run out of oil they galois in saudi arabia is running out of oil it can arouse running out of oil in mexico bergin in kuwait they're running out of oil this is the peak oil is gone so this is why people are rioting because. the food in the oil are are now disappearing and there's no plan b. so the governments are not going to be around what i'm saying is these governments go out of business by their own shortsightedness anyway because the oil is gone i don't see oil being on our one hundred dollars barrel prices nothing do with oil being gone i don't know of a single place in the planet right now that's pulling up oil that costs one hundred dollars a barrel to pull up or fifty dollars a barrel to pull up in fact of the most expensive reserves being pulled up right now are in venezuela the heavy super heavy oil thirty dollars a barrel and the canada tar sands which is about twenty eight dollars a barrel the price of oil today is not in any way. in any way affected by its supply there's just no connection it is a monopoly we've allowed this to continue on we've allowed basically our oi

chloe welcome to crossfire computor lavelle the price of oil the curse of oil with the ongoing unrest in the arab world petroleum markets are more than reacting is the global economy on the edge of another deep recession and are high oil prices here today is the price of oil time to arab revolutions and aspirations. to discuss the impact of all of this on oil prices i'm joined by michael klare and in springfield he is director of five colleges program in peace and world security studies and author of rising powers shrinking planet the new geopolitics of energy in new york we go to and you see he's director of communications and marketing at euro pacific capital and in frankfurt we crossed william engdahl he is an economic researcher and the author of a century of war anglo-american oil politics and the new world order and another member of our cross talk team yell on the hunger for a gentleman this is cross talk and have different opinions i want my viewers to see them william let's go to you first let's talk about the possibility of what's people are calling the return to the great r

that is why oil companies drill oil every day. but they don't care about us. they only know how to pollute us in the name of development they only think of themselves. you know the better if you go into the places where petro ecuador operates it's like going to hell of thousand times. these people are ruthless they care about nobody. in one thousand nine hundred two when i got here i was one of the first ones to arrive and there was absolutely nothing only a mountain. one day i went to work in a road construction and when i returned i found five tractors destroying my farm and. when i went to petroecuador to protest they insulted my mother and told me to get out of here he treated me in an awful way and there was nothing i could do. we peasants have no power. but the military comes in and beats us up and nothing is done about it. in the end we're better off dying. am. i. they are terrorists armed with dry falls and dynamite. they have a stablished a reign of terror. thinking that the government will continue to put up with them. they won't have their way sirs

oil u.s. intelligence satellite reconnaissance and other physical tests in the disputed territory between yemen and saudi arabia to feed the entire world economy for the next fifty years that's only one example somalia is another one the world is swimming in oil will run into oil not running out of it so again i say this is a political geo political question american power since one thousand nine hundred five has rested on control of oil control the oil everywhere and how the middle east situation develops it's going to have a massive impact on that but that's a political question a resource question michael if i hear your answer your question peter is yes they want to sell oil. right michael thank you are you a respected be respected and be anybody irrespective if you agree of a in the peak oil theory or not it would split that aside right now it's still going to be an issue of price in a political turbulence will always it for exporters drive up the price i mean again the kind of in the prog

anyway there's oil here also. all this area. is polluted with oil this entire place. they never used membranes or any other material to prevent the absorption of hydrocarbons by the soil and they're spreading to other places no. production waters are closely linked to all oil produced energy. is known the impact of production water since the one nine hundred sixty s. and it has systems in place for safe handling such as the reinjection in the drilling. however here in ecuador these methods were never used. in the usa a country where they came from. and they applied a technology that didn't allow for any dumping in the reverse gas burning or leaving open waste. but here knowing full well they shouldn't do it they did so anyway. because that way they see four billion dollars and the reason is it amounted to money why should they reject production water to save the lives of some poor natives. i say all this is absolutely false. the company began operating in eastern ecuador in one nine hundred sixty four using all the latest technologies next door as in the rest of the w

oil. but there is brent crude oil, near the united kingdom, and mars crude is higher sulphur from the gulf of mexico, and the due by mercantile exchange is the benchmark for mideast oil. all of this brings us to tonight's word on the street, crude. dan dicker joins us once again from the nasdaq. welcome back. nice to see you. what price should investors in oil stocks pay closest attention to? >> the one that is most widely publicized, that is the closest representative to world oil prices is brent crude out of the north sea. the w.t.i. tru t.i. crude has lt connection to every other crude. so what prices you're seeing for w.t.i. has nothing to do with what people pay at the pumps. >> w.t.i. is west texas instruments. >> it has been the bench part for u.s. prices, almost everything has been pricing off w.t.i. off the past 20 years, but they've had this huge reserve point. and its land locked. it has forced the prices much lower than every other grade out there. you've had a lot of financial

oil you said about. production of oil in what not only we can speak about. and so forth we will fly prices. that is right of course. because there will be new market. organize some people i know for but because it's the most difficult area from day one of the it's difficult yes you are absolutely right. and if. you begin our work can you see someone with a question about the influence of oil prices the russian the because you know it's a typical idea that we. all sort of boil we will have no new technologies in russia i think is a good example i mean the example of the oil in the sea can be the main driver of modernization of our weak women because. new technology is impossible to dual exhaust so that is why high oil prices will help us to produce that is where we will see that our joint project for example will sniff him be and to sniff the last of economics that there will be in your view for the majors and i think. we can say we are welcome foreign companies who will arctic with us and will present us and we will help our partners because that's you thank

that means more oil. more oil demand. and there is a strong case for the oil prices to be above levels we have seen for most of the past 22, 30 years. this will reflect continued prosperity of the world. it will foster innovation and efficiency. does it mean prices are inevitably going to continue to rise? no. there are some factors that will offset that. one is the view that already is the peak demand europe and north america, australia. we do believe the demand peaked in 2005 petroleum based and it will not exceed that level again. fuel economy, biofuel mandates, demographics, the global health boom is turned into a global aging boom that tends to lower the consumption. but all of this figures into the changing balance of power in the global redesigned and there is no blueprint for how this is going to unfold, and there will be of course times of turmoil which you see today on folding in egypt. to conclude, energy prices and especially oil continue to reflect the global economy and the geopolitics. thank you. >> thank y

diwan, you said that oil and gas companies are in the business of oil and gas. isn't what they are doing it negligible? >> well, they are a oil and gas company. i will repeat that. these are huge companies, i mean, exxon is the huge company of the world, $200 billion capitalization, and the renewal business is very small. so even if it is -- even if they are doing a lot it wouldn't be material for the company's. it wouldn't be material for the world of renewables. >> correct, but they are companies. they have a mission and this is what they are doing. the scale issue is you wouldn't expect these companies to be the key investor etc just from the economic perspective. so, you know, we can't ask them to be what they are not. they might pretend to be something they are not but that is a different issue. >> so you can't ask them to be with a pretend? >> yes. >> okay. i will write that one down. gwen back, mr. burkhard, it is my question to have to compete on a world basis dealing in believably well cycle the right? and a relative term and believably. they are doing

oil. unsavory alliance the new wiki leaks release exposes you as spying on nature's top officials and how it's affected the organizations relations with russia. also shock waves in the greater middle east with more on two government protests erupting in bahrain yemen and jordan and libya. researchers make a second space walk on a virtual martian surface as part of its simulated eighteen month the mars mission that's hoped to bring the real thing out step closer. and it is rated clinic put slice before politics by treating children with heart problems from neighboring countries despite often tense relations. international news life or mostly this is with me thanks for joining us diplomatic cable published by week in leagues has revealed the u.s. was eavesdropping on a nato secretary general washington received information on his private conversations with top officials and as now is not a one hour reports the revelation explains more the yard's domination of nato. cat among the pigeons. str

oil three little letters. that have dire consequences on any economy and here in the united states while it's sometimes also accompanied by three big groups . and with those three words you've got yourself a politically entrenched powerhouse will drill new wells sure it will drill. drill baby drill and drill. and the crisis in the middle east has only inflamed so what we have now are soaring gas prices and fears of a relapse in the already weak economic recovery we have a world oil market so when one place goes down and one place is in trouble which it seems like libya is today then it is actually oil prices around the world and on the heels of the nebraska crude is heading for the biggest weekly increase in two years and when oil prices soar the price of food also skyrocket and so a vicious cycle begins for many americans a reality that is once again it rallied the base and its spokespeople perhaps for the wrong reasons and whenever there's a crisis either here at home or abroad it's usually exploited politic

prices this week yesterday crude oil prices reached one hundred three dollars a barrel of oil companiesshut down production in libya due to the protests there you know a lot of investors seem to be concerned with what unrest could do if it spreads to major other other major oil producing countries they fear this could drive up prices even further so i'm throwing out numbers like five dollars a gallon at the gas pump people again is a contributing editor for foreign policy he's also the author of this book the oil and the glory of the pursuit of empire and fortune on the caspian sea i asked him if oil prices could reach two hundred twenty dollars a barrel in the near future. the question is what kind of a timeframe are you talking about and what event i do think that the markets have been calm down over the last twenty four hours how do you arabia has gone around and rightly assured everyone we not only can add more volumes to the market but we have added these these volumes and that's why you see oil prices go down and the difference that would create a situation in which prices would r

in the past corrupt governments used oil income for the. oil producing. to die a slow death. into pollution and misery. there is no state here and we don't even have the basics but the oil companies. every day. electricity. development of a better life. companies drill oil every day. but they don't. know how to. think of themselves. if you go into the places where. it's going to have thousand times. they care about nobody. and in one thousand nine hundred eighty two when i got here i was one of the first ones to arrive and there was absolutely nothing only a mountain. when one day i went to work in a road construction and when i returned i found over five tractors destroying my farm. when i went to petroecuador to protest they insulted my mother and told me to get out of here he treated me in an awful way there was nothing i could do. but we peasants have no power. the military comes in and beats us up and nothing is done about it. in the end we're better off dying. they are terrorists armed with rifles and dynamite. they have a stablished a reign of terror. thinking that the

prices this week crude oil reaching one hundred three dollars a barrel as oil companies shut down production in libya due to the protests there now a lot of investors seem to have become concerned that bet on the rest will spread to other major oil producing countries earlier i spoke to steve levine contributing editor for foreign policy and also author of the book the oil and the glory of the pursuit of empire and fortune on the caspian sea i asked him if oil prices could perhaps which two hundred twenty dollars a barrel in the near future. the question is what kind of a timeframe are you talking about and what event i do think the markets have been calm down over the last twenty four hours saudi arabia has gone around and quietly assured everyone we not only can add more volumes to the market but we have as these these volumes and that's why you see the oil prices go down the difference that would create a situation in which prices would really skyrocket if another opec country went offline so you've lost a million barrels a day is offline from libya. algeria which is also having trouble i

economic recovery a surge in oil. prices will be the end of the u.s. economy not just an end to recovery there's no more bailouts like a reality peak oil expert michael c. rupert sees happening it all hits one hundred fifty dollars a barrel which he believes is inevitable this year others predict it going to two hundred twenty dollars it's so devastating because oil. fuels more than just cars. it fuels the entire global economy. though there's no doubt that if gas goes to five dollars a gallon for americans asked some predict there would be a high political price to pay for the obama administration's yeah yeah serene price and go and watch and for a very long period it may be your or. your political impact there's no denying the u.s. has played a role in the events that have transpired in the middle east every time. u.s. president barack obama went to the podium calling for this that there must be reform political social and economic reforms that meet the aspirations of the egyptian people and calling for egyptian president hosni mubarak's resignation

corporate oil corporations military. profits either way analysts say the price of fuel going up will simply fuel public rage and the government is largely helpless the american people are going for a very nasty ride and there's no way out of it now but i can tell you the government understands that it's time lauren mr r.t. new york. more on the impact on oil prices from repercussions in arab nations in our business update in about ten minutes and later peter lavelle asks his guest on cross talk if the thirst for fuel is becoming strong enough for the u.s. to intervene in the region here's a clip quick look at what's coming your way for a pm g.m.t. . there is no neutrality in washington ok please. start if you're ok if you look anything that you could that washington try to control events on the ground in the middle east and that's patently absurd i mean there's no way we could be that said so chaotic it's so totally believe me these are the real central i mean there was a man we know that the cia is calling the shots the

anymore by flooding it the market with oil because if it peak oil two thousand and seven global peak oil so now that whole foundation of power for saudi arabia is being taken away from the big sheikhdoms and all the princes and there are thousands of these frickin princes all over the world there take a minute billions to keep these guys rolling around in their rolls royces for what so they can sell overpriced gassed american s.u.v. drivers well that's all over with you got to get real jobs now guys i suggest you apply them at your local mcdonalds well this information transmitted in this wiki leaks cable took place in november two thousand and seven when sadat husseini a geologist and former head of exploration at the saudi oil monopoly around co he met with a u.s. diplomat said this was during the bush administration remember when cheney kept on dick cheney kept on flying over there to saudi arabia and about all hussein he told them that iran twelve point five million barrel a day capacity needed to keep a lid on prices could not be reached yet they don't have the oil to pump now t

libya is a significant producer of good quality crude oil, and as oil prices rise in response to the unrest, saudi arabia says the -- there is enough oil in the market and that the current situation does not warrant intervention by opec. oil traders are speculating on potential supply disruptions. >> german companies have begun evacuating their employees from libya. winters hall has already flown 130 of its staff out. oil production in libya buyoff has already been cut back here that could pose problems for germany because the north african country is a major supplier. last year, germany imported goods worth 3.1 billion euros from libya. oil and natural gas accounted for most of that sum. in the opposite direction, germany exported around 1 billion euros worth of products to libya -- mostly industrial machinery d electronic technology. the unrest in libya has led to concerns about future supplies of oil and put upward pressure on oil prices. on monday, a barrel of crude rose above $105 for the first time since before the global financial crisis. >> the unrest in north africa also hit

it's going to be if the oil price moves up and it's actually likely to be the oil sector that will benefit i think you know the important point to remember is that traditionally with the oil prices going up it's not always been the oil sector this benefited most so i think what you're beginning to see is people back out of the oil sector and into the rest of the market if you have a strengthening ruble and you have rising interest rates that matter can actually help the banking sector and the banking sector suffered over the last couple of weeks so if the price of oil remains stable then you could actually see the banking sector coming back into the vote. with his analysis of what we can expect from the russian markets in the coming week and russia's biggest lenders burbank is set to expand banking spare bank c.e.o. herman craft a decision on its strategy would be announced in less than two weeks the company says it will either buy an existing investment company or create a business from scratch and. we plan to quickly develop spurred banks investment banking arm we have ended studying all

oil futures rallied to over $97 per barrel. brent crude oil ended at over $112 per barrel. one fear is supply, even though libya pumps less than 2% of the world's oil. opec has promised to open the spigots to make up for any lost production. but as erika miller reports, it's fear of bigger disruptions and worries about the type of oil being pumped that has the markets so nervous. >> reporter: quick, what's the largest oil-producing nation in the world? if you answered saudi arabia, you are wrong. ( buzzer ) that country is actually number two after russia. the third-largest producer may be even more surprising-- it's the united states, followed by iran and china. libya is the 17th largest producer, with less than 2% of the world's supply. saudi arabia already has started to increase production to compensate for the loss of roughly a million barrels per day of libyan oil. but oil expert jeff mower says there's an even bigger worry than making up for lost libyan oil. >> there is a concern that what if this spreads? i imagine that's part of the crude price rally recently. what

to the oil spills in u.s.aters. since the passage of the act there have been significant changes in the offshore production storage and transportation of petroleum produc and with these changes the requirements to respond to potential incidents have grown more complex. thisill demonstrates that we may need to reexamine the requirements under the current law to ensure they are applicable to the present day operations. finally, i would be remiss if i didn't take this opportunity to remeer the 11 transocean members who were lost as a result of this tragedy and to express y sympathy to their families, friends and co-workers with that i would like to yieldÑ to the ranking member mr. larso for any comments you may have. >> thank you, mr. chairman, and i as well excited to be a ranking member and working with you. we do have a good working relationship last several years in congress and look forward to working on them here in the coast guard maritime said commission with you. thanks. i want to thank for conducting a