tv Doc Film Deutsche Welle March 18, 2019 2:15am-3:01am CET
played for mines. five days minutes to venezuela's crisis in a fight to get aid into the country with a convoy of i don't support us with an exclusive d.w. report alongside venezuelan journalist says our buddies a close up look at the country's catastrophic conditions on the way to colombia for a showdown for it. starts march eighteenth and. there was a time when the automobile was a symbol of freedom the carefree days when a full tank of gas could be had for a pizza but then came the first oil crisis in the process of crude oil so more.
black and gold for oil producing countries it became a political weapon and a potent tonight for blackmail and threats. to. our dependence on oil cost us dealing the day when the world's oil reserves will run dry and now appears within sight that this was just the start. of. the oil crisis did not foresee the events that opened the door to the exploitation of a new resource shale oil and unprecedented boom propelled the united states into the ranks of the world's largest oil producers. it. consumers benefited from. the prices this time
it was the oil producing countries that bore the brunt of the price of oil collapsed between june twenty fourth chain and january twenty sixth game the price of a barrel of crude declined by seventy percent. this train major producers the united states russia and saudi arabia continue to five for power and control shifting strategies and alliances helped turn the global economic and geopolitical order on its head. at the same time a global transition to renewable energy is underway oil is still king but is its room now drawing to a close. here
in the heart of paris the kepler company keeps a sharp eye on the global oil economy. so you know it was a. while xander and lawyer is an oil market analyst. who had to release numbers showing saudi arabia's exports are rising a bit in venezuela still falling. about one hundred thousand barrels a month so i'd say that's having an impact right now. in september twenty twelve early in his career and lawyer published a study that predicted a major drop in the price of oil many experts disagree says you know their dues are put in twenty twelve the price of oil was one hundred dollars a barrel as if their own forty could only go up to two hundred dollars about it was on when i said all the prices would collapse they thought i was crazy to be a q could you be taller and he should simply false. in
january twenty fourth chain until his predictions began making headlines. with facing a technological revolution that could change the world as we know it today. black gold a recurring theme in the modern american dream the country's oil taps seemed endless and oil exports billions to. the industrial revolution helped make the united states a world power but to maintain a standing new sources of oil would need to be found. one of the most colorful presidential cause or a row of saudi arabia. in february nine hundred forty five the americans and
the saudis meet on board the u.s.s. quincy to discuss the oil. have a new back to security miter cicle socrates there was a bilateral security pact which is what the saudis called. the americans loserville we have an ocean of oil and will assure that you have a secure supply news of it in return we ask you to ensure our security coups it sure you know to security. in denver so where's it alone why but understanding each other brings together all of. the friendship would soon proved to be a rocky one in nine hundred sixty the oil exports of the middle east joined with venezuela to form a cartel that would defend their interests and. stabilize prices. from that point
on the organization of petroleum exporting countries opec would be a powerful force. in some random madeleine get. killed because. worried about its own oil supply the united states halted its exports. of the carefree years when a tank of fuel costs next to nothing had ended well have become a political weapon. over
this with a few the ninety's we've forgotten that oil crisis people were euphoric. they thought everything would be fine that we had the geopolitical situation under control and that we would retain a firm grip on the middle east and the trees take about two minutes later we realized that wasn't the case but at the time that's what people believed book we see in. the terror attack on september eleventh two thousand and one was a profound shock to the u.s. government and its people. fifteen of the nineteen hijackers was saudi nationals. after september eleventh we saw the close relationship between saudi arabia and the united states began to disintegrate somewhat. but the u.s. was very dependent on oil imports for. in the middle east including saudi arabia.
we began to see american companies such as exxon mobil chevron and texaco shift from saudi arabia to africa which at the time was still relatively untapped. they focused on angola nigeria and the other countries along the gulf of guinea must. be there was doing that. in the wake of nine eleven the u.s. began to pursue a new oil supply strategy in africa was just the beginning was. saddam hussein and his sons must leave iraq within forty eight hours iraq held nearly ten percent of the world's oil reserves the us had taken another step in the direction of reducing its dependence on saudi oil in any conflict your fate will depend on your actions. do not destroy wells
a source of wealth that belongs to the iraqi people the americans would prove to have a keen interest in iraq's oil fields the weapons of mass destruction supposedly possessed by saddam hussein were little but a pretext in two thousand and three oil costs thirty dollars a barrel. the wolves of wall street got into the act the big american banks had the scent of black gold which had become an attractive commodity on the global market. my personal trading experience is in the oil but at morgan stanley at the time on my trading floor we traded all commodities so it included agriculture metals freight shipping natural gas power all commodities.
then tire commodities market was booming and demand was fantastic for oil worldwide and china and particular in asia were growing a lot so very very positive did you make a lot of money yes a lot of money was made and because we had new market players and so that creates more opportunity. over the next three years the process of oil more than doubled to consider this development of this banking business originated with american investment banks we need to ask are these two actually banks or are they perhaps financial institutions that engage in trading for most of the kids to goldman sachs and morgan stanley became major players. there were years when goldman sachs and over a billion dollars from commodities trading bio the loop with the commodities. falling and sears. the banks the speculators realized that oil especially crude oil was
a fungible good. a kind of substitute for money if you will. the most fungible good is money which is traded around the world next come crude oil petroleum gasoline. also bought and sold all over the world the banks used oil as a way to engage in speculation on what. the speaker of. the financial industry had free reign they traded in future legally binding contracts without ever seeing so much as a drop of oil. in the oil price is directly related to speculation it has nothing to do with the actual product anymore because it's when the time when the crude oil is extracted and when it arrives at the refinery its price will have tripled. about thirty
intermediaries will have all taken their cut it's completely crazy for me as a poor industrialist this is the key point fortunes have been made without any product behind it simply by means of trading the point three is some promoted typically. the rise in oil prices was not only due to speculation global demand from the merging of threshold countries and from china was also a driving force. it was very exciting because it was a new world and asia was developing so much that was. just very exciting that the entire world was growing it was wonderful but in two thousand and eight the price of oil hitting a new record. there was no oil price even went above one hundred dollars it was crazy hey it was so exciting as you know it when nothing and then it went straight
down again and then it went higher again. so it was very exciting but still we had buyers so so long as someone wants to buy the oil it's ok. meanwhile american engineers and entrepreneurs were hatching a new plan to exploit the immense oil and gas reserves in shale and other rock formations while conventional oil deposits are for the most part easily accessible shale oil is trapped in rock so dense that it must be fraction to extract it the process is expensive but in the process of over one hundred dollars a barrel it becomes profitable. with the start of shale extraction extraction from unconventional reserves in the us sensed an opportunity to. live is unique you merely years six the u.s. was an oil exporter in the later they became an importer and signed agreements with
the gulf countries some of concert here but now they thought maybe we can escape the clutches of those bothersome countries in the middle east to suit the more you know your dog in the world. the permian basin in the heart of texas contains an immense oil reserve estimated at some thirty five billion pounds the first oil rigs went up here in the early one nine hundred twenty s. in the city of midland the childhood home of george w. bush oil is king. the development of the technology racket in the bill is a get it out that the permian basin was fabia ready if for any other reasons our
say the eagle ford shale there was no it's not a new bid development and barnett shale but the shale play here you have so many advance individual as for geology is an engineering groups they were already there could well write a sort of sort of play right here we have in some areas over twenty different pace that are stacked on top of one another this resource here is enormous he sank of the size of the permian basin it's it's it's meger in the state of alabama that's how big it is. and xander came here in twenty fourteen years the shale oil revolution was at its peak and he. can. use it to. set a point about it about it was in full swing. during the first half of the united price
was at one hundred dollars a barrel drilling rigs were everywhere. everyone was euphoric there was a real estate boom that it was a true oil rush but that what it is structurally speaking shale oil extraction is a completely new and different industries. with just five million dollars you can start extracting oil within three to six months and more reserves elsewhere in the world it takes several hundred million dollars and a much longer time between two and four years was that it was very surprising how quickly things went teeth and how little money was needed as it is a part of. the shale oil windfall and now the americans to council will imports as a result global demand stone. there was a glass on the market for one hundred million barrels of oil with no buyout.
accident at those. fourteen oil crisis wasn't triggered by the americans it was triggered by the saudis it had a political dimension the u.s. had long been an ally of the saudi monarchy. she said yeah and. they had an understanding with the saudis owns that they would turn the tap on and off in order to regulate market forces. but the saudis had no plans to throttle production instead they continued flooding the market hoping to push prices down at under seventy dollars a barrel they assumed the american fracking industry would fall to boil went into for a moment. made .
in. the high stakes game of poker began in the first round saudi arabia urged its opec hotness the all powerful cartel of oil producing countries to maintain their production though oil prices were crucial to their strategy. to the old issue here in the summer of two thousand and fourteen the saudis decided to send oil prices plummeting to use high costs to push wreckers and other producers out of the market. we were surprised and started maybe they know the shale industry is on or about it. she stopped to clear so really hard. after a five hour negotiation opec conceded the saudi position they agree to flood the
market and drown out the american produces oil prices continue to fall in. russia the world's second largest oil exporter stood back and watched. the country is not a member of opec and it had a somewhat different take on the american shall revolution. yarmulkes goes to the technology that permitted her to valid meant of shale oil and gas extraction was developed in the schlumberger in a bar a tree located in the city of najaf a c.b.s. company. that are in the development of this technology took place on the russian territory. border if you combine into but as for you we didn't think fracking would be implemented on such a large scale ship. in thin soonest but it didn't surprise us
because the united states and canada have significant hydrocarbon. so certain other was a.q. . unlike the united states russia doesn't extract its shale oil but even though russia was not surprised by the us fracking revolution must go did not anticipate the collapse of oil prices. for a churlish trip to the store in twenty fourteen fs now the russian officials and the oil and gas analysts believe the prices would not fall below eighty dollars a barrel to get up with two thousand years or we didn't think the saudis would risk that since it would make it difficult to maintain a balanced budget the more looks a bit was all it sold of to are even the russian president said that the world economy would collapse if prices dipped below the eighty dollars mark foursomes nor for the work. but the price kept dropping.
as the holiday season approached moscow grew worried that the plummeting price of oil could send the country into a deep recession. the downward plunge continued. i the major players in the u.s. fracking industry working on a strategy to come up the saudi gamble with no end in sight to the drop in prices who would fall to first. level you're also shocked at all the shock that the saudi decision unleashed a shock wave i commend it had an almost immediate impact on the shale industry difficult understood there were massive layoffs in the united states. everyone cut losses cool the price here rock bottom at twenty six dollars
a barrel. but if you. haven't they're all set up for twenty six dollars was a serious crisis has some major factors continue to into every battle that's coming up us to flush out the financial resources to withstand the lower prices which they figured would last only a few more weeks or months dogs are going to they were right it is also said that. i don't think anybody was actually and i can go on the time actually you know working ourselves back up and everybody was still watching the price of the all you know met watch in a pretty close and i forget what the exact price was. her. last. every oil producing country was affected by the crisis but norway had an advantage. western europe's largest oil
producer was observing the poker game from a safe distance and preparing to the future. no god or stored in tact for many years much of norway's revenue came from oil and gas exports to countries in the region. then before the crisis hit our government had already decided to diversify the norwegian economy. we needed a broader basis which would make us stronger at concentrating all our growth in one single source of revenue would make us too vulnerable what it didn't like. the plummeting price of oil also had an impact on public perception. among mortar saw. rock fall in a certain sense it had a positive effect at least here in norway although it helped us move forward in the
discussion about climate change cisco and the oil companies grow a bit more open to alternative solutions i'll get a similar. or a more and more citizens our politicians realized that perhaps we shouldn't believe what the oil companies were say so every resource is finite even if they try to launch all these crazy projects like this all that helps trigger a shift or what it was. so the stop the new deal it. oil extraction began in norway in one thousand nine hundred seventy one and ninety nine thousand the country established an oil fund to invest its petroleum revenues the sovereign wealth fund which has more than one trillion dollars in assets helps finance social expenditures in november twenty seventeen the fund announced it was considering divest in for more oil and gas saying the country already had enough exposure to this high risk industry but so far no decisions been made.
when i came in the demand has paid while one is worth anything anymore rich saying we don't know. or it could be called price war might go back up but it could also go down with. a working on a strategy to prepare. for the future. in another sign of the times the norwegian oil company stock oil decided to read brand it's been renamed ecuador to signal its shift to a broad based energy company. for several years in our projections and scenarios we predicted a peak in both the man's and oil production around the year twenty thirty. but this is all very uncertain and for this reason we believe that renewable energies will play
a role in the future. because up to the all. the norwegian company plans to invest two hundred million dollars in renewable energy by twenty twenty two. point zero or develop the world's first commercial floating wind farm off the coast of scotland. the high wind farm is linked to a battery storage system. but no way has not abandoned to oil and continues to issue exploration licenses. the oil market remains mired in crisis climate change has become an increasingly important issue on the global agenda. to work out the south but the
six show. i thought. thad. since then president donald trump has announced his own energy policy i say are pursuing american energy dramaturge them by their. end of this year we will be totally self-sufficient we will be a major export is of energy we will take a massive amounts of body we will start off by twenty three hours and then. the americans remain steadfast and withstood the price slump. the u.s. fracking industry had proven itself surprisingly resilient alan gilman is a leading strategist in the texas shale oil industry.
so how in the world has it as the breakeven prize for an able to drop so much during that time frame i think that it was the the magic question that no one figured out when they made the decisions to sports prizes or the production of oil so i think that it's. against changed the production of shale is very strong in the united states you know starting around forty dollars a barrel and going up and it gets better every year but right now if we're forty five to fifty five dollars a barrel we're going to produce we're going to continue to produce more oil year over. us produces still drilling for oil engaging in launch scale fracking and raking in the profits.
saudi arabia had underestimated the american fracking industry the kingdom decided to shift strategies. behind the scenes at the ministry of energy it put him on the honna had long sent as an advisor to saudi oil minister as i would. take it. further than. that and then he added the he said of the federal about the drop in price and twenty fourteen and it t.j. and twenty fifteen was the result of several factors when i was the audit into the first was the increase in oil production outside opec mainly american shale oil. and i am going to fanny the second factor was a slowdown in growth and the global demand for oil sadhu that it will and with that
it's. in the door of one to the third of the opec countries didn't respond quickly enough he said the drop in oil prices. they did not do what was necessary for the market to regain stability. the entire saudi economy was affected by the collapse in oil prices for the first time in its history the kingdom faced a record budget deficit of ninety eight billion dollars. in europe fuel prices were decreasing but in saudi arabia they increased by fifty percent. i think. this out economy is now in the hands of crown prince mohammed bin cell man who wants to modernize the kingdom the billion dollars vision twenty thirty project
seeks to prepare the country for a future without oil. because that was so nothing because saudi arabia is far too dependent on oil that is dangerous and the demand. for the money and the dollar but that the authorities have started to change their strategy which depended on oil revenue enough in order to diversify our economy to be my summer. but without even fortunately the reforms are not being accepted the man the semi know what it wants to turn their backs on the energy sector but that's for ten years the kingdom has been trying to prompt a shift in people's mentality which must happen for this new direction to succeed but most of the population has not reached that point yet. where them all to me and . my. i
laugh. the woman come sit in washington as a kid a little in love but. you couldn't cut it could be you know. but the if it continues to live as a part of vision twenty thirty the kingdom launched the new york initiative and new mega city run entirely under new bull energy d.c. who are doing for it what a little bird of god what a little just. opec impact on a fresh round of poca saudi arabia had hoped to force the us to capitulate to no avail now the member states urgently needed to come up with a new strategy to raise prices.
on the right but i think it's just the fact is that if at the vienna masing opec was determined to maintain its credibility. and we had really a battle then for market share. in a sense you could make the argument that opec blinked first. because in some ways they might have been better. to allow prices to stay lower for longer because that really would have put a squeeze on supply and u.s. shale and in particular as it was financial pressures became too great for them.
in one is called an historic agreement the opec countries pledged to cut the. duction to help raise prices nigeria and libya were exempt to the cot gita unrest and the country's civil. war. in the main time the us had resumed its oil exports opec's production cuts allowed the us to gain new market share. at the next round in vienna in twenty seventeen opec hope to woo nonmember russia further into its corner and tip the balance against american shale oil.
the russian minister of energy alexander not that attending the meeting. until that point in russia had never collaboration with opec many wondered whether they would reach a deal with the saudis russia is also an ally of iran a rival of saudi arabia in the syrian conflict the geo political chaos had reached its high point. lucio and then you want to try to recruit said then your action has a natural alignment with oconee economically and diplomatically the committee there are very strong rivalries in the opec world especially between the sunni's and the shia m a tween saudi arabia and qatar although qatar has now left opec. that's left room for someone to step in. and glad rochelle was
a natural in that role from the so for now they have good relations with various opec countries. including arch enemies iran and saudi arabia. you know it's just a little like this given the conflicts in the region moscow is increasingly assuming the role of mediator. the united states has extracted itself over more what is it isn't it that. i. was here our model for the first time russia and opec have arrived at an agreement to stabilize the market and exports do it all this is a first to get i was and still believe me and we expect that these good relations between saudi arabia russia the opec and other countries will continue that such as
kazakhstan azerbaijan and oman was yet will be in and of a quote what do what it also does that stand of that it be journal much. more oil and politics have always gone hand in hand russia had ambitions that went well beyond the new opec plus agreement. doesn't mean we shouldn't exaggerate the importance of oil and the champ political sphere politicians and diplomats must cooperate with one another on other important questions to hear it more from with tires a much more oil and gas strategies play a major role in global politics there's no doubt about that but for at that is that based on the tin is head of the presidential commission that the energy sector of russia can use it but the people in that it's cool complex for us. the oil crisis
has reconfigured the g.o.p. to. landscape resulting in surprising new alliances in one nine hundred forty five oil brought king even the sound of president franklin roosevelt together this time king saw a man of saudi arabia travel to russia to meet with president clinton. i . just thought she would cut over in russia there are political forces that support the opec plus agreement with the government and the president leading the way but as you. rice there are other forces that are categorically opposed to opec plus for us. not especially our oil and gas companies which have an enormous production capacity we need a girl only for them so that our state is currently controlled by the president and the government so the companies can't do anything now or in the near future by them
combining. in a small. opec went into the next round but it seemed the game was drawing to a close for years earlier and lost alexander and lo yet had returned from texas and predicted an up evil in the oil market his full cost proved correct and the geopolitical landscape of oil was turned on its head. once where the world of seven needed care i mean american shale revolution has transformed the market by the end of twenty nineteen of two of the us will be producing nearly twelve million barrels a day what british will be i to i or saudi arabia and russia has set has an impact not only on the energy sector but on the entire global economy shake a limiting your i. opec has turned a new page the future of the oil cartel and of russia and now closely intertwined.
you sit back more like we don't know how the world's energy demand will evolve but over the next twenty years we'll need to examine our dependence on oil to part regardless of what trump might say for them with a lot of his old history book leadership. since the dawn of the industrial revolution crude oil has made the world what it is today but how long live fossil fuels continue to became. the example of norway is a good illustration of how the global energy market might be transformed in the face of climate change.
that certainly. norway might remain and a major oil and gas supplier us but we want to meet the two degree celsius coal or toward others we instituted important interventions to reduce c o two emissions in much of that our extraction on the norwegian continental shelf is quite environmentally friendly dog i don't believe any other country can match us here to get us in there no one on their land so mileage. that is forced or so we're slowly beginning to grasp that we have too much fossil fuel not so little. that is a challenge because it means that humanity will have to set a limit seriously in your lens this is the great challenge of our time the bigger thing of. us and i want it stored and we must leave valuable resources that we would like to exploit which have brought us
a great deal of affluence where they are clean so that we can protect our climate and the environment and the lives of future generations. the titans of oil have begun a new ground under the watchful eye of a new play out china is now the world's largest oil investor and has become a renewable energy pioneer because of being shuffled for the next round of oil polka.
a sustainable future clever projects from europe and india. next d.w. . feel good shape. different parts of the world the options change back pain differently but which methods work best. what's good is the good that it's really. good if it keeps. pushing thirty minutes w. . and. just couldn't get this song out of his head. ecologist began searching for the source of these captivating sounds. deep in the rain forest in central africa.
to find their culture the state was only a promise to his son to leave the jungle and return to the concrete and glass jungle of new york. the result reversed culture. of the prize winning documentary song from the forest starts people first on t.w. . new zealand's prime minister just into our different has met with the family members of the fifty muslims killed in a terror attack in the country over the weekend. thirty four other victims injured in the assault on two mosques are being treated for injuries these trillion white supremacist arrested after the rampage has been charged with one count of murder