a vote on this deal that she has hammered out with the european union is likely to happen next week thank you very good mass in london. you're watching news from the lead coming up next doc film with a look at hell blotching technology could up and back banking don't forget you can get all as grand as arrives in limits to join your regular jane on her journey back to freedom to move in our interactive documentary a little story in a minute and returns home to monte w. don't come to tanks. there was a time when the automobile is a symbol of freedom the carefree days when a full tank of gas could be had for a paycheck but then came the first oil crisis when the price of crude oil sort.

of black and gold for oil producing countries it became a political weapon and a potent tool and for blackmail and threats. to. our dependence on oil cost us dealing the day when the world's oil reserves will run dry and now appears with the insight that this was just the start. the oil crisis did not foresee the events that opened the door to the exploitation of a new resource shale oil and i'm president to do in propelled the united states into the ranks of the world's largest oil producer as. it. consume has benefited from cheaper prices this time

it was the oil producing countries that bore the brunt of the price of oil collapsed between june twenty fourth chain and general. twenty sixteen the price of a barrel of crude declined by seventy percent. believe. this three major producers the united states russia and saudi arabia continue to five for power and control shifting strategies and alliances helped turn the global economic and geopolitical board up on its head. at the same time a global transition to renewable energy is underway oil is still king but is its room now drawing to a close. here

in the heart of paris the kepler company keeps a sharp eye on the global oil economy. so you know. alexandra and lawyer is an oil market analyst. have to release numbers showing saudi arabia's exports are rising a bit in venezuela still falling. about one hundred thousand barrels a month so i'd say that's having an impact right now. in september twenty twelve early in his career and lawyer published a study that predicted a major drop in the price of oil many experts disagree with their new solution put in twenty top the price of oil was one hundred dollars a barrel there on forty could only go up to two hundred dollars about who's on when i said all the prices will collapse they thought i was crazy to be a q could you be taller and you should offer to smoke or is your problem. in

january twenty fourth change until years predictions began making headlines. we're facing a technological revolution that could change the world as we know it today. black gold a recurring theme in the modern american dream the country's oil taps seemed endless and oil exports boom. the industrial revolution helped make the united states a world power but to maintain a standing new sources of oil would need to be found.

in february nine hundred forty five the americans and the saudis meet on board the u.s.s. quincy to discuss oil. as a u a factor security. cicle socrates or there was a bilateral security pact which is what the saudis called it. they said to the americans loserville we have an ocean of oil and will assure that you have a secure supply news of it in return we ask you to ensure our security coups issue you know to security. where's it alone why banning it brings together all of. the friendship would soon prove to be a rocky one in nine hundred sixty the oil exports of the middle east joined with venezuela to form a cartel that would defend their interests and stabilize prices. from that point on

the organization of petroleum exporting countries opec would be a powerful force. sometime you go look it up on. some of the random magilla get. worried about its own oil supply the united states halted its exports. the carefree years when a tank of fuel costs next to nothing had ended well had become a political weapon. over

this one of the ninety's we've forgotten that oil crisis people were euphoric. they thought everything would be fine that we had the geopolitical situation under control and that we would retain a firm grip on the middle east and we tease about the myth later we realized that wasn't the case but at the time that's what people believed book received. the terror attack on september eleventh two thousand and one was a profound shock to the u.s. government and its people. fifteen of the nineteen hijackers was saudi nationals. after september eleventh we saw the close relationship between saudi arabia and the united states began to disintegrate somewhat. but the u.s. was very dependent on oil imports from the middle east including saudi arabia. we

began to see american companies such as exxon mobil chevron and texaco shift from south. arabia to africa which at the time was still relatively untapped. they focused on angola nigeria and the other countries along the gulf of guinea a massive wall over allowed me to be there was doing that. in the wake of nine eleven the u.s. began to pursue a new oil supply strategy in africa was just the beginning was. that . saddam hussein and his sons must leave iraq within forty eight hours iraq held nearly ten percent of the world's oil reserves like the u.s. had taken another step in the direction of reducing its dependence on saudi oil nationals in any conflict your fate will depend on your actions. do not destroy wells

a source of wealth that belongs to the iraqi people the americans would prove to have a keen interest in iraq's oil fields the weapons of mass destruction supposedly possessed by saddam hussein were little but a pretext in two thousand and strange oil costs thirty dollars a barrel. the wounds of wall street goes into the act the big american banks had caught the scent of black gold which had become an attractive commodity on the global market. my personal trading experience is in the oil but at morgan stanley at the time on my trading floor we traded all commodities so it included agriculture metals freight shipping natural gas power all commodities.

then tire commodities market was booming and demand was fantastic for oil worldwide in china and particular in asia were growing a lot so very very positive didn't make a lot of money yet a lot of money was made and because we had new market players and so that creates more opportunity. over the next three years the price of oil more than doubled to consider this development of this banking business originated with american investment banks we need to ask are these two actually banks or are they perhaps financial institutions that engage in trading for most of the kids into goldman sachs and morgan stanley became major players. there were years when goldman sachs and over a billion dollars from commodities trading bio. the commodities. falling and sears. the banks the speculators realized that oil especially crude oil was

a fungible good. kind of substitute for money if you will. the most fungible good is money which is traded around the world next come crude oil petroleum gasoline. also bought and sold all over the world of all the dollar banks used oil as a way to engage in speculation on what. the speaker of. the financial industry had free rein they traded in future is legally binding contracts without ever seeing so much as a drop of oil. it always will if you did it with. the oil price is directly related to speculation it has nothing to do with the actual product anymore. and that's when the time when the crude oil is extracted and when it arrives at the refinery it's price will have tripled. about thirty

intermediaries will have all taken their cut it's completely crazy for me as a poor industrialist this is the key point fortunes have been made without any product behind it simply by means of training wheels of poetry is some promoted typically. the rise in oil prices was not only due to speculation global demand from the merging of threshold countries and from china was also a driving force. it was very exciting because it was a new world and asia was developing so much that was. just very exciting that the entire world was growing it was wonderful. in two thousand and eight the price of oil hitting a new record. that when the oil price even went above one hundred dollars it was crazy hey it was so exciting as you know it when nothing and then it went straight down again and then it went higher again. so it was very exciting but still we had

buyers so so long as someone wants to buy the oil it's ok. meanwhile american engineers and entrepreneurs were hatching a new plan to exploit the immense oil and gas reserves in shale and other rock formations while conventional oil deposits are for the most part easily accessible shale oil is trapped in rock so dense that it must be fraction to extract it the process is expensive but at a price of over one hundred dollars a barrel it becomes profitable. and. the start of shale extraction is extraction from unconventional reserves in the u.s. sensed an opportunity to work live is unique you merely years it's the us was an oil exporter in the late hours and became an importer and signed agreements with

the gulf countries some of hundred here but now they thought maybe we can escape the clutches of those bothersome countries in the middle east to suit the more you know your dog in the mail. the pami in basin in the heart of texas contains an immense oil reserve estimated at some thirty five billion barrels the first oil rigs went up here in the early one nine hundred twenty s. in the city of midland the childhood home of george w. bush oil is king. the development of the technology fourth crack in the bill is a get it out that the permian basin was fabia ready if for any other reasons are

like say the eagle ford shale there was no it's not a new bit development and barnett shale but the shale play here you have so many advance individual as for geology is an engineering groups they were already there could well rated sort of sort of play right here we have in some areas over twenty different pace that are stacked on top of one another this resource here is enormous you think of the size of the permian basin it's it's it's meger in the state of alabama that's how big it is. and xander and lawyer came in twenty fourteen the shale oil revolution was at its peak in. q. two since they all. said about it about it was in full swing. during the first half of the united

prices and one hundred dollars a barrel drilling rigs were everywhere. everyone was euphoric there was a real estate boom that is it was it was a true oil rush with it what it is structurally speaking shale oil extraction is a completely new and different industries the oldest was just five million dollars you can start extracting oil within three to six months or reserves elsewhere in the world it takes several hundred million dollars and a much longer time between two and four years was that it was very surprising how quickly things went teeth and how little money was needed for all. this shale oil windfall and now the americans to come to school imports as a result global demand stalled. there was a glass on the market for one hundred million barrels of oil with no buyout.

accidents at those elevated it will show that fourteen oil crisis wasn't triggered by the americans it was triggered by the saudis it had a political dimension the u.s. had long been an ally of the saudi monarchy. yet. they had an understanding with the saudis that they would turn the tap on and off in order to regulate market forces. but the saudis had no plans to throttle production instead they continued flooding the market hoping to push prices down at under seventy dollars a barrel which they assumed the american fracking industry would fall to boil went into frame. made all of.

the high stakes game of poker began in the first round saudi arabia urged its opec partners the all powerful cartel of oil producing countries to maintain their production though all prices were crucial to their strategy. to the old issues here in the summer of two thousand and fourteen the saudis decided to send oil prices plummeting to use high costs to push wreckers and other producers out of the market. we were surprised and thought issues cousy maybe they know the shale industry is on or about it. she stopped to q so really hard. after a five hour negotiation opec conceded the saudi position they agree to flood the

market and drown out the american produces oil prices continue to fall and. russia the world's second largest oil exporter stood back and watched. the country is not a member of opec and it had a somewhat different take on the american shall revolution. yarmulkes goes to the technology that permitted her to valid meant to have shale oil and gas extraction was developed in the schlumberger bar a tree located in the city of najaf a c.b.s. . cut on the development of this technology took place on the russian territory. border it your companion to let us go do we didn't think fracking would be implemented on such a large scale ship that. ensued but it didn't surprise us because the united states and canada have significant hydrocarbon versus. certain

other was said here. unlike the united states russia doesn't extract its shale oil but even though russia was not surprised by the us fracking revolution moscow did not anticipate the collapse of oil prices. virtually shooting huge little school in twenty fourteen for all the russian officials and the oil and gas analysts believe the prices would not fall below eighty dollars a barrel. with two thousand years of really didn't think the saudis would risk that since it would make it difficult to maintain a balanced budget the more looks a bit was all it sold of career or even the russian president said that the world economy would collapse if prices dipped below the eighty dollars mark foursomes dollar for the word profit over the coming. but the price kept dropping.

as the holiday season approached moscow grew worried that the plummeting price of oil could send the country into a deep recession. the downward plunge continued. i the major players in the us fracking industry working on a strategy to co-opt the saudi gamble with no end in sight to the drop in prices who would front first. levy your last shot but although shock. the decision unleashed i shockwave i committed had an almost immediate impact on the shale industry the foreseeable to the years there were massive layoffs in the united states everyone cutting costs cool the price here rock bottom at twenty six dollars

a barrel. bringing me. this there are set up for twenty six dollars was in a serious crisis some major factors continue to reserve rebalance the rest coming up us to flush out the financial resources to withstand a slower crisis which they figured would last only a few more weeks or months is a dog and they were right he also said that. i don't think anybody was asked to and i can do in the time actually you know working ourselves back up and everybody was deal watching the price of the all going all night watching it pretty close and i forget what the exact price was. her. job. every oil producing country was affected by the crisis but norway had an advantage. western europe's largest oil

producer was observing the poker game from a safe distance and preparing to defeat china. no god ordered stored in tact for many years much of norway's revenue came from oil and gas exports to countries in the region. then before the crisis hit our government had already decided to diversify the norwegian economy. we needed a broader basis which would make us stronger at concentrating all our growth in one single source of revenue would make us too vulnerable what it would be on. the plummeting price of oil also had an impact on public perception. of formal mortar saw. rock fall in a certain sense it had a positive effect at least here in norway although it helped us move forward in the

discussion about climate change cisco and the oil companies grow a bit more open to alternative solutions i'll get a similar. or a more and more citizens and politicians realized that perhaps we shouldn't believe what the oil companies were say every resource is finite even if they try to launch all these crazy projects like this. that helped trigger a shift or. so the scope the needle it. boil extraction began in norway in one thousand nine hundred seventy one and ninety ninety the country established an oil fund to invest its petroleum revenues disorder and wealth fund which has more than one trillion dollars in assets helps finance social expenditures in nov twenty seventeen the fundamentalist was considering divest in from all in gas saying the country already had enough exposure to this high risk industry but so far no decisions being made.

is good the author says it all when our time in the demand has peaked and while one is worth anything anymore rich saying we don't know. or give it a compromise one might go back up but it could also go down with. a working on a strategy to prepare. for the future. in another sign of the times the norwegian oil company stock oil decided to release brand it's been renamed ecuador to signal its shift to a broad based energy company. for several years in our projections and scenarios we predicted a peak in both demands and oil production around the year twenty thirty. but this is all very uncertain and for this reason we believe that renewable energies will play a role in the future. because up to deal. with.

the norwegian company plans to invest two hundred million dollars in renewable energy by twenty twenty two ecuador develop the world's first commercial floating wind farm off the coast of scotland. the high wind farm is linked to a battery storage system. but norway has not abandoned to oil and continues to issue exploration licenses. the oil market remains mired in crisis climate change has become an increasingly important issue on the global agenda. giorgo the south i think six show. you want i think i had.

thought. since then president donald trump has announced his own energy policy i say are pursuing american energy dominance them by the. end of this year we will be totally self-sufficient we will be major x. four years of energy we will take it save about somebody we will start off by twenty three hours and then. the americans remain steadfast and withstood the price slump in. the us fracking industry had proven itself surprisingly resilient alan gilman is a leading strategist in the texas shale oil industry.

so how in the world has it as the breakeven prize for an able to drop so much during that time frame i think that it was the the magic question that no one figured out when they made the decisions to not support the price or the production of oil so i think that it's. against changed the production of shale is very strong in the united states you know starting around forty dollars a barrel and going up and it gets better every year but right now if we're forty five to fifty five dollars a barrel we're going to produce we're going to continue to produce more oil year over. the u.s. produces a still drilling for oil engaging in launch scale fracking and raking in the profits.

saudi arabia had underestimated the american fracking industry the kingdom decided to shift strategies. behind the scenes at the ministry of energy ibrahim al mohan had long sent as an advisor to saudi oil minister as i think would. be a. little. bit. better than he had in the fees and at the federal both the drop in price in twenty fourteen and t.j. and in two thousand and fifteen was the result of several factors and now was the audits and to have first was the increase in oil production outside opec mainly american shale oil. sanny second factor was a slowdown in growth and the global demand for oil sadly the one with.

an adornment to get any third of the opec countries didn't respond quickly enough we saw a drop in oil prices. they did not do what was necessary for the market to regain stability in. the entire saudi economy was affected by the collapse in oil prices for the first time in its history the kingdom faced a record budget deficit of ninety eight billion dollars. in europe fuel prices were decreasing. in saudi arabia they increased by fifty percent. and the saudi economy is now in the hands of crown prince mohammed bin cell man who wants to modernize the kingdom to be in dollars vision twenty thirty project seeks

to prepare the country first future without oil. because that was so nothing with saudi arabia is far too dependent on oil that is dangerous and the demand. for the money and the dollar but that the authorities have started to change their strategy which depended on oil revenue enough in order to diversify our economy. but without it unfortunately the reforms are not being accepted the manderson me know what it wants to turn their backs on the energy sector but that's for ten years the kingdom has been trying to prompt a shift in people's mentality which must happen for this new direction to succeed but most of the population has not reached that point yet from the shedding. when i'm out i mean yeah. i.

can come sit in a wash in it and think you know it didn't work but. you could cut it could be an hour from now but the effort continues to live as a part of vision twenty thirty the kingdom launched the neon initiative a new mega city run entirely under a new bull energy these little were doing for the duck little bird with a cut in just to. take impact on a fresh round of coca. saudi arabia had hoped to force the u.s. to capitulate to no avail now the member states urgently needed to come up with a new strategy to raise prices.

on the right like i said is it the fact that it is at the vienna amazing opec was determined to maintain its credibility. and we have really a battle there for market share. in a sense you could make the argument that opec blink first. because in some ways they might have been better. to allow prices to stay lower for longer because that really would have put a squeeze on supply and us shale and in particular as it was financial pressures became too great for them.

in what was called an historic agreement the opec countries pledged to cut production to help raise prices in nigeria and libya one exam to the cot g to underestimate countries so. they've. been the main time the u.s. had resumed its oil exports opec's production cuts allowed the u.s. to get a new market share. at the next round in vienna in twenty seventeen opec hope to woo nonmember russia further into its corner and tipped the balance against american shale oil.

the russian minister of energy alexander novak attended the meeting. until that point russia had never collaboration with opec many wondered whether they would reach a deal with the saudis russia is also an ally of iran a rival of saudi arabia in the syrian conflict the geo political chaos had reached its high point. we see on the new. the trailer it took it said the new russia has a natural alignment with opening it economically and diplomatically the committee there are very strong rivalries in the opec world just a specially between the sunni's and the shia between saudi arabia and qatar although qatar has now left opec. that's left room for someone to step in. sallisaw it was glad russia was a natural in that role. so for now they have good relations with various opec

countries including the arch enemies iran and saudi arabia. you know it's just a little like this given the conflicts in the region moscow is increasingly assuming the role of mediator. because the united states has extracted itself over a mole is it isn't it that. for the first time russia and ok have arrived at an agreement to stabilize the market and exports do a lot of this is a first to get a license to believe that we expect that these good relations between saudi arabia russia the opec and other countries will continue such as kazakhstan azerbaijan

and oman was yet will be in and of a quote what do what it also does that standard to be journal much. oil and politics have the ways gone hand in hand russia had ambitions that went well beyond the new opec plus agreement. it doesn't need to and we shouldn't exaggerate the importance of all. in a geo political sphere politicians and diplomats must cooperate with one another on other important questions to do it. with very same i don't while and gas strategies play a major role in global politics there's no doubt about that or at the that this is not pertinent as head of the presidential commission not the energy sector of russia. but the. books are icy. the oil crisis has

reconfigured the geopolitical landscape resulting in surprising new alliances in one nine hundred forty five oil brought king consulted president franklin roosevelt together this time king solomon of saudi arabia traveled to russia to meet with president clinton. in russia there are political forces that support the opec plus agreement with the government and the president leading the way but he. rice there are other forces that are categorically opposed to opec plus the us at the not especially our oil and gas companies which have an enormous production capacity we need a girl only for them so that our state is currently controlled by the president and the government so the companies can't do anything now or in the near future by them

combining. in a small. opec went into the next round but it seemed the game was drawing to a close for years earlier and lost alexander and lo yet had returned from texas and predicted an up evil in the oil market is full cost proved correct and the geo political landscape of oil was turned on its head. slumps where do i do so when needed care i mean american shale revolution has transformed the market by the end of twenty nineteen of the us will be producing nearly twelve million barrels a day the good part of this will be i to i or saudi arabia and russia. that has an impact not only on the energy sector but on the entire global economy shake alone if you know i. hope it has turned a new page the future of the oil cartel and of russia and now closely intertwined.

in the sit back more like we don't know how the world energy demand will evolve. but over the next twenty years we'll need to examine our dependence on oil to at heart regardless of what trump might say for the time over result history book leadership. since the dawn of the industrial revolution crude oil has made the world what it is today but how long will fossil fuel continue to be king. the example of norway is a good illustration of how the global energy market might be transformed in the face of climate change.

that's certainly. no way my two a man and major oil and gas supplier us we want to meet the two degree celsius coal or toward others we instituted important interventions to reduce c o two emissions remotely and that arc strachan on the norwegian continental shelf is quite environmentally friendly dog i don't believe any other country can match us here because in a one on their land some of us. live it at first or so we're slowly beginning to grasp that we have too much fossil fuel not so little. that is a challenge because it means that humanity will have to set a limit seriously that lends this is the great challenge of our time the biggest thing is. what it stored we must leave valuable resources that we would like to exploit which have brought us a great deal of affluence where they are so that we can protect our climate and the

environment and the lives of future generations. the titans of oil have begun a new ground under the watchful eye of a new play out china is now the world's largest oil investor and has become a renewable energy pioneer. because of being shuffled for the next round of.

eco africa. maybe years on cost of water sustainable future. of integrities to business travels e-vite said running on solar energy it's a promising concept the bikes are affordable and fun to ride and even use five ranges for the truck. in thirty minutes on d w. careering to me. not everyone who loves books has to go in saying. look t w literature list

a hundred german plus creeds. tough. mission driven vision. to. really know their stuff. like groups with because boning stiffening. their card in checked with musicians from around the world. every week on t.w. . place. this is deja vu news of life from girl led thailand's pro-military party takes the

lead in a much anticipated election. polk county is still underway but partial results give the edge to the party supporting them healing military regime critics accuse the military of having stacked the political deck in its favor from line bangkok for analysis also coming up. after terrifying hours and see the cruise ship that broke down off norway's coast is towed to shore hundreds of a.