he who drills the oil, he who possesses the oil owns and controls the oil. we see that today in libya. who's actually possessing the oil? the guys who are possessing the oil get the benefit of the oil. but remember, as soon as oil is out of the ground, it loses its value. and so as oil is kept in the ground, as it's kept more scarce, the price of oil goes up. so whatever is going on in kirkuk -- and that issue that you talked about was litigated for years in the international courts. and turkey lost. they were voted down and the current dispute really will be solved the way all other disputes are in the oil business, the man who's got it keeps it. dies and fights to keep it and keeps the money. who else has a question, yes, please. >> in all of your discussion -- >> my bad back. >> in all of your discussion, you failed to mention how american oil companies got? exxon, mobile, how were they able to -- >> okay. well, i left out about 99% of the book 'cause i'm hoping you all go get the book, what happened is five major oil companies led by standard oil -- your

stop buying iranian crude oil in case they have a substitute oil and it's it's not so easy to change the flow of crude oil from one supplier to consumers to another supplier because simply do refinery operation and also the trade of refined productions needs time to adjust itself also if you look at. if you look at the substitute and options for i'll turn to alternatives to alternative iranian crude oil for this market. saudi arabia in libya deledio crude oil is light and sweet and. iranian crude oil which refines in these refineries is sour and heavy so really in saudi arabia to cover iranian crude oil in these markets if. going to cover iranian oil or not that's an other issue and saudi arabia would always love to keep certain amount of spare capacity in case of an emergency in future now iran is threatening as a result of these sanctions if these sanctions you happen they are threatening to shut down the strait of hormuz this critical waterway where huge portion of the world's oil supply passes through last night in the presidential debate i don't know if you tuned it tuned in but

will be freed up for the europeans i mean oil is pretty much oil and so if the same amount is going into the world market the same coming out i don't see that a whole lot of spin achieved now if you get into a scenario where they start trying to stop arabian oil exports altogether and then the iranians might want to attack saudi oil fields this gives the west a big incentive for a preemptive attack if the temperature around that show and i know john let me go to a short break i'll go right back to you after the short break after a short break we'll continue our discussion on the future of rent space with our team. to. i am. were shot four times in total. war as it were the. story of the boys are still in my body. and those people should be allowed to defend themselves wherever they are guns in the hands of law abiding decent people are not a problem national rifle association there's a group of basically retired military police love to shoot holes in i'm sorry if you know that the bullet comes out here and this makes it go bang and what's in front of here is going to die and that's

in that case they would take the attitude that if we cannot sell our oil we will stop all oil exports from the gulf third of that or more in an act of defiance iran is care by a barrel of sample of challenging the us the nor are insane nations in saudi arabia which are of the biggest in stations and they were and from which the nine pm pair of cent of saudi oil exports are loaded. what do you think about that john my before we go to the break here i mean is is this what you think this is plausible that the sanctions will actually work or are really right this is just a political move in washington to please the israelis and please the republican electorate well i'm puzzled by it because the thing is if iran isn't selling its oil to the european union it will be selling it to somebody else that person will then need to import less oil from elsewhere and that will be freed up for the europeans i mean oil is pretty much oil and so if the same amount is going into the world market the same coming out i don't see that a whole lot has been achieved now if you get into a scenario where they

because huge areas where oil spread. thick layer of black oil that covers the entire surface of the water below which all life has totally disappeared. kilometer off a kilometer of mangrove are affected and yet no scientific mission has ever yet come into these territories. six black smoke is rising over the mangroves. we've arrived at last. as we approach the men flee. those in our boat call to them reassuring a. refinery . an illegal refinery under the open sky. here men distill crude oil their flow they're handed amidst the steam talk on the risks of explosion. men who've welded together a few cams to make stills. and to feed the fire by tossing bowls of oil onto it. it's an apocalyptic scene on the dying palm trees. the men live here detail. sleep here and die here. todd from the inside. why did he think what i did he felt. he would. fund this one is pretty. and this is. the kind of there's a different to refining process we need all coal from the steam. it's local. in different ways that. the finest. ok there's alwa

will be freed up for the europeans i mean oil is pretty much oil and so if the same amount is going into the world market the same coming out i don't see that a whole lot of spin achieved now if you get into a scenario where they start trying to stop arabian oil exports altogether and then the iranians might want to attack saudi oil fields this gives the west a big incentive for a preemptive attack if the temperature around that show and i know john let me go to a short break i'll go right back to you after the short break after a short break we'll continue our discussion on the future of red state with our team. and. welcome. thank you crosstalk you know all about your mind you were talking about the oil embargo to be imposed on iraq. ok and i to go back to john in iowa i mean we hear in mainstream media and politicians like to use the leave the term carrot and stick as if iran is a donkey or something like that but this carrot and stick approach has never worked it hasn't worked for thirty years why do you think it's going to work now. oh it won't work this is just the way that we

will be freed up for the europeans i mean oil is pretty much oil and so if the same amount is going into the world market the same coming out i don't see that a whole lot has been achieved now if you get into a scenario where they start trying to stop or any oil exports altogether and then the iranians might want to attack saudi oil fields this gives the west a big incentive for a preemptive attack if the temperatures are going to show and i know john i'm going to go to a short break i'll go right back to you after the short break after our sjoberg will continue our discussion on the future of iran's faith with our team. to. you know sometimes you see a story and it seems so you think you understand it and then you glimpse something else you hear or see some other part of it and realize that everything you thought you knew you don't know i'm tom hardy welcome to the big picture. if you. still. want to. welcome back to cross talk you know about to remind you we're talking about the oil embargo to be imposed on iraq. and you can see. ok i like to go back to john in ottawa i mean we he

because huge areas where oil spread. thick layer of black oil that covers the entire surface of the water below which all life is totally disappeared. kilometer after kilometer of mangrove are affected and yet no scientific mission has ever yet come into these territories and. the six black smoke is rising over the mangroves. we've arrived at last. as we approach the men fully. love all those in our boat call to them reassuring up. a refinery. an illegal refinery under the open sky. men distill crude oil. amidst the steel. on the risks of explosion. men who've welded together a few cans to make stills. and who feed the fire by tossing bowls of oil onto it. it's an apocalyptic scene on the dying trees. the man lives here e.t.f. if sleepy and. todd up from the inside. if he see if. he would. give his cue. there's a different refining process we all call from the steve. biko one of. the finest. ok there's a. decent we went. fishing block and we put it inside all we said. greenspun they. were gay community. they will do it's

so this is the oil. well simple enough to being treated it's a condensate it's a very light crude what is it. i mean we're more than two thousand meters down. and we can get something out that's relatively easy to use so it comes out of the tap it's what they call the blob of nigeria. and. so this quality we have to go deeper and deeper to find it today over future major projects situated a very great debt. so it's going to require immense technology. more and more technological evolution to go and get the oil even deeper. if the input of course other aspects of very important for the commercialization of this oil because they see this you must see i mean i mix or water and oil because water doesn't cost much an oil costs a lot the company much else every time we load our oil products here onto a tanker we have to be sure it contains a minimum of water. i say the blood of nigeria because it's their role materials it's their product when they're up what is it we're here to help them exploited and for. me

but is said to be drilling for oil, a -- cuba is said to be drilling for oil. we are going to keep talking economies now. time for the business news and with aaron. stunning figures coming out of spain on unemployment. >> we've already known the unemployment problem is the big problem. spain's is just getting worse. the number of people out of work has now passed 5 million. 5.3 million to be exact. the unemployment rate rose to almost 23%, twice the average for the rest of the eu and certainly the highest unemployment rate in the industrialized world. break the numbers down. it's even worse for spanish youth. more than half of 16 to 24-year- olds do not have a job. the spanish government has a huge problem. listen to the dilemma facing the government. >> spain's government is convinced it needs to balance its books and reassure the markets, and therefore, it can continue to borrow money at sensible rates. people here say they do not need cuts, but they need the government to invest some kind of money to inject some sort of growth into the economy. spain is hurt

and the oil is reached. they install a sort of giant fowls several stories high over the drilling has been done it and the engineers have a very pretty nickname for it. but. i don't know the point here we are in front of the christmas tree is that when you cool it a christmas tree which you know the christmas tree did so well had and ridges and drop that was based on you since you have all response to. my. face. it was a. christmas tree the big day to fight for. this . was the price i feel like since something going on we will be put to. good to do this. twenty feet first must be. there it was done. by. some day so. you have the money back when you bet. your. three years on he's. not. with those those give you. a short sell if dean is continuing his crusade and he takes us to an incredible swallowed up by the underground. the fed far away. i would read in bed at the. door where. i wear number one. right there fifty six. if you. fessler went out with them. and in that bed. i'm not so bad about. us but as i sp

russia is a net exporter of oil and the oil. is similar in some respects to the rain or that it's been embargoed and as such for fineries that are constructed to run on that type of medium heavy density oil will look for alternative supplies and i've said they would look in the first. so how do you source of all good russian urals also food will fulfill the role of a very me see their volumes increasing as a consequence so this situation could play in the hands of russia you think if the ban is opposed to some extent yes to some extent but i think most of the control. is able to adjust its production when the rain barrels come off the market i think saudi arabia is the key element. to any shortfall that explodes ok thank you very much gary davis energy strategist had been people about thanks very much for for your view on the on the problem thank you. now anticipating that will ban on iranian oil crude prices are slowly heading higher light sweet is struggling for direction while brand blend is adding point three percent actuall

at russia they automatically lead to the oil price and it's that perception of russia being our oil and gas cut country that now if prices declining then there's a there's a lack of confidence in the investing into into russia which needs to move we need to move away from that obviously you know we've seen the rise of the russian consumer and the russian consuming comparison with euro brazil india or or china spends huge amount per person i mean the average g.d.p. consumption is over eleven thousand dollars here now whereas china china india it's far below that level when you want to jump in there two points we should remember the russian stock market tends to track the oil price fairly closely and we're in a unique position here for the first time that the stock market is trailing behind the oil price in other words the implies the price of oil of something around sixty dollars in other words stocks have priced in a huge crash in europe already sort of oil prices for it's already priced in which means is that reality closes between the price of it we're going to continue our discus

because water doesn't cost much and oil costs a lot. every time we load our oil product onto a tank we have to be sure it contains a minimum of water. was up and i say the blood of nigeria because it's their role materials it's their product in europe what is it we're here to help them exploited and for me it's what is the fruit of their history we spoke of their history because seduced into it's because of their millions of years of history. because we have the. world. and i hope it will allow them to fuel their economy just. in an efficient white my this but despite that there are a few problems. from your point of view can you understand that there are people who might want to attack you. but maybe maybe you should cut that just a bit. i'm just asking the question you don't have to answer that i know my answer is yes personally that doesn't surprise me cynical but doesn't surprise me. so he's right back on land we allude military surveillance to film something that's totally forbidden to film on pain or rest and major problems yeah.

and who feed the fire by tossing bowls of oil onto it. it's an apocalyptic scene under the dying palm trees. the men live here d.t.s. . sleep here and die. from the inside. light if anything if what they did he felt. he would. fund it was a. gift. i think there's a different to refining process we need all coal from the steam. on up that. they call one of. its local. finest. ok there's always through. the skin feast we went to the. fish block then and we put it inside the fold we said fly on the opening and up that from the greenspun coke they went out the gay community that we. do each leg that's going to knows we want to. define with each new team that would. go to. all on. one day with. quantity which by what i do with food. what can you say it's dirty it's dangerous. in a corner of a dying micro fisherman turn borders of crude oil just trying to get by. a nightmare no. more of a parallel economy which learn the basics of refining from oil company technicians . where does the crude come from and where does the refined products go. and.

supplying twenty percent of its oil needs from iran italy's. thirteen percent and greece for two percent of their oil is coming from iran and currently the refined of main major refineries in these three countries are totally imports five hundred thousand barrels out of six hundred thousand barrels of iranian oil which goes to european union they're already extended their oil purchase contract by by the end of two thousand and twelve we've been an oil company all rights are of archery independent energy consultant thanks for. remember you can always log on to our website for the latest videos comments and analysis at our team dot com here's what's a click away right now tear gas versus molotov cocktails romanians join the global wave of protesters seeking the resignation of their leaders with a country facing its worst in decades. and the brutal killing of the ousted libyan leader is still not being investigated and we give you one lawyers opinion why. russia's presidential candidates are busy ramping up their campaigns ahead of the march vote

but i wanted to tell you, this oil is one of the fifthiest oils we have. do we really want to pipe that through our country if there's a break, it could cause consequences. our republican friends, at any expense is unnecessary, i agree with the caller earlier that we need to go for green alternatives, and with the campus republican, i agree with him also. how are we going to run the oil through those lines and at what expense? so thank you for taking my call. host: grudge report. the news that gingrich says she could end her husband's career with a singlal interview. she sat down with abc news' brian ross for two hours and her explosive revelations are set to rock the trail but now a civil war has erupted inside the abc network and an insider claims on exactly when the interview will air. they determined it would be unethical to run the mayorann gingrich interview so close to the south carolina primary, a curious decision, one insider argued since the network has aggressively been reporting on other candidates. >> newt's wife of 18 years explained the to e

and the oil is reached. they install a sort of giant fowls several stories high and that really has been done it and the engineers have a very pretty nickname for it. but. i don't know the point here we are in front of the christmas trees that when you cool it a christmas tree which you know the christmas tree has the well head and ridges and charges that was based on you since you have all the spots. my. face. it was a. christmas tree would be days to fight for. this is the. price i feel like since something is going on we will be to put you. to do this. to a fifty first must be. there so we started. by . some day so. you have the money back when you bet. your. three years on he's. not. with those those give you. a short celestin is continue his crusade and he takes us to an incredible spot swallowed up by the underground. fed for it with. what breed of dead dead dead. or where. i went up by. three in june that there are fifty six. that's where i was just thinking that that. i'm not so bad about you know so

and the oil has reached. they install a sort of giant fowls several stories high and that really has been done it and the engineers have a very pretty nickname for it. but. i don't know the point here we are in front of the christmas tree is that when you cool it a christmas tree which you know the christmas tree is so well had and ridges and charges that was based on a civil response to. my. face . for it was. christmas tree the big day to fight for. this is the. price i'm going to go back seventh son to fires going up we will be put to. good investment. twenty feet first my street. so we started. by. day so. you have the money back when you bet. your. three years on he's. not. with those those to be. sure celestin is continuing his crusade and he takes us to an incredible spot swallowed up by the underground or. the feds or away. i would read in bed at the. door where. i wear number one. three is that there are fifty six. yes well where i was stuck. in that at that time outs. us but as i speak my place you

the search for oil will become. this enormous crofters itself at the heart of a wider system that consists of searching for oil ever deeper under the sea and also further and further from the explosive situation that prevails on land. summary platforms and drilling vessels on a map a tiny rectangle named act. as the owner of a few kilometers square that represents a new eldorado. in the center floating like a queen bee a bellyful of a treasure that the whole world covets is the flagship of the oil company token. and i have your ideas. if. we are far from everywhere but everything is checked. and you check who backs. all the bags. even the people you know you've been working with for years you have to search their backs even those including the head of the station. i'm already searching for. you to show anything that's bound by drugs guns knives. this kind of thing else this. situation on the gulf of guinea and the most populous country in africa nigeria is roughly the size of france and belgium combined. it's the si

that famous overpressure in the pipes in reality the companies make so much money from the oil that they don't even care about the gas they pump at the same time. these massive bernal's also create acid rain so that the water from the sky is no longer drinkable. garrison in charge of site surveillance court will have a visit that we spend several hours negotiating bargaining explaining ourselves to the higher ups over the telephone. reputation and his work with amnesty international in particular allow us to get out of trouble. to. a former farm worker sent esteem as a leader of most of the movement for the survival of the ogoni people its founder the writer can sorrow we. denounced both the dictatorship and power in the eighty's and the ravages caused by shell the largest of the oil companies present in nigeria . in a sham trial in which he was accused of murder and despite the process stations and anger of the whole world he was condemned to death and hanged along with eight other members of the movement. which companies are selling. i did visit. several music. i want to know about the

india actually has already bought iranian oil using gold instead of u.s. dollars and this is extremely significant because every year india actually spends twelve billion u.s. dollars on iranian oil and now actually beijing is also saying that it might want to jump on board with new delhi and also look into some sort of agreement with iran to continue to get oil new delhi and beijing actually account for forty percent of the imports of iranian oil the e.u. only counts for twenty percent obviously we've been talking about all week about this oil embargo that the e.u. announced on monday that they're hoping to roll out and put into place by chalabi first and obviously if new delhi and beijing find a way to continue trading with iran using gold instead of u.s. dollars this would severely hurt what the european union and washington is trying to do russia has also said that it wants to continue trading with the run using domestic car and seize instead of u.s. dollars obviously the point of the e.u. oil embargo would be to bring iran back to the negotiations tab

this is the oil sands. it's just oil that coats sand. and they boil it off, they recover the froth, they turn it into a liquid product called bitumin, that gets turned into synthetic crude and that's what we're talking about. the third largest oil reserves in the world are right here. how do you get it? a lot of times you do it through service mining. here's an example. the trucks are actually a little bigger in the mining operation, they're about seven stories tall, the story -- the tires are at least one story tall, built by a u.s. company, caterpillar, located in illinois, that's where many, 50% of all the hev yes dump trucks go to mining operations around the world, one of the big markets right now is in canada. robinson oil refinery is the other refinery in illinois. it's -- it's receiving the oil sand product, moving it into a product to move to the market. these are real jobs at a realtime that will create real jobs. 20,000 immediately and as my colleagues have said, ancillary jobs. you have pumping stations, you need to build the

not be going after ever dirtier and higher carbon sources of oil like tar sands oil.ost: all right, this is from joseph who tweets this in to you. guest: for many years we have talked about what it would take to get off fossil fuels. as long as we keep talking about it and not doing it, we won't get off fossil fuels. i think we could do it much more quickly, we can start by not going after the much dirtier, much more expensive and difficult to extract fossil fuels. use what we have now but don't start expanding, don't go after every last drop before we make the transition and get off of oil. host: haven't there been efforts for years to try other things, solar power, hydrogen cells, president bush had announced a big initiative for that. is that going anywhere? guest: i think that our clean energy initiatives are making great progress. the o'thing making great progress, frankly is fuel efficiency standards. our use of oil in the united states is going down. that's a really great thing. we should be proud of that. america can really be a leader a world leader, in clean

selling oil. today and they're buying it back a month from now this is the physical oil they're essentially bax leasing the oil and they're not doing it on exchange they're doing it between consenting adults completely opaquely what's happening is essentially some of the inventory that producers have and it could be b.p. it could be almost anybody could be the saudis it could be many producers no one knows exactly who it is but it is definitely going on the only people transparent in this are essentially shell who are vented transparently into a relationship with e.t.f. securities to essentially lease their oil and give price exposure the oil price exposure to the customer but most people are not doing this transparently so what's happening max is there is oil which the entire industry thinks is owned by the producer but it's not been sold already to somebody else and what that means is when they see the price going a certain way in the physical market or the forward market they think are well wil

the eu's approval of the embargo against iranian oil is effecting oil markets. crude oil markets soared monday, topping $100 a barrel. buy orders gained momentum. the rise came on mounting concern the eu's decision will fuel tensions over the strait of hormuz, a key waterway for oil tankers. crude oil futures dropped to the $75 level per barrel in october, after europe's credit problems dampen investors' risk appetite. oil prices rebounded on speculation demand would rise on the back of a positive u.s. economic outlook. >>> separately, the head of the international monetary fund, christine will he guard asked the your peep union to boost the size of the rescue fund to battle the region's financial crisis. >> the outlook imf will release tomorrow and only tomorrow, we will lower forecast in most parts of the world. >> in her speech in berlin monday, she said that the world economy faced a defining moment. she then urged the eu to contribute to a bigger bailout fund that will be established from its current balance of 500 billion euros. she pointed out a possibili

ban on iran's oil if you log on to r.t. top com you can take part in our latest global web poll that's a look at the numbers here they come from our web site so far over half of you believe it will give china all of iran's oil and much much cheaper less than a quarter thinks it will bring you observe corn and lead to a halt around nineteen percent say it will make russia the number one oil supplier to the e u and as we can see here a minority believe it will actually hamper iran's nuclear program to go online have your say while you're there on the web site have a look at some other stories we have for you there right now is such a big trouble for big ben russian developers could be called in to help stop london's iconic parliament buildings from sinking. and learn how some candidates in the south carolina primary have received the support of almost a thousand dead voters all the details and much more at r.t. dot com. in about ten minutes time it's the business here on r t but for now british students fate hangs in the bala

markets have already reacted pushing oil prices up and higher oil prices will just mean higher prices of goods. this is the implications of the fresh sanctions against iran we're joined now by pepe escobar columnist for the times who's joining us live from bangkok thanks for being with us so we have another round of sanctions editorial embargo in particular what if it will come from this. it's a nectar of economic war you know i said nobody ever lost money betting on the foolishness of european union politicos in fact it's another stake in the grave of italy spain and greece top five markets up oil exports for iran four are in asia defaced it's all but spain in greece else a very important so why are they going to do people are going to set up a third country bank accounts or make payments through third banks india for instance india peace for you run them oil in a turkish bank this is something that this spanier city tallinn's and the greeks could easily do they will bypass because they need iranian oil just like u.s. allies japan and south korea they ask exemptions from twelve to mi

regarding oil, although iran will try to find alternative destinations for its crude oil, the oil export income of iran will probably decrease because it won't be easy to redirect the whole 20% of its oil exports to other countries when the u.s. has been putting a strong pressure not to buy iranian oil to its potential customers. neither iran nor the united states hope to start a war right now and the tension that has been heightened because the verbal exchange of provocative statements might actually subside, iran will continue its military exercises regularly and i believe the tensions surrounding the persian gulf region will continue. as long as iranian oil keeps flying to china or whatever destinations, the block of the strait of hormuz will never happen for it has been pointed out iran depends on oil exports and the sate of the strait of hormuz is crucially important to iran. >> the strait is the only water way to the open ocean for many areas around the persian gulf. >> reporter: i reached the strait of hormuz by saying up the coast of oman. the persian gulf was busy with oil tanke

that was supposed to come to europe from iran will go to a shell oil that was going to asia from oil look a shows like west africa or even russia will now go to europe so europe can always one place the oil that's not the issue the issue is the level of pain ship. to some stuff. and russia fell at the end of last year the jobless rate dropped twenty basis points from november to six point one percent in that december according to a survey by bloomberg analysts had expected the rate to be significantly higher rising to six point six percent. close to the markets now we start with europe and the stocks are down as in greece and as private creditors continue to negotiate over the terms the terms of the hoped for debts one deal and the brits in the forty's down one point nine percent by miners and banks now for more its banking group among the biggest losers germany's dax is down one point two percent it's led by thomas frank luntz down around four percent and there's also a big loss for siemens but to pay off the fiscal first quarter profit. the russian markets still improving some wate