These notes are taken from the CNBC show which took place in Texas the 19th of May 2008. Time frame was from 0545-0745 CST. The main purpose was to hear what Boone Pickens has to say. While waiting for Boone to arrive they also interviewed
Dr. Hirschi.
For oil the thought has been that we are at “peak oil”, and the prices should start coming down. It was said that we hit peak oil in 2004 and it is at a plateau. Inflation is also causing the high prices. “It’s almost a bubble”. The U.S. should start drilling off shore. Oil could be between $8-$12 dollars a gallon. Dr. Hirschi says oil could be “over $170.00 per barrel.
It was said by Becky Quick that “Boone Pickens said that oil will be $80 a barrel before his 80th birthday”. Well today the price per barrel in $127.10 and Boone is celebrating his birthday at the end on the week.
A little talk about the portfolio challenge; looking at solar power, solar is down 11% year to date. The solar stocks that are widely held in the contest are solarfun, first solar, and evergreen
Ross Perot Jr. was also on the show expressing his large position of natural gas. He stated that oil & gas are a big factor in Texas. It was also stated that N. Iraq is the last big “oil patch”: that’s left in this world [I would like to add known].
Perot Jr. also stated that Texas has a large Technology Service featuring Perot Systems and EDS. AND as you get bigger the more problems will occur.
ENTER BOONE PICKENS
Three sources of energy
- crude
- Natural Gas NG)
- Wind
Currently oil is at $127.10 per barrel.
We are getting 85 million barrels per day
The max needed is 87 million barrels per day
This also includes Russia giving.
Bottom line: We are spending over $600 Billion dollars per year. For the U.S. only natural gas (NG) can compete.
Boone Pickens says that NG and solar could reduce foreign oil imports by 40%. Boone says that companies are finding more NG than can be mined. Also, 20% more can be saved by using wind power (figuring generating 200,000 MW).
We also need to get into more solar.
For the price of oil Boone is thinking of $150 a barrel.
Boone also states that he doesn’t think that “speculators” are causing the ramp up of oil.
“85 million barrels a day is all we can make” says Boone. At this time he is long on NG & oil.
Talk then went to “demand destruction”. “The ones who have oil pay less than the once who don’t”. For the slow down in oil, China, who trails the US for demanding oil “could shut down”. This could be the beginning of a global recession.
For the solar sans in Canada it cost many dollars for welder
With wind and solar the U.S. can cut imports by 40%
Boone concludes stating that the Politian’s are not listening to the energy concerns of the U.S. He predicts this to be a big issue before the election. He also doesn’t think the U.S. needs more refineries because currently they are operating at “82 percent capacity”.
