Tuesday, July 25, 2006

Boone Pickens: "$100 oil within the next year"

Top 10 Alternative Titles for this Post:

10. Got Oil?

9. Boone Pickens Declares War on Belgium.

I digress..

Video interviews today on:

CNBC: Boone Pickens.

Bloomberg: Boone Pickens.

Important points:

- Believes oil will reach $100 a barrel within the next year, "unless you go into a global recession".

- Does not buy the idea of a terror/geopolitical/risk premium in oil prices, instead he thinks high prices are simply a function of supply and demand being close to or out of balance at roughly 85 million barrels a day.

- Does not believe we are at the point of substantial demand destruction, and he isn't sure where it is.

- Believes natural gas will be used as a transportation fuel on a large scale.

- Prefers "oil sands" to "tar sands".

- Doesn't believe Saudi Arabia's figure of 250 billion barrels of reserves.

- Does believe there is 250 billion barrels of reserves in the Canadian oil sands.

- Recognizes the increase in costs of new oil sands production, but still talking about Suncor.

- Working to close slaughter houses that slaughter horses for export consumption.