If there is one public oil and energy sage that the markets like to listen to, you need to look no further than T. Boone Pickens. He’s been a bull all the way up. In fact, last year he called for "$80 oil before he’s 80" and after that hurdle was reached he laid out the case for $100 oil.
This morning he was just on CNBC with his new outlook for oil and energy prices. This morning Pickens said he thinks oil is going to back off maybe $10 to $15 in Q2 but prices will come back up in the second half of the year.
He also noted that natural gas was too high and when asked if he was short natural gas he responded, "Well, Yeah." He did say that natural gas will become a transportation fuel, and you can see his Clean Energy Fuels Corp. (NASDAQ: CLNE) that is positioned to run natural gas for autos. He also noted about the need to clean up coal. He also noted that wind and solar are going to have to be used, and we need to get on board with alternative energy. While Pickens is calling for a pullback here, he said that if we do not get on the alternative energy bandwagon and if we don’t have a global recession we could be sitting on $150 oil in two-years.
This morning, one of the ministers in Qatar also noted that the recent run up to $100 in oil is speculation from traders. The Oil Services HOOLDRs (AMEX: OIH) are still up 0.4% at $176.77 in pre-market trading.
Jon C. Ogg
February 21, 2008