it's better than opec oil i can tell you that.r had. >> boone, let me ask you, are you in favor of exporting this oil and natural gas if your first priority is to make us energy independent? >> you've got a problem here as far as oil is concerned. we -- all our refineries were designed to process light, sweet crude. then it was determined that we were going to have mideast crude which is heavier, lower gravity, and dirtier. so the refineries over the last ten years have really when they upgraded they went to that type processing, so now we have light swede crude in america and refineries are not designed for it. i would say, go ahead and export until your refineries will go back, encourage them whatever way you want to do it. that's another job for washington, but get the refineries back on light sweet then that's when you get independent. but a big factor in my plan to bring together canada, mexico and the united states in a north american energy alliance. this is the one that drives the military crazy. because that is energy sec

we should join opec, because that would be an energy policy.re not supposed to produce all of the oil at once, and if you joined opec, wouldn't they tell you to produce less and make more profits and milk the gravy train for as long as possib possible. shouldn't we save the oil so we have some in 20 or 30 years when it is saudi arabia and russia and the only other countries that have the oil. we are the only country with the major reser 1/2 the world going back decades long. so sit is not like we are not doing a better job of producing it, but i argue to produce less so that we have chips in the game. >> and well sh, stacy, jonas drs a scooter, sow he is not concerned about the gas prices, but are you? >> well, i'm clearly concern canned about the gas prices, but to john's point even without a plan, you have horizontal drilling and the hydraulic fracking and all of this stuff going on and which rat the highest output we have ever been at, and we have no plan or guidance and we are still number one. the output is the highest, and we are doing fa

. >> give us a clue on the state of opec.audi arabia's -- saudi arabia as a marginal player and with less wiggle room than before. how much wiggle room does opec have, given the news from russia? talking, you're really about opec as being equivalent to saudi arabia. if you look at the other countries, being nigeria, libya, iraq, iran, none of them have spare capacity in the way the market defined it. it would be easy to ramp up reduction. there is a huge -- there are huge problems in libya, as in a rock. iraq. a it would have to be saudi arabia or even kuwait to ramp up production in the future. harris, on the chart i price quest again you. . how important are floral carbons to the economy? >> nobody gets that excited about the economic impacts of violence and war unless they create disruptions to energy in the middle east. it's just not that big a story. we have talked about how russia, their ability to develop oil in the future might be impacted. but in the short term, europe needs oil and natural gas. russia needs it for t

the violence in iraq which is opec's second largest oil producer sending prices in the u.s. 15 to 20¢gher than expected. >> every time i fill up my tank i go wide-eyed when i see the screen. it was this much. >>reporter:even though the gas prices are high enough to bring you down, these drivers say they plan to enjoy their holiday. >> it's frustrating. it makes you want to stay home more. it's a good opportunity. the weather will be nice. it's worth it. >> it's something that you have to sacrifice. if you are with friends chip in and make it fair. >> that is a good idea. the families are digging deeper to cover the gas prices. in turn they cut back on eating out and shopping and other trip activities to make it work. >>> you have to balance the books. >>> a new jersey brown bear didn't get his hand caught in the cookie jar. it was his head. the cookies in question were animal crackers. they took the photographs of a 6-month-old cub. wedged up in a tree. in ringwood, new jersey. they tranquilizered the young bruin. then they were able to cut the jar off the head of the black bear and f

that is, according to a forecast from opec.the economic group has put pressure on demand in developed countries since 2010. that is the business news. back to you. >> thank you for that update, marcus carlson. web news is next. >> welcome to the web news. show, up 10 -- on today's reaction to brazil's world cup semi final defeat. malaysia and ain roland trip around barcelona. -- whirlwind trip around barcelona. the web is abuzz with commentary sawhe one-sided match that germany against brazil seven goals to one. the range of reaction, some are simply euphoric, and others are despond and to say the least. there is a collection of sadness during the match and the final. the easiest posting on twitter #shameyoubrazil. clumped --l highly , for example. and the match has inspired all manner of montages and parities on social networks. andtions that mock result their performance, like this picture that shows the brazilian flag of the goal full of balls. the malaysian authorities are cracking down on business in the streets of kuala l

it's the second biggest producer in opec. although most of the assets are in the southern part of the country, which has not been affected at the moment, the whole idea of the country splitting up into three again is a real possibility. and, therefore, i think we should take it seriously. the oil price maybe just got a little bit ahead of itself thinking there was going to be serious disruption. at $110, $112 for brent, that's probably where we should be now. >> barclay's saying buy crude oil data as possible role meaning the market will pay you to retain it. >> that's right. at the moment, we have the front month is actually much more expensive than the later months. so yes, that does suggest that. but i think the other thick about it is we're in the driving seat now. that's another thing, demand is picking up. but that hasn't actually affected very much in terms of the oil demand. and so the oil demand, as far as i'm aware, is not being cut back by iea or any of those other forecast organizations and, therefore, that was in

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overall analysts say that there is capacity and opec will step up with exports of oil is lost.have oil coming online from libya, supposedly. the issue will be if the companies in russia are ever affected like exxon, slumber j, halliburton. rounding it out, you have to take a look at u.k. natural gas. that rose to the highest level in the 2 weeks on not only the sanctions, but the jet crash we heard about earlier today. russia provides europe with about half of its gas imports and half of that goes through ukraine. i have energy experts saying that all in all this is not going to be a big deal for the commodities market partly because europe has a tremendous supply of natural gas right now. inventories are the highest since 2010 and that is helping to deflate the risk premium somewhat. overall it was a relatively warm winter. the one problem that could be an issue is in france in terms of inventory could only about 58% filled. there theyreally hot would need a little more gas. >> alix steel, thank you so much. mark crumpton and i with our coverage over the last hours. a number o

iraq is second biggest producer in opec, 300 million barrels a day. iraqi oil isn't spread out evenly. 75p. of it is concentrated in shia dominated southern iraq. one fifth is in the north, where an estimated $1 billion in crude lies below kurdistan. to get it out, the kurds last year built a pipeline, where at least four oil tankers have been filled with kurdish oil. but finding a buyer is a problem. baghdad is about to sue thin who transports kurdish oil, and while they managed to get a buyer in israel, others have sailed through morocco and through the suez canal to singapore and south to texas in order to sell their crude. aljazeera, new york. >> . >> this is all about what jim crane estimates at $400,000 in crude oil that the kurds are producing each day. in houston, texas, at rice university, jim, good to see you. basic question, if someone is following the story, we're not entirely sure where this oil came from, right? ed. >> well, it's alleged to be in the autonomous region of kurdistan, and they're trying to unload somewhere. houston is one o

. >> and andy, you made the point if texas was a member of opec, the state would be the second largest producing member. extrapolate that in terms of what companies are poised to benefit or what type of companies. >> well, we have certainly the number of producers are benefitting from the increased production and the higher prices. we got a number of those companies in the permian base such as occidental petroleum, conoco philips, marathon, bhp, pioneer, devonn, they all stand to increase from this oil production. in fact, you might have heard about potential of increased amounts of crude oil and exportles. and that has another effect of improving the revenues from a number of these eagle port producers. >> andy, leave it there. thanks, so much for your time. i appreciate it. andy lipow, lipow associates. >> i think can you go two different ways, he talked about the railles, they make the tankers that go on the rails. the other way to go is with the shirps front line fro. if we are going to see a reversal like jay was talking about with some of the oil flows. >> you don't see a trade i

. >> if you use natural gas, america can establish independence from opec, it can put americans back to work, we can lower our carbon emissions, and we can begin to improve the economy as well by not exporting $1 billion a day of american wealth. greatest wealth transfer in human history takes place every day, and it doesn't have to. >> since we first reported this story, tim and christine ruggiero sold their ranch in decatur, texas, and moved away. they have also resolved matters with aruba petroleum. as for the problems in dimock, pennsylvania, when cabot oil and gas stopped supplying bottled water in late 2011, the environmental protection agency stepped in. the e.p.a. is supplying replacement water to some residents and testing well water in 60 homes. the e.p.a. also plans to propose new rules for shale gas extraction, which, by 2012, accounted for 30% of our natural gas supply. [ticking] coming up, maverick biologist j. craig venter on dna. >> dna is the software of life and the key to evolution of life on this planet, and now the key to the future of life on this planet is unde

. >> is there going to be proper regulatory -- only second to texas and beating some opec countries as well. on this scale. and the fracking has made a lot of people nervous, and it could compromise the water supply in the state with the missouri river. isn't this quite a gamble? >> look, there are some down sides, there's tremendous up side to producing new energy in this country, for this country, but, you know, about i think six years ago, i suggested the state legislative leaders and the govz for and others that they needed to have a special session of the legislature to get ahead of all the infrastructure problems that will come from this kind of development, and i was told to take a hike, they said you're in the u.s. senate, not in state government. but the fact is there are very significant infrastructure problems, and the state is way behind, not ahead of them. and so i think that's why these races having debate and discussion about these issues is very important. >> is the oil interest in north dakota and in that part of the country to strong there really isn't much difference

opec is producing the most oil they have in 30 years. there's talk that libya will bring more oil ton to the marketplace, but right now, it really depends on the next 48 hours. right now the terrorists continue to assault baghdad. kirkuk, and it really depends if these areas continue to hold, prices may level out, but if we start to see the terrorists make some way into the southern parts of the country, where the bulk of the production and is the bulk of the exports, that could happen. when, i don't know. >> july normally does have higher prices, so one question we have to ask, what happens the rest of the year? do you see this continuing through the end of the year? >> well, i mean, there's a lot of things could happen over the next couple of weeks. it could have major impact on gasoline prices. this should be the best of times. the u.s. is producing the most oil they have since then 1980s. we're actually making more gasoline is in country than we ever have before, but this risk premium continues to overhang the market. 60% of what you

. >> we can get off opec oil. we're down to 4 million barrels a day of opec oil.we were over seven. so, we've come down to four. and we can knock that out within the next three years. >> you agree, tom? >> i do with one caveat, and i think boone developed it a bit, too. in my book "following oil," i speak to this. basically, the kind of oil we're producing on the margin is going to exceed the capacity of our refiners to optimally run it, so we need some exports while we reconfigure our refineries. that said, financially and barrel for barrel, we're in a position to back out the bulk of the remaining imports over the next three to four years. >> yeah, we need more refineries, anyway, too, to help with the demand for gasoline. does all of this necessarily mean lower prices down the road? i mean, that seems to be the promise. as we get off of the middle east oil, start to develop more of our own, prices can come down. is that a pipe dream? >> well, it depends on the geopolitics, bill, and that is something that it's hard to take to the bank. but there's been a fair a

dryad part for opec's in brazil if you're betting person you had put the money or the turtle is.that at wilson. big bang theory is jim carson big fan of this 20 year-old jean bouchard became the first canadian male-female to make it to a grand slam final after she beat third city 76628 some headlines during australian open after receiving good luck text from a fellow canadian she like to go on a date with him she admitted. bouchard will play could get a fellow check will see several box 76761. one's files of for saturday followed by the men's on sunday >> : nfl minicam three weeks away riders have lots of new faces including wide receiver james jones. he has an incredible story to tell about some homeless shelter and homeless shelter growing up in san jose only to lead the nfl with 14 touchdown catches two years ago in green bay. >> : i think about where i came from and what all the things i've been through s.c. my side walking to do his " own room. walk down in the refrigerator needing your what ever he wants of the refrigerator. that's the reason i work so hard this summer fami

gas, unlike oil, doesn't have opec there driving up the price. which is a major consumer of gas which china and india will be. and to your future, it's very good. >> at the world's biggest energy market, asia holds the eastern promise for energy producers worldwide. but analysts say its long-term future depends on their ability to produce. voe jegarajah, cnbc. >>> an executive working for fifa's hospitality provider has been arrested by brazilian police for allegedly helping scalpers illegally sell tickets. the governing body uses to sell packages for the game. he's accused of obtaining tickets mebts for teams and guests. >>> the game tonight between germany and brazilian isn't clear cut. he changed direction and gobbled up the brazilian sardine in just one gulp. what does that say about the game? overtime, penalties? who knows. brazil takes on germany at 22:00 cet. they will have to do without neymar who broke his collarbone in the last clash. >>> now, with casino revenue declining almost every month for the past eight years, is the game up for

alliance and bringing together mexico canada and united states and -- >> you want to say good-bye to opece taliban, and i believe that to be the case. change-up the game. you know you play the same game and play the same tactics every time -- >> you get the same results is what you are saying. >> you do. what happens, they know what you are going to do. if you are going to scream and shoot, you are saying we need to focus -- you lost the "t" -- >> i didn't lose it. >> we're just not saying it. >> "t" sands for thomas and i always liked that name. you are saying we need to focus on natural gas. >> you also have a great amount of oil in this country, and for instance, they have another 40 million to produce, and nobody -- i am a geologist and i am supposed to know those kinds of things, and we have some great technicians in this country. >> you point out part of the increase in the united states and it's because of natural gas, and you got into a little bit of hot water yourself when you said recently fracking quote, is not going to hurt anybody. but there are a lot of studies that suggest

opec aside, one of those things on the table for sanctions is whether russia might be moved from the althoughuggest that that is the kind of thing that market street as a symbolic from the point of view of russia as a sovereign, it would impose costs. >> do sanctions work? case has always been south africa and the anti-apartheid sanctions. >> they did work. >> that is an example of how things work. iswashington, the iran case an example of how smart sanctions work. what is different about russia, russia is a country that is most integrated into the global economy and financial systems of any country that has been sanctioned. cuba, libya, north korea, axis of evil countries, russia does not fit into that group and is a member of the un security council. it is something that really has never tried, hence the toing and froing we are seeing. >> investors are localized and risk. the low interest-rate environment allows them to do that. what happens when the federal reserve and bank of england starts normalizing interest rates and increase? >> it is a sign that it is the most important to

because he was right on tampleght but my thought process went back to the 1970's when in the 1970's opec and the arab oil barring basically held the united states of hostage. i remember waiting in line for an hour and a half to get $10 worth of gasoline because we had limited supply. now we sit here in a country some 40 years later that has unlimited resources available to us if we'll just take the political moves, the regulatory moves and the practical moves to exhibit our power and extract those resources. for example, the keystone pipeline that you talk about, not a single molecule of carbon will be generated by bringing that petroleum underground through a pipeline from canada to houston. and we'll refine it more soundly and more environmentally than the chinese would or anybody else would. then we'll have an almost infinite supply to take care of our own country internally and also use it as a part of our soft power around the world. the senator is absolutely correct about germany and about the ukraine and about russia. if we become their surrogate and we replace russia in terms of

second point is iran and saudi arabia have always been at odds in opec on price. the reason is iran has a finite supply of oil. it has by the way since the revolution grossly mismanaged its reservoirs, it's oil reservoirs, damaged them, it's potential to stimulate production is limited. saudi arabia has always wanted to strike a balance that is high enough to finances welfare system that it provides on one hand and not so high as to kill . mand for oil i'm optimistic it will continue. there is another country that is disturbing the global oil market and that is the united states to very used fracking good effect. i think that is probably a very limited phenomenon, maybe 10 to 15 years. but at the moment at least it's an important factor in the global oil market. saudi arabia has huge potential in these areas too. we're talking about a very different energy world looking down the road than the one we've been acustomed to. >> leaving this question of oil aside, the saudi arabians and their neighbors view iran's agenda in the region as anemkl to theirs and they've be

the second point is iran and saudi arabia have always been at odds in opec on price. the reason is iran has a finite supply of oil, it has, by the way, since the revolution grossly mismanaged its reservoirs, its oil reservoirs, damaged them. its potential to stimulate production is limited. saudi arabia has always wanted to strike a balance that's high enough for financial the state, and the well fair system it provides on the one hand. not so high as to kill a demand for oil. this contradiction will continue regardless, but i'm not optimistic that iran will add much to the global oil supply. it has, by the way, lost its exports due to the -- so it's really hurt. that is a factor to be brought in mind. there's another company that's disturbing the global oil market, and that's the united states, which has used fracking for tight oil and shale gas to very good effect. i they that is probably a very limited phenomenon, maybe 10 or 15 years, but at the moment at least, it's a very, very important factor in the global oil market. incidentally, saudi arabia has huge potent

shenk, we have a map of opec countries. how do these countries view our newfound status? guest: probably depends on the country. a country like saudi arabia probably doesn't want to see us go up them up, up, but they don't want to see oil prices rise at such a high level that they destroyed the global economy. so they can live with it. a country like venezuela or iran is probably not so happy about it, because first of all, they have limited supply, they want to have very high prices. so it really depends. y is: pennsylvania, and up next for mark shenk of bloomberg news. caller: hi, guys. so with our production is going down, a very shortsighted optimism, but if prices are not going out for us, i fail to see how this is getting us and he energy independence -- getting us any energy independence. can you respond to that? guest: well, we are importing a lot less, that is a fact. it has been great for the u.s. trade balance. on the east coast we probably but stateshe impact, like north dakota weren't really impacted at all by the recession. there is really this large part of

second point is iran and saudi arabia have always been at odds in opec on price. the reason is iran has a finite supply of oil. it has by the way since the revolution grossly mismanaged its reservoirs, it's oil reservoirs, damaged them, it's potential to stimulate production is limited. saudi arabia has always wanted to strike a balance that is high enough to finances welfare system that it provides on one hand and not so high as to kill . mand for oil i'm optimistic it will continue. there is another country that is disturbing the global oil market and that is the united states to very used fracking good effect. i think that is probably a very limited phenomenon, maybe 10 to 15 years. but at the moment at least it's an important factor in the global oil market. saudi arabia has huge potential in these areas too. we're talking about a very different energy world looking down the road than the one we've been acustomed to. >> leaving this question of oil aside, the saudi arabians and their neighbors view iran's agenda in the region as anemkl to theirs and they've be

i want to point out to this committee that xm bank has a little sister called opec. it is also a u.s.-sponsored export credit authority. it comes under the jurisdiction of the foreign affairs committee. we reauthorized them on the floor of the house of representatives under a bill written by my good friend chairman royce of the foreign affairs committee. yes. that good friend. 106 republicans voted for that bill. so if you are torn and you think the xm bank is good practicality but i got to preserve by ideological purity, if you are one of those 106 republicans who voted for the electrify africa act you already lost your ideological purity so come with us and be practical. as to ideological purity, as the gentleman from tennessee who just left pointed out, delta airlines has no ideological purity, nor do i expect them. they are impractical. they bought canadian aircraft and got financing from the canadian agency that is analagous to xm bank. you are scheduled to make 14 billion in the next ten years? >> that is the cbo estimate. >> you have a different estimate? >> i

that scarcity premium quickly and rightly gets priced in, 10% of opec, oil that couldn't be picked up. things are holding together right now, so i think the market's been sort of fair mediator in terms of what the probabilities are and what the value of a current barrel of oil is. >> okay, kent, what are your favorite plays in this market, if you could give us a couple of names and also do you think it's likely here that we'll go ahead and see some gas tax? >> i think the gas tax is figured in primarily because we have infrastructure that desperately needs to be prepared. we have a couple of cross-interests here. i also think the situation in iraq is about to deleverage and deleverage quickly. given what's occurred today and yesterday, we are looking at a virtual guarantee of the country splitting into three parts and there's very little that can be done about it. isis does not need to control oil fields. they need merely to par lies the central government. zwr we teased you had rather small companies you like, these will not be familiar names to most people and we showed the chart he

takes into account our defense, what we do in terms of who we buy from, don't complain about buying opec oil and what oh beck pec is going to turn ard export it. i think there's a strong argument to be made that if you look at energy the way the chinese and other nations look at it. >> and hold on to every last drop. >> it's something there's a limited supply of. hold on to it and make yourself energy independent. >> in a crisis, we can do that. >> i will say that my mind has been swayed at least by -- >> changing. >> well, what's happening in europe leads to all kinds of other security problems that we can't control. if you're looking at a broader security stance, we should be looking at exporting natural gas to europe so that they can wean themselves from russia. >> keep in mind, yes, i agree, but their wounds are so self-inflicted, right? germany has decide they're not going to use will power any more, right? >> similar to what happens in japan. they've started raising costs dramatically forestry groups. they're becoming less competitive on that front. then they've made the decision,

shenk, we have a map of opec countries. how do these countries view our newfound status? guest: probably depends on the country. a country like saudi arabia probably doesn't want to see us go up them up, up, but they don't want to see oil prices rise at such a high level that they destroyed the global economy. so they can live with it. a country like venezuela or iran is probably not so happy about it, because first of all, they have limited supply, they want to have very high prices. so it really depends. y is: pennsylvania, and up next for mark shenk of bloomberg news. caller: hi, guys. so with our production is going down, a very shortsighted optimism, but if prices are not going out for us, i fail to see how this is getting us and he energy independence -- getting us any energy independence. can you respond to that? guest: well, we are importing a lot less, that is a fact. it has been great for the u.s. trade balance. on the east coast we probably but stateshe impact, like north dakota weren't really impacted at all by the recession. there is really this large part of

it's a bottom-up thing really because we see the production is irv creasing in these non-opec countriestively well balanced. it's just crude prices are spiking on geopolitical tension. you know. if you take a look at the brent crude contract it's averaged sort of $110 for the last three years. the only time it's really kicked up is because of geopolitical tension there. >> okay. all right. thank you, matt. kathy. we appreciate it. and we're going to go to break. but i'm just going to tease something. when we do hasbro again, it's down $4. >> wow. >> but they're actually called grownies. men who like -- >> men who like little pony. >> they don't specifically like the little ponies. they like the tv series my little pony, because there was a documentary, bronys, the extremely unexpected adult fans of my little ponies. >> the story -- >> it was bros that like ponies. >> just so the viewer doesn't think we're crazy. there's a story that hasbro has teamed up with shapeway -- >> to sell my pretty pony. >> you with 3-d print my little pony now at home if you have -- >> which could be huge with