their strategy was isolate bp, make this a bp problem, but even within that, because bp is the largest producer of oil and natural gas in the united states, so if you say it's a bp problem, you take a big gamble because that says half of the oil produced in the united states is dangerous, so they said it's a bp problem, but it was a fluke. that spin worked. one of the reasons why it was able to work was unfortunately because the obama administration on which i had named in my last book, while this administration is not an oil administration, it certainly isn't the way the last administration was. it doesn't get money from the oil industry, but from the industry, but it's the finance industry, not the oil industry. even this government is not immune from the incredible weight and financial lobbying and pressure of the oil industry, and even this government that came to that pressure, and the key moment that peter mentioned and john mentioned when basically public attention was completely swayed and alters, and we really lost the momentum, not lost the entire race, was on august the 16th

bp is not making that available. antonia juhasz mentioned they deliberately made the process really complicated and the scientists we talk to, many have done incredible job collecting data under difficult situations. they can't get money to analyze this. it is kind of a mess. there is some governments funding -- funding but a lot is tied up in the court process. to say it is being analyzed is not being -- not being shared with the public because they are treating it as evidence. that doesn't mean the public doesn't have a right to know. eyewall also give a blow for friends at cvd who are doing great work. they don't get corporate funding. we don't take government money. thanks for making it possible for us. >> one of the problems is that bp has put up $500 million for research as they should. they should put up $500 million for research but they are in control of the fund so they are requiring scientists to sign three year confidentiality agreements. they are trying to guide the research. all the great scientists are

not least because tnk bp, get their way, that's the russian joint venture with bp, inside russia, forare-swapping and investment in russia, bp would only get 50% of what it initially believed it was going to get. that would be a bad result for bp. >> let's put this into context. that's worth $30 billion. that's significant money, even if you only get 50% of it. >> it is significant money, certainly. but you have to put this into context. that figure of $30 billion is not being put out there by people i've spoken to. originally, according to my sources, bp offered their russian partners $27 billion. tnk said they were interested in the region of $35 billion. that's the kind of ballpark area of money that perhaps is being discussed now to try and find a resolution to this situation. but we don't know. it's, by no means, certain at this point. that that's what they're talking about. it's been reported in "the wall street journal." but the talking are taking place behind closed doors. >> matthew chance, our senior foreign correspondent, in moscow there. andrew? >> we're going to take a sh

the deal was blocked by tnkbp, bp's russian partners.y th new terms were put in place for an arbitration panel giving bp just ten days to find a new way to finish the deal to put shares into a trust fund and to keep tnkpb on board. let's go straight to moscow for an update on exactly how this is going to happen. cnn's matthew chance is standing by. matthew, is this deal dead in the water? >> reporter: it seems to be at the moment. in fact over the course of the past few hours there's been a statement issued on the bp website, a joint statement from bp and aar, this con sosortium confirming that the deal with rosneft has not been found. the statement says both bp and aar will intensify efforts to ensure tnkbp's continued success. the statement goes on to say a solution wasn't found. the statement also says talks will continue about closer cooperation with rosneft. rosneft for its part has not made any public statements so far. there have been reports on the interfax news agency, though, saying it hasn't renewed its deadline. the other sta

. >> new, bp has been sued for a lot of things related to the gulf oil spill. now they are being sued because of high gas prices. why some say they are causing you to pay more at pump. tonight we know that felicia barnes was murdered. the autopsy report was released today. cheryl connor. >> reporter: tonight police aren't willing to say how she died. i talked to her brother who wasn't surprised to learn his younger sister was murdered. we are learning more about how barnes died. the autopsy results determined there was no accident. >> she was murdered. someone killed her, someone caused her death and killed her. >> reporter: who killed her and how she died are still unanswered. the north carolina teen visiting her sister in northwest baltimore disappeared in december. her body was found two weeks ago in the river about 50 miles from the city. a man's body was found four miles away but police believe there is no connection between them. her brother is not surprised his sister was murdered. >> i'm pretty sure someone did something to her. everybody is a suspect,

bp the oil company, and transocean owned the rig. they came out to give them award and they operated seven years without a loss time incident. that again tells you how important not losing time to them is. time is money in everything, but in the oil business, it's a lot of money, and so, you know, so what happens is the longer they go without a serious accident, the more they feel justified in taking chances because they keep getting away with things, and it's just like in, you know, when we have a 36 inch snowfall, we are angry it takes three days to get the streets plowed, but if they were raising our taxes to pay for enough snow equipment to deal with a 36 snowstorm every year that happens once every 100 years, we'd be angier. there's no way we would be willing to pay for the capacity it takes to deal with the 36 inch snowstorms. this is the same. okay, if you're going to increase your chances of a disaster by a quarter of a percent, and you can avoid that by spending $10 million, is it worth it? so what happens is that people sta

not that bp had not done anything wrong. they are going through the legal process and ultimately they will be held liable for all the damage that that oil spill did. any citizen and anybody in america should be entitled to due process. that was my point. host: this tweet has come in for you. guest: energy conservation is a good thing. we need to do it and we need to do more of thait. you can go on a diet and conserve, but you still have to eat. energy is the lifeblood of the american economy. we still have to import energy into the system. host: this tweet from a s asha2000. guest: guest: he and i are in agreement that we need to have a responsible drilling program. his big issue right now is trying to use all of our natural gas resources for transportation. i am a sponsor of that bill. t. boone pickens does not say we should not drilling in the united states. host: if you like to talk with congressman joe barton, we are talking about the issue of oil drilling particularly here in the united states. john, you first up. calle

you see now after that happened bp stock fell 50%. where is it today? it is back where it was. there were all these calls for increased regulation and a moratorium on oil drilling. where are we today? they are back where they were before. once again because people don't like paying $4.05 for a gallon of gasoline. they are saying we are going to address of -- aggressively expand offshore oil drilling. what that means is -- they say there will be some additional safety regulation. the people who are enforcing the regulations can't be involved in every decision on every rig in the gulf of mexico. they are going to -- nothing is going to happen and they will start taking the same chances. there was a character we focused on who was the first chief aide of the rig and he had this hobby where he likes to go on these small hydroplanes not much bigger than a person at 80 miles an hour in his off time. this is what he enjoyed doing in his off time. after this explosion where there is this whole thing in the book where he acted very heroically, this that and talk thing where two of the l

bp pays for its spills and a website for those who find breaking up is hard to do. early morning business headlines are straight ahead. and once again lindsey lohan may have found a way to stay out of jail. >> coming up the celtics show their age and the first no-hitter of the season. you are watching "early today." >>> good morning, and welcome back to "early today." i'm lynn berry. here are some of your top headlines this morning. texas has carried out its first execution using a different sedative that is often used on animals. carrie kerr who was put to death for the sexual assault and strangling of a woman in 2001 maintained his innocence in his final words. >>> england's daily mail claims the honeymoon may have been delay ed by the cuouple's safety rather than i wish to rush back to work. a palace spokesperson says the delay was a personal decision make weeks ago. the couple will honeymoon later this month. >>> meanwhile, prince charles made a trip to washington, d.c. yesterday. he met with war veterans following a visit to the supreme court earlier in the day

actually bp did have a terrible record. i'm pleased my colleague from texas pointed out the 800 violations that bp had. there was a bit of a problem for at least 11 members of the gulf oil industry. they died as a result of the inattention to safety. the proposal that i have before us deals with one of the recommendations that the commission made. and that is that there be an independent safety organization created to provide an additional level of review of the requirements that drilling be done safely. now, the legislation before us ignores that recommendation by the commission. and basically says that the american petroleum institution is quite capable of doing this. well, the commission, the independent, bipartisan commission said the american petroleum industry is culturally ill-suited to drive the safety revolution in the industry. for this reason, it is essential that a safety enterprise operate apart from the american petroleum industry, and i could not agree more. and my amendment would require that the secretary,

and bp is hope all they'll be able to salvage something. >>> in the u.s. finishing high for a second day in a row. it's shoeking mixed economic number. more on that in a moment. but all the major indices closed by between a fifth and a third of one percent. after the close, gap, the apparent maker, said igts first quarter markets one down. it's america's largest clothing retail retailer. in fact, it says sales are sliding. the rising cost of cotton has increased gap's overhead. they're being forced to pass on some of those extra costs to consumers. >>> well, the online networking company linkedinpositioned itself nicely. its shares made its debut of $45 each. just under 8 million was snapped up with that price and then they subsequently skyrocketed to an incredible $122, hour of the start of trading. they closed at a price of $94.25. and that's still more than double the price as which they started trading at and the sort of increase witnessed we haven't really seen, it must be seen, since the dark boom in the late '90s. perhaps back in bubble territory. w

. >>> oil prices fall, bp pays for its spills and the website for those who find breaking up is hard to do. your first look at this morning's business headlines is straight ahead. >>> coming up, the celtics show their age. the thunder even things up and the first no-hitter of the season. you're watching "first look" on msnbc. how can expedia save me even more on my hotel? by giving me huge discounts on rooms hotels can't always fill. with unpublished rates. which means i get an even more rockin' hotel, for less. where you book matters. expedia. >>> welcome back to "first look." i'm lynn berry. here are some of the top stories making news this morning. texas has carried out its first execution using a sedative often used to euthanize animals due to a shortage of another sedative usually used. kerry kerr who was put to death of the sexual assault and strangling of a woman in 2001 maintained his innocence in his final words. "daily mail" claims the honeymoon of william and katherine duchess of cambridge may have been delayed by the osama bin laden mission. the paper says the delay had m

bp says they are not true and no congressional investigation in recent years have proven price fixingor oil companies. >>> the orioles are in third place in the american league east thanks to a solid performance from jake arrietahe struck out 8. in nick markakis won with a game winning home run, the first in nearly a month. the o's are now 14 and 15 overall and finished the series with the royals this afternoon. >>> maryland tarp painpin bass -- terrapin basketball team will have to think about a future without jordan williams. he declared for the nba draft this year. signing with an agent means williams is now eligible -- is not eligible to return to the terps even if he was not drafted. he was named third team all american last season and led the terps in scoring and rebounding and recorded 25 double, doubles. >>> now maryland's most powerful doppler radar and the forecast certified most accurate by weatherate. >> good morning to tracy in elizabeth joining us early on this thursday. excited that it's thursday. we are closer to the weekend and stuff we are trying to pack in. check ou

my and standing is the they have not been filled tested, except for the one used in the bp still. if they do not work, what is our best recourse if we have another, god forbid, major oil spill? >> that is a great question. it is a question of managing risk. how do you manage that risk to

bp pay $45 million fine to settle a civil suit over two crew crude oil leaks in alaska. failed to properly maintain its oil pipelines in the weeks in 2006 were a direct result of that neglect. the justice department considering possible fines against bp over the much bigger oil spill in the gulf of mexico. experts say the funds and restitution costs could top $20 billion. the amount one person one step closer to getting the first female mayor of gary vienna. she won the democratic primary in debt over 50 percent of the votes out of 10 candidates in the field. the current mayor rudy clay endorsed her. . >> top business stories are next in you will not what your boss to hear this. strategic advice for napping at work. the amount if you want to gas up your rental car before you return it a steep market charging to refill those it takes. them up at the lunch break and easy recipe for any night of the week. parmesan incrusted tilapia. ies who need imagine... one scooter or power chair that could improve your mobility and your life. one medicare benefit that, with private insu

is part of the national strategy. >> charlie: what's likelihood that bp could handle the same kind of tragedy could happen again? >> part of the changes that we have seen in our sister agency in the department much the interior, as a result of deep water horizon have been intended to have much more effective mechanism to ensure not only safety, but minimize the likelihood of similar problems, especially in deep waters. >> charlie: how i do want your tenure there to be judged? what was the metrics of how we will evaluate what you have been able to do for the oceans? >> my goal has been very much focused on noaa as a science agency, ensuring that it has the best possible science and scientists and that we have good policies to ensure the integrity of science. also my goal to end overfishing that would be a major accomplishment. we are on track to do that, we're using some new creative ways of empowering fishermen to make smart business decisions and be good conservationists, think long term not just race to fish, which is what has driven so much of the the overfishing. part of my legacy

. >>> this at bp plans to make a major announcement on fuel in the bay area.es are spurring even greener vehicles. >>> a lawyer representing the yemeni man al-murisi. al-murisi's attorney says his client will enter a not guilty plea at his court hearing. >>> an emotional day over a controversial san francisco renovation project. >>> and i'm back here in less than seven minutes. we have the computer lined up about noon tomorrow showing rain. i'm going to push it forward to show you how much rain we're expected to get. >>> and the program that is putting hundreds of teens to work this summer. >>> san francisco supervisors today narrowly approved a controversial review including a huge expansion at the san merced complex. >> let go of me. >> deputies escorted two women out of that hearing after mounting frustration over the plan to demolish 15,000 apartments at park merced. the supervisors voted 6-5 in favor. a friend of the woman says that her patient ran out. >> when they say, they're going to give them equal housing and they're going to have the same neighbors

. >>> this at bp plans to make a major announcement on fuel in the bay area.even greener vehicles. >>> a lawyer representing the yemeni man al-murisi. al-murisi's attorney says his client will enter a not guilty plea at his court hearing. >>> an emotional day over a controversial san francisco renovation project. >>> and i'm back here in less than seven minutes. we have the computer lined up about noon tomorrow showing rain. i'm going to push it forward to show ♪ ♪ ♪ >>> san francisco supervisors today narrowly approved a controversial review including a huge expansion at the san merced complex. >> let go of me. >> deputies escorted two women out of that hearing after mounting frustration over the plan to demolish 15,000 apartments at park merced. the supervisors voted 6-5 in favor. a friend of the woman says that her patient ran out. >> when they say, they're going to give them equal housing and they're going to have the same neighbors, that's -- [ bleep ] i'm sorry >> that's okay, that's okay. >>> developers say residences would be relocated to different apa

shares fell 15% after disappointing results and an announcement it's bp being investigated by the securities & exchange commission. those that think it was left overvalued last week may see proof today when stock options start trading. finally, facebook's ceo, mark zuckerberg, has vowed to eat meat only from animals he kills himself. after slaughter, zuckerberg sends off the meat for processing. then he and his girlfriend cook it. if he eats out at a place he can't bring his own, i orders vegetarian. that is your bizarre news for the day. >>> coming up, the a's rely on weather and the os get an extra inning walk-off win. plus, lebron james makes good on something he says he never could do in cleveland. your early morning sports headlines are straight ahead. >>> today is a busy travel day getting ready for your memorial day forecast. you're watching "early today." >>> good morning. if you're just waking up, this is "early today." in sports, when chris bosh dwyane wade and lebron james all signed with the miami heat this off season, they said their goal was to win a championship and now they h

calls for a one-year extension of the drilling leases suspended by the obama administration after the bpil spill the. >>> personal items owned by ted kosinski will be sold by u.s. marshals in an online auction. items include his type writer, various versions of his manifesto. proceeds will be used to compensate some of his victims. >>> happy birthday to 30 rock's tina fey. >>> all day long, you can stay on top of the very latest developments in those stories and others as they break on msnbc. and tonight be sure to watch brian williams with nbc "nightly news." >>> and, finally, here's a look at what's coming up later this morning on the "today" show. find out details on an investigation now being launched into former governor arnold schwarzenegger's extra marital affair. >>> and meet a woman who says she and her mother were humiliated when southwest airlines told them they were too fat to fly. >>> now keep it on this channel for continuing local news, weather, sports and more. i'm lynn berry. thanks for watching "early today," just your first stop of the day today on your nbc station. ha

owners are suing bp claiming that the oil giant is forcing them to buy gas when prices are high. driving up the rate you pay at the pump. bp says it's not true and no congressional investigations in recent years has proven price fixing but oil companies but that brings us to the hot topic and we want your two cents. rising price of gas and what seems to be less anger over the prices we ask are you angry or are people complacent about the situation because feel they can't do anything. ginger writes and says, why get angry it isn't going to get anywhere but stressed out. stay closer to home bike ride or take nice walks. >>> and theodore writes in oh, you are mistaken. livid here watching the gas prices and the gas executives milk us every day. head to the wmar facebook fan page and leave your two cents and we will share the comments throughout the show. so keep them coming. >>> in other news switching gears, springtime means the end of the school and graduation is very near. which means a lot of new adventures for some people. the paths can vary. one students who faced many challen

democrats accuse republicans of not learning from the bp oil disaster. >>> the hospital where gabrielle giffords had surgery on her skull yesterday says her recovery is going well following the operation. they used a plastic implant to close a hole in the congresswoman's skull that was damaged when she was shot in the head. >>> and a new study finds that there's a new class of free-flying rogue alien planets. by definition, a planet is something that orbits a star. now researchers have discovered there are planets that float through space without any known star. >> and now here's an early look at how wall street will kick off the day -- the dow opens at 12,560 after gaining 80 points yesterday. the s&p added 11 points, the nasdaq rose 31. taking a look at overseas trading this morning, in tokyo, the nikkei dropped 41 points. but in hong kong, the hang seng was up 152. >>> well, stocks bounced back to snap a three-day losing streak yesterday. news that fed officials think the economy is on the right track fueled a rally among raw materials. oil led in commodities rising back above $100 a

louisiana's delicate oyster beds, trying to recover from four hurricanes in five years and last year's bp oil spill. >> if the oysters die, we lose that for the market this year. however, that's material for new oysters to grow on next year. >> reporter: and there's more trouble on the mississippi tonight. a segment of the river is closed near baton rouge after some barges broke loose and three sank. the coast guard is investigating. david? >> anne thompson, thanks very much. >>> the professional wrestler known as macho man randy savage died today in a car crash in florida near tampa. he was an absolute legend in the showbiz wrestling world known for his sunglasses and bandanna, his gravelly voice, and the young woman named miss elizabeth who was so often by his side. police say he lost control of his jeep wrangler about 9:30 this morning. his wife suffered minor injuries. randy "macho man" savage was 58. >>> when we come back on this friday evening, meet the man who has been tasked with turning around one of the country's biggest public school systems. >>> and later, unlikely friends giv

he was seen filling up at bp, the folks who brought us the oil spill. he drank guinness in ireland, flipped burgers, and high-fived the prime minister. speaking of presidents, you rarely get to here them in moments. like bill clinton talking with paul ryan. another former president was in the news this week for an unguarded moment. george w. bush was unguarded when a foul ball and the catcher chasing after it almost took him out. and in rough and tumble politics, cathy hoppel won an election to the seat vacated by a man who sent a picture to a woman other than his wife. >>> in california, a judge ruled the prisons are so overcrowded it's unconstitutional so they'll release 300,000 over the next two years. >>> another reason to love dogs. mason the terrier came over this week after missing for three weeks in tuscaloosa. he made it home with two broken front legs because he needed to get home to his owner. and that's why we love dogs. >>> the nation lost a medal of honor recipient this week. paul weederdorf was awarded in for what high did in belgium in c

first bp pumps oil into it. then radiation seeps in from japan.? we're going to put osama bin laden in there. what did i do wrong? i'm the ocean. >> tonight jimmy welcomes actress whoopi goldberg, sesame street's elmo, and musical guest jennifer hudson. "late night with jimmy fallon," week nights 12:35. >>> it's time for your first look at entertainment news. charlie sheen has taken on many varied real life roles lately, but they keep getting more bizarre. yesterday, wearing a university of alabama jersey and cap, sheen toured a tuscaloosa neighborhood decimated by last week's tornadoes. sheen says he's working with local authorities to organize a set. >>> also mariah carey and husband nick cannon welcomed their long awaited, much publicized twins into the world, a boy and a girl. >>> as '80s rocker rick springfield to celebrity mugshot. the 61-year-old was arrested in malibu sunday night for driving under the influence. >>> finally, no prenup for william. according to a friend, despite legal advice to consider one, the duke of cambridge refused b

the bottom three aig, bp and goldman sachs. >>> three years after a deadly tiger attack, the new plans to bring back the big cat exhibit at the san francisco zoo coming up. >> and osama's capture hollywood style. the hollywood director who wants to take it to the big screen. ,,,,,,,,,,,, be back over southern california's santa catalina island this morning. a fire that started behi >>> firefighting helicopters will be back over the santa catalina island this morning. a fire that started behind the yacht club has burned about 40 acres since yesterday afternoon. right now it's 30% contained. local fire crews protected some threatened buildings. more firefighters being dispatched to the island by barge. >>> we are just learning that some missing boy scouts were arkansas may have been found this morning. a helicopter crew spotted some people around a campfire in the area where six boys and two adult leaders are apparently stranded by high floodwaters. they were reported missing sunday night. scouts are in the same area where flash floods killed 20 campers last summer. >>> quite a storm the

this is very similar to the recovery in bp after their disaster. and we're seeing the same thing as a result, uranium prices fell sharply. camoco fell 40%, it is stabilizing and starting to move back up. uranium prices are rising. and china and india, the two big drivers of nuclear power have said they're full steam ahead. they are going to continue to expand their nuclear power. so this is all very positive for c ca, moco. >> you also like europe in the form of a spanish telecommunications provider, telephonica, tef, it clearly has had a choppy time as the spanish competent has telefonica is growing, over 70% of telefonica is in latin america, outside of spain. it has a great rising dividend over 9% at this time. that suggest a very cheap stock. and p-e ratio is under 8. so i think this looks really good to me. >> tom: dividend and value play. back in october you were last with us, you had a couple of picks in some different areas, rare element resources, a rare earth mineral miner, up 21%. sea drill, deep-sea drilling up 18%ing dow still like the

committee are expected this morning to grill top executives from chevron, develop, conocophillips, bp america and exxon exxonmobil. >> feels like we are getting gouged. >> i don't think they have done anything for us except taken our money. >> reporter: senate democrats have introduced a bill they say would lower the federal deficit by repealing $21 billion in tax breaks over 10 years. but republicans and even some democrats argue that's not the answer. they fear taxing the oil companies will only end up hurting consumers th most. >> higher gas prices, fewer american jobs at the expense of american energy? that's their plan. no thank you. >> reporter: the oil industry is also expected to come out swinging against the proposalna . statement ahead of today's hearing, conoco's chief executive described the plan's tax reforms as unprecedented and un-american. tara mergener for cbs news, washington. >>> time now 4:45. president obama says automatic spending cuts and tax increases will be key to any compromise plan for reducing the nation's deficit. he made his comments in a town hall type

secretary, bp has largely been the public face of the oil spill. as the joint interior coast guard and spill commission investigation made clear, there certainly were problems with respect to the bp contractors. we are talking about transocean and halliburton. halliburton never reported that the cement for the deepwater horizon was faulty even as it was being pumped into the well. transocean went to federal court to claim indemnitity that went back to the 1800s, gave themselves bonuses. what are your recommendations because we are going to be dealing with this starting tomorrow and over this week. what are your recommendations, mr. secretary, for holding the drilling contractors, not just the leaseholders responsible so that we don't get into another one of these finger pointing, you know, routines, what would be your recommendation with respect to the holding the drilling contractors responsible? >> director bromwich and i have have had a series of conversation and meetings and public pronouncements on this. i will have him deal with the contracto

. >>> the heads of the five biggest oil companies, shell, common mobil, conoco phillips, bp and chevron on capitol hill today. senate democrats want to repeal $2 billion a year in tax breaks for the oil industry. >>> floodwaters are swoll lowing up more homes and farmland in the mississippi delta today. 16 casinos in the state were forced to shut down, putting thousands of people out of work. the mississippi river is expected to crest next week, topping a record set back in 1927. >>> and the embattled "spider-man" musical returns to broadway today. "spider-man: turn off the dark" follows a three-week hiatus and overhaul. the show is now set to officially open in a month. >>> for some of you, now, your local news is next. >> and for everybody else, which movie star is facing heat over the size of his trailer? so, at our compa we pay about the same, even though i'm a great driver, and he's... not so much. well, for a driver like you, i would recommend our new snapshot discount. this little baby keeps track of your great driving habits, so you can save money. [sighs] amazing. it's like an

bp partly paid for the research, but he initself is it had no input on his work. other studies so that the spilled gulf oil may be no problem in as little as two years. >> they will use that type of science to justify their reckless per suit of oil anywhere on the plan it. >> reporter: lawmakers and the obama things are pushing for more offshore drilling. >> the gulf of mexico has not heal. >> reporter: others point to more death of wildlife, although there hasn't been a tie yet to the oil spill. >> there isn't evidence yet, but the bodies keep floating in. drilling on the east coast might be much more risky than drilling in deep water than in the gulf of mexico. >> reporter: but natural seats in the santa barbara channel are protected. >> but the rest of the west coast has relatively few natural seeps. >> reporter: he said lack of microbes helped make the exxon value keys spoil so -- valdez and i so devastating. >> the more that we try and engineer our way out of these problems, the more trouble we're going to get in. >> reporter: hazen's most controversial posit

finance committee are expected this morning to grill top executives from chevron, shell, conoco phillips, bp america, and exxon mobil. the so-called big five receive billions of dollars in subsidies every year. but now some lawmakers want that to stop. so do drivers paying top dollar at the pump. >> feels like we're getting gouged. >> i don't think they've done anything for us except taken our money. >> reporter: senate democrats have introduced the bill they say would lower the federal deficit by repealing $21 billion in tax breaks over ten years. but republicans and even some democrats argue that's not the answer. they fear taxing the oil companies will only end up hurting consumers the most. >> higher gas prices, fewer american jobs, at the expense of american energy, that's their plan? no thank you. >> reporter: the oil industry is also expected to come out swinging against the proposal. in a statement ahead of today's hearing, conoco's chief executive described the planned tax reforms as, quote, unprecedented and un-american. and the house passed the bill yesterday, requiring the govern

. >> reporter: the big guys from big oil, exxonmobil, shell, chevron, conoco, and bp. in the senate over the high cost of gasoline. they said don't blame us, it's the high price of crude oil that's driving up pump prices. want cheaper gas, they said? cut taxes. >> we make about six cents a gallon in our gasoline business. if there's a big concern about gasoline prices, federal and state governments make 50 cents a gallon. >> reporter: democrats charged profit margins are up. >> when the world price goes up, the after-tax profits of your companies go up very significantly. >> raising our taxes will not reduce the price of gasoline. >> reporter: but to balance the budget democrats want big oil to pay more. they'd end tax subsidies. >> in light of massive deficits and you have massive profits -- >> reporter: the red ink is rising fast. the execs said higher taxes would hurt -- >> arbitrarily punishing five u.s. oil and gas companies by raising their taxes will generate far less government revenue than if we were allowed to compete and produce our nation's own resources. >

we just need to look as far as maxey coal where there was an explosion of a coal mine, where the bp oilill, those companies took a huge financial bath as well as a reputational bath because they weren't paying attention to issues that somehow they had dismissed as environmental tree hugger issues. >> are you seeing some sort of epif if i going on widespread? >> absolute change. i have been at this for 20 plus years, and i have been an environmental lawyer for 30 years. companies and financial leaders understand that these issues are a part of their bottom line. the world economic forum where international world leaders go from the corporate sector. last year we had 200 leaders looking at sustainable consumption, how to make products using fewer resources, wasting less energy. five years, we had five companies. it is changing, and it's real. it's not changing quickly enough. we have an enormous way to go, but we're seeing some fund mental changes happening right now. >> speaking of change, china has an important prebs at these conferences that series puts on. china is -- the china-califo

. -- after the bp oil spill last year. in the senate, there's almost no support for it. >> it sounds like them these bills are going to the president's desk. what is the future policy temperature? >> senator bingaman said that the obama administration is working with congress to push forward a bigger package of energy. i think we will see -- i do not think -- the people i'm talking with say they do not think it will happen this year. we will see about next year. >> one thing that is essential for a small potatoes still, maybe something ending up in the budget deficit talks, finance chairman baucus said this week jokingly that what if we give you more drilling in you give it a tax break. he said he was not here to negotiate. there is the potential for may be some compromise to give up some tax breaks if reopen of some regulations and make it easier to drill. there is always -- where there is a will, there is a way in congress. there is a wild card out there. that is the public. if they have $4 per gallon gasoline, that will

the ceos of the five giant oil companies from exxon mobil to bp were called before congress to answer a question, should they get the big tax breaks even as their profits rise to the stratosphere? take a look. in the first three months of the year, these five companies made more than $34 billion in profit and that's up 42% from a year ago and that's a total of $379 million in profit every single day. and that was the number in the room when john karl was there, watching the punches and counterpunches. tell us about it, john. >> reporter: those ceos ran into a buzzsaw of congressional outrage over gas prices, profits and tax breaks. with skyrocketing gas prices, come soaring profits for the oil companies, and uncomfortable questions about the billions of dollars in tax breaks they receive. just a break question, do you need the tax breaks? >> we're not doing interviews. >> reporter: with the profits, can you explain why you need the tax breaks? >> we're late for a meeting. >> reporter: but before the senate finance committee, they had to answer questions and take a beating. >> i think

, not transocean and we are working with bp, and if we don't reach'a settlement, i will be aggressiveaken care of and if we don't we'll sue them and that was a personal injury lawsuit and we have no involvement in that. >> clayton: glad to get you on the record on that and i want you on the record on amtrak, turning down the money for the railroad from orlando to tampa and, amtrak stepping forward, a company that has not made a profit in nearly 40 years and last year, 2010, looking at the numbers, $1.3 billion they lost and want some of the money and what do you say to amtrak? >> well, i represent the taxpayers of florida and that project they wanted us to do, we would have been responsible, cost over runs and i'm running into a $3.8 billion budget deficit and will not raise taxes and will never raise taxes and it was going to be cost overreturns and the operating cost like amtrak, to lose money every year and if we had to shut it down have to give the money back to the federal government and we aren't doing projects like that and that is the typical project where the federal governme

as we saw in the bp oil spill last year in the gulf of mexico, within 11 workers died and an estimated five million barrels of crude oil poured into the gulf of mexico. the risks of drilling off of florida shores bring extreme risk to our state in an already depressed economy and with unemployment in the state of florida still at 11%, the last thing we need is to endanger nearly one million tourist-related jobs and 60 billion tourist jobs in the sunshine state. drilling off the coast of florida is a misguided calculation. the risk to the environment and economy outweighs any potential benefit. i would like to see increased drilling in areas already open and increased funding in research and technology. i reserve. the chair: the lady from florida reserves. for what purpose does the gentleman from alaska rise? mr. young: i claim time in opposition. the chair: the gentleman is recognized. mr. young: i oppose this amendment. the underlying bill is focused on opening the outer continental shelf. this bill aims to fulfill the promise of democrats and republicans in 2008 to lift the moratoriu

and extend leases in the gulf of mexico areas affected by last year's temporary moratorium after the bp spill. >> in his comments mr. obama said that u.s. oil production last year was at its highest level since 2003. the u.s. last year produced 5.5 million barrels of oil per day. according to the government data the u.s. uses more than 18.5 million-barrels a day. the united states consumes almost 25 percent of the daily crude oil output. however, the u.s. has only two percent of the u.s. proven reserves of crude. >>> the fda has proved a drug to treat hepatitis c. in spite of clean needle programs and other efforts more than three million americans have hepatitis c. the trials show it cures more than 65% of patients when combined with two other drugs. the current treatment cures only about 40% of patients. and it can cause serious side effects. another new treatment is also expected to be approved later this month. >>> the national forest service will re-open 98,000-acres of land burned in the biggest fire in la history. the station fire shown in these pictures killed two firefighters,

your testimony says, and i quote, bp is already one the largest lenders of ethanol and the nation. my question is, why should oil companies, not just years beginning $6 million a year in tax credits for complying with an existing law to blend ethanol? >> that law was introduced as a biofuel into the u.s. and it has been very successful. we're not opposed to the transitional incentive being phased out. we think it is important for second-generation biofuels. >> im glad we are noting that. there is no question in terms of energy policy that often you need an incentive to get something off of the ground. clearly what he is talking about is that incentive made since the beginning, but it doesn't make sense now. i think it is constructive that you said you'd be willing to phase it out. i thank you. >> i think that we should all look at them. all the tax expenditures. all of the incentives to see which ones are more effective than others and we can get rid of a fewf them. it is a difficult question for all us. cholera about a hundred and 31 tax provisions. they are a nightmare. it makes

mckay, let me register a difference of opinion with bp. you all in your financial report in the fourth quarter last year announced that the gulf oil spill response cost were going to be approximately $41 billion, and that you reported a tax credit of almost $12 billion. now, for activities that cause such harm, does it not seem wrong that you would take as a tax credit lessening your taxes dollar for dollar on the payments you pay out to make people's lives right? >> let me first just comment that the -- we've pledged all along to meet every commitment under the law with the accident and the economic impacts of the accident. the $41 billion is a financial charge. we did not take a $12 billion credit. we will be following the law, following the tax code in terms of writing off standard business expenses as they occur. >> so you consider these as standard business expenses that you think that morally you're entitled to take as a tax credit? >> the ones that are under the tax code as standard business expenses, yes, and we will not write off