One of the Drupal sites that we got to work with had this issue. The original server that the site was hosted on did not have any issue. But the issue showed up when it was transferred over to a new server.
This usually happens when you are missing the php5-curl library.
On Ubuntu, just run the following commands in your terminal to fix this:
sudo apt-get install php5-curl
sudo /etc/init.d/apache2 restart
If not on Ubuntu, check for the correct alternative to 'apt-get' for your distribution.