Even when they say its not it is aays about money. Melissa first lets take a look at the days market headlines. Stocks adding losses to yesterdays big selloff. New home sales rose to the highest level in two years. But economic concerns voiced by the fed helped send stocks to the downside. The dow fell 25 points. The Justice Department filing a one billion dollar civil lawsuit against bank of america. Its countrywide financial unit of quote, brazen mortgage fra while selling home loans to fannie mae and freddie mac between 2007 and 2009. Acebook shares skyrocketed nearly 20 for their biggest single day gain since the may ipo. Facebook beat Third Quarter earnings estimates and investors were especially encouraged by facebooks 153 million in mobile ad sales. To our top story. A new report says that the u. S. Could surpass saudi arabia in Oil Production by2020. And on top of that, shale energy could create 1. 3 million jobs. Boy, do we need that. Will shale save the u. S economy . To drill down on it, we have the president and ceof u. S. Chambers institute for 21st cenry energy which cosponsored the report. Karen, thanks so much for coming on the show. Were you surprised by the outcome at all or this pretty much you put the study together because you suspected is is what was going on . We have suspected it. We know it was huge but we didnt know it w so big and now we have the numbers to rovet. The American Economy has been looking for good news, the way to get off the he deficits we have, fall o the fiscal clif it is right here underneath our feet, vast oil reserve, va gas reserves a we need to put it to the work for the economy. Melissa i want to put i in persctive to viewers. Ive been to saudi arabia. The oil there is basically sitting in the sand. Oil here is harder a more expensive to get to. Great that we Ve Technology but it is more expeive, right . It is more expensive and get a lot more out of it because it is the most advanced technology. No surprise where lot of it is happening north dakota, north dakota has the west Unemployment Rate in the whole united states. That is because theyre able to put their economy to work based on oil. So, yes, it is a little bit more expensive. Because of technology, you get a lot more molecules out for the money you put in. Melissa if it is more expensive, saudi arabia can flood the oil market with cheaper oil and ta away that business. It is not rig or apples it apples. While the technology might be more expensive were getting out more for every dollar that were putting in. Melissa i dont understand. How is that the case . Because the way you usese this technology, when you put it in the ground youre able to get aot more product out rather than conventionalrillg which is what they doing in saudi arabia. Melissa hmmm. Im not sure about that. We might have to examine that at another me. Sure. This is unconventional, rather tn conventional. In saudi arabia theyre doing it the way weve done it for hundreds of years. This technology were being able to use it in a way to get ahole lot more out now. Melissa okay. But, i mean theyre able to pump oil very quickly that is very cheap and close to the surface. I dont understand why that is not, easier to bring to market than the more Expensive Oil . Youre using shale. Youre fracking. It is more expensive to get it out. So at end of the day it is more expensive to produce it. But not on a molecule to molecule basis. We look at that and not to get too technil becse were able to get more for every dollar we put in it ends up being very good economical investment. That being said, oil prices are still very, very high. So it is, y know, more affordable i guess for saudi arabia to put and floomore on the market. Melissa yeah. But reality is demand is going up. So theyre flooding asian market. We need to look out for ourselves here in north america. Melissa either way, i dont understand why consumers at the pump have not seen more benefit to all ofhis oduction . No doubt it is definitely up and technologys helping but prices at the pump are double what they were in 2009. Well, lets not forget Energy Demand is going up every day. While we might be the Biggest Energy producer were no longer the Biggest Energy consumer. Asia is. So we really have to be looking at the global market. The more we can produce here at home the more money stays at he, more jobs are created at home and more manufacturing happens at home. Thats goofoo the economy. That will hel the american consumer. Not just the price at the pump. Melissa what do you think would bring undo the price at the pump . Well, we have to look at Global Supply and demand of the as we look at it going out the next decade it will be very, havee tight. Every molecule we bring on the market, that money stays here and that is what will improve our economy, help us not fall off this fiscal cliff, and quite frankly, create the jobs that we need. That is the type of Economic Growth we really need to be focusing on. Well hugely impact the price gasoline at pu just by producing oil here at home but we will be able to weather those inevitable volatility that we see if iran closes the strghts of hormuz it will be much better for america producing more oil at home. Melissa what do you do to em the environmental backlash against this type of drilling . I think the truth matters here. According to our own Environmental Protection agency, the head of it eila jackson said, you know what . Never has there ever been a case groundwater contamination because of this. I take the government at its word. Weve been regulating at state level and it worked pret well. At being said industry does need to be held to very high standards. That will happen and that should happen. Technogy will continue to improve. Our ability to use this resource but lets not be led undo the path of hollywood mythology and movies tryin to sell us not the truth. Melissa kar, thanks so ch for coming on. Great. Thanyou. Melissa staying with oil here. The question is, should big oil keep getting tax breaks they currently have . The industry got 2. 6 million biion in tax incentives in 2010. Lots of lawmakers are crying foul even some republicans. Energy Department Says ending ensign testifies could bring in 40 billion in revenue for 10 years but i wonder at what ccst. We have the advisor for the American Petroleum institute. Thanks for joining us. One thing that drives me crazy when we have these discussions, companies doesnt raase taxes people do. If you raise the taxes on Oil Companies. They pass it onto the consumers, well see it a the pump, every consumer that drives. Do you think average american gets that . I think the average american does have a understanding of these issues the fact remains the oil and gas industry pays the National Government 87 million, rents, leases royalties and income tax payments. re a huge part of the economy and we are investing in american infrastructure. We are paying our fair share. We have effective tax rate of over 40 even. That is more than many other industry. Melissa what do you think ending these deductions would do for the price of gas at the pump . I assume youre talking about the context of tax reform. Any examination of these deductions im glad you said that they are not credits, they are not subsidies, theyre business deduction. Right. Ny examinaon of those outside tax reform is simply a tax increase. That would result in jobs barrels of oil per production per day lost et cetera. In the context of tax reform, the industry is supporte and sees value of a lower tax rate. However we are concerned about the base broadeners getting there. There arebays broadeners that domestically could hur our cash flow. At impact could result in less production, less jobs. Were certainly willing to have that discussion with lawmakers. Melissa ville nicing big oil is easy. Likeville nicing private equity or the top 1 . Mitt romney battled back against that during the first debate. Let me play that sound bite for yo and ask you about it on the other side. The Department Energy has said that the tax break for Oil Companies is 2. 8 billion a year. And its actually an accounting treatment as you know that has been in place for 100 years. Time to end it. And in one year, you provided 90 billion in breaks to the green energy world. Now, i like green energy as well,but that is about 50 years worth of what oil and gas receive melissa so on a oportional basis, that is 2. 6 billion versus 90 billion. Our brain room crunched numbed members. Theyot to the number lumping in the money given to gre energy through the stimulus. It is not apples to apples comparisons. It is apples to oranges but at the same time it is all my money. All tax dollars and revenue taken from thegovernment being sent out. Do y disagree with that. Not with our industry at all. Our industry has not received credits grants or checks. We benefit from deductions that lowers our taxable burden. There is no transfer of money. If we talk about the stimulus package look at a number. In 2009 the oil and Natural Gas Industry invested 470 billion in the economy. That is half the stimulus package without involving the government. Were industry bringing new technology and Shale Development we saw earlier. Would you rather r industry invest that money in the economy, or the people that brought you the dmv, post office and things of that nature. We pay on average every year, 32 billion to the federal vernment. If you believe, if you lieve some of the rhetoric about 2. 8 billion, et cetera, i dont know how they get those numbers. It is some government math. But 32 billion a year going in versus 2. 8 going out if you believe in that, that is great return on investment that is bet you would make in vegas any day. Melissa what do you change the view around america that green energyood, big oil bad . That is the myth, how you ever want describe it that i being perpetuated time after time. How do you change that . Good, bad, i dont think we should think of those things in those terms. American oil and Gas Industries supports green energy and renables. We invest more in alternative energyn these projects than the private sector and government provided. Were on cuttingedge. Were for all ofhe above Energy Solution which doesnt mean picking good or bad or winners and losers. Melissa buy on a thanks for coming on the sho no proble, ank you. Melissa time to check the fuel gain. First up, Oil Prices Fell for the fifth straight session. Unexpectedly lge drop in u. S. Supplies helped send crude down 1 settling at 85. 73 a barrel. Marathon oil is reportedly looking to sell part of its stake in a Canadian Oil Sand project. Maraon has sold 1. 1 billion in assets this year part of an effort to expand its presence in the u. S. Shale industry. We were just talking about that. South africa accung local units of chevron, bp and other oil giants of price fixing. They said companies exchanged sales and Customer Data for nearly two decades to repress competition. They want a final of 10 of their revenue for the last fiscal year. Ikea will invest 2 billion in solar and wind energy by the year 2015. The furniture giant is aiming to produce as Much Renewable Energy as it consumes by the year 2020. Well check back with them on that one, you can bet on that. Next o money, iran allegedly behind a devastatg cyberattack on a global oil giant. How long until our electric grids and Water Supplies get hit . We have a former member of the jot chiefs of staff. The fed says it will keep the stimulus juices flowing but how much long until the well runs dry . Moremoney coming up. Lissa forget about horses. Weve been telling but the growing threat of cyberterrorism. New intellince shows iran was behind the most destructive cyberattack on a company ever. The target was saudi aramco. That was last august. That could have been in retaliation for computer virus that attack iranian Oil Companies last may. It all boils down to what is coming next. This is what is important. An attack on u. S. Eectric grids, Water Supplies and even Chemical Plants. Here with the potential impact on this type of warfare a formerember of joint chiefs of staff and a cybersecurity analyst. Colonel, welcome back to the show. My pleasure, melissa. Thanks for hing me. Melissa they blame iran for the debilitating attack on saudi aramco. It took over large percentage of computers showing a burning american flag. Does this surprise you . Not really and the reason i say that is because you have the entire environment with viruses like stuxnet and flame being attributed to the united states. Those viruses attacks iranian infrastructure, particularly infrastructure relate the to Nuclear Proliferation aspect that the iranians have. When youave that youre having titfortat between the iranians and us. In that sense it did not surprise me. The escalation of this though is something everybody should take into account and prepare accordingly. Melissa without question. This sort of crosses the line where we see government attacks on, saudi aramco isnt a private company. Obviously it is government owned. Now were worriried about retaliation against u. S. Companies even if theyrre ilities. The white house is planning on implementing an executive order that would direct u. S. Spy agencies to share the information they have with compies. I wonder, you know, who operate on the electric grid and other thingsgs, definitely impact the Public Welfare but still, i dont know, does that make you nervous at all. Are there negative externalities to that . There are some negative externalitis. I think it is a good thg the Intelligence Community will be asd to share information with private mpanies, particularly those private companies that are protecting the infrastructure but, theres a piece of this where, for example, compaes will not have, just an executive order and not legislation, they will not have liabity protection. So that is one big negative piece the other part of it is, civil liberty abouts are also part of this. And the executive order may not assuage the concerns of people like the aclu when it cometo protectg data and making sure that the private details such as pick names of individuals and things like that are kept out of the government processes as they work with private companies. But there are ways to safeguard against at the question is, will the executive order cover those processes and make those process mandatory both for government and for the civilian sector. Melissa i hope so. This is a business show and it puts companies in really precarious situation. On the one hand theyre asked to look out for National Security an Public Welfare which makes a lot of sense if youre in the business of being a electric ility and you have the water grid. At the same time theyre number one holden to their shareholders. That is who theyre supposed to think of at first. Theyre opening their shareholders to this liability. This is a very hard decision for the government to make. Can the government make it easier for that . Government should make it easier for them. The one way to really champion comprehsive cyber kurt legislation in the congress. Two measures basically made it past the first hurdles in congress one in the senate and the other one in the house. Both those measures failed but that shows that there is a lot of congressional interest in this and there has to be a way to make it work in terms of the legislative process and to insure there is Liability Protection. The executive order c only go so far. Melissa yeah. Because of that we ha a situation where the execive order is not going to be a complete answer. Will be a partial answer but it will be one of those situations where the companies are going to be reluctant pause they dont because they dont have Liability Protection and they will be very, like you said, very beholden to their shareholders because theyre making money for them or trying to at least, and they have to protect the shareholders eities but they also have to make sure their businesses are viable and continually viable entity and. Melissa he really the dang were talking out here because we all know how dangerous a big blackout can be for sure. But how, whats the potential do you think that terrorists could taint the water supply or, even, you know,ake control of the Chemical Plant . How dangerous do you think th really is . It is very dangerous. The reason i say that is because we have had instances in past, for example in australia there was an instance in brisbane that involved a sewage plant worker who got angry at his bosses and decided to introduce a virus into the system that governed the sewage, the rate of sewage flow into clean water. Melissa oh. That caused a major major fallout in that eastern australian city. You ha tse situations that it is very possible for it to happen. And that is why it becomes important for the government and the private sector to really Work Together to clean this up. Melissa yeah. Scary stuff, colonel. Thank you so much for coming on. My pleasure, melissa. Thanks for having me. Melissa coming up the fed keeps the stimulus spigot open to try to keep the economy propped up but how long can it go on . Plus crime is running rampant in chicago. Now some officials want a bullet tax to help fight it . I dont know, i think this idea is off target. Chicago alderman joe marino is here to disagree with me. I cant wait. Coming up, do you have ever have too much money or disagreements . Melissa the federal reserv has vowe t keep atit, announcing a s