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Well, billionaire oilman T. Boone Pickens was "bullish on oil, before being an oil bull was cool." And, despite the bursting of the leverage-influenced oil bubble, during which oil plunged from $147 to below $40 in less than a year, Boone-Pickens is still bullish on oil, long-term.
Sees $75 oil in 2009
Pickens sees $75 oil by the end of 2009, Reuters reported, and $200-300 oil in 10 years. Oil Friday morning rose 89 cents to $44.50 per barrel. Oil hit a record high of $147.27 per barrel in July 2008.
"If you don't think we'll see $200 to $300 oil in 10 years, you are kidding yourself," Pickens told marketwatch.com Friday. "You think OPEC is a free market? We have no control over what is going on."
Pickens also reiterated that the nation needs to free itself from imported oil via renewable energy and alternate fuel sources, which he is involved with in business ventures, and via increased energy efficiency and conservation. The United States currently imports almost 70% of its oil, up from about 25% in 1970.
Oil/Economic Analysis: Many economists would view Pickens' prediction of $75 oil by the end of 2009 as a good thing: That high a price would imply decent demand, which would suggest economic growth is occurring, at least globally, if not in the United States. Given current employment, commerce, and GDP trends, that would be decidedly good news.
Further, Pickens is on-the-mark regarding energy policy in the United States: The U.S. must move full-speed-ahead to rid itself of imported oil, then oil entirely, by conservation, increased efficiency, and alternate fuels. Foreign oil represents an enormous transfer of U.S. wealth, $200-600 billion annually, to foreign governments/economies, it complicates (at minimum) U.S. foreign policy, and oil is a fossil fuel that must be phased out, due to global warming. The Obama administration is off to a good start regarding an energy policy: Congress and the president need to implement a practical, innovative policy as soon as possible to put the nation on the energy independence track.
Do you think T. Boone Pickens' prediction regarding oil's price is wrong? What will the price of oil be in 10 years, in your opinion? Let us know what you think.
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Reader Comments (Page 1 of 1)
3-11-2009 @ 12:44PM
Seth said...
Well, of course he is bullish. His whole industry that invests in (wind and natural gas) bank on that fact. If oil stays below forty all of his recent investments will be worth crap. So he should be very hopefully that the price of oil goes up in the next few years.
3-06-2009 @ 12:41PM
Beltway Greg said...
I'll bet T. Boone a T-Bone at one of them there Texas saloons that features the 96 ounce butt cut that we just ain't a gonna see no $200-300 based on the actions of OPEC alone. Them boys would use a porcupine as an easy chair. Perhaps if they elect 1-800-Joe-for-oil as their chairperson they would be able to agree not to cheat on one another. Hell, they cheat more than a third wife sans the prenup. If you factor in inflation and the coming devaluation of the dollar then we might see $100 before the end of the year. But $200, son that's further away then the edge of Ted Turner's ranch. Check out them long-term charts, yes oil is way oversold and there's an easy 20% for the bold, but once it drops it drops. Maybe this time it's different? Why, cause T. Boone said so that's why.
3-07-2009 @ 12:51AM
Iridium said...
T. Boone is the definition of a F'in idiot.
The man wants to push his energy plan in order to profit off it immensly. There is no other reason for it. I watched the man on TV and thought, my god this man is a billionare. It shows that the United States rewards stupidity beyond all else.
Oil will hit $200 if we allow traders to drive the price up regardless of fundamentals. There is no real situation that could support $200 oil in the next 100 years or more. OPEC can not control the price of oil without willing speculators that will play along to drive the price up to line thier pockets.
I say again, for every dollar oil goes above $50 ten oil traders should be killed. We are fighting a war will true casualties. We are destroying the lives of millions to line the pockets of a few. There is no other action that will produce results. We have entered into French Revolution territory. The government won't act. The watchdogs won't act.