CNBC’s Maria Bartoromo interviewed oil magnate and billionaire T. Boone Pickens late this afternoon. Pickens noted that there is likely to be a demand increase if oil goes under $100, bue he doesn’t expect it to go too far under that level. Four dollar per gallon gas killed demand before. As far as an energy policy, there has been no energy plan for 40 years and cheap oil discouraged the country from ever developing one. Without a plan we’ll end up importing more oil.
He wants to get wind and solar started on the renewable side. The windpart is easy and can be developed. The only fuel to replace foreignoil is natural gas. He also wants to open the outer continentalshelf for drilling. As far as drilling in ANWAR and off Florida, he’s for it butsaid you have to consider the issue as we import 12 million barrels ofoil per day. He also said you cannot drive this problem away bydrilling alone.
Pickens said 30% of America’s fuel is for movinggoods in trucks. He wants the Feds to say all new trucks will benatural gas and wants incentives for the truckers to switch. Hebelieves the natural gas infrastructure can go into place rapidlyas the existing trucks get retired. He also noted we only have 142,000 cars running natural gas out of the 8 million in the world. Pickens’ Clean Energy Fuels Corp. (NASDAQ: CLNE) is the directbeneficiary if that plan takes off in natural gas, and as oil is downtoday its stock is down more than 6% at $18.15 right before the close.
Unfortunately, Pickens stating his opinion that oil would not fall too far was the only thing remotely new in today’s comments.
Jon C. Ogg
September 9, 2008
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