politicians we heard a lot about those evil oil speculators but when oil prices fall more than twenty percent as they have in recent weeks the analysis is just plain old supply and demand you don't hear a lot about it noise aside when you look at production since two thousand and six global crude output has pretty much been flat and you can see that more or less in this chart of opec crude oil production since two thousand and five it hasn't changed very much over the years and in fact today opec which is the organization of the petroleum exporting countries and which sees itself as the oil markets prime regulator they met and according to media reports members agreed to maintain their existing oil production agreement but they pointed to a possible emergency meeting should oil prices fall more let's get a sense of where we really are though what plays into oil prices what we're looking at long term in terms of oil availability peak oil and what energy and resources we can look to in that case we have byron king here he is editor of a gore a financial outstanding investments an energy

dollars eighty dollar oil and when you look at the oil turn of the oil sands in canada when you look at other things i mean so you've got a price floor that's being set by those marginal barrels of oil at the same time when you talk about opec we begin with talking about opec opec's problem is that most of those countries in opec cannot afford to sell their oil for less than a boat let's i'll give you a number eighty to ninety ninety five dollars a barrel if they don't get ninety five dollars a barrel for the oil that they're exporting their countries run national deficits they're there they're in there they're in the red yeah it's an interesting point i want you to hold that thought i will show our viewers a chart of that when we get back so i want to talk a little about the politics behind those oil prices are going to when we get back and also nuclear and not more natural gas and all these other alternatives so this is byron king a glorified actual oil and energy expert and we'll be back in a few minutes with him also still ahead we talk a lot about gold and silver on this show bu

no, but my oil is your oil and i don't want it shipped over to china which raises my price on the oil. why don't you see this? >> john: because they would retaliate. free trade is good, this is a bad idea. to your last point you say that gas stations collude and set the price. we a bet about that. let's play a clip. >> i go to gulf, shell, get (t), it's the same price. >> john: i don't believe you. >> john: i won a thousand dollars, i want a thousand. can i get a thousand. >> john: all right we made the thousand dollar bet and i paid off even though i didn't lose it. >> what do you mean you didn't lose it? >> northern boulevard, they got four stations in greater manhattan. they have it identical or one penny off, always. on the websites you can list every day the prices are different. we checked, shell, mobile, gulf, they all had different prices. >> bill: not even -- they don't even speak english. they get a little text. this is what you will be charging today. and they slam it in. yes you do. again for the record, nice guy, you are stand-up guy you paid the thousand dollar bet. >> y

no, but my oil is your oil and i don't want it shipped over to china which raises my price on the oildon't you see this? >> john: because they would retaliate. free trade is good, this is a bad idea. to your last point you say that gas stations collude and set the price. we a bet about that. let's play a clip. >> i go to gulf, shell, get (t), it's the same price. >> john: i don't believe you. >> john: i won a thousand dollars, i want a thousand. can i get a thousand. >> john: all right we made the thousand dollar bet and i paid off even though i didn't lose it. >> what do you mean you didn't lose it? >> northern boulevard, they got four stations in greater manhattan. they have it identical or one penny off, always. on the websites you can list every day the prices are different. we checked, shell, mobile, gulf, they all had different prices. >> bill: not even -- they don't even speak english. they get a little text. this is what you will be charging today. and they slam it in. yes you do. again for the record, nice guy, you are stand-up guy you paid the thousand dollar bet. >> you pai

the united states spends more than $400 billion each year importing oil. now more than ever the united states needs to ramp up domestic production of traditional energy, including oil and natural gas, coal and expand alternative fuels and renewable energies, including all of them, and i won't name them because you know them. american imports almost 50%, i think it's a little bit less than 50% now of our oil. the u.s. treasury pays out an average of $84 billion a year to defend shipping lanes, to bring that oil here. these costs are never included in the discussion of cost effectiveness of tax incentives for oil and gas as compared to alternative energy. for sure we need a tax system that is less complicated, fairer and will make more competitive, us more competitive in the global economy. however, there is a long history using the tax code to promote energy policy starting with intangible drilling costs and percentage depletion provisions that are almost 100 years old. experts in favor of these provisions argue that these provisions are not tax expenditure

well you know what's true of oil is true of everything and what wasn't quite understood at that time when they made that famous that is an appreciation for the difference between easily accessible resources whether it's or oil tin copper or anything else and the hard to get stuff now we have a better understanding of that we've used up all of the easily accessible oil natural gas copper tin and most of the resources the things that are easy to extract out of the ground without huge expenditures of energy those are all now gone now there are a lot more resources left there's a lot of oil and natural gas and minerals and copper and tin in the arctic for example in greenland and if you're willing to spend vast amounts of money and risk tremendous environmental destruction and use a lot of energy in the process we can extract that remaining resources but there are natural limits to that process and it gets more and more expensive and what paul ehrlich predicted is beginning to happen now the prices of basic commodities is rising quite rapidly so so you know some characterized ehrlich's i

all which have collections to the oil company and control of the oil from cradle to grave. how did you pick out the anecdote? it goes back to standard oil days. there's a treasure trove and as a reporter i know it's difficult how did you pick out the anecdote for this book? >> i started out with a map. once i chose exxonmobil is a subject i basically looked at the map where they owned oil and gas and basically asked myself as a reporter, what kind of world business? why are are they there? then i became interested in traveling across that map because as you pointed out earlier there are a close subject. they were not excited to know that i was doing this book and i didn't volunteer. they handled my inquiries in a professional way but they didn't really cooperate much. i think they would say relative to some projects they cooperated more than usual but the perspective of the ambition of the book while it was helfer, it was pretty limited so i think they had to go outside in. once i started with the outside in prospect i started with the map. the first year i traveled, try to

that's a lot of oil. now, why are we using less oil? why are we importing this oil? in large part it has to do with the fact that we have a much more fuel-efficient vehicle system coming up out of the ground today as we speak. so it's important that we all recognize that we've made significant progress on what we are doing in terms of energy imports. renewable energy. many of us have spoken about a bright future for renewable energy, and yet when we look at the world of the fairy tale purveyors, they'll say, well, it's not going to work. you ought to just go back to the way it was in the old day, and forget about wind energy. forget about solar energy. forget about geothermal, bio fuels and other tuttive fuels. i'm froud say in the world of reality which adds up top what the american people want, that the united states has doubled its energy production in the last three years. we've doubled our production in the last three years and it is, in my view, not time for us as a country looking for a long-term sustain energy program to dom a u-turn or to press the pause but

oil production is up twenty five percent canadian oil production is increasing brazil's increasing and you start to see a world in which the western hemisphere in five or ten years will be more trading among itself and again what you're describing more of a shift towards the east for the middle east let's talk about these unconventional oil and gas the technologies right now shale gas has also become one of these shifting basically to shape all of the energy market but russia is not on the right i mean it were obviously the birth of shale gas it took a couple decades to actually have it happen but it probably is the biggest energy. innovation since we give this century it's transform the energy market the united states the u.s. was going to be a big importer of oil and he in fact was going to be importing l.n.g. from not only from the middle east not only from australia but from russia and now it's self-sufficient and now the debate in the united states is about l. and g. export are so big impact there. but i think russia as you know is often said to be the saudi arabia of natural gas

right now we're using 91 million barrels of oil per day. here in the u.s. we're producing about 10%. if you add to the chart the petroleum liquids to that chart, we're at about 9 million barrels a day, so we're producing about 10% of our petroleum needs today, and that's estimated to be going up by 2035, 30% more to 112 million barrels. if we're going to produce our part of that in the future, we're going to have to have incentives like we have in place to do that. >> thank you, senator. senator bingaman. >> thank you all for being here, and first i congratulate mr. hamm and all those in the industry who have been so successful at increasing production. i think it is a good thing for our economy. obviously it's strengthening our economy. i've always thought that there are three primary goals that we have as a country with regard to energy. one is we want to have an ample supply at reasonable cost. second, we want to have diverse sources of energy so that we're not dependant upon any one source, and, third, we want to have energy policy that does the least d

i understand that we have become a net exporter of oil, and while we're not the top producer of oil in the world, i think we might be number three or so, but we apparently have more drills going today. wells producing today than i think maybe the rest of the world combined which is pretty amazing. i chair a subcommittee that deals with nuclear safety, and we have four brand new nuclear power plants being built in this country for the first time in 25 years, and i'm encouraged with the technology and the safety of the technology that it provides. cafe, we've implemented -- adopted cafe legislation, fuel efficiency for fuels in 2007. senator sharp, congressman sharp, that was something you had a whole lot of interest in, and we appreciate your help on that legislation, but we're ramping up fuel efficiency standards for folks to a fleet average of 36 miles to the gallon by 2016 and over 50 miles per gallon about a decade after that. our friends from ge i think are on line for building a new solar energy product out in colorado that is going to be grid parity by 2016, and we've actually ha

that oil moved. what we've entered into today is an immobile portion of the oil an earth. and this is estimated to be at least a third larger than the mobile portion was that we've produced in this world 160 years. we're now able to do that through one thing, and that is provision horizontal drilling. we're able to go down two miles, push right, go two miles, and hit that lapel pin, you know, with a drill bit. it's that precision that we've developed. the independents largely responsible for that development, myself and others. and we're able to do that precision drilling. and that's what i unlocked this new era that we're into. and it's certainly a great era. you know, we've had tremendous success in these new resource plays across the country. somebody aptly described the new natural gas supplies that we've unlocked, some 100 years, i think it could be even greater than that. it's tremendous. and we've seen the imports go down as new productions come on, here in america. we've gone down to about 42% right now, from 60%. a high of 60%, we're down to 42% now. and it's esti

one, light, sweet crude oil. two, sour high sulfur oil. three, heavy oil. four tar sands oil. five, oil shale. and oh, just to mix it up, a little natural gas. what they forgot was, of course, wind, solar, and geothermal and biomass and they won't even allow us to have an amendment out here on the floor in order to have a debate over it. but that oil above all ageneral ta you have, it's very comprehensive and i give you a lot of credit for figuring out every single way we can help all the oil companies in the united states at the expense of all the renewable energy industries. i continue to reserve the balance of my time. the chair: the gentleman reserves the balance of his time. the gentleman from washington. mr. hastings: thank you, mr. chairman. i am pleased to yield two minutes to the gentleman from mississippi, mr. nunnelee. the chair: the gentleman is recognized for two minutes. mr. nunnelee: thank you, mr. chairman. i thank the chairman for yielding. i rise in support of the domestic energy and jobs act. america has been blessed with an abundance of natural resources un

i'm a long-term bull think you have to own oil. $83 is not the equilibrium price for oil. we're not staying long. if i'm right, a shakeout, lease come july 1st, then the bottom after the government decides to stupidly release more oil that we can't get rid of or going down in the 60s. $83 is not the long-term equilibrium price of oil. >> what is? >> basically we have to be back to $100 or go to $65, we're not staying here. >> the risks are to the downside if you think, okay, you've got global growth concerns. that's perhaps what's been driving oil prices down, a weaker euro and stronger dollar which hasn't been helping either. >> i think the guests that you have later on, i think the driving catalyst has put oil down in saudi arabia, for lack of a better word the screws they have been trying to put to iran to some degree. it will be very interesting what comes out of the opec and the sanctions on july 1st. >> we'll get there much more fully later in the show. joe, what are you trading today? >> watching the laggards really, industrials, builders, energy names. what i'm act

business and kind of people associate big oil with exxon and everybody in big oil is bad, and do you think it's spread to other companies, or in the case of apple, it seems to be kind of thin-skinned and control and secret i have and still be really hip and cool, people can like you? >> guest: yeah, it's really interesting. i went back and looked at the top five corporations in the united states from, say, 1945 to the present. and exxon's always on the list. the companies around them rise and fall. where the companies in the '50s were number one or two, u.s. steel, don't exist anymore. today apple and exxonmobil are one and two. ten years ago it was exxonmobil and walmart, microsoft is always in the mix. but you look out 50 years further, which one do you think is likely to still be around, exxonmobil or apple? that's one question. i read the jobs' biography by walter isaacson, terrific book, and it is striking how different and how similar they are to exxonmobil. only the united states could produce both apple and exxonmobil because on the one hand, you know, apple is a completely c

now we have a good deal of oil flowing. canadian oil, 70, $80 oil hitting the market now. this has been completely turned on its head. we've already taken out both in brent and wti the 38% retracement levels. next target is the 58%. that's $74 wti and $82 brent crude oil. >> all right, steven. great to speak with you. thanks for your analysis tonight. mike murphy, want to go to you because the oil stocks across the board have been getting crushed. you've got to wonder if these companies have factored into their quarters the lower price in oil that we've seen. >> exactly. this morning you saw one of the smaller companies, key energy, came out and lowered their guidance. the stock was down over 15% on the day on the news. i don't think you jump into the oil names right now. i think what you have to look at is as oil gets down under $80 a barrel, that's going to start to trickle into consumer's pockets. it's going to help a lot of consumer names like a target, like a mcdonald's. these are names we're looking at here. as the price at the pump starts to go lower, i think that's

oil reserves have been leased out for oil drillers. in fact, domestic oil production is at an eight-year high and the production of natural gas plant lick wades, liquefied petroleum gases used for fuel, is currently at an all-time high of more than two million barrels per day. all told, the u.s. energy information agency estimates that u.s. petroleum production in 2012 will average more than eight million barrels per day. the number of oil rigs in the united states has quadrupled under president obama. at the same time, petroleum consumption in the united states has dropped by more than two million barrels per day since its all-time peak in 2006. now, since domestic oil production is up and petroleum consumption is down, u.s. oil imports are at a 17-year low. in fact, the united states is importing 10%less oil than it was eight years ago. now, one might reasonably conclude that since the united states is producing more oil and consuming less, oil and gas prices would be going down. but that's not happening. oil and gas prices are going

around and gave them basically privatized them gave them to two big oil companies mammoth oil which is owned by oil baron henry sinclair and the pan american company which was owned by edward edward doe haney the koch brothers of their day these two guys these are secret no bid contracts and they were a great deal for the oil corporations so hard in hands off strategic oil leases to fall and fall immediately hands those leases off to big oil if all this sounds fishy it's because it was fishy a few years after the oil deal people started noticing that interior secretary albert hall was spending money all over the place which was strange his fall had been a pretty poor guy that he was known to consistently be broke and even unable to pay his local taxes but now he was spending like crazy and using lots and lots of fresh hundred dollar bills a senate investigative committee took an interest in falls new found riches launched an investigation into the interior secretary and what they found was the fall had received three hundred sixty thousand dollars in today's money would be well over

this is true in conventional wells that go down and hit a pool of oil or gas and a reservoir of oil and gaz, as well as when hydraulic fracking is used. is that an accurate statement? >> yes. generally the way -- the way the fresh water resources are protected. >> right. so -- >> the well. >> in a case there is hydraulic fracking opposed to traditional, it's protected the same way, similar risks of groundwater contamination exist from how we've been producing oil and gas since the civil war. basically. >> we've had -- >> obviously some technical improvements. >> we've had casing and cementing requirements for oil and gas wells for many decades. they've actually evolved and improved over the years. but a basic principal throughout the history of regulation has been we case the well through the fresh water zone to isolate. >> all right. and so when you frac a well, you're quite a bit below the water table. the water table is what -- a couple hundred feet in oklahoma? >> it varies. that's one thing the geology -- >> you're talking hundreds of feet, not thousands of feet. >> it can be -- in

on the oil market. well of course we have to to wait and see what happens when the sanctions will be in full swing and of course one of the interesting things is what's countries like china. korea japan are going to do are they really going to thirty to bring the their impulse from me down from around down that's what they promised to do and the self important thing is who is going to get a waiver from the united states because they are in this as well but if given these assumptions then we consider it likely that about a million barrels a day of iranian crude would have to look for other buyers. answering one of my previous questions you mentioned that the use reserves in the european countries and especially in the in the united states are full that they are full that they have ever been which which makes me smile because something being full of the info they were about is fun but. how parables of the tomato make it hard to make it clear what i mentioned about the united states at this at that at this

i mean, offshore oil drilling, which thanks to the long-term rise in oil prices has become economical coast of ireland, something still true after the decline in crude. yet it turns out there could be barrels of oil off the coast of ireland. that means we need to talk to providence resources, the longest established irish independent oil and gas producer, and the country's leading offshore acreage holder. last week we learned that providence's barry road discovery in the celtic sea could have much more oil and gas than experts initially believed. the company announced initial flow rates of 3,500 barrels per day. this is high quality light, sweet waxy oil, the one that gets the highest price. plus they also found a gas bearing zone. this field which providence owns 80% of could have anywhere from 59 million to 144 million barrels of recoverable oil. how much of a game changer is this news? in the past 40 years, only 150 wells have been drilled off the coast of ireland, compared to the thousands of wells that have been drilled in the north sea. we want to talk with tony o'reilly jr., th

and i'm referring to the combustion of oil products as mr. hamm reminded us in transportation and the use of natural gas. the tax for energy would be primarily your senator from montana so you're aware of this. on coal, it would be a modest tax on oil and modest tax on natural gas that would lead to the substitution that's under way right now away from coal, which is the most polluting energy source, toward natural gas and generation of electricity. that's the great environmental opportunity of our time. it just turns out it produces a lot of revenue. >> so it's a cousin to carbon tax? >> this is not a carbon tax? >> a cousin? >> it's a kissing cousin of the carbon tax, let's put it that way. this is a tax on the six criterion environmental pollutants which have been identified for years by the environmental protection agency going back to the clean air act of 1970 and enhanced by the clean air act amendments of 1990 and so it would focus specifically on the pollution that is associated with these criterion pollutants and what are those? well

oil would go to texas. it wouldn't necessarily come to california but other kinds of heavy crude. >> they want to bring from canada to california. >> how is it relevant to what you're doing? >> we're not getting a lot of direct impact. it's more about the principle. it's about how the oil companies are lying. the reports indicate not that many jobs will be made by this. it's not going to have major impact on gas prices. it's not really convincing. the matter of principle is we can't say, it's okay because it's not really. it's not affecting us directly. we have to draw a line. if we say that's okay, then it's like giving the oil companies a free ride to do whatever they want. we can't say, it becomes harder and harder to stop. it really bolsters our chances for fighting them off in the future. >> i think it's an issue of how politicians are representing our interests. >> it's going against that and siding with big oil, gas, coal, i think we need to hold them accountable. the climate movement has been fighti

we're 75% oil with last year's production, we focused on oil. with the bachen play, senator, started in montana, and that's where we started with the deep end of the pool is over in senator conrad's state over in north dakota, and we were one of the original players over there. and i might say that only here in america can a 13th child sharecrop return into the nation's

oil is down big.a back will be a tail wind to push the company forward. everything from the ingredients they use to make the food to paper and plastic used to package the stuff has become cheaper. that should be a boon to the company's gross margin. con agra makes a profit off every dollar of sales. just as they were the biggest loser as commodities edged higher it will be the biggest winner now that the same commodities have come crashing down. that's just the icing on the cake. as much as con agra benefits from lower commodity costs it's not something management takes credit for. some say it's luck. last spring when con agra was being strangled management developed a strategy to promote growth. that's paying off. this is the difference between con agra and kellogg. con agra has a plan. kellogg is just putting out fires as they crop up one after another. contrast is as stark as they come. a year ago john bryant took over at kellogg. i have debated putting him on the wall of shame. there is a lot of r

the worlds oil. 2% of the worlds oil reserves that leaves about 20% on a daily basis to oil is consumedin the world. when you look ahead a look at china coming online, we bought 11 million, told my cars in mr. expected to sell maybe 14 million. maybe next year 16 million are in china i think leicester they caught up the cut of by some as are people listening out. but it implications for the consumption? would've implications for the price of oil? >> the point is that china and india in many countries, which have finally discovered the key to economic growth are going to be the source of growth of demand for a very long time to come. that is what is behind the seachange occurred in worlds petroleum markets. we need to respond to that we will respond to it. we respond to have an energy and i use in hybrid when appropriate that we will respond as i said to senator snowe for energy conservation. that is except with the price system is going to do. it will also push us very strongly in the direction of the domestically produced feel. natural gas that is available now in large quantities due

now reports saying iran's got a lot of oil stockpiled right now do you hear my that oil do you think. well there isn't a stockpile of oil because the oil that was going to europe was around seventeen percent of iran's total production. now some of the countries iran has voluntarily some of the countries iran has decided not to supply because of overdue payments of . various other reasons but iran is there there is an increase. to china and perhaps india in due course. as there will be increased. let's look at other aspects of western sanctions on iran in that shipping companies have been forced to pull the insurance for iranian tankers how's it going to get its oil to any potential future by it's having these sort of problems. well there are minor problems are there arrangements can be made the western insurance companies are not the end all of it the sales to china i mean because you'd think china would not buying more because the manufacturing figures have not been particularly strong but with a rising dollar which in vastly affects the oil. it's prudent for china to buy oil at curr