gas and shale gas is much cheaper n a btu basis. so one of the reasons there has not been a shock in electric buys and o bills and one of the reasons of the 1% holding increase that went in, in january, hasn't destroyed consumers is because the shale gas has been bringing down the electric bill. >> lou: we are starting to see a trade-off and gasoline is off -- down, i should say, 11 cents a gallon in the last month alone and it will start to have, if it continues in that direction, real impact. give us your judgment. i said at the outset of the broadcast, cyprus was irrelevant. and, that the -- those paying attention to it with such, you know, such perfect pitch as they scream, are the shorts and the bears out there. looking for a little support. >> well, i think a lot of people got short and haven't yet covered and they are the ones who are wanting a big decline in stocks, but cyprus is 2/10 of 1% of the european country, at best a rounding error and even if it goes down, it will not go to zero. so, maybe it goes to 1.8 -- 18/100 o

shale gas is much cheaper.he reasons that there has not been a shock and one of the reasons why the 1% withholding increase has not destroyed consumers is that the shale gas that has been bringing down electric. it. lou: is starting to see some trade-off. gasoline is down $0.11 per gallon of the last month alone which will start to have, if it continues, real impact. give us your judgment. paying attention with such perfect pitch. >> a lot of people got short. have not yet covered. with cypress is two tenths of 1% even if it goes down it will go zero. 1807%. it doesn't mean anything. the symbolism is what could have been important. so i'm glad they didn't. lou: they thought about it. they tried to do it. this existed one thing right. that is to reject the you imf and central bank demand on that first run. 6 percent from the little guy and 10%. >> at terrible -- the first one in history where the government has reneged. i'm not so sure that it was not a plot to have it end up where it did. but the burden for tha

shale gas bonanza. the new source of energy is creating business opportunities and gas producers are not the only ones that are making money from this. the company plans to fish for profits downstream with petrochemical production. it's building a new storage site in houston, texas. it will use shale gas to make ethylene and methanol. the company plans to complete the facility in just about two years. the output will be supplied to local plastics makers. meanwhile, shojit has invested in a mine. demand for the mineral is rising sharply. barite is used to extract shale from underground formation. other companies are buying ships, eyeing opportunities in energy transport. they're anticipating a rise in shipments of liquefied shale gas to japan. >>> northeastern japan has long been a popular destination for hong kong tourists. they come for the natural beauty and local hospitality. but the disaster two years ago scared off many visitors. and now a hong kong travel agency is hoping to change that. a group o

to the next story the world is on the verge of an energy market revolution its magnitude will make shale gas pale in comparison japan has become the first country to produce gas from methane hydrate in the frozen layers of the ocean unlike shale gas methane hydrate is everywhere in the ocean and as deposits will allow the world to have twice as much energy as we've had with oil gas and cool put together here's how the world energy council's chris the fray describes the impact of this discovery on the global energy markets . it's massive the mast if innovation picks up in the same very similar very. good deeds in the shade it could be the next game changer potential of. methane hydrates massive again this would really expand the resource space inspired by another order of magnitude russia plans to spend billions of dollars on the arctic self development although some apps for it say that it's not really necessary at the moment to explore such expensive deposits in extremely difficult places what's your take on that conventional reserves are about one point three trillion but what came on

in addition, these are sandstone and shale. they have been uplifted and faulted and put into the position they are in today. on the cliff face, you can see the bedding of the shale. there are vertical cracks that filled the water and plans is growing. -- and plants are growing. the cumulative effect of the fresh cut with the debris sitting on the ledge, luckily we have a chance there to protect us from rocks going on the street. >> this is one type of rock salt and we will look at a few others. what will we see? >> i think it would be appropriate. we have been talking about rock salt. there is instability that occurs at telegraph hill. this was more in the earth flow and debris flow kind of movement. this moves downhill as a result of the rations from the earthquake. that is where we are headed next. >> here we are on the next stop of our landslide for parent though this is the lagoon ouna a area. this is different from where we all were just add on telegraph hill. this is a whole different concept. tell us what we have to. we

including the big oil rich shales we talk about all the time.us, the utica and the perm yum. last year we had a slow down in drilling costs by the glut of natural gas and heckman got hit hard, many of you felt it. 2013 starting off real good. heckman is taking control of its own destiny. made two major acquisitions, buying thermal fluid and power fuels which open up a whole new business, environmental solutions where they collect used motor oil and spent an try freeze and recycle it. so how is the new heckman doing? company just reported last night, it's pretty clear heckman got its groove back. they earned 3 cents a share, much better than expected revenues, 113% increase. more important, managers have very positive commentary. and the recent acquisitions have changed heckman so much, that the company is now changing its name too! to new vera environmental solutions. break that down. in it response to this terrific quarter, 11.3%, biggest stock i saw on every exchange. let's check in with dave heckman, executive chair of the corporation and fin

shale oil reserve right there.3 million jobs at least, much needed tax dollars, and a jolt to the state's economy, but will california get on board or just stand in the way? with me now from one of the groups behind the study is kevin hawkins, welcome to the show. tell me what the report found? i mean how much possibility is there? seems enormous. >> hi, melissa, thank you, and thank you for having me op here, appreciate it. the study was conducted by the communications institute in conjunction with senior economists and engineers from the university of southern california. we started this study with a simple premise. as you mentioned, california sits on the oil reserve, one of the largest in the world. the monteray shale formation throughout central california contained 15.4 billion barrels of oil, and the study asked the question what would happen to california's economy if that oil were prudently and carefully developed? well, the results were astounding. the results showed that within the next 15-20 years, cali

conoco splitting off the refining and marketing arms, buying back stock and going all n the bakken shale. we know the bakken, we visited there. remember, the predecessor hess itself discovered the bakken and has some of the best assets in the light crude heaven. looks like they want the whole company put up for sale. as i mentioned, i think there's a lot of people swirling around it. i would advise staying in hess because i think there are outfits that would pay $100 a share for this fabulous company with underexploited assets, and yes, management that hasn't been aggressive enough. how about the pressure carl icahn is putting on transocean. today transocean announced a $2.24 dividend giving a 4.3% yield. i like that, but well below the $4 dividend icahn wants. we're not done with that.

to fully exploit the monterey shale you have to frack.ulations on tracking it will not allow you to produce what you can. melissa: why doesn't he talk about what is going on in north dakota? the unemployment rate, 3.3% of the, the lowest in the u.s. because of that fracking boom. california, 9.8, tied with road island for the highest in the u.s. median household income in north dakota up 10%. in california it is down almost 2%. the states are right there. >> they are right there but the cultures are so different. i've been in north dakota. i've been to california and, yes, they're both states of the united states of america but beyond that --. melissa: in north dakota do they like money and like working? is that what it is? >> people said that the u.s. doesn't have an energy policy. somebody said recently the u.s. always had a energy policy and they didn't realize it. that policy you get private right for development of minerals under your land. that has always been the case up there. melissa: what does that mean? >> in fact it used to be

>> well, it will happen because of the massive unlocking of natural gas from shale which has occurred. five years ago, even two years ago, people were wondering if this is real. it is real, and that's been a great boost for the u.s. economy, and then this new shale oil such as what's happening in the state of north dakota which now produces more oil than ecuador which is an opec nation and the renaissance of what's happening in northeast ohio, for example, and in texas, so oil and gas from new sources definitely happening, as well as the deep waters of the gulf of mexico. >> i think a lot of people might be concerned that the unlocking of those assets in natural gas and oil shale will pose very serious environmental threats. what do you have to say about that? >> well, i think it has to be done this year talking about hydraulic fracturing, nickname of fracing, but it's a technique that actually has been around and used since the 1940s so it's not something new. it's just how it's being used today, and i think, you know, something unknown that's happening way under the ground, so it's

gas is called. >> because america is rich in shale, right?it certainly is. when you think about all the different opportunities in ohio and pennsylvania and what we're doing in colorado, so it is changing the landscape around where these opportunities reside. it's economic development for the states, for the local communities. it's driving tremendous changes. go to north dakota and see what's happening up there in this state. what we're doeg doing here in texas and what's happening in colorado and in colorado. it is changing the landscape and changing it for the better helping the economy goes. these are great jobs with good benefits in this industry. >> finally, sir, when would be a reasonable time frame to expect margin expansion? >> well, we'll start seeing that. we'll start seeing that this year as new projects come online. we've got startups coming in malaysia and europe and continued rampup of our unconventional positions, the eagleford and the permian base and the bakken and we'll see those margins continue as we expand that growth. it

liz: it is not expensive. >> we think that stock has further upside given the shale gas and shale oil the united states. liz: here's one, colgate-palmolive, up 21% year over year. you believe there's more upside, even as we have a situation where the payroll tax cut has now been expired? >> well, we like that stock because it's a global gorilla, liz. it is one of these companies that sells cheaply in the u.s. market in terms of valuation, yet it has exposure. 50% of their sales are already in the emerging markets and we think that too can expand. it's a global brand. it's a global -- look, warren buffett just bought into a big global brand. this is that kind of a company. it's a very, very good yielding stock. and yield grows there on the -- and we like the management of colgate-palmolive. liz: pfizer is the next pick of yours. the dividend is 3.4%. up 28% year over year. do you have any issues with the pipeline here? >> no, we think pfizer is still cheap at this level and pfizer is another one of these global gorillas, management internationally minded, dividends raising, great retur

demand for oil is going down as america's production of shale oil keeps going up. connection? >> it has yoko saying oh, no and daryl hannah, we are not going to provide an example of yoko's singing. we have dagen here we must can doing something right? >> absolutely. when you have opec mad at you because you are not using enough oil and hollywood mad at you because you are oil, period and producing it it's a perfect world. >> neil: very well put. >> you know what, you only need to talk to the people of north dakota. lowest unemployment rate in the entire country, 3.2%. that is one of the biggest destinations for americans as they are moving around the country. it's because of the shale oil. we end up -- you know what. >> you know what the pizza tastes like? >> in north dakota? >> i love north dakota. >> neil says its beautiful state. >> i lived there for a year and a half. >> you are urban. >> it's wonderful. >> listen, this whole thing, these people are nuts. >> neil: who is nuts? >> opec. >> neil: daryl hannah is. no one has looked at splash, hello. >> we saw it this week, i

and especially kansas city southern for shale and autos up from mexico. and one more sector to put on the oligopoly board and that's the refiners. this may seem like an industry with too many players to be an oligopoly, cvr, then you have the big integrated oils with the internal refineries, exxon mobil, chevron, for the moment, hess. however, the nature of the refining business is such that it is almost impossible for the new competitor to break into the industry. you have existing refineries and that's it. if you happen to be an incumbent refinery, you'll do very well. why is this industry so protected from competition? for starters, the united states is an expired industry. from the environmental perspective, it is hard to construct a new refinery. just getting a permit from the government can take many years, especially since nobody wants a refinery in their backyard. it can take two to three years when already cited or the time frame to do the build-out. that's why a refinery has not been built in the united states since 1976 and why you rarely see a

you're referring specifically to shale and shale oil. >> and shale oil.hlumberger, you want to own halliburton, you want to own baker. you cannot get to the oil or the gas without these three. what you want to see is, united states has under six states 3.5 trillion barrels of oil shale. the total in the world is 1.7 trillion, all countries. we have two times what the world has. it's expensive to get to. but this innovative united states is making it happen. >> all right. david darst, always -- i want that tie. that is a gorgeous tie. >> it is a very nice tie. >> you're going to get this tie. >> i didn't say for that reason. but anyway. >> happy holidays to you and your beautiful family. >> thank you, guys. >> david darst of morgan stanley wealth management. as we stand here, the dow is moving into territory. if it's up about 55 points today, it will be the best first quarter we've seen for the dow since 1987. going back 26 years. >> all right. we're watching thoegz markets. we're coming right back with the closing countdown. right now the s&p is still in

natural gas that comes from shale, that's derived from hydraulic fracturing makes up to 30% of our natural gas. it isn't an issue. there are environmental practices that need to it be followed. whether it's the casing designs put in place. making sure we minimize the footprint around some of our facilities, and the industry is taking actions to address those concerns. but fundamentally, it's safe, it's been in use for a long time and it's a windfall for this country. >> i guess the white house recently came out with an environmental report as it relates to the keystone pipeline. they said in fact, it is not going to impact the environment negatively. what was your thought about that report? >> no surprise. we have 2.5 million miles of pipelines in this country. we know that moving oil and gas by pipeline is safe. again, we have to have the right safeguards in place, but the industry has only improved its standards over time, and has performed better and better. >> this is an opportunity to create millions of jobs. isn't that right? >> well, it is. in fact, some estimates would say there's

it will also be fit to store shale gas. >>> the u.s. federal aviation administration has approved test flights of a plane that's been through tests before. the dreamliner. the regulators ordered airlines to ground the boeing 787 in january after a series of problems. airline executives want to get the planes back in the sky. a jet operated by all nippon airways made an emergency landing after smoke was detected from the battery. it caught fire at an airport in boston. engineers at boeing redesigned the battery, adding insulation to stop problems in any of the eight cells from affecting the others. faa officials approved the plan. faa heads say the tests will show whether improvements work as designed. the boeing ceo says they've passed a milestone toward getting the fleet flying again. >>> the head of the u.s. nuclear regulatory commission has offered to help with the clean-up at fukushima daiichi. 4 out of 6 reactors were damaged during the earthquake and tsunami two years ago. three of them melted down. nrc chair allison mcfarlane say

i believe is going to become a very major exporter of shale gas.id: but there are a lot, a lot of steps before we get into the efficient production of lng, liquified natural gas and have all the regulations broken down that prevent that from happening? >> there is a regulatory risk and that's one we're taking on. the risk is in two regards. one is, will there be mindless regulation of fracking even though there have been over a million wells drilled in this country over the years with very, very few problems. and even though there is some very strong democratic advocates including former governor rendell of pennsylvania, who has seen how it transformed the economy of his state. it could do the same thing in --. david: governor cuomo in new york so far is holding off judgment. >> i think he is now promised in a fairly short period, assuming his health commissioner goes along with it. i believe and hope he will. david: what about on a national scale? you have fed regulations preventings movement of liquified natural gas. do you think the obama admini

and that is fracking and the rich amount of shale gas in the united states. this is the kind of situation where government and business can come together to ensure that the job is done safely and does not impact the environment in a harmful way. it is imperative we effectively use the resources this country happens to be rich in. but of course, if only it were that easy. in a matter of months, the obama administration will have to decide whether to permit the keystone pipeline. a 2,000-mile conduit from the canadian oil sands, seeking ports on the gulf of mexico. environmentalists have made stopping the pipeline their number one priority. but about two weeks ago, the white house released the results of the state department's impact statement on keystone which said the impact would be nil. and yet, still no movement on the passage of this pipeline, which is estimated to have the potential to create millions of new jobs. meanwhile, there's a fight over shale gas. something this country has in abundance. so much so, america could become energy independent. the f

and experts say due to the shale oil boom here at home.e doing enough to protect ourselves from supply shocks? here to answer that is stephen schork, the energy visionary behind the schork report. always pleasure to have you on the show. >> thanks. great to be here. melissa: steven, you and have been talking about oil for years and years and years. i'm shocked to see this day arrive, that eia says we're insulating ourselves from supply shock with our supply oil here at hom isn't that surprising? >> it is quite amazing. comes back down to the old addage in chicks high prices are the -- economicses is best cure for high prices. we innovated, and brought the gas to market can and natural gas, our natural gas is cheapest in the world. 're seeing that take place in the oil markets. it is quite amazi. five years ago, united states was importing 12 1/2 million barrels a day crude oil. today we're importing about 7 1/2 million barrels a day. as you just alluded to, we're producing 7.2. by the end of this year, the united states will be oducing mor

okay, let's talk about shale. because this is a story i am so hot on.the shale exploration and production story. last week, we had on the ceo of conoco phillips. and he talked about the opportunity with me last week about shale. listen to what he had to say. do we have that sound bite? >> well, it's tremendous. it's a renaissance for our country, certainly for our industry, and for our company as well at conoco phillips. it's driving tremendous changes. go to north dakota and see what's happening up there in the state, what we're doing here in texas, what's happening in colorado, what's happening in ohio. it is changing the landscape and it's changing it for the better, helping this economy grow. these are good, high-paying jobs with great benefits coming in this industry. >> is that the way you see it? >> i think those comments are spot-on. you know, there's an opportunity to generate a couple of trillion dollars in tax revenue over the next 20 years. there's an opportunity to generate millions of additional jobs. all we have to do is have a regulatory

oil resources and i know of shale while there was a mention in the block and that the water they were using was for a river that was a tributary to the mississippi river and the mississippi river is very low so you're going oh my goodness so this is kind of hard what's contributing to our river problem situation but china has been mentioned as being i shall reducer constantly but they are very wired to station and how they will find water to do that fracking is really uncertain yeah the images coming out of china of cities that are blanketed and pollution that is really shocking when you take a look at it clearly that's going to cut into their ability to be productive at some point i wanted to switch gears for a second and talk about something else you've written about which is minimum wage and this is something that doesn't get enough attention at all when you talk about minimum wage a little bit as you do in your recent piece. well i think what's happening right now is the total amount of wages that our workers are collecting is declining and this is really a competitive situation w

i'll tell you shale and fracturing is transforming this country. great stuff.iate your time in coming on the show. many thanks. >> thanks very much, larry. bye-bye. >> natural gas boom also brings good news for the u.s. on the world stage. get this. in november and december the u.s. surpassed saudi arabia as the world's biggest fuel producer. we kicked saudi butt. john, great to see you. as i understand this, all right, crude oil, gasoline, biofuels, we beat the saudis in november and we beat them again in december and it looks like a new trend. you b.u. it? >> i do buy it. we can keep doing it over and over and over again provide the industry has the access to the natural resources that they need. here we have a problem. on state and private land we're doing very well. on federal land we're going backwards not forwards. net production on federal lands is now down from four years ago and permits for federal land production is also down by some 50% from four years ago. that's not a good sign. >> okay. i agree with that. we'll get to that. i want to know this. if

unconventional shale oil, knew it was there, could 23409 extract it commercially. now it is on this enormous growth. so it's all technology enabled. and so that's why we believe technology will name these others supplies. >> rose: there is no bigger subject in the international field than natural gas that is everybody is talking about. as they talk about how it adds to american economic security because no longer dependent on gas. secondly, they look at it as somehow replacing comb ar or making less of a dependence on coal. give me your sense of why you saw this coming, and made a huge capital investment. >> well, we actually saw this shift coming more than a decade ago. and our first move in to recognizing and securing participation in the growing world of natural gas was-- natural gas was the establishment and creation of our huge liquified natural gas platform in qatar with qatar petroleum. qatar is now the largest exporter of-- energy in the world from being almost a nonplayer in the early 90s. >> and with it has become a political player. >> all of that, yeah,

this seems like a marriage made in heaven, american water and big shales.-- >> absolutely. no, no, no. in fact, most of the wet gas which is getting produced because it's liquids where the oil companies are making their money is, in fact, right in the territory where we have a lot of our systems through southwestern and northwestern pennsylvania and down in virginia and across the border in ohio. we provided over 350 million gallons of water to fraccers. we ended in a number of pipeline extensions to serve them. we've got contracts with 30 different companies, 16 different points of delivery all through that area. drilling's backed off a bit. it's starting to come back a little bit, but it's been down for a year. we see it starting to inch back where the what the gas is. >> you've got a good story. i wish you had been on the show earlier. i would have liked to catch this lower. if it's going higher, doesn't matter where it's been, just matters where it's getting to. >> 10.5% growth, 2.5% yield is deserving of a higher price. >> when you have a spill, the ep

we think that there is about 15 billion barrels in the shale depositt. you do the math and you are talking about an awful lot of money. >> throwing up big numbers. what is the debate? i believe north dakota has done this. >> california is no north dakota, no question about that. environmentalists here are very powerful and they claim that fracking is untested on a large scale basis and they really fear elimination of the state's water supply. they have been joined by farmers and ranchers. they are opposed by the power industry and the folks looking for new revenues. it is a political stalemate. there are no real laws on fracking and the state is halting until they can figure it out. >> how does this get resolved? >> it may not. the issue could be caught up in the hands of regulators and courts for decades. there is so much at stake here that legislateers now have submitted at least eight different bills to determine the best conditions for fracking including issues like wastewater spills, prevention, energy company insurance. whether any of these proposa

the shale field spans from the south end of the bay through most of central california. a fellow from google was named popular science's one of the most five smartest people on the planet. he is going to be my guest. he runs the online college course udacity. he invented google glass and google street view and the google driverless car. driverless cars routinely running up and down highway 85. a person behind it just in case not actually driving. i asked him about the first tame he let the car take over in traffic. >> it was certainly a moment of hope. i would have called it faith-based driving. we made sure we tested it like crazy. >> this is a fascinating conversation with all kinds of different things because the guy does so many different things. it will run sunday morning after meet the press. >> he seems so animated and likeable. >> he is a stanford professor on top of that. a really great guy. >> very interesting. try to stump him. >> faith-based driving. that's great. keep hope alive on the rhodes. it is 6:17. christina loren telling us we don't need to hope, gre

due to the extensive development we're seeing now of shale gas fields in the united states. executives of mitsubishi heavy industries and imabari shipbuilding announced on monday they will set up a joint venture. mitsubishi heavy will own 51% of the company. mitsubishi heavy has expertise in energy saving technology. while imabari has know-how in shipbuilding. they say this will put them in a position to compete with major rivals in south korea and other countries. >>> here are the latest market figures. >>> deadly religious violence in central myanmar has drawn the attention of the united nations and there are increasing concerns about the fighting spreading to other areas. >>> the u.n. secretary general special advisor visited some of the sights where many muslims were forced to flee their homes. during the visit, he expressed concern about the violence denouncing those responsible. >> they will be caught and punished. >> the violence erupted after a argument between a gold shop between a couple and shop owners. nearly 200 houses and buildings were set ablaze. there was a

but mainly focused on the eagle ford shale in texas.en a volatile stock since 2011, at $22 a share. it closed down 17% on its very first day of trading. now it's a $19 and change stock. i got a feeling this company's luck just changed in a very big way. see, on monday night we found out that sanchez is buying 43,000 acres in the eagle ford from hess for just $265 million. come on, that's an incredibly cheap price, practically a fire sale. this deal instantly more than doubles sanchez's energy daily production rate, increases their well count and it adds 14.4 million barrels at a ridiculously low cost of $19.70 per barrel. plus, they have a joint venture with marathon oil that contains some of the best wells in eagle ford with the opportunity to drill many, many more. a year ago sanchez was producing just 500 barrels a day. these days they're producing 3,800 barrels a day. the company should be producing 8500 or 9500 barrels a day. this is a transformational deal. so let's talk to tony sanchez the president and ceo of sanchez energy to l

told me -- senator lieberman told me that israel and the united states discovered natural gas and shale oil, there is proof that there is an almighty and he is listening to our prayers'. [applause] -- our prayers. however, the middle east is important. the price of oil is happening there. it is an important area to both of us. if we do it together, if we cope together with the terrorism, with what will emerge in the arab spring, i think the two countries will be better off. >> we are running out of time and want to move to the closing part of this discussion. i want to ask each of you, starting with senator gillibrand, this amazing collection of american citizens, citizen activists who are going to engage their representatives in congress and make the case for u.s.-israel relations and what is the centerpiece for american stability and position in the world, what is your message to this group as they go to make their case? >> first, i want to say thank you. so important that you talk to your congressman is about what matters to you. even as senator mccaskill and i are working hard on th

perhaps of is the at this stage, though not so obvious when we started three years ago, shale gas is transformative for the economy of the u.s., north america, for the gas industry in particular, and potentially on a global scale. thirdly, the environmental impacts of shale development widely discussed and hotly debated, and we use these words carefully, challenging but manageable. >> kevin connor, your response? >> it is outrageous for the energy initiative for ernest moniz and mit to pretend it is independent of industry. first of all, given the sponsors of the report are all industry organizations and companies like chesapeake energy. ernest moniz was attempting to say it was somehow insulated from the influence of these gas companies when in fact authors of the study such as ernest had industryggs positions at the time. is particularly insidious. the fact he is saying fracking is safe for the environment when he had actually joined talisman energy, a gas company at one of the most active frackers before the study was released, so he is speaking to a roomful of journalists there a