underinvestment in energy r & d in our nation. the names of the six members are in the written statement i'd like to provide for the record. >> very good. we'll include the entire report, in fact in, our record. >> excellent. thank you. i also should acknowledge that we received excellent technical and administrative support from the bipartisan policy council, an organization formed by four of your former colleagues. today i'm not able to speak directly for my associates in this project, because we are a hey highly informal group. on the other hand i think comments will reflect the entire views of the group. we have prepared two reports, the first of those had to do with the underfunding of research and development in the energy area in our country, both by the government and by the private sector. we also came out very strongly for supporting arpa-e which i think has exceeded most of our expectations to date. the second report we put out deals with the need for the government to involve itself in energy, research and development

augustine, in the report you have concluded that we can have the greatest impact if we focus on energy, r&d, others have said that the focus or the major impact should be on the deployment end. as we are trying to figure out how we allocate scarcer dollars and how we prioritize, what -- what part of the technology chain do you figure the -- we here in the government should be focusing on most? >> that's a difficult question. certainly if you don't focus on research, there will be nothing to deploy. on the other hand if you focus entirely on research there be no money to deploy the benefits so you need to do both. research costs a lot less in general than the development, deployment or proof of principle, proof of scaling step. and so it may than much more money's required for the latter, even though ideally i think the role of the government is more easily justified, focused on research. it used to be that the u.s. government, when i say used to, i mean two, three decades ago, the u.s. government provided two-thirds of the research and development spent in this country. today it spends ab

second, we should strengthen our federal energy r & d and commercialization ints stugtss and investments. our recommendations find much agreement with the recommendations of the american energy innovation council and with some of bloomberg new energy finance's thinking on policies to help private entrepreneurs and firms cross the so-called clean energy valleys of death. i'm happy to discuss those topics in greater detail in the q & a to follow but i want to focus here on subsidy reform. first, when discussing the role of government in energy innovation it is important to note that energy is a commodity like a bar of steel or a lump of copper. we don't care much about the qualities of the kilowatt hour of electricity or the gallon of fuel itself. what we care about are the products and services we derive from those fuels. while new pharmaceuticals or electronics command a price premium from customers by offering new vallue added features, new technologies must routinely compete on price alone right from the get-go. this is an extremely challenging task especially when facing competition f

it makes good sense to invest in energy r&d, that's clearly in our interest.nst our interest to keep subsidizing the same resources and technologies year after year without a clear path toward allowing those technologies to stand on their own in the market. to strike the right balance, will require reform of existing programs, possibly the phase-out of many of the subsidies that are currently in place. some experts believe federal efforts should be oriented more towards basic research and away from deployment, because in tight fiscal climate the government should spend on priorities that no other institution will fund. i tend to agree with that approach. i think when it comes to energy innovation we've got a lot of thinking to do, a lot of decisions to make, and i hope with the hearing this morning we'll have an opportunity to explore some of that. i appreciate the good work that has gone into the report. thank you, mr. chairman. >> our first panel is norman augustine, who is retired chair and ceo of lockheed martin corporation. he's been a witness before our

of public private drilling demonstration project by the energy research development agency with the research consortium receive partial funding and roversight for the federal energy regulatory commission committee to the discussion senator murkowski about funding funded by eight users or tax on gas transmission so we set aside a little bit of the fund in the way that mr. augustine mentioned to drive further innovation in that sector because it is an intriguing model. the early fracturing technologies were also developed by the department of energy and he which is now the national energy technology lab to the national laboratories role in developing the imaging technology initially to detect potential structures and collapses and coal mines and the was a key technology later applied to understanding the geology of shale deposits and where the factors whiteaker said private industry could figure out where to locate the drills and tractors and beyond the initial demonstration of the technology there was a pergola of time it was technically recoverable but prohibitively expensive compared to the more conventional extraction technologie

it makes sense to invest in energy r&d. that's clearly in our interest but it's against our interest to keep subsidizing the same resources and technologies year after year without a clear path towards allowing the technologies to stand on their own in the market to strike the right balance the will require reform as existing programs possibly in the phase-out of many of the subsidies that are currently in place. some experts believe federal efforts should be oriented more towards basic research and away from deployment because the fiscal climate the government should spend on know whether institution fund i can't believe cocaine to agree with that approach. i think when it comes to energy inefficient we have a lot of thinking to read a lot of decisions to make, and i hope that with the hearing this morning we will have an opportunity to explore again. i appreciate the good work that's gone into the report. thank you, mr. chairman. >> the first panel is norman augustine, the retired chairman and ceo of lockheed martin corpo

augustine, in the report, you have concluded that we can have the greatest impact if we focus on energy rimpact should be on the deployment end. as we try to figure out how we allocate scarcer dollars, and how we prioritize, what part of the technology chain do you figure we here in the government should be focusing on most? >> that is a difficult question. certainly if you don't focus on research, there will be nothing to deploy. on the other hand, if you focus entirely on research, there will be no money to employ the benefits. so you need to do both. research costs a lot less in general than the development of deployment. more money may be required for the latter, even though ideally i think the role of the government is more usually justified focusing on research. it used to be that the u.s. government -- and i mean two or three decades ago, the u.s. government provides about two- thirds of the research and development spent in this country. today is about a third. the problem is that industry that has picked up the two- thirds, spent almost entirely on development and is getting out

high drawl ig drilling and fracturing allows operators to produce ten times the amount of energy drilling kwu r fewer than 1/10 the number of wells. burning cleaner energy and more of it drilling fewer holes to get to it. regulatory decisions such as hydraulic fracturing are best made at the state level, and not regulated by a federal bureaucracy far removed from the issue. this is why individual states can better tailor to their specific needs since they have the experience and understanding of the hydrology infrastructure and other factor, you need to each producing basin. state regulators understand the needs of the communities that they regulate much better than a far-removed federal government and also have the specific technical expertise, resource, and experience. on march 14, 2012, now former director bob abbey testified in the senate that there has ban shift in oil and gas production to private lands to the east and to the south where there is lesser amounts of federal mineral estate. we have seen investment from public lands to other areas. of course, fracturing is because this is par

augustine, in the report, you have concluded that we can have the greatest impact if we focus on energy r and d. others have said the focus or the major impact should be on the deployment end. as we try to figure out how we allocate scarcer dollars, and how we prioritize, what part of the technology chain do you figure we here in the government should be focusing on most? >> that is a difficult question. certainly if you don't focus on research, there will be nothing to deploy. on the other hand, if you focus entirely on research, there will be no money to employ the benefits. so you need to do both. research costs a lot less in general than the development of deployment. more money may be required for the latter, even though ideally i think the role of the government is more usually justified focusing on research. it used to be that the u.s. government -- and i mean two or three decades ago, the u.s. government provides about two- thirds of the research and development spent in this country. today is about a third. the problem is that industry that has picked up the two- thirds, spent al

but in the current corners of england's countryside people's fears are no match for the energy giants either bennett r.-t. sussex. more weather story online sort of following a lot of late news in brief now an apparent protest against president assad in syria is a local universities killed at least. hundreds of arrested coups the latest pictures and verified video you seeing here showing the troops raiding the campus firing at demonstrators while students armed with knives also attacked a rally there's been an anti regime protest university almost daily. the trial of rags fugitive vice president has been postponed while his lawyers peel for a special court to hear the case terry go how should we deny his running death squads targeting government officials security forces and shia pilgrims he's currently seeking refuge in turkey of course the trial politically motivated hearing. on a lighter note is. taking the long way down leaping from a helicopter in a jet powered wing suit you flew over the brazilian capital taking a spin around some of the most famous landmarks and then making his way down safely

but in the quaint corners of england's countryside people's fears are no match for the energy giants either bennett r.-t. sussex. well remember there's always plenty more to check out on our website at r.t. dot com let's have what's lined up a few right now one of the half million tons of tsunami debris from japan is set to reach the u.s. pacific coast by. discover what its impact might be in the online story. of the most framed paintings in the world scream sold for one hundred twenty million u.s. dollars in new york and sixpence a bit more to the public option don't worry if you missed the chance to bid you can find out more. join me on a journey to the heart of the problem to a place is hidden from the tourist you're going to meet some real criminal insiders although they may not be the usual news makers you see on t.v. . today violence is once again flared up. these are the images the world has been seeing from the streets of canada. corporations are on the day. the be. several members are threatening to boycott the euro twenty twelve football championship of ukraine's treatment of its jailed for

but in the current corners of england's countryside people's fears are no match for the energy giants either bennett r.-t. sussex. the world's top news stories now in brief an apparent protest against president assad in syria as aleppo universities left at least four dead and seen hundreds arrested and verified video shows troops raided the campus firing at demonstrators while students are knives also attacked the. protests at university almost day. trying to write a fugitive vice president has been postponed while his lawyers appeal for a special court to hear the case should be denied running death squads targeting government officials security forces and pilgrims he's currently seeking refuge in turkey because the trial politically motivated the hearings next. it's been an attack on a cattle market in northeastern nigeria has killed at least thirty four this is a gunman armed with explosives began shooting before setting the market on fire. juries in jus a spate of violence a few days ago gunfire and explosions rocked the northern city of kandahar following clashes between the army and militants th

but in the current corners of england's countryside people's fears are no match for the energy giants either bennett r.-t. sussex. let me bring you up to some other world news headlines now in brief it's believed four people died hundreds more have been arrested after syrian security forces and students reported to be tax. rather reported to have attacked protesters in anti-government rally that's the latest news and verified video seeing here shows troops raiding the university of aleppo campus and firing at crowds demonstrating against president bashar al assad reports say the security forces action followed an attack by pro-government students on the protests there these are latest pictures or say the campus has been the site of almost daily rallies against the regime for several months. in libya laws prohibiting public praise of the late leader moammar gadhafi have been brought in by the ruling national transitional council punishment could be as much as life in prison for offenses deemed to be quote damaging to the state the censorship also prohibits indorsing the former leader's ideas in a serie

but in the current corners of england's countryside people's fears are no match for the energy giants either bennett r.-t. sussex. let's take a look at some other news from around the world now this hour in libya new laws prohibiting public praise of the late leader moammar gadhafi have been brought in by the ruling national transitional council punishment can be as much as life in prison for offenses deemed as damaging to the state censorship also prohibits indorsing the former leader's ideas a series of norms introduced by the revolutionary government head of elections in june. gingrich has officially dropped out of the race for the republican presidential nomination in us after losing five state primary elections last week he said he believes his rival mitt romney is a clear favorite to challenge president barack obama for the white house in november some commentators however claimed his support for romney during his speech was somewhat grudging in which one just two of the thirty one primary elections that have been held so far. and take a look at this is gravity defined done by a swiss devil know

but in the quaint corners of england's countryside people's fears are no match for the energy giants either bennett r.-t. sussex. remember there's always a plenty more to check out on our website r.t. dot com here's what's lined up there for you right now one of the. tongues of tsunami debris from japan is set to reach the u.s. pacific coast by uptown but discover what its impact might be on the online story. that's one of the most famous paintings in the world about monks sprit sold for a record one hundred twenty million u.s. dollars in new york the most expensive ever as a public option don't worry if you missed the chance to bid always find out more r.t. dot com. lou . several new members are threatening to boycott the euro two thousand and twelve football championship of ukraine's treatment of its jailed former prime minister yulia tymoshenko who claims she was beaten by prison guards. can't have the details . it certainly is getting darker and darker for key of in relation to the euro twenty two well football championship which starts in less than forty days from now and now the dutch governmen

but in the quaint corners of england's countryside people's fears are no match for the energy giants either bennett r.-t. sussex. the story been falling for a long time on our website as well as want to catch up and find out more about its online at r.t. dot com while the world's news no brief and apparent protest against president assad syria's aleppo university has killed at least four and seen hundreds arrested this unverified video showing troops raiding the campus firing at demonstrators while students armed with knives also attacked the rally there's been anti regime protests at the university almost daily. the trial of iraq's fugitive vice president has been postponed while his lawyers appeal for a special court to hear the case terry go house shimmied denies running death squads targeting government officials security forces and shiite pilgrims he's currently seeking refuge in turkey and calls the trial politically motivated hearing resumes next thursday. there's been an attack on a cattle market in northeastern nigeria killed at least fifty six witnesses say gunman armed with explosives bega

but in the quaint corners of england's countryside people's fears are no match for the energy giants either bennett r.-t. sussex. remember there's always plenty more check out on our website at r.t. dot com here's what's lined up for you there right now one of the half a million tons of tsunami debris from japan is set to reach the u.s. pacific coast by time but discover what its impact might be you know online story. and one of the most pained paintings in the world i thought monks scream a song for the hundred twenty million u.s. dollars in new york the most expensive ever at a public option or infamous the stupid you can find out more dot com. you know sometimes you see a story and it seems so you think you understand it and then you glimpse something else you hear or see some other part of it and realized everything you thought you knew you don't know i'm sorry welcome to the big picture. they've escaped this is psyche to greed the room. to. me to feel. civilization notice their absence. but is there life outside civilization possible. down the official auntie application on the phone oh i pod to

energy. my remarks represent my views alone and not the corporate position of either bloomberg r bloomberg new energy finance. the report examined the various challenges facing technologies looking -- technology companies looking to scale up while driving their costs down. other studies have since explored this area in greater depth. the most notable has been the american innovation council's work, which examines the same valley of death conundrum, but with a focus on american competitiveness. the clean energy sector has seen significant growth in recent years. new investment in the industry rose to $263 billion last year. in the fourth quarter of 2011, our firm counted the one trillion new dollar invested in the sector. we have seen clean energy technologies making important progress. the price of a solar modules has dropped by more than half in just the last 16 months. the efficiency wind turbine continues to improve. the price for lithium batteries are starting to take down. a substantial part of this process is a result of innovation. as production of this equipment is cramped up, per unit

you take a -- you can supply energy to your neighbors and every r everybody seems to like that. that technology i can't explain it but it does work. it really coming alive here. i know the state of pennsylvania. that's why i can say pennsylvania. i haven't been to other states. i talked to an older gentleman from lancaster. he's a guy that got me started on this whole thing. i did a lot of research, a lot of work before i got started here. i took a lot of digests and duplicated and made something that turned around a pretty good profit. we sized or digester for 1,000 cals -- >> it's a big part of agriculture, especially in the dairy industry and hog products here. we can actually make renewable energy. it's a win-win for everybody and for the community and the economy. we power right now about 80 and 100 houses, plus run the whole farm. that's kind of amazing technology when you take cow manure, which used to be a waste product for us, people turn that into a commodity. it's another amazing technology. the heat from the generator is where we make a lot of our money off of. we go

that have the most leverage to natural gas are going tonight range resources, southwestern energy, you will r they've been hit pretty hard here but on a pure leverage basis the natural gas are the highest levered or most exposed to higher gas prices apart from chesapeake. >> robert morris, thank you. from citi group on chesapeake. josh brown, by virtue of your question, does that mean that you would not buy chesapeake shares here? >> i've been screaming to sell this thing since 2002. one of the cardinals rules when you manage a portfolio is any kind of accounting red flags or questions or any kind of issues with top brass, you just sell and you take the risk that you'll be wrong. but usually you're right. there are so many publicly traded companies, so this is a name that i would never be in until the smoke clears. i don't care if it is the greatest opportunity. i'm not going to be able to do the due diligence to weed out the good from the bad. i let someone else play that game. >> steve cortez, you willing to play that game? you can't escape the overhang on the stock this has become and it e

outrage but in the corners of england's countryside people's fears are no match for the energy giants might have been it r t sussex. the whole story is one we've been following at length from the web site r.t. dot com in fact while you're there for a check that out there's a lot of other stories as well latest top pictures of the day these stories might interest you right now one and a half million tons of debris from last year's tsunami in japan is set to reach the u.s. pacific coast were appalling by october discover what its impact might be story it's taken that long to get across the ocean and one of the most famous paintings in the world ever screen has sold for wait for it a record one hundred twenty million u.s. dollars in new york the most expensive ever than at a public auction where if you miss the chance to bid you can find out more of course on our web site artie dot com. this is sign. to greet the room. make. civilization notice their absence. but this is their life outside civilization possible. to. join me on a journey to the heart of the problem to a place is hidden from the terrorists you

in the current corners of england's countryside people's fears are no match for the energy giants might have been it r t sussex. there is aiming business live from moscow in the military now and the markets are still down why is that well for a lot of reasons mainly on worries about what's going on in europe because mario draghi the head of the european central bank wasn't talking about the situation in the euro zone and he said that basically the situation is becoming more uncertain and more downside risks so. it's pretty dramatic drop of around two dollars per barrel for light sweet bread in the u.s. markets we're also seeing a batch of mixed days are coming out although mortgages there are all time low rates i mean for mortgages thirty year mortgages at the same time jobless claims have come in with a decline that's also good but the service sector has shown a slowdown and therefore we're still seeing a negative picture of them both. over in europe are trading is drawing to and with a full see up slightly down and this is. news that spain managed to place two and a half billion euros worth of. born

in the quaint corners of england's countryside people's fears are no match for the energy giants might have been it r t sussex. and dmitri joins us with the business news and it seems all prices are going deeper and deeper every hour what's going on well a lot of action is going on mainly fears about what's going on in europe as mario draghi says the situation is becoming more uncertain and downside risks are increasing therefore indeed we are seeing oil prices red with with thinking of the . two and a half dollars per barrel of brant is declining two dollars per barrel also we've heard statements from the oh that. prices are too high and that supplies should be loose. in the united states we are seeing also a negative picture with the nasdaq plunging even deeper now more than a one percent decline in. the dow half a percent this is on mix that we've got the housing market seems to be reviving with thirty year mortgage rates at their lowest level ever but. same time the service sector is slowing down its growth and therefore the reaction we're seeing right now. over in europe for the session ended on

in the current corners of england's countryside people's fears are no match for the energy giants might have been it r t sussex it's a story of following a lot of this challenge want to touch it was more as well come on our website r t dot com couple news stories in brief the trial of a fugitive vice president's been perspire own while his lawyers appeal for a special court to hear the case now hashimi denies running death squads targeting government officials security forces and shiite pilgrims he's currently seeking refuge in turkey and calls the trial politically motivated hearing set to resume next thursday. there's been an attack on a cattle market in northeastern nigeria it's left least fifty six people dead witnesses say a gunman armed with explosives began shooting before setting the market alight nigeria's enjoyed a spate of violence just a few days ago gunfire and explosions rocked the northern city of cairo following clashes between the army and militants. it's twenty four half minutes past seven o'clock pm moscow time thursday evening business alive and now with dmitri medvedev high they'r

in other world news here on r t the international atomic energy agency chief who's been visiting iran says the country has agreed to an examination of its disputed nuclear program and he claims the deal involving u.n. inspectors will be signed quote quite soon it comes at less than a day after the u.s. senate imposed fresh economic sanctions on the islamic republic there are western fears that iran might be trying to develop a nuclear weapon of terror and insists its atomic program is only for peaceful energy purposes. a real crash in southern india has killed at least twenty five been injured dozens more investigators believe that the driver of a sleeper train broke a signal and collided with a goods train three passenger carriages overturned many were trapped inside it was just july last year a packed express train derailed at high speed in the state of. a killing sixty nine . a massive rainstorm has caused flooding and power shortages in northeastern france with one person found dead in his home a downpour equivalent to six weeks rain fell on monday night around nancy with water re

what's the source of energy making the volcano do its thing? - begin with r. - radioactivity. right, radioactivity, honey. radioactivity. and down there, there's a lot or a little? a lot. yeah. a lot of people think radioactive is something new, huh, new? radioactivity has been around before the world got here. this whole world is hot because of radioactive decay. next time you bathe in a nice hot spring, you say, "this is nature's hot water, honey." guess where that nature's hot water gets its heat? radioactive decay down underneath the ground, see? and so that--yeah, hot. that's where the heat comes from. natural? yeah, it's natural. it's been around a long time. yeah. so we talked about half-life in terms of how long does it take for half of the radiation rate to cut to half. or how long does it take for half of the atoms to decay, see? if you start off with something like some pure radioactive substance, sometime later, that substance will all convert to something else. like all the uranium that exists in the world today will one day be lead. lead, whether the world surviv

energy and money to find out who it was. they called a conference call and investigated and within two days they caught the murderer. two years ago we lost two participants to our youth cen r center, and it has been two years and it is unfortunate to say that sfpd did not invest the same time, energy or anything into those two murders. it has been two years until this day both murderers have not been found. number three, i would like to talk about the revitalization of the broad street corridor. we would like to open up more small businesses because we have a lot of san francisco commute ers commuting from here out to wherever and it would be nice to have a pizza place open or like a dry cleaning place open so they can stop by. in addition to that, falling back into the first point, it would open up more youth moment units. that is it. we understand your priorities and we would like to accommodate this and work with you guys. we are happy it talk more. so if you have any questions you can contact myself or guinn, and others who work with the inner city youth. >> i have a question. when you talk about broad street and revitalization can you give us a cross street? what spec