on the side of the united states because it merely fires the by are you a sanctions against iran and provide third with it for iran to be paid iran can be good in defect for us for any exports it sends to china it can be a period in the euro for an exports to the european union which account for twenty percent of iranian exports and it can be paid by baht of penetrated with delights of turkey and india if a good thing is that china is any a position to nullify the entire you a sanction. by buying the whole. exports of iran two point five million barrels a day and below it pay for them in the pit fo

of oil. went up but. it didn't really was enough to do it you know what i'm going to get on with the not going to read that i mean what do you need i mean you're going to be throwing everything you. have in the meeting with it. but it could. but it could. not indonesian families buy into the problems that lead to greater prosperity. millions of chosen to continue with their traditional farming practices these villages in the sim auction provence and jumpy cultivate their land as they have done to hundreds of years. explains the three principles of the family and mostly by the. body they were with us in a way that many muslims from that i wouldn't know much of. when you buy them. and then you could put them out. but we live with the name of one thing and. that i'm not the up with up be able. to go about it by the bible doesn't say. by that i will move there. you know did. you know that. growing palm oil fruit is not sustainable and other crops provide a livelihood for generations. by these. but it did. say

there will also be a lot of oil. the rich gas wells also produce oil. there are also a lot of oil zones that are shallower up the column that we haven't gotten to yet on the testing site. we have proven there is a lot of rich gas. there is also some dry gas. alix: when do you think you will see well results from alpine high? >> we put some out last quarter. we brought on a pad in the blackfoot area, where we drilled 12 would for wells. .- woodford wells one is a half section test. those ones have come on very nicely. we have shown several examples. our program this year is back end loaded. we have about 92 wells we will bring on. a lot of them are the back half of the year. we are constantly bringing on new wells. alix: when do you feel you were will turn from more donation to a full-scale development timeframe? >> that is a process, we are in that optimization period. we did some half-section tests. now we have converted those into full section tests. you see those results. at alpine high, we just did a half section woodford test. we will come back wit

oil prices are higher today after donald trump's demand that opec take rapid action to reduce oil prices got a tepid response. the group said it would boost output only if customers requested it. in contrast to the dramatic u-turns policies tweets provoked earlier this year, saudi arabia and their allies stopped short of promising specific extra volumes of crude. >> we can bring an additional 1 million and a half barrels. we have repeatedly said that. we have brought 100 million starting in june. that is subject to demand. juliette: brett kavanaugh's nomination to the supreme court is at risk after new sexual misconduct allegations emerged. the new yorker magazine reported that senate democrats are investigating an incident that took place during his college years at yale. that comes as the senate judiciary committee prepares to hear testimony from a woman claiming he assaulted her in high school. allegation in the white house issued a statement saying it stands firmly behind his nomination. the u.k. opposition labor party is raising the pressure on theesa may, proposing option of a nati

this from antack oil price angle. we are trying to figure out what the president -- if what the president says today will have any impact on the oil price. we spoke to the bp ceo earlier today. what is going to happen with the iran sanctions? where will it go back on the market? you could see volatility up or down. there's some upward pressure here. volatility is the word from now to the end of the year. guy: let's bring in stuart wallace from london. our executive editor for commodities. the president will talk about iran. will it be anything new here? an incrediblys is jumpy market. right, thetely stockpile levels are dropping, there's some doubt about whether there's enough barrels in the market to compensate for iran. the return of the sanctions will be much tougher than anyone assumed. -- in terms of the actual result, we've seen japan and south korea stop buying iranian oil. chinas questions about buying iranian oil. they are the biggest customers. sending signals to the rest of the world -- it helps us gauge ho