Transcripts For CNBC Mad Money 20140311

Louisiana not to celebrate the finale of true detectives last night, but to plum offshore for some terrific ideas. Were here to celebrate American Ingenuity and american knowhow. And can i also point out were down here to find out the true meaning of the word booyah. Because you know what originates in this region . The paradise. The literal translation is thanks for making me a boat loat of money. Were hear from the louisiana governor, ways to harness our nations natural gas, the president and ceo of new corp. Theres a couple of the materials needed to the make the finest steel ever needed. Well hear from jim brown, the halliburton ceo of the western hemisphere. T which brings us to where we are right now, on top of one of the most mature fields in the gulf of mexico where energy is drawing on an old Shallow Water field to reinvigorate what was once thought to be a dying process. Ht we want to show you why we think the american oil w and gas revolution is a key longterm theme that you can fall back on anytime the market goes hay ware. Or the usual slowdown in china. You see,a. We believe the rediscovery of older fields and the exploration of shales and we visit the utica in ohio will continue to pay dividends for those who have the patience to see it through. We can see how new core has a better advantage over iron and other domestic companies. Even as its biggest earnings driver has not yet snapped back in thisac country. Youre being paid well. Get away with that better than you can get from treasuries. Ri and we recognize it even though china appears to be sloan down again, as you can see from their export nkts this weekend. There is still a worldwide search for oil. Why is it so high . I cant say this is a level to start buying insco. Meanwhile, halliburton is playing a big role to make sure fields like theseak are coming back to life. It knows drilling on wall street as the company has brought back 7 of its shares on the open market last year. S energy 21, which takes older fields and exploits them as recently bought back its shares. It is a model to buy oil fields and rejuvenating them as he acquires more left for dead properties. As we look around the gulf, i bet there are a continue of fields he can snap up on the cheap drilling more oil out of their dome than anyone thought possible even a few years ago. Opportunity is knocking down here and knocking loudly and mad money is answering the call. Thats why weve come down to louisiana to flesh out one of the best investing themes of our time, the north American Oil Renaissance and the companies that aree profiting from it. Enjoy the show. Its ash great one. Mad money will be right back with more from the bayou. Announcer coming up, the revolution is here. Big oil and is getting bigger. American energy is transforming our economy, and its no longer just the big names you biknow. This rig was left behind by exxon, but tonight, cramer is getting a look at how it was transformed for shareholders. [ male announcer ] how could switchgrass in argentina, change engineering in dubai, aluminum production in south africa, and the Aerospace Industry in the u. S. . At t. Rowe price, we understand the connections of a complex, global economy. Its just one reason over 75 of our mutual funds beat their 10year lipper average. T. Rowe price. Invest with confidence. Request a prospectus or summary prospectus with investment information, risks, fees and expenses to read and consider carefully before investing. With investment information, risks, fees and expenses so our business can be on at ts network for 175 a month . Yup. All 5 of you for 175. Our clients need a lot of attention. Theres unlimited talk and text. Were working deals all day. You get 10 gigabytes of data to share. What about expansion potential . Add a line, anytime, for 15 a month. Low dues, great terms. Lets close new at t mobile share value plans our best value plans ever for business. Booyah welcome back to the gulf of mexico. Were on the ensco 99 oil rig off the coast of grand aisle, louisiana, but were taking a closer look at one of the epicenters north American Energy revolution. This rig is run by energy xxi, or exxi a home gamer name. It runs seven of the 11 oil fields in the gulf and is always on the lookout to buy new Properties Like this one. An oil field left for dead by exxon is making big profits for energy xxi shareholders so lets look with john schiller, founder, chairman and ceo of energy xxi limited. Thanks for inviting us to your rig and welcome to mad money. Glad to be here. This is an old field, old exxon field, but you come here with new technology and you have been using the phrase to me youre just scratching the surface. Thats right, jim. Were sitting at west delta 30 which is the secondlargest oil field on the gulf of mexico shelf, made 580 Million Barrels of oil and theres been two wells drilled in the field in the last nine years and weve got a rig right here getting ready to drill our first well, a lot more oil. Exxon, presumably, big company, wouldnt just sell something unless they felt it wasnt of great value. But its not that its not a great value to them, big company, but it can be of great value to you. Thats a correct statement. Its what i call the 20 barrel. Well make a lot of money finding barrels at 20 a barrel. Exxon needs to be finding 10 a barrel, thats the game they play so they can never get capital here. They knew there was oil left but it wasnt economical in their big machine to capture capital from it. Youve been drilling in two places right here but also on wall street. You have been one of the most aggressive buyers of your own stock. Is that because you believe that there is such a differential between what youre bringing out and what you can get that its too good an opportunity for shareholders not to take advantage of . Exactly. Weve had an opportunity with price dips to step in and buy. We bought back an average price around 25, 24 a share and were finding oil for cheaper than what were selling for right now. Were looking at a rig, its very costly. We know to run it everyday costs a lot of money. How are you able to make money given the cost of what you have to pay ensco and all your crew . Because think of about it, everythings got to go right. Yeah, we have a high success rate on development wells. 95 . That helps but were paying that rig about 125, you add another 125 125,000. Yeah, so 250,000 a day total is what were spending on that rig. How much does it cost you just to talk to me . Well, lets see how long we talk. But, you know, our typical well costs between 10 and 12 million to get drilled and well bring on the low side 600,000 barrels and high side 1. 5 Million Barrels. How many more properties are left that you bought and what could be the proof reserve to what you have going . Were on the cutting edge. We have 180 barrels crude reserves. When you look at 3p its almost 300 barrels. Were going to move that oil into the crude category over time. Meaning its likely its down there . Yes, remember, it has to be in a reservoir thats already been penetrated and proven productive so more importantly with a new seismic, this field is on a chute that will be done by fairfield over the next 12 to 18 months, it will give us better data and theyre producing horizons here from 3,000 feet to 18,000 feet. Thats a lot of plays, not to mention we think we have prospects down to 24,000 at the base. One of the things thats happened clearly and i know youve been maybe able to harness it better than most. The technology, even since you bought these fields that wasnt that long ago seems to have been moving in a revolutionary pace. Not evolutionary pace. It must help you find oil where you didnt think there would be oil. Advances across the board. You talked about it yesterday with jim brown. Seismic reprocessing speeds, new acquisition methods, the abilities to do with what were doing with horizontal which is was invented here. The geosteering tools that weretodo the things that were invented in the gulf of mexico. Its so dam expensive out here that if you save a man hour or two i can justify the higher cost for the development of the new product. So horizontal drilling, the way we complete them, the way we gas lift today and all of those things lead to higher recoveries than anything weve seen before. How much oil do you expect per day from just when this is completed . We get off this platform and were going to drill several wells here were looking to get anywhere up from 5,000 to 10,000 barrels from Incremental Oil when we leave here. What do you think it was before you came down here when exxon pretty much gave it up. So this field, take west delta 73, the sister field. It was 2,000 barrels a day. Now were making 7,000 barrels a day. This field is running around 3,500 to 4,000. I think well get it up over 10,000 easily. We have a lot of opportunities identified here. And youre 13 miles offshore but you have all the pipe already in place, right . Yeah, were sitting on top of a big salt dome. This whole field is surrounded by platforms and pipelines weve already put in. We process right here, put in the our pipeline to grand isle and then we separate oil and water and gas back on shore. So were looking wells up. Yesterday we finished completing a well just yesterday, right here . It will be flowing making money tomorrow morning. Ive got to tell you, you tell a great story, john. I know stock has been depressed bud if you didnt think it was a great value youd be selling the stock not buying and youre probably one of the most aggressive buyers ive ever seen of any stock you come across. Thank you much for that. Thats john schiller, founder, chairman, ceo of energy xxi limited. Thanks. Can you show us around the rig . Yeah, lets go look at the rig. Energy xxi platform . And this was at one point exxons . This was at one point exxons. So you had this . Yes, and down below us are the producing wells. This is it . This is it. How is the difference between speed . They. Theres going to be some slower. But you cant be concerned about whether you do it by the end of march. I mean, its not a business that lends itself to what you can do for that quarter. You do whats right for the business for whatever time. Were going to maximize the efficiency around our drilling with this rig so we want to get a well down every 45 days. Thats the game plan. If we have two of them drills and completed in a quarter, great. Most likely its going to overlap a quarter. Youre just not looking at your business quartertoquarter, youre looking year by year at least. You should understand that the north American Energy revolution is about more than just more money for companies that produce oil and natural gas. The fact is, our plentiful supplies of natural gas are making the United States a much better place to do business for all sorts of industrial companies. Thats one of the reasons why nucor, the big steel company, built their new destruct reduce iron facility down here in louisiana. Yesterday i got to check in with john ferriola, the chairman and ceo of nucor, take a look. John, what does this plant behind us do and why did you build it here . It produces d. R. I. , direct reduced iron, a pure form of iron units that allows us to reduce our costs and produce a higherquality product. At tend it makes us more competitive, particularly against imported steel, steel that has to be produced in other countries that have Higher Energy costs. Is that because this is the headquarters for using natural gas and the game changer of natural gas for america . Certainly we consume a lot of natural gas in the dri process. And youre right, the natural gas revolution occurring in the United States it is truly a game changer for manufacturing, particularly Manufacturing Industries that are Energy Intensive like steel, like dri production. You know, jim, when you think about the tremendous increase thats occurred in natural gas production, its dramatically change the Energy Landscape on a global basis and its made america a lot more competitive to be able to invest in manufacturing. But lets talk about what it was like before the game change and after. Where would you be getting steel thats always been where would you be getting your raw costs and somehow this lowering your cost . Well, dri lowers our cost in a couple ways. First of all, the dri pellet itself is a high quality form of iron unit so its high quality. Its more intense and the shape of the dri pellet allows us to put in the the furnace in a way that actually reduces our Energy Consumption in the furnace while at the same time increasing the productivity of the furnace. So when were making steel in our electric furnaces we have lower energy costs, higher productivity that makes us more competitive, particularly on an international basis. Now when you speak about international basis, there are companies and countries that we believe and i know you feel very strongly dump their steel here. Dont you have to be both Higher Quality than the dumped steel and also come in lower priced in order to win . Absolutely. And the dri process you see behind me, the plant behind us, supports both of those initiatives. It makes us more competitive by lowering our cost structure, as i mentioned, and were competing against imported steel thats produced in countries where the energy costs are two to three times higher. So lets talk a little bit about the quality, because youre right, we have to be lower cost, more competitive, and we have to have a Higher Quality product that we offer to the marketplace. Dri being a more pure form of iron unit, its a Higher Quality raw material. In a furnace, when you put a Higher Quality raw material in, you get a Higher Quality product out. And that helps us in several ways number one, a higherquality product gets a premium price in the marketplace. Number two, it tends to go into more valueadded industries that have higher demand and more stable demand. Examples would be automotive. Examples would be energy in general. So having a lower cost basis, having a higherquality product helps us competitively domestically and also internationally. At one point you had actually literally been here in america when the natural gas all our costs were higher and then you shipped the whole plant to trinidad. How does this compare to your trinidad plant . Well, its larger for one factor. It produces about 2. 5 million tons of dri. Our plant in trinidad produces about two million tons. The quality produced here in such a short weve been operating about two months and in that short period the team has done such an outstanding job, as i mentioned, first of all, its the largest plant in the world. Being the largest plant in the world, it created unique challenges for our team both in production and in startup. Our team has met those challenges, theyve overcome those challenges. In just two short months we brought this plant up to a level where were operating at 95 capacity and the quality of the dri produced here is at worldclass standards. I do want to mention about why its important building it here in the United States. We have much better control of it here in the United States. First of all, it gives us security, we know whats going on, we have a stable environment. But secondly, jim, nucor has always been an advocate of American Manufacturing and the american worker. We believe there is no more productive worker in the world than the american worker. So being able to put the plant here in st. James parrish, louisiana, where we have a great team, weve been able to higher from the local area, very productive teammates. So having it here gives us better control over it, more security, better cost control and were producing a product thats very much close to our plants so we have a logistical advantage compared to bringing it all the way from trinidad. Now, you also have a novel arrangement with encana, a natural gas contract that basically gives you a level that you would not have to pay even if natural gas spikes because of this novel arrangement. That is correct. And thats important to us, jim, for two reasons. Number one, in our steel mills, being the largest producer in the United States, we consume a tremendous amount of energy both in the form of natural gas and in the form of Electrical Energy produced by natural gas. So we consume a lot of natural gas. Natural gas pricing, the cost of our natural gas is very important to our total cost structure. So thats the first issue. So making sure we have a longterm supply of reasonably priced gas at cost is very important to our steel mills. But also, as i mentioned, we consume a tremendous amount of natural gas right here at this dri facility. We consume here about 25 billion cubic feet of natural gas a year right here in louisiana. Just in this. So having that arrangement with encana provides us security on our dri investment and provides us a guaranteed cost advantage. Lets talk about the notion of security in terms of even domestic security. What are some of the countries we would have to deal with and be hostage to if it werent for plants like this . Well, dri, direct reduced iron, is a scrap substitute products. Other products would include big iron and hbi. About half of the amount of pig iron that comes in to the United States to produce a critical product that we call steel, very important to our national defense, half of our dri comes from ukraine, comes from russia, countries where theres not the greatest level of stability. Another scrap substitute product is hbi. That comes from venezuela, another country theres geopolitical risk. Two things i think people want to focus on, we want domestic security, youre giving us that. We also want clean. We dont want the old dirty way of doing which, by the way, a lot of these countries seem to be addicted to. Just take a look at this plant. Look at the plant in the background. Its a very, very clean operation, very environmentally friendly environment. In fact, one of the reasons we prefer dri to scrap is in the furnace dri is more environmentally friendly in our furnaces than scrap material because its a cleaner raw material going in. One last question, will you build the rest . Theres talk about huge additions to this if it works. Its obviously up to capacity, you have american workers. Can you see it all . We have the capacity here to build at least three more dri facilities. We have a 4,000 acre plot here. We built the infrastructure, jim, to support a second dri facility already. So our port facility, our electrical grid system all has been built to accommodate a second furnace. Were going to get this one up and running, were going to get it stabilized, continue to improve its operation then take a hard look at building the second facility. Thank you, john ferriola, chairman and ceo of nucor, will you show us around, john . Be happy to. Okay. Lets go. How do you actually use the natural gas to be able to create the end product . We basically use it like a chemical plant. Let me show you the product itself. Heres what a dri pellet looks like. We start out with pure iron ore and we bake it at about 2,000 degrees fahrenheit and ending up with a very high quality pure iron substitute product. Now that sounds like a simple process, jim, but its actually a very complicated process and to accomplish it we use some of the most technologically advanced equipment and controls found anywhere in the world. You say that you use a lot of natural gas but i dont think people understand the enormity, how much you have to use to get this iron going. We consume about 25 million mm btus and to put that in perspective, thats roughly the amount of gas consumed by the residents across the entire island of manhattan. That much. That much gas. We build our Manufacturing Base and strengthen the middleclass. The natural gas revolution thats taking place today is a great opportunity to accomplish both of those goals. We have no issue with exporting some natural gas, but we believe very strongly that its more important to keep the natural gas here in the United States to create jobs. Wed rather export finished products, not jobs. Coming up, playing golf . From the shale to deep offshore, halliburton is the company that helps a long list of players tap into American Energy. But can it keep pumping profits into your portfolio . Cramer is digging deeper. Were down here off the coast of louisiana sitting on top of an oil rig. In order to celebrate the north american oil and gas renaissance. When you think oil and gas you should think halliburton, the secondlargest oil service on earth with major exposure to north america. Thats why we were thrilled when we got a chance to talk with jim brown, president of halliburtons western hemisphere operations. Take a look. Jim, its been three years since we saw each other last. Tell me how your technology has advanced, what you could do now that you couldnt do then. Its very similar to what happened on land, jim. If you look at the change in the reserve base, how we went from peak oil a few years ago to a growing reserve base. That same thing is happening on land with the unconventionals, its happening right here in the gulf of mexico. Both with the evolution of the deep water place as well as getting more oil out of the ground on the mature plays. I know one of the things halliburton does with the haul advantage is get higher product for a lower cost per barrel. How do you do that . If you look at where halliburton fits in to the oil and Gas Development realm, we touch every aspect of drilling, evaluating, completing and ultimately producing the well. So take deep water, for instance, youve got a well thats going to cost about 130 million. You equate that to a minute rate, its 900,000 a minute. So every bit of technology you can bring to play that can reduce that nonproductive time is going to make that play more economically viable. Is it people or machines . What enables that . Because i see from since i talked to you last this cipher program you have. It seems almost like cloud, social, mobile. All the things you think about with technology and Silicon Valley right here on a rig. It really is. Its taking the whole optimization process, not only the surface delivery piece of the oil and gas industry but the subsurface piece in terms of how we lower that boe, that unit cost of production. Exxon, great customer, every knows 50year plan. They decided these fields were pretty much for them not a needle mover anymore. With your technology, are these fields you never want to let go . Of course not. If you look at the three primary strategies of hat ha halliburton, its around unconventional and you were in the bakken, you see that. Here in the gulf of mexico its about deep water which is our second and third mature fields. You have two components right there. So what is the technology thats changed the reserve landscape . What is it . The 3d seismic and 4d seismic where you can get a visual picture and reduce your exploratory risk. Secondly its the accurate directional drilling, horizontal drilling process thats taking place today. Then finally it s the efficiency around multistage completions. Same thing you saw in the bakken is happening right here in the gulf of mexico. Lets make it clear to our viewers. Instead of going vertical down you do what you were doing in the bakken go left, go right. Directional drilling that gets you around the salt domes and horizontal drilling. Look at the deepwater. Youre in 5,000 to 10,000 feet of water and then you subsurface another 20,000 feet but youre geosteering to the formation. Then the multistage completions that, again, lower that cost to the operator and expose more pay to the pipe. One of the reasons i like halliburton stock so much, not just because of the buyback which is probably the best in the industry but you have gone on record as saying that you are building your wells, that youre doing 20, 40, even 60 better than wells that are right next door. How is that possible . Our model has always been this, if we can make the most efficient Surface Operation we can make better wells, if you go across the unconventional plays right now in north america youll find the wells weve been involved with are 20 , 30 , 40 better. So even though there may be a cost to that completion or that drilling process, if you make more oil, make more gas, youve actually lowered that cost per boe and thats what we strive for. A lot of the majors have been saying its gotten too costly to drill. Is that because theyre talking about geographically . When i look at how much it costs versus when i saw you last, its gone down. It has and if we bring it home here to the gulf of mexico obviously if you look at the lower tesh rare and deep my seen, these are very expensive wells so the reserves are there. The reserves are there so then it comes down to rig efficiency, completion efficiency where you get the costs down and lower that cost for boe. But this is a very resilient, resourceful, Creative Industry and we always find a way to do it. Lets talk about the industry because when i saw you last you looked in the camera, didnt prompt you, and you said you needed 11,000 more people. How did that go . That was in 2011. We hired global they year 18,000. So here in the gulf of mexico we employ 3,000. Thats a payroll of 300 million. Those are highlyskilled individuals, highly paid. Well probably hire another 400 to 500 in 2014. So this market has been a steadfast market for us since the 40s, but actually over the next couple years its a Growth Market for us. I hear two things when i listen to your presentations. I hear frack of the future and battle red. These initiatives were frack of the future may have been when i saw you last because you had me drink the mcflurry like concoction and youre still alive. Better than ever. But whats battle red . Battle red is bringing the future digitizing our back office we employ in north america, for example, 31, 000 individuals, its time keeping associated with that. Theres the dispatching of all those people so digitizing our back office from time keeping to how we dispatch to all of our realtime inventory, we obviously handle a lot of product so its really digitizing the oil patch to that. Okay, now given the fact that youre president of the western hemisphere, a name that i you like that name, dont you . We all covet that title. Brazil and mexico. These are two very important markets but theyre not like dealing with the United States. Can a company like halliburton have a stay there even though the earnings arent necessarily coming out there immediately . They are, but the reserve are there, again. And this industry, again, is resourceful and creative and the costs will come down. So you look at brazil where obviously when you look at the presalt, those are big, big wells but theres an associated cost with it. But over time, as weve demonstrated in all the plays around the world, we get those costs down and make those things economically viable. Mexico with their transition of government now in understanding that they need outside investment, theres going to actually be a more reliability on the integrated Service Company to bring that technology so although theres a lull in those markets today we know that long term it will be very strong, even at the end of 2014. One last question. Theres only 10 states right now producing oil in the United States. Are there many more using your technology that we dont know about . Many more more places to drill than we already have . There are. Theres obviously a lot of public land in the u. S. Theres a lot of old basins that you need to pull out the old logs and dust them off and look at horizontal applications. So say is there another bakken or another eagle ford . Theres pockets of them out there and i think youll see some more come to play in the next couple years. Thank you so much for your time, thank halliburton for your time. Thats jim brown, president of western hemisphere for halliburton. Coming up this is a once in a generational opportunity. The energy boom has helped lower louisianas jobless rate well under the national average. Can Lessons Learned here be applied to the rest of the country . Cramer gets a read with louisiana governor bobby jindal. You might not know this, but the vast majority of the oil rigs in the United States are located right here off the coast of louisiana, a state thats also the numberone exporter in the union. If you want to invest in america, you need to understand louisiana, and what better way to do that than by sitting down with the states governor . Yesterday we got a chance to talk to bobby jindal, whos known as the probusiness republican governor of louisiana. Take a look. Governor, i know, unless youre going announce for president right here theres a lot of international and National Implications but what i really care about is one thing. You have developed an amazing system to bring companies down here and harness this natural gas revolution. Hows it going . Jim, its going great. Thank you for coming to louisiana. Were here in paradise, grand isle. In louisiana, our economy is growing. Were doing what washington, d. C. Is not doing. For example, more people working than ever before, higher incomes than ever before. Our economy has grown 50 faster than the national economy. Over 50 billion in projects announced in our state, over 80,000 new jobs. Its not rocket science. What did we do . We cut taxes. We have the lowest taxes for our manufacturing facility anywhere in the country. Weve made it easier for people to invest. We have the toprated Work Force Program in the country. We cut the budget 26 , cut 28,000 government jobs, were growing to private sector and, by the way, wed be doing this across the country from washington would get out of the way. Lets talk about this nucor facility. It was stirring to see it. Every american should come down and look at that unbelievable plant which has high wages, another time it might never have been here. How did you get that . Nucor, a great company, over 140 people working, over 70,000 a year. Thats just the first phase. Jim, this is about global competition. They were telling us it was between louisiana and brazil. I worked with dan damico, the previous ceo and now john, their current ceo, they wanted to build in america, and like so Many Companies they want to manufacturer products but theyre worried about federal regulations. Dan said, look we want to make things in this country but well build where it makes business sense to build so we worked with them to give them a predictable environment, we worked with them to make sure they had trained workers and we got d. C. Out of the way. Look at what the administration is doing. The president is dragging out oil and gas production, were seeing less production on federal lands since hes taken office since 2007, even before he took office. He wants to create jobs here, why not build the Keystone Pipeline . Why not get the epa and rein them in. Theyre doing opposite of d. C. In what were doing in louisiana. In terms of big projects that are in louisiana, weve had sharif sukio a lot, that looks like one of the biggest projects ive ever seen. Whats the cooperation there with what hes doing and being able to export the excess natural gas we have . Theres over 30 billion in already approved and proposed lng facilities for lake charles alone. Were talking about thousands of construction jobs, great permanent jobs. Look, i think its great. I think well stimulate more exploration work in the hanesville shale area. In west louisiana well have more than enough natural gas for the petrochemical company. Whats interesting, for years we used to export fertilizer out of this country, now Natural Gas Prices were seeing fertilizer plants reopen. Youre seeing Companies Like nucor, i think the shale revolution has not only lowered energy prices, its bringing goodpaying manufacturing jobs back to america and thats something that benefits i dont care if you live in texas, north dakota, louisiana, if youre in the midwest you should care about this. These good paying bluecollar manufacturing jobs. Something you and i ive heard you speak many times and i know were very much in agreement. Right now it seems like that situation in our country theres a big cohort that doesnt like fossil fuels so what we do is we allow other countries to take advantage of our own energy and basically were exporting jobs to them, importing their product. Its not really working because they are its global warming, means it comes from china to l. A. Well, look, this administration has been very clear, they dont like pipelines, they dont like new refineries, they dont like new exploration. They want energy to be expensive. They like subsidizing through crony capitalism expensive forms of energy. The first this administrations first Energy Secretary openly talked about wanting gasoline to be expensive. I want energy to be cheap, affordable, i want to drive those manufacturing jobs here. Youre right, were going to make products. The question is do we make steel and fertilizer and petrochemical products here in america or overseas . Id rather make them here, not in china or brazil. Lets make them in america. We talk about minimum wage. The kind of jobs youre talking about where youre working with educational institutions and companies, theyre producing jobs that can do more than just put a meal on the table. Nucor, 70,000 a year. Were talking about good paying jobs. A lot of them dont even require four year degrees. Were proposing a huge increase for higher education, thats 4 million for our universities to work with employers to train kids for good paying fast growing jobs out there. These the kinds of jobs we want our kids to have, they have benefits, careers, these arent minimum wage jobs, these arent government jobs, these are good paying jobs so you can raise a family. These careers. How about right around here where were looking at . Theres fields that have been left for dead, new technology making them come to life. Lot of jobs being created . Absolutely. Not only in the shallow gulf obviously theres great work happening in the deep shelf, we have Companies Pushing boundaries and doing great exploration work, shell had an exciting announcement recently. But you have fields thought to be tapped out, you have on shore fields, companies that are creating jobs, creating more energy. What it shows is American Ingenuity and innovation still works. In d. C. They see limits, we see opportunity hire. Were seeing the latest technology, you look at whats happening, my first year as governor you had double digit prices from natural gas, now youre seeing a dramatic fall because they took new energy to known reserves and were able to bring that out of the ground at a very affordable price. Were going to talk about the countries that are no longer competitive versus us. When i speak to nucor, for instance, the Steel Industry in korea had been an amazing industry but their natural gas cost is so great, so high that the u. S. Has such a competitive advantage. Thereve got to be countries with companies coming near would have stayed over there. South africa, over 20 billion investment in southwest louisiana. European fertilizer, a billion dollar investment in our country. Bentler steel, europe has an oilbased petrochemical industry, our is Natural Gas Based for feed stock, not just utility prices. We have a structural advantage. You see why were taking jobs back from asia, back from europe, in part youre seeing the labor cost, no longer the big differential but youre seeing this built in advantage because of energy. Because of that we can bring good jobs back from overseas. This is a once in a generational opportunity. I think we have to build things in this country. We have to have a diversified economy, cant all be Service Sector based and were doing that in louisiana, we can do that across the country. We have 86,000 skilled construction jobs, we have to fill in our state, just for the job project weve already announced after 25 years of exporting our people. For the last six years of a how will weve had more people move in the state rather than leave the state. This could be happening across america. We could be doing this nationally we just need government to get out of the way. Okay, so you have to state under control, this sounds like things maybe you should do nationally. Any thought to running for . Lets win 14 first, lets win the war of ideas but energy a big part of the war of ideas. One side is ideological, they want high energy prices, we want affordable energy, we want manufacturing jobs. Governor, thank you so much thats bobby jindal, the governor of louisiana. Stay with us. Geico motorcycle. See how much you could save. Its time to celebrate one of the most remarkable calls of all time. When the late great mark hanes flagged the bottom right here on cnbc five years ago at almost the exact low. But we praised that call, perhaps more important to explain why mark traced that brave line in the sand, and it was brave. I had the privilege of being on television with him about the same time he said the market is done going down. Mark was incredibly astute at gauging investor sentiment. He was always measuring whether there was too much froth or too much negativity. He wanted individual investors to be wary of what was too hot and be opportunistic when things got too cold. When mark called the bottom he was focused on the ratio of sellers to buyers as measured by statistics that showed whether sellers were willing to whack the buyers bids rather than be patient and offer stock. When he saw a 91 ratio of sellers versus buyers as was happening in 2009 he recognized we had gone to emotional extremes. Five years ago, he merged intuition with the Technical Analysis of panic and just plain nailed it. Now we dont know what hanes would be saying here after this historic run, but i know he was big on identifying the extent of froth so i think hed be upset with the way the smaller biotechs and the fuel cell stocks are taking off. However his bottom call was about the market as a whole being too negative so as long as the froth is cordoned off to small segments, i think hanes would stay skeptical as always of those kinds of stock bus keep looking for bargains elsewhere because they arent necessarily near top and for most of the market its still business as usual just carry on. Stick with cramer. Bayou booyah [ male announcer ] how could switchgrass in argentina, change engineering in dubai, aluminum production in south africa, and the Aerospace Industry in the u. S. . At t. Rowe price, we understand the connections of a complex, global economy. Its just one reason over 75 of our mutual funds beat their 10year lipper average. T. Rowe price. Invest with confidence. Request a prospectus or summary prospectus with investment information, risks, fees and expenses to read and consider carefully before investing. Bayou booyah im jim cramer and i will see you tomorrow hello. Youre watching Worldwide Exchange and im ross westgate. Today, the search for a missing malaysian airliner is still ongoing. Not likely to be a member of any terrorist group. Ukraines acting president launches the natiol