The biggest economic story since the financial crisis. Crude oil prices have plummeted 60 in five years, leading to massive layoffs, production cuts, 2016 brought relief to the Energy Sector with prices rebounding off of decade lows. Anthony the question on investors minds, what happens next . We welcome Legendary Oil investor billionaire Boone Pickens, chairman and ceo of b. P. Capital. What do you see going on with oil today . Its going up because you hit the low in january, 26. 19. Back up to 43 today. Yeah. Okay . Now youre headed, you hit the low, and when you went back and checked it, we went back to 26 twice, now youre going to go twice that in 12 months. By the end here, youll be back to 50. Anthony you think theres a lot of governmental intervention in the market, saudi arabia in particular, and opec driving that . Or is that fundamental supply and demand . No. Weve had five times, since 1980, we have hit a low, rebounded within 12 months. But four times the saudis, they balanced the market. They told us before this one went down, they would not do that anymore. Theyre going to hold their production at ten Million Barrels a day, okay . Now, thats exactly what they did, and guess who balanced the market . Us. The United States. Thats what i want to ask you about. If youre looking at oil to be back around 50, 60 by the end of this year which is what youre predicting, how does the production and the supply part of the story fill in there . The u. S. Is now this major Energy Producer, doesnt the supply number dont supply numbers go up, and wouldnt that mean that oil prices go down . Why would supply go up . Because of the u. S. And production. No. We had 1609 rigs running in november of 14. Now, we have 342. Okay. So they shut it down. They made us the swing producer and the swing producer of the United States, they do it all off economics. When the price went down, the rigs stopped. Anthony because of the low price, boone, do you think there is more bankruptcies on the horizon for the industry . Yes, definitely will be. This is the whole story line and the debate around saudi arabia. Saudi arabia had a real plan in place, they wanted to shut down the shale business in the United States. They did it they did it, but well see how it goes from here. I mean, well recover. The u. S. Industry will recover, but youre going to be up to 7080 by 17. By 17 . Anthony the question investors have is whos going to own the assets in a post bankruptcy situation for a lot of the companies . Who is . Anthony yeah, whos going to own it . Theyre going just move from one to the other companies. You remember exxon was like number three on Gas Production . But theyre now number one. How did they do it . Bought xto, bought a big independent, and exxon is number one. I remember the last time, well, i wasnt at the market this time, but i read about it, and remember when exxon got together with mobil, that was a period when oil prices were so low. When we see prices go down, you see dealmaking, consolidation, thats what youre looking for now . Youre going to have deals, no question, but well see. Pioneer has so much oil, its incredible. But so does enron, anadarko, all of them wellfinanced and everything. Anthony you are bullish on those stocks . I am. I am bullish on them. We want to hear more what boone is bullish on. Stick around. Well have more after this short break. Boone pickens says there is more opportunity in energy. Whats the best way to invest in legendary trader mark fisher has that next . What will the outcome of the election mean for oil and our election mean for oil and our ah, my poor mouth breather. Allergies . Stuffy nose . Cant sleep . Enough. Take that. A breathe right nasal strip of course. 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Boone is looking for 50 a barrel by the end of the year whats your outlook, mark . The last time i made a prediction i was dead wrong when i said oil wouldnt go below 80. Oil is in a band between 30 and 60 and i think for an investor, you know, anywhere between 35 and 55, like boone said, most of the companies are going to the strong ones will do quite well. Maria do you want to be buying the commodities straight out . Want to be buying some of the companies that are doing production . You know, boone is expecting a huge wave of consolidation and deals, is that one way to play it . Well, let me say im honored to be on the show with boone, he may not know this, he and i were on opposite sides of the Largest Crude Oil operation that took place. A 7,000 lot trade that went down in one shot right after the iraq war and there was an arbitrary on the first and second month, and i was on the other side of the trade. Maria that was you . You remember that . I know who mark is, so yes. I didnt know we were on the other side of that trade. We both made money, it was good for both of us. See, to me, im more interested in the opportunities in natural gas than i am in crude oil for a couple of reasons. Number one, when you have someone as powerful as the prince of saudi arabia who could move the market 5 either way with five words out of his mouth, thats not necessarily a market that you want to go ahead and put eggs in your basket. Because as you saw what happened, the prince, the 30yearold prince out of saudi arabia scuttled the entire deal worked on for over two months, you know, in five minutes. But to me, theres a lot more catalyst going on in natural gas Going Forward than crude oil. And obviously a lot of the companies that boone mentioned will thrive if natural gas picks up. Number one, i dont think were going to see a repeat of the weather that happened this past winter. Number two, with the l and g filing getting on track in the United States with increased exports to mexico, with increased demand, more conversion from coal to nat gas, and if you get a typical winter and maybe a cold winter and a hot summer, you could see the price of natural gas go up by 50, 60 . To me, thats someplace where theres a lot more catalyst and you cant have one or two people influence the price in five minutes by 10 . Anthony mark, from a trader perspective, youre long at this point . Yes, id definitely be a buyer of dips in natural gas and crude oil if i was looking to do something, its a little esoteric, front spreads in heating oil and gas lean and crude, because im sure boone knows, with the market being at 43 in wti, the front month spread in brent went to backward state for the first time in god knows a long time. Maria you agree with that . Natural gas . I agree with everything mark said. Im long natural gas, too. Long on oil and long on natural gas. Hes right, you can get a lot more leverage off the gas than you can off the oil. Anthony youre long fundamentally through the end of 2016, though, is that correct . I sort of think this is going up from here. Im not long nearby contracts. Im long out. Anthony outdated contracts. Right. Anthony what do you think about that, mark . Does that make sense . It does, the problem is, boone knows, long contracts, you expect the price to be 5055 toward the end of the year, the market is in a tango state, the market is priced in, the spot price is 43, the market in december is it 48 . I dont know where that is right now. So again, boones 100 right. To me, im all about where is the biggest roi, return on my investment in energy space . With the leverage and the price of natural gas getting decimated over the last year, year and a half, theres more leverage and less risk buying dips in natural gas than there is in trying to go ahead and make the extra four or five dollars there could be in crude. I think its more than four or five. Maria more . How much . Thats the only place that mark and i havent agreed on everything he said. I think theres more there. Maria and part of this is as weve been talking about saudi arabia. Number one, we had the production freeze, nothing came out of it. The saudis wouldnt do anything because the iranians wouldnt partake, and you hear saudi arabia saying we may consider taking iran co public, in an ipo, would you buy that deal . No. No. Maria why . I wouldnt buy it with stolen money. [ laughter ] why . Well, do you think youre going to have stockholders rights . Maria no. Zero. How do you like that . Anthony what about a dividend . Id rather buy pioneer. Anthony what are the top three names, boone . Mine . Anthony yeah, top three. Pioneer, enron, anadarko. Anthony if you had to pick a big oil, which is the best of the big oil . Id probably pick chevron. Anthony chevron. But big oil, i dont know what theyre going to do, i dont know what their future is. They now have turned their end decline on production, they have to acquire reserves, they probably arent going to find it, and they missed the shale play. Chevron is big in west texas. Anthony do you think any of the Oil Companies would cut their dividend nearterm . It will be horrible if they do. Id rather cut capex than i would but exxon is consistently buying their own stock. I would stop that and increase dividends. Maria what about is this a dividend play then, mark . Do you agree with that . You know, honestly, when it comes to which individual Energy Stocks i would leave that to boone. I think that cutting capex is a good idea and returning more value to shareholders via, you know, buybacks and dividends is better, because why keep investing capex if the price is so low . Anthony boone, mark, stick around, more after this. Announcer fight to frack, a Major Campaign issue for our president ial candidates. But what are the real consequences for our country . Boone pickens and mark fisher are next. Banning fracking altogether is insanity. Is insanity. Absolutely nuts. Thank you for calling. Is insanity. Absolutely nuts. Well be with you shortly. Yeah right. Xerox Predictive Analytics help companies provide a better and faster customer experience. Hello mr. Kent. Can i rebook your flight . Im here Customer Care can work better. With xerox. Wait im here mr. Kent . gasp shark diving xerox personalized employee portals help Companies Make benefits simple and accessible. From anywhere. Hula dancing . Cliff jumping Human Resources can work better. With xerox. Weinto a new american century. Born with a hunger to fly and a passion to build something better. And what an amazing time its been, decade after decade of innovation, inspiration and wonder. So, we say thank you america for a century of trust, for the privilege of flying higher and higher, together. You premium like clockwork. Month after month. Year after year. Then one night, you hydroplane into a ditch. Yeah. Surprise. Your Insurance Company tells you to pay up again. Why pay for insurance if you have to pay even more for using it . If you have Liberty Mutual deductible fund™, you could pay no deductible at all. Sign up to immediately lower your deductible by 100. And keep lowering it 100 annually, until its gone. Then continue to earn that 100 every year. Theres no limit to how much you can earn and this savings applies to every vehicle on your policy. Call to learn more. Switch to Liberty Mutual and you could save up to 509. Call Liberty Mutual for a free quote today at see Car Insurance in a whole new light. Liberty mutual insurance. Anthony welcome back to wall street week. Joined by Boone Pickens and mark fisher. A recent gallup poll Shows Americans opposition to fracking is now at 51 . Maria yeah, Bernie Sanders made fracking a central part of his president ial campaign forcing others into the discussion. Mark, do you worry that the next president could do to oil what the Obama Administration did to the coal industry . We know it wasnt good . I dont really im a little concerned whoever the next president is and what they do to the oil industry and the gas industry. I think banning fracking altogether is insanity. I mean, it could be done it could be done very efficiently, obviously with a lot of safeguards to protect the environment. Theres new technology to replace the water that goes with fracking, but just to go ahead and just ban it, were going to end up creating our next Energy Crisis ourselves. With we have the opportunity to actually be the worlds swing producer and Energy Producer in oil. Its nuts to me. Anthony what do you think, boone . Absolutely nuts. Youre producing globally every day, 94 Million Barrels of oil. 70 of that goes to transportation fuel. Think. Maria wow. You shut that off, you shut down the world. Maria not exactly going to have solar energy transporting you from one place to the next. Solar and wind are power generation, they are not transportation fuel. They dont even compete. Maria cant. No. Anthony boone, who would be the best candidate to become president related to energy . Probably trump. Anthony why . Understands the business better. Maria what do you make of this election here . Youve got a lot of mudslinging, we know, but thats politics. How do you think the economy, the markets react to a donald Trump Presidency . I think that weve got to do something about the 19 trillion in debt. He knows you have to have an economy that is better than 2 . 2 , were in a death spiral, so i think he understands that, and consequently, i think that he will see the best way to rebuild the economy is off the back of cheap energy. We have the Cheapest Energy in the world, and were abundantly supplied in america. We have more natural gas than anybody in the world. Not the most oil, but we are in the top two. Anthony what do you think, mark . Whos the best candidate for the energy industry, but also the broader economy . Anthony you and i had a discussion before the show, i think there should be a Third Political party in the United States called none of the above in all of the elections, if none of the above outpolls both candidates, both candidates are taken off the ballot and you have another election. I know thats completely out of box. With that being said, i think that the best chance that donald trump has, okay, is if he goes ahead and announces who his cabinet, who his top 12 secretary of state, you know, everything before the election, not only is he running but his entire group is running against the democrats. Maria thats an important point that you make because people want to see that hes going to surround himself with smart, informed people. Take it to the other side, boone. A lot of people talking about donald trump being unable to beat hillary. What does a Hillary Clinton presidency do for markets and the economy . Well, Hillary Clinton is she said the same thing that bernie did. That was, no fracking. Thats nuts. Maria what about the broader economy . Pardon me . Maria broader economy. She is going to raise taxes, partly because she wants to spend it on things like health care. Anthony and infrastructure. She has that in her plan as well. Yeah, but infrastructure should go back, if youre going to do that, go back to fdr, do the wpa. Pay people to work, but they work. Anthony then those wages recirculate back into the economy which leads to some modest growth. Exactly. But her plan will not get you 5 growth. No way. Anthony do you think that you looked at Natural Gas Industry, a democratic president does what to that industry . Is that a massive recessionary force in that industry . A democrat, you say . Anthony yeah, either of the two candidates . All they talk about is renewables, wind and solar. Wind and solar, you know, it doesnt wind doesnt blow every day and the sun doesnt shine every day. Wind and solar will never be a big percentage of power generation. It gets 10 . Sure it can get there. Maybe 20. But you have to do that with natural gas is where you are on power generation. Anthony mark, what kind of policies would you recommend to the next president for the energy industry, and specifically the Natural Gas Industry . In terms of energy infrastructure, i think that if government tries to spend the money, its going to do a terrible job. Theres got to be some type of quantitative easing, some type of incentive to industry to create a qe effect on infrastructure, where it engages companies to go ahead and hire more people, train them, reeducate them, and build up this countrys infrastructure, roads, bridges, everything the country needs. If the government spends the money, its never going to work. Anthony youre talking more tax reform and incentives to help the private market, basically . Yeah. Maria thats what everybody says. Tax reform is necessary because of the highest corporate rate in the world. How big of an impact would tax reform have if the markets started sensing were going to get a leader in there thats actually going to implement tax reform in year one, what happens to markets . You cant. I mean hillarys approach is raise taxes. Thats a killer. Its a killer. We already have the highest tax rate for corporations in the world. Anthony so a tax cut, though, market rallies off a tax cut. Is that fair to say . Yes. Anthony what do you think, mark . Tax cut, market rallies . I think the market is in such a place, look whats happened in the last couple months, you have terrible earnings reports and the market keeps, you know, apple reports, the market holds its own. Thats because really these companies in the s p 500 or the dow, this is the place where people can put their money. Im involved in creating the essential 40 companies in the United States, like a new type of etf. Where are people supposed to put and trust their money . Trust it in government bonds yielding sub 2 . You know with the companies, with the i view the market as more of, theres no other place to put your money at this point. Anthony Boone Pickens and mark fisher, thank you for joining us. Well be back next week, and two weeks wall street week is heading to the salt conference in las vegas, well bring you expertise from top leaders in finance, politics and entertainment. Friday, may 13th. You wont want to miss it. [vet] two yearly physicals down. Martha and mildred are good to go. Heres your invoice, ladies. A few stops later, and it looks like big ollie is on the mend. It might not seem that glamorous having an old pickup truck for an office. Or filling your days looking down the south end of a heifer, but. I wouldnt have it any other way. Look at that, i had my best month ever. And earned a shiny new office upgrade. I run on quickbooks. Thats how i own it. Go. As hot spots arise around the world, our military is powering down. Most of you in the army know is that the army is reducing its size. I worry about the capability and capacity to win in a major fight. With the armed forces getting new marching orders male rotc cadets were pressured by the military to walk around in womens high heels. I found that entire incident just kind of bizarre. Is the new u. S. Military ready to face new threats . Youre sending the message to the rest of the world youre basically retreating. Fox news reporting. Rising thre