the oil is in the sand. it has to be dug up and processed. >> this mine in general will be in operation for about 25 years. >> rick george, the colorado-born c.e.o. of suncor energy, took us into his strip mine for a tour. >> so, bob, this is what the oil sands tar looks like. it's a very rich, very pliable kind of a soil. >> now, when i squeeze it, why doesn't oil come out? >> well, because it's not warm enough. if you add this to hot water, you'll start the separation process, and you'll see the oil come to the top of the water, and you'll see sand drop to the bottom. >> it looks like topsoil, doesn't it? >> it does, but it is oil. >> it looks like topsoil, but all it grows is money. [laughter] it didn't always. the oil sands have been in the ground for millions of years, but for decades, prospectors lost millions of dollars trying to squeeze the oil out of the sand. it simply cost too much. t. boone pickens, the legendary texas oil tycoon, was working alberta's traditional oil rigs back in the '60s and re

taking more and more oil resources how is that going to reflect and the oil market prices. well i mean i think you're already seeing it i mean you know oriel despite the fact that the developed world has not grown in has shown almost no growth over the past five or six years europe has been i think six consecutive quarters in a downtrend or you'll still get about one hundred dollars a barrel if you look at oil based on twelve month average is it's not very much below its all time highs yes it did spike up to one hundred forty hundred fifty dollars depending on where the use crude brant. in two thousand and eight but if you averaged out those prices out on a twelve month basis today is india u.s. is only about five percent below its peak based on twelve months and brant which has been come the world's benchmark is probably two or three or four percent below it's maybe a little bit more maybe seven or eight percent below its peak so we're very close to peak oil prices despite the fact there's been no growth in the developed world with the lion's share of the world's economy w

taking more more oil resources how is that going to reflect the oil market price. well i mean i think you're already seeing it i mean you know oriel despite the fact that the developed world has not grown in has shown almost no growth over the past five or six years europe has been i think six consecutive quarters in a downtrend or you'll still get about one hundred dollars a barrel if you look at oil based on twelve month average is it's not very much below its all time highs yes it did spike up to one hundred forty hundred fifty dollars depending on where the use crude brant. in two thousand and eight but if you average that those prices out on a twelve month basis today is india u.s. is only about five percent below its peak based on twelve months and brant which has been come the world's benchmark is probably two or three or four percent below it's maybe a little bit more maybe seven or eight percent below its peak so we're very close to peak oil prices despite the fact there's been no growth in the developed world with the lion's share of the world's economy w

of the oil we consume. now, due to changes with fleet fuel economy standards and biofuels and other steps taken by the obama administration, i actually -- our daily consumption is down to 18.5 billion -- million barrels. it's not bad. you know, almost an 8% decrease in a mere seven years with the president only in office for 4 1/2. and we are now only 37% dependent on foreign oil. and that trend continues, of course, as i spoke earlier about the increase in production on federal lands and federal offshore lands between the obama administration and the bush administration. so actual low we are making significant progress with the new policies that are designed to create less oil dependence as opposed to the bush-cheney energy policy which was actually designed to increase our dependence on fossil fuels. the chair: the gentleman reserves. the gentleman from washington. mr. hastings: thank you, mr. chairman. mr. chairman, i'm very pleased to yield one minute to the distinguished majority leader, the gentleman

and stadol oil for price fixing key european oil benchmarks that end up affecting oil prices and chemical prices and hundreds of other products on u.s. markets as well course and what they say is that these oil companies who voluntarily report their trades to a for profit news publication called mcgraw hill and they have an energy division called plaid shirt so they were conspiring with each other to mislead plats to set prices that were financially beneficial for the oil companies but financially disastrous for consumers now as you said this sounds a lot like what happened a decade ago in the united states right around the time of the enron scandal in california federal regulators in the u.s. discovered that natural gas companies were colluding with one another to falsely report data to platts and what happened with enron just refreshment with iran ended up going bankrupt but not before of a stall billions of dollars from consumers through deregulated natural gas electric power markets but the key here is that this for profit media company oversees this benchmarks that affect. the price

kinder morgan energy, core labs for oil so you can find out where that oil is.esources, the lowest finding costs and union pacific for shipping it to places where the pipelines either don't go or don't have enough capacity. staff in oregon. >> how are you doing today? >> good. how are you? >> i'm hanging in there. i bought it at 28. now, it's 38 and change. i was wondering if i should buy more, sell or hold. >> i don't want you to buy. no. i mean, honestly, i think that you've got a really good game there. it's up 20% for the year. i would probably sell a quarter of my position. i still think oil's too high versus the rest of commodity, so why don't you make that move. frances in illinois. >> boo-yah, jim. my husband just loves your show. >> tell him thank you. my question is with the energy revolution taking place in north america, what do you think about amlc? >> okay, this is -- i don't know. i've not done enough work on it. i believe that owning individual mlps is a better do though. that's why we spend so much time identifyingi ining the better m. why do i

the price of oil will go up and that has really nothing to do with the supply and demand of oil so the guy who likes free market i think you would be opposed to that too well what free markets are we looking at here these big banks they enjoy huge subsidies i mean they're basically subsidized by the federal reserve both in real and notional terms i mean they get their money from the fed and from being able to conduct these transactions and like you said j.p. morgan itself has a huge hand in the role of oil speculation but that doesn't mean that it's a problem that has to do with free markets and i think there is a big difference between what people call deregulation and free markets so it's not a failure of freeloaders we just don't have there's a market for rampant speculation i mean that market's been created now it's a matter of whether we want to keep perpetuating that marketing people letting it run free or whether we're going to start clamping down on the market now that we see the effects of such a more. ok so you're a central planning kind of guy how do you want to clamp down o

oil. up in alberta, it's the red deer river that the oil spills have been fouling lately. oil spills have been fouling a lot up there for a long time. the network of infrastructure through alberta have had an average of two crude oil spills of some kind or another every single day for the past 37 years. two spills a day. it's easy to conclude that that's canada's problem to deal with, right? president obama has to decide whether it's going to be our program. president obama has to make a decision whether or not to approve construction of the keystone xl pipeline that will carry oil from alberta canada all the way through the united states to the gulf of mexico. that project requires a presidential permit in order to go forward because that pipeline crosses the international border with canada. the company that's trying to get that presidential approval to build the pipeline is a company called trans canada. their public pitch about why president obama should approve their permit immediatel

researchers tested the oil of 20 different types. the oil removed almost all of the nitrogen dioxide. in 1954, a typhoon wiped out the forests to ensure a stable supply of wood. they were planted in large quantities. the trees can with stand the low temperatures. now they make up nearly half the trees in hokaido's 1.5 million hectors of planted forests. he heads a forestry company and long wanted to make more use and unaware of the needle's value, he was throwing them out. >> translator: i was surprised by what the needles can do. if we go about marking them the right way, they have a lot of potential. >> in many parts of the world, air pollution is getting worse. now is an ideal time to use the tree's oil to clean the air. that's exactly what a major manufacturer of household goods is doing. >> the manufacturers's device extracts oil from the needles. first they ground the needle and placed them in an evaporator. the oil is distilled. the result is a highly concentrated good quality extract. the next challenge will be to find a way

crude oil is up. little weaker and maybe the refineries do not buy as much because maybe it is not as profitable as it once was. there has been a loss of about, 400-$600 a day. it has not gotten a lot of publicity. in a market that is sort of tightly balanced, that is a lot of oil. you need to replace it with even more perils. i think the libyan situation as had more of an impact than people are giving it credit for. lori: what happens tomorrow? does it fall? >> i spent the morning debating with various people. what if interest rates start to rise? it makes it more difficult, more expensive to hold inventories. on the other hand, it could show a sign that the market will get better. that will have an impact on the dollar. we debated ll morning long what would be the impact of rising interest rates. that would be the consensus. tracy: we have a lot of oil here. we have already offset a lot of this. if you took 2 million barrels a day of increased production off the market tomorrow, we would have a tota

military surveillance where iraq's fortune oil flows in and out. the country's fortune and perhaps misfortune two. wars here have always been closed in the same color black. and foul was at the mouth of the shuttle our best during where the tigris joins the euphrates forming the border with iran. on the iranian bank a gigantic portrait of the m.m. how many is there to taunt us a reminder that americans have gone leaving pandora's box wide open. been especially on me personally i never thought an old collaborated with the americans. just what chile i work to be i am and always have been a taxi driving us here. i still can't cross the country north to south from south dakota and follow all taxi i go wherever i can find work i have that i don't hesitate god be praised all i want to still live my. twenty days on the road perhaps one hundred checkpoints. with my friend khaled we've crossed a country which is officially no longer at war but where peace is not being restored a country divided by sectarian shia sunni and kurd communities a country where ta

oil. more importantly we're producing 7.5 million barrels of oil a day. they're at 10 1/2. we're on the road quickly to surpass them as the biggest oil producer in the world. that is feather they want to keep in their cap. some way he is jealous of our 20% increase in production over the last year and saudi themselves has to rely on oil to pay their budget and pay for most of what they spend in that country. melissa: yeah. >> i think they're finding themselves less relevant and opec in general having less control over oil that they have begun to enjoy the last three or four decades. melissa: let me take the other side of the debate for a moment. we're far from being totally energy independent. even if that happened there is demann for crude oil all around the world. asia is the biggest market. they're not discovering new production as readily as we are. isn't there still a huge appetite for their oil? >> there is a huge appetite. i think the folks, involved in opec, should be concerned are

the oil price story is a little different in the sense that 95, $100 oil isn't what it used to be.n living with higher oil prices, and by extension, prices of gasoline at the pump. we've been living with those for three or four years now. there's nothing really new about $100 oil. >> it's the same thing. we don't care about oil, but we care about gas. gas prices will go up. but we were screaming that this was doom and gloom a few years ago. i wasn't, but what do you think about that? >> it's not that you should ignore it, so two things, the first is, a few years ago, $95, $100 oil was new. so the impact on the consumer to the extent that it passed through the gasoline prices was something we had to deal with. but i just had a chart, which was spending on energy goods as a percentage of incomes. that's gone up, but what it's also shown you, it's lower than it has been the last couple of years. and that sort of speaks to the adjustment process that's already been underway, so to speak, where consumers are, again, familiar with the price of gasoline at the pump. it's not a new phenome

we have all this oil and may be in the process of trading the crude oil addiction to a gasoline addiction. we closed refineries on the east coast, a number of others have been through extended maintenance. the people in midwest are paying unbelievable amounts for gas, $4, $4.50, $5 a gallon -- >> really, already at $5? >> yeah, european refineries right now are in extended shut down getting ready for a ramp up in august and into july 4th, look for $4 a gallon. >> do you ever expect more refineries to be built? when was the last time we had a repineally built in the united states? >> you have to go bar 1970s, early '70s. there are smaller tea pat refineries to process shale oil in north carolina and other places, more locally so you'll be less reliant. so we may see some of that, but other than that, no, they are closing. they are closing in europe. they are closing here -- >> because it's not profitable. >> it's not profitable. the industry is going through a rationization like we've seen with the airline industry i have. >> thank you, john. have a great weekend. >> thank you. >>> still a

budget problems, billions of dollars of new revenue. >> why say some a new oil oil tax in exchange for approval of oil fracking is deal worth taking go. that makes the most intriguing question in this session. >>> supreme court ruling to allow federal benefits for same-sex couples would allow a person to petition to live in this country legally. there are 40,000 same-sex couples would ho would be affected by this. lyanne melendez has the story. >> all of those worries and concerns. they are melting away. >> until yesterday, brian lived in fear of his partner being deported to mexico. >> it's for ten years but everything is put on hold because we never knew what was going to happen. >> but the petition for a green card for garcia, this after the supreme court said all gay couples are entitled to the same as heterosexual marriages. u.s. immigration and customs enforcement has yet to issue guidelines but an immigration attorney is confident that, many couples will be helped. >> immigration gap, will end the deportation in my opinion. >> now they live in new york back in 2010. >> i'm sure

foreign oil companies are coming here to work with. the revenues are finally being used for reconstruction whatever it's a huge difference for us as in saddam's times we never benefited from the oil money or would he have any of this that i don't know that yet either he went so it's quite simple we could spend for we're iraqis and where i think they're very rapidly as soon as we have been able to create a stable basis for building a country ninety nine percent of people will vote for independence with. no one to one or the people who want their own country a country called kurdistan are looking at it as that they want their own passport but there's no kurdish one i spoke to could stand. a land of shepherds kurdistan is discovering well through its oil a nightmare for baghdad which had long controlled with the resources and riches. without driver khalid we had east towards the mountains along the border with a round. driving through abandoned villages i feel like i'm visiting some a trace. passenger ahmed is a survivor today he's on a p

losing the relevance as well as the recoverable oil.and simple and stuck with their benchmark because we do import 7.5 million barrels of crude a day in north america. we are stuck with the brent price and it determines the price at the pump too. since we don't have an energy policy and we're not harnessing our shale, natural gas in any meaningful way, we're hostage to an outdated benchmark that keeps us from enjoying the oil resources. i think one reason is our unstated policy set in washington, the fossil fuels should not be encouraged. if we were to harvest the resources we have in this continent, the price of crude in north america would be set here and it would probably be perhaps $20 lower than the price of brent. it would mean the price you pay for the gasoline would be roughly 20% lower, which would encourage more use, putting carbon in the atmosphere. another reason, we seem to be okay with the status quo. do you hear anyone in washington to say it's time to bust the oil cartel in order to create more jobs, become more secure a

as you said is way different than conventional oil conventional oil sloshes around in an underground reservoir or and you stick a drill down there and suck it out like a straw with tar sands the oil is kind of trapped in sandy dirt deposits and so you have to strip mine it out and it's kind of like peanut butter and so they have to add petrol chemical liquids to this peanut butter tar sands mix in order to turn it into more of a liquid so you can actually move it through a pipeline well when you add this bitch combined with. the tar sands it's far more acidic there's a far higher sulfur content and so what you have is far more corrosive properties when you're moving this tar sands through pipelines corrosive properties to the pipelines and so we've seen two huge high profile tar sand spills in the united states one was an bridges pipeline spill in the kalamazoo river in michigan in two thousand and ten we're still trying they're still cleaning this up and then exxon mobil's pegasus pipeline rupture in arkansas the problem with this is that unlike regular oil this stuff actually sinks

oil industry. the company is heading into deeper waters to find oil, and is expanding in the gulf of mexico. it plans to double its business in the gulf by 2014. "even with a modest increase in production, as the iea predicts of less than 1%, we are actually going to find or need to find oil reserves equivalent to 5 or 6 times the production of saudi arabia in the coming 20 years. so i think there is a lot to do in the coming years, and i think we have our work cut out for us." that was claus hemmingsen, ceo of maersk drilling. he adds that the company is trying to increase transparency and improve the industry's negative image. the paris air show kicks off this week, and some major competition is taking flight. airbus and boeing will both show off their latest models, including the airbus a350 and boeing's 787 dreamliner. the show in paris represents a chance for both aviation giants to showcase the fuel-efficient models and get a head start on attracting new customers. despite the dreamliner's tr

oil on kurdish territory. for a long time dominated by baghdad and saddam hussein kurdistan dreams of achieving autonomy. the first customer the first passenger on our trip is a member of the new kurdish parliament. here but just you know what in iraq we can say that oil has always been a curse. but today in kurdistan that's changing the. foreign oil companies are coming here to work with. the revenues are finally being used for reconstruction and what negative it's a huge difference for us as in saddam's times we never benefited from the oil money or. that he had any of this that. he went so it's quite simple we are kurds before we're iraqis and where i think they're very rapidly as soon as we have been able to create a stable basis for building a country ninety nine percent of people will vote for independence with. no one to one or the people who want their own country a country called kurdistan are looking at him as that they want their own passport but this now could i suppose you could stand. a land of t

number two, higher oil prices. show me a company that can handle higher oil rises right now. >> it's not a linear reaction. we can afford -- >> one at a time. one at a time. alan, go ahead. >> yeah, we can afford higher oil prices. we're not at 110, we're certainly not at 140 or 150, so i look at it as a positive. it's not an immediate drain. it's the sign of the ability to pay. if you look at it technically speaking, the stock market, if we can get back to the 1640 lefr level, that's a 16-point bounce on this range here and we're at 175. these stocks are highly correlated. the s&p move hand and hand, and i've seen a higher move in the s&p. that's going to transfer into a lot of other asset classes. >> i'd like to see the world through those glasses. 48 million people on food stamps say they can't afford this gas. number two is we're barely growing at 2%. we can barely get a gdp at 2% with all the money we're pumping into the system now. so how do you think higher oil prices is going to be good for the economy on a

>> well can't you know, with oil where it is at, i think oil is a little overvalued here.he old theory is the same. the transports themselves, they looked pretty solid. we are starting to shift some goods. the economy itself is getting better. we are moving some goods. it looks as if oil wants to come over. it looks like it wants to work its way lower. liz: we will check in with you, todd, in just a few minutes. mark, thank you for your expertise. >> don't you love how mark goes and where people are free. that is where people make big money. gold on track for its worst quarter ever. we have one analyst who said two months ago that a $200 drop was away. liz: madison square garden now a construction site. it is now in the midst of a top to bottom transformation. the bottom phase. we are giving you a rare and exclusive look at this phase three. does today's weak grows domestic profits of date show that they are ahead this season or is cdp just a review mirror and look. we will read your answers later this hour. ♪ [ male announcer] surprise -- you're having triplets. [ babies

we died for the no oil. how did china get to buy all the oil in iraq? >> china has spent more than $2 billion and sent hundreds of workers into iraq to secure a stake in the oil business. (laughter) iraq you awarded all your oil contracts to china, iraq. i mean come on, man. we launched a sustained shock and awe bombing campaign on your country. we reduced your already stressed infrastructure to rubble and unleashed sectarian conflict that even now cost your country hundreds of lives per month. and this is how you repay us? (laughter) you ungrateful-- china thinks oh, we spent $2 billion, rebuilding iraq infrastructure. big [bleep] deal! when we were in iraq we spent $2 billion just looking for the other $9 billion we lost. apparently we shipped it to iraq in a contain their said $9 billion and someone ran off with it. well, mission accomplished. (laughter) what does that say? that actually looks like a cutout of george w. bush. would we have to cut him out? i think we actually have that picture of him just with a different sign. i don't know by the way

where we going but at the other but in this oil rich country we can't find work. this is how we live the children of this country why is it fair does god accept this master is in the middle of all the country's oil wealth it's like the mother of oil but he doesn't seem to gain from it that the inhabitants are poor and the streets are filled with the unemployed and it. was once one of the richest cities in iraq today it seems to have been forgotten by both god and mankind because of oil is cruel indeed. and yet in the heart of the shantytowns is always given freely. and sweet offering . by our government isn't he in when it if the government doesn't take care of the poor and is only there to save itself until it sound pockets i do expect things to change the focus of oh my god no minister has taken the trouble to come and see us to ask how we survived or ask us if we need anything like that we have nobody to talk to. and so since the americans left the poor in the path. well as join the militia and the terrorist groups who would least provide money and protection.

in the oil days to the victor belong the spoils. here's the classic clays -- we're not the victor, you can't even joke that, but when you think china took the spoils and we lost the lives and we lost all of these trillions of dollars, so it's a very, very terrible situation. i mean, you just wonder who is thinking for us? by the way, this is one of many things. afghanistan is another one. china is in there, nothing even knew this, but afghanistan is rich in minerals, and we're fighting afghanistan and on the other side of the mountain, on the other side of the range, china has a huge excavators in there taking out the minerals while we're fighting. so, you just say, you know -- >> but why are we doing this? >> this shouldn't be happening. >> what has happened to the united states? no one is saying we should take -- that that gives creeden to the people who say we're only fighting for the oil, but what has happened that we're afraid to at least admit that we're falling behind, right? the first part of admitting to solving a problem i