oil production was falling another words forty dollar oil sixty dollar oil eighty dollar oil was not enough of a firm price to give. even independent operators of oil and gas here in the united states enough confidence to go out and explore for new oil it was only when oil securely repriced not at the first time above one hundred dollars a barrel in two thousand and eight but when oil came back and re priced more firmly at one hundred dollars in two thousand and ten that you begin to see us oil production rods so i think the best way to think about this max in terms of what the capital costs are per barrel we have got to have at minimum ninety dollar oil in this country and really frankly one hundred dollars oil to give confidence to a oil c.e.o. that he can go out and invest and earn a profit on a new on a new barrel of oil and that as i said i think it's going to be a wonder it would be a wonderful test if we could see oil fall maybe to eighty or seventy five dollars a barrel for a short period of time to see what kind of supply response we get. from the shale regions in the bach a

oil production was falling another words forty dollar oil sixty dollar oil eighty dollar oil was not enough of a firm price to give. even independent operators of oil and gas here in the united states enough confidence to go out and explore for new oil it was only when oil securely repriced not at the first time above one hundred dollars a barrel in two thousand and eight but when oil came back and re priced more firmly at one hundred dollars in two thousand and ten that you begin to see us oil production rods so i think the best way to think about this max in terms of what the capital costs are per barrel we have got to have at minimum ninety dollar oil in this country and really frankly one hundred dollars oil to give confidence to a oil c.e.o. that he can go out and invest and earn a profit on a new on a new barrel of oil and that as i said i think it's going to be a wonder it would be a wonderful test if we could see oil fall maybe to eighty or seventy five dollars a barrel for a short period of time to see what kind of supply response we get from the shale regions in the bokken

and when oil was discovered we leased our land to the oil companies. the oil companies supplied the jobs and the money. and we all went along for the ride. in the gulf of mexico fifteen miles coast state an accident heard on oil rig piece by piece the rig known as the deepwater horizon was drilling in over a mile of water and over three miles. on april twentieth two thousand and ten approximately nine forty five pm methane gas from the well ignited. eleven workers were never found. the deepwater. horizon sank on the morning of april twenty second birthday. shortly thereafter the u.s. coast guard began to observe an oil slick spreading from where the rig once stood in the well as blasting full force another adult and recorders or at least matching well known plates who had them for eighty seven days the oil would flow without pause leaving the u.s. government the oil industry and the world scrambling for solutions or to steal told the truth is we don't know when that's going to start doing everything we can finally on july fifteenth the well was capped

and when oil was discovered we released our land to the oil companies. the oil companies supplied the jobs and the money. and we all went along for the ride. in the gulf of mexico. state an accident heard all piece by piece the rig known as the deepwater horizon was drilling an over a mile of water and over three miles. on april twentieth two thousand and ten approximately nine forty five pm. methane gas from the well ignited. eleven workers were never found. the deepwater horizon sank on the morning of april twenty second birthday. shortly thereafter the u.s. coast guard began to observe an oil slick spreading from where the rig once stood in the well as blasting full force individual and recorders or at least not meanwhile no plates are not there for eighty seven days that oil would flow without pause leaving the u.s. government the oil industry and the world scrambling for solutions or to steal told the truth is we don't know when that's going to start doing everything we can finally on july fifteenth the well was capped and the oil stops flowing and

and when oil was discovered we released our land to the oil companies. the oil companies supplied the jobs and the money. and we all went along for the ride. in the gulf of mexico fifty nine miles coast state an accident occurred on oil rig piece by. the rig known as the deepwater horizon was drilling in over a mile of water and over three miles. on april twentieth two thousand and ten approximately nine forty five pm methane gas from the well of night. eleven workers were never found. the deepwater horizon sank on the morning of april twenty second birthday. shortly thereafter the u.s. coast guard began to observe an oil slick spreading from where the rig once stood the well as blasting full force into the dollar and recorders or at least nothing while no plates are not there for eighty seven days that oil would flow without pause leaving the u.s. government the oil industry and the world scrambling for solutions or to steal told the truth is we don't know when that's going to start doing everything we did finally on july fifteenth the well was capped a

domestic oil.s discouraged domestic production and le us moreependentn imports. then in december 1978, iran, racked by political upheaval curtaid production of crude oil. cuoffrom this major soue, oil prices to the united states again more than doubled. frustrated consumers were reacquainted with the energy crisis as long gas lines reappeared. oil suppliers put pressure on t goverent to decontrol gas and oil. mr. schlesinger, what turned this around and made decontrol acceptable? first, there was the opportunity created theall of thehah. public concern was rising whenroctionended in in. governmeal concern was risingven mo rapidly. alarm ulmately became more than alarm-- almost panic in the industry-- to acqui additional supplies. some action had to be taken byhe government. by june of 1979, president jimmy carter announced the gradual phaseout of controls on domestic oil. once controls wereifted, did the wildcatters jump out to start drilling again? yes, indeed. it had an immediate effect the l of

the oil is in the sand.t 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 reme

just for releasing the oil just for releasing oil. tens of billions of dollars of fine well if you can eat. released. those pictures down from twenty five billion to maybe one or two billion billion dollars here a billion dollars are you talking real moving. the company that makes correct it now coke is a joint venture with exxon mobil to to received over twenty four million dollars in u.s. government contracts over the past decade. now co shares directors with b.p. and exxon mobil. according to its own website now co has some pretty influential fans so from here to here this is the scope the distance about five hundred miles. west detroit problems central nervous system problems the headaches and dizziness. and the skin problems the intense rashes there are hundreds of thousands of people who are dosed with high amounts of toxic material the more risk of having severe health effects often we're told don't worry honey we'll take care of you and it won't hurt we'll wait and find out that a very good product what we thought was a good p

just for releasing oil. tins of billions of dollars of foreign well if you can eat. how much oil is released. those privileges down from twenty five billion to maybe one or two billion billion dollars here a billion dollars are you talking real moving. the company that makes correct it now coke is a joint venture with exxon mobil that received over twenty four million dollars in u.s. government contracts over the past. now shares directors with b.p. and exxon mobil. according to its own web site now co has some pretty influential fans so from here to here this is the scope of the distance about five hundred miles. west detroit problems central nervous system problems the headaches and dizziness and nausea and the skin problems the intense rashes there are hundreds of thousands of people who are dosed with high amounts of toxic material. or risk of having severe health effects often we're told don't worry honey we'll take care of you and it won't hurt we'll we didn't find out that a very good product we thoug

we've brought some fish-oil capsules. these are the standard fish-oil capsules with their 1,000 milligram. >> anybody who takes fish-oil product knows this product. >> exactly. or you can take this small omega xl capsule, which one of these is equivalent to 10 of these. let me pour 10 in your hand, larry. you'd have to take all 10 of these to get the benefits of one small omega xl capsule. so, women and children and men -- nobody wants to swallow 10 minivans, if you will. you can have one. >> well, how can you get all this in this? >> well, i think the doctor can answer that -- why it's such a unique formulation. >> the difference in the quality of the oil is the extraction process gives us something called a free fatty acid, which is the type of fatty acid that your body can utilize. whereas in this fish-oil capsule, the reason it has to be so big is that this is the triglyceride form, which means that it's bound and your body can't utilize it readily. when you take this, this is just fatty acids that can go directly int

we are not anti oil. we don't want to defeat oil. wanted competitive market in which no one commodity is important and the analogy and we use, all of us, turning oil into salt which was once the strategic commodity because it was the only way to preserve food so wars were fought over salt and countries shows where to place colonies due to where there was an abundance of salt. with the advancement of refrigeration salt became not that important anymore so nobody really cares for knows how much salt we imports or who controlled worlds of reserves or what the world salt price is. that is true independence, true independence is not walling yourself from world market, it doesn't really matter anymore who sits on the bulk of world conventional oil because it is one among many different options of what you can put in your tank. but since we have been having an alcohol party i wanted to make a shout out here to one particular other technology which is vehicles electrification. the most fun car i ever drove. don't know if we have to as low re

oil was different.t did not give workers the same opportunity to threaten the productive system, and therefore proved much more difficult to democratize on the basis of oil. difficult for the country that produced the oil, but also for the countries that began to switch from coal to oil, realizing you could de- democratize a country if you became more dependent on oil. thehe decision to reorient world to oil was a response to counter cold unions in europe? >> there were many reasons from the turn to oil, including the use of oil for transportation, but among the calculations, during the rebuilding of europe , europe waswar ii strong in the coal industry, and to weaken those kinds of democracies bikini to take place in europe was to undermine them by beginning to replace the basic energy infrastructure of europe, to oil, bringing oil from the middle east. the moving of production abroad that we think happened in the 1970s actually began in the 1940s with the kind of the democratizing process as well as t

barrels from the oil market.n weeks, the price of oil quadrupled and it was sent into a tailspin. most americans, the embargo is a distant episode remembereremembere d mostly by the notorious gas lines and in retrospect, it may be one of the most seminal events of the 20th century. think about how many features of our current energy system were born after the embargo. international energy agency and the department of energy and the strategic petroleum reserve in the standards and the trans- alaska pipeline system. one very important outcome is the coupling of oil from electricity. until 1973, it was generated from oil and when president carter urged them to turn down their heating, he was right. and this includes increased use of natural gas to eliminate the use of oil in our generation. only 1% is generated from oil enemies no longer saving whales and unless we all drive electric vehicles, solar and wind and nuclear power will have nothing to do with her oil situation. these are all positive developments and thi

just for releasing oil. tens of billions of dollars of foreign well if you can. released. those pictures down from twenty five billion to maybe one or two billion . billion dollars here a billion dollars in return for real movie. the company that makes corrects it now coke is a joint venture with exxon mobil that's received over twenty four million dollars in u.s. government contracts over the past decade. now co shares directors with b.p. and exxon mobil. according to its own web site now co has some pretty influential fans so from here to here this is the scope the distance about five hundred miles. respiratory problems central nervous system problems the headaches and dizziness and nausea and the skin problems the intense rashes there are hundreds of thousands of people who are dosed with high amounts of toxic material the or risk of having severe health effects often we're told don't worry honey we'll take care of you and it won't hurt we'll we didn't find out that a very good product what we thought was

you can't expect to have people allow you to continue to storm their oil rigs oil rigs are a very serious operation with really big safety issues and you start scaling the rig and then people have to come and try to get you off it puts them in danger and so i can certainly understand why they were apprehended and finally towed away from the site the other thing that's quite ironic is greenpeace is using a diesel powered ship to. occupy a loyal rig and so they you would they needed oil to get there if they had sailed there or rode there in a boat maybe it would make more sense i do tend to agree with president putin that they are not pirates it is pretty obvious i think their intentions were not to loot the rig or anything like that but they're still putting people in danger and it is a serious situation but let's just quickly talk about the oil rig itself it is static as opposed to floating offshore platform is it true to say that this is actually a much safer way of extracting oil for the environment it's my understanding that this is the first oil platform that is done zines specificall

it is a giant oil field. world. >> you basically -- it is your technology that -- that made us figure out that. right? you could not figure that out by drilling a hole. >> that's exactly right, jim. as you mentioned we had -- analyzed the reservoir and more importantly, the reservoir fluids and see how the fluids can transmit through the rocks. and in doing this, trying to put -- technology to bear on hydraulic fracturing and over the last year, we had been recommending to our clients that they have more hydraulic stages in their horizontal wells and have these stages closer together and pump more sand to frack the wells more intensely. you get more production every day and over the life. you end up with a situation like our friends at pioneer are doing. they are an ex- -- in excellent shape and excellent position. >> you had something in our reservoir situation. we have been there and love it. then you mentioned -- wolfberry, the paradox basin. now when i look that up on the map that's in -- in -- our northe

just for releasing oil. tins of billions of dollars of farm well if you can buy. how much oil is released they might be able to get those penalties down from twenty five billion to maybe one or two billion billion dollars here a billion dollars are you talking real moving. the company that makes correct said now coke is a joint venture with exxon mobil patricio over twenty four million dollars in u.s. government contracts over the past decade. now kosher. there's directors with b.p. and exxon mobil. according to its own web site now co has some pretty influential fans so from here to here this is the scope the distance about five hundred miles. west detroit problems central nervous system problems the headaches and dizziness and nausea and the skin problems that intense rashes there are hundreds of thousands of people who are dosed with high amounts of toxic material the more risk of having severe health affair it's often we're told don't worry honey we'll take care of you and it won't hurt we'll we didn't f

find oil where people didn't think there was recoverable oil? >> yes. jim, exactly right. you look at pioneer. scott sheffield and tim were doing a great job there. one of core laboratories most sophisticated technological clients. we are helping them in the permian basin and also in the eagleford. now, when you look at applied technology from core lab, as you mentioned we are going to help them produce more oil and gas every day but more importantly, we are going to apply this technology so they cover more amounts of oil from that reservoir over the life of the reservoir. >> now, i understand that this sprayberry wolfcamp, this may be it. you did come on once and last time because i was telling you i thought it would be big. you said there might be something else big or even bigger. is this possibly the second largest oil field in the world? >> that is correct, jim. it is only behind the guar field in saudi arabia which has about 160 billion barrels of recoverable oil. if we look at the trends together those can produce over 50 billion barrels of recoverable oil. it is a

it's not as expensive as oil that comes out of canada and the oil sands up there. but if you talk about saudi arabia, they can bring one out of the ground for $13 a barrel. it's going to cost us between 60 and $65 to bring oil out of the ground. if it got down per barrel, they are going to say, is this able to continue? if oil got down to the $30 range, it will put the brakes on the whole thing. we don't need $100 oil but we can't have very, very cheap oil in order to pay for the fracking and technology that comes into having to pull this oil out of the ground. >> chris, how does this u.s. energy boom place ourselves in the world? you were in china and middle east last month. what are they saying about the geopolitical results of all of this? >> it's making america more competitive and other countries are starting to note. number one, think about the implications to all of these security that we provide for these energy waterways, china, strait of hormuz out of the middle east. if we are becoming self-sufficient by 2035 or become the biggest oil producer in the wor

much oil was leaking during the 2010 oil spill.art of the trial will determine exactly how much oil spilled. under the clean water act, polluters face maximum fines of $1100 per barrel of spilled oil. if the polluter is found to be grossly negligent, the fine can grow to $4300 per barrel. the on the well-known devastation caused by the bp oil spill, the oil and gas industry louisiana has also been blamed for destroying coastal wetlands that provide a vital barrier against flooding from storms like hurricane katrina. headeday, democracy now! to the frontlines of this issue, the lower ninth ward of new orleans. the team met with community theizer jacques morial, son of the city's first african american mayor. jacques described the scene at the edge of the water to democracy now! plus amy littlefield. we are here in new orleans. we're just about to play you this piece of community organizer ja. >> i make community serving here in new orleans. i'm glad you are here at the lookout. this place, more than any other place, amplifies how cl

take oil in. like to have his comment on whether he wants to admit that this went on, this prints made this statement on the national news. guest: i'm not sure what the state man was -- statement was. a company like exxon mobil, the last place they set a price is the wholesale distribution point in the system. the price point you are seeing at a station is not set by exxon or mobil. they license their brand to an independent owner. you have significant investment in this country of integrated oil companies that produce and sell oil. conoco phillips, conoco, and phillips 66 refines it and sells it at the rack. marathon oil split up as well. all those companies have no more control. the people running conoco phillips have nothing to do with gasoline. they take crude out of the ground and sell it to a refiner. same thing with marathon. hess is splitting up. the only integrated refiners you have now are exxon mobil, chevron, bp, and shall. -- shall -- shell. americans look of these oil companies as be

you can either sell more oil at a lower price or sell less oil at a higher price.hat we are seeing opec decide to do is to sell fewer barrels at a higher price. you had a front seat to venezuela going through the same type of decisions. how does the fiscal breakeven price of oil play out in venezuela? >> thank you. first of all, we must realize opec is no longer a monolithic block. opec, the strong side of opec, is basically saudi arabia and the four producers in the middle east. they are increasing production. they are producing something like 16 million barrels of oil a day. the world imports about 20% of their oil from these countries. the middle east is very important. but opec is less important because venezuela has become a minor player in the global sense. our production has declined -- our production is going to clients who do not pay because of political, ideological reasons, so i would not agree we should be so much concerned with opec as a cartel any longer. i believe now we have a multiplicity of energy offers in the world. we have conventional oil on o

, it would be around 33 million gallons of crude oil and approximately 790,000 barrels of oil were it's a subsid yardry of a nor region come wan knee but home grown. the jones act requires a ship moving goods within america to be built in america and most of the steel comes from american steel meals. like many shipbuildings fell on hard times during the recession but the boom helped them triple employment in the last two years to more than 1,000 workers. >> it's a game changer for our industry. the increase in shell oil production has increased dramatically and ships played an increasingly important role to move the oil to refineries along the nation's coast. >> reporter: these jobs will last for awhile. the shipyard is a contract to build six tankers. liberty bay is the first and each ship can cost as much as $200 million and take up to a year to build. so while the actual oil and gas being drill sd thousands of miles away, the impact is being felt much closer to their home. for "nightly business report" in philadelphia, i'm brian sullivan. >> you can read more about shipbuilding in ph

the oil is here. they didn't discover oil in brooklyn so i had to come where they discovered oil. >> these are men who live here and work the oil fields, right? >> oh, yeah. this is typical bakken housing. they're here. completely full. if i had another 30 spots i could rent them out before i was done sooig signing the papers. >> what's a spot like this go for? >> each spot is about $800 per month. >> $800 a month. >> yeah for the spot. >> that's their own trailer. >> that's if they bring their own trailer. if we provide housing like we do over there, that's about $2500 to $3,000 a month. >> 2500 to $3,000 a month for essentially a mobile home here. >> yeah. cabin, two bedroom cabin in an rv park. >> i mean, are they happy to get it? >> oh, yeah. i'm completely full. as i said, if i had more i could rent more. my only limitation is just inventory. >> so i'm going to assume this piece of land here, you can see there's still an open area here, is pretty profitable to you. >> it's been the best investmen

there have been subsequent derailments of oil tankers, oil cars even in alberta, which is frightenedlot of people. i think rail is being seen now as a way to transport the oil. the pipelines seem kind of plugged up. i don't think it is a necessarily a something that will replace device. >> i only have a few seconds more. i apologize. i want to quickly ask you -- you have been covering this in- depth. has anything come out as a surprise to you, or what has been the biggest surprise in your research on this? >> the biggest surprise has been the opposition to the northern gateway pipeline in british columbia. that opposition seems to have grown. it has caused a lot of stalling. this project seems to be taking a lot longer than people thought. as is true of the keystone pipeline in the united states. it has been going on for a long time. a decision hasn't been made. >> gilliam stewart, thank you very much, joining us from calgary. we have been talking about the canadian side of the issue, but coming up in our next installment, we will look at the u.s. side where politicians are scoring p

we have high oil prices. are high oil prices good for the environment? >> no. high oil prices in and of themselves are not good for the environment. that is something that is costly to the u.s. economy, it's costly to the consumers and because they have little choice but to continue buying oil at sky high amounts in order to make their daily rounds, it's not what drives better environmental out comes. what drives better environmental out comes are good policies such as a higher fuel economy standards. and other alternatives for americans to use besides their cars in order to make their daily rounds. the good news for the environment in the united states right now is the fact that it looks like oil consumption may 2007 and ed a peak in looking ahead as a friend of mine at exxon mobile said is efficiency as far as the eye can see. we see efficient vehicles on the road dritch by policy and the other thing that is happening is to project at a set percentage out into infinity which is foolish and looks like we're reaching a sat relation point in termings of per capi

oil fields in the entire world. and you know tyler, we can read about it. we can hear about it. but in order to really understand what's happening here, you've got to see it for yourself. so we hopped on a plane and we came out here to west texas to see what this permeon midland boom was all about. >> reporter: two things seem to go on forever in midland, texas. the skyline and the number of oil wells. midland is right at the center of the energy boom that's coming from what's known as the permeon basin. and in an area known for high school football, the topic of drilling is never far from conversation. midland native shawn holcomb played for the new england patriots. he now works as a land man in the oil industry. figuring out who gets paid for the oil riches under the earth. >> they come to me and they say, hey, who do i need to pay? you can own the land, not necessarily do you own the minerals. >> reporter: the industry is booming so is the town. midland now has one of the highest per capita incomes of any city i

the independent domestic oil producers.imply have so much newfound crude in this country, these companies will be able to deliver terrific growth for years, not months, not quarters, years to come. that's why by popular demand, i want to introduce you to emerald oil company, a tiny high-risk domestic oil name where the growth is downright phenomenal. this $8 and change a stock is not for the faint of heart. emerald mainly operates in the williston basin in montana, the dakotas, canada. the home of the bakken shale. we visited that, brian sullivan and our friends. they have nearly 60,000 acres containing 313 drilling sites. the company has two rigs running right now, but they plan to add a third next year. the key is that emerald expects to double its oil prediction from 2013 to 2014. while the company is not yet profitable, they expect to turn a profit starting next year. they have some holding in colorado's niobrara shale, as well as other less well-known plays in montana. let's dig deeper with the president and ceo of eme