T. Boone Pickens Oil Targets For 2009 and 2010 (CLNE)

Today marked the one-year anniversary of the launch of The Pickens Plan.  Oil magnate T. Boone Pickens was giving a large update and gave his oil targets for 2009 and 2010 in a CNBC interview early this morning.  He is still touting natural gas as the replacement for dependence upon foreign oil as a bridge until batteries and other technologies can be perfected. In the climate bill and in Washington they have now included the smart grid and renewables, and he is looking for natural gas to replace the gasoline or diesel in the hundreds of thousands of big trucks on the roads.  While Pickens does not normally name his own play in natural gas for vehicles, the Pickens play is Clean Energy Fuels Corp. (NASDAQ: CLNE).

On wind, there is a change now that natural gas is so low and it has driven the cost effectiveness down.  Pickens is calling for $75.00 oil by the end of this year.  He is sticking with an earlier target of $80 to $85 per barrel as an average price for 2010.

With oil trading under $65 this morning, this might sound bullish for oil and energy prices.  But it is far less bullish and far less aggressive than what Pickens has been known for.

Jon C. Ogg
July 7, 2009