certainly that that that's a much higher quality oil that has put a strain on north sea oil and some of the oil there but in general no there's no shortage of oil right now today the whole discussion is basically looking towards the second half of the year and what the previous panel is just mentioned there has been some demand destruction you know the best the best solution to the high price of oil is high prices because we will get some of their society of the me and i'm sure that that's a concern all right gentlemen i'm going to jump in here we're going to go to a short break and after that short break we'll continue our discussion on opec stay with our team. this is. to a substantial degree and one form or another socialism has spread the shadow of human regimentation over most of the nations of the earth and the shadow is an approaching of our own liberty. leave early twenty first century military bases the network of military bases all around the forms of the evil empire that the united states is trying to build that's astonishing most americans have no idea there are more than

these oil industries -- oil and fish and oil in the gulf is part and parcel to being there. and one of the stories i tell in the book is of the fish and petroleum -- the shrimp and petroleum festival in morgan city, louisiana and the king and queen are in my book sitting on their throne and they have these crystal crowns and made in crystal is a green oil derrick coming out of the crown and a pink shrimp coming out of it and that pretty much describes fish and petroleum in the gulf but one of the things we learned is that while the gulf thinks of itself as a petrostate it really is, you know, i work in oil and angola is a petrostate. 86% of the gdp is from oil. iraq is a petrostate, 90% of the gdp is from hollywood louisiana isn't a petrostate. it really isn't and what people working in the industry told me in the end, you know what? we could do without this work. it's not safe. we don't like to. it's dangerous. give us something else to do. we can't do -- we can't organize for a year in the gulf. it's hard to argue for the alternatives here. we can work on it but we need yo

certainly that that that's a much higher quality oil that has put a strain on north sea oil and some of the oil there but in general no there's no shortage of oil right now today the whole discussion is basically looking towards the second half of the year and what the previous panel is just mentioned there has been some demand destruction you know the best the best solution to the high price of oil is high prices because we will get some alaska city of the me and i'm sure that that's a concern all right gentlemen i'm going to jump in here we're going to short break and after that short break we'll continue our discussion on opec stay with our team . it's. more than a month. in one of the most extreme environments on the planet this is antarctica and people have to be aware that they're far away from civilization sean thomas discovers fault makes on start to is so special and attractive for many the wildlife in antarctica is a boat and from the. expedition to the bottom of the earth are. they faced this is not a prohibition looking worn. before. let me show you first step what you sh

on the oil. that was absolutely forbidden. could not do that. the same rules today? >> they still have to record every release of oil. there is millions of gallons of oil released into the ocean by oil rigs, accidents, workers die all the time. one of the workers i interviewed, i was sitting with his wife and newborn baby. he was trying to make her feel better by saying, oh, honey, these explosions happen all the time. don't worry about it. it's not something to worry about. she to know that he had broken his arm and leg. it all came out while we were doing the interview. oil spills have been constantly. the use of dispersants happens constantly. it is recorded. this wasn't so hard -- this wasn't the largest use of crack said. it was the mexican gulf of the gulf of mexico in 1979. nobody did any research. the oil industry didn't do any research. they don't care. they didn't tested, study it, and they just used it again this time. what was different this time is that they used it as the source of

oil production. and while whoever said you can't affect the price of oil overnight, well, of course, that is absolutely true. but if there is a belief that the u.s. is going to produce less and less oil going forward, particularly, because of government policy, then the price of oil is going to go up. >> one more thing i wanted to get into the record. governor, you're one of the many states that are a right to work states, aren't you? >> yes, sir. >> in fact, every state in the gulf of mexico, every oil state is a right to work state? >> i think all the states in the gulf of mexico -- i don't know if every oil state is -- >> i'm sorry. california is a oil state and we're not right to work. every gulf oil state is a right to work. >> it's my belief. >> does it surprise you that the policies of this administration seem to be targeting the economic well-being of your area? and i'm not trying to say it's a big plot or anything else. but it does seem like if 9/11 aircraft fly into the pentagon, fly into t

certainly that that that's a much higher quality oil that's there has put a strain on north sea oil and some of the oil there but in general no there's no shortage of oil right now today the whole discussion is basically looking towards the second half of the year and what the previous panels just mentioned there has been some of them in the structure you know the best the best solution to the high price of oil is high prices because we will get some awareness of the of the me and i'm sure that that's a concern all right gentlemen i'm going to jump in here we're going to a short break and after that short break we'll continue our discussion on opec stay with our team. is this. subject. wealthy british style. markets finance scandal find out what's really happening to the global economy with months concert for a no holds barred look at the global financial headlines tune into cars a report. download the official placation q i phone on called touch from the i choose ops to. munch on sea life on the go. video on demand cheese minefield costs and r.s.s. feeds now in the palm of your. qu

oil production.aid you can't affect the price of oil overnight, well, of course, that is absolutely true. but if there is a belief that the u.s. is going to produce less and less oil going forward, particularly, because of government policy, then the price of oil is going to go up. >> one more thing i wanted to get into the record. governor, you're one of the many states that are a right to work states, aren't you? >> yes, sir. >> in fact, every state in the gulf of mexico, every oil state is a right to work state? >> i think all the states in the gulf of mexico -- i don't know if every oil state is -- >> i'm sorry. california is a oil state and we're not right to work. every gulf oil state is a right to work. >> it's my belief. >> does it surprise you that the policies of this administration seem to be targeting the economic well-being of your area? and i'm not trying to say it's a big plot or anything else. but it does seem like if 9/11 aircraft fly into the pentagon, fly into the twin towers, the

has to be made into something valuable. >> oil companies don't set oil prices. corn farmers don't set corn prices. they're as surprised as everybody else when they see the price go up sometimes. >> absolutely. and a lot of things impact the rice it at the pump. a lot of things impact the cost of crude oil.price it at the pu. a lot of things impact the cost of crude oil.it at the pump. a lot of things impact the cost of crude oil. at the pump. a lot of things impact the cost of crude oil. >> i remember stories of some traders trying to bump up to $100 the price of crude just so they could say it was $100 and then it fell. there are people at one end of the system surely gaming the system and playing with prices at that end. >> well, look at the agencies that track this. as an association, we don't track price. we're in tnot allowed to. it's actually against the law. so you look at the agencies responsible. federal government, international agencies. and when they track the price of crude oil to and relative to the price we pay at the pump, it tracks very closely.

once again which will trickle back into the oil futures markets within six months time as oil burst passed under close past one fifty us way to two hundred because you're just giving ammunition to the very people who say you're being tough again it's like for example you see a perfect example of this the u.s. selling guns to the mexican drug cartels and then saying we don't know why we're losing the war on drugs all the stroke open from mexico all stops all of them somebody. just speaking of market intervention there was at the end of april when we had all those marching hikes on silver oh you know who can forget well bill gross the manager of the lot world's largest bond fund tweeted last week that margin increases and so were basically an attempt to rig the market he said quote i eat a action yesterday continues policy maker efforts to cap bad inflation in parentheses silver margins except nonetheless higher inflation ahead well bill gross is going off the reservation he's calling out the manipulators and the corrupt regulators they're in the pocket of the markets he feels i belie

>> tom: oil prices tumble as the u.s. and the international energy agency pump 60 million barrels of oil onto the market. the goal? easing global prices. but it's not much oil for an energy thirsty world. >> we're looking at a three-day supply here that's being sold, and i think this is more of a political move than an economic move. >> susie: meanwhile, a late day deal on greece helps blunt a tough day of selling on wall street. it's "nightly business report" for thursday, june 23. 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 wpbt >> tom: good evening and thanks for joining us. greece and oil prices-- these were the two hot topics in world markets today. stocks and oil both sold off this morning after the international energy agency stunned investors with news it's releasing 60 million barrels of oil to help the global economy. h

an oil minister. what are the political dynamics at play here in opec this time? >> reporter: well, this is the most charged in the better part of a decade f you think about it, but don't forget, in the back drop, the secretary-general is from libya himself. he wants to walk away with a moderate agreement, not talk about politics if avoided and the saudi heavyweight has been in this structure for 16 years. when there has been a crisis, saudi arabia has stepped up to provide more oil. will saudi produce 9 million barrels a day or more in the second half of the day. that's a strong signal saudis could send if not touching a number. >> john will be joining us later with those ongoing opec talks and also independent analysis from a leading energy expert. >>> if the group does decide to maintain current output limit, that could send prices once again soaring output but at the moment nymex crude is down by two-thirds trading at $98.45. brent crude has been dropping just a little under half a% to $116.35 a b

of oil are you scared is selling oil from the strategic petroleum reserve going to defeat inflation jeff it's pretty obvious that obama understands the oil market about as much as he understands the u.s. markets this. absolutely no effect and it's quite. puzzling why they would even do it there's obviously just one or two reasons why they would do it one is for political gain which really makes no sense because why would they even bother like as i just mentioned this is such a small amount that it really won't have very much effect at all the only other reason i can think of that he would even do this is there's some sort of an emergency like that's the reason you're supposed to actually release these oil reserves and who knows maybe there are planning something to happen with iran there's any number of possible things that could happen at this point this is a desperate government and its dying empire that so is in its death throes and it's liable to do anything at this point tell us. describe to us what is a dollar vigilante as you get into it and what what do you expect going forward t

oil. we need to develop oil in the u.s. because we need to bring the oil into the marketplace so that when we get to a much more tight oil situation in the future a, we have a little more room before we have to make the transformation towards other fuels. , steve.nnecticut's caller: when the reserve, when we take out the oil that we are going to take and it has to be put back in there, will that increase our prices again? in other words, will we end up paying for this one way or the other? will that be at the tax increase? is it really beneficial to take out the oil now and use it? guest: very good question, steve. that is one we have been talking about, because it is not clear when or if the oil gets put back into the reserve. the reserve and its maximum level of 727 million barrels. in the drawdown the oil would be flooded into the marketplace and the government would have to go back in and produce oil to replace it. there will be a question of when to do that. do you do that right away or perhaps at a time when oil is lo

by producing more oil. and i guess that argument means the same thing as we're not going to have more food by producing more food. we're not going to have more appliances in this country by producing more appliances. the arguments that we've heard in this bill are offpoint, offsubject and simply on claims that don't make any sense. so when it comes to this particular amendment, this particular amendment, delivery trucks aren't regulated as stationary sources nor should the service vessels. to a stationary source, the drilling ship as will be considered once this legislation becomes law. with that i yield back the balance of my time. the chair: the gentleman yields back the balance of his time. who seeks time on this debate? the gentleman from florida. mr. hastings: i'm prepared to yield back the balance of my time and ask for a recorded vote. the chair: the gentleman yields back the balance of his time. all time having expired, the question occurs on the amendment offered by the gentleman from florida. thos

oil production. and while whoever said you can't affect the price of oil overnight, well, of course, that is absolutely true. but if there is a belief that the u.s. is going to produce less and less oil going forward, particularly, because of government policy, then the price of oil is going to go up. >> one more thing i wanted to get into the record. governor, you're one of the many states that are a right to work states, aren't you? >> yes, sir. >> in fact, every state in the gulf of mexico, every oil state is a right to work state? >> i think all the states in the gulf of mexico -- i don't know if every oil state is -- >> i'm sorry. california is a oil state and we're not right to work. every gulf oil state is a right to work. >> it's my belief. >> does it surprise you that the policies of this administration seem to be targeting the economic well-being of your area? and i'm not trying to say it's a big plot or anything else. but it does seem like if 9/11 aircraft fly into the pentagon, fly into t

today's jump in oil prices didn't help. independent oil and nat gas company cabot led the energy patch, up more than 4% to a new 52-week high and close to a new three-year high. money management firm canaccord upgraded shares and boosted its price target to $85 thanks to cabot's production of shale natural gas in pennsylvania. we mentioned earlier exxon's announcement it found two major deep water oil discoveries in the gulf of mexico. shares were up 1% on strong volume. exxon was among the strongest dow industrial component. other gainers inside the dow were among the highest dividend verizon gained 1.5%. johnson & johnson stock was up 1%. were among the highest dividend payers as investors seek some safety. speaking of yields, the interest rate on the 10-year government bond fell back below 3%. bonds have rallied this month as stocks have weakened. no doubt about it. investors continue pouring money into bonds. how much money? take a look. $3.1 billion were taken in by bond mutual funds in the past week, according to the

crude oil.nk by releasing stocks, the iea will make available more light and sweet crude oil which is the oil that the refiners need now. >> do you think that sharp fall in oil prices yesterday was justified by this move? >> i think that the prices have started to come down before the move. if you look at the price movement in the morning, they lost roughly $4 to $5 a barrel. prices were on the way down. i think what the iea did accent ated the move down of prices. i think right now if you look at supply-demand balances, after a short-term problem, it looks like it's going to be more relaxed in the future and, in fact, there is room for prices to go further down. >> do you have now a view on where prices are likely to settle in this current economic climate? >> i'm not sure that the movement will change our forecast, but we have now oil prices going to $97 per barrel in the third quarter and $92 in the fourth quarter. that would be justified by slowing demand, slow economic development and the i

biggest oil market these were the boulders of the original oil market back in one nine hundred eighty three reagan left it well price controls and when that happened some traders who had destroyed their own exchange which had traded potatoes this was called the new york mercantile exchange decided they're going to try to trade oil and when reagan lifted those controls in one thousand nine hundred three that had been imposed by nixon they went ahead and did it it was effectively the deregulation of the market it became a true free market not big oil setting prices or opac behind closed doors this was when you had bits and offers that were freely exchanging hands and that was the beginning of it all this is the oral history really of these traders instead of not knowing who they were we know their names and we find out exactly what they were thinking how it happened all the way up to the present day right now at some point the what you call the transformation of the market into a more of a free market system away from to control the oil companies and opec at some point another mutation

largest onshore oil storage facility in the world this is a black box we are not to know who owns oil there who is doing why there are a couple big companies but they lease out tank farms to goldman sachs morgan stanley large banks large oil companies and then these groups also trade oil and it's very good to have the supply ship as well trading in the paper market but if you can put them together there you have a lot of that's covered and that's what a lot of these groups do now you talk about the eighty three period in deregulation there was of course another major wave of deregulation i believe it was in two thousand when the commodity futures modernization act was passed and how did this transform the market what this did with it codified congress literally voted to add to take away any anti-fraud powers that might have been implied by the regulator of the oil market so that they could not do very much about the kind of trading that was going on off exchanges while the exchanges do the global transparent global price most of the training actually takes place off exchange and they

oil prices sork we could well see oil prices come down from where they are, and that would mean cheaper gasoline at the pumps. but there is a kind of downside, dark side of that which is the issue of spare cas pate. the amount of leeway in the world oil system. because saudi arabia is essentially the only country that has a significant amount of spare capacity that could pump more oil if it were needed, if there were problems elsewhere in the system. so the more production that saudi arabia has, the less spare capacity, the less margin for error in the world oil system. and that could keep the markets worried. so my sense is that although we probably will see oil prices coming down for a bit from now, it may not last very long and i certainly think we will have to get used to these kind of levels, oil at about $100, gasoline at about $4 for the foreseeable future. >> ed crooks of "the financial times", thank you very much. >> brown: again, the major developments of the day: a heat wave blistered much of the eastern u.s. with record readings in several cities. and a huge wildfire raged o