Im tyler mathisen. Welcome, everybody. We begin this hour with the latest on that massive blaze. Cnbc is 200 miles south of the fire line in edmonton. Hey guys, the cooler weather and light rain is providing some respite for Fire Fighting officials. This wildfire is still out of control and is being referred to as the beast. Now i want to put the size of it in perspective for folks watching from home. Consider this. It is now twice the size of new york city, all five bureaus. Twice. It is absolutely massive. 10,000 people now have been displaced. As for the city of ft. Mcmurray, the gateway to Canadas Oil Sands, the zbas shut off. The electrical grid is damaged. The water is undrinkable. That makes it very difficult to know when the thousands of displaced residents are going to be able to return home and find out if their homes are even still there m of them are behind me at the Evacuation Center here in edmonton. Even officials here, the manager of this Evacuation Center doesnt know when theyll be able to return. Were waiting for information from the province. So theyre in there right now. And the last i heard a lot of the unfrom a stru infrastructure is being looked at and the integrity is still good. So were waiting for the word. Now it is also hitting this region and canadas major industry. The oil sands. Of course, production is at about has been cut by about onethird. That is about one Million Barrels per day of oil. And the uncertainty is we dont know when a lot of the operations are going to be able to start up again. It could take weeks or months as some analysts are saying. Production takes some time to ramp back up once the smoke and fired cleared. Well continue to monitor this very slow situation. Back over you to guys. Thank you. The pictures really shoate level of destruction thats far. And that wildfire is one of two big factors weighing on the oil market. The other is a big shower shakeup inside the worlds second biggest oil producer, saudi araaarabia. This is the chairman of the state run oil giant saudi aramco. What does the change mean in power for the Global Oil Market . Joining us on the cnbc news line is the former executive with saudi aramco and president of husseiny energy. Good to you have here. He was known for defending the idea that saudi arabia should not cut production in order to stabilize or even improve prices in oil. Do you think now with this change, is that going to change in any way . No. Not really. The policy is set at the national level. And the minister of petroleum normally just execute the policies. So i dont expect any changes in the International Marketing strategy. This is a domestic change. What do you make of the overall effort thus far by the saudi government under the new deputy crown prince who has been so influential . A lot of the changes that he wants to do, many would argue, are necessary. But from the outside, he seems a bit like a bull in a china shop, especially the way he has seen to intervene during that meeting that our colleague brian attended. No, i think thats quite unfair. I think he came to office and he realized that there was a lot of issues that needed to be addressed. And he is taking them very cautiously. The program thats hes unfolding have been studied over many months now. And the trance fosformation is primarily in the improvement of the outlook, domestic outlook for the kingdom. Hes very much focused on achieving a transformation and hes doing in a systemic manner. He will go to opec, but he is really there . Does he have any Real Authority or do you believe he is only a proxy for the royal family . No. He is a very experienced executive. Hes been in the business for many decades. Hes highly respected by both Prince Mohammed as well as his colleagues. I think hell bring a lot of judgment and perspective to the opec meeting. I think hes probably far more experienced than most of the ministers there. So can you give us any color into what is being said in saudi arabia over the weekend about this article that was in the New York Times . Profiling ben roehodes which suggests the narrative they sold to sell the deal to the American Public was completely untrue and that it had nothing to do with what they said was a more reformist government . Well, look, weve all been a little bit cynical in the middle east about some of the stuff that gets published or come out of the u. S. Administration. Not just now but dont forget the weapons of mass destruction that were a few years back and the devastation of iraq that followed. I think were not surprised over here, overseas. I do hope that the public and the u. S. Take that into consideration whether they hear the unusual agreements being pushed by like this Iranian Nuclear deal. Before you go, a very quick question. You are former insider. What is saudi arabias average cost per bare toll day, do you believe . Barrel today, do you believe . We have a range of oil fields. Some are as low as 5. I would it this most expensive ones may be 10. Most expensive, 10 . Okay. Thank you so much for joining us. We have breaking news. North carolinas Governor Holding a News Conference right now over the socalled bathroom law. Let us listen in. Until the Charlotte City council imposed a mandate on private businesses, this mandate required with potential penalty of fine access to rest rooms, locker rooms or shower facilities be based upon ones gender identity or gender expression. A similar policy was rejected just months earlier by the voters of houston, texas, by 61 of the vote. This caused major privacy concerns about males entering female facilities or females entering male facilities. Our state legislature believed this was an unnecessary government overreach into the private sector imposing regulations and impacting ones personal privacy. The state legislature and this governor also believe that guidelines then need to be put in place because of the new public topic for government buildings or schools and or rest stops to ensure privacy and expectation privacy for everyone. Now just five days ago the u. S. Department of justice sent letters to my office, the department of public safety, which reports to this governor, and to the University System suggesting that having Government Employees use the bathroom, locker room, or shower facility that correspondence to their biological sex is in conflict with federal policy. The department of justice asked all parties to set aside their constitutional duty and refuse to follow or enforce our state law. This was a substantial request with very serious implications. And the u. S. Government gave us a mere three Business Days to respond to this letter. We asked on friday, the department of justice for additional time, in fact, we asked for an additional two weeks but they refused unless i made a statement where i would publicly agree with their interpretation of federal law and if i did, they would give me one additional week to respond. I could not agree to that because i do not agree with their interpretation of federal law. That is why this morning i have asked a federal court to clarify what the law actually is. Now i anticipate our own legislature, other private sector entities from throughout the United States and possibly other states to join us in seeking this clarification. Because this is not just a North Carolina issue. This is now a National Issue and an issue which imposes new laws on every private sector employer throughout the United States of america with over 15 employees. We believe a court rather than a federal agency should tell our state, our nation, and employers across the country what the law requires. And let me say something. Our nation is one nation, especially when it comes to fighting discrimination which i support wholeheartedly. Ultimately, i think its time for the u. S. Congress to bring clarity to our national antidiscrimination provisions under title vii and title ix. Let me repeat that to our u. S. Representatives and leaders of both the republican and democratic parties in congress. Ultimately, i think its time for the u. S. Congress to bring clarity to our national antidiscrimination provisions under title vii and title ix. Now right now the Obama Administration is bypassing congress by attempting to rewrite the law and set basic restroom policies, locker room policies, and even shower policies for public and private employers across the country, not just North Carolina. Now im still asking the North Carolina legislature to reinstate the ability to sue for wrongful term inatidiscriminatie court. I encourage them to do this quickly. I also welcome additional dialogue with the city of charlotte and our state legislature which has been on going for the past week. And i want to ensure the people of our state and our country that North Carolina has long held traditions of ensuring equality. The majority of our citizens and our great state and this governor did not seek out this issue. However, the state of North Carolina and this governor welcome the opportunity to be part of the solution for all of the states and especially our nation. The greatest nation, the United States of america. Thank you very much. And that was the North Carolina governor asking for clarification on federal policy as it pertains to North Carolina and the country behind us on the wallabee the way, more than 100 companies opposing North Carolinas religious freedom law that hes asking for clarification on. You can see many big names here. All right. Lets get back to our saudi story and get the take of a former ambassador to the shakeup in saudi arain yas ara richard murphy, he is a scholar at the middle east institute. Thank you for your patience. He is considered one of the most powerful men in the state. He is now out. Does this flexing of power about it kings son mark a sea change in saudi policy or thinking . I dont think underlining the royal family, particularly the king and today the king is the deputy crown prince have greater power than the oil minister. The shock is that in saudi arabia, so many issues are opaque behind carried out decisions carried out behind the screen, so to speak. And naimi was interested in retirement some few years back, very respected. And its true what your previous guest said that there is domestic change emphasized here. But the newman haas grae experience, came up the same ladder as alinaimi. So there is no lack of technical expertise. But the Current Situation underlines that what wh push comes to shove, the royal family is in charge. Ambassador, if i can move you to a slightly different topic related to saudi arabia, this article over the weekend that i referred to earlier, the profile of ben rhodes which suggests that the narrative constructed to sell the iran deal wasnt actually true which we would assume would be extremely upsetting to the saudis. How do you think its going down there and what do you make of it . The iran deal continues to trouble the saudis very much. Its seen as a gift to iran. They accuse the american policymakers back in the george w. Bush administration of making an enormous goiift to iran by invading iraq. So there is theres a lot of uneasiness about irans planning, irans development and the new wealth that has come to iran as a result of the nuclear agreement. Their anxiety is not new is all im saying. When i look at your biography, sir, you seem to be the example of that Foreign Policy elite that now it appears the Obama Administration has a lot of contempt for and any thoughts on that . Well, the boss is always in the white house. There are times when i think the state department has felt in full tune with the white house. There are other times where there have been disagreements. But, you know, tend of the day the president makes Foreign Policy. He sure does. Thank you, sir. Spoken like an ambassador. We do appreciate your time on the show today. Thank you very much. Lets get a market flash now with dom chu. Headlines on medivation. The stock is moving higher in the ten or 15 minutes or so. The headlines are coming out of roiters that the company is perhaps starting to explore the sale of itself. Did it find a nondisclosure agreement with Companies Including pfizer and amgen. This is all source reporting. Again, people familiar with the matter. Nothing formal just yet. The reason the stock hasnt moved higher than is because this has already been in the news cycle, guys, over the past couple weeks tend of april. Remember, there is there were talks that santafe wanted to pursue a deal to take over the company. They wanted to engage the o board and reporting coming out that pfizer was perhaps interested in the company. So, again, a lot of deal chatter surrounding this particular company medivation. Were seeing the reuters headlines today saying that possibly nondisclosure agreements have been signed by the likes of a pfizer an amgen, perhaps others in this battle over medivation shares. Thank you. New develop. S in the Sumner Redstone trial. Julia . Melissa, after one day of trial, judge david you could enruling to dismiss the case filed by Sumner Redstones exgirlfriend. The judge saying that redstones testimony doesnt z. In fact completely alt they are case. We caught up with her attorney, she says herser plans to sue Sherry Redstone for 100 million and allege thats sherry and the nurses manipulated and brainwashed her father. The evidence is shocking. Were confident that a jury, there is going to be a jury in this courthouse, hearing this down the road will share our feelings that what happened to Sumner Redstone was not the product of free will but the product of an orchestrated, devious campaign to take over her father and his empire. Redstones attorney issuing a statement saying ms. Herzer bet wrong when she said his difficulty communicating would result in will he instatement in his life and fortune. Mr. Redstone is looking forward to liberating the 150 million in gifts to ms. Herzer and his friend. He plans to sue herzer and former companion to recover 150 million in gifts he gave them. He also plans to allege elder abuse. As for implications for speaking to us and viacom and controls voting stakes, there are no changes. Well see if the testimony and the evidence presented in this trial raises any questions from shareholders. Back to you. Thank you very much. Donald trump says he is willing to raise taxes on the rich. It is a change in tune for the gop frontrunner and a break from gop poll sichlt will this drive an even larger wedge between thim and conservatives . He can win without them . Thats all ahead on power lunch. In a world held back by compromise, businesses need the agility to do one thing another. Only at t has the network, people, and partners to help companies be. Local global. Open secure. Because no one knows like at t. They found out whos been who . Cking into our network. Guess. I dont know, some kids in a basement . You watch too many movies. Who . A Small Business in china. A business . They work nine to five. They take lunch hours. Like a job . Like a job. We tracked them. How did we do that . We have some new guys defending our network. New guys . Well, theyre not that new. Theyve been defending things for a long time. [ digital typewriting ] its not just security. Its defense. Bae systems. Welcome back to power lunch, everybody. Im tyler mathisen. Lets turn now to the race for the white house. The reporter at the milwaukee journal tweeted to day that paul ryan would step down as chairman of the Gop Convention if the Presumptive Republican nominee donald trump asked him to do so. He said ill do whatever he asks me to do. He is set to meet with him thursday. We asked the eternal question, is the gop going to get behind trump or not . With us is a former mccain adviser and also with us is ben white, a cnbc contributor. As the member of the aforementions republican establi establishment, what do you think . Are you getting behind him . Will other people get behind him within the gop establishment . I think the key issue is what hes going to say in the way of policies. Theres a big disconnect between his recent statements about renegotiating the debt or raising taxes and where the policy foundation of the party has been for a long time. Well see how that plays out. But as far as paul ryan, i think that is a really interesting development. Any nominee has a huge influence on the convention from speakers to the order of the program and paul ryans position there is essentially symbolic. It may be the best for both parties if ryan steps aside. Well see. Ben, your reaction to what doug just said. But also to an article you wrote, get your thoughts on this, about the number of people who are part of the republican establishment who let it be known they really dont want to work for donald trump should he win. Right. First on the paul ryan question, i think you would translate that tweet from the paper as paul ryan signals he would love donald trump to ask him not to be at the convention and not to preside over the convention. I dont think he wants to be there. I dont think he wants any part of it. So that is that piece of it. On the administration front, doug is one of the people that i think in the i wouldnt call them establishment but in the group of senior officials in washi