Transcripts For CSPAN Key Capitol Hill Hearings 20140501

Brings Public Affairs events from washington directly to you. It puts you in the room at congressional hearings, briefings, conferences. It offers complete gavel to gavel coverage of the u. S. House as a Public Service. We are cspan, created by the cable tv industry 35 years ago. We are brought to you as a Public Service by your local cable tv provider stop follow us on twitter. A hearing on natural gas and a look at how allowing natural gas into europe could help u. S. Foreign policy objectives by helping allies dependent on natural gas. Members of the House Oversight subcommittee on Energy Policy heard from state Energy Department officials. Is two hours long. Americans have the right to know that money taken from them as well spent. Protect these rights. Our responsibility is to hold government accountable. We will work tirelessly as watchdogs. We will bring genuine reform to bureaucracy stop this has been the mission of our committee stop we will discuss the role of natural gas. How we are handling exports and Natural National security policy. Wester, we focused on the department of Energy Strategy in reviewing applications. Chargedhearing, we were stop joined by various gas from the u. S. State department, thank you both for coming. It is obvious that the u. S. Is in the middle of Energy Reduction revolution. That gives us access to word resources that were not previously recoverable. As of 2010, that number has risen to over 300 children 300 trillion cubic feet. Studies have informed decisionmaking. It indicates that the united aids will see indefinite economic benefits. Will be anrts important Foreign Policy tool. Many of our friends and allies are forced to buy gas from russias Vladimir Putin. Imports over 60 of its natural gas from russia top this gives russia on amount an immense amount of power. Russia has a habit of squeezing its neighbors energy when it wants to effect their actions. The u. S. Has the resources to come to their aid. We need the political will. As mentioned previously, this subcommittee is focused on a process for proving natural gas exports. Countries with whom we have a Free Trade Agreement that export is consistent with Public Interest. Authorization must be granted without delay. For countries with which we do not have a retreat agreement, the natural gas act presumes that. Unless the Department Finds proposed exportation not consistent with Public Interest. Natural gas has been part of a proposed pipeline through canada and mexico since the 1930s. Granted the states first permit. The facility is currently under construction in louisiana. It will begin soon. When we had our last hearing on this topic, that was the only facility approved. There are still 24 applicants waiting for approval. Doe to process these applications. It is in our international interests. In december 2012, president obama said that the United States is going to be an exporter of energy due to new technologies and what were doing of natural gas and oil. He recognized that these Energy Developments could have a huge geopolitical consequence. His remarks are embodied in the state Departments Bureau of Energy Resources. One of its goals is to manage geopolitics of state and economy through Energy Diplomacy with major producers and consumers. When objective that i hope to a college is to get a sense of how the administration is taking advantage of National Security opportunities. It seems clear to me that this administration has identified exports as a valuable part of u. S. Diplomacy. I would like to make sure that different parts of our government are functioning effectively and efficiently. The doe and these agencies are working harmonious way. Are there any barriers we can fix to move this along . This will have a clear effect on the settlement of our foreignpolicy agenda. We must safeguard our allies from political volatility. We must have crossed Agency Coordination to carry that out. I look forward to your testimony. The gentlelady from california for her Opening Statement. Thank you. I look forward to uninformative discussion. Ofgree that russian control ukraine is a critical issue. 24 ofopean union gets its gas from russia. Some countries are dependent on russia for the entirety of their supply. Obvious imperial ambitions of putin, the u. S. Must help focus this on russian gas. In the short term, proposals to help ukraine by fast tracking approval with export terminals will quickly get the u. S. Help to europe and ukraine. The u. S. Has only one export terminal. There is another one in louisiana. Terminals to find them will take several years. I am all in favor of getting the department of energy the resources they need for this process. It is a complex and slow process. It could benefit from additional resources. We should not pretend that this is a panacea. The main barrier to u. S. Exports to europe is not the permitting process. It is the fact that u. S. Gas would be substantially more expensive than cheap russian gas. Most experts agree that exports from the u. S. Would be far more likely to go to asia for prices that are higher than in europe. That is not to say that the u. S. Should not market gas in europe. That conducting Foreign Policy via Energy Exports is complex. How can we help ukraine, given these constraints . A number of efforts are underway. The u. S. Is working with you and the imf on a number of efforts to move europe toward greater diversity. Reversing flows of natural gas from existing type line into ukraine and further developing ukraines natural gas resources. Encouraging Energy Efficiency rarely makes headlines. In ukraine, it could be a game changer. Ukraine produces as much gas as it uses. The ukrainians are notoriously profligate energy users. Banks get Government Energy subsidies. By implementing efficiency measures, ukraine could be nearly selfsufficient. I think these efforts to use American Resources to bolster Foreign Policy are admirable. It will become increasingly important over the next decade will stop however, we must not lose sight of the side effects of our Current Energy boom. A Brookings Energy Initiative Study found that u. S. Exports would have a modest impact on domestic prices. ,ven this modest increase estimated to be around 50, would be damaging to low income and tumors. That consumers. They would to choose between heating their homes and buying food. An increase in exports should go handinhand with funding of low Income Energy assistance. Lets not also forget the businesses and manufacturers. They have built plans around low price gas. Would be offset by the loss of jobs elsewhere in the economy. Increasing exports would also increase the environmental risk factors associated with drilling. A strong Foreign Policy cannot of pollutingost american Drinking Water refund and chemicals from racking fracking. My district may have uncontrolled he level rise. Benefits substantial to exports, but we must think about what is feasible and control the cost. Thank you for holding this hearing and to our witnesses for being here today for the today. We will now recognize our first worsen on the panel. , thehristopher smith Deputy Assistant secretary for diplomacy, and all witnesses are sworn in. Please raise your right hand. Affirmsolemnly swear or that the testimony you are about to give is the truth, the whole truth, and nothing but the truth , so help you god . Let the record reflect that the witnesses have answered in the of her motive. In the affirmative. After your testimony is finished, your notes will remain part of the permanent record. Tank you very much. I appreciate the opportunity to discuss the does policy of regulating the export of natural gas. The abundance we are experiencing in our supply is unprecedented opportunity. Over the last several years, domestic Gas Production has increased significantly. There has been declining natural gas imports. Growth is primarily due to the development of new technologies to stop that includes technologies to produce natural gas trapped in shell nations. Permission. Formations. There was a dramatic change in 2012. There was a Important Role played in the development of technology. Beginning in the late 1970s, the department contributed to the development of hydraulic rupturing and new drilling technologies. Private sector investments continued industry innovation. There have been billions of dollars in economic activity. Coming from American Ingenuity and knowhow, the United States is now the number one natural gas producer and is poised to become a net exporter by 2018. That is according to the Energy Information administration. Lower. Gas prices are in the United States, demand for the united natural gas is growing rapidly. The department of energy has received a growing number of applications to export natural gas to overseas markets. The authority to regulate the export of natural gas rises from the natural gas act. There are two standards for processing applications. By law, applications to export withal gas through nations a Free Trade Agreement are deemed consistent with the Public Interest. Secretary of energy must grant authorization without delay. As of march 24, the department of energy has approved 35 applications. Applications to export natural , theo nontreaty nations proposed export has found that it is not in the Public Interest. In executing that requirement, the department of energy established a robust policy for national interest. There is opportunity for the public to, and theres transparency of stop there is a balance of many aspects of Public Interest affected by the export of natural gas. Interesta broad public in consumption and favoring export, but it is not the Public Interest. Involve theons department identifying and reviewing applications for export acquisition. This includes Economic Impact and International Considerations, security, environmental considerations, and others. Theonduct its review, department looks for evidence developed in the application proceeding. Applicants are free to raise new issues and concerns throughout Public Interest that may have not been addressed. The department of energy has granted some conditional authorization for longterm applicants. Billionuivalent to 9. 3 feet per day. Pendinge applications to export gas to nontrade Agreement Companies countries. It will be evaluated on a casebycase basis. It has previously been established and work on the department website. During this time, the department will continue to monitor the impact. Further information may be coming available. I would like to note that as i mentioned earlier, the department continues international considers international factors along with domestic factors. We are monitoring the situation very closely. We are certainly taking the security of our allies very closely. It has taken recent events into account in making decisions. The United States commitment to read trade and efficient, transparent marketplaces provides both economic and strategic benefits. Increased production of domestic natural gas has significantly reduced the need for the u. S. To import. Shipments that would have been destined for the United States market have been redirected to u. S. And asia europe and asia. To the extent that the u. S. Exports supplies and increases volume, it will improve relationships between many u. S. Allies. The department of energy is committed to these applications and getting them through as expeditiously as possible. We understand the significance of this issue and the importance of getting it right. But mr. Chairman, thank you for letting me appear for this committee. Member, and the members of the subcommittee, it is good to be back here as someone who has served on the house on Affairs Committee staff. I appreciate the opportunity. The hearing comes at a critical time. The relationship between security and access to energy is in sharp relief. With the illegal annexation of crimea, we are witnessing unacceptable and shocking violation of the sovereignty and territorial integrity of one country by another. This is not the Agency Responsible for approving natural gas licenses. We have just addressed this issue. The crisis led many to argue that if a liberated approval of x words with a magic exports with a magic will. It is critically important, but resources, inc. The work, are one tool including export, are one tool among money to address challenges. We have been working in many ways around the world to contribute to Energy Security. We will continue to do so. There are renewed fears that russia will use energy as a Political Tool as it did in january 20 2009. All russian gas flows were halted. It cut off supplies completely for 13 days. The energy council. It was an annual meeting cochaired by the secretary of they to state to discuss strategic collaboration. The first meeting was held that year. The fifth meeting was held just a few weeks ago. We have to take into consideration that as we look at these issues in a global context, and supply and demand changes around the world. First the supply mechanism is changed from a number of small tontries supplying the world a much larger number of countries around the world supplying energy, oil and gas. Demands, countries were driving the demand until now. In decades to come, that demand will be driven by nontreaty countries. As we have looked worked with ukraine and europe to address the Energy Security of ukraine as europe, we are looking the Ranking Member said in her opening testimony, not just at the issue export, but the issues that would require europe to address their own needs. Means addressing the infrastructure shortages at europe suffers from. We have to make sure that those are able to reverse low so that they can supply ukraine. poland and ukraine have been able to first the flow, this is a staff that could not have happened if we had not learned lessons in 2009 and spent the last 45 years working with our partners in the eu to make those changes available. The third Energy Package. A change the regulatory framework. Without that, the reverse flows would not have been possible. It is not enough to look at this from russia to ukraine. We have to look at sideline to go not just north out, but eastwest. Gas can flow. We have to make sure that there are receiving terminals. There must be a capacity to receive energy. Look at this, it is not just about the united dates. As ive talked about before, there is a supply change. I will get back to what Ranking Members years said. Australia is coming online phenoms amounts of natural gas. Mozambique and tanzania have made amazing discoveries. Offshore, israel is delivering gas to its domestic market. It is poised to become an exporter in 2017. Lebanon, egypt, the rest of the eastern mediterranean. North africa, other areas are looking to become new users. This is a global context that we need to understand. Along withg so today the department of energy and the administration to ensure that we can be there to allow and make sure that not only europe is supplied, but that energy is used as a resource for cooperation and not a resource for conflict. These exports may become a common factor. It is only that one factor, that one tool. We have to work on other areas that i just mentioned in order to make sure that our commitment as we didsecurity with a high point in the 1990s, and as we are doing now with other projects, to make sure that that Energy Security is achieved. We are strongly committed to european Energy Security. We will continue our efforts with ge you to make that a reality. Thank you. I will begin with five minutes of questioning. We will do a second wrapped in a moment. I would like to colony ambassador for Energy Security. He is from the ministry of foreign affairs. Here is a statement about the issues. I want to just read it too quickly. She testified on the hill march 25. She says, i use 400 as an example of how unrealistically high russia may raise the price of gas over to ukraine if it chooses to use gas as an economic weapon. This was before they invaded crimea. Moscow went above that number. Now they quote 485. The current price is around 260. The amount has been raised. Ukraine had difficulty meeting its invoices, even when the price was 268 stop ukraine may face a winter without gas supplies from the east. They will have to buy gas from the west work even politically. That is the reality on the ground. Waspril 11, Vladimir Putin warned about a potential supply disruption in the winter. This is hardball. It is one of the situations that we have to be able to respond to with clarity. Statementd one final that she makes. She says that u. S. Energy liberalization is no panacea. The gas could not be delivered in large volume. It will not cede ukraine and other parts of Eastern Europe central Eastern Europe from a very cold winter in 2014. It makes the mediumterm solution very clear. It would have an Immediate Impact on pricing and availability. Her request was interesting. Her request as if we will begin to act and set that marker out there that shows that russia shows russia that we are serious. Two years ago, when we started these conversations, i had different individuals who came to visit my office immediately. The japanese and members of parliament. Two years ago. Their question was the same. How quickly could beget American Natural Gas reservoir natural gas . How quickly can we get American Natural Gas to mark gas . We have a responsibility to take care of america and americans. That is in our national interest. That is our first responsibility. When there is economic benefit and diplomatic benefit strength that comes from x port of energy, this is one of those issues that i continue to ask tom a why has it taken so long . That is a long statement. Let me start this conversation. Depending on the different programs, it has taken 11 weeks or eight weeks or there are different times to get permits. The initial one, it was past approval. It took eight months after the application. 29have had some now that are , 27, 23 months after the application. Is this process getting faster . I know you are working through it. Could be doe be more efficient . Thank you for the question. Know, weall, as you are working through the queue on a casebycase basis. The first application took more time because we had to do a full study. Then, it went of work has been made on the applications. Say is that we have a great team of people working here. Our focus is on making sure that we have the Public Interest. We want to get it right. We have a order that will withstand this. Our task is to make sure that we keep moving forward as expeditiously as possible. There is no timeline that we are on. Andteam looks at each issue each is different. They will take different amounts of time because they require different analyses of the when each order is done, it is released to the team. Queue. Moving through the i want to transition. Not have ant, you do requirement on your team whether they take two years or two weeks . It is just whenever they get done . Requirementement is to move forward as expeditiously as off the boat. They have to get the analyses right. It takes time and is required. Is a retirement accounts valence here. There is noe that time bound on it, but the clock is ticking internationally. That is part of the issue. I want to honor everyones time. Thank you. Likelihoodss the that natural gas will go to europe. ,ost of these are Companies Domestic companies, with shareholders. Do they not have a responsibility to acquire the highest price for their gas in order to maintain a profit that is appropriate . Thank you for the question. I think you raised the point that once approved by the department of energy, the doe does not determine where the gas bill goes. Those companies will certainly move to send out to places that have the best return. What is the difference between europe and asia . The price of natural gas and used a is not like crude oil. There is more or less a balance price. He will talk about it at the american price. 460. At 4. 60 there are different reason regions within that. They are different. It is important to note that you cannot simply take one price in one area and make the transport of 80. If you take the prize in the united they they, you would have to add the cost of liquefaction entrance or. Transport. The increase in price you would have to add on to write new range of prices are today in europe. It would not be much about it, but it would not be below it. The likelihood of it going to europe is not nearly as great as it is to go to asia . We have a government do not tell her companies whom to sell to. They will make a decision on where to sell it. The issue is not where we send our gas. It is a global market. Will go, and it is likely to go wherever the traders feel that they need to put it a stunning variety of factors, it will make a difference in a variety of regions of stop it will make a difference. We have already made an enormous impact on the market by removing , if you look at the expectations of what we would be importing in 2014, just a few years ago, that is enormous. I want to get a few more questions and. One of the points that has not been made well enough yet is that the infrastructure in the gas is notve yet robust. The import terminals need to be built. Do we know how many need to be built . Do we know how much they would cost . Is that something the u. S. Could invest in . We are working with the ui on that issue. There is some capability at the moment that is full. There is more that is being built. The eu has had some regulatory challenges in getting some of these through. There is one in lithuania that will be built soon. There has also been a sharp decrease in demand for energy in europe. That is partly because the price of coal has come down quite a bit. Iny are making coal cheaper europe. There has been a transition from dos to coal. There has been a very warm winter. Beo not know that we would investors. That is for the private sector to do. The europeang with union to make these is financial unthinkable as they can be. According to the center for strategic and international eddies, saving ukraine from its double matted his advantage if a matter of money and political reform. They say the only way to extract ukraine from the immediate payment crisis is to provide money for them. That does not address the fundamental problem that resulted in ukraines indebtedness in the first place. Do you agree with that view . What do you think we should be doing about that . I do largely agree with that view. We have to look at this in a number of ways. The package will likely be approved fairly soon. It will release american money that congress has authorized, as well as Congress European union money. We have to pay down arrears immediately. That is urgent. We do not want a cut off. We have to address the reform of the industry. This is an opportunity to open a new page and address your form that they desperately need that we do not end up in the same place that we are in today a few years down the road. Mr. Wahlberg . Thank you. Mr. Smith, companies that are seeking to export natural gas must go to the department of energy seeking a determination on Public Interest. Could you tell us criteria for the department of energy uses in determining that term, Public Interest . Thank you for that question. The natural gas operates on the assumption that export are in the Public Interest unless the department determines that approving such applications would be deleterious to the overall Public Interest. We do not have a specific definition of Public Interest. That is up to the department to interpret. We have a wide range of criterion that we use. We look at impact on economy, job creation, job security, prices. , issuese foreign issues of International Affairs where there is a broad range of factors. Or any of them weighed differently . We do not have a formal matrix that allows us to get an answer out. Public,. Llow for is comment. That is an important part of the process. We then make a qualitative decision on all of the arguments for and against natural gas exports. You will see that there are extensive document where we are required to make clear and transparent reasons. We have to talk about the arguments made. Are International Considerations weighed in any different way . Are they more significant or less significant . Do you work with the department of energy on making international determinations . We work very closely. We work on all issues. In terms of International Considerations, you will see that there is a specific reference to the importance of Energy Security for the United States and its allies and trading partners. That is something we take into consideration. Not heavier than any other factors . I think that all of these factors are important. We care about american consumers. We care about international processes. Is the process working as well as you would like it to . I am sure that the team is doing an excellent job of making very important longterm, decadelong energy decision. They are doing a good job. How many are waiting for approval right now . So far, we have approved seven projects and we have more than 20 that are waiting in the queue. I think we have approved 9. 27 cubic feet today of exports. We are working through that queue on a casebycase basis. If you could tell us about the gas technical Engagement Program and the capacity initiative. Years,the last several state offices have worked of the department of energy and other agencies. They have worked with people around the world love sought to look into the possibility of addressing their conventional resources. We do not encourage any country to do or not so that. If they do so, we offer them the support and understanding of the regulatory boards to make sure it is done in a eight and environmental way. We support a number of countries and work closely with olan. We have started working with ukraine before the crisis. We are looking at expanding the program now to be able to bring about more resources there. The program that you mentioned, congressman, looks at governance of oil and gas overall. We see make sure, as new countries coming on and new producers, they are not suffering from the same trap that others have done before them. We want to make sure that those resources are made available to all people in that region. That is done with the government structure. Are you achieving that goal right now with ukraine . Unconventional, it is a very difficult task. I think that it is important to support the decision to make decisions based on science and not emotion of stop we support that in increasing production. Thank you. Thank you very much. Exports,to expedite Environmental Concerns and the Public Interest, it is my understanding that they are involved in the process. Section three requires Companies Seeking to export natural gas to obtain approval from the department of energy. Under this section, no export of natural gas will be permitted unless it is consistent with the Public Interest. Can you describe the approvals are required and what the roles of each agency are . Thank you very much. Primary things involved. There is the department of energy, which gives the authorization to export. There is the federal Energy Regulation commission. Those are two different processes. They are critical and important. What are the specific criteria are making this determination . Thank you for the question. There is a wide range of criteria. It is a case to case aces. We look at a wide range of factors that are ordered. Thats important. We look at Energy Security and availability. We look at international a fax. We look at the impact on consumers and industrial customers. That is what we have to consider for each application. Thank you. I do not know if im saying your name properly, i just want to make sure that i respect how it is pronounced. Are you aware of any provisions for benefiting u. S. Foreign policy . The state department are not involved directly in the approval process. The department of energy and the state Department Work together closely. We share information. They have our views in mind. Mr. Smith, what if any environmental determination were involved . That will be on a casebycase basis. We are compelled to look at a wide range of issues. Where the gases is coming from, and how it may impact communities. That is what we consider. What about other agencies . The Regulatory Commission also have to do and environmental analysis. They are doing and environmental process that looks at the impact of the terminals and constructing the facility itself. We are a coordinating agency. We work together. Would you describe the processest of these as very simplistic or complicated . I would say that it is complicated. We have processes that match the gravity of the decision we have to make. If somebody were to put in an application in january 2010, and then somebody puts in what looks to be a similar application in january 2014, would you say that there are variables between those two . Are always variables that change. Factors change. Each of the individual application have factors that might be different. We have to consider the comments made by the public and is transparent crisis. For example, in a hearing like this, do you imagine that in 2010, it would be ukraine, ukraine, ukraine. Is that a variable that complicated . That is something that has one dramatically stop of the things that i find fascinating is that a lot of times when we are out airings, people like to force the issue and simplify it. I got my degree in engineering. The one class that i remember the most in everything i have done since college is something called Feedback Systems. Simply put, it is a class that every engineer takes as a freshman. It explains what goes in and what comes out. It is different based on what happens in between. No Feedback System is identical to another. It is the kind of thing that department have to work at on a daily basis. The keeper simplifying it. We understand how complicated it is. When can we expect a decision on the Keystone Pipeline . I cannot answer that question. You know when the application was filed . I do not have the date in front of me. September 2008. When can we expect the decision . The process as you know is ongoing. Are you involved in that decision . My offices. The center for Energy Diplomacy, with a big title, and you are not directly involved . We have different people working on it. Part of the leadership of the bureau. It is all connected to stop were you aware that the final word was released in 2011, 3 years ago . That was about the impact on the environmental side. Art they aware of that . I believe they are. Are they aware that congress sent a bill saying make a decision and the president delayed that . Are you aware that has been resolved . I am. The people making the decision are aware that it is resolved . Are they aware that the governor of the state was involved question mark at the process continues and we look at a variety of different issues that are affecting the i can we get a decision before the year is over . I do not know. May, i think i can give you what i think is happening at the moment. In,e have new data coming such as the decision of the court in alaska, we are not suspending the process. They said that waiting any longer, this is not the Washington Times the washington post. They said, not making a decision is absurd and laughable. The washington post. Six years, and you are telling me that you do not know you can get it done by september. We are trying to make the process go as expeditiously as possible. Clients that cannot be true. You are trying to make it move as expeditiously as possible. It has been six years. Theres no way you can use any adjective you want, but expeditious is the wrong one. We have a significant volume of Public Comments that we are going through. We have a Court Decision in nebraska that was Just Announced a few weeks ago. It has to be addressed. My point is, when . Will you ever make a decision . We will make a decision. That is a step in the right direction. There are people who think there will never be a decision. Lets take this date. Will it happen before the november elections . I cannot isnt likely to happen . As i was trying to say you want to happen before those elections . Do you want me to answer do you want to happen . I would like to go through the process in the way we are required to do and address all the issues that have come before us, cleaning the recent data. You asked me this question a few weeks ago, before the Court Decision. We would have been in a different situation. Post use thegton term absurd and laughable. You are aware that . I am aware of what they said. They do not speak for me. I do not always agree with them. Will be a decision before the november elections . I cannot stick to a specific timeline. Client as Deputy Assistant secretary for Energy Diplomacy, do you want there to be a decision before the november elections . I would like to be in a position where we have done all the work we are required to do to be in a position in the timeline that we can do. If that is before the election, i hope that it is done. What i cannot say is whether we will make that timeline of stop we are trying and we have a lot of people working on this. There are a lot of factors we are looking at, including enormous volume of stop we want you to try harder than six years. Wanted a decision yesterday. We know that will not happen. American people need to know about this before an important midterm election. Is becoming increasingly that you are flooding the office with public statements. Everything stops. Point, leaders have to make decisions. With that, i recognize you. Theets return back to topic of today because hearing. That is liquefied natural gas. The crisis in ukraine is another example of how Energy Independence and National Security is closely tied. Countries like russia have shown that they are more than willing to use energy as a weapon. They have the potential to provide significant economic benefit to a security interest. We are increasing Energy Security. While this discussion of the International Aspect is important, i want to book is a little on the domestic side. What these effects can be for our domestic consumers. Smith, studies that have been commissioned have found that the export of natural gas will have a net benefit on our economy. Potentialignificant for bringing more wealth to our country and creating more american jobs. That is something we all agree with. Institute, and i am proud to have it in my diss , madet district Natural Gas Development safer, more environmentally since been able, and it has helped to make inural gas one of our wins domestic industry. Do you see their efforts in exporting more natural gas . Domesticgreater use of natural gas . Fuelse of transportation or meeting domestic demand. Thank you for the question. We have a long relationship with the gas and technology institute. That relationship has been instrumental in developing technologies that have led to this increase in our domestic production. In terms of the interaction between exports and domestic doesif the United States not import or export additional quantities, there will be greater demand on our domestic supply. On awill have impact variety of things. Exporting energy and increasing financial gas for transportation, i do not see a strong correlation between those issues. They are driven by different actors. We are seeing a greater use of natural gas in the transportation sector. Were seeing that being picked up right now. That is important. It helps free not emissions. I represent a a lot of small manufacturers. Many of the folks i talked to thatexpressed real concern increased exports will lead to increased prices. It will harm consumers. What effect will natural gas act and theon this factor prices we must pay domestically . Click think you are that question. We are concerned about consumers. Could we are concerned about consumers everywhere. We want to take into consideration of stop that is why these determinations are complicated. The department of energy has commissioned a number of studies. Done. Arest study that was it showed in most cases a modest impact. It is one that we have to take into consideration. There are benefits of exports. Job creation and greater production and other things. It is a balancing act. Concernederested and with the effects on consumers and on businesses that use natural gas to create jobs. That is an important factor. I have no concerns that foreign many factory competitors will take advantage of our Natural Gas Prices at the expense of our domestic manufacturers. I yield back. For holding this hearing. I would like to focus on the domestic side. I represent the state of georgia. Utilities are either number one, number two, or number three consumers of natural gas. Companies come out in support of x or as part of that mix. Our pipes are full. We cannot get anymore in our infrastructure. Websitet the map on the of where natural gas is coming from, and i am thinking, how are they getting that stuff out . Conversation,at and i think, what is the impact that prices have on domestic manufacturers . It is dramatically different if we have an infrastructure. We will have the equivalent of the pocket out of and down into the great state of georgia. Talk to me about what kind of infrastructure needs to be created. I suspect it will be dominated by dominated by pipelines. We must maximize our use of resources. Thank you for that question. There are a lot of big issues there. I will mention that we have an important collaboration with a southern company. Done in cooperation with southern companys. That is an important initiative. Both companiesit here and internationally. In terms of infrastructure, that is a big problem. When we look at the growth of , and the challenges weve had in europe and china, one of the big factors is in our favor. It is the fact that there was are ready it very lowcost infrastructure in place. Gas to a way to get the market. That has expanded. Nook at has been developed. New guest. There are areas where you have rapid growth. In north dakota, we have seen that. Is taxes. Direct, there is a profit mode to these facilities to make sure that we can provide to the consumers. Do you believe that profit motive exists . Certainly. Exports as being the single factor that determines whether or not it determines whether we have to take to market. When i see a lack of infrastructure, the motivation is not there. There are low gas prices, or the cooperation is not there to go through the permitting process. X that is a big question. There is a challenge when you have associated accounts being produced where oil is valuable. Where are in a situation the instruction are infrastructure would be expensive, sometimes it is difficult for companies to justify that when there might be. He option that is a market inefficiency there somewhere. Stay read the regulators are working together to make that work. Thate is ready to make play, to no benefit of the consumer. If those Market Forces require we need to build a pipeline to get those resources to consumers they would be supportive of that as well. I would not characterize that as a matter of willingness. I oversee the National Technological technology laboratory. Think we are working together with state regulators but there is a question of oversight. A lot of them are complex and marketd and involved actors. Creaking on behalf of the america theve president who created the department of energy, we support your creating a safe and sustainable structure that will change our balance of trade with the world. Thank you again for holding the hearing. I yield back. Mr. Norton. Thank you. Youre holding this hearing at an interesting time when there is a lot of talk internationally about natural gas and newer opportunities, new marketing opportunities here where we see very low prices. Even given that technology and environmental challenges. To giveion, i promise you time to answer my question. Much of it over the top of the heads of people of talk about our natural gas supplies being of aid to europe and ukraine during the crisis that ukraine is now experiencing. According to figures i have, europe gets a quarter of its gas ,rom russia and half of that that was news to me, passes through ukraine. We remember that in 2009 and early in 2009, the pipelines were shut down to ukraine. What was the reason for that again, please . It was a price dispute between ukraine had not [inaudible] down theussians shut gas. That did not have much of an effect on your because of the short duration . It had a tremendous effect. 13 days of in the dead of winter. Europe uses gas primarily for heating so the timing was not accidental. Was therese real scarcity going to europe . It lasted 20 days in total. 13 days for most of europe. The it did was drove home realization of the vulnerability that europe has in its reliance on russian gas and its need for diversification. The painit lasted 13 was shortlived. Does that mean that europe is less dependent on russia today, did it versa fight . Diversify . Closely with europe the last five years to do that. They are less reliant on russia. The thirdey passed Energy Package which required that the destination clause begun a meant that when russia exports gas into the eu, the first country of transit, lets say germany or ukraine or other eu countries could not they could not dictate you may not pass this on without my permission to another country. What it allowed it to do is a minute a gas comes and it is eu gas and can be transferred further. We talked about reversing the flows from poland to hungary from slovakia into ukraine. That would not have been possible in 2000 nine because of the regulatory structure that was in place. I working with europe to get the regulatory structure there, making some investments and getting them to make investments in infrastructure, they are less reliant today. As russia will continue to be a supplier into europe emma there is more we can do together to make sure that that reliance is diminished and quite significantly. Fors it a pipe dream americans who see themselves in anything like the near future europeng natural gas to and would that have any effect on our domestic market or do we have so much that it would ,imply mean a new market trades reduction in the investments if we were able to do that . I think that the united play inas a role to our exports are an important factor. We are not exporting and all. We do not have asked facilities. That would mean an immense effort to construct the infrastructure to do so. That is true. Some of that is in train and oun important factor. We are not exporting and all. We do not have asked facilities. The first one will come online in about 18 months from now. I would mention the gas that has been approved by the department of energy is half the amount of gas that europe imports annually today. It is an enormous amount of gas that has been approved but the Market Forces have to be there to build the facilities that ave been approved. Thank you. I will open this up or in open conversation. You had mentioned we are not exporting natural gas. Include mexico or canada or alaska . We are a net exporter already of natural gas and we do lng off the kenai peninsula. Importing create we are importing today. Youre not in that x order but we are pushed to become one. What was the timeframe on that . As our exports it is hard to predict that. I 2013 which is the prediction myt dia has, i will let colleague address that. As we get permits, they have to decisions have to be made to sell it. Words do you anticipate will be constructed . I cannot really say. Give me her best guess. You are give me your best guess. All, the terminal is being built right now. In terms of making predictions about what will happen subsequently, my experience is that i came to this job, i spent 11 years at chevron before i came to government. I worked on this one it was an lng importd alan terminal. Going to demur from giving a numeric total. Energy have seven permits out there. 24 pending. Do you think we will build 31 terminals . I do not think 31 will be billed. Built. Buil e built 15 d . I dont know. Willat has been permitted generate half the lng. These companies are big boy so they can make decisions whether or not to build. They made decisions to build import facilities and got burned. I would venture to say they would be reluctant to move too swiftly because it appears that this particular market varies dramatically from time to time in short periods of time. Beenof the gas has already permitted and we have the line. Ies coming on what are we saying here . They will not come online and try and provide that energy to europe in many respects. Is my exact point on this. It is somewhat we have had that conversation somewhat. If we know all these terminals will not be billed we are giving a competitive advantage to people that filed the permit request a couple of days before or couple of weeks or months before someone else or they may have filed and some of these folks filed the permit requests the exact same day. They will not find out for maybe two or three years later than other people on it. We are given a competitive giving a competitive advantage and other companies have to wait two or three years until doe makes the decision. I agree. All these facilities will not be built. There will be competition worldwide but we will lose worldwide if we continue to delay. We are saying to australia and other countries you go compete worldwide. We will discuss it. The other flipside of that coin is part of our resurgence, part of our economic reinvigoration is the companies are bringing manufacturing back to the United States because the cost of fuel is so expensive in china and elsewhere. And they see the net benefit. We are creating jobs in that regard. We do not want to [inaudible] 4. 25. Are companies will relocate. My conversation is how do we balance this out, how do we use the economic engine . Markets sovide new economic at a fit and geopolitical benefit. Of conversation between india and around. We can talk about ukraine but this is not just a ukraine issue. This is a worldwide issue. Is the state garment comfortable gas indias natural supplier being iran and if not, what will we do about that . Thank you. Andave been implanting implement think the iran sanctions. Let me say this. We do not believe there is any truth or likelihood to gas supplies at this time. Karen is a net importer. Iran is a net importer. We have a close and open and indiaconversation with about their Oil Purchases as well as how we would view their annexed ports. Iran does not have the gas supply or the infrastructure. They sit on the largest reserves. As a result they have not been able to build out that infrastructure. There is no infrastructure inside to deliver that. It, our viewsld are wellknown about how we feel about that as long as sanctions are in place. In a position to say we will supply your natural gas needs . Be one of the first that has contracted for natural do you have additional . Uestions mar some questions. I would like to ask our state department representative. There have been some discussions they have told me about. I have read your testimony. A lot of what we focused is exporting u. S. Sourced lng. Important Foreign Policy tool. I would like to talk to you about the benefits and existing ukraine not with u. S. Lng but world source lng. Exports are a long way away. To know while this is unfortunately true, ukraine has been in discussions with at least one u. S. Company about constructing an lng terminal and bringing world source lng in until supplies are available. This could be done in six to eight months. Get a plant built in 68 months. Turkey is causing some potential problems by denying access to the bosporus straits. What is the state departments view of this, are you aware of the world source lng . Thoughts . Our you are right. When we talk about lng as a solution, i do not think it is a comprehensive solution. We are not the only supplier. There are others. Some of the European Countries are in contact with other suppliers who are more immediate. As far as ukraine we have had this conversation for quite a facility. Uild a in a floating facility that would come online. It is a little bit different. The concern and what is blocking it as you said, turkey does not lng tankers to pass through the bosporus. Longstanding position that came up some years ago. Are you working to educate them on the fact that these things will not blow up the way they think they are . Frank and open conversations about lng trade and what it means to have access to trade through the bosporus. We do not control turkey but we turkey has been a good friend and ally to this country. Hopefully we can bring them along. In a previous hearing we have heard from the department of energy on the process for getting export facilities permitted. One of the things that i have that department of energy considers, we do not want to get too many of these because we want them to be profitable. The iso me that is that the role for the government to have so many to have or is that something that should be left up to the market . If the market has a demand for , that is notminals the governments money. Therell be investors money lost from making a bad investment. Of aou talk about how big consideration that is . Not a point of disagreement. Whys it taking so long to get these permits out . It was instructive to hear the dialogue in terms of some of the issues that we are dealing with. They are very strong views on both sides of the equation with the need to balance and job creation. There are environmental factors. I will concede some factors to you but it seems like when the government starts regulating factors, irketplace think we are getting out of line. We could have a debate about that between the sides of this i am out of time. The potential is so much there. And the delays are frustrating to me. I am out of time. Rex thank you for being here. Looking for those investments and balances to move forward quickly enough. In my state, the Energy Industry is critical to our economic success. Significant component. Ours responsible for 30 of states general fund revenue. Way we pay fory education. It is clear to me that the natural gas revolution has National Security implications. According to the International Energy agency, the u. S. Has enough natural gas to meet all of its energy needs from domestic resources by 2035. That allows us to be left reliant on the middle east and other countries for energy. I know this has been discussed already. We have a responsibility to make sure that we manage the resource and irresponsible manner. It is important to explain that our allies have access to Reliable Energy supplies. It is our understanding that ukraine faces numerous Energy Security vulnerabilities including a lack to and Energy Infrastructure which i appreciate. I would love it if you would allow elaborate. We started that conversation but i want to talk about specifically if you could elaborate on what those strategies are and give me more depth. We are working on a number of factors simultaneously. Number one is to make sure and i will separate what we are doing them a there is ukraine and the rest of europe and the baltics and southcentral Eastern Europe. In ukraine it about making sure that if there is a shut off of gas that we have reverse flow capability in hungary and poland and slovakia and to expand that to the degree possible that it takes care of the portion of ghastly import. And we help them become a more efficient and capable producer of their own gas. Impressivequite reduce your natural gas but a lot of that technology is soviet technology that they could produce more on their own. We are working with their interest in exploring their unconventional gas areas. Working with them to they will not end up in the same situation that they are in today. And to make sure that efficiency rates are there so they can do wee with last. In europe have to make sure that the infrastructure is there and the they have reforms started continue. We are working closely with them on that and to make sure that there is no Energy Islands which is a stated goal of the eu. The baltics are a good example of that. Lng is a key factor. We work with the chairman mentioned the ambassador at large for hungary who is a good friend and we worked closely together as they represent and v4 to make sure that as the southern corridor is established that we have infrastructure to supply your. There is not one answer for any of these and it is unfortunate you cannot fit it into a headline. Heres what we do with europe. Given that you have to have a broad approach so it is sustainable. I can appreciate that and recognize given that we have our own natural Gas Exploration issues in new mexico because we cannot recapture the cost. A lot of this gets unbalanced and i am supportive of moving so we have more export opportunities because that will create an environment to further that exploration and do what you said. Looking at recovery that is costeffective. What are those what of those strategies is quick to my can you pick one or two that will have an Immediate Release relief . A reverse flow capability and making sure ukraine can pay the arrears. The reverse floors are the reverse flows are important. If you have additional responses. What are you speak about Energy Efficiency or the lack thereof . Sure. We discussed before and i will finish the answer. Bigs critical, it is such a problem. Getting to if we look at the numbers and we look at the production rates and the import rates and what is in the system as made available by the regulatory change, we can expand those reverse flows quite considerably. Maybe not for this winter but in the years to come, ukraine can choose whether or not to import gas from europe from russia or to do it through other mechanisms. It is very important. As far as the efficiency rates, there is ukraine is very inefficient. The department of energy is working on proposals to work with ukraine to see what we can do to increase efficiency rates. As many many have addressed the subsidy issue where gases so cheap so people do not have incentive to conserve. Also the structures that will allow for conservation. They can do more with less or the same amount. That is a program we have done with in other countries. I think we have a number of proposals that can work for he well. About ferc and the process there which i understand is more cumbersome and takes longer. How does that interrelate with the process that you have ongoing . Rex thank you. I do not want to get too far into the details because i am not ferc. In general terms ferc has an important job of managing the environmental process of evaluating the impact of the terminal itself. A very detailed and Important Role to play in this process. Larger bigger picture, looking at the impact of exporting the molecule. They have to go through the process. We work closely with them. We share information in terms of making sure that we know where. He different objects are their processes separate from ours. I am told that there processes cumbersome and long and they have huge a huge backlog. Is that true . I would not characterize the process as cumbersome. I think it is perfectly detailed. Keep part of that decisionmaking process. Applicants of the and the permitting process now before they have a doe permit westmark we do see applicants with the process which is a significant expenditure of funds. To get to do a lot of work in terms of the engineering and incremental studies. We do see companies countries moving ahead. What happens when they get a permit and the doe process is not complete and they are in the queue . But say they have gone through the process and they have completed that but they do not have a permit. What happens . There are two types of opposition of authorization. There is the final approval. If they went through the process they could come back and with authorization. Lets say they are number 15. But they have a permit done but they are waiting on doe on this. Beforeey have to wait they get it or with a move off the queue . I do not have an answer. If they were done with the process we would have to come up with some process for dealing with the applicant who went forward. It does become the challenge that if they walk through that process, they are holding the process in place. Do you knowy to go. What the number is that have started from that process . I could probably total that up but there are a number of project. Even though they have not gotten in the queue. The ferc started with process. Seven companies have started working to get that permit process. They do not have approval yet. In that line. If they end up with one and they are waiting on the other one were back to they had this wonderful conversation about keystone. That is the difficulty. From the business side and foreign partners. When they come to talk to me there one statement is when will we get an answer . The difficulty is i cannot tell them that. I cannot say here is when the answer is coming because there is no predictable answer. It could be two weeks before the next permit comes or two years. It might be 20 years. It could be five and a half years and still discussing it. That is terrible for business and our allies. At some point we have to get some sort of predictability to know we are working with the process. How here is how many weeks it will take. Ask you have established a track record. These are sensitive and evaluations we have to do. Has established a reliable track record. The application is released i the department. The second part of that answer, someone says what is the weilability of natural gas, have authorized 9. 3 billion cubic feet a day of exports which is equal to all the lng. Isch is half of what imported from russia. There will be a question of how many of these will be built. There is some demonstrated progress we have made. Is there some amount that we will get to this cumulative . Otal we have not determined the level we will not remit. Best interest continues to be. Based on the responses and trying to evaluate that. The nearest sunday that doe commission gave a more objective look at the economic benefits of this. I understand you have letters coming in that same we do not want this or we do want this. You have an economic study that you commissioned. This is a good idea and in the best interest economically. Considered part of applications today. Conditions to change. We would not have foreseen sitting around this room talking about ukraine. Members of ukraine were dealing with russia randomly shutting off their energy. This is a predictable crisis in central europe. It may not be specific to ukraine but we knew it was coming somewhere. I would agree that we have been working on the europe hasty that with its reliance on a single source. Is ald agree that this crisis that is a surprise to some but not to others. A lot of this is where early in the process. Israel has taken care of with the first two that have come online. They have come up with an export policy. It is not how much you have produced but how much you will put on the market. 40 will go on to exports. We do not know the amount yet out of cyprus. We have one field that is proven. There will be drilling. Mozambique has doubled the size of the israeli fine but they need to get their act together and work them. There is a lot of gas from Eastern Africa going through asia. Mrs. About a global demand. There is demand that is rising as well in asia at an impressive pace and that has to be addressed create theyre not entirely at their own decisionmaking. There is a lot of Market Forces that will have to come into play. As we see what the prices are that will determine what supplies are available. That pressure is already there. As a result of our production and not importing, europe went out and renegotiated and forced the russians into renegotiation of price. They were not able to do that in the past so these dynamics are having real impact. It is difficult to make some you mentioned before the state department was helping some folks in europe with nonconventional explorations of oil and gas. You made a comment that your focusing on science, not emotion. Can you clarify . I am helping them. We recommend the decision when you make a decision on whether to explore it is important to look at the science and what is and what is not true. We have had a great experience with a regulatory system of federal and the states. That. But we would like to do is to brief them and educate and show what we have been able to learn from the experience here. We have brought in a variety of delegations. It is it ist about not a monolithic heres how to do it. Is doinghat colorado versus what new york or pennsylvania or texas, etc. That has been useful and we have been theres a larger interest in our program. There are some countries that have announced moratoriums on Shale Development and exploration. That is their decision to do it. Those conversations. Would add one thing. Traveled [indiscernible] we participated in what was called the session that was called i the iaea. Of expertsllection discussing their experience in shale gas. It is in the best interest of the u. S. To be open and transparent and share the best practices to help build a scientific basis for decisionmaking so we see that as being positive and something that we affirmatively support through our actions. Clarification, the state apartment is working with other countries that have shale to bring them to the u. S. From a interacting with some of our regulators to look at some of the science, how we can do this, and do fracking and horizontal. Rilling and take us on basically exposing them to what we are doing saying this is a good idea to take this on so you can provide your own Energy Resources in your country. I would agree with everything except for the last sentence. It is not it is not our decision. Moveey decide they want to ahead and go ahead and ask why did we will be there to support them with this program if they are interested to show them the other things you have said. You cannot force a country to say i watch me and dependent. Most countries would say if they have the opportunity not to be dependent on someone else for energy they would most likely take that. At times there are external factors and forces that come into countries that encourage them not to explore those resources. Oklahoma would be welcome to folks around the world. Our regulatory scheme in the state of oklahoma and how we regulate things as far as expiration is exemplary. I encourage you to breathe our water and read the air and see how you can do this and do a clean. 100,000 fracks. Beautiful clean air and water. When youre finished with the rest of the world i would appreciate if you would come to the u. S. And share what you have learned. Dealing with the science, not the emotion. I want to bring up the issue of crude oil exports. What were hearing from our International Partners, we argued export Refined Products around the world but we are not exporting crude. What are we hearing, we have heard quite a bit from people, they are interested in the lng. What are we hearing about crude . This is a conversation happening around the world. Are following that discussion. We are in the early stages of this discussion. I followed what has been done here on the house and senate side of discussion of what does this mean to have crude oil exports. This is a much bigger discussion. We are in the early stages of understanding what it means and listening to the views that are being expressed. There is less of a drumbeat as far as our partners. There is an interest in the topic of what the United States will do. How will this impact the oil markets and structures. We have talked about gas but we have the sane same radical. Hanges big changes from the days when opec dominated the market. And with most producing at the question of what happens to the market if the u. S. Starts exporting is one that is fascinating those whove followed the energy markets. Prices drop worldwide if we start exporting. Correct or not correct . Ask it would depend i have learned one thing in this business. Any prediction on oil prices, those who make those predictions are usually usually regret them later. All it takes is a crossborder war somewhere in the middle east and it changes everyones gas prices all the time. I do understand that. Is there unease that the u. S. Could become an exporter . They are watching our process. There has been more focus on gas because there is a statutory process with gas but not oil. This is a topic we think is of interest but we do not have a direct role in the current rigid capability of exporting if there is waivers granted. What is coming online and what we will use . That that is something the Energy Information follows closely. We follow that very closely. We have had that conversation. The length of time issue you and i talked about often. Predictability is extremely important. Not only in American Companies and production but it is important for our International Partners create i do not know how we get there. Based on what youre saying your team is working on it but there are no deadlines and no demands. My concern is they need some certainty. There are folks who come to visit my office who said the same thing emma when . Let me interject. Speediness andof it is still doing the job, the question becomes are the fees that are being charged to provide this evaluation adequate to do the job and does the office need more staff, maybe you can address that as well. Thank you. Make two points. Lngou when i talk about am followedenues, i by a market expert who puts up a chart. There is all this analysis about why is it 10 days longer between these two then these other two. Always interesting to watch because there is this theorizing about what is the back story about the extra four days here. All of these are slightly different. What we can see is we have established a fairly reliable track record. Getting these oppositions out. There has been a consistency. All the orders are not the same. It is our intention to make sure were moving forward in that manner. 9. 3 which isrized a considerable amount. The biggest uncertainty is what is going to be the reaction of the private sector that has received these authorizations. They are massive multibilliondollar investments that are complex that get built. They will be built if we think the market determines that there will be a demand for u. S. Gas. If they have the permit done are they moving in line . We have a number of applicants that have not yet received from the department that are working the process. We have not come to the position where someone has finished that process in advanced of having received a conditional authorization. I do not have an answer to that question because it is hypothetical. That will be a big issue. This becomes significant. The someone is holding permit in their hand. Of waiting ons the doe piece. I have established a process that has some predictability. Just because it has been done that way in the past does not mean it will be done that we in the future. Youre saying this is what we have done in the past. We have established a track record. This is an unprecedented activity. The department of energy when this market change in your deferred to this Energy Production revolution in your Opening Statement that has taken and they have gone to look to export terminals. There are hypothetical situations. We are busy and hard at work at making sure were doing the work that is before us. We are meeting our commitment to get this out in as timely a manner as possible. As we run into new situations this is what will have to consider. Is possible they can step out of line so we will have to reevaluate that. [inaudible] we are not inflexible to doing on thing that is based appropriate market signals. We will have more conversations with this obviously. I understand youre still saying, look at our history. There is no predictability and what happens in the future. That is really a muchneeded thing right now both in our nation and develop mend of infrastructure, if any of these facilities will be built we have to get pipelines to them. It is years of construction and lots of capital. It is our International Partners saying we are going to get it and here is the day. All those things are pending making a decision and people knowing what will happen. Not to say that you have the whole world in your hands but there are a lot of folks around the world that are waiting on decisions that if we cannot get predictability, there are a lot of folks who are waiting and a lot of Economic Development in the United States that is waiting to be released pending a decision from your office. Some level of predictability it would help our economy and help our geopolitical situation as well. Quick understood. I would like to close by thanking our witnesses who have presented some very persuasive arguments for why this is global and nature and not something that the u. S. In and of itself is going to fix. But you are your admonition that there should be reduced ability is worthy of us reviewing. As beingook at ferc part of that and they are absent from this discussion. They are a key component as well. Thank you for your good work. And for your service to our country. Thank you. This hearing is adjourned. [captioning performed by national captioning institute] [captions Copyright National cable satellite corp. 2014] tomorrow, the full House Oversight committee will be holding a hearing on the benghazi attacks and how they relate to the u. S. Military intervention that helped oust libyan leader colonel qaddafi. Life coverage begins at 9 a. M. Eastern on cspan3. You can also join the conversation on facebook and twitter. Tonight, former president bill clinton speaks at georgetown university. Vice President Biden talks about and ukraine. Then senator bob corker on ukraine. A house hearing on exporting natural gas to europe. On the next washington ofrnal, the effotrts republicans to have federal lands transferred to state control. And a discussion of the economy and job creation. Live at 7 a. M. Eastern. Share your thoughts on the program by calling in and your comments on facebook and footer. Twitter. Theres a lot more trauma and peoples lives, a lot more disconnection, a lot more families are broken that should not be broken. I am not talking about the worst terrible means. Families that cannot hold because of the stress of life, not holding a job, living in class,rld, that working upanddown world can put a lot of strain on people, that connection they should have. And even the addictions that are so rampant now because it is so easy to get drugs and alcohol. It was happening for years ago but not like today. This is more of the american story than people are may willing to admit. Former gang member and political candidate and sandberg rodriguez taking your questions sunday on booktv. A collection of interviews with some of the nations top storytellers. The normal trajectory of escape stories or concentration camp stories is you have someone who comes from a sophisticated civilized family. They are taken to the cap. All their other relatives are killed. Any have to behave in inhuman way to survive. Then they come out and they tell their story about a descent into hell and survival. Shins story is different. He was born in hell. And it was home. 41 unique voices. Cspan, sundays at 8 00 p. M. Now at your favorite bookseller. Former president bill clinton spoke about how the policy it georgetown university. The second of four lectures he is giving on the topic of Public Service. He graduated from the school of Foreign Service in 1968. This is two hours. [applause] thank you very much. Thank you. Thank you very much. It is great to be back. Hillary forank coming with me today. It has been a long time. [applause] she has not had to sit through one of these in ages. [laughter] a lot of mye are former classmates and friends who are here. I thank them for coming. My chief mention that of staff is here. She is a georgetown alumna. She has been pushing for me to put this on the schedule. Thank you for being here. To remind me that if i had been a catholic, i could have been a jesuit. [laughter] i can say this. I was americas happiest protestant when the new pope took his holy office and i had and thrilled by that and i think all the jesuits of the world should be very proud of him. As the president said a year ago today, the state, i gave the first in a series of lectures on composing a life in Public Service weather in elected office or government job at any level or as a private citizen seeking to advance the public good. I tried to organize these talks around what i said i believe to be the four essential elements required for effective service. Deep interest in people, especially those who are different than you are. Purpose for the service, and an idea about how it can throughadvanced government or the private sector or the nongovernmental sector or all three working together. How before you can adventure service, you had to determine, develop, and then implement the policies that will be the instrument of your objective. How do you do that . One of the problems with it . Fourth, how do you succeed . How do you turn your good ,ntentions into real changes and whether you have to win an election or not, theres always politics involved in that. I decided after thinking about this, and particularly after the last talk when i spoke about how