who was buying this paper oil? >> california pension fund, harvard endowment, lots of large institutional investors. and, by the way, other investors, hedge funds, wall street trading desks were following right behind them, putting money--sovereign wealth funds were putting money in the futures markets as well. so you had all these investors putting money in the futures markets, and that was driving the price up. >> in a five-year period, masters said the amount of money institutional investors, hedge funds, and the big wall street banks had placed in the commodities markets went from $13 billion to $300 billion. in 2008, 27 barrels of crude were being traded every day on the new york mercantile exchange for every one barrel of oil that was actually being consumed in the united states. >> we talked to the largest physical trader of crude oil, and they told us that compared to the size of the investment inflows--and, remember, this is the largest physical crude oil trader in the united states-- they say that we are

now really happening but if the idea is assuming that all that extra oil demand for oil production sorry is going to be absorbed into asia they're essentially expecting to china india middle east will grow their annual oil imports by more than a million barrels a day you know almost forever but i think that's a huge assumption to make because you know if it for example if china were to start developing its own shale oil or gas resources then it would wouldn't need that imports if we were to get any substitution towards other alternative energy cetera so i think it's a huge risk to rely on this you know never ending growth in demand for energy from china and when you think about that i mean is yeah well we it's a broad picture here but there's a lot of ifs and buts yeah and you know we're in the business of doing forecasts chris annoy and we know when you when you start pushing it out five ten fifteen twenty years there's so many are knowns that it's difficult to have confidence about a single point forecast what's going to happen with technology with electric cars what's going to happen

oil boom.bob simon reported in 2006, it may also give canada a lot more leverage in its dealings with the united states. >> most of those lumbering trucks are on their way to the gas tanks of america. a million barrels a day are now coming out of the oil sands, and oil production is expected to triple within a decade. it wouldn't replace middle eastern oil, but at that point, it will be the single largest source of foreign oil for the united states, even bigger than saudi arabia, which sends a million and a half barrels a day to america. >> when i go to washington now, they are just starting to pay attention, surprisingly. >> just starting? >> in the last couple of years. >> greg stringham works for the canadian association of petroleum producers and often lobbies for the oil sands in washington. he points out that in alberta, you don't have to look for the oil sands. the earth moves. >> when it comes to exploration in the oil sands, you can't drill a dry hole. it's there. we know where it is.

the oil is in the sand. it has to be dug up and processed. >> this mine in general will be in operation for about 25 years. >> rick george, the colorado-born c.e.o. of suncor energy, took us into his strip mine for a tour. >> so, bob, this is what the oil sands tar looks like. it's a very rich, very pliable kind of a soil. >> now, when i squeeze it, why doesn't oil come out? >> well, because it's not warm enough. if you add this to hot water, you'll start the separation process, and you'll see the oil come to the top of the water, and you'll see sand drop to the bottom. >> it looks like topsoil, doesn't it? >> it does, but it is oil. >> it looks like topsoil, but all it grows is money. [laughter] it didn't always. the oil sands have been in the ground for millions of years, but for decades, prospectors lost millions of dollars trying to squeeze the oil out of the sand. it simply cost too much. t. boone pickens, the legendary texas oil tycoon, was working alberta's traditional oil rigs back in the '60s and re

in lead time to last a bit in the last couple or oil prices oil prices sustain because of conflict in the middle east probably for most of next year under threat probably from two thousand and fourteen onward range bound wheat global growth being so we don't look at a rise much but saudis producing its historic highs and they committed to one hundred dollars so it's not going to fall either right thank you gentlemen now let's have a look at russia's energy patch. women are just officers well gans and bring you both russia has them all it is home to would largest natural gas reserves the second largest oil reserves the east largest crude oil reserves and the world's second largest renewable energy producer and common sense would suggest that countries with huge will and gas resources crisper or at least before him better than those without such natural wealth but meenie were in the world to have a lead on their energy world drives up prices and costs rabbits and through investment and makes manufacturing uncompetitive less of symptoms of what it's called dodge disease however russia ha

oil demand is another fault finding that the result is a continued fall in u.s. oil imports to the extent that north america becomes a net will export around twenty thirty now this shift according to the i.a.e.a. will be driven primarily by excel aerated extraction of natural gas and oil from shale and other type rock formations as a result of technologies specifically hydraulic fracturing and horizontal drilling and opec last week admitted for the first time that shale oil production in the u.s. would significantly diminish its share of the u.s. market so joining me now with a much more new wants to view of the factors involved here is murray he's chief investment strategist at casey research and i'm very very happy to have you on the show thank you so much for being on with us today my pleasure ok so let's bring up the. view in terms of the demand and the production in u.s. oil we actually have a chart which we're going to bring up but it shows how they're forecasting that demand will go down and their production will rise now this is attributed to shale oil an

but yet, in the united states, every gallon of storage we have for american oil, wti oil is full.ve excess oil that is being sold into our refineries, that's why as jonas says, we have a cushion we dn't have when israel went into lebanon in 2008. >> brenda: last word, gary b? >> well, if you combine what jonas says, the psychology, plus what susan implied, a potential cutting in supply, you really could see a dramatic rise in gas prices. >> brenda: thanks, that's got to be the last word. it's not just the mideast spilling over, why folks acrosshe u.s. may need to [ heart beating, monitor beeping ] woman: what do you mean, homeowners insurance doesn't cover floods? [ heart rate increases ] man: a few inches of water caused all this? [ heart rate increases ] woman #2: but i don't even live near the water. what you don't know about flood insurance may shock you -- including the fact that a preferred risk policy starts as low as $129 a year. for an agent, call the number that appears on your screen. >> in the northeast, thousands of victims of sandy still cleaning up as others start t

susan, we're seeing oil go up.you think it's going to hurt us at the pump. >> you're seeing the speculators and the financial markets and fluctuations, but really is going to impact us at the pump if there's a supply disruption and we haven't seen that yet and hopefully we won't get to that point. you know, maybe we'll start to be geopolitical games with the oil supply, but haven't reached that point, but this is a serious situation and destabilizing this has much greater impact than just the oil market. >> brenda: if we see supply disruption, but on the other hand a slowing global demand. >> fortunately, the global economy is weak and excess oil production from a lot of countries. if that wasn't the case we would already being seeing oil barrels well over $100 and prices $5 for gas in some areas, that's the positive in all of this, we can handle a little disruption. i kind of disagree, we have to have a full on, 70's, cutting things off for the price of the spike. because the fears of that, could send prices up, n

prices should be much lower we're swimming in oil etc but outside the united states the oil market is very tight and it's very very prone to disruptions when there's geo political risk but even besides geopolitical risk what we have here is two billion people on the planet who want to join the billion of us in the rich countries who already have modern energy these two billion people in china and india and the middle east and latin america they want to drive they want plastics they want to fly planes. and so the demand for oil is huge at the same time supply growth has been very small by historical story circumstances we haven't seen the surge in production that we saw in the soviet union and in the north sea and mexico back in the seventy's and eighty's so what we have here is a world will mark a world oil market that's feat that features huge demand to increase by very very determined drivers and flyers and consumers of energy who want in that they want the things that we have at the same time the world has had trouble in growing in increasing oil supply as a result the spare capaci

it's bad for those players because people tend to go back to oil and using oil. as for the defense contractors, we're to the going to have to spend some of defending the middle east because we will not need those resources so much because we have it at home. >> you gave use lot of interesting analysis on this. thanks a lot, gregg. and we've been speaking with gregg of the street.come. you can find gregg's companion article on our web site nbr.com. >> susie: a server glitch here at the big board today, impacting trades in over 200 stocks. shortly after trading got underway this morning, the n.y.s.e. said it detected a problem with its new matching engine, that made it difficult to match buy and sell orders or publish prices on 216 different stocks. so the exchange halted trading in those stocks, and routed orders to other exchanges, for processing. the big board says it expects normal trading to resume tomorrow. speak of normal, there is nothing normal about what has been going be here for the last couple of day, tom, not only this glitch but a lot of worries abou

that's here could help transform the world's biggest oil consumer into the world's biggest oil producer. longer than adequate description of bone beyond i think it's safe to say anything that anybody has really seen in this country since probably the land rushes in the early one nine hundred. this is what food city a year and a half ago that in itself is a misnomer. this little town of just one thousand people was following much of the rest of the state into a long slow decline. but in just eighteen months the population has grown from a little over a thousand to six in the top down. there was a time gene vidhan knew everyone until he grew up here now the shops on main street a full of strangers and for the head of this county's development authority that's for. has to be room. so now are frantically trying to get housing for those people here in an area that hasn't really built much for the last twenty or twenty five years right now the challenges in this community are to get water and sewer in so that developers can build more permanent housing. in a country where unemployment still h

and then a man pours oil on the fire. the thick clouds of smoke make it almost impossible to breathe. with the simplest technology a few young men are refining crude oil illegally. they tell us they sometimes produce several thousand liters of petrol a day. a simple hose pipe is meant to keep the facility from exploding. >> if we have better jobs, we will leave this one. you know, this is too dangerous for us. it's risky. about two or three times in this place, fire break out, and one of the guys working there, you can see his skin: he was caught in the fire, burned. >> they tap the crude oil secretly from the extensive pipeline system in the niger delta. life expectancy in the region is 40 -- ten years below the country's average. hundreds of these mini- refineries have sprung up in the past few months alone. the police and military turn a blind eye. >> well, this is nigeria. with a little money you can get yourself out from that place. they know that we are suffering. we are doing this as a result of poverty caused by u

oil blend could join breads and west texas crude as the global benchmark for the oil market there is however one major problem russia needs to pump more e.s.p. to make it a viable candidate writes artie's tom barton has been looking at the story for us he's just back from his trip to the oil rich region of the amount russia's far north for good to see it's almost you've enjoyed that trip not to call them so what needs to be done exactly for e.s.p.n. to become on par with w t o and brant. hi there dimitri it was a bit chilly but hopefully the russians oil for fortunes might be quite a bit more hotting up than the cold temperatures up in the north yes if we're looking at e.s.p.n. east siberian pacific ocean so we're looking at asia pacific markets here and the potential for e.s.p.n. to join west texas intermediate and brant is one of those top rank very well known markers of of global oil fortunes and prices so e.s.p.n. at the moment its biggest challenges to overcome before it can join those others on the top rank as it were is surely to get enough of it being pumped hungry markets ar

largest oil producer is not the same thing as being energy independent. well i mean one would question whether one even wants to carry on producing oil actually. the last year the more drilling leases handed out last year in two thousand and eleven than there were in two thousand and seven under george w. bush so it's not too surprising that obama would carry on handing out the leases and citibank did say that in the report that you mentioned that quote the u.s. could be the new middle east by twenty twenty and outpace the output of saudi arabia which is kind of quite phenomenal but what it really means is more carbon dioxide into the atmosphere on more the risk of further spills such as resource in two thousand and ten with b.p. because not only are they drilling off the shore deeper and deeper in the gulf but they're also wanting to drill for the first time offshore in the arctic too in that kind of pristine very fragile environment so many other reports most recently by the wolf bank say that we are headed towards a catastrophic level of global warming

so the price of oil, of crude oil, in any given day is dernled -- determined by global factors. in response to the question, if you talk about the global market, yes, the united states is part that have global market. but the important thing to remember is the international energy agency pointed out just a few weeks ago, the united states by 2020 could surpass aud rabe as the number one -- saudi arabia as the number one oil producer in the world. anything we produce in the united states contributes to that global marketplace and thus puts additional supply into the market, thus pushing the price down. that's the reason we believe part of the solution here is to focus on the united states, produce our own energy right here, the same time create well paying jobs and new taxpayers and make us more energy secure. if we can produce it right here at home we're going to be better off. it does go into the global marketplace but the more supply you have, the fundamental laws of supply and demand take place, and that price comes down. host: we'll go to maryland. democratic caller. caller:

for labor abuses in one thousand nine hundred four the court obliged and revoked standard oil of new york's corporate charter in that state and yet here we are today more than a century later with the gulf of mexico ruined eleven men dead and countless other lives ruined and the overseas corporation responsible for all this mess has free reign to do business anywhere it wants in the united states because our justice system has been neutered by corporate power if corporate charters were contingent on corporations operating in the best interests of the public as they used to be in our nation we get some wong over do. for the corporate death sentences the big five oil companies for example conoco phillips chevron exxon mobil royal dutch shell and b.p. dumped a billion pounds of carbon pollution into our atmosphere every day fueling asthma cancer epidemics and local communities as well as global warming but they don't have to pay for those externalities caused by their pollution leave the taxpayers pay for the extra burden on our health care system just like we are not the oil companies

our oil our oil industry and it destroys our planet in the process it's amazing mike papen tonio thanks so much thank you. as. it's the good the bad in the very very murky keisha's slee ugly the good senator dianne feinstein senator feinstein commissioned a report that was released by the government accountability office recently which says that the us has more than enough prison space to how's the one hundred sixty six prisoners who are currently held at guantanamo bay or in other words time to close gitmo after the report was released senator feinstein said this report demonstrates that if the political will exists we could finally close guantanamo without imperiling our national security. more lawmakers joined forces with senator feinstein and forced closure of get mode once and for all the bad senator mike lee mike huckabee these radio show yesterday lee argued that raising taxes on the wealthy elite america would inevitably hurt the poor in our country referring to raising taxes on the rich we worry about the consequences that will inevitably result from that action and it will hit

gulf oil production is already struggling to come back after the bp oil spill.ld this put a fresh jam in the spokes? joining me now is the omni trading academy presint and chief analyst. welcome back to the show, oscar. what do you think about this? >> well, you know on the onset when you see the spill and hear bit of course the tragedy we're worried about. two people are missing. we have the human tragedy. melissa: of course. >> but then there is the oil spill and here's what is interestin you realizehat happened with the bp oil spill in 2010, that what we didn't know what was going to happen was this? apparently mother nature has no qualms with slapping the human race with a storm like sandy you about doesn't like when the human race slaps it back with the oil spill. when we had the bp oil spill hydrocarbon chewing microbes came out of the ocean and ate up the methane gas and all the oil that was spilled. something we didn't know happened until that oil spill. believe it or not as ugly as it seems we have something on our side, mother nature helps to clean tha

we've already seen conventional oil and gas production start to taper off and we're getting that oil and gas from unconventional sources, from fracking. and that is increasing dramatically. in fact, nearly half of the global production that we're seeing in natural gas in particular through 2035 is going to come from unconventional gas, according to the international energy agency, and majority of that will come from the united states. so what does this mean for the dploe global energy trade? it means we're going to see a build-up and diversification of oil and gas that's going to change that landscape as well. in fact, they are predicting that by 2035 we will see 90% of the oil that's produced in the northeast going to asia. >> sharon, quick follow-up to you, if i could. >> sure. >> obviously there are a lot of people in the united states who will be extremely glad to hear this news. the question that i have though, is the infrastructure that's needed to get all of this going by the year 2020, is it there, how much more infrastructure needs to be built out? >> the infrastructure is t

and the fluctuation of oil prices. wouldn't that be the goal for the u.s. to be energy independence are there are drawbacks to that. well i think it matters why you decide how you're deciding your mix of fuels if we're still relying on fossil fuels i don't see the united states pulling out of its bases in the middle east and having. soldiers in iraq for example i mean it's impossible to explain iraq without talking about oil for starters so energy independence i'm all for. the the idea of energy independence but not if it's based on more of the same fossil fuels because the reality is part of the reason that the united states is able to produce more oil is because it's drilling in places that it never used to drill before it's also fracking for natural gas which means that natural gas is decreased so coal can be exported and coal is being exported in large quantities to places like china for example which is now ramping up its own component coal production which is adding to c o two emissions and then the u.s. turns around and says well look john is not doi

we have to keep oil at a level where drilling wants to happen, oil needs to happen. a lot of volatility in the market, a lot of uncertainty with the economy. we've seen oil plummet this year, down 13% to $85 today. if it keeps falling, that could create serious, serious headwinds. >> and less of an incentive to drill at that point. what about that, shouldn't oil come lower if we get that much supply coming to market and do you think it's going to happen? >> no one would argue that increased domestic supply would have a bearish impact on oil prices. that is not the question. the question is that, is it already reflected in the price? i'll tell you, oil market traders are very forward thinking. unlike ags and some other commodity markets some of your viewers might -- >> they go with the latest rain storm, don't they? >> they can. but the oil market will trade all the way out. we trade much deeper curve. as a matter of fact, the marketplace has given us an indication, december of 2013, roughly, about $90 today. you go out to december of 20$20 that's about $86. there is

rig burst into flames off of the coast of louisiana today although no oil no oil is said to be leaking now despite this news a new report from the international energy agency says that u.s. oil independence might not be a pipe dream dream after all the i.a.'s world energy outlook says the future could come as this future could come as soon as twenty thirty five and we could be leading be a leading oil producer by twenty twenty that's all thanks to a new technology the same technology that has led the way in natural gas production fracking now in two thousand and five the u.s. imported about ten point five million barrels of oil per day that number shrunk to nine point five million barrels per day in two thousand and eleven and it continues to drop today so much so that the u.s. could import as little as three point four billion million barrels of oil per day in twenty thirty five mostly coming from canada so yes the u.s. will be less dependent on saudi arabian oil but that doesn't mean the american interest in the middle east will simply diminish to talk more about the u.s. energy futu

it is oil city.ty of the inhabited areas consist ofousing constructed by the oilompanies. narrator: residential housing is reserved for executives, of whom most are expatriates. poorer accommodations are for workers. today port gentil has 80,000 inhabitants, but population growth is stagnant. the city suffers mainly from its isolation. there is no road linking port gentil and libreville. the only means of transportation are by air and sea. libreville, the capital of the country, has grown since the oil boom of the '70s. economic, political and administrative services are concentrated here. with 350,000 inhabitants, it has one-third of the population of gabon. during the prosperous 1980s, vast public works were planned for improving the city. in the hauts de gue-gue area, those privileged by the regime have built luxurious villas. but the gabonese economy, based on oil revenue, was fragile. from 1986, the fall in oil prices combined with the fall in the dollar rate brought a serious financial crisis.

so the oil is there. i'm more in the camp i agree with your previous guest, this is a real logistical nightmare. there are shortages induced by a lack of transportation. the oil's there. it will get there. but we're probably looking at least another week, maybe two weeks. melissa: really? >> persisting. melissa: wow, a week or two weeks? >> absolutely. so, now, what, but what is really interesting here you're not seeing reaction in the pricing. the --. melissa: why? >> futures market, term structure, forward curve, what i can take away from this the market is still judging that this is a transitory problem. it will be solved. it will be solved within the next month. yesterday final day of october we had an 18 cent rise in gasoline prices in futures expiration and then they 15 cent crash. so, problem is now, we have to start delivering or take delivery of the futures contracts that went to expiration yesterday. but the terminals aren't open. so there is a lot of maneuvering going back and forth. all this u

oil giant b.p.eed to plead guilty to criminal charges and pay a record $4.5 billion for the gulf oil spill of 2010. it was all part of a settlement with the federal government. and former c.i.a. director david petraeus denied he gave classified information to the woman he had an affair with, paula broadwell. he spoke to cnn, in his first remarks since resigning last friday. >> brown: online we look at this year's national book award winners. kwame holman tells us more. >> holman: louise erdrick was honored with the fiction prize for "the round house." she talked with jeff about her novel recently. watch that interview on art beat. also there are conversations with finalists robert caro, kevin powers and junot diaz, and a recap of the winners. and how does your view of the 2012 election results compare with others around the country? together with the pew research center, we've built an election report card-- you can take the quiz and share with friends. hari sreenivasan talked with pew's andrew kohu

their oil shipped through iranian ships or other flagships that are masking the fact that that oil iscountries. turkey has the pass through the sanctions of 180 delays they're still dealing with iran. russia, some defense systems they were using in the defense drills this past week were russian made, the s-200 defense system. >> this situation is not getting any better. we're trying to have a happy show. it is not going well. thanks for joining us tonight anyway. we appreciate it. >> anytime, melissa. thank you. melissa: up next, tesla motor as car is the car of the year. that's happy. all right, but the electric carmaker face as bumpy road ahead. elon musk, tesla's ceo and cofounder is here to explain how the company plans to hit its stride. >>> the founder of mcafee anti-virus software on the run from central american authorities? this is a bizarre story. he is wanted in the suspect of a a brutal murder of a neighbor. gets even weirder from there if that is possible. "piles of money" and salacious details around the bend. ♪ . [ thunder crashe] [ female announcer ] some people like t

>> to this, to this oil boom, natural gas boom?ll, the risk of-- from the obama administration is enormous. i think one thing that's interesting about this eia report is based on current assumption, it doesn't take into account what we could be getting if we were actually actively going after natural resources which, by the way, prior generations of americans set aside, exactly for us to use in places like in alaska, on shore the gulf, off shore off the coast, but the president has resolutely refused to tap any of those, what you see, is an administration thinking hard to think after way to wiggle into the fracking regulatory arena which up till now has been monitored and overseen entirely by the states with great success and that's got a lot of president's environmental allies unhappy and they feel they don't have control and so they're pushing the administration to insert itself into the area. >> the irony, is that natural gas production, bill, reduces greenhouse gas emissions and replaces coal, which is carbon intensive. this co