Tuesday, May 20, 2008

Pickens Wants to Move It, Move It to Natural Gas.

Sorry, I just couldn't resist.

CNBC: Pickens: Oil Going to $150, So Move to Gas.


"Eighty-five million barrels of oil a day is all the world can produce, and the demand is 87 million," he said. "It's just that simple. It doesn't have anything to do with the value of the dollar."

He expects the price of a barrel of oil to reach $150 this year, and he insists speculation has nothing to do with it.


Pickens says natural gas is the only American resource that can reduce oil imports. He claims the effective use of natural gas could reduce oil imports by 40 percent. He dismissed ethanol as an alternative. He added that what reduced demand there has been in the United States has immediately been picked up by China.

"The only way I see that oil doesn't continue to rise [is] if we had a global recession." he said. "That will happen at some point, but I don't see the Chinese stumbling until after the Olympics."