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EVERYBODY THOUGHT YOU WERE NUTS AND WE HAVE NOW GONE LITERALLY PAST THAT. GIDEON: I THINK THAT WILL HAPPEN ONLY IN A WORLD OF -- REFLECTING THE FACT THAT THERE'S A LOT OF OIL OUT THERE AND THAT THE MARKET IS JUST NOT IN BALANCE. TOM: IF YOU PARACHUTE INTO OPEC, WHAT WOULD BE YOUR MESSAGE? GIDEON: MESSAGE IS THE WORLD IS VERY DIFFERENT FROM WHAT THEY THOUGHT IT WAS GOING TO BE AND IT'S OUT OF BALANCE AND THIS IS GOING TO CONTINUE FOR A WHILE. IN FACT IT WOULD BE A MESSAGE TO ALL OIL EXPORTING COUNTRIES THAT YOU'VE GOT CHANGE YOUR MINDSET. TOM: IS THAT BECAUSE TECHNOLOGY HAS USURPED THE TECHNOLOGY OF -- GIDEON: YES. IT'S TRANSFORMED AND PEOPLE DISMISS FRACKING AND SHALE OIL AS A BUBBLE THAT WAS GOING TO GO AWAY BUT IT'S ALMOST DOUBLED U.S. OIL PRODUCTION SINCE 2008. THIS HAS BEEN A HUGE INFLURKS THE MARKET WAS NOT PREPARED FOR. THE U.S., IRAQ AND -- THE FACT THAT $70% AT A -- IN THE U.S. >> ECONOMIES FIND A WAY TO GET IT TOGETHER. WHO IS THE NEXT CARTEL IN OIL? GIDEON: I THINK WE ARE GOING TO SEE A LOT OF NOT ONLY HAPPENING IN THE U.S. BUT A LOT OF THESE BIG, MEGA BILLION DOLLAR PROJECTS THAT ARE GOING TO BE BUILT AND COME ONLINE HAVE BEEN POSTPONED OR CANS 8D. THAT IS GOING TO REBALANCE THE MARKET. >> SO WE ARE GOING TO HAVE A MARKET PRICE? GIDEON: A MARKET PRICE AND PERHAPS A LARGE OIL PRODUCER IN THE MIDDLE EAST WILL ONCE AGAIN START TO MANAGE ITS PRODUCTION BUT RIGHT NOW IT'S GOING FROM MARKET SHALE, THE RE-ENTRY INTO THE -- HE GOES ACROSS THE DESERT AND ENDS UP AT THE BRITISH CONSULATE AND ALLENBY AND THE REST OF THEM, THEY ARE IGNORING THEM AND DOING MACROEVENTS. WHAT ARE THE MACROEVENTS WHERE STATE DEPARTMENTS' FOREIGN POLICY IS GOING TO TELL THE OIL MARKET WHAT TO DO? IS IT RUSSIA? DANIEL: IT'S ALMOST WORSE IT'S ALMOST THE DECLINE ON OIL PRICES AND DEMANDS GOING ON ARE GOING TO HAVE GEO POLITICAL CONSEQUENCES. I DON'T THINK IT'S NOT INAPPROPRIATE TOE POINT OUT IN OF THESE STATES THAT HAVE BEEN BOLSTEREDABLY THE HIGH IRMARKETS AND ALTHOUGH NO ONE WANTS TO HAVE THINGS RAPIDLY SHIFT THE DECLINE IN OIL ULTIMATELY WILL BENEFIT THE FORCES OF LIBERALIZATION AND DEMOCRACY AND POPULAR GOVERNMENT. >> DO YOU AGREE WITH IS AS GEDEON WAS TALKING WAS HOW OUR OWN 2008 HAS SHIFTED AND THE DOMESTIC GAS AND SHALE OIL AND NOW MANY EXREANS REPORTING DISTRESS BECAUSE THESE EXPENDITURES ARE NOT HAPPENING. >> IF YOU SAY SAUDI, HE WILL SAY LAWRENCE. DANIEL: LAWRENCE SAUDI. IS THAT A MOVIE HE LIKES? WE MAY BE GOING BACK TO A REFERENCE IN WHICH IT'S -- THE CENTER OF SOIL NO LONGER IN THE GULF. TOM: AT THE END OF THE MOVIE LAWRENCE GOES MENTAL AND PUTS HIS HAND ACROSS THE MAP WHICH I PERSONALLY SAW AT THE WAR MUSEUM IN ENGLAND. EMPLOYEEO POLITICS YOU SERPS -- DANIEL: AND THEY HAVE A VIDEO YOU CAN SEE IT ON THE INTERNET WHERE WE ARE GOING TO DOO AWAY WITH THE STATE -- TOM: BUT WHAT DOES ALLENBY DO WITH ISIS? THE ANSWER IS NOTHING. OURS UP UNTIL NOW DO NOT KNOW WHAT TO DO WITH THIS NEW FORCE. DANIEL: WHAT IT REALLY WANTS TO DO IS OVERTURN STATE OF VERY SY. THAT'S A VERY BIG MAC CROWE STORY AND SOMETHING WE ARE GOING TO SEE PLAY OUT IN A VARIETY OF WAYS OVER THE NEXT FEW DECADES. >> FOR GET NORWAY. WHAT OF THE NON-NORWAY STATES HAS DONE THE BEST SAT ADAPTING TO THE NEW PRICE OF SNOIL DANIEL: I THINK EVERYBODY IS IN THE STATES AND RAISING THEIR PRICE LEVEL. LOOKS LIKE METROPLEX WAS GOING TO DO IT BY -- WHILE NORWAY HAS ADJUSTED WELL. MALAYSIA WAS ON THAT LIST BUT THEY ARE NOW HAVING CONTROVERSIES. >> AMAZING HOW MANY COUNTRIES WE THOUGHT WERE DOING THE BEST AT DIVERSIFYING. DANIEL: MEXICO HAS DONE A VERY GOOD JOB OF THAT. TOM: TO OUR FOREIGN AFFAIRS MAGAZINE DOMESTIC PRODUCTS, DANIEL YERGIN WHAT WOULD BE YOUR -- FOR ECONOMIC POLICY WITH THE INEQUALITIES WE HAVE WHICH ON EDWARDS IDEA OF TWO AMERICAS, WHAT'S YOUR PRESCRIPTION TO HEAL A NATION? >> I THINK WE HAVE TO FREE UP THE ECONOMY SO IT'S NOT SO BURDENED BY PRESSURES FROM DIFFERENT REGULATIONS. IT'S A MUCH MORE COMPLIANT ECONOMY THAN IT WAS YEARS AGO AND YOU PAY A PRICE IN TERMS OF ECONOMIC GROWTH. >> BUT WHAT DOES THAT MEAN? WHAT REGULATIONS ARE WE WILLING TO GET RID OF? DANIEL: WELL, I THINK THAT'S A LONG LIST BUT IF YOU TALK TO A BOARD OF A COMPANY THEY SAY THEY JUST DO COMPLIANCE ANYMORE. THAT THIS SORT OF REGULATORY -- WHAT'S THE SFLUTION ADD MORE PENALTIES. >> YOU CAN PUT BOTH SIDES OF THE AISLE ON IT AND TAX REFORM, INFRASTRUCTURE INVESTMENT, THERE'S A ROLE FOR A LEANER BUT MORE CONSTRUCTIVE GOVERNMENT IN A WAY THAT I THINK WE ARE NOT REALLY ACTUALLY SEEING. GIDEON: THE RIGHT WANTS TO GET RID OF IT ENTIRELY AND THE LEFT WANTS TO CLAMP DOWN HARD. GIDEON: I'VE NEVER HEARD AN ADEQUATE DEFENSE FROM THE LEFT OF WHAT REGULATION SHOULD BE AND HOW WE SHOULD APPROACH IT. GIDEON: THERE ARE VARIOUS WAYS TO STRIDE PUBLIC GOODS AND IN RETROSPECT THERE SHOULD BE SHOULD HAVE BEEN MORE. TOM: THANK YOU SO MUCH FOR COMING AND WHAT A WONDERFUL PRIVILEGE TO HAVE BOTH OF YOU. GIDEON ROSE AND DANIEL YERGIN WITH YOU. BRANDON, LET'S MOVE FORWARD TO AN INCREDIBLY BUSY WEEK. WE HAVE THE FED MEETING AT 2:00 P.M. AND TOMORROW FORGETTING ABOUT THE RAY DEL I DON'T KNOW