a loyal customer is saudi arabia, the largest producer in the world. 2008, lesley stahl went to meet one of the most powerful men in the world, ali al-naimi, the saudi oil minister and de facto head of o.p.e.c., the oil cartel. >> if most americans had an opportunity to sit down with the oil minister of saudi arabia, the thing they would like to know is where you think the price of oil's gonna be, say, in about six months. is it gonna be up or down? >> you want my classic answer? >> no, i want your honest-- >> okay. >> appraisal and judgment. >> my honest judgment is, if i were to know what the price of oil six months from now, i would be in las vegas, okay? >> [laughing] he may be smiling, but this is a man with serious heartburn and vertigo. in 2008, the price of oil had been soaring and sinking uncontrollably. why did the price, in your opinion, spike in july? why did it go way up to $147 a barrel? >> basically, there was a-- what's called a fear premium. >> and the fear was that saudi arabia itself had peaked out, that you'd reached your ceiling of

and most disappointing for him was what he saw in saudi arabia. he expected a beautiful place, you know, the best place on earth, and when he got there, it was just the opposite. as far as physical conditions, it might have been almost the worst place on earth, you know. and he came back and he stopped, he changed his emphasis from religion to business, in economics- that's how disappointed he was. and he told us that we can't look to go there; he said we have to find our life right here in america. he said that everything we need, we can have it right here in america. so he changed his direction for us, he changed his vision for the future. >> you know, i wanted to run this by you. i don't know if you had a chance- the way i've spoken about it, and we had some notes here, is when we speak about religion, we talk about two very fundamental things, and one is identity- you know, who you are- and one is your relationship with god or with other people. and to try to make sense of elijah muhammad's teaching of nation of islam, i've talked about it in

three regional powers, iran, iraq, and saudi arabia, and then the smaller emirates down to the south that are in and of themselves virtually defenseless in and of themselves. kuwait, bahrain, uae and ohman. those smaller, minor emirates, it's worth noting, emerged independent only due to a period of british hedgeomny where it was in the british interest to allow these states to emerge independent, separate from the other regional superpowers. if it weren't for the british presence in the 1900s, kuwait almost certainly would have been subsumed by iraq. bahrain, probably would have been gobbled up by the iranians. the uae probably would have accrued to or been swept over with the saudis. so, there is inherit tension, and that's in addition to, of course, the great tension between the arabs on the southern side of the gulf, and the persians or the iranians to the north. so, since the 1800s, it was that presence of an independent agent, the brits, who were able to keep many of these tensions under control. now, to be sure, many of the local actors didn't particularly welcome the british

, especially saudi arabia.r example send johnny really try to raise tensions between iran and saudi arabia appeared followed by much more conciliatory policy toward saudi arabia and gcc states. of course the historic ideological attention with everyone away. ahmadinejad has been able to really exacerbate tensions with the gcc today. through his rhetoric, the really terrorist actions as well. so when you look at iranian policy in the last several years, especially 2005, it has had a lot of failures. iran finds itself in the situation it is then because it has managed to drive the gcc states into u.s. arms. >> can you hear me? now, yes? the microphone is on. i think the critical issue, there's a tendency to put a lot of blame and importance on iran's president, ahmadinejad. but the critical strategic and change that happened in the past 10 years that sent shockwaves to the gcc has really changed geopolitics and geo-economics was the u.s. invasion of iraq and essentially the complete overhaul of the political orde

regarding saudi arabia, since the beginning of syrian issue, saudi arabia did their best with basharsad, and you know we had a great and historical relationship with assad and his family and even some relations so saudi arabia tried their best with what they called unannounced diplomatic force that sabia usually prefers to do with some countries. but unfortunately, many times king abdullah and his sons, many times bashar al assad, but we didn't hear any reaction or get good response from bashar al assad, so that continues to august when saudi arabia announced through king abdullah that enough is enough, and this bloodshed must be stopped by bashar al assad. but i might surprise you that even after 7th of august, 2011, saudi arabia, they didn't top their dip plomatic -- [inaudible] so we continue to see some officials after 7th of august in riyadh, and we tried to talk with them, but also the result was negative with syria. so this is why we maybe also are more disappointed from american policy because i am, i am sure americans, they know about all this diplomatic effort because we ar

is also for a long time now supported saudi arabia saudi arabia of course is you know their support of the military and it's a fundamentalist a hobby government that allows. doesn't allow women to vote so could this shift the posturing when it comes to regimes like this like what we saw in egypt before before we saw that revolution happen will that shift the way the u.s. treats regimes in the middle east well i would tell you that a lot of people think one thing in the middle east when it comes to this the u.s. does not have permanent allies and they just have too many examples do to tell you we don't know if this is going to be the case in saudi arabia that really depends on how the u.s. is going to maybe shift its policies toward the middle east are not we don't know if they're going to do so because of israel because of other interests and because of maybe the trade pathways in the middle east it's i would say it's more on the part of the saudi arabia and other countries in the gulf to think their own interests right now and to think what should they do if they become if the u.s. be

will serve up more oil than saudi arabia in the year 2020. that according to a new report by people who actually do know the oil business very well. >>> and sex and the ceo. and the collateral damage. how widespread is sex at work? we really want the answer to that question? >>> what should the consequences be. >>> and no hockey. forget about that. no problem. look what the world of auto racing brought us over the weekend. a brawl! another black eye for a sport that corporate america was counting on? no fighting here at cnbc. sue's with me here again. nice to have you here, sue. >> it is great to be here, ty. those "fast money" guys got me all riled up over there. they're having a good time. >>> we're going to take a look at the markets right now. dow jones industrial average has turned into positive territory, not by too much, but hey if you're a bull, we'll take it. the s&p is up two. the nasdaq up almost eight on the trading session. >>> we here at cnbc, as you do, follow the energy sector very closely on "power lunch" but you don't have t

is set to surpass saudi arabia in oil output by 2020. but is that really going to help bring prices down here at home? talk about that coming up. the answer may surprise you. >>> also ahead, lockheed martins incoming ceo, just the latest corporate leader ousted because of a sex scandal on the same day the cia chief goes down for the same reason. should both men have kept their jobs, though? we have a debate on that coming up. stay tuned. tdd#: 1-800-345-2550 this morning, i'm going to trade in hong kong. tdd#: 1-800-345-2550 after that, it's on to germany. tdd#: 1-800-345-2550 then tonight, i'm trading 9500 miles away in japan. tdd#: 1-800-345-2550 with the new global account from schwab, tdd#: 1-800-345-2550 i hunt down opportunities around the world tdd#: 1-800-345-2550 as if i'm right there. tdd#: 1-800-345-2550 and i'm in total control because i can trade tdd#: 1-800-345-2550 directly online in 12 markets in their local currencies. tdd#: 1-800-345-2550 i use their global research to get an edge. tdd#: 1-800-345-2550 their equity rati

they are loyal to saudi arabia. so the issue is not only limited or contained within yemen, but also extends beyond that. the tribes are a big order. now whether you can build an alliance with the tribe come and that's a big question and for that i want to make sure an example of the most recent experiences with the new government -- [inaudible] and al qaeda -- [inaudible] there was the alliance and the yemeni have their own tribes. so by catherine it's again the drawings and the alliance with the yemeni army after al qaeda was pulled out, what happened is the yemeni army withdrew from them in the local tribe is to deal with the retaliation of al qaeda. so what happened a few weeks later, a suicide bomb or had a funeral that ended up killing 46 people. so this has been a huge obstacle for alliances to build with the yemeni army. so we have not only not killing with the issue of outsourcing security, but rather issues of trust. to what extent the tribe can trust the new government or contrast the u.s. government. i'm

>> saudi arabia, we still increase production.di arabia we still remain the largest oil exporter of the world. u.s. will be the top producer, but u.s. will use a lot of oil at home and saudi arabia will produce less than united states but we will be the largest exporter. in terms of russia, the shale production increases in terms of natural gas but u.s. increase is much more than russia. so when we look at the global picture we see u.s. will be number one, followed by russia and saudi arabia. >> all right. well there you have it, bold forecast and rationale behind it. back to you. >> thank you for that, sharon epperson. >>> coming up next, it must be opposite day because there is actually some good news for rim. >>> later on the short list to buy hostess. the story like the twinkie -- hard to kill. back with it after the break. ♪ ♪ ♪ [ male announcer ] 'tis the season to discover the kid in all of us. the memories that last, start with the gifts that last. ♪ enjoy free shipping and great values on your holiday shopping from l.l.be

saudi arabia operates in so-called stability which unfortunately for the people of saudi arabia means a lot of freedom and it's all toxic so you don't think carol we're taking a tough position at all and being quite harsh about the humans rights issue when he gets there mentions these issues along with the trade deals. but i would i would be very surprised if. any tough words exchanged he may he may make god token reference to it but i think the prior is here is really strong business and. the downing street actually has made no secret of. canada's claims there are no no go areas on human rights but i think anything you just say will be very tepid george thank you for your thoughts george eaton editor of the studies blog at the new statesman joining me live there not. at least fifty syrian soldiers are reportedly being killed in a suicide bombing in the flashpoint from a province while civilians including children reported dead after a new terrible austin the capital damascus middle east correspondent has more details. three major attacks have taken place across syria on monday in the

that's right the people in bahrain are denied several democratic rights and the people in saudi arabia of course that's one of the most horrible autocratic regimes in the world and it's also one of our closest allies and that actually happens that's you that's you can see that right through what charles said you know it's true that it's democracy promotion has been a creed of an american creed for a long time but all that really means is that it's been in bedded in the rhetoric of our political leaders where it hasn't shown up as an actual policy the middle east is a fine example as i said of supporting a range of autocratic dictators and not just supporting dictatorship but actively suppressing democracy you can see the same thing in in central america and in fact the work of mr caruthers actually speaks to this. where the u.s. was most involved in various countries in central america what you actually saw was a decline in democracy in a continuing support of autocratic regimes and we can see that straight through it's also i think the case in again oh yeah and. that's fine tom go ahe

when oil you know was sort of discovered and the fact is that you know saudi arabia was a very you know it was a tribal society without strong kind of centralized stable followed see you know if you go back to nine hundred twenty one nine hundred first season i was in abu dhabi giving some lectures in naples you know the shaikh of abu dhabi you know in the one thousand sixty's and have electricity in its power you know i mean these were very poor kind of underdeveloped countries with very traditional political and social structures and then they just discovered this in the. most part in the well so you could look at saudi arabia you could say well you know that this is an absolute this morning key and things like that well you know but it was not a salute to small to be without oil in one hundred twenty and now it's not salutes it's monkey with a little and much nicer roads and things like that so you know i don't think oil because of oil hasn't helped the most annoying change the society you know you could say it kind of truck the society in some kind of suspended animation but i don't

we all know the role that it played in both wars against iraq kuwait is very much dependent on saudi arabia and the united states and so all of this is part of a geo political calculus of the us hegemony us does not want to see its control over the region slip away by something as piddling as the democratic aspirations of the people that look the region so with that western support there's no way we will see any change in the people really want and those countries. the only way that you'll see it is by. mass movements that develop in the streets they can actually bring down these governments the marquis's they control saudi arabia and some but the other gulf kingdoms these are very tenuous their control their hold on power rather is very tenuous they do not enjoy support of the vast majority of the people but rather they enjoy the support of those groups within those countries that benefit from that however the sheep in a minority in the provinces of saudi arabia who are the minority really all throughout the country in bahrain and in kuwait these groups are now getting bigger voice and wha

most part in the well so you could say you find look at saudi arabia you could say well you know that this is an absolute this moment key and things like that well you know but it was not salute smartly without oil in one hundred twenty and now it's not salute the with the will and much most roads and things like that so you know i don't think oil because it will hasn't helped the most annoying is will change the society you know you could say it kind of truck the society in some kind of suspended animation but i don't think the society was not created boy. if you want me interesting yeah it's interesting to talk i really appreciate you being here today we're going to leave it there that's all we have time for but that was james robinson is researcher of comparative economic and political development harvard professor author of why nations fail thank you very much. all right it's time now for word of the day where we break in a financial term or concept for our smart viewer but just not the expert and today it is based book given the federal reserve released it now it sounds like a bi

saudi arabia the oil is sort of sitting right on top of the sand.e're talking about oil in the u.s. that is more expensive to get to. but at the same time we don't have to transport it because it is right here. it is all about the equation on both sides. what price do you think oil has to be for this to make sense? >> at these prices right now we're looking nominal prices, right now, for brent, we'll use that as the world proxy, 105 to $115 a barrel does seem to work at these levels to this point. so, we're there, we're there at this juncture. melissa: couldn't saudi arabia though just really open up the tap and flood us out of the market? they kind of, they produce what there is demand for but that doesn't mean they can't open up the tap and drive the price lower in order to sort of drive their fracking out of business? >> well, there is indeed a concern with that but keep in mind high prices are not in opec's or saudi arabia's best interests. high prices being, prices that the market simply can not afford. prices for instance we saw at the beginni

saudi arabia sent two female athletes to the summer olympics in london for the first time this year. historic move that came with many strings attached. but nevertheless an important signal to all those saudi girls with a passion for sport. >> i like sports in general. football is my passion! it's a very beautiful feeling. that's why i am very passionate about it and i like to play and also all of the girls in my team, they feel the same. for now we are 30 members. attahadi, challenge. we named our team like that because of the challenges we are facing. it's not easy for us as women to play football in saudi. we can't say that is illegal, and we can't say that it is legal. nothing is really clear. our society is a little -- it's a conservative society. so we can't go anywhere and play football at any pitch in the street. we are training now at the backyard of one of our team members. we started the team because we wanted saudi women to start playing sports, not just to get thin or to go to the gym to fit your body and that's all. no, you can play more, you can be a professional athle

that's eight times the amount of reserves in saudi arabia.il sands are buried under forests in alberta the size of florida. the oil here doesn't come gushing out of the sand the way it does in the middle east. 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

by the iaea, we overtake saudi arabia for about five years and then fall back again, were saudi arabia keeps on going. i think will be a fact of life in the oil market for as long as you can see. host: another comment on twitter. could america be energy independent by simply not exporting? guest: we are not in that exporter of a building. we currently import night when 5 million barrels a day. in the iaea report, by 2035, we will still be in pointing -- importing 3 million barrels a day. our refineries produce more diesel than we need here in the united states and import gasoline because some of the refineries in europe are producing more gasoline than they used in europe. there is a trade in oil product. unbalanced, where huge importers of oil and oil-refined products. host: fred is an independent from wisconsin. caller: i think we can agree there's a finite amount of economically recoverable oil than in the united states. if we double production, are we going to use that up twice as fast? shouldn't we be doubling our efforts to replace that with an alternative source? i don't see any

that leaves the gulf cooperation led by saudi arabia. what we have now is really an interesting political dominance in the arab world. this is around saudi arabia, that invited two other states into the oil club in exchange for economic and other cooperation. that is the coalition right now that is the powerful coalition in the arab world, and the states that are going through change are somewhat marginalized, so go ahead. >> egypt will come back. >> and in terms of identity politics, you get to a country like libya. yemen. >> exactly, and there are two things going on, paradoxically. there is also within the country divisions that are continuing. i was in egypt last august during ramadan with my family, and it was almost like a soap opera. there was a fever. people could almost not wait. i think you have got those going on at the same time. this has overgeneralized the pan-arab identity, as marc mentioned. >> 201 and 301. thank you very much. [captioning performed by national captioning institute] [captions copyright national cable sate

and a much smaller percentage were involved with trading missions with there and and saudi arabia. but our 60,000 uniformed troops left the supply delivery business to rush up. those small numbers of the advisers stuck around for decades and that is what represented america pez influence as a prolonged role in the gulf. >>host: i always think of the british of involvement in the middle east. how did they step back? >>guest: with regard to the gulf of brits arrived in the 1800 representing their quest to provide order on the flanks to the imperial interest of india. the southern coast of the gulf was called the piru coast. constantly feuding tribes would feud with one another spilling out of the seaboard approach to in the and resulted in the tax on india. so the british found themselves pooled into the gulf during the 1800's. not to colonize it to maintain order. they did with the relatively small amount of military force. but you are right. up through the early 1870's was one of british hegemonic control over the persian golf. the aftermath of rope or two with the independence of

well if you have the frog to replace one well in saudi arabia wow so it's a long way to go and we're talking about natural gas and oil and they're often want to get there because they're both hydro carbons people use them in the same sentence but these are very different commodities how did the market mechanics deafer from one to the other but definitely i'm going to move the area so if you look at the pad district of america does this refining complex first of all america's got the best refining complex in the world it can refine just under eighteen million barrels of oil a day a lot of this oil is not in the areas where you need to refine it so they've got to build the pipeline so you know with obama coming in and he wants to take care of both the left in the right people and the promise everything to everybody the reality is there's only so much oil you can ship on the on the rail we need to invest in new pipelines going to the new areas and what is ironic that the keystone x.l. being delayed america today imports more venezuelan oil than it's producing in bach and even with the s

the government scarified look at protest movement developing in saudi arabia one that's continued to go or bought rain we see the same around the arab world more generally and kuwait looks at. so far rather the government does and they see that they really stand no chance at maintaining our maintaining control of that country unless they are able to successfully suppress the end repress the opposition these are client states of the united states bahrain as is the u.s. fifth fleet the navy kuwait as we all know the role that it played in both wars against iraq kuwait is very much dependent on saudi arabia and the united states and so all of this is part of the geo political calculus of u.s. germany u.s. does not want to see its control over the region slip away by something as piddling as the democratic aspirations of the people of the region. in the middle civil war across the border sends aftershock sent to israel later this hour r.t. talks to israelis who fear there'll be no easy living next door to the reshaped syrian state. and hundreds gathered to demand a recount after the parl

they call the big elephant oil deposits you look what's going on saudi arabia and go back to spindle talk to originally in america you're looking at fifty one hundred thousand barrels a day production those are world class deposits today few get ten thousand barrels a day that's known in the top five percent of all of the wells globally what we're talking about today with those unconventional out of those two three hundred barrels a day from each one of these wells so even four or five years ago when they would do four to a practice per well now they're getting up to sixty four fracs per well so yes the you can produce a lot but you need to drill a lot and that's high cost of oil ok and also i know that water is required when it comes to hydraulic fracturing and getting natural gas so what does this do to water politics water is a touchy thing is this something that will come more into play i think so but there's the education there's the science behind the reality is the shale frac or the rock through it's use is so much deeper than the water reservoirs and with the new technologies

>> does friction not exist in saudi arabia? >> you have a real smooth torso afterwards. >> but you'd have to, like, do the front and the back, right? get the full feel of the whole thing. >> bhab thmaybe they have reall sand? >> they say the sand may be really fine. and that's what's allowing them to shoot down the hill. >> magic tour tricks. >> this man was in thailand and playing piano for a 5-year-old elephant when he felt this sudden sucking on the back of his head. what was it? >> peter, another older, bigger elephant. >> he didn't just stop with the sucking of the head. he also wanted to play the piano, too. ♪ >> apparently he r l make believe by joplin. >> i think peter does add a dramatic tone to this song. >> i think this may be peter's first lesson though. i don't think he quite has the song down just yet. >> i think what is so funny, he can't decide what he's going to do. i'm going to suck his head and now i'm going to play piano. now i'm going to suck his head and i'm going to bang the keys out. >> the elephant was

saudi arabia, and that image not sitting well with a lot of of people.slim city and the woman best known for having a sex tape kind after juxtaposition, isn't it? and joining us now is kelly jane torrence of the weekly standard. kelly jane, i was shocked when i saw this and surprised and then i got to thinking, should paris hilton just go for the money, pure capitalism. open your store in mecca if that's what you want to do. or should she think about women's rights in the place where she's selling handbags? what do you think. >> i think both. talking about capitalism people are saying they're outraged about this, but obviously there's a market for people buying these handbags, otherwise the mall wouldn't open the store and this is not her first store in saudi arabia. she's got four in the country, but the first in mecca, true. and non-muslims are not alloweda. the people who are buying these are muslims, people who say they're outraged. >> people cannot drive a car, cannot go alone and have to have a husband or a blood relative with them. a male. and i w

not rule out saudi arabia. after the events of 2011, who can say with 100% certainty that the recent signs of some on rest, of some rioting, of some protests, may not catch fire even in saudi arabia. second, terrorism. this happened to president bush from on sort -- and unforeseen away - way and with president obama with the attacks in benghazi. we should not rule out the range of terrorist attacks and what that would do to america's relations and to america's set of priorities in the middle east -- taking down an airplane, blowing up embassies, attacking civilians, foreign governments with the attack on the saudi ambassador, foreign governments using terrorism even on our soil -- there is a whole range of possibilities here. let's not foreclose dealing with them. third, a sinai clash on steroids -- we saw in august, 2011 how the attempt by terrorists to kill israelis triggered an israeli reaction that ended up with the egypt-israel peace treaty being this far away from total collapse. i measure this as being t

citizens get visas into saudi arabia. it's worked very well. i think the fact that the king ab dull la provided scholarships for the 60,000 college students is an example of where he wants to bring the country. he wants 60 # ,000 to come back with a good view of american values. i would point out paraphernalia -- parenthetically there's a disportioned representation of s audi shia, but as people try to look and figure who is who, yeah, it's considerably, perhaps double the percentage of shia in saudi arabia are getting scholarships here. i think that's good. in 2005, the question was oil prices and what the saudis plans for expansion were. basically, they described this program that they were then launching to expand production capacity by 2.5 million barrels day, and that's done. we still have considerably higher oil prices now than we did in 2005. they've been accelerating, but that's largely the result of growing world demand outside of the oecd, and unless there's some change in that, we're going to have continued, fairly robust pricing. th

temporarily surpassing saudi arabia. the same report projects the u.s. will be nearly energy sufficient by 2030. these are loaded terms. you heard in the campaign talking about north american energy independence that, includes canada and mexico. but all of this business was something that was unthinkable not too long ago. there is an oil shale boom in the united states, new drilling methods are driving the growth and creating jobs. 1.7 million jobs have been created. that number is expected to grow to 2.5 million jobs over the next three years. could reach 3.5 million jobs by 2035. it's unconventional oil and natural fwas production through a process called fracking. hydraulic fracturing is the full name. it vofsz pumping water, sand, and chemicals into the ground at high pressure to crack rocks open. there is gas in them rocks. it's a costly process. there are environmental concerns. some people even say they cause earthquakes. the chairman and chief investment of leeb capital management joins us. he is author of "the oil factor." let's get to the -- i

six member nations of the council including qatar and saudi arabia already backed the group. the fighting in syria is forcing more and more people to flee. the united nations high commissioner for refugees says more than 400,000 have crossed borders since the uprising began last year. unhcr staff say people are pouring into turkey, lebanon, and other neighboring countries. they say 2.5 million displaced citizens need humanitarian aid, based on information from the syrian arab red crescent. an tifist says they're having difficulty getting access to food, water, and other necessities. they say the fighting is prevent aid worker from reaching the needy. government and opposition forces have shown little sign of letting up. planes pounded ras al-ain in the northeast on tuesday pushing many toward the turkish border. >>> eurozone officials are taking a small step towards unifying their banking system. yuko joins us now. what will happen if necessity suck side? >> officials will be able to help directly troubled banks and not go through their government. they were just at a startin

. >>> next on "money", move over saudi arabia. a new report says the u.s. will be the world's number one oil producer in just five years. but is it t good to be true? stephen schork of the schork report is here to break it all down. >>> us the northeast gas crisis has wreaked havoc for millions of people but one economist says price gouging actually could have prevented it. he is here to explain. more "money" coming up. ♪ . melissa: so time to gush about oil right here in the usa. that'sight, believe ii or not the international energy agency says the u.s. will become the world's top oil produc in five years. that would be amazing if it's true. what will it take to get there? i don't know. let's turn to oil guru stephen schork, founder and editor of the schork report. stephen, as always, welcome back to the show. >> great to be here, thank you. melissa: all this is predicated on tracking and shale. first of all do you think it is realistic? that is pretty quick time horizon? >> absolutely, melissa, and it is amazing when you make prices go high enough how mu

should be involved in their collective security it if it is to be but saudi arabia has always been a close ally of the united states so isn't it a contradiction i mean they are a show it may take part in this in this treaty if it's seven negotiated well as i said we believe that security of the region. belongs to all countries of this important region and we we need the best option is a collective security arrangements in which so the i would be assured. of course of course. is in the region of the any talks i'm sorry are there any talks already are there any document or is a just good intention i mean this collective security well there has been some consultations in the past and we continue to talk about this idea with our. neighbors in the southern part of persian gulf but of course it's a very complicated situation there are foreign forces in the region there are foreign intervention by americans and by some others so it is still is still we need to talk more about but what we are seeing says we see some meat on the bones already yes. ok well let's talk about again a stand agains

and saudi arabia since fdr first met in 1945. the u.s. didn't import any at the time, but for fdr and the 12 presidents that followed in a very simple formulation if you understand the size and the importance of the reserves, whether the u.s. needs to import or not, we don't want those reserves to fall into the hands or into the direct control of hostile elements whether it is the soviet union, saddam hussein or currently the ayatollah. the world would be very different if they held the oil resources in the gulf they would be able to control the world economy and that is something that again the past 13 presidents haven't wanted to contemplate so that would be the perennial issue on the table and it tends to buy the rest of the relationship. thank you. [applause] >> good morning. as the clean-up here we've been asked to address iran and syria which i will do not order which most of the attention diverted to the first of the topics and i would say on both of them there will be as we head into the new administration next year pressure on th

is likely to surpass saudi arabia as the world's largest oil producer as early as 20/20 and predictsthe u.s. will increase production to 11.1 million barrels a day by 2020, up to about 6.9 million barrels in 2008. that is if the obama administration allows it. so, steve, you've been out to the shale in north dakota where it's coming from, and fracking so-called, and drilling and private risk taking. what does it mean for the u.s. energy markets? >> well, this is such a great, great pro american stir and by the way, paul, it's not just oil, it's also natural gas. >> paul: right, sure. >> my goodness we have more natural gas than the rest of the world combined and it's driven by the technological improvements and a five or ten year technological lead than the countries we're competing with. it's interesting, paul, if you look the at the last three or four years, now what industry has created more than any other industry in the united states. >> paul: the electric car industry, steve? (laughter) >> no, not that one. oil and gas and the thing that's so amazing, the president is doing alm