oil for a long term so the industry has been able to find the valuable or oil in areas that are extremely challenging and some of them very expensive so as we see you know the markets you know looking for diversification looking for renewable sources of energy that will longly you know make sure that the oil based industry will continue for a longer time so in the end all benefit producers because we see a long term cycle for their commodity and they'll be relying on exports of oil for a long term and consumers because we're going to see even though. strong oil prices at a level that they can afford and continue developing well following the sanctions against iran which the definitive target or the revenue demand for russian urals may be growing because russian urals are the true samples it's pretty much similar to the to what we get from iran's uranium crude and therefore it's a good substitute and and can we say that if the situation in the middle east aggravates that russian oil producers may win from this political situation well i don't qualify it as a win. would qualify milhollin sa

oil revenues. new budget rules will be adopted soon under which neither state liabilities nor budgetary expenditure nor long term investment programs will depend on oil prices excess profits will go to replenish farm he's the author of the greek term g.m. or knew of goldman sachs says russia can only benefit from lower oil prices as it will finally be forced into diversify in the corner me something much talked about but slow where the implementation and it's high time to do that as the morgan stanley analysts predict the commodity bubble is about to explode and the world might not see expensive oil for another twenty years. so do you think that these so-called commodities supercycle has really come to an end and there will be no more expensive oil for the next twenty years or so. let me try to. show we have a big picture on there the answer is sector. the wall this currently consuming about twenty fifty million barrels of oil equivalent if you put all the energy forms together and convert into the

>> signs were everywhere, "blood for oil." how were you following the oil trail? ? >> during the first 18 months or so of the occupation, i was going to oil industry conferences in london, reading the magazines and journals the companies used. i was building up quite a clear picture of what they wanted from iraq. i went to iraq for the first time in 2005. i discovered i had much better access to information being in london and my friends and colleagues in baghdad and basra did, so i started sharing the affirmation with my colleagues. this went on for a few years. i went to several of the meetings between the iraqi government and international institutions such as the international monetary fund. the big get together is of all the oil companies and more through observing that. -- and learned more through observing that. led by the trade unions, i was involved in a supportive role from britain and providing information and political solidarity. in 2009, i started work on my boat. i wanted to dig deeper while i was working on the book, so i interviewed senior officials

and after all where do sell the refined oil ok. is the soul of the black market in local markets local market there are people who comes here to buy from other places people that are not even. i to do it has a new talk this does business has a network so that people come from far and wide to get this productive for themselves and of course there's been a day when using it to supplement the d.v.d. the national. product because it is not sufficient nigeria is about one hundred fifty million population and about a friend i was at work and as you are aware and these people guys are doing these to the government for this. every way to sustain yes yes. here and there across the forest smoke rises to indicate a refinery apparently there are dozens we do a little further into the mangroves. which is the crude oil that these and refined come from how do they get it. on the way christmas trees planted like all but some economy. scorched earth that once served as a refinery patches of oil everywhere. the menace coating us have taken a risk th

oil and gas research institute to be here to fund. me and our walk was supposed to commence the following day care much but as we speak this is the only institute that is in the. list business a true this is the oil and gas research institute in nigeria yes that's a good resource so you can come out to do research if you want to come here you really see a lot just gone. inside you do your research this is and this was led by the president not an assistant not a minister president of the for the republican idea this through. that is what we. would it would look would not give up the. port harcourt three million inhabitants the principal city of the delta and growing exponentially it's country it's like the nigerians who work on the platforms often live here when they're ashore. we're in the car of patrick i can we met on the f.p.s. so. he said of the control room a major post two weeks at sea two weeks ashore he suggested that we stop to visit his home just now patrick is off to fetch his children from school. normally. gone out for a

needs to import no oil from venezuela, no oil from saudi arabia, no oil from iraq, and that also poses problems, because the quality of that crude specifically is attractive in u.s. gulf coast upgrading refineries and there aren't many outlets for that crude oil. there will be very specific plain inflicted on particular oil exporters, even without energy independence and even without a flood of oil coming out of the new production. >> adam, i don't want to misquote you but if i remember correctly, you've been cited recently stating that depending on the development of north american oil production, you might for logistical reasons see attempts to export, perhaps to export light oil and heavier in order to take advantage of the refining capacity that exists here. if political barriers make that impossib impossible, how do you see that affecting the outlook and the potential for expansion of american and north american more broadly supplies? >> right. well it's always, i think, a good thing for me to state that eia tries to provide the best unbiased and non-partisan energy research for i

, a group of energy analysts talking about oil reserves in north america, oil imports from the middle east. the event just under way, live coverage now on c-span3. >> jergen attempted to chronicle the central issues in the energy world. primarily that included the theory of peak oil and of course global warming. these are issues that have residents not only in the oil industry, of course, but also to civilization. one issue that was not covered in the book, however, and was not mentioned at all was a new age of, a golden new age of oil abundance, a flurry of new oil discoveries in north america, in south america, on both coasts of africa. these discoveries are so large that they could remake the world. they have the potential to make north america independent of oil from the outside, and they could disrupt the geopolitics and the economics that we know around the world, in china, in the middle east, in russia, too. jergen was not alone in noticing this momentous shift. two weeks ago, rex tillerson, the ceo of exxon mobil, said that he was blind-sided by it. for the last few months we'

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 flee. love all those in our boat call to them reassuring upward. a refinery. an illegal refinery under the open sky. here men distill crude oil barefoot bare handed amidst the steel. on the risks of explosion. men who've welded together a few cams to make stills. 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 here and tot up from the inside. like if even if what they did he felt. the ice would. find useful and if they. did. i think there's a different to refining process we need all coal from the steam coal one on up that nada. they call one of. it

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 the shape. 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 about alan g. export are so big impact there. but i think russia is you know it's often said to be the saudi arabia of natural gas and h

if they were a large oil exporter. i think ed already pointed out that a number of countries, russia, nigerinigeria, for exam have very high budget break-even prices. a number of others have fairly low break-evens. if you just kind of consider that range, northeamost of the a year ago were falling in the -- the average was falling somewhere in low 90s. let's say $92 up to $95 a barrel. actually because of higher prices and somewhat higher production in a number of these countries that budget break-even has come down somewhat. it might be in the mid 80s now rather than the mid 90s. kind of skipping over that for a second and going back to one of the major themes that have been brought up by virtually everybody here on the panel, i think one of the things that needs to be considered is, you know, what does this really mean for the u.s.? ed hinted at it that this is a huge potential positive productivity shock to the u.s. economy. so they can grow gdp, grow employment, strengthen the dollar, strengthen trade deficit. all

where do the oil prices go? what is your worst case scenario. >> i think the worst case scenario would be a closure of the strait of hormuz. we think it's a possibility and it's not likely to last very long. there's an incredibly big cushion underlying today's market. the cushion includes commercial stocks. commercial stocks in the oecd and the industrial countries are between 55 and 60 days of forward demand. that's a very big cushion. it's higher than the average. we have a strategic stockpile in the u.s. as to do our consumer partners in europe, and the far east and the saudis have added about 100 million barrels to inventory around the world. so, the world is really very well supplied at the moment and could withstand the shock of disruption that's of limited duration. >> susie: ed. okay. lots of good information. thank you so much we have been speaking with ed morris, managing director and head of global commodities research at citigroup. >> susie: get ready to pay more for air travel. airlines announced to

there are external factors going into oil prices, if there's a middle east crisis, the oil prices arepipeline is built. i would have built it for the jobs reasons, forget about the oil prices. >> we have an economy starved for jobs right now starved, this could add tens of thousands of jobs around the united states, perhaps 100,000 or more, it's a no-brainer. >> but quick here, chinese look at this game and laugh, these idiots could take almost 2 million barrels a day, and more in the the united states, no, we'll take it and we'll take not just 2 million, it's 4 million and they're going to just jump this business up like crazy. >> bottom line, gary b, the china play here, what's it going to do? >> well, look, brenda, it's not going to be good for us, it's going to be good for them and you know, it gets back to really this whole incremental, the negative as the administration likes to pose it. they always say, shoot, even if we open you anwar tomorrow it's not going to reduce oil prices, they have the attitude, yes, things that happen tomorrow are not going to reduce the price at the

well california as one of the largest oil and gas producing states in the u.s. and as the golden state cashes in on the boom the oil and gas industry is increasingly using the controversial practice of fracking last year about a quarter of all the oil and gas wells and drilled in california where for act with no regulation and place companies are rushing to dig some more california is prone to have droughts and earthquakes leaving residents worried about how fracking cut a fact their water supply and the potential for an earth shaking disaster artie's are among the land of reports from california. southern california is known for its pristine coastline but just a few miles away from this sandy paradise lies a one thousand acre oil field right in the middle of los angeles and i didn't buy here thinking this was going to happen in my backyard and i would have had second thoughts knowing if this was going to happen even live here gary glass and his neighbors are seeing their dream home school right before their eyes and they blame the increase production at the oil

>>eric: china interested in your oil. you would rather sell your oil to china? makes sense for us, we have a deeply integrated economy, with our companies operating on both sides and much of the investment, it makes sense to have the first relationship with the united states. the prime minister has made it clear, we will sell our oil on world markets to those people who want it. >>eric: you heard a canadian official saying on this show since the u.s. rejected the keystone xl pipeline, canada is looking to china for business. but one deal is not sitting well with democratic lawmakers here, chinese oil company is buying canadian oil company for $15 billion but my next guest is urging treasury secretary get neither to block it unless some conditions are met. and a democratic congressman from massachusetts joins us. thank you, sir. so when i heard this and saw the letter i tried to figure out why geithner would get involved in a deal between china and canada. can you explain that? >>guest: well, the canadians own leases on american land that allow for them to drill

get oil and. so on this on this is what are the measures required to nigeria of the day considering the threats that exist as a nigerian the ordering the militias and turned this contest you know as votes intruding in the maritime exclusion zone. doesn't this one item that they are now you armed here on board since it doesn't i'm not on. if i don't there are no weapons on board even you don't have money no making your ruler sure some guys climb up the chain and they have weapons machine guns for example what do you do but i don't see the other measures that would be taking place measures that have been designed for that situation. there are no guns on board and the situation is under control i repeat the situation is under control. i mean ari is a small fishing village situated on the island of bonny right at the mouth of the niger delta. and it's here that the gas sent from the f.p.s. so platform arrives by an undersea pipeline. if it weren't for the plant ameri ari would be a typical little vill

most countries outside of opec oil fields are producing a maximum of all times to return their investment on their capital so in this sense they cannot really step in to produce extra however they will benefit along with other produce with high oil prices and on that basis russia will benefit. in addition russia is exporting more oil to the far east through a new pipeline to parts of the world which storage is relied heavily on a rainy unoiled and there is a potential the russian oil heading to the far east will gain market share from the iranians and that might be a permanent shift if purchases such as japan korea. and china switched increasingly to take in more russian oil so there might be a permanent benefit from the situation now that higher oil prices is sending markets here higher the my six is also rising above fourteen hundred points getting up for fourteen hundred thirty roubles losing recent gains against the euro though

the bp oil spill. we sat essentially helpless as one of the richest corporations the planet has ever known tried and failed and tried and failed and then tried and failed again to contain let alone stop that leak in the gulf of mexico. but finally, after 87 long days, the country could at least start to breathe again. the flow of oil had been stopped. that was july 15th. that feeling of momentary relief, that feeling that we could finally exhale, that lasted all of 12 days. before here we go again. >> with the current sensitivity about oil, a spill in michigan is getting a lot of attention. a leaking pipeline that sent oil into a creek that feeds the kalamazoo river and while booms have been deployed, an estimated 848,000 gallons of oil is already escaped. trails of oil sheen can be seen all the way down the river, far from the bulk of the spill. >> less than two weeks after bp finally managed to plug their leaking well in the gulf of mexico, it happened again. instead of pb this time, the was a canadi

." >> shall be the first big oil company this summer to start drilling for oil in the arctic. it is a unique and beautiful area of the planet. to drill for oil there would endanger the wildlife, the polar bears, other creatures as well as the 4 million people who live there. >> as the oil giant shell prepares to begin exploratory drilling in the arctic, activists across the world have begun holding protests. we will beat with subhankar banerjee -- speak with subhankar banerjee, then mark hertsgaard. >> what is it going demint of the temperatures go up for 50 years? what kind of reaction will that be? >> all of that and more coming up. this is "democracy now!," democracynow.org, the war and peace report. i'm amy goodman. at least 14 people have been killed and more than 50 wounded in a mass shooting at a movie theater outside denver. a gunman wearing a gas mask and bulletproof vest set off what appeared to be a smoke bomb before opening fire at random. police say the suspect is in custody and that he's believed to have acted alone. the attack came at a screening of the new batm

because water doesn't cost much and oil costs a lot the company much else every time we load our oil product here 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 problem what is it we are here to help them exploited and for me it is the fruit of their history to destroy we spoke of their history because it is to do it it's because of their millions of years of history. because of all the other we have. in the world. and i hope it will allow them to fuel their economy just. in an efficient way 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 yet personally that doesn't surprise me. but doesn't surprise me. so he's back on land we elude military surveillance to film something that's totally forbidden to film on pain or arrest and major problems yeah. yeah. you know if thes

that's here could help transform the world's biggest oil consumer into the world's biggest oil producer. than adequate description of boring beyond i think it's safe to say anything that anybody has really seen in this country since probably the land rushes in the early one nine hundred. this is what food city a year and a half ago that in itself is a misnomer. this little town of just one thousand people was following much of the rest of the state to a long slow decline. in just i think months the population has grown from a little over a thousand to six in the top down. there was a time gene vidhan knew everyone until he grew up here now the shops on main street a full of strangers and for the head of this county's development authority that's progress to be pro. so now are frantically trying to get housing for those people here in an area that hasn't really built much for the last twenty or twenty five years right now the challenges in this community are to get water and sewer so that developers can build more permanent housing. in. in a country where unemployment still holds as of a

oil companies are getting a complete windfall on 25% of all the oil produced offshore. they don't pay the american people one penny for their drilling, regardless of their huge profits. it is unjust. according to the interior department, american taxpayers stand to lose about $9.5 billion over the next 10 years. yes, it's a give-away and the general accountability office present difficulties this free drilling will cost us $53 billion over the life of the leases. my amendment would recover these revenues that rightly belong to the american people and i reserve. the chair: the gentleman reserves the balance of his time. for what purpose does the gentleman from washington seek time in opposition? mr. hastings: i yield myself such as time as i may consume. this is yet another attempt to legislate a decision that was made during the clinton administration. the constant attempt to renegotiate contracts that were signed, sealed and delivered under the clinton administration is in violation of contract law. that should be very, very basic, it would seem to me, if, indeed, we a

the sanctions have oil producers scrambling amid the threat of reduced oil supply, there's also opportunity. >> reporter: saudi arabia is the world's largest oil producer. a number of countries including japan are pressing the kingdom to make up for any drop in oil exports from iran. >> we have over 70 customers worldwide. so we respond to their demands. >> reporter: they've been kept as a trump card to use to boost output in the future. development of offshore oil fields are underway at about a dozen locations. this japanese factory opened last month at the invitation of saudi arabia. it produces submarine cables needed for constructing offshore oil fields. with a diameter of 170 meters, the cables have special features to minimize any damage with contact with the ship's anchor. the company won the deal with its world-beating technology and long experience working with many countries to develop offshore oil fields. >> translator: we decided to open the factory because the country had a strong desire to introduce japanese technology. >> reporter: across the persian gulf from iran is the uni

as a result of this tension oil goes above one hundred five dollars per barrel in the russian market rallies to and choose the session on the very impressive gains i'll tell you more about that in twenty minutes. it's seven pm in moscow this is r.t. coming to you live from noosa now with our top story in just one of britain's bankers thought the worst public vilification was behind them the c.e.o. of one of the world's largest banks has been forced out bob diamond from barclays has bowed to all around pressure after his bank was caught fixing a key interest rate which overcharged customers when the financial crisis struck and the chief operating officer has also quit the third top executive in two days to do so here's our london correspondent sara for. well of course this story absolutely dominating the headlines here today after we saw the resignation from barclays chief executive bob diamond he'd come under a huge amount of pressure. rigging the key interest rates known as libel and this was used to set the course for the millions of businesses of consumers of investors tomorrow we

the eia type oil price gauge. to get the supplies needed to meet demand. we have seen occasions where it goes up and down pretty sharply. i think the market ultimately will set the price, and we will have to see how strong the oil rig count remains both in the u.s. and globally if prices continue to move south. so on a production front, a technology front could lead to lower prices would ultimately the ability to reduce the incentive for production or technology. >> would take that for a little bit further. i know when the typical response is given, we talk about prices being high. members talk about revenue needs and so on. is there a point where those countries, those countries have to make a choice tween how much they get? and that causes prices to come down and undermanned them? >> it's no doubt that a lot of what is unfolding has resulted from an opec subsidy and drilling. built into a model for a short period of time is the issue that we just raised. score requirements of commodity producing countries, and i

ruled out military facilitiave oil producersscrambling amid of supply, there's also the largest oil ries japan are to up for exports >>dwide. wes. >> reporte a trumpo boost output in the fu of fi about a locations. factory openednvitation ofabia. it produces submarine needed offshore oil a cial features minimize any contact with theanchor. the company with technology and working with countries t decided to open t g desire to introduce jaacross the p the currently all ed uae is strait of should conlate the stclosed. that's turning toacing the ocean. it's there to continue to without sending shiconnecting habishan fujairah. they to even if the strait is thed it canrting 70% of its oil through in aprilmoud made ao the state the at behavior is concernable buie so we can which japan and othe >> reporter: whiletion along th uncertain, they'r main nhk world.r medvedev says give in a with japan. the islands by medvedev made his in twos.lator: russia concede inch of islands. concession could nation. minister his future. with the japanese the ev they are part of jip was unacceptable. >> translator

mean for oil and gasoline demand. one oil trader says he sees crude prices stabilizing at lower levels. >> near term, we're going to ease back a bit. i think we're probably going to be in the high 80s, maybe 85.5, maybe 87.5 will be where we are going to settle back here. until then, i don't see any reason for us to go much higher. we basically overshot our objectives here. >> susie: last night we told you about chipotle's disappointing sales growth. the upscale burrito maker blamed a cautious consumer and slowing u.s. economy. today, chipotle shares got burned. they fell almost $100 in early trading, but they were able to cut their losses and end the session down $87. restaurant rivals starbucks and panera bread also lost ground in today's trading. the past few weeks we've been and if you're planning a european summer vacation soon, you could be spending less money. the euro fell as low as $1.2143 against the u.s. dollar, its weakest level against the greenback in about two years. and finally, taking a look at e.t.f.