why did it go way up to $147 a barrel?-- what's called a fear premium. >> and the fear was that saudi arabia itself had peaked out, that you'd reached your ceiling of how much available oil is left in your overall reserve. so what's the truth? >> the truth is, here is the kingdom with more than 260 billion barrels, and i firmly believe that the potential to add another 200 billion barrels of oil are there to be found. >> if the oil minister of saudi arabia had one message it was, there is no need for those fears. and to make the point, they let us see facilities that will increase saudi capacity from about 10 million barrels a day to more than 12 million. and they're going to the ends of the earth to do it. this is shaybah, a desert wilderness where temperatures can reach 135 degrees. the saudis say that 18 billion barrels of oil lie beneath these red sand dunes, more than four times the proven reserves of alaska. to tap into it, the kingdom's national oil company, saudi aramco, had to build an oasis here. >> the shaybah s

down to $90 a barrel. we're back down into the range where we given back, that big run-up in oil prices we've had over the first two months we've given all that back now over the past two weeks. so we're now down into an area that will start attracting buying interest regardless of the news out of venezuela. so, we're already down on a level. a lot of longs have been exorcised out of this market. there is money. there is lot of money out there that needs a home. $90 oil, nymex, the excuse that chavez and what potential upheaval that we might see down there might give cause to come back into this market. so we might have seen a an end to the recent selloff in oil price. >> okay. stephen schork, david asman, thanks to both for insight. we're telling people if you're just joining us right now, hugo chavez passed away after two year battle with cancer. we're watching oil futures and energy stocks after the market closed to see reaction. huge news in oil. huge news today on wall street as well. the dow closing

hecht: before the stream restoration, when you have a rain event, the stream would just be barreling, just filled with tons and tons of water, and the water would move very quickly, eroding the stream banks further. narrator: the rushing water ran all the combined sewage straight into the monongahela river, which is a main supplier of drinking water for the region. hecht: what has happened because of the restoration is the water overflows its banks, it floods into these nice flood plains with native plants. and then slowly the water percolates back down into the stream. narrator: this allows the land to naturally filter and clean the sewer overflows before they enter the river. the restoration included extensive environmental changes to improve the stream and infrastructure changes to reduce the csos into the watershed. hecht: when i first started talking with people about stream restoration, i kind of imagined people out with shovels and small-scale. this is a massive $7.7 million project. schombert: nine mile run watershed is the most significant urban watershed restoration ever don

had been selling for about fifteen dollars a barrel when it went up he said you're going to have to pay for the big u.s. oil companies are paying a royalty for venezuela super heavy oil about one percent one percent ok and for their other and for the regular world heavy oil is sixteen percent just the is so the oil company keeping eighty four percent and chavez said you're going to have to pay thirty percent you can only keep seventy percent of our oil which is now one hundred bucks a barrel right you only have seventy dollars a barrel you've got to you've got to split off a bit to the people of venezuela and of course that made him enemy number one not to americans but to america's landlords the oil companies and you know as we know already about the economic hit man role in the jackals and how kind of the world is structured in that sense than the corporatocracy in which we live i mean chavez once asked you why the u.s. elite wanted him dead why they wanted to kill him did he believe that the u.s. was trying to actively assassinate him for a while actually they did and we had a b.b.c.

there's a wooden barrel, these old wine barrels, and he filled it water. completely filled. and at the top, covering the top, had a hole there, put a pipe, the pipe went up, oh, several feet, put a funnel at the top of the pipe, took a bucket of water, smaller than this. climb the top, pour the water into the funnel, filled up-- [makes sounds] --guess what happened? [makes sound] barrel burst. the barrel burst because of the enormous pressure. and here's the bit. the pressure in this barrel is just the same as if he had filled it with that amount of water. it's just the depth to the free surface to where you are, that particular depth multiplied by the density of fluid, that's the liquid pressure. really, really neat. this idea that pressure depends on depth tells us why dams are built the way they are. do you ever see a dam like this? good design or bad design? bad. very bad design because the pressure is greater against the bottom and that's where it should be thicker, not like that, yeah. so we find maybe dams like this, huh? so the pressure down here exerts a force that'

you know bourbon has to be in charred oak barrels. brand new ones.president of brown foreman. you are the only distiller to have your own cooperige makes the barrels? >> that's exactly right. we have competitive advantage. we do special things with these barrels. >> look at this fire blasting fire over there you can blast as much fire as you want. >> you can change the char. cut grooves. you can do all sorts of things to create unique products. >> wonder why some companies do better than others. you got jim beam. biggest bourbon manufacturer in the world and you got jack daniels. jimmy and jack, but the stocks very different in erlgs materials of earnings profile. you guys are making big money. >> yeah, we're doing really well. we've been doing really well for a number of years but mainly because of the great brand we have. to give you an idea of the growing of american whiskey business. we used to make barrels for other bourbon companies. we stopped doing that several years ago. we needed capacity for ourself. but we're building a second one in alab

we have 750 million barrels in storage and our cost is about $28 a barrel.ou started to eliminate some part or all of that spr, you know, you create one heck of a lot of money, is what will happen. >> don't you sleep better at night knowing that it's there in case we need it. >> tell me the case where you would need it. >> if we have a major problem where imports of oil and crude products are cut off, or slowed dramatically. pipeline bursting, whatever it could be. that's why it's there. >> well, the pipeline bursting, that's not very many barrels of oil. pipelines can be fixed very quickly. but where you -- where it was -- we passed it, we decided to do it, was back after the arab embargo of '73. so here you are and from the strait of hormuz, the fifth fleet is responsible to keeping the strait open and of the 17 million barrels, we use about 10%. 10%. that's all. so we can cover that. that's easily covered. natural gas, for instance, going to heavy duty trucks, that covers it twice. that's three million barrels a day. so if you -- things have have changed.

now, what we produce in our country was roughly eight and a half million barrels per day. do the math and that does not work. that math is not good forur country. adam: i'm glad you brought that up. i'm glad you brought that up. i will read from a letter that you are part of that was sent to the president. the u.s. accounts for 20 percent of world energy consumption and is the largest petroleum consumer. china would surpass this eventually, but in 2011 they consumed 18 million barrels of oil each day. an amount of likely to change for decades. in order to fill our needs, the u.s. in 2011 imported over a million barrels every day. here is where i will take issue with you. the oil that comes through the keystone pipeline will not be going to the united states. it will be refined and sent overseas. this oil is not about the united states. the? a good argument. send it anywhere. it creates jobs, that is not where this is going. it is not going to my guess tank. it will be exported. >> well, it will all be exported. we will take exception to the point that you made. american cr

this is the brown and -- [inaudible] you're watching barrels, oak barrels being charred.will be filled with bourbon soon. you got to make it that way. >> yes, you do. bourbon has to go in a new white oak charred barrel. >> one of the republicans the stock is doing well is they are the only bourbon maker essentially that makes your own barrels. we work with th masters to customize needs to the service. >> that's the chars you can get. that's a heavy char. that one's medium, and this, obviously, the lighter ones. it means different tastes to the bourbon. >> heavier char allows us to get color into the bourbon at a quicker taste so you get more sugar in the wood. >> this is how they assemble the barrels and sell them on the open market as well. look at how they fit togther. hoops go on them there, and this gives you a tremendous advantage over your competitors because you can control exactly how that char takes place. >> right. >> we control the whole supply from the wood cut to the barrels being made that gives us the tremendous advantage to know what we need and way we're

of oil was almost $100 a barrel. friday, it was $91 and something. it has gone up almost 10% in 10 days. if it happens in reverse, oil go sky high, in terms of price as soon as the price of oil goes up. why do you keep saying the price of oil has gone up? why has not gone down to reflect this price of a barrel on the world market? host: stay on the line. guest: it has gone down. i was talking about why does the price increase? it went up by 29 cents a gallon and that an oil went up also. now you've seen " no prices have dropped 16 cents a gallon and gas is down 4. you are seeing the normal relationship of gasoline prices lagging crude prices. host: a follow-up? caller: what he just said is not true. i'm in toledo, ohio, all the time. i was in fort wayne, indiana, over the weekend. it is $3.79 or $3.89 a gallon. how can you say it's gone down? guest: it has. log on to all the web site of and -- of aaa. host: in pennsylvania, a republican caller, mary. caller: thanks for taking my call. i want to know why it is a polit

they say it could soar to $270 a barrel. don't you love those reports?re do they get these numbers from? growing demand from china, india, and other emerging markets will largely fuel the increase. >>> all right. exxonmobil will invest $190 billion in exploration and development over the next five years. it will begin producing on 28 oil and gas projects during at that time. exxon says its new projects will produce an estimated one billion barrels of oil a day. >>> next on "money", finally minimum wage debate worth listening to. we have two business executives on opposite sides. they will explain how paying more will really affect their profits and their bottom line. you want to hear this one. >>> plus, businesses are swimming in pools of money while the masses struggle to find a job. at least that's what the "new york times" wants you to think. a it piece against corporate profits, completely misses the mark. we're going to explain why. you only -- "piles of money" coming up. ♪ . ♪ . melissa: you might never think you're getting a clear picture of it. t

they will now produce more than 4.7 million barrels of crude a day.roduces 2.4 million. wow. coming up on "money," jobs, 15 million barrels of oil, and one state standing in the way. california on the oil opportunity of a lifetime. the man behind the study joins us because at the end of the day, it's always about those pet ro dollars. ♪ all stations come over to mission a for a final go. this is for real this time. step seven pointtwo one. rify and lock. command is locked. five seconds. three, two, one. standing by for capture. the most innovative software on the planet... dragon is captured. is connecting today's leading companies to places beyond it. siemens. answers. ♪ melissa: u.s. crude oil production is on track to surpass imports for the first time since 1995. a new report out on the potential of the shale in california dubbing it a possible black gold rush. have you heard? it con tapes more than 15 billion barrels of oil, two-thirds of the u.s. shale oil reserve right there. could bring nearly 3 million jobs at least, much needed tax dollars,

. >>> thousands of food drive barrels and they are all empty. why a critical shortage for bay area food banks is coming sooner than expected. >> >> rain is up canning, you will need umbrellas, the commute will be slower. all of the details, a time line for when the rain gets here. . [ male announcer ] fact: the 100% electric nissan leaf... is more fun than ever. sees better than ever. ♪ ♪ charges faster. and will charge. cool. and heat. from your phone. fact: leaf never needs gas. ever. good for the world. built in america. now, leaf's an easier choice than ever. ♪ ♪ shop at choosenissan.com. ♪ ♪ >>> new at 5:00, a local food bank said it will be out of donated food by the end of this week. eric is live where you found it is a sign of a larger problem around the bay area. >> reporter: it is. when schools, businesses and churches hold food drives, they get a couple of these barrels to fill up. right now, thousands of empty ones are sitting in a warehouse. food that was collected during the holidays that was supposed to last a few more weeks is pr

if the falkland islands do indeed have these sixty billion barrels then we're talking about more oil than the reserves of the usa could tar or even libya to talk about this i'm joined in the studio by ken hurst he's a journalist came to what extent is this dispute a question of resources for both the british and the argentinean government well it could be argued that it's always been questionable whether it's morally or logistically sustainable to try to protect. a colony that eight thousand miles away i suppose the argument one could have added to that is economically sustainable said he wore ships and so on and so forth but of course the oil rather changes all of that but it only changes if you believe it's morally justifiable to go on what we call it you know a colonial plundering mission something we did in the eighteenth or nineteenth centuries and personally i don't happen to believe it is but a lot of people are saying that this is a question of domestic politics for the argentinean president because there is a flailing economy at home and. you know picking up the question of

it sounds like a lot, but that is a million barrels less today than it used to.he death of hugo chÁvez turnout lousy record around an improved oil production and3 lower oil prices for everyone? also, a frightening scene at a dunkin' donuts. find out what happened, we have the full video coming up next. [ woman ] if you have the audacity to believe your financial advisor should focus on your long-term goals, not their short-term agenda. [ woman ] if you have the nerve to believe that cookie cutters should be for cookies, not your investment strategy. if you believe in the sheer brilliance of a simple explanation. [ male announcer ] join the nearly 7 million investors who think like you do: face time and think time make a difference. join us. [ male announcer ] at edward jones, it's how we make sense of investing. [ male announcer ] at edward jones, at od, whatever business you're in, that's the business we're in with premium service like one of the best on-time delivery records and a low claims ratio, we do whatever it takes to make your business our business. od.

. >>> a semi barreling down the freeway in the wrong direction.surprising condition of the driver of this car. >>> hope of survival, waiting for help to arrive. why an east bay gas station could be one of the best places to have a heart attack. >>> first drops will start falling tomo >>> got >>> take a look at this video. traffic cameras in portland oregon show a semi truck driver traveling the wrong way interstate 205. the 49-year-old truck driver appeared heavily intoxicated. it hit a car 4:00 a.m. this morning the female driver was rushed to hospital where her injuries do not appear life threatening. >>> several blocks closed to the public at this hour in the west lake area of oakland. police say they were called to the area of frizz bee and fairmont avenue, 6:45 p.m. tonight about a man with a gun who may have been involved in a robbery. they saw two men running when they arrived on scene. they used a taser to arrest one man but the other got away. they believe that man is armed with a weapon. >>> federal judge sentenced a 27-year-old hacker t

barrel.t calculate how much the price increases in terms of since per gallon predellas about 29 cents. ethanol went up 3 cents. and demand increased. simple math. production is down a little. inventories of gasoline. there's plenty out there. it's just a question of how much more it costs to make. host: mark is a democrat in ohio. caller: good morning. you just keep saying the cost of crude oil has gone up. i watch national business report every night on public tv. they cover the price of oil every night. 10 days ago the price of a barrel of oil was almost $100 per barrel. friday it was $91 and something. it has dropped almost 10% in 10 days. perverse,ens in he oil goes sky high as soon as the price of -- gwhy has it not gone down to reflect the price of a barrel on the world market? host: go ahead. guest: it has gone down. i was talking about why the price increased. now you've seen crude oil prices have dropped about 16 cents per gallon and gasoline is down about 4 cents. you are seeing the

let's go with pork barrel spending.other words, not only adding insult to injury, they're going -- they're saying we're not going to invite christie, by the way, helping save new jersey and places like staten island and new york and rockaways and breezy point, saving them is pork barrel. why does he talk like this? >> it's ridiculous on two levels. first of all, accusing a governor of liking pork barrel is like accusing a ballerina of -- >> how about emergency relief? >> getting pork is what politicians do. secondly, christie wanted relief -- >> was that a shot at the fact he's a big guy? pork barrel? was that a little shot at him? i wonder. >> you want relief for people devastated by a hurricane. we gave relief to people on the gulf coast and in new orleans devastated -- >> we give relief to bali. >> so why not people in new jersey? >> i think pork barrel -- let's take a look at the polling on this guy, michelle. and i think most politicians today are lucky and the president is doing decently well right now, he's lucky

the maximum iran can produce is about 3 million barrels a day. the current out put is 2.7 million barrels. >>> cyprus fears sparked concern about future oil demand. led to selloff in oil futures which posted the worst loss in nearly a month. they settled down 1% at $92.16 a barrel. >>> coming up on "money", taxes are up economy, stalled, two. legendary rockers of all time see nothing but green. kiss's gene simmons and paul stanley roll out a big expansion of their rock and brews restaurant. they're here to tell us all about it. do you ever have too much money? ♪ . melissa: shout it out loud. members of the rock band kiss are betting big on business despite a slow economy. they're expanding their rock and brews restaurant with five new locations including the first international location in mexico. joining me now in a first on fox interview are legendary founders of kiss, gene simmons and paul stanley. thanks for coming on. gene, let me start with you, the economy is not great yet you are expanding, what gives you the confidence to do this. >> we

two tons of oil sand makes one barrel of oil. but at today's oil prices it's wildly profitable.layers like exxonmobil, shell, chevroning, and others squeeze 1.5 million barrels of oil out of this land every day, and they send most of it to the u.s. it's costlier than getting it from a simple land well because the tar-like oil has to be separated from the sand. and that uses lots of natural gas and warm water. the result is a heavy molasses-like oil which has to be upgraded into a lighter, high quality form of crude that can then be easily refined into gasoline, home heating oil, and other petroleum products. canada produces much more oil than it needs, so the excess oil is sold and sent by pipeline to its best customer, the united states. joining me now to discuss the negative side of the oil sanlds in the keystone xl pipeline is ben jones. he was president obama's green jobs czar during his first time in office, advising the president on ways to promote growth in the alternative energy sector in this country. he's a cnn contributor. joining us from los angeles is actress daryl

at a ridiculously low cost of $19.70 per barrel.hey have a joint venture with marathon oil that contains some of the best wells in eagle ford with the opportunity to drill many, many more. a year ago sanchez was producing just 500 barrels a day. these days they're producing 3,800 barrels a day. the company should be producing 8500 or 9500 barrels a day. this is a transformational deal. so let's talk to tony sanchez the president and ceo of sanchez energy to learn more about his company and its prospects in the wake of this transaction. mr. sanchez, welcome to "mad money." >> hi, jim, thank you. >> now, sir, frankly, we are big fans of the eagle ford. we know because we have had mark papa on many times. we believe it's somewhat like saudi arabia. so we were surprised, how were you able to get these assets which we think are premiere assets for kind of not that big amount from hess? >> well, jim, i think the price that we paid is a fair price. it's a price that hess was willing to transact at. the assets are in a very good part of the

that's right, two tons of oil sand makes one barrel of oil.s oil prices, it's wildly profitable. that's why major players like exxonmobil, shell, chevron and others squeeze one and a half million barrels of oil out this land every day and send most of it to the u.s. it's costlier than a simple land well because the tar-like oil has to be separated from the sand. that uses lots of natural gas and warm water. the result is a heavy, molasses-like oil which has to be upgraded into a loiter, high-quality form of crude that can then be easily refined into gasoline, home heating oil and other petroleum products. canada produces much more oil than it needs, so the excess oil is sold and sent by pipeline to its best customer, the united states. joining me now to discuss the negative side of the oil sands and the keystone xl pipeline is van jones, he was president obama's green jobs czar in his first term in office. he's now a cnn contributor. joining us from los angeles is actress darryl hannah. you may know her from her roles in movies like "splash" a

and if you spend $150 producing a barrel of offshore brazilian oil, and the same barrel, exactly the same utility as the $10 soundee barrel ri is to you gone, you are not going forward. and yet the gdp measurement clocks in everybody's employment, and so the more people you need to get a barrel of oil, they think the economy is stronger. and of course it's weaker. so we worked that out. and we say how fast is the rest of the economy growing. take out the resource component, and the answer is in the last ten years, about .5% a year, .4, .5% a year less than is measured by the gdp. so we have to knock that off which takes our 1.5 down to a point. now when the price of resources was declining as it did for a 100 years up until about 2000, it was underestimated. maybe underestimated by almost a quarter of a percent. when the price of resources are going down t makes getting wealthy much easier. and in total the typical commodity dropped by 70% over a hundred years. and then it turned on a dime and gave the whole 100 years back between 2000 and-- 2002 and 2008. in six years it gave back a

our country uses 21 million barrel as day. we have to get it from somewhere. do we get it from a middle eastern country? and look at the turmoil. how about working with a friend in canada where we can get a stable source of energy. by the way, china wants that oil. so either china is going to get the jobs and the oil or america will. we ought to say yes to those american jobs. >> back to the budget for a minute. the republican study committee last year introduced its own competing alternative to the ryan budget. you said before the ryan budget came out this week that you would wait to see what the house republican budget would look like. now that you've got a chance to see it is the republican study committee going to go ahead and introduce its own budget? >> we will be filing a budget amendment to the ryan budget. we will be debating all of that in the days ahead. and hopefully by the end of next week we'll have baunlt passed out of the house. i don't think anything we do is undermining the budget. we actually build on some of the thing that is paul has worke

. >> the tall tank in the middle called the gun barrel separates oil from water. the explosion occurs when the oil, made dangerously hot by the fire, flows through a pipe into the smaller tank that contains raw crude oil. >> there's a scavenge line up high on the side of the gun barrel that scavenges raw crude oil off the top of the barrel and dumps it into two holding tanks on the east end of the facility. >> the video shows the super-heated glob of oil funnel from the gun barrel into the holding tank, where it ignites the raw crude inside. seconds later, the flare erupts. then the tank blows up. >> it went up over our heads. i'm going to say every bit of 200 feet high. i could still see the tank today with fire coming out of the bottom of it as it's spinning going through the air. it landed about 75 or 80 yards away from us. we were very fortunate it didn't come down on one of our personnel or our apparatus. >> the tank next to it explodes soon after, but this one stays anchored to the ground. >> the next explosion was the second holding tank that had raw crude