i think gas proems best hope is to sell more gas or russia's best hope is sell more gas in the east using the new and existing pipelines and the western route is something in realistic term that is out 2030's before we see gas coming from the west siberia. >> the western route is where the lack of chinese comment is making us question. they are talking about the rate to get it up but drawing gas from a pool that is western siberia is precisely what the chinese don't want. it was specific that besides the determination of the route is the definition of those as the source of the gas which raises the suspicion in my mind that maybe they are going to try claw upstream eventually. the supply from china and if they develop the field with the usually way there might be a question down the road to bring up the question of equitly. >> tim and airial. >> thank you. i am tim with brookings. i would like to ask a question. you have hinted at the answer in the previous response but i would like to learn more about europe's desire to diversify supplies. it isn't new and it has been diversified in the

how quickly can we get american natural gas to mark -- gas? we have a responsibility to take care of america and americans. that is in our national interest. that is our first responsibility. when there is economic benefit and diplomatic benefit -- strength that comes from x port of energy, this is one of those issues that i continue to ask tom a why has it taken so long? that is a long statement. let me start this conversation. depending on the different programs, it has taken 11 weeks or eight weeks or -- there are different times to get permits. the initial one, it was past approval. it took eight months after the application. 29have had some now that are , 27, 23 months after the application. is this process getting faster? i know you are working through it. could be doe be more efficient? >> thank you for the question. know, weall, as you are working through the queue on a case-by-case basis. the first application took more time because we had to do a full study. then, it went of work has been made on the applications. say is that we have

on soviet natural gas. outstandingost books on this issue that i've ever seen. without further ado, let me introduce jonathan and he will kick us off, and then we will have presentation from jim, open commentary but leaving a lot of time for questions from the audience. >> charlie, thank you very much. thank you all for coming. we appreciate the opportunity to launch the book here. in terms of protocol, as far as the oxford university press is concerned, the launches in london, so we are not really here but this happens to fit really well. it is the first time we've presented the book in public this way. we come from a very small institute which is part of oxford university. the few people in a european university doing research on the deeply unfashionable subject of oil and gas. you can see the title of the book. i'm just showing you the structure because we are just going to give you pretty much a snapshot of a few issues, not all of these issues, although we are happy to talk about anything in the q&a. w

it doesn't have to be narrowly focused often gazprom or russian gas or gas at all. i speak as a consumer. there's no way i can envision knowing at least a fraction of what's in that book, but of the book and i can go to it. i think it's going to be a wonderful asset for all of us. i want to also just make the point, ed's made it to some extent, that despite the title of the book talking about markets, and jonathan's remarks about the complexities of supply and demand -- complexities of supply and demand, competitive markets to which then russia has to react, the book is more than just about the complexities of markets. it's also about the complexities or as the terms keep coming back in the book, trying to balance different interests, trying to resolve the tensions between different interests. this is not between supply and demand. this is between largely the political imperatives, the political demands that are placed on the russian gas sector and gazprom in particular to resolve that. intention with the commercial demands. as the book points out there are three de

none of that will change the gas tax. instead the higher corporate taxes to fill the funds shortfall. as the administration does not want to ask people to pay more at the pump. >> it may just be human nature to assume that the most popular source of revenue maintaining roads, bridges, rails, tunnels and so on is somebody else. today there is a lot of need and not enough money, and this time on inside story we're trying to figure out what will work. joining us from that conversation, . >> let me start with you. is there a good figure that people who follow this business closely and in this part of our common life closely work with when we talk about what it would take to fix the things that need fixing in the near term? >> but it's often in trillions of dollars, but that doesn't mean that every project has to be funded at harvard business school. we're talking about the need for strategy, the need to set national priorities, and to get the private sector involved in helping finance that states and localities want to get do

a facility to compress natural gas? it was going to be to import natural gas now it is switched and to be to export. >> conventional wisdom of years ago was we need to import lots of natural gas because we weren't going to be able to provide it all. they built a bunch of facilitiefacilitie facilities along the ghost coast to import natural gas and now they have all been or all in the process of being flipped over so we can export. the next thing is exporting oil. that could come as well. >> with the question back there. >> this is kind of a stupid question may be. >> well, thank you. >> i'm an expert at that. peak oil, i forget the guy's name, cupboard or something. in san antonio, he predicted the end -- it was a san antonio bank, good history. i recent talk to somebody and you don't become he said see, there's a problem with peak oil. that was not true because with plenty of oil now with shale. i said i don't think so. you're going off to the side, mopping up what's left over. >> hubbard had a very simple prediction.

that are happening in gas. edges slightly different. big change from days were open dominated the market new players and with most opec countries today producing maximum capacity for variety of reasons some for such consent for clinical instability, so for technical reasons and some because that's the most they can do. the question of what happens to the market if the united states starts exporting is one that is fascinating those who follow the energy market. >> let me complete that thought. prices drop worldwide. if we start exporting. correct or not correct? >> i think it would depend on the -- i've learned one thing in this business is that any prediction on oil prices those who make those predictions are usually regret them later. >> all it takes is a little cross-border war somewhere in the middle east and it changes everyone's gas prices. i do understand that that is their and thank these i would say in the opec countries that the united states could become an exporter? >> i think they are watching our d

for more immediate gas. as far as ukraine, we've had this conversation for a while about the interest in ukraine to build an lng facility. not really to build a terminal. that's why it's too shorter. it is to bring an exploding lng facility, a boat that would come online. so it's a little bit different. the concern is what is proxy net as you said in the black sea is exactly what you said. turkey does not allow lng tankers to cost through. they maintained that it's a national security issues. this is a long-standing position that came up several years ago. >> are you guys working on a quick >> are you working to educate the fact two things probably aren't in a blowup the way they think they are? >> we are very frank, open and honest conversation about lng trade it in general what it means to have open access trade. the positions are theirs to have. >> certainly. we don't control turkey. turkey has been a good friend and ally to this country and hopefully we can bring them along. mr. smith, in a previous hear

gas would be substantially more expensive than cheap russian gas. most experts agree that exports from the u.s. would be far more likely to go to asia for prices that are higher than in europe. that is not to say that the u.s. should not market gas in europe. taking note that conducting foreign policy via energy exports is complex. how can we help ukraine, given these constraints? a number of efforts are underway. the u.s. is working with you and the imf on a number of efforts to move europe toward greater diversity. reversing flows of natural gas from existing type line into ukraine and further developing ukraine's natural gas resources. encouraging energy efficiency rarely makes headlines. in ukraine, it could be a game changer. ukraine produces as much gas as it uses. the ukrainians are notoriously profligate energy users. banks get government energy subsidies. by implementing efficiency measures, ukraine could be nearly self-sufficient. i think these efforts to use american resources to bolster foreign policy are admirable. it will become increa

so natural gas prices are low, which means we want to use it, but we have to move more gas to our endpes that are pretty old. sometimes the gas is flowing different directions. so our infrastructure is not designed for today's energy production, energy needs. >> and given that it was designed for an older system is there a certain responsibility that you think some of these companies have in terms of helping build up the infrastructure that is carrying their gas. >> that's a good question. they are different companies in many cases, so we need to get everybody involved. government plays a role in funding infrastructure. so we need to reinvest, do it more quickly, make it more safe. we need government and the midstream companies who build the pipeline and the oil and gas guys, they all have a stake in getting it done the right way. >> if we don't build up the infrastructure are we going to see more incidents like in new york and other cities like that as time goes on? >> that's the risk. natural gas burns really easily, and that's a nice feature, but it's also a safety risk. and we can

they regulate oil and gas. it's a vestigial name.. on the part of texas state government that regulates oil and garks that's just what texas needs, right? beating the tea party guy, pulling off that miracle puts the oil and gas guy on the ballot for the general election on that seat in november. he'll be facing off against that rarest of all texas species, a democratic candidate for the statewide office. the democratic candidate's name is steve brown. and steve brown has spent his campaign for that office meeting with the people of north texas, to whom the oil and gas industry has bequeathed hundreds of earthquakes. and meeting with people in south texas to whom the oil and gas industry has bequeathed air that is too dangerous for the inspectors to measure. in the raw headlines of texas politics nobody thinks that steve brown has got a chance. but at some point when the water hoses are catching fire doesn't even texas start to worry that maybe things have swung a little too far? it's more than just a meal, it's meow mix mealtime. wit

not only oil and gas but many others, but this point i want to make is oil and gas, a study that was done in alaska can produce around 54,000 jobs, over 50 years of production in the arctic. if you look at it from local and state and government revenues over the 50 years, well over $100 billion, plus another $150 billion in payroll. another issue which is important to alaska but also to this country is that liquefied natural gas export. a project can produce many jobs and create huge economic opportunity throughout this country. it's projected a project that we want to move gas off the north slope write down and distributed around the world, we estimate that project will be about $65 billion for development. an 800-mile pipeline, liquid if i occasion plant and marine terminal. the largest, most expensive energy project in north america. up to 15,000 design and production jobs. up to a thousand jobs during an operation. at full, the l.n.g. export capacity of 2.5 billion cubic feet a day of natural gas sales to overseas buyers control more than $12 billion a year. the steel pipe alone

after transport the gas there.68.paying around they're saying our gas prices should be around that. there's no way we should be paying such a high premium for russian gas. that is what they really dislike. that is quite a punitive level of payment. to pay says you have this because you haven't been paying your bills. you are a bad customer, and that customers pay a premium. this is going to be a very long dispute between the two. gazprom is in arbitration often with its customers. recently, the success has been that gazprom has to discount its gas. it has been in arbitration with rwe. gas.got discounted they haven't had a good time in arbitration, and certainly, if you look at those gas prices you will say this is punitive, they would need to come down to be more in line with every -- with what everyone in europe is already paying. ,> if the taps were turned off they have been stockpiling, how bad would it be for the ukraine and for the rest of europe? >> it would be fairly bad for ukraine because you put gas in st

oil -- me is a formal former oil and gas, natural gas trader.bout that meeting between vladimir putin and his chinese counterpart and the lack of agreement. what effect will that have? >> it isn't over yet. i think they will decide. it comes at a very important time for both sides. the russians need another market for their natural gas. they want to use their natural gas as a fulcrum into what is going on with the eu and ukraine. and that becomes a lot easier if they find another source, another customer for natural gas supplies. the chinese are the perfect ones to have it. they have been dragged -- dancing around this contract for 10 years now. it.the chinese also need they have had a lot of problems with smog related incidents. in the eastern cities they have had to move away from an economy tethered to coal. a new natural gas supply from russia will make a very big difference. this is a very big deal. it will change everything. i think it is a game of tag. who will be the first one to flinch on these negotiations? that is where it has been go

gas prices average about $3.65 a gallon, roughly in line with where they were last year. the bad news, prices at the pump may edge higher as we head into the summer. >> we're planning a vacation regardless of the 20, $30 extra in the trip there and back. maybe it's $100. it's not going to affect our plans. >> if it's lower, absolutely. >> reporter: overall, the higher gas prices are not expected to affect travel plans but if the national average shoots up to more than $4 a gallon, watch for americans to start. >> it is what i feel and most economists feel there is a true negative effect on the rest of the economy where a lot of money, consumer money that used to go in other places is now going for gasoline. >> reporter: perhaps the best news this memorial day will be for those flying. after a winter filled with record cancellations, the airlines are expecting a smoother summer. despite airfares, hotel rates and rental car rates rising 1%, it's expected to rise to 2.6 million. >> the number of travelers this year is 2.4% greater than the rolling ten-year average in terms o

the united states is now the largest producer of natural gas in the world and largest producer of gasnd oil in the world. it's projected that the u.s. will continue to be the largest producer of natural gas in 2030. for six straight months now we have produce more oil here at home then we imported from overseas. so that is all a good news story. go to the next slide. domestic energy production as boosting economic growth overall in 2012 and 2013 it accounted for .22 and .24% of growth which is the highest on record. if you go to the next slide, as you can see that's had a direct impact on employment. we have added 133,000 jobs in the last three years in the oil and natural gas extraction sector and those numbers are projected to continue to grow. next slide please. but at the same time as we been producing more oil and natural gas at home we are cutting our energy usage dramatically, improving energy efficiency. that's what part of what the president means when he says that we have in all of the above energy strategy trying to produce more domestic energy but also using it in a much m

gas by 2018. today domestic natural gas prices are lower than international prices deliver lng to overseas markets. as in the united states, demand for natural gas is growing rapidly in foreign markets. we primarily to the developed the department and has received a growing number of applications domestic produce natural gas to overseas markets in the form of liquefied natural gas. the department authority to break a leg the export of natural gas arise from the natural gas act which provides to statutory standards for processing applications to export lng. by law am a applications to export natural gas to nations with which the united states has a free trade agreement that provides a national treatment of trade and natural gas are deemed consistent in the public interest and the secretarsecretar y of energy must grant authorization without modification or delay. as of march the 24th, the wii has approved applications. applications to ask for natural gas to non-fda nation's the secretary must grant

here is a mock up of a gas hear the on a house. where would we find the gas meter? >> it should be in your garage. everyone should be familiar with where the gas meter is. >> one of the tools is a wrench, a crescent wrench. >> yes. the crescent wrench is good and this is a perfect example of how to have it so you can loosen it up and use it when you need it. >> okay. let's go inside to talk about fire safety. many of the issues here relate to fire, for example, we have a little smoke detector and i see you brought one here, a carbon monoxide smoke detector. >> this is a combination of smoke and carbon monoxide detector. they are required in single homes now and in apartment buildings. if gas appliance is not burning properly this will alert you before the fumes buildup and will affect you negatively. >> this is a battery powered? >> this is a battery powered and it has a 10 year battery life. a lot of times you may have one or the other. if you put in just a carbon monoxide detector, it's important to have one of these too. every house should have a fire extinguishe

bills you know i haven't paid my gas bill for several months and i have my gas being cut off i'm the one hand they're protecting provoking bush on a daily basis since february and other hand they seem to want to have cheaper gas from russia they got the money coming in from the i.m.f. and the e.u. let them pay their gas bills and pay the market price for gas and so i think there is a split now in the e.u. hierarchy between those people who want to carry on this ludicrous policy revoking russia over ukraine and those more realistic people who realize that is not in europe's best interest not the effects dress and now the time of compromise. or while the argument of the gas goes on the ukrainian government is continuing its military operation in the east of ukraine fresh fighting took place near the city of kramatorsk violence erupted as a self-defense souter's third try to stop heavy weaponry moving towards the town with some russian journalists caught up in the crossfire tonight is really good because in the region for us. fighting around kind of tourist caste been happening all you

president putin nears a gas deal with this neighbor. their set aside an agreement 10 years in the making. credit suisse pleads guilty and pays up. the swiss bank will pay 2.6 billion dollars to end the u.s. tax evasion probe. welcome to "countdown." i'm anna edwards. it is 6:00 here in london this tuesday morning. bloomberg reporters are standing by across the world, ready to deliver the stories that will drive your day. ryan chilcote is in moscow to walk us through his exclusive interview with dmitry medvedev. stephen engle is in beijing to tell us what is topping the agenda. has thenathan ferro details on the guilty plea by credit suisse with u.s. authorities. .acktrack top story in an exclusive interview with bloomberg television, russia's prime minister dmitry medvedev sat down with ryan chilcote to talk about everything from the ongoing conflict in ukraine, the impact of sanctions, and russia's relationship with the united states. ryan chilcote joins us from moscow with the details area brian. >> high, anna. this was the prime mini

that would allow the gas to arrive at shanghai at the same price as the gas that is piped from centralsia. it would be competitive with ln g, coming up -- coming in from north america. that is the price of the deal to be got -- to be done. with the ukraine crisis, russia desperately needs something. >> does that mean the chinese can drive a harder bargain? >> clearly, they can and there will be commentary out there in the market if we get the news today. you could say we are writing for a fall in that respect. the lastm shares couple of months, they hope that the deal will be signed. >> absolutely. there could be disappointment in shanghai today or tomorrow. announced with great fanfare, the price will almost certainly not be disclosed. the parties will agree not to disclose and there may be suspicions that the russians have been driven to an uneconomic price to show they have alternative economic and energy options in the east. au heard dmitry medvedev call potential new cold war. to get those tax revenues for the shareholders of gazprom, that would be a risk. in the deal is struck ne

gas prom is running their policy.that's who russia is -- that's who putin is meeting with every day. the bigger you set this, the more frightened they will be. can you give me some hope here that with the e.u. we're going to announce some huge goal for the ukrainian economy to transfer to -- to transfer over to a much more energy efficient model? >> senator, energy efficiency is one of our main lines of effort with the government of ukraine with our assistance. if you've ever spent time in the winter where the heat's blazing out of the radiators and all of the windows are open in government buildings, this speaks to the inefficiencies. as you know from your own work, fixing a problem like that is a medium-term problem. it involves giving them new technologies, it involves giving them lots of advice about tax incentives and the kinds of things that create change in the way buildings are heated and the way energy is used, but it also speaks to -- so we're working on all of those things and we have part of the -- our a.i

natural gas is also burned off here. and while it's not clear if this so-called flaring affects air quality, so much of this goes on in the baakken that it is adviseical in space. >> these have been going on for two years. we don't know what the effects are of these fumes. >> since the well was put in the couple has complained of intermit ent are health problems. >> burning eyes and sore throat and headaches. >> land owners the have largely forfeited their right to the drilling. >> to sell their farm or keep their minerals when they sold their land. these are choices prior to the oil and gas industry coming along. >> but home buyers today should also take note. >> it is critically important to ask, do i get the mineral rights with this? are the mineral rights quead cod with this property? you can negotiate to make sure that the rig is not set up in your backyard. >> energy companies work with surface owners when building wells or setting up fracking sites. >> when they lease their minerals to the developer, then the deve

it signed a 30-year deal to buy natural gas from russia. on this edition of the program we're talking about what this deal and other cooperation means for both countries and the united states. still with us from denver the director of the university of dpen ver's center for u.s.-china cooperation. in the washington studio, david sedney. he was deputy secretary of defense for east asia from 2007 to 2009. in moscow moreno, a research fellow at harvard's geopolitics of energy project. professor, can china and the united states remain rivals and not enemies long-term? >> i don't think neither of the countries want to be enemies to each other, because the second largest economies have to work together. but the current international environment from the chinese perspective, they're so worried that they have a hidden agenda. the u.s. will not want to see china rising as a peer power. so we have a lot of concerns about the u.s. intentions. in this case these kind of deals with russia really put russia in the forefront to confront the united states.

by the time this gas begins to flow in 2018, the united states will probably be the biggest oil and gas producers in the world again. >> will give us a large economic advantage. in addition to all of the points you made in your report, ray, i would add that the chinese are very strategic. they look ahead not onor two years, five or 10 years. and this very good price they are getting from the russians on gas helps cement china's am? growth for years to come. >> is this more than a routine business deal? >> i think this is mainly a commercial deal, but it has high implications. it was scratchily for russia to find a new marketcruelty for ru find a new market. >> it was enhanced after the crimea crisis. if you think that 82% of russia's extra ref notions depend upon hydro car bons, russia is desperate to find another market. china is a natural answer. so, it is important but it has a strategic value as well. >> professor, is it possible to overthink this? i mean, china needed something. russia has it, and it may be we are making a mistake in overreading this? >> i think it is much bigger t

dollar will give way to having oil and gas price in something other than the u.s. dollar so then the price of gas in america will go from forty five dollars a gallon to ten twelve thirteen dollars a gallon the way it is and europe and then america will be like what how did that happen who do we blame for that who should we bomb because what do we do didn't john mccain told the pros to go it would never go down bozak at all and john mccain you've got to go kill kill kill people in gaza because america's paying ten dollars a gallon gas to your price tag over there palestine yeah make sense of it all john mccain you're. luke so the shell oil in america they break even point is eighty dollars a barrel in iraq just to pump oil is twenty dollars a barrel that's all they need so it's four times more the price is needed for the us to stay even the us oil industry is also due to spend two point eight trillion dollars by two thousand and thirty five just to stay even whereas the middle east for example will spend a third less and produce three times more with that same time

of natural gas.t is driving this relationship. this is a 10 year deal in the making, and it took 10 years really tells you how troubled the relationship has been. >> we look at the distance between beijing and moscow, what do we need to know this morning about the history and in the presence of that relationship? late 1960's, there was a border skirmish between china and the ussr, and the story play there has been a lot of fission between the two countries. russia is underpopulated in the east, china is not under populated anywhere, and there are great fears of china expanding to the east. broader zone is a new soviet union. >> we are very far from that. if you look at central asia, they are already supplying energy to china and directed to china and not toward russia. the baltic states have gone to europe. russia is a regional power. it is an important player on global energy, but it is not a global superpower. it is not a new cold war. >> our guest host is chris marangi of gabelli. should not aid n

the trapped oil and gas is sent back to the surface, mission accomplished.the flip side, environmentalists have called attention to side effects like earthquakes and contaminated water among other problems. today i want to talk money. you might assume you own the land where frac-ing takes place. the people who own the land where frac-ing takes place are enjoying a financial windfall. but that's not the case for many hand owners who don't also own the mineral rights to your property. and unless you own those rights you might find an oil rig on your front yard whether you like it or not. >> reporter: richard works as a ranchers and farmer in north dakota. but even though he has title to this land, he doesn't own all of it. instead richard like most people in north dakota only has rights to the surface. most of what lies beneath was soldiers ago to a prior owner. that means richard has little say over what happens beneath his ranch, which just so happens to sit atop of the bakken, can an estimated $118 billion dollars worth of oil. but richard is just one of th

or no gas in the tank.agic tank should only be used in an emergency. >> but it's magic. >> great use out of that as a teenager i drove like an idiot and ran out of gas frequently. >> glad you don't do that anymore. >> let's return to the forecast one last time. >> yes. >> let's start with a time lapse view starting with blue skies. just a few thunderstorms looking live doppler 7 we can see showers trickling down from central sierra into central valley, winding down now. tomorrow, state wide, looking for thundershowers to develop once again in southern sierra. there will be other showers south down into desert areas of southern california most of the state sunny, dry here we'll have mild to warm conditions tomorrow. with fog sort of lingering at the coast into afternoon hours. high temperatures ranging from low six #s to mid to upper 80s inland. it's going to get warmer. here is the accu-weather forecast. memorial day weekend bringing us highs into low 90s in spots. monday, memorial day, warm, nice, and sunn

or no gas in the tank. magic tank should only be used in an emergency. >> but it's magic. >> great use out of that as a teenager i drove like an idiot and ran out of gas frequently. >> glad you don't do that anymore. >> let's return to the forecast one last time. >> yes. >> let's start with a time lapse view starting with blue skies. just a few thunderstorms looking live doppler 7 we can see showers trickling down from central sierra into central valley, winding down now. tomorrow, state wide, looking for thundershowers to develop once again in southern sierra. there will be other showers south down into desert areas of southern california most of the state sunny, dry here we'll have mild to warm conditions tomorrow. with fog sort of lingering at the coast into afternoon hours. high temperatures ranging from low six #s to mid to upper 80s inland. it's going to get warmer. here is the accu-weather forecast. memorial day weekend bringing us highs into low 90s in spots. monday, memorial day, warm, nice, and su

>> well, russia is one of the world's largest gas reserve holders. it's a large producer of gas.ely asia is a growing market for gas. russia is already in europe. it's entrenched in the european economies. it supplies, you know, a sizable amount of gas to europe. but if it's going to grow its gas supplies it needs to diversify to asia-- asia. and china is one of the growing markets in asia. an rush ha-- russia has been negotiating this deal for nearly a decade. and i think what's interesting is in that space of time turkmenistan in central asia has moved in to become a major supplier to china. and so in the end, turkmenistan has captured a sizable market already in china. and i think russia was looking to finally come to the table and make a deal and it didn't happen until 4 a.m., virtually before, you know, putin was leaving shanghai, this deal was concluded at the very last minute. >> brown: and it also, didn't happen until this moment that this geo political moment we're in, right, with russia and the u.s. and the west. >> exactly. they have been haggling over this deal for te

>> yes, when you burn natural gas. but despite the environmental and economic benefits including more jobs, lower prices for electricity for americans, a renaissance of manufacturing in this country, despite that, there are major problems, real problems and very legitimate concerns with the way we've gone about exploiting shale. >> charlie: what's the concern? >> the concern is that it's been done, in some cases in a very sloppy way. it's contaminated water not from the fractures but from spills at the surface where chemicals get into people's aquifer and hundreds and even thousands of cases, or air pollution coming out of these wells that has sometimes made people sick. charlie, i was in washington county, pennsylvania, not long ago, and i met a woman who told me a story that she had been forced to move out of her farm. her son was living down the street safely away from the noxious fumes in order to get on his school bus. she was living temporarily out of her car. so there are real problems. i've seen them myself. >>

more gas. a producer is left with the unfortunate choice of either leave the gas in the ground or bring it out and sell it at an artificial low price to what they could receive in the broader sense of a global market. if you open up the export market. similar to allowing crude oil exports in the united states, if you open it up, you snenivize and -- incentivize and create a return. will it increase prices? perhaps, but not to a level that would cause a deleterious impact country. >> you know a lot of that. stephen schork, editor of schork report." >>> the city of new york has a texting offer for buffs, all you need is a grand. i'll tell you about it. and why hire a pro when a stranger can do it for rest. what the raise of air b&b says about our economy and culture, that and more. keep it >> you followed their journey across the border >> it was heart wrenching... >> now see how it changed the lives of the people involved. >> i didn't go back to the person that i was before i left... >> an emoti

there's lots of gas in the gas tanks. we just can't get it out of the gas tanks.. >> reporter: it's a complicated process to rewire the control system. mary olson is the reporter for the west county citizen. she is on it. >> this is the talk of the town. although we have many interesting issues out here. >> reporter: lots of folks are coming by looking for gas. >> no gas anymore. >> we're going to drive up to bodega bay and get it up there. >> reporter: yes, bodega bay has gas but it's a long way away. the closest gas station is 12 miles south in bolinas. if you came into point reyes station and was surprised there is no gasoline and then came here to bolinas to get some, you're in for another big surprise. a really big price. more than 5.5 dollars a gallon. they say the extra dollar a gallon goes for local charities. >> that's why i'm not filling up. only going to get three gallons. >> having gas in your car is a good thing. >> having a full tank of gas before you drive out to the coast is a great thing. >> reporter: don ford, kpix 5. >> here's another tip for dr

a different gas field to the one that supplies western europe with its gas. they've got to build a new eastern pipeline as well. that's going to take obviously some time. it does mean in some ways, i guess, russia doesn't need to be so dependent on europeans buying its gas. we're in a period of time, as you know, david, right, with the tensions with ukraine and, of course, the subsequent tensions between russia and the rest of europe, many european countries have been trying basically to become less reliant on buying russian gas. it's an interesting scenario at the moment. >> part of it is business is business. the other part, of course, huge strategic importance as well. if you make an alliance with china on this sort of scale. >> china and russia, you know, for russia china is its largest trading partner. i think last year, i was looking at some of the numbers, they've been trading -- i think it's about $90 billion in 2013. so it's all about, yes, closer ties and trading ties, economic ties between russia and china. but it's interesting because, you know, w

say russia has to gas china. well obviously we'll see whether that perspective will be cemented during this summit and of course we'll be watching every step of this meeting here in shanghai as it progresses starting on tuesday morning make sure you stay tuned. now former british diplomat william allen says russia is about to turn towards asia well it's not sitting too well with european leaders. i think russia is in a win win situation because i can russia will maintain over the next few years undoubtedly its european markets and again another bigger one in china let's remember there's a lot of hot gas if you'll pardon the pun about this ukraine story and now we already know that the germans in the two killer stream are you worried about sanctions. a lot of pressure is being put on the government now from from companies i don't think that the europeans are going to be very happy about the prospect of paying much more for american gas. and it may make europe even more of a business i don't want to use the word sl

dollars, to russia in payment for some gas supplies. but that money has not arrived, and russia says, let's see the money and then we will talk some more. as the eu energy commissioner has said, it all depends on finding a functional bank in new york and having a bit of patience. the money was supposed to be transferred from kiev to new york to moscow. everything depends on the money getting their. that will determine whether ukraine to keep its gas supplies flowing from russia, and by extension whether the european union is going to get its gas supplies that run through ukraine. >> that is my next question. how big is the threat that europe will also lose access to gas? >> again, these are tough times. if that money lands in the account in moscow on monday, negotiations will continue in brussels towards a complete package. but we simply do not know. we do know that about a quarter of the european union gas supplies come from russia. half that supply runs through ukraine. twice in the past, russia has cut off those supplies. it is threa