T. Boone Pickens Trades Oil With Both McCain & Obama

On Sunday, T. Boone Pickens issued a press release stating that he had met with Senator Obama in Reno, Nevada to discuss his energy plans.  This follows the statement he issued Friday stating that he had met with Senator McCain in Aspen, Colorado to discuss his energy plans. 

Pickens calls this non-partisan in both meetings and stressed that the Pickens movement hopes to get legislation passed in the first 100 days of the next administration.

As far as the Obama meeting Pickens stated (among other things): "Ishared my feeling of encouragement at the Senator’s willingness tospeak out on energy issues recently in the campaign, but told him thatthere is still much more that needs to be done……. It would beinappropriate for me to speak for Senator Obama. I have a real sense,however, that he was very engaged. He understands the issues and isinterested and excited by the work we are doing to educate and involvethe people of this great nation."  FULL COMMENTS

As far as the McCain meeting Pickens stated (among other things):"While I can not speak for the Senator, my sense is that he wasinterested and encouraged by the work we are doing and recognizes thatcitizen education and citizen involvement is key to changing course andactually developing a real energy policy with teeth that will help thiscountry from our current disastrous path.”  FULL COMMENTS

What we don’t get a sense of is what questions were asked by each candidate, what their own plans are that may change as a result of the meetings, and more.  It sounds more like these are just mere reports that meetings came and went, and so far neither candidate has anything that new to add as a result of the meeting.  That is likely to be expected, and most candidate points are very general in nature anyhow.

There are many who are poking holes in the Pickens Plan, although froman industry watcher’s eyes and from an American’s eyes it is at least astart.  Pickens is already vastly wealthy, he’s 80, and he is passingdown much of his estate to charity.  Yes he will ultimately make moneyfrom some of these initiatives.  On some he won’t.

For that matter, we outlined how he may have lost as much as $2 Billionin the last large downdraft for oil.  His plan has critics but also hasmuch common sense.  But his hedge fund clients might not exactly be allthat happy about the returns they have made over the last 45 days whilePickens has been promoting the plan.  The good news is that investorshave made vast fortunes betting with him.  The bad news is thatinvestors have very short term memory and very few tolerate lossesgoing on and on.

Jon C. Ogg
August 18, 2008