pushed us to ever more dangerous places to get oil. one of the things that astounded me is is that over the past 15, 20 years, two-thirds of our trade deficit is from oil and cars. those two things. and think how different the world would be if we had just had a different appetite and we weren't quite so addicted to oil. and the other thing that was so critical about writing this book is is not to have people think that the minerals management service which, of course, was the oversight agency that was asleep at the switch or probably asleep in bed with the oil industry, that they're not an isolated interest. what happened is the result of a decadelong effort to defang the watchdogs. the mineral management service, mms which has now been renamed bureau of ocean energy exploration research -- it's pronounced bummer, but i can never quite remember what it stands for. [laughter] but we cannot think that simply renaming an agency or just tweaking one agency is the answer. because that agency was just the manifestation of what has been happ

oil spill unleashing more than two hundred million gallons of oil into the gulf coast how could this disaster have been prevented and why has this story fallen from the front pages joining me now to talk more about this topic is bob cavanaugh our author of disaster on the horizon and c o of a look at technologies thank you very much for sitting down to speak with r.t. happy to be here mr cavanaugh are you say that the b.p. oil spill was not an accident it was a tragedy that didn't have to happen why did it happen the problem with the industry has and has had for years is that is essentially been on regulated in the us our regulations are our self and forced we sort of to the government that we're doing what we're supposed to be doing there are very few inspectors that actually come out to start to see if we're actually following all the rules and regulations and because of the deregulation of our industry at least on federal waters over the last ten years the problems that we have a big getting worse and worse and there's been no one forced me to correct them mr crabbe from what i un

this is the future of california and, really, oil is the past. >> the oil companies, they have takenons of dollars, poured it into prop 23 to trick us into saying "well this is going to create jobs." it's not going to create jobs, it's going to kill jobs. prop 23 is nothing but a job killing bill. there have been 525,000 clean jobs in california since the start of the renewable energy and this is going to kill jobs. >> it's really critical we defeat 23 and keep the capital flowing into california and use this renewable energy, green energy boom, to fuel our economic recovery. >> the exciting think about the renewable energy piece is that it's going to create jobs that did not exist. we need to stop talking about the jobs that have been lost to china and burma and india. those jobs are not coming back. we have got to find new and renewable energy ways to create new jobs and it's just going to be an economic boom. it's going to be an explosion that we haven't seen before in this country. that's how big this whole renewable energy piece is. >> the center of the solar job growth is right

europe gets an enormous amount of their oil. and if you destabilize that area, and you interrupt the production of oil, then that's when you really start having big economic problems, because the oil prices are just going to go -- are going to escalate. because you've taken a huge portion of the oil out of the market. c-span: is what you're saying that by us buying a million barrels a day -- if that's what it is -- out of iraq, that we -- that money's going to building the weapons of mass destruction? >> guest: well, actually, what we're buying from iraq is "legal oil." and in 1996, because of the enormous suffering of the iraqi people, the security council of the united nations adopted the oil for food program, which they had actually offered to saddam hussein in 1991. and he refused. so the first five years of iraqi suffering under the sanctions was no one's fault but saddam hussein. but in '96, things got so desperate that he accepted the oil for food. under that program, the sanctions committee tells iraq, you can produce x

extracting more oil. it's simple. so, deepwater was the next frontier. >> narrator: the us government, worried about dependence on middle east oil, encouraged it. >> they wanted the deep waters of the gulf of mexico to be explored, and bp was the kid in the front of the class putting up its hand before it even had an answer, basically. they like to be pushing into ever-deeper territory. it's how you get kudos in the industry, and it's hugely impressive, what they were doing. >> they were very confident. they actually believed they were going to overtake exxon in terms of production. they'd found a lot of oil in the gulf and they were feeling on top of the world. >> narrator: bp is the leading operator here, producing 25% of all gulf oil from some of the deepest waters in the world. >> in fact, it was bp who had found the deepest ever, so everybody was actually pretty excited about this and people were just losing sight of the risks. >> the deep gulf was regarded as a very difficult place to drill. storms,

of course the oil shock of the seven days and then oil spiked up to one hundred forty seven recently cause all kinds of mayhem so you're saying as commodities expert the same kind of thing happening in rare earths because so much of our new electronic world all the gizmos are made with these rare earths and china has a ninety seven percent of the of the market how did that happen well you know what it's a two fold here it is exactly like energy in many ways because here we are we're dependent on these metals for our future green technology you know the hybrid cars like i said the windmills etc in other technologies if we're going to ever get off this oil addiction which we're definitely dependent on right now we're going to need those green technologies so we're going to need these rare earths in the future now we do have supplies here at home they're just not being developed it's going to take years before that gets underway there's many obstacles here and in other parts of the world environmental governmental you know litigation and then money it's very expensive prospect right now

needs to focus on energy and replacement for oil. are the plans credible what's happening here not remotely credible not even vaguely credible and what they're talking about is energy independence through biofuels primarily. although very southern forms of renewable energy as well but the emphasis in the plants that you hear most about are in things like ethanol and from things like switch grass it's absolutely not going to work the energy returned on energy invested for these is incredibly low right so the amount of energy it takes to get the energy out yes is greater than. exactly not for every one of them they do vary from one technique to the next bio diesel is slightly better than an ethanol and it depends what you're getting the ethanol from as to what the net energy out is ethanol from corn is energy negative the net energy is below one energy which return on energy invested is less than what right now the reason we have that is because it's an enormous subsidies that the exact word industry receives agricultural industry for

america's addicted to oil as i recall. yeah give me some more bones to give us some more i mean other good whatever. so and of course the reason why the dollar is devaluing so fast and therefore oil prices are rising is of course from the money printing going on by the global banking class as we said in the beginning of the show headline reads gap wal-mart clothing costs rise and terrifying cotton price oh my q oh go ahead don't turn to her. jumped on turn around pick up mail it to you say i predict within a few years the biggest employer in america will be cotton pickers and of course the shop with the company store wal-mart an amazing thing is if you haven't shopped at wal-mart for the past twenty years you wouldn't be out there pick and sucker so cotton futures in china have surged by more than seventy percent this year high going higher baby is something you just can't live without who wants to go out the front door without a clean pair of underwear you can read in the quotes in this article the very definition of hype

that oil price of oil is not going to run out it's just going to become more expensive it's going to be harder to find it's going to be more costly to explore for it so these costs are passed on to the consumer look we you know a lot of people say it's a bubble and we're going to go back to what prices were forty fifty dollars you know i remember when they hit fifty dollars for the first time and that was quite a while ago however you know what we're going to see is the cure for high prices high prices if we get back up you know to a level like one hundred forty seven dollars was at the time where it becomes a little absurd you know about thirty dollars of that was just pure speculation the market will take care of itself and correct now when it corrected it corrected too far to the downside and came back and we've been pretty much in that kind of nominal range since and i think the market has a way of curing those problems itself i do believe though that we are seeing more and more demand out of asia you know what you have millions of drivers being added on chinese and indian roads

, oil prices are trading in double digits, just under $90 a barrel. experts predict crude could top $100 next year. you're watching "nightly business report" on veteran's day, thursday, november 11. this is "nightly business report" with susie gharib and tom hudson. "nightly business report" is made possible by: this program is made possible by contributions to your pbs station from viewers like you. thank you. captioning sponsored by wpbtret two-year highs, inching towards $90. experts predict crude could reach $100 a barrel as next year. scott gurvey reports. >> reporter: nymex crude hit a 25-month high in electronic trading early today, then retreated to settle unchanged. but while traders may have decided to lock in some short term gains, experts say the recent oil price gusher is for real. chinese demand is a big reason. the chinese government today reported refineries in that country processed a record volume of oil in october. the chinese thirst for oil has been growing along with its economy. but oil trader ray carbone says there's more to the

when we went from coal to oil, oil looked small. when we went from... so i, i think we shouldn't get too hung-up on the 2% notion that, ah, was mentioned by one of the experts. but that said, yeah, i think the, the big issue, and, and i think michael, of course, is the better one on, on, ah, much of this, but the big issue that we're going to have to look forward to is, how are we going to have relations with the wider part of the world where we are going to get our energy for a period of time, how are we going to do that intelligently while we make this transition to a low, no carbon future? and for that purposes we, we have a lot of, ah, foreign policy work ahead of us to make that, ah, to make that happen. >> michael, what are some of those challenges? >> well ,there's a big challenge here because on the one hand, if we ultimately do move away from traditional fuels, that essentially drives their price to zero. ah, when you can't sell something for money you don't invest in it. on the other hand, we need countries and companies to invest in oil and i

truth, since the oil embargo, the oil producers, particularly in the arab world, have return used oil as a weapon and promise to never do that again. finally, on the issue of price, the truth of the matter on why the price of gasoline flux -- fluctuates, i saw tom daggitt, he would dog the opec oil producers and producers in saudi arabia. his question was the same? what's the price of oil? what sets the price? the truth of the matter in 2008 when you saw the price of gas rise and the price of oil rise on the market, it was the specklators from wall street who were driving up the price of oil. congress finally understood that when they not only held hearings, but implemented new regulations regarding that. as i mention today, we are here to hear more truth on source, supply, and security. our first speaker is jay pryor, who's going to talk a little bit about partnership and the quest for energy security. jay is presently the vice president of chevron in the corporate business development. he's been at the corporation for 31 years, which is the hallmark and trademark of the an excellent

the chinese thirst for oil has been growing along with its economy. but oil trader ray carbone says there's more to the story than china. >> we have seen china be a big part of the rally back from the lows of march of 2009. but what were seeing now, which has spurred oil to these two year highs, is really some very good numbers coming out of the u.s., some demand strength that we haven't seen, and some eating away of that overhang of inventory. >> reporter: that domestic demand indicates an increase in industrial activity, in spite of the sluggish economy. but energy analyst stephen gengaro says not all components of the energy sector are participating in the rally. >> our internal team has a natural gas forecast for 2011 of about $4.60. that's really based on fair value and displacement with coal. so we see the gas markets in the u.s. in oversupply, with coal really acting as a price driver of gas, near-term. >> reporter: so, for now, crude is the place to be. crude broke a key technical level yesterday, and today, both opec and the international ene

several opec oil ministers have been out this week talking about where they think oil should be, from $70 up to $100 a barrel. the winners were independent energy producers. range resources and pioneer natural resources each rallied more than 2%. both have seen higher than expected production. at the bottom of the sector today-- driller rowan, and integrated oil company marathon. rowan's earnings beat the street, but the stock still sold off. marathon's oil production outlook was disappointing. speaking of earnings, b.p.'s latest quarter was hit by costs from its gulf of mexico oil disaster. still, its c.e.o. said the company is "well on track for recovery." shares were up 1.5%. the stock was over $60 when the gulf oil disaster began. oracle has one of the biggest cash positions among technology giants, over $20 billion. it's using some of that to buy a smaller software firm, art technology group. oracle will pay $6 per share for art technology, almost $1 billion total. oracle gets a leading e-commerce software company with blue-chip customers like continental airlines and best buy. a

it's more than just oil.t's liquid engineering. >>> few public figures fall from grace as dramatically as michael vick did three years ago. the nfl star lost his freedom, and it seemed, his career, when he was convicted in 2007 of running a brutal dogfighting business. he spent 19 months behind bars. then, vick had to convince the nfl and fans to give him another chance. and now, thanks in part to his utterly brilliant play, they have. bob woodruff has our report. >> reporter: michael vick seems to be a man on a mission these days, whether he's displaying his incredible talent in front of millions on the football field on sundays, or talking to thousands of kids across the country about his criminal past on his off days. >> i continued to fight dogs. for what reason, i don't know. i never had a clue about the consequences. >> reporter: yesterday, we spoke to him after he gave a speech to some young people in new haven, connecticut. >> i have a voice now. what better person to go out and preach a message? and

oil is is fungible.en if we buy zero from saudi arabia, zero from the middle east, when prices are going up based on a disruption of supply or just paced on market force -- based on market forces itself, the price goes up for everybody. the chinese pay the same price of oil as we do, as the europeans do. now, this shows, actually, our dependence on persian gulf oil, should say arab gulf oil. it's about 15% of total imports which is less than 10% of our total consumption of oil. so it is minuscule. really, it's not all that big. and trying to reduce it further has, also, another side to it. when you become -- when you import less from the gulf, you also trade less with the gulf. you trade less with the gulf, somebody else will take you slot. i was surprised when i had to give a talk two weeks ago in many oman where i spent ten years, and when i left oman the biggest buyer of manny food was japan. who is it now? china. by far. china is building refineries in iran, china is developing a big new field in ira

this is where oil and gas is. and the oil business they can't pay because that's where the payoff for drilling the well is. so down here 18,360 feet aren't hydrocarbons they were drilling for that has been established for by seismic work, work of geologists and the like. what happened occurred right down here. bottom of the well. this cemented you see here, and you'll see enough cement today you'll be sick of it, but this thing that down here is where the leak occurred, and we'll be spending, we'll have big blowups and animation showing what happens down there. you'll hear a lot of names. we all know bp, transocean was the owner and operator of the rig. they have a lot of rigs all over the world. halliburton, among other things, does cementing. m-i swaco is an schlumberger company that handles the drilling mud. you will learn more about what drilling that is and what the purpose of it is. schlumberger was on the well the day of the explosion to do certain logging, and that, we will discuss that. and halliburton un

and they've got all this oil. >> yeah. well, their recession went on perhaps one or two quarters more than some other countries', but it wasn't as deep as mexico, for example. they didn't lose as much as mexico did. yeah, but mexico shrank 8%. mexico shrank 8% in'y sanguine about the venezuelan economy. >> i'm saying that, you know, these stories of collapse, it's like everything else. it's just exaggerated. i'm not saying [indistinct]. they have real problems, but they have real problems just like everyone else. >> do you think their problems are related to what roger said, the fact that there are all these businesses that have been nationalized; there's all this worry, as carlos said, about the judges coming in and saying, "we're gonna take your company away, or we're not gonna allow you to operate"? i mean, is that kind of thing a damper on economic prosperity? >> i think that, you know, in every country--venezuela is not the only country with a left government in south america. it's the majority now. in every one of th

we pushed oil debris off the berms, stopped oil off the surface and submerged oil. took almost a month to approve the permits. even after they approved them they wouldn't allow us to dredge the sand from areas they had already approved. we could have built many more miles. the sand berms were a great success. here's another great example. they weren't willing to think outside the box. the federal government themselves approved the u.s. corps of engineers said the positives outweigh the negatives. admiral allen and the president both intervened to approve six of those segments. they themselves, this was a pre-approved coast guard response to an oil spill, very effective. we are thrilled with these did those sand berms. >> scientists will disagree with that. >> not every scientist. let's not say that everybody disagrees. there are scientists who say this is the best thing for the coast. now that we've convinced bp not to make temporary berms, but to convert them into coastal islands, the restoration of the original footprint, many scientists have praised this as one o

change your oil to castrol gtx high mileage. its more than just oil. it's liquid engineering.ow about a coastal soup and grilled shrimp salad combination? or maybe skewers of wood-grilled shrimp. seafood lunches starting at just $6.99 at red lobster. wallach >>> a new rep >>> a new report says before the oil well blowout in the gulf of mexico, bp and its contractors ignored a series of warning signs. 11 workers died in the april 20th explosion that led to the largest offshore oil spill in u.s. history. the report buy technical experts says there was a failure to consider risk and lack of management discipline. >>> there are fears the cholera epidemic may spread to neighboring dominican republic. the country reported its first case, a haitian citizen who recently vacationed in haiti has been hospitalized with it. no other cases have been confirmed there. meanwhile, the cholera death toll in haiti has topped a thousand. >>> in other news the excitement is already building in britain over the royal wedding. prince william, second in line to the throne, and kate middleton finally