some have been saying this is not what we should be doing at this time when we have deficits and other problems. they hope that this will swing in their favor and they will gain some seats. some are saying this is what is. to happen in the next few years. they hope that public opinion will swing in their favor. host: what takes effect immediately in this guest: healthcare bi healthcare bill? guest: some of these changes to insurance, but initially, the first couple of years, not the major changes. the major changes are coming in 2014. host: thanks for helping us analyze this.

coming up next, we will talk about oil drilling. >> let's meet another winner in the student camera documentary contest. we asked students about one of our country's greatest strengths or a challenge the country is facing. we are talking with the third prize haskell wenner, a senior at a magnet high school in baton rouge, louisiana. why did you decide to focus on the american free market economy for your documentary? >> one of the big reasons is i was brainstorming about what we should do this year. we were trying to think about what kind of topic -- what common strengths such as the

military or freedom of speech, what is a great strength that america has. people do not really think about the free market economy and think of it as a great thing about america. it is one of the great things about america. we decided to make that our topic. we were able to find a lot of our local small businesses that we were able to intervene. it worked out pretty much perfect from there. >> what did you learn from your interviews? >> and learned a lot about what it takes to start business. when we interviewed the business owners, we did not focus on the forms you have to fill out, but what you as a person has to go through to the a business owner.

anybody can start a business if you have the appropriate determination and drive. what one person told us was most true. not everyone can start a business. it takes an incredible amount of determination, motivation. not everybody has that. >> you also mentioned the american dream. describe that. >> since america was founded, people from other countries have been traveling here to seek a better life. the american dream is that you'll find a better life in america. with the recent recession, it has been lost a lot of ilittle . people in other countries are dealing with problems in the

economy. this video, i wanted to renew faith in the american jury -- dream and the free market economy. one person said they had a much better life here than in the middle east. >> if somebody wanted to open up a small business, what advice would you give them? >> even if you fail and no one buys your stuff and you are not making money, you have to keep trying until you succeed.

i would tell them, if you're going to try this, you have to keep going and do not give up. >> thanks. we appreciate your documentary on the free market economy. >> thank you. >> we want to congratulate you and your partner on your wind. here is a portion of this documentary. >> they have capitalize on our country's greatest strength, the free market economy. >> i think it is the only way to go in america. who gets to fail and who gets to succeed? small business has failed which is where the free market economy is most true. it is the only economic system

to imagine. you need to fall a little bit to be able to stand up. >> to watch all of this documentary and all of our videos, you can go to the student cam network. host: here is a map of the areas that president obama said would be open to exploration. put this into perspective. how big of an increase in offshore oil, exploration drilling did the president of another guest today for a few days ago? >> along the atlantic and the -- guest: along the atlantic and gulf coast. when you move to the alaska

section, it is about 24 billion and over $100 -- 100 trillion cubic feet feet. it will be a nice boost for us as well. we do not know about those resources off the atlantic. we have to figure out what might be there. back in 1985, we thought we had 9 billion barrels in the gulf of mexico. we had 45 billion. it becomes deeper and more sophisticated and we are able to bring more to the market. we think this is a positive development. we are happy to get a headstart.

host: geographically, it looks like a huge increase in area. is it doubled the space? guest: it leaves a lot off the market. the entire west coast. they have been exploring and developing since the 19th century. they have operations but off the coast as it is. they are forgoing quite a bit. it also leave a part of the east and gulf of florida. there is a lot of natural gas right there. we are not one to be able to go for some of that. we are happy for that. there is still a lot more out there. this is a great step forward.

that segment in the gulf -- congress has to go back and say -- there is a little piece beyond 125 miles that is under a moratorium until 2022. he cannot open it by himself. he has to take that 10-year limit off. that is a different segment. it is something you need to work with congress to do. host: what about the atlantic? can the president do that on his own? guest: yes.

it will take some time. they will go back and do some testing. it will take a while before we see the first pharaoh. host: how long? guest: virginia will probably be the first state to move forward. they have been very anxious to get going. we will start looking sooner than later in the western atlantic. the further you get of short -- that is another point. you are taking some of the resources off the table a third of the minimum. it gets more expensive.

we will have to see. it will not be immediate. you start getting the testing done and planning of people. it takes time. it is a positive development. thousands of new jobs and millions in revenue that we did not have. we will improve paying the deficit. it will be a win. >> this will be domestic production. how much domestic offshore production is there now? guest: about a third is produced in the gulf of mexico oil and gas. we have three or 4000 rigs. it is a big operation. we have been doing it for a very long time. we are really good at it.

according to the middle management service, 11000 of 1% are from the offshore operation. this is much better than the natural seepage from the ocean. they can do it with this technology. 17 major permit. 90 sets of regulations. there are 400 different safety devices. that have turned off valves. they can be shut off automatically. if a whole rig capsized on you, you'd have a pipe. it is hard to have bills. it is hard to have a sell-off.

it is almost impossible. host: does this lead to energy independence in the united states? guest: it does not. it gives us more energy security and other options. i think we have to look more broadly when we look at energy. not just offshore, but we also have a partner with canada. it brings more product to the market. the of the biggest provider. the middle east give us 70%. domestic we are producing about 40%. if we were able to get everything, we could add another 17%. weekend up by 30.

it is possible. they can go hundreds of miles offshore. 3 miles beneath that. it is a cruising altitude. pretty phenomenal what they can do. natural gas, even a few years ago, if we did not know we were going to have the natural gas we have -- now we have the least over a 100 years' supply. with new technology to be able to act as natural gas in the dakotas, pa., n.y.. that is opening of a whole new future for us. it is very positive. we will be much better off than before. host: what is the petroleum institute? guest: it is a trade organization.

we have been in existence since 1990. it is a -- 1919. it is a consequence of the first world onwar. and lots of ever business today is that program coming up with practices. what is the best way to do each procedure? we continue to do that all of the time. host: s take some calls, the first from new orleans. caller: good morning. i am an electrician. ships come in from the middle east. years ago, they wanted to build a natural gas platform off the

coast of louisiana. they were having a dispute whether to do and open loop or a closed loop system. can you explain the difference in that? guest: i do not know that answer. in terms of importing natural gas, a few years ago, we have much more natural gas than in the united states makes its -- both developments not as likely for as much as they were a few years ago. i am not familiar with opening close links. host: florida, independent. caller: i worked on the texaco account in my 22 years of advertising. i have some statements to make for you.

where are they going to be refined? you have to modify various coastal seaports with the same result you had in new orleans, with the destruction for hurricanes. your eastern portion on the map , you got those grants without paying any royalties. you got that for free. host: do you think that is a mistake? caller: i think it was a contrived mistake. these people have so much power. they have this little mistake written into contracts so they

pay no royalties on that. guest: i have to correct your statement about the royalties. all of the contracts that were signed, they even -- they either have a prize or barbara threshold. every contract -- borrower threshold. or price threshold. we have to follow through with those contracts. as a consequence, we have more oil in the market than we would have had before. we have the capacity in the united states, we have a lot of options. we have refineries in one area. we have been expanding our

refineries. even though we have here, we have more refining capacity. we will find about 80% or more of our product. it is mostly into ever harbors on the east coast. that is not a problem for the industry or a hindrance moving host: forwa4. -- forward. the coastal states get to share 37.5% of the royalties, the leasing, all of the money that comes in. this is a fantastic opportunity for them. a lot of money is shared with coastal areas. monday market was that, some are bringing in $22 million in revenue to the government.

there is a lot of potential moving forward for everybody. host: michigan, democrats line. caller: i am all for independent resources. however we know some much more about current geography rather than oceanography. i have a couple of short questions. wouldn't drilling on land be less invasive on the environment? guest: we are drilling on land in doing both. we have been drilling for over 150 years. many resources have been depleted. now that we have the technology to do these operations and get

to areas that we never thought we could, it is opening up a new horizon for us. the best offer is in the offshore operations. it is sophisticated technology with some any safety devices and even these rates are finding out surprising things about them. that actually talk to fish. we will be discovering more and more. we will bounce sound waves to determine where some of these are. it has become very sophisticated. that is why we are moving from land tuesday. we are going back to the land and looking at new technology there like accessing oil.

it is getting harder and more expensive. we have risen to that challenge and we continue to make that investment. host: our next call comes from indiana, republican line. caller: thank you for having me on. having a clean environment along of beaches, even though i do not desire to live in those areas, to have that place pristine is important.

we do not have oil in this country. i do not care how hard you look. the feature has already been proven. bigger wind turbines are more efficient and more cost- effective. it is proven in places like germany. guest: i think we will move to other sources of energy. we are already doing that. many natural gas companies are the biggest investors. we are starting from such a minute amount right now. according to the department of energy, it may provide 3% in the next 20 years or so. even with an increase in ethanol, it will only displace

some of the oil we need in our vehicles. until there is a breakthrough, we have an opportunity to produce more than we have been as the transition. natural gas is. to be a real part of our energy future. we are doing -- is going to be a real part of our energy future. i think our beaches are priceless. we have operations on beaches of around the world. we had thousands of re with katrina. back-to-back storms of the century. the significant things. machines on the ocean, that was it. we can go miles offshore.

we can put the brakes of sites with subsequent operations. we can do things. in a way that really respect the environment, to the point -- especially with natural gas. it is not. to be a concern to a beach. host: does mexico drill offshore? guest: absolutely. we get out to the continental shelf. i think it is internationally recognized where your shelf goes. they have leases from a variety of countries around the world. [unintelligible]

american companies are not in on that process. we really think we have some of the best and sophisticated regulatory and technology to bring to these operations. it is proven and we would love to go for it. and the majority of floridians like to see this development. host: a tear from anchorage, alaska. caller: >> in looking at the map you were just showing, the drilling is going to go ahead up on the north sea. famine areas were left untouched which is excellent. a little further down just above

bristol bay there are some key areas. not that one. anywhere down further south at up north. bring your pen down. over. further down. not in the bristol bay area. with all of the hundreds of thousands of current oil leases that the oil companies currently have, and they are represented by the consortium which is a group of his douceur is that it together like shell -- a group of producers that get together like shell, how come you're not going ahead to develop the current situation?

out of all the oil pumped out of alaska, a very small percentage is used by the united states. most of it is sold overseas. host: what do you do in anchorage? caller: i used to work on platforms. right now i work for a cruise company. guest: i think there is a lot of misunderstanding about the leases. part of it is how they are characterized. it depends on how long it will take you to develop it. you have to pay a fee on it. they did not come with a mark on the methane here is where you are one to find the resources. he may have one out of many that is bringing you the resources that you were hoping for. many of these do not pan out.

, and economically, or there is a problem moving forward. you do not know. you have a little piece on the map on the ocean. they have good ideas where this may be. once your lease may be that, you have to turn it back over to the government. no one is in violation, because that would be irresponsible to their company to do such a thing to the shareholders. they are moving forward. a reason that misunderstanding arose it that at least it is not turned active unless you are producing something. it is not counted as active. you are doing the analysis and doing all of these things. it just is not showing up in the efforts.