tv Street Signs CNBC December 1, 2014 2:00pm-3:01pm EST
edition of "power lunch." december 1, i can't believe it. >> i can't believe it either. pressure. the dow is trying to turn positive. it is really struggling right now. we are down about 20 points. we'll see whether it can pull it off by the end of the trading session. >> down to my last 10 billion. >> i wish. "street signs" starts now. will the drop in oil prices hurt one of the greatest economic booms in recent american history? that is the question. i am brian sullivan. i am here in north dakota which is really the heart of the bakken shale. we are going to go into the oil story and some of the story lines that maybe we have not talked about yet enough but we will. >> that is exactly why we have sent you out there. don't go licking lamp posts. let's take a look at what is happening in the markets before we get to what is happening with
oil. the dow transports on pace for the worst day in ten months. the companies that transport the oil are getting smacked. the dow and s&p are off the lows. apple dropping in high volume, more on that in "talking numbers." as for the fear gauge, the vix is moving higher today. if it manages to gain 10% or more it will be the first back-to-back double digit gain since mid october. i know when you woke up you tweeted out it was minus 17 or something. i'm sure it has warmed up considerably since then, right? >> no. no it has not. apparently they say with all due respect to our friends in the meteorologist community they say it is 5 but feels like minus whatever it. it is negative 3 and cold but we are here and we are not going to let a little cold weather stop our story telling here in the
bakken. if you see me start to cry it will freeze up. there are four big story lines in the bakken we are going to follow. number one, the bakken is okay. i know the rigs that are operator are going to be fine for now. that last part is the key. i know we have dan yergen coming up. is this becoming an opec version of the shale boom story? it's not just about the oil companies. you got to watch the pipeline operators, the rail companies, all the service providers as oil margins shrink they may get their prices and wages hammered, as well. the fourth one and this may turn out long term to be the biggest one. it is all the debt that is out there. billions and billions of dollars worth of debt much in the high yeld, junk bond market coming from these oil operators. if oil profits continue to fall wait and see what happens with that debt. i'm not going to say it is a
black oil swan but do not forget the debt side of the story. it is big. we'll have to check and see the covenants that the oil companies have as oil prices fall. those are the four big story lines right now. >> we will be following everyone throughout the hour. you know the slide in oil prices is having ripple effects not just here but throughout the world. our next guest is out with a new oped in the "wall street journal" titled the global shakeout from plunging oil. dan yergen joins us from washington. why do you say this is not a war by opec against u.s. shale? >> i think that opec, the gulf countries in opec have a lot else at stake in their relationship with the united states. i don't think it is directly aimed at them. i think what has happened by their saying let the market take care of this they said the high cost oil, the oil with a lot of debt is at risk. i think the other thing really on their minds are their
neighbors, iran, shiite controlled areas. we are not going to sit back and let others take our market share. >> is the big loser in all of this potentially canada? i know we are here in the bakken and there is damage done in the permian basins of texas. when i look at the producers in fort mcmurray, canada their cost of production may be higher than it is here. could canada be the ultimate loser in all of this? >> canada could be certainly one of the losers. as you pointed out, brian, that the bakken, the eagle, parts of the permian they are going to continue. high cost oil, new facilities in canada are at risk. you know when we looked at our numbers we see this year this coming year 2015 canadian oil
production going up by about 300,000 barrels a day because of an investment made. the impact here is really on future investment. >> we certainly made the point with the big surge we have seen in u.s. oil production has kind of taken opec and a number of countries around the world by surprise and hurting a number of opec countries, too, particularly hawks like venezuela. how much pain can they take? how much further can this go before even opec says enough is enough? >> i think around the world there is the tendency in opec and europe and the surge in u.s. oil production was just a bubble. it is not a bubble. it is a whole new thing redefining the global oil market. the country that is probably as much vulnerable as any is venezuela. a lot of social unrest, gross economic mismanagement. they are going to clamor loudly because they were once an oil
powerhouse and now are really a victim of their own mistakes plus declining oil prices. >> dan, is this region in some ways a victim of its own success? i want to bring up statistics which are hard to believe. i want to double check them from the state of north dakota. ten years ago this area produced a mesely 1,500 barrels of oil a day. it is more than 1.1 million. there are 180 or so operating rigs. there are now 8,500. do we have the demand capacity to meet all of that increased production long term? >> i think that if we look at 2015 we see that demand is going to be a good deal lower than the new production coming on. brian, you're in a land of miracles. north dakota was like ninth or tenth largest oil producing in the country and now it is number two after texas. it happened so fast that the market was in a sense taken by surprise by it.
>> to what degree were some companies operating in places like where brian is right now, dan, have to either cut or postpone or completely change their plans? i know it takes a while. they don't want to rush into anything and want to leave until it is possibly too late but to what degree will they have to change investment plans because of this? >> i think monday morning every company is looking and saying what can we slow down and cut? what can we postpone? there is a lot of momentum in the system. i think you don't really see the big impact of it in terms of output until the second half of the year. i think the knives are already out. >> a real pleasure to have you on our show. thank you. >> i wanted to add to what dan was saying. the question is this. it's already the budgets for next year have been set. people we have talked to here is that the wells people will do
next year should still be done even if they are uneconomic because the capital been put into play. i question that. a lot of oil companies can be very nimble when they need to be. if they see oil prices going lower for a while one wonders if they will go through with all of the plans and one wonders if they will have the capital to do it especially with some of the debt issues we talked about. >> i understand you have a mystery man who you are going to bring up shortly, as well? >> it's a good trivia question and i will ask it to our audience, they can tweet you or me although i can't feel my fingers and use the twitter right now. who is the most famous resident born and raised here of williston, north dakota. he is really tall. >> you think he's tall so he must be really tall. >> he's taller than i am. >> okay. we'll think about it.
we don't have a mystery chart, today a mystery man. lots of big companies. investors use oil as collateral on their debt. what is the oil price drop going to do to the bond market and how can you play this energy in your stock portfolio? we will be looking at that, the money behind crude coming up next. (vo) watching. waiting. for that moment, where right place meets right time.
in willston, south dakota. they don't want to see prices fall too far because of the production costs that we just talked about. oil's last trade at $68.65 a barrel. the question i'm getting a lot is that what has changed since our last visit here last year? obviously, the price of oil has changed. it has come down dramatically. we wanted to ask real producers what are you seeing, thinking, feeling right now. yesterday we flew in tom powers. he runs his own energy firm. he is an independent operator here and also in texas. i began by asking him, are you worried what has changed for him. this is rather interesting. listen. >> there is still a lot to do here. the plans are being made for this year. i don't see a slow down.
there is a lot of infrastructure to put in place and a lot of wells that will be drilled. people are cautious but they're not too concerned. >> so too concerned yet. i think that last word is the ski focus here. i pushed back a little bit and said how long will the prices have to go on before you are a little more concerned and maybe we are going to see a slow down. here is how he answered. >> it would take in excess of six months or a year and probably longer than that. the wells that we have here, we have a lot of work to do on the wells that have been drilled. there is a lot of jobs and things that have to happen even if the price drops. the wells that have been drilled will not be shut in. >> so there you go. six months. there is really two different stories inside the oil production story. there is the current rigs, oils
that are operating. their costs of operation are well down. then you have new wells. the new wells are important because that is what provides the growth. all of the people moving here with their families they are here for the growth. they need new rigs to go up because that provides new jobs. the status quo may not be good enough for williston. >> speaking of producers. let's take a look at bakken names some of the people you have been speaking to. this is their performance last month alone. oasis petroleum down. whiting down 32%. last but certainly not least continental resources down 27%. eric otto joins us now. what point do these companies become a screaming buy.
>> we think this will continue for a period of quarters. while we are constructive on the group within selective pockets i think it will take a few more quarters to sort itself out. >> i want to say thanks for working over the weekend providing me a lot of research on the way up here. thank you for working on a saturday and a sunday. i appreciate that. of the names that mandy rattled off, are there any in more trouble than others especially because of the debt loads they may have taken on over the last year or two? >> absolutely. back on november 4 we downgraded to under perform. we saw the likelihood of period of lower oil prices continuing and saw the high leverage. debt turns very, very high at 2.1 x. they continue to way outspend. in our mind laredo jumped up as
one to be cautious about. on november 6 we downgraded continental resources to a sell. it netted them about $433 million. they believe by doing so that they would participate in oil price recovery. we thought this was a wrong headed move. it changed the risk profile of the company from one that is creating value from the drill bit to one that is speculating on commodity prices. we also just didn't see a near term rebound. that was a difference compared to the company. those were the two. laredo we had as under perform and continental as a sell. >> you mentioned just those two. in general if it is possible to generalize because every single stock is slightly different but if you think this is a multi quarter process as opposed to a multi month process how much do you think the sector will fall over the multi quarter
timeframe? >> there are haves and have nots within the group. one of our buys is barely outspending its cash flow, has a very strong balance sheet and 50% of production coming from gas. within each name there is a differentiator. our view on this is that macro trumps microand then certainly the higher levered names in there. there is really a difference among these names and there is no one generalization you can make about the sector. there is a difference. >> eric, will macro eat micro? do you see a wave of consolidation coming? do you think some of the smaller players are going to get eaten up by bigger players here? >> there could be. we don't see a big wave of consolidation. we think it will take a number of quarters. for a company that may have a fair amount of leverage on the
books we think it is imprudent to go out and buy a smaller company when the future is uncertain. we think it is better to sit on your dry powder and use that to get through a period of lower oil prices and it is probably not the most prudent thing to do. >> certainly something to watch. thank you very much for joining us with that conversation. >> appreciate it. >> brian, i also have someone sitting here with me, certainly not a mystery person. it is kate kelly. you have been looking at how oil drop can turn into a major problem for an industry especially dependent on credit to keep the drills running. give us the low down on what potentially could be in store. >> a quick look at prices first. big rally in domestic crude today after the worst one day in five years. traders telling me they see this as a relief rally as people covered the shorts they had on in anticipation of the the opec
meeting amid word there would be no production cut. even if oil closes considerably higher today as it seems poised to do the speculative community is betting on worse times to come by and large amid consensus it will take more to cut production and cheaper oil could create a whole world of change. according to a recent study by deutsche bank $60 oil could push the whole sector into distress possibly leading to the default of nearly a third of drillers with lower credit ratings on their debt. this theory could soon be put to the test if we have another down day or two. >> reporter: that's pretty dramatic data. i knew the debt load was bad. i didn't realize it was so bad. one prudent thing to do would be to look at the credit ratings of the oil companies who are borrowing big time to build out new rigs here.
you have to look at credit ratings and see how much debt they have on the books. i know ocasus about 47% debt to asset ratio. and continental resources which robert frank talked about in the previous hour, they did something a lot of analysts said was dumb lately. they monetized their hedges for the next three years. they levered them up. this is becoming a debt and not just oil story. >> i think the pile on is appropriate. they made a very bold move. so far it is not looking good. i was on that investor call with harold hamm. he called a bottom in wti crude and took the hedges off. one thing they might be doing with those is using the cash to help fund drilling activity as we get into the first quarter. the first and second quarter going to be critical for these companies and just going back to the point about the potential 30% default rate that is an
astonishing set of data. that came from a stress test on the high yield sector with the rate of default. in the investment grade sector we could see real pain if prices continue to be lower. headlines today are talking about $40 in the not too distant future. >> sorry to jump in here it is not just an oil story if that happens. if we see defaults in oil producers that will impact the markets for every company regardless of what your industry is. >> that could impact gdp. cheap oil can be good for the consumer in the retail season but there will be broad economic effects. we just got an oversupply problem here and globally that we all have to contend with. >> a very sharp double edged sword. we love to keep you standing there for the whole show. i'm a little worried that maybe your extremities might drop off and you come back with three fingers. go get warm for a second. get a cup of coffee and come
back up again. the biggest bright spot in the oil collapse we are hitting the gas pumps. also, what about gold and silver? november was a cruel month for those precious metals but they are doing quite well today. we will show you how they are headed in december now that we are on the first of the month.
if you were one of the 41 million people who hit the roads this weekend, pump prices are down. aaa says the average price for a gallon of regular gasoline is at $2.76 down from $3.27 that we were paying this time last year. pump prices have now fallen for 67 consecutive days. well, these low pump prices are having a big impact on the auto industry, as well. let's bring in phil lebeau. low oil prices wouldn't drive people to buy a new car if you weren't in the market to buy one but if you were looking to buy a car maybe it would have an impact on the type of car that you would buy? >> yes. and we are already seeing that
because of the demand for suvs and crossovers and less demand for small vehicles. small vehicles down 10% to 11%. you talked about lower gas prices. right now we are at $2.76 a gallon. when you look at what we are expecting over the next couple of months people are saying it could go lower. in fact, when you look at the full lower 48 states, 42 states have gas at below $3 a gallon and some states especially in the midwest and south that could be approaching almost $2 a gallon or less than $2 a gallon by christmas. all of this has people saying what about electric vehicle sales? cheap gas there is some impact there but not a huge one. year to date sales are ut29%. the global demand for electric vehicles will continue to increase because of restrictions
when it comes to emissions. everybody looks at lower gas and says that will kill the electric vehicle. shares of tesla under pressure because people are looking at not only lower gas prices but bmw saying it is not buying a stake in tesla. when it comes to tesla remember this is a luxury vehicle right now. yes it is an electric vehicle but it is a luxury vehicle. that is where the sales are. >> as you can see there it is down by 5.6% but kind of in a class of its own. thank you very much, phil lebeau. in today's hard money gold is rebounding parked by the vote not to boost central bank gold reserves. the precious metal safe for a third month in a row and gold is seen as an inflation hedge. silver moving off its lowest in five years up today by just over 6%. it is still down about 15% year
to date. now, if you hold apple stock we hope you are sitting down when the market opened today. we will take a closer look at why shares really fell out of bed this morning. later on we are heading back to the bakken. brian hopefully is warmed up and has his wooley hat and gloves on. he has been talking with local non-oil business owners there in the bakken and asks if they are worried about the falling energy prices? do stay with us. e
time for something we do every day at this time. it is street talk hitting analyst calls on stocks you need to know about today. you are probably wondering why we have dom it's because brian is in south dakota. he has a lot of things on his plate. >> he is freezing his butt off. >> let's look at group on getting an upgrade today but maybe not doing so much for the stock. >> they cite the large and growing customer base.
the target has been increased to $9.50 from $8. not doing a huge amount but the stock is kind of flat. >> that's where you get the discounts without having to buy the coupons. it is interesting topic there. next up is monster beverage. those shares down about half a percent today. >> cut to outperform from top pick. basically giving a strong share performance. price target is $121. that is the base case. they say they still see bull case of $160. with a little more info on coca-cola's global brandship plan and want to know more there. >> energy drinks always a controversial topic these days due to the health aspects. are there health concerns? we don't know. >> my kids say can you try that and i say absolutely not. >> upgrade this one for
navistar. >> u.s. dealer checks indicate strong third quarter and target $34. >> some people look towards transportation stocks as leading indicator of overall economy. this is a leader indicator for the leading indicator. >> that's a good way of looking at it. >> one more here that is getting a big smack down is big lots getting a downgrade today. >> this is the close out retailer cut from overweight to neutral. they say the positive initiatives and developments are now in place. the price tag lowered to $51 from $53. it's at $47.50. >> up about 25% just since over the course of the past year. maybe it is just priced into the stock at this point. here is the one you guys always talk about, the under the radar. this one here is fmsa holdings, an ohio based company that deals
in the oil and gas business. >> did you know about them? >> i remember the ipo. it is a smaller company but did ipo recently. >> just recently. only a couple of months ago in october. it is a fracking producer. analysts say the company is well positioned to meet demand for track sand used in the hydraulic fracturing aka fracking. >> that's a good one. i like it. let's talk about something a little scary. apple shares plunged as much as 6% in early trade before quickly recovering losses. simple question is why? let's talk numbers with todd gordon on the technicals and alex on the fundamentals. let's start with you. there was the news that morgan stanley is trimming the position in apple by 1% and recommending clients trim their position, as well. how much was that to blame? >> well, sure, i guess apple had
a bit of a cyber monday sale of its own and it was a wonderful opportunity for investors to step in. in this point in the year with stock up it could be natural for some people to want to take profits in this sort of environment and maybe looking at a crowded holiday electronics retail channel. sales are going very well for apple right now both on the iphone front and on the ipod front. we recommend being buyers here. >> that is the fundamental case. the chart is also one of them. this blip we saw today could just be a blip. this is a chart that like we just said is up 45% so far year to date. there is nothing upside here. do the charts stay that way? >> absolutely. you hit the nail on the head. it is just a blip. it is a perfectly normal technical pullback. let's look at where apple has been. leading up into the iphone 6
release we were testing the 101 level back at the high from 2012. iphone 6 came out and consolidated for a while and pushed through. if we move to the daily chart we can see over the last two years apple has been following this nice upward trend channel along with the strong performance. we are technically overbought. at some point there is no more natural buyers left in the stock, greed sets in and we have to reset. apple has pulled back similarly to the s&p. there is a high degree of correlation. so this pullback is quite normal. what we are looking at is a pullback towards around that iphone 6 breakout around 106. that was the point we can look for buyers to come in. stocks would be around the channel support, that lower channel about $95. so as the s&p pulls back which would be around 2020 it's that
same breakout in the s&p. look to match the two up for a long side trade. >> thank you very much for joining us. nothing goes in the straight line. last week it hit the market cap for the first time ever. >> big stock, big company. >> be sure to check out the online edition of "talking numbers" in partnership with yahoo finance, as well. vladimir putin may be sweating bullets today. opec's game of chicken could hurt russia. we will get the numbers and go back to brian live in north dakota. stay with us. [ male announcer ] your love for trading never stops. so open an account with schwab. and when a market move affects, say, a cloud computing stock you're holding, we can help you decide what to do. with tools that help you see how market activity is affecting your positions. so when the time comes to decide whether to scale in or scale out... you can make your move, wherever you are. and start working on your next big idea.
♪ and start working on your next big idea. ♪ my baby drove up in a brand new cadillac ♪ ♪ my baby drove up in a brand new cadillac ♪ ♪ look here, daddy, i'm never coming back ♪ discover the new spirit of cadillac and the best offers of the season. lease this 2015 standard collection cts for around $439 a month.
oil has been falling steadily for the last couple of weeks. one of the major economic stories in america but not today. oil just closing up 4%, one of the best single days in more than two years of trading. the folks here in williston, north dakota probably a little happy to hear that. what is interesting about this area, there is a lot of interesting things about the area, one of them is that it is truly an american story, an
american success story but also a little adversial in the way we would like oil as cheap as possible. here they want things to be comfortable but they don't want to see the price of oil go too far. in some ways it is a little push/pull with how many americans probably think about oil and the economy. >> there is no such thing as a free lunch. when you think of the people who moved to the bakken and other places around america for the energy boom may have left families back a long way away. it is a painful thing to have to watch but a bit of respite after hitting the fiechb-year lows. not just here in the united states but around the world countries are sweating as the price of oil gets close to break even level. let's bring in michelle caruso-cabrera. >> i am going to show you two sets of break even numbers. the first is break even on wells. when you extract oil from the
ground in different parts of the world there are different prices. let's show you north america. brian is in bakken in north dakota. the wells there somewhere between 40 and 80, $70 per barrel is what you need price of oil to be at for the wells to be profitable. canada is $50 to $100. let's show you the rest of the world. brazil where there is deep water they need $70 plus oil to be profitable. look at saudi arabia. $10 per barrel is what they can do when it comes to how profitable each well is. this is a very different number than the break even for budgets. they have all of this oil coming out of the ground. they love to spend the money that comes from it. saudi arabia in order to balance the federal budget needs oil at $99. russia $100. nigeria $126, venezuela $162,
numbers according to deutsche bank. >> when you look at some of the numbers -- michelle stay right there i want to bring in another voice. it almost feels like strategy of letting the price go is potentially mutual destruction. >> if saudi arabia lets this price go to $75 for three years their reserves will be gone. people talk about the saudi reserves. those will be drawn down substantially in this price environment. >> she is not talking about oil reserves, cold hard cash that sits in your central bank ready to go in case you need it. they have it. it is a cookie jar but you are going to burn through it. >> you don't want to burn through it when you have so much instability in the region and giving so much key aid to your allies and your people. >> brian, come in here. >> this is really the paradox which is on one hand maybe we
like to punish russia and vladimir putin for what they have done in ukraine and we can do that by quietly bring the price of oil down because we want to hurt the russian economy. on the other hand by doing that and going after russia we are also going after north dakota and midland, texas. >> it's not a pain free trade. you run the risk of instability in certain countries. we may have to deal with that. what if you have problems in nig nigeria? it gets worse in this price environment. they have burned through. they are going into elections. do we want to be dealing with global instability in producing countries? >> how does it end and when? >> i don't think they can do this for years. i think it is a strategy for months. if we do not get a market production i think they pull barrels. >> there is an idea that the world is producing 90 million barrels per day.
somebody grows or production falls enough and we are back into equilibrium. >> if libya falls off again we get back to equilibrium. >> your number on $10 on saudi arabia that is not a true number. that is their cost of physical extraction. let's not forget saudi arabia basically pays its people. if you live in saudi arabia you get paid. the social programs are very generous. i have heard $90 a barrel is actually -- >> you are talking about the budget break even for sure. we just showed that. >> i'm sorry. i don't have the graphic. it's not a pain free trade for them either. >> they don't want their citizens in the streets. that was the post arab spring bargain. don't demand a lot of political change we will take care of you from cradle to grave. >> thank you for setting it all
up for us. brian, you know, the show is almost over but we can't let you go before you get into the mystery man. who is this guy? the tall one you were talking about. >> we have a lot of smart viewers and i put some of the hand warmers in my shoes, checked the twitter machine and guess what, a lot of people got it. i'm not going to give it away. the most famous resident, we did something a little different. had a nice dinner group with a group of business people, not oil people, people doing other things around here to get their take on the economy and what they think on oil prices and our mystery man was the coach of one of these kids when he was a kid in his youth sports league. there is another hint. new jersey to north dakota we got you covered. we are freezing it back after this.
crestor is not for people with liver disease, or women who are nursing, pregnant, or may become pregnant. tell your doctor all medicines you take. call your doctor if you have muscle pain or weakness, feel unusually tired, have loss of appetite, upper belly pain, dark urine, or yellowing of skin or eyes. these could be signs of serious side effects. i'm down with crestor! make your move. ask your doctor about crestor.
especially for the consumer. let me start with you. net positive or net negative for the markets? >> i think it will be net positive in the net negative in long-term, mandy. the positive is something that you've mentioned. good for the consumer, ability to spend more. the negatives are what you have discussed all morning long on cnbc today. brian talked about the impact on high yield bonds. michelle talked about the countries and the high prices are necessary for social programs, budget balancing. those are going to be affected so the negative effects are going to be more lingering when the short-term positives are gone. >> do you agree, john? >> i'd have to say the negative effects will be rather short lived and a change in technology, a change in efficiencies of the use of oil, finding oil, producing it,
productivit productivity. it is disruptive but in the longer term it should be advantageous for global growth and we'd expect not only for the consumer but industry, as well. in terms of dropping input costs wherever oil is used. >> that's an excellent point and makes me wonder what the implications are for fed potential. do you think you could extrapolate lower inflation and fed on hold for longer or do you think maybe because we got lower oil prices for better growth and the fed have to hike earlier? >> i'm saying on your program that i don't expect any rate hike in 2015 at all. only 2016 at the earliest. lower oil prices, lower commodity prices makes this even more of the case. you had bill dudley head of the new york fed earlier today say he thinks rates go up by the middle of next year.
i don't see how that can happen. the dollar will be stronger and during a strong dollar environment and with an impact on negative impact on economic growth, i can't see the fed raising so the impact is going to be an even further delay in fed action than what we anticipated so once again expect the 10-year treasury we saw go below 2% below the 186 of october 15th and there is no hike in interest rates before the first or second quarter of 2016 at the earliest. >> john what do you think about that for a time frame for a hike? >> i think what we're experiencing now just a near-term reaction. i think what we're going to see here is actually the fact that the strength of the dollar will be mitigated on its negative impact for global growth and cheaper oil with a more expensive dollar is a heck of a
lot better than more expensive oil with a strong dollar. thinking that way, i think we are going do get economic growth abroad. beginning to come back and second half of 2015. we'll keep growing along as a modest pace. low inflation. low interest rates. modest wage gains and should be good for global recovery. >> mandy, one argues against john's point is that the few countries critically affected. we talked about what happens to venezuela because the country is already fairly close to social turmoil. look at russia that probably priors 130 to $150 a barrel in order to deal with the situation when foreign credit is cut off. so you can't just look at the cost of producing oil. you have to look at the negatives and the negative to venezuela, negative to russia, negative to saudi arabia is very bad -- >> we have to go because we have
to get back out to the -- in a minute. john you have the s&p 2311 as a target for the year end of the 2015. thank you so much for joining us. >> thank you. >> thank you. we have one more visit back out to the frigid north dakota balkan area. brian sat down with business leaders and he's going to -- we'll hear from the real people affected by this oil slide. that's coming up next. act i. scene 3. open port twenty-two-oh-one-seven on the firewall for customer db access. install version two-point-three of db connector and ensure verbose flag is set in case of problems. (clapping sound) isn't the cloud supposed to make business easier? get the one that can connect to the systems that you already have. today there's a new way to work. and it's made with ibm.
i'i like to think of myself as more of a control... enthusiast. mmm, a perfect 177-degrees. and that's why this road warrior rents from national. i can bypass the counter and go straight to my car. and i don't have to talk to any humans, unless i want to. and i don't. and national lets me choose any car in the aisle. control. it's so, what's the word?... sexy. go national. go like a pro.
i thought it would be good to come back to the williston brewing company and to figure out how they feel about the economy, given the price and drop in the price of oil. are they worried, concerned? not concerned at snaul let's find out. dan, you have come the furthest from england with a property development company. did you come here just for this boom? >> absolutely. i mean, when it crashed, we looked to the markets. uk, you couldn't do anything in the uk. we looked at portugal, spain, everywhere in europe and it wasn't possible. and we heard about another company out here in williston, north dakota. we came out. we looked, we saw and bedecided this is somewhere we could operate. in the space of two years, i think i've built 1,400 rooms across two or three camps. at the minute i have seven or eight hotels planned.
>> are you still going to do the hotels even with the recent drop in oil prices? >> absolutely. i have not seen that affect us. >> there's always a fluctuation in price. opec does control it but -- >> do you feel like they're out to get you in a way? >> no. i would hope not. you know? i love the united states and williston, north dakota. we're proud here. you know? i think it's been a blessing what goes on here in the bakken. i think we are a force and i think i don't see that it's really going to end any time soon. >> for those of us not in the oil drilling business, if you run a lodge or other property holding, do you watch it? yes or no? every day? >> no. >> no. >> dustin? >> no. >> all we know is business is up from last year. gas prices are down. we are good. we're not scared. >> like you and the other company, i mean, most companies
are also looking at that kind of stuff to make their decisions. they look at market supply and demand and adjust for. >> you're concerned about the price of steak than oil right now. fair statement? >> probably. >> fair statement? >> fair statement. >> we love our steak in north dakota. >> apparently, guys, right now you can see it. we have talked to a lot of different people and industries. nobody's that worried about it yet. maybe come back in a couple of months and check it back out again. mandy, wrap it up on a positive note. confidence here in a big shout-out to the people here. they have treated us great and working hard. a lot of them left friends or family or countries to risk it all to come here. and i'm going to, you know, opine a little bit. they're busting their butts and i'm rootding for them. >> i am, as well. i certainly hope that things turn up for them. it's a very hard life there and you found one of the very few females there. doing a roundtable of business
owners, one female, what's the ratio of female to men out there? >> yeah. they're running a successful coffee business of boomtown babes. you get the gist. by the way, mystery man is phil jackson. legendary chicago bulls coach and now general manager of the sad sack new york neknicks. >> all right. keep warm. see you tomorrow. >> all right. take care. >> thank you for watching. "closing bell" starts right now. and welcome to "the closing bell" on this monday. i'm kelly evans at the new york stock exchange. >> i'm bill griffith. what a day this is in many regards. a bumpy day for the equity markets. is that because it was a shopping start to the holiday subpoenaing season