T. Boone Pickens: Energy Equities Reflect $75 Oil Rather Than $100 Oil

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CNBC just hosted another interview with oil magnate and billionaire T. Boone Pickens today after the close.   With recent prices of oil having been near $120 at the high, Pickens still thinks $125.00 is the oil target based on supply and demand.  With a constant of 85 million barrels per day, the prices have to go up.  As far his position he is long oil and natural gas, and he said those old short positions were covered long ago.

As far what are the answers are to price and depending upon foreign oil, Pickens said that a combination of coal, natural gas, wind, solar, biofuels and hydroelectric is the answer.  He also said we need to figure out how to move these around to fix the problem.

He thinks energy equities are not reflecting $100 oil, he thinks energy stock prices are reflecting $70 or $75 oil.  If Pickens has said this about oil and energy stocks before, it’s been a while since he noted the price of energy specific stocks relative to energy prices.

Of these, natural gas is his first choice and wind is next for power generation.  He also said coal is our number one resource, but we need to get the coal cleaner.

As far as whether or not investors have missed the big move, Pickens said investors haven’t missed the big move… particularly in natural gas.

Jon C. Ogg
April 29, 2008