quorum call:

the presiding officer: the senior senator from new york.

mr. siewrm: i ask unanimous consent the quorum be dispensed with. the presiding officer: without objection. mr. schumer: i ask unanimous consent the senate proceed to a period of morning business with senators permitted to speak for up to ten minutes each. the presiding officer: without objection. mr. schumer: mr. president, i understand that h.j. res. 80 has been received from the house and is at the desk. the presiding officer: the clerk will read the title of the resolution for the first time. the clerk: h.j. res. 80, making continuing appropriatio approprr the bureau of indian affairs, the bureau of indian education and the indian health service for fiscal year 2014 and for other purposes. mr. schumer: i would ask for its second reading and object to my own request. the presiding officer: objection having been heard, the resolution will be read for a second time on the next legislative day. mr. schumer: mr. president, i ask unanimous consent that when the senate completes its business today, it adjourn until 12:00 noon on wednesday, october 16, 2013.

that following the prayerpledged pledge, the morning hour be deemed expired, the journal of proceedings be approved to date and the time for the two leaders be reserved for their use later in the day and that following any leader remarks, senators be permitted to speak for up to ten minutes each. the presiding officer: without objection. mr. schumer: if there's no further business to come before the senate, i ask that it adjourn under the previous order. the presiding officer: the senate stands adjourned until 12:00 noon tomorrow.

chris christie faces barbara boner. on the next "washington

journal", opening the government and avoiding the default wanted expires on thursday. our guest is democratic congressman tim ryan of ohio. to look at how wall street is reacting to the default, we will talk to cnbc. "washington journal" is live on c-span every day at 7:00 a.m. eastern. >> wednesday a hearing on national park closures as a result of government shutdown. some states are taking on the cost of reopening their local parks. the house national resources and oversight and government affairs committee are holding a joint hearing to review the closures. see a live starting at 9:30 a.m. eastern time on c-span3.

♪ ♪ >> we want to know how the government shutdown is affecting you. >> make your short video message about the shutdown and uploaded at tout.com/c-span. >> william swinson was honored for his actions while serving in afghanistan. the medal of honor is the highest awarded for personal acts of valor above and beyond the call of duty. from the white house, this is 20 minutes. >> he has been a helper in times past. continuing to be a help these days, more than two centuries we have been blessed in this nation for the dedicated and selfless soldiers in uniform. we are honoring captain will

swinson for his actions during the battle and we honor the sacred trust that he and his team provided that day. we thank you for the measure of devotion given that they. the medal of honor is draped around him as hope and peace rest upon each of us. captain swinson's example in the spirit of sacrifice has been steadfast and renewing our commitment to uphold the right to oppose the wrong and continue to work this job it has begun so long ago as we pray your holy name, amen. >> good afternoon, everyone, please have a seat. [inaudible conversations] on behalf of michelle and myself, welcome to the white house. last month, the united states

army released a remarkable piece of video and it's from the combat helmet cameras of a medevac helicopter crew in afghanistan. it is shaky and grading and it takes us to the front lines that our troops face every single day. it is useful to remember that there is a lot of our troops in afghanistan in harms way. in that video, as the helicopter touches down near a remote village, you see a cloud of dust. there is an american soldier. he is standing in the open and he is standing watch over a severely wounded soldier and he helps to place things inside and then admits to the deafening

wind and more of the helicopter blades and he does something unexpected. he leans in and kisses the wounded soldier on the head, a simple act of compassion and loyalty to a brother in arms. as the door closes and the helicopter takes off, he goes back the way he came, back into the heat of battle. in our nations history we have presented our highest military decoration, the medal of honor, nearly 3500 times for actions above and beyond the call of duty. that this might be the first time that we can actually bear witness to a small fraction of those actions for ourselves. today we honor the american in that video, the soldier who went back in, captain william swanson. not far away that day was corporal dakota meyer tooley presented the medal of honor two years ago and today is only the second time in nearly half a

century that the medal of honor has been awarded to two survivors of the same battle. dakota is not here today but i wanted to welcome the soldiers and marines who fought alongside both of the men and the families of those who gave their lives that day. i would like to welcome all of our distinguished guests, including members of the medal of honor society whose ranks today grow by one more, most of all i want to welcome williams wonderful parents and his girlfriend, kelsey. i had a chance to visit with them, both carl and julie are former college professors and he grew up surrounded by education. i am told that even when he was little, his mom was always a stickler for grammar and always made him say to whom instead of

two who. so i will be very careful today. i just had a chance to spend some time with them and i have to say that will is a very low-key guy and his idea of a good time is not a big ceremony like this but he would rather be a rabbit trail, surrounded by cedar trees instead of cameras. but i think that our nation needs the ceremony today. americans like william remind us of what our country can be at its very best. nations that meet our obligations to one another not just when it's easy but when it is hard. maybe even especially when it is hard. william, you are an example to everyone in the city and to our country of the professionalism and patriotism that we should strive for. whether we wear a uniform or

not. not just on particular occasions but all of the time. for those of you who are not familiar with the story of the battle that led him to be here today, i would like to take you back to the september morning four years ago that is around sunrise. a column of afghan soldiers winding their way up the trail towards a village to meet with elders and just as the first soldier reaches the outskirts of the village, all heck breaks loose. almost instantly for americans, three marines and one navy at the front are surrounded. the soldiers in the center of the column are pinned down and rocket propelled grenades, mortar, machine gun fire, all this is pouring in from three sides. as he returns the fire, will cause for their support and he calls for air support. then he learns that his sergeant

has been shot in the neck. so he breaks across 50 meters of open space, bullets biting all around, lying on his back he presses a bandage to kenneth's wounds with one hand and he calls for a medevac to try to keep his body calm. by this time the enemy has got even closer, 20 or 30 meters away. over the radio they are demanding the americans to surrender. so he stops treating kenneth long enough to respond by lobbying the grenade and finally after more than an hour and a half of fighting, air support arrives and he directs them to nearby targets and it's time to move so he exposes himself again to help carry kenneth the length of more than two football fields down steep terraces to the helicopter. then in that moment he leans in to say goodbye. more americans and afghans are still out there. so he does something incredible and he jumps behind the wheel of

a ford ranger pickup truck and a marine gets in the passenger seat and they drive that truck as the vehicle designed for the highway and twice they pick up injured afghan soldiers bullets pass them slamming into the pickup truck and they bring them back twice and when he gives out they grabbed a humvee and the marine by his side has an idea how they survived but by that time it didn't matter, we were not going to leave any soldiers behind. finally helicopter responds to that after they were trapped in the open ambush. he gets in another humvee that includes dakota meyer and together they drive up through the valley and exposed once more. and when they reach the village they got even more bullets and fire. and they reach those americans lying where they fell. they carry them out one by one.

they bring their fallen brothers home. the scripture tells us the greatest among you should be your servants. captain william swanson was a leader and the like all great leaders, he was also a servant to the men he commanded them to do more than one dozen afghans and americans whose lives that he has saved and to the families of those who gave their last full measure of devotion on a faraway field is one of his soldiers said that he did something that nobody else would ever do and he did it for these guys and everyone on the ground to get them out. that is why after i called him to tell him that he would receive this medal, one of the first things he did is invite those who fought alongside him and i would love those who fought alongside him, we stand and be recognized. [applause]

[applause] [applause] [applause] [applause] [applause] [applause] thank you. he also reached out to the families of the four americans who gave their lives that day. to them he wrote, and i am quoting will, we have never met and we have never spoken. i would like to believe that i know something about each of the through the actions of your loved ones on that day. they were part of a team and you are now part of that team. and so i would ask the families

of lieutenant michael johnson and edwin johnson and aaron kenefick and james layton as well as the family of kenneth westbrook to please stand. [applause] [applause] [applause] [applause] [applause] kenneth was a soldier that will deliver to the safety and after he was out, he started rehab and spend time with his wife who joins us here today.

she remembers the first time she spoke to will when he called from afghanistan and soon after that phone call kenneth tucker a turn for the worst pieces succumbed to complications from his treatment. but i think it's fair to say that charlene will always be grateful for the final days that she was able to spend with her husband. even now, a month rarely goes by when will does not call or text her, checking in with her and with the three boys. that is the kind of man that he is. you don't have to ask them for help, he just knows when to be there for you. so he was there for his wife and he was there for the families. as a nation, we thank god for patriots like him but they are therefore thought. will, god bless you and all of the men you have fought alongside. everything you have done for us.

god bless all of our men and women in uniform and god bless the united states of america. with akamai would like the military to read the citation, please. [inaudible conversations] >> the president by the act of congress marks by 1863, the medal of honor is awarded to captain william dee swinson, united states army. for conspicuous gallantry at the risk of his life above and beyond the call of duty, distinguishing himself by the risk of his life above and beyond the call of duty while serving as an adviser to the afghan national border police and task force phoenix and command afghanistan in support of the first battalion of the

street regimen third brigade combat team, 10th mountain division during combat operations and an armed enemy in afghanistan on september 8, 2009. on that morning, more than 60 well armed and well positioned fighters ambushed his combat team as it moved to the village for a meeting with village elders. as they unleashed rocket propelled grenades and machine-gun fire, captain swinson returned fire to the response of the afghan border police while calling artillery fire and aviation support. after they framed coalition forces, he repeatedly called for smoke to cover the withdrawal of the elements. stranded on three sides with active fire, he coordinated indirect fire support and medical evacuation support to allow for the evacuation of the wounded. he ignored surrender and

uncovered medical aid to wounded fellow soldiers and stop administering a to throw grenade at forces with air evacuation. with complete disregard for his own safety, the captain unhesitatingly let a team into the kill zone, exposing himself to enemy fire on at least two occasions to recover and search for four comrades. after using the aviation support for combat, it became clear that this was required due to heavy enemy fire on helicopter zones. he returned another time in a humvee and he voluntarily exited the vehicle exposing himself to enemy fire to locate and recover three marines and one navy corpsman. his leadership and resistance against the enemy during six hours of continuous fighting

effectively disrupted the enemy. his extraordinary heroism and selflessness of above and beyond the call of duty are in keeping with the highest traditions of military service and reflect great credit upon himself and the task force phoenix, first battalion, 32nd infantry regiment, third brigade combat team, 10th mountain division and the united states army. [inaudible conversations] [inaudible conversations] [inaudible conversations] [applause] [applause]

[applause] [applause] [applause] >> let us pray. we ask your blessing to rest upon us this day and we go forth in peace inspired by the actions of courageous and good people and we follow the example set by

captain swinson and his team. the cause for which we have given that confronts us and strength to live through troubled times, let it fill us with grace equal to every need and grant us the wisdom and the will to do justice to love mercy and to walk humbly as we ask in prayer and holy name, amen. >> let me say once again, not only to will, but the men and women in uniform who have served us with such incredible courage and professionalism that america is so grateful for you. to the families of those that we have lost and those we will never forget. will, you are a remarkable role model for all of us and we are so grateful for your service.

we will have a reception after the semester that the food is pretty good around here. so i hope you have a chance to stay and those of you, please say thank you to will personally. i will be exiting with him and michelle first and we will take a couple of pictures. enjoy yourselves this afternoon. god bless america. >> coming up on c-span2, a forum on u.s. energy and defense policy and the debate between the candidates for new jersey governor and republican governor chris christie faces democratic challenger barbara verano. >> wednesday, he hearing on national park closures as a result of the government shut down as some states take on the cost of reopening their local parks. the house national resources and oversight and government affairs committees are holding a joint

hearing to review the closures. see alive at 9:30 a.m. eastern on c-span3. >> the group campaign to fix the debt is pushing for a longer-term agreement. you can see alive it live at 2:00 p.m. eastern on our companion network entry. ♪ >> we want to know how the government shutdown is affecting you. please send us your touts. >> maker video message and upload it at tout.com/c-span. see what others are touting about two tuesday the u.s. energy security council hosted an energy council on foreign policy foreign-policy and security. this event includes a description by former nightline

anchor ted koppel and this is 40 minutes. >> 20 years after this interview, someone else invaded kuwait in the wheel wells did explode, but it was not the united states of america. good morning, ladies and gentlemen. my name is carl looked, and i am part of the energy council. we recognize members of the council and we will do so later and i would like to welcome you all to this program and we commemorate today the 40th anniversary of the oil embargo with the launch of a new report by the council, suggesting solutions to the problem that we have been dealing with for the past -- almost century.

four years ago this week a group of oil-producing countries attacked an american way of life with 5 million barrels from the oil market. within weeks, the price of oil quadrupled and it was sent into a tailspin. most americans, the embargo is a distant episode remembereremembere d mostly by the notorious gas lines and in retrospect, it may be one of the most seminal events of the 20th century. think about how many features of our current energy system were born after the embargo. international energy agency and the department of energy and the strategic petroleum reserve in the standards and the trans- alaska pipeline system. one very important outcome is the coupling of oil from

electricity. until 1973, it was generated from oil and when president carter urged them to turn down their heating, he was right. and this includes increased use of natural gas to eliminate the use of oil in our generation. only 1% is generated from oil enemies no longer saving whales and unless we all drive electric vehicles, solar and wind and nuclear power will have nothing to do with her oil situation. these are all positive developments and this is the key topic for today's discussion. shaken to the core by the lifeline of the american economy, americans talk about

energy independence and the goal of eliminating this from the middle east became a national obsession. president after president promised that if we learn to import less oil we would pay less at the pump. the only difference between republicans and democrats was the republicans called for increased oil production and democrats called for reducing demand through efficiency and conservation. well, we have done both. today we are drilling and record levels and our vehicles are more efficient than ever. as a result, our dependence has dropped from 60% in 205236% today. and some believe that the u.s. may be well on its way to become self-sufficient in oil. this is great news. contrary to the promises, none of these had any price impact of crude. over the past several years the

prices doubled this includes our trade deficit that has grown from one third to one half. in other words, we may be more self-sufficient, but we are also poor and deeper in debt. so what is wrong with our method? what is wrong is that it cannot obsession with self-sufficiency, we neglect to deal with the real threat to our economic security and that is the monopoly over the transportation sector. we diversify that with this and we have failed to do the same with our transportation sector in our cars and trucks are still made to run on nothing but petroleum fuels. that played into the hands of opec and over the past 40 years the world economy has grown by leaps and bounds and it

continues to produce today the exact number of barrels but it produced 40 years ago. 30 million barrels a day in 1973, 30 million barrels a day to day. despite the fact that they own 75% of the world's conventional crude reserves. the cartel would halt production to counter any increase emanating out of the united states and norway and other countries. in other words when we drill more, they do less. so what should we do? after 40 years of barking up the wrong tree of energy independence, it's time to re-examine the paradigm and focus on what matters, producing the strategic importance to what we call fuel competition. this is a reporter that we are launching today and what it

proposes. it is unique in two ways. first, it is zero cost. in an era of government shutdown, fiscal feuds and that feeling negotiations. there is no more local proposals calling for billions of dollars in government programs. we do not have the money right now. the plan that we are offering today proposes no subsidies or tax breaks for giveaways and it requires no public sacrifice. it simply aims to remove barriers to fuel competition. second our report recognizes the role of china in being part of the solution. china is already the largest auto market and last week it became the world's largest oil importer. no significant progress can be

made without china's participation, and i am happy that we have important guests from china with us today. we will discuss the report and its accommodations in the second half of our program. the first, in commemoration of the events of 1973, we open the program with the conversation of two men who lived through the era and have kindly agreed to be with us today and share the memories. james schlesinger was the secretary of defense and later became our first energy secretary and he held many other positions, including director of central intelligence and chairman of the energy commission. i will never forget his profound observations and when it comes to energy, america has only two modes, complacency and panic. it seems that with the current oil boom, america is experiencing complacency and

that also will go away. ted koppel is known to all of us as the legendary inker of nightline and he was an abc correspondent as we saw in 1973. when you look at these pictures, what kind of memories they evoke in you, i do not know, but all of us as children have watched this episode unfolding. [laughter] >> and we thank you for adding clarity to some very confusing and at times even scary episodes in the history of this country. without further ado, i would like to open the discussion between doctor slusher and ted koppel. thank you very much.

[applause] >> let me take you back to 1972 for a minute. that, of course, was the year that richard nixon went to china. and i found myself one morning. i was on that trip is one of the correspondents covering it and i found myself one morning in a minivan in beijing sitting next to james michener and in the course of our conversation he told me about an event one evening and he received a phone call from someone who said congratulations, sir, our group has selected you to be this year's recipient of the greatest living american author and we would like you to come and accept this award and he excused

himself and consulted his calendar is that i am terribly sorry, but i already have a pre-existing commitment. and there was a long cause on the other end of the phone and he said, well, can you think of another greatest living american author? [laughter] and he said, well, sure, what about mailer or blog or not and we already tried them and they could make it either. [laughter] so doctor schlesinger, i don't know who they had asked to have this conversation with you first. but i am delighted to be here with you today. i think it might be instructive

and i do see a lot of old and familiar faces and also some elegant young ones. and they may not remember as clearly as you an idea what was going on in 1973. it was a very different world. would you like to take us on a quick tour of the result? >> first of all, welcome and don't drink too much soda. [laughter] and this is the second amendment for the first amendment room? [laughter] >> we will find out if they don't like what you have to say. >> in 1973, we were deeply

concerned about the soviet union's potential penetration into the middle east. they were at that time encouraging the arab states to move against israel and they were providing arms those most notably to those most subsequently. >> can you hear him all right? can you hear him in the back? >> okay, and on october the sixth, egypt and syria attacked israel. and i should point out that we had plenty of warnings. we had been told by the king that something was going to happen unless the we took action with something in regard to controlling the israelis and we

had tactical warnings with the nsa, which you can read about in the newspapers today, picked up a good deal of communications. in 1973 and warned that something was going to break up in the middle east. that was disregarded at the time. and the information went to the central intelligence agency at that time. the israeli account was under the control of james angleton, the legendary james angleton, who took the view that whatever the israelis tell us is going to transpire in the israelis took the views that they wouldn't

dare. the israelis view the world until such time as the arab states could establish a supremacy that they were not going to attack. what they've forgotten what they had conveyed to us was that they had been equipped with missiles that neutralize a large extent of the air superiority and they had anti-attack weapons to reduce the advantages that the israelis had with regard to tanks and as a consequence, the israelis, who were on the outbreak of war said that once we mobilize there, they are in real trouble. and egypt established a

beachhead east of the canal over part of sinai. the syrians moved south and the most significant thing was what we had been assured by the israelis that we would take care of them and by the second or third day they were panicking because they had run out of supplies. and on friday the 12th of october, i was authorized to start resupplying israel and we had already begun to move supplies from our western depots and they were at the dover air force base in on the night of the 12 i received authorization to move those to israel ahead.

but we had to do it surreptitiously. the military ashton-tate caiman and we indicated that we would fly into israel, but it would be under cover of darkness and israelis would have to undercover unload these undercover and the planes would have to be out of israel by the morning light. >> let me move you a couple of days. >> let me finish my first. >> allright. >> as things turned out, there were crosswinds and as a result the planes began to back up at dover air force base. they took off the early planes

and women to israel, under the cover of darkness and they became under this daylight and they claimed they had never seen anything like this. half of the population of tel aviv came to cheer them on. since it was the it american objective to be involved in the war, it is disappearing at that point has the israelis looking at the sky and saw the whites start of the u.s. air force on the aircraft. >> it actually got much worse than that because the soviets at one point were on the verge of sending in ground troops.

>> the soviets had started resupplying their clients and it took us a week before we were resupplying israel. by raising the oil price to $5.5 per barrel and cutting oil production by 5% and when i say the arabs, i'm referring to the organization of arab petroleum exporting countries. >> just as a reminder of how different things were in 1973, i know you'll take issue with your, but one of our best friends is not her best friend in the region of that time was a wrong. >> every geopolitical issue we can rely on, except on economic

issues, he was interested only in the amount of money flowing to iran ron for its export of oil. and as a result, when the nixon administration went off and the dollar began to crumble, the oil revenue disappeared and he turned into a price talk, which was not to our advantage. >> were put to the other side of the world. china in 1973 and i don't know how many people remember. but when slush and her was in the region and ended up representing the united states at the state funeral, that was a very different china. i mean, what we just heard, that china has just become the

world's largest consumer of energy. the sketching it out for us. >> i was there during the term and when i arrived, he was supposed to greet me but he died, which i thought was really inhospitable. [laughter] >> how rude. [laughter] >> the chinese didn't know what to do with our little group, so they have taken us away while they were doing their preliminaries for the funeral and then brought us back so we ram back to various parts of china to visit with them. and i was astonished, if i may say so, at the depths of

warnings on the part of the chinese people, he was a tyrant but apparently was a beloved tyrant at that time. his reputation within china has deteriorated. >> talk about the economic profile. >> at that time, they were suffering after the cultural revolution. >> it was ongoing at the time, they didn't know it, but it was. >> yes, they were suffering from the great leap forward which resulted in the deaths of tens of millions of people, which would have, one would've thought that it would have enriched his reputation with the chinese.

but he was beloved. and it wasn't until 1978 until he became introducing market forces in china and under enriching themselves at the chinese economy really began to change. in 1976 was very primitive. it was primitive in terms of the economy and there have been great improvements in terms of disease and those that are spectacular in terms of limiting the diseases that had afflicted the chinese people. >> a final look back at 1973. talk about the united states.

i remember a man by the name of jamaicans and he was the u.s. ambassador to saudi arabia. in 1973, he evoked, what is the right word? when he suggested the price of gasoline in those days was about 25 cents per gallon and jim had suggested that we raise the price to a dollar a gallon, they use the additional money for additional energy sources said that was not received with a great deal of enthusiasm at the time. talk about this at the time of the oil embargo. >> tim akins was a maverick. and he was not always appreciated in the department of

state. and this includes the saudi regime which may have led to some suspicions and it was not as it always was to protect the american society. they suspected that he was pro-saudi and trying to increase their income. the american society at that time was complacent. it was not public recognition that the united states reported this at all in 1973. even going back to the late 50s, eisenhower had imposed limitations on the amount of oil

and it was where the united states was dependent on the foreign sources of oil. as a result when the shortages began after the embargo set in, the public oil companies that presumably were there to exploit the opportunity to raise prices on the american public and enriched themselves, it took many years before the public really understood that we were dependent and increasingly dependent upon that imported oil and that is a consequence of the united states would not be in a position to disregard developments in the exporting countries.

>> put that into the context of where we are today. china of 1973, which would have barely been in oil importing country in those days. >> it has become the world's largest consumer and adding india to the picture as well. >> consumer? >> consumer. still number one. >> that is a good point. are we still number one in terms of consumption of imported oil? >> no. >> the chinese have now passed this. >> so putting that into the context of what is being produced worldwide. we have heard that the opec countries are producing 30 million barrels a day in 1973

that produces this each day today. china's consumption is vastly greater. in our consumption is high, but we are more sufficient than we were. so taking a look around the world, how are we doing? >> of a we are closer than before. ..

>> if you don't say energy independence you will not get the public response. all we hear about is energy independence at this point but also with the development of the shale oil is just beginning to achieve a greater degree of self-sufficiency and we

could probably live with that lovell of importation and we will go further. >> forgive me for interrupting. is a that a function of the rising price of oil? and that was not $100 per barrel could we afford? going back at the 1973 levels, back then the great obstacle to developing shale calcification was cost. right? only the cost has become so high. that we could afford all these others. >> guest: the stimulation of higher oil prices that ultimately led to the redemption of the oil market.

to be sure field defect has been to stimulate the production of the tendency at $30 million per day but that element that was mentioned is we have substantially reduced our dependence on oil like the power plants. >> host: that we have also been told that the percentage of the fuel used for transportation 93%? >> remains? it has grown.

>> host: what was said before? >> guest: 40 or 50%. >> host: what were reusing for transportation? >> we were for other purposes but we squeezed out these other elements that have resulted in increased use of oil with transportation. >> host: the main thrust i assume will be a discussion of how alternative energy supplies could be used in the field of transportation? you have any thoughts? >> guest: not a problem. half with long beige we

don't know how much shale oil but we have natural gas and revalues that if we have not gone to batteries as a result andover to reduce the consumption before transportation. an alternative is available. that is a day and incantation just like energy independence to use alternative fuels and id doesn't have much there.

>> host: you seem to be saying to contradictory things on one hand you say yes you do see us moving. >> guest: to the use of hydrocarbons alternative uses. what we usually hear about of course, is ethanol or new breeds or those types of waste we have legislated to come into existence but the reality remains to we don't have the technology but we can make use of the natural gas that is a hydrocarbon that we can develop batteries when it is cost-effective for the

fossil fuels to reduce our relative dependency on oil and the internal combustion engine. >> host: they used to be a line of thought when we want to keep importing the certain amount because whenever we have underground is ours, a safe, secure, it will be there and if we use that up first and we are in big trouble. was that ever valid? >> it always has some degree of validity but but the argument that was used that said don't depend entirely on foreign oil was in

thinking of america first going back to the eisenhower administration in treating the america first by being one digit percent dependent we could use some oil from abroad without risking national security at the same time use some of that in the ground but the notion to be entirely dependent on foreign oil. >> host: i was saying exactly the opposite that. >> guest: exactly but that notion we could be depended on foreign oil with america first is the strategy is a fallacious notion. >> host: where do we go from here? what do you see? are you still as sardonic

about america's political attitude that is authentic or in different? >> the beauty of the present situation is the public has decided with the price of oil going up when it falls back to the public loses interest if they do the the legislators will lose interest at the same time. so where we are today is the reverse of the situation of 73 with dependency declining and the united states is in this position that our influence of the market is becoming larger and larger

now they are dependent on the line of communications from the middle east as the world's largest fleet in controlling the communication with the united states navy and we may not pay that much attention but in beijing they take note. they feel the of vulnerabilities to a degree we have not felt in 20 years >> host: a suggested we use the u.s. ned navy to deny your friends in china of the energy? >> i would not suggest such a thing but the tidies may fear that if there was a confrontation that could be the outcome. >> host: so i think it is time to begin rounding up secession over the last 40

years what type of a grade would you give with the energy crisis? >> i would give them up to 28. [laughter] leer on the verge of a t2 but we never get there. >> we have spent lucky basically on this bonanza of shale oil that has alleviated our position but the chinese some day will develop their own shale oil for the moment they are foreclosure in that area. we have had a lot of bad news as foreign policy over

recent months we're not foldable any longer we have influence which is positive that we have to beg the opec nations to provide us with more oil as we frequently have to do with the intervening 40 years. >> host: on that we are positive grade of c please help me to thank dr. james schlesinger. [applause] >> fet very much. it seems we could agree that

we are more self-sufficient we may not be importing as much oil from the middle east but we are importing the price that when the price goes up even if we don't import so much a bit but the black stuff that has a direct impact on our economy so we need to see how we can control the price and we would like to thank you and i will give you a copy of the book that basically proposes a new way of looking at this issue is really appreciate both of you being here and we will take a 10 minute break then we will proceed in to lew

discussing the actual accommodation of the report. [applause] been. [inaudible conversations]

[inaudible conversations] >> for coming in today enjoyed as for what we believe is the launch of ids , of policy a.d. is that truly can change the pattern of the last 40 years. that does it cost anything more subsidies that is feasible truly thinks to the

wrapping of of shale gas the means to the power our transportation and sector that is 97% reliant on one fuel. one. into a competitive sector that the free market allows the competition of the available choices of electricity as an all, by a diesel, let the best one win a and open the market. we're honored today to have several members joined with the forthcoming round table co-founder with me of the council james woolsey it is to acquaint by a number of distinguished people who have served in public life with the industry of our

country john hofmeister. former president of shell oil, a norman augustine. chairman of lockheed martin, the largest aerospace company in the world, former undersecretary of the army, a director of the world economic forum also currently chairman of the commodity exchange a new addition to the council which we will welcome today. thank you for coming. professor, a colleague of nobel laureate george o. off and truth be told from the op-ed list last friday pointed out the feasibility to deploy at the pump

methanol made from shale guest that will be between $0.75 and the dollar cheaper when we drive up five years from now to by methanol, a high octane race car drivers love it and available at a competitive price within your lifetime. gordon gray former counsel to the president of united states in ambassador to the united you. and the best research institute in america, i would also like to acknowledge and express our thanks for the attendants today as senator domenici of the senate budget committee

admiral lyons, a former commander-in-chief to u.s. pacific fleet. thank you for coming. china's economic attache with us today and looking forward to cooperation as we try to shape public policy that will benefit china and the united states in the years ahead. if you have to identify the four most innovative countries in the world with regard to sensible energy policy, israel, china, brazil , yes, and the united states at the top. we appreciate all of you joining us today. we would like to turn this to around table for what are

the takeaways that we believe that we must adopt in the public policy to move this off the treadmill where nevermore we pay more and more overseas for oil with the involvement of other abilities of instability what is going on and to enable all of us as consumers to buy and sell at a competitive market and come now with a more stable economy, a better national security or jobs in a cleaner environment. i will turn it over the age you for coming.

[applause] >> 84 being here. each of the politicians and they're all trying to look at their places the conservative side they're all sizes and flavors of meat at the end of the day ever betty is focused on production but the report that we are presenting is to demolish the paradigm that energy security = production there is nothing wrong with the drilling or efficiency but there is a lot of good with reducing the trade deficit but none of that will improve the energy security because it does not take the place of oil. but i want to a tip that to

the co-founders of the u.n. security council for those that had many roles in government and as former cia director in national security adviser some of them we will only know mitt years down the line but working with them closely on the issues of this country with the strategic importance of oil they put their heart and soul into this with your life's try being a mission to improve the security. so we appreciate that very much. [applause] we will get into facts and figures as we go through the

discussion but to add a little bit of color, i know that you have sharp memories from the oil embargo and now you are backed with the issue of energy. what is your sharpest memory? >> october morning 1973 driving into work and we were holding a hearing that day and i had 15 senators waiting to show what to get everything organized when i hear of the radio that he will live fargo the saudis have cut off to try to resupply and i have stuck in a gas line for about two 1/2 hours in the long rice sat

there the matter that i got at the oil and basically i have held that view for about 40 years ian and three days. [laughter] i will explain. thomas jefferson did not draft the declaration of of kids we autarkies or give me dash that is importing as little as possible that is a very bad decision criteria for u.s. energy policy. it does not choose a job. the reason is the oil has an extremely high in elasticity but depending on it that demand is very high in to you can stop the imports of us much as you want and they

will not do any good as long as that monopoly sets there with the opec cartel nested inside of it. they will just see you drill or reduce imports and they will smile be cut back on production and raise the price. two 1/2 years ago at the beginning of the era of spring, mckee and abdullah was in a hospital for treatment. he heard about it he checked himself out and flew back to saudi arabia within hundred and $40 billion. but virtually all of that went to pay the young men not to work.

about 1995 percent of the work force does not work. he did not want them to buy it. he was right said he paid them roughly the wended its $30 billion not to right if you want to know who paid for that, look in the mirror the next time you pull into a filling station to fill up with oil products. you will not succeed to change the structure by doing anything other than breaking them monopoly.

but those three left-leaning cadency hints adams smith and friedrich hayek there was a page devoted to them in this bo was a page devoted to them in this book and they say was a page devoted to them in this book and they say it is the number-one job of government to have a healthy economy. it is first in order. you do the first then you can succeed with the other steps. but i just wanted to start off that we don't pull any punches the beacon have a reasonable oil market where price of matter and competition exist in the presence of 78 percent of this cartel holdings of

whale 78% in they are riding on a horse that is 97% oil. zero pontians there is no chance of changing that when there is something close to the end of the word -- and of the world there is no chance to succeed without breaking opec. >> if you want to breaking in a and speak to your cart over and those of you not at the table if you have the urgent a -- urgent way to

say something i will bring you into the conversation. >> one of those that we import a great deal of whale. from the persian in gulf but if you look throughout our history we have never imported more than 50 percent of our oil needs right now we are at 9%. but what we are importing from the the least as a collective is the price of whale the energy security paradox is the levels are dropping down the price of oil has steadily gone up and up because it is of fungible commodity with a couple

market consumers take it out it does not matter who we buy abroad at the end of the day every petty looks at the same price per year are the figures why opec matters. it is striking when you compare 40 years ago 1870's three at today and the number of people live on this planet and the number of cars is four times as many. gdp has drastically increase. global oil demand has increased and opec is producing the same amount today as it was then. if it was exxon, chevron corporation shell sitting on three-quarters of the reserves in and say accounted for about one-third of global production, those of you

with experience of government know who would come knocking down their door with the anti-trust actions you cannot do that with a sovereign trust energy. we're very fortunate to have here with us on the founding board said national oil company to talk about the expenditures of the post error of spring in the effort of stability has spent the phenomenal and with that output is growing that means in order to balance your budget you have a few choices either sell more oil or sell less at a

higher price. in what we are seeing with the opec is to sell fewer barrels at a higher price you had a front seat to venezuela going through the same type of decision. how does the fiscal break even in play out of venezuela? >> first of all, reindustrialize that's opec is a longer a monolithic bloc the strong side is basically as saudi arabia and the users of the middle east and they are increasing production now 60 million barrels of oil per day and especially india is important to 45 percent

of the oil from the poor countries, which traded is 25% so the middle east is very important that opec is less important because venezuela is a minor player in the global sense our production has declined to because the differences don't pay because of ideological reasons so i would dawn agree we should that have so much concerned with the opec as the cartel in the long bear but i believe now we have the multiplicity of the energy offers in the world with conventional oil on the one

side in the heavy oil from canada that event venezuela of the other side with the oil and michelle from the third place them the renewals that is slowly gaining a foothold. so we have like never before has the use of the energy sector to make it self confident there belong there dependent. venezuela is basically a big crept because of the fact they took the oil loans especially from china. >> what we see with this graph is the fiscal breakeven price to balance the budget in venezuela is

$100 per barrel but with lethe of pricing within opec that really is a function of where you are. the higher you are every and has a very high price as hockey will be an with gopac with trying to bring this up but frank you are a trailblazer. >> just one sentence first. the cost of lifting the oil of lifting glial according to the saudi king on television debut years ago is to dollars a barrel. these numbers cost to

lifting that the reasonable profit could be but this also shows paid in yen and not to work. >> trade you really has been a trailblazer for over 10 years now and in the very beginning it was hard and build the calling for the importance of reducing the strategic commodity. why? >> apart from the fact he said that was the important thing to do. [laughter] it dawned on me that it was the important thing to do. [laughter]

said it became so transparently obvious if we persist to this practice to pay those amounts through the nose to people in terms of setting the price our adversaries of this country than a midi in fact, enable the war they are involved did whenever people think of it it is the war of our time is simply insanity. if we have a choice not to persist that boost to use the top by just want to say the queue to the council for really being the pathfinder's to explain how this could work mechanically

had a cost-effective way if we simply adopt the solutions the you have identified for fuel choice specifically. >> john hofmeister president of shell oil of north america you agree deal of understanding and what we see in this picture everyone recognize the location? north dakota. that is not a big city like new york shining brightly what bc is flaring natural gas when i see that i see money going up in smoke. with your experience tell us about how companies like

exxon or shell or bp can monetize natural gas that is currently wasted how important is it to open the transportation sector to competition so this could lower the price of fuel for americans? >> let me respond in two ways. the first is all the you will not hear it from publicly held oil companies, but there is an awareness and a deep concern over the next four or five years global demand for oil particularly with china or india or the developing world it will exceed global supply by several million barrels per day in the first

instance that is the impact on price that will serve the global economy in jack but still there is the incessant to me and it is reported that china exceeded a the other previous month history. the tidies love of mobility the way the americans do and that is a huge impact on global demand so i have predicted for several years weather 2016 or '80 there will the be enough whale not because the world does not have enough but the technical difficulties to get it from new reservoirs' while the old reservoirs' a decline is over will be to the industry whether deepwater brazil, the arctic reserves east africa, or

other difficulties basins there can not be enough done to beat the global to be and in the middle of this decade. the vertu day technology revolution including the intelligence, real think the world of smart phones but the technology that has gone into the well in my opinion leaves them at the back of the race with making use of good technology whether the aerospace industry or oil and gas the race for technology is never ending. that with oil and gas industry has opened up such new reserves there is no end in sight to the expanded

availability of natural gas not only in this country the other four patients around the world. that does not have a market to adequately to mandy enough for the gas price where you could continue to grow gas supply. we have so much natural gas we don't know how much. we're always at least one year behind their reporting and their numbers are amazing if you follow its two years ago 1,200 additional cubic feet reported in the number keeps growing. with the oil companies are particularly concerned about is the price of natural gas to develop their reserves completely. the way to not increase the

price of natural gas is to make more electricity that is a low value-added contribution to export to elegy for those plants that are guest based when you apply technology such as making methanol or other types of chemical products for natural gas is a much more satisfying with the desirability of making ethanol the problem that has to be phased is what to do with the existing economic

value this is not easily written down but at the same time if those words of regulatory enablers then there is the additional opportunity for companies to invest that does not exist today because there are no enablers to turn natural gas into methanol so that has to change before they get interested but exxon solve the future when my former company invested major amounts of money facie the long-term value there long-term oriented companies that make decisions that may

not pay off for a decade's but we don't have decades which is why we have to prove much more quickly:suet to manage that crisis not because the geopolitics but simply because of supply and to be and relationship factors. >> host: just for two points that what you said i am hearing you say that as blessed as we are the real game change your is not so much north american oil production but if we do the right thing if we put natural-gas with the fields that could be made as well as others into competition with oil that is the cave and change your? >> oil is sold and dirty the kinds of uses that you have will not galway or disappear

overnight but they gave changer is katchis for the united states but the world as a whole is a further development of the use of natural gas. >> we also hear of methanol and ethanol sound alike although they are quite different. but they're both liquid fuel they both can be used in the flex fuel vehicles its $100 more to make ethanol can be made from natural gas or coal or recycled carbon dioxide so now let's jump over to our next guest we're we're very fortunate to have

here today i already gave some tidbits at your background to talk to us about recycling co2. >> is a pleasure to be here as a member of the united states energy security council is an interesting concept. initially it is a photosynthesis but it featured need to nurture but it is soviet one in a half percent efficiency. so chemistry is the way to recycle co2 so if co2 and water the inexpensive energy sources aid make hydrogen fed you mix it and you can

have it by the buckets there is a project in iceland and that the energy is used to make the hydrogen making 5 pounds per day it is steve after my colleague so life feeling is it could happen not in the immediate future because be unkind to i believe does not have the energy shortage because it will be there for the next four and a half billion years the sunshine or became from the sun or beyond you can use any of the energy sources or store it because methanol is the simple one and carbon ethanol that is

clean burning. so what i would propose is a cheap shale gas and then to make it by the buckets all of us are made by carbon. without curbing we would not be here talking to each other. >> everytime we exhale we let out a little bit of carbamide so we might as well look at it as a resource that we could monetize to convert into fuel that could solve a lot of problems. now i will turn to the economic attache to the embassy of israel a and you

made an announcement today? >> it is out of the prime minister's office i hope i am not embarrassing anyone but if you don't now, israel is taking a lot said the initiative from a government as a prospective to address the oil monopoly and substitutes had with that one of them is a $1 million prize awarded next month at our field twice summit to the person developing the most innovative approach to oil field over the last year and as a purely serb serendipitous circumstance i am sitting across from the winner that was announced today so congratulations. [applause]

we are thrilled at the award is given for the economics of we look forward to working more closely through the future. >> i am honored and sharing with my colleague it is part of my research work. thank you very much. [applause] >> justin:clarification this prize is going to be unable prize given every year to the person or persons who will demonstrate achievement of the fuel supply and find the opportunities and i know

the government did israel is a very illustrious team of judges of viding submissions for anyone around the world for the proposal for next year's prize so i am sure we could share more information about that. >> and while i have your attention that prize is just one piece of a focused effort by the government of israel to address the world's whales substitutes this is a piece we're very proud of and honored the original corecipient i would encourage city view that are able to attend next month's seriously consider it is not the israeli strategic

initiative but we view it as a global initiative to the free world and we try to do our part to make the world a better place. >> telesco to a giant country secretary general the international security forum held in beijing a collaboration of the council within the tidies largest think tank in the world and being in beijing i was very shocked to see the main streets are 12 and 60 the house laid highways brand and do as you peace but very

large chinese economy is growing very fast even with the global economic downturn. how is china's oil consumption is expected to grow even with the largest importer? >> that is a good question. [laughter] yes it was important that was sid in 1983 they were the importer of petroleum and and with that situation

but but it is so k. [inaudible] with the high-speed railway system but speaking to the population

[inaudible] with debt collaboration between usa and tied the with the electric motors and a the technology and the improvement of technology

[inaudible] we invite everybody here to attend our forum next year in 2016 and the next year. >> the deal. we are talking about domestic and international recommendations could you explain that with what we just heard? >> the number of recommendations on the international front i would

like to talk about one of them we believe too long we have been hearing about the u.s. and brazil talking more about ethanol but as you can sleep with this life here, china has made its choice vocally very aggressively with methanol fuel today it has commercial fuel of all of those provinces your there are standards in place larger than the state of california where almost every field station there are standards so it is not a legal it is within the law but very soon

there will be a standard so clearly between the grain alcohol and the wood alcohol they ask us to come up with a new idea called the abc alliance america, brazil, but china said top three fuel blending countries that of one those three you find almost one-half of the ottawa making capacity almost half of the world's cars are made within the borders of those three countries. and which you are engaged in the coordinated approach of those automakers with another 4 million cars per year but this gives one etf

leverage to dictate what type of cars would be driven a around the world. . .

>> especially the cost and the changes in infrastructure associated with us. it will be very low hanging fruit to open the door to a fuel that offers so many economic environmental and strategic benefits. i would just add that and in china, the drive for methanol fuel adoption was actually mostly environmental. there are a few that visited major cities in china. the chinese are increasingly aware of the problem and they would like to see cleaner, blue skies for a change. and we want to adopt cleaner burning fuels and methanol is one of them. i think it is a unique opportunity to bring them together in a considered effort and that is one of our primary conditions in