And others were looking for higher prices. For the second time in two months, opec mebdz unable to strike a deal. This meeting was also relevant because for first time in 25 years, the saudis set a new oil minister and we heard from him for the first time coming out of the meeting. Of course, he talked it up. Listen. We are extremely happy. I think the market is in good shape. The market is balancing. Trends are all good in terms of supply and demand. Prices have recovered somewhat. I believe they will continue to recover. Spirit of the meeting is very cooperative, collaborative and all of the ministers see basically the same funneledamen. A lot to decipher in that short sound bite. Our guest is also making a long journey. Before we get into prices and market balance and everything, what if anything did we learn from the new saudi minister today . I mean, basically, i think he went on the listening tour. He really wanted to convince the rest of opec he cared. He was not impervious to their plight. And so basically, i think he is trying to play nice in the sand box. Yeah, there is some talk that maybe if the former minister was here that thing was have gone a little different. He said in the past, look, its not our job to defend prices. I dont think he would have given a lot of relief to the other members. I think he wanted to make everyo feel good. You think he did that . Nobody has any choice. Thats the problem. What was interesting was is venezue venezuela, their Energy Minister walked out saying it was an excellent meeting. That made me wonder if hes in caracas. Almost everyone is like i described it earlier, the oscars of oil. They all come out one at a time, flash bulbs. Everyone is looking for kmen takery. They came out with a big smile, happy, pleased. Happy, pleased. Come on. Do you think they really are . Its a lot different than december. They all walked out furious. They walked over to the people and said the meeting was a disaster. What i heard this time is there are so many meetings and hotel rooms before today, everyone knew the outcome. No one was surprised this time around. Balanced. You heard the saudi minister was balanced. Do you believe it is balanced . Certain countries have they balanced it for them. What about the United States . The United States helped them balance. Going into this meeting when you lose 800,000 barrels, you really balance quickly. All right. Thank you. Well see you a little later on on fast money. Great analysis as always. So there you go, guys. Everyone is extremely happy. Everything is fine. Everythings fine. Thank you. Everythings fine. Yeah. Good stuff. Thank you so much. That is not opec headquarters originally. U see the building that brian is standing in front of, that is the opec headquarters. Traders got a chance to digest the opec decision. So what next . With us now, oppenheimer Senior Energy analyst and the analyst at seaport. Why you would bother to be a cartel if you cant cartel . Theyre in denial. Theyre in denial. Opec is finished . Opec is over. We actually heard that from the Saudi Oil Minister today. He said that opec may not have the function of the future of being of managing the market. Isnt that an acknowledgemen of that . Absolutely. Production has kblecompletely changed the way we look at energy. Opec and saudi arabia are no longer the one producer of the world, only two years ago. What does this mean for oil prices then . The market will dictate where oil prices will be. And that is basically the new normal. The new normal is not going to be 40. Its still going to be 80. Its going to be close to 60, 65. Why . Because that is the margin of production in the u. S. The people that are delusional think were going to go back to 80. Theyre looking at the wrong charts. Mike, the charts have will a great run recently. Do you agree with him when it comes to the price of oil . What does that mean for what has been a big run . Do you keep riding that wave or take profits here . Thank you for having me on. I agree with fidel. I was reviewing a deal out there in the market right now, the hot plays and the stack. A company out there is pay rock energy. And theyre citing 200 rates of return on a 40 oil price for the wells. So theres some superstars here in the u. S. That are going to be able to grow at a price much lower than 60, quite frankly. We think early long term pricing we is the is 55 that balances the market worldwide. Who is better positioned at this point with opec being dead, as you say. Shale be the swing factor and oil around 65 . The companies will probably be the best performing stocks going forward. These are the companies that are producing mainly in the u. S. These are the companies that we benefit from improving efficiencies. Companies become more creative companies. They cut costs and they have operating efficiency and seek a way out. Thats what the industry has been doing for the last three years. The break even point continues to go down. Higher oil prices will create profitable environment at 60, 65 oil which was not possible only two years ago. You need 80 or 85 or 90 oil. Thats no longer the case. If we buy your theory that opec is over, how does the end of opec look . What does it look like . The lost control of oil prices years ago when they realized being this producer you get penalized. Youre in the penalty box for most of the time. So, therefore, its over. What happened today is that regardless of where prices are, opec is forced to sell as much oil as possible because oil in the ground has no value for them. So those countries that need the cash, pump and pump and pump, whether its venezuela, algeria, they need the snn. They need the money. Theyll not have enough money to support their Capital Spending if you will in the fields in order for them to maintain production let alone increase production. So, therefore, you have normal decline rate between 5 and 10 . Right. And basically its a treadmill. You can run as fast as can you but youre not going anywhere. All right. Thank you very much. Good to have you in the house again. Thank you. Thanks, mike. And mike, thank you as well. We want to alert tout markets and what theyre doing right now as were talking about oil. We did see wti and brent reach session highs and at the same time the dow pushing to session highs. We have been as many as 90 points lower. Now higher by four points. Of course, were watching all the major indices right now. The dow and nasdaq are up. Tesla ceo make Something Interesting revelations about where he sees the competition coming from and where he doesnt. Theyre not a car company. So they would potentially, you know, license the technology to other Car Companies. I would say, you know, google is a competitor. Apple . Yeah. That will be more direct. That will be more direct . Yeah. I think theyll make a good car and probably be successful. The car industry is very big. So its not as though, you know, one company to the exclusion of others. That is also critical about the timing of apples auto plan saying the iphone maker should have embark ond this project sooner. Lets bring in andrew erkow tichlt z. Hes not convinced the Auto Industry is where it should be. Guys, great to speak you to all. Andrew, ill kick it off with you. What is your take on a potential entry . Yeah. No, i wouldnt disagree with you. I think, you know, you look at the Auto Industry. It is awfully sexy for somebody at apple. If you just get 1 penetrationst overall market, its a lot of revenue. But there is more it to than just revenue. There is supply chain issues. You have to get scale. And so forth. Its very capital intensive. I wouldnt expect a positive roi for many, many years. So were a bit skeptical of this is the right move for apple. John, what is your take on why apple might want to do this . I mean theyre already facing margin pressure on the iphone with the introduction of the sc. Theyre taking oun the estimate, specifically citing the lower margins it will face because of the push into emerging markets y go into a business that is at the get go a low margin business . Im not sure it will be a low margin business for long. Ive been talking to people like gene lu who is here. Ill have more from her tomorrow. But also to mark fields from ford. This is turning perhaps into a car as a service business. Particularly in places like china where they want more electric vehicles and theyre not looking for individuals to buy the vehicles but have Companies Buy them. Koinld up mo you koend up with a lease structure or a maintenance business going on over time. If can you get the costs low enough, get the technology that is the play at this particular moment because of all of that. As you know, musk said that he would expect apple to be in the business with production, cars rolling out as soon as 2020. Tesla already thought about this future. They dont think about this as cars. They think about it as mobility. Sustained mobility. Do they have the edge already just because their minds are already wrapped around this concept . Or do you think that there is room for a competitor coming . It is shocking to hear elan musk concede there could be competition. There will be competition. Could apple be successful . Elan musk thinks they could be. You have about 90 million vehicles worldwide that are manufactured every single year. And thats going to grow. Its going to be over 100 million in a year or. Two april come peel off a clufrpg of that business. Not a huge clunk right away. But a chunk of that business. What concerns the automakers, not just tesla but all auto make berz apple is, a, very deep pockets. So if they need to withstand some losses or if it needs to buy something, it has the resources to do that. And, two, how disruptive will it be . To elan musks point about they waited too long to get into this business even if they get in by 2020, tesla is already out there with autopilot and other advance features. Youre going to see more of that from other other maker as well over the next couple of years. Andrew, on a day when apple is saying theyre going to raise 4 billion in a bond sale in the asia pacific region, they end the quarter with 233 billion of cash. Is that is that a big concern on your part this they do have the deep pockets . They could actually spend the money to make a car and to your point before you think that would not be a good business. Clearly they have the pockets. Do they have the expertise to enter that snashgt you take what apple is great at. Theyre really good at chafrging the way we interface with devices. Doing that in the Auto Industry is going to be difficult. Build ag supply chain, again, apple is extraordinarily good at building a supply chain. Give me the bottom line though, andrew. If you hear apple announce theyre going to build a car itself, do you downgrade the stock . Well, i i would view it very negatively, for sure. Guys, thank you. Tyler . All right. Thank you very much. Lets bring in our first guest of several who join us in this segment. Shell be joining us for the rest of the show. She is the spouse of our friend jack welch. Thank you. Were going to talk management. Were going to hit three big issues starting with big versus new or big autos preparing enough for the changing landscape provided by Companies Like uber. A couple of hr issues, new employee review guidelines from goldman and bridgewater, the way they review folks. And three seems like nobody is going public these days. What is the deal there and why . Bill jorng joins us from harvard. We have the ivy league covered here. Lets talk first, suzy, about, you know, i was at a symposium a few months ago where people said that uber and what it represents, not just to the automobile business but to the interior of cities, to how people live, how many parking lots we need. Its going to change everything. Is rest of the culture ready for the change that uber and or selfdriving cars can bring . Uber is one of the Companies Like so Many Companies now that just drupts and drupts and disrupts. But isnt that story of the economy . They make gigantic disruptions to our way of life. The business were all in is trying to figure out what is the next industry that is disrupted. Uber is looking for a world where nobody owns a car. That will change our culture in maybe the same way that having smart phones did. Paul, its not just ub are trying to eat the lunch. Tesla is coming up with new cars. There is talk that april sl going to have a car. So you have new producers and then you have the potential shift in lifestyle or maybe people just dont have a car. Cars now with service. What do auto ceos need to do right now . I think the first thing they need to do is get management house in order with most of the companies. They have an enormous amount of problem as a result of the issues that are going on with the safety units and the cars exploding, as you know. And so this comes at a really bad time for them. I think the new competition is something theyre not ready for. What this have they not done management wise that you would have them do . I think management is a problem for them and also a talent problem. The young, exciting talent that people its not going there. Its going to the new companies, the companies with the very sharp, you know, growth. And so if youre running an auto company right now, onest huge problems and you have enough of them, is that really smart engineers that you want are going elsewhere. Theyre not going to go to a company that has problems and is in detroit. It seems to me that old line autos in the United States have been focused largely on how do we get to the electric powered car . Millennials dont want cars. They want to live in the city. They dont want to live in the suburbs. It is really changing things dramatically. If can you have an uber, why have a car . Then tuesday its always been that tesla and uber will change things. I met with both elan musk and ub aers leader. They are totally redesigning systems. I remember the chief designer for one of the Largest German Companies whose name youll recognize is very dismissive. They dont know what theyre talking b i think theyre very foolish. Theyre going to change the whole landscape. You saw the chevrolet didnt burn them up with the bolt. They got a the love burdens and legacy costs right now. Older naem cannot go out now, theyll just qual an uber and theyll pick them up. Thanks. I actually would like to see a merger. [ all talking at once ] theyre conspiring here. But paul is an old friend. Paul will have to doubleteam against them. I think were making a mistake on the panel so far. A mistake about using broad brush strokes. Fiatchrysler is the ones talking in ways that are minimizing this where theyre saying we have to worry about the here and now. Forget all the future modes of transportation. Very narrow, very short term view by contrast. Ford is paul, 40 of the Management Team is new and from the outside. There is incredible variety from there. People working, the most senior levels as well as from wall street and strategic roles. Its quite exciting. And mark fields built up a gian. He was talking about how they see in about five years about 40 of the vehicles will be electronic. But in terms of the self driving cars, he also talked through the mathematics and legal issues which are quite fascinating much its going to be easily mapped urban routes. So much driving actually wont happen. Ford is on top of this. I want to pivot to energy. Weve been talking a little bit about oil. But bill george, i want to start with you. You are on the board or recently were. I assume you still are on the board of exxonmobil. Is that correct . Do you think yeah, up to a year ago. Do you think the Large Energy Companies are doing enough to get ready for intensified regulation having to do with Climate Change . Clearly, theyre trying to cut the co 2 usage, trying to cut the carbon footprint. There is a lot of people that just want to get rid of fossil fuels altogether. Thats not going to happen. By 2050, renewable sources count for less than 25 of the total. The real issue is in china. I think youve seen exxon invest in Carbon Sequestration technology which could be very beneficial in a kplp called fuel cell. Theyve been dabbling at it. I know exxon doesnt feel they have the expertise in wind and solar. So new the paris accords do a lot, right . Yes, its going to affect a the love industries. Are they ready . They have a huge number of people focused on. This you wonder about the productivity of the companies because everybody is looking at compliance. The job of the leader is to put the company where the future is going. And they have to see if theyre look wrg the future is. I can push back . Is it part, jeff, weigh in here. Is part of it though, i mean, if you think that ultimate ly youe going to be using carbon production for the flrg is part of the leadership role to push back and say all this concern is important and lovely, et cetera, but the way we drive our cars is the following. Unless there is dramatic technical change which hasnt arrived yet, to say look, we really have focus on what we do as our core s there any role for push back on that . You have two billion people who have no access at all to anything other than fossil fuel, right . The world is in great need of that for years to come. I can see push back. But in the long term, i think there is interest in social change around fossil fuels. The growth curve for Energy Companies looks like this. Its pretty hard to not want to stay in that business as long as you possibly can. Weve just seen moments ago opec, you know, unable to reach any major price hikes which is good news for any industrial nations arent world. But we also have seen incredible change in the last five years. If we had this Panel Discussion five years ago, we would be wringing our hands more. The u. S. Has gone from basically zero in Oil Shale Production now to so dramatically, the fifth or sixth largest oil source. That is a huge change to your point, michelle. That is something to celebrate. But were also seeing that when i comes to the biggest use of oil is for transportation fuel, and thats where the question earlier part of this panel about electronic vehicles really matters so much. Theyre up an amazing 60 in the u. S. Over last year. Electronic vehicles means more Coal Production at this point.