*Nobody can come up with better names than they do in the American South.You have to love this quote: "Pickens originally backed Rudy Giuliani for president. Asked what happened to his campaign, Pickens said: "My guy rode up in front of the grandstand and fell off his horse. I've never seen anything come and go as fast as Rudy's campaign."
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Pickens: U.S. Faces Disaster over Oil Wealth Exodus Money News
Thursday, Feb. 21, 2008
One of America's most influential businessmen, legendary oilman T. Boone Pickens, says the nation's wealth is being plundered by oil exporters and the U.S. faces a potential financial disaster if our energy policy is not reformed.
Pickens, who correctly predicted that oil would top $100 a barrel, also says he expects oil prices to drop sharply in the near term.
Appearing on CNBC's "Squawk Box" Thursday morning, Pickens pointed out that the U.S. is currently sending half a trillion dollars out of the country each year to buy oil, in some cases from people who "are our enemies."
Said Pickens, "You take 10 years and you've got $5 trillion ... That's more than $1 billion a day.
"We can't stand that. Wealth is moving out of the country...
"Not one presidential candidate has addressed this … The candidates have to get up to speed on what energy cost is doing to our country." Pickens even turned on his own industry, oil, and called for an increase in alternative energy sources.
"If we do not get on the alternative energy bandwagon and if we don't have a global recession, we could be sitting on $150 oil in two years," he told CNBC.
Pickens touched on a number of other points:
- Although he was originally against ethanol, Pickens now favors an increase in ethanol production, saying, "I'd rather have ethanol, and recirculate the money in the country, than to have it go out the back door on us."
- "I think oil is going to back off," he said. "The weakest quarter is the second quarter. We'll drop $10 or $15 a barrel in the second quarter. I think we'll be back above $100 in the second half of the year."
- Natural gas prices are too high and they can be expected to drop, according to Pickens, who is shorting both oil and gas.
- Natural gas will become a "serious transportation fuel," Pickens predicted, adding: "We've got to get coal cleaned up and we've got to get natural gas into the transportation mix."
- The U.S. should increase its use of solar and wind to meet the expected rise in electricity demand, locating those alternative energy sources in the Great Plains and "middle of the country," Pickens urged.
- Barack Obama says the U.S. "should do bio diesel," said Pickens, "but that won't solve any problems."
- He also said about Obama: "He talks about change. I haven't seen yet what he's going to change."
- A windfall profit tax on U.S. oil companies would be "ridiculous," Pickens charged, saying: "You've got to keep the money in the industry."
- Pickens originally backed Rudy Giuliani for president. Asked what happened to his campaign, Pickens said: "My guy rode up in front of the grandstand and fell off his horse. I've never seen anything come and go as fast as Rudy's campaign.
Pickens told CNBC he now backs John McCain for president. Asked if the Republicans can win the White House this year, he said simply: "Sure."
© NewsMax 2008. All rights reserved.
The run up of crude prices has highlighted an aspect of the burden placed on US consumers: Taxation of energy by all levels of government. We have a community-owned (read government run) electrical generating facility where I live. As you would expect, our elected officials have chosen to hide taxes under the rubric of electrical rates which are as much as 40% higher than industry averages. The problem historically is that too many voters in my area have not paid their "fair share" of taxes otherwise and have had little interest in changing the system. Of course, a small cadre of "elitist" activists have blocked reform efforts.
ReplyDeleteOne recent effort to invest public funds in a privately run, coal-powered regional generating facility were defeated by the anti-coal coalitions.
ReplyDeleteGiven that the US has more coal reserves than anywhere else in the world, it is especially troubling that coal has been so demonized as a viable resource.
Of course, a small cadre of "elitist" activists have blocked reform efforts.
ReplyDeleteSame story out here. We have a good proposal going for a new nuclear power plant in south Idaho, and the 'activists' are starting to fight against it now. I think we should pass some legislation declaring we are in an emergency situation and streamline the process to get around all these roadblocks that people try to put up. In our case the effort is being backed by a doctor and some of his friends. They are tryig to put the issue up for a vote of the people. I don't know the legalities of all their moves. I don't know if the people can just stop it by a vote, if they have that power to do so.
No matter what we try to do, someone is standing in the way.
ReplyDeleteHow do we separate the wheat from the chaff; the information from the disinformation?
I've posted a recent IBD editorial about the environmental and economic costs of bio-fuels.
Can't drill in Anwar or off some of the coasts. Can't do coal. Can't do nuclear. I have even heard or read people complain about wind, the propellars cutting up birds,etc. Disheartening.
ReplyDeleteOff topic but too outrageous to let pass: I just found out that an illegal immigrant with a fake drivers license was driving the school bus in which four students died this week.
ReplyDeleteThat school district is going to get sued.
ReplyDeleteA couple of years ago, we had a school bus driver run over a little girl as the bus was starting out. The girl was small enough that standing right in front of the bus she couldn't be seen. In this case I think it was finally ruled a really unfortunate accident. The lady driver was really shattered by the event The little girl died..
ReplyDelete"..the nation's wealth is being plundered by oil exporters and the U.S. faces a potential financial disaster if our energy policy is not reformed.. Pickens pointed out that the U.S. is currently sending half a trillion dollars out of the country each year to buy oil,.."
ReplyDeleteI've got no bone to pick with Mr Pickens.
But I do think we're on the cusp of revolutionary innovation in energy supply, particularly in Solar.
ReplyDeleteWe better be on the cusp of a solar breakthrough because this week I heard a report that current photo voltaic technology is a bad investment. Anybody with half a mind and a calculator could have figured that out for themselves...
ReplyDeleteScientific American Magazine
ReplyDeleteJanuary, 2008
A Solar Grand Plan
http://www.sciam.com/article.cfm?id=a-solar-grand-plan
"..this week I heard a report that current photo voltaic technology is a bad investment.."
ReplyDeleteWhere did you read this and in what context?
It may have been in a podcast, I'll see if I can find it.
ReplyDeleteWhit,
ReplyDeleteIf you google "nano solar", I think you'll find that there might be something there to get excited about.
Energy Independence Now!
ReplyDeleteNo more Oil Wars!
Stop funding the terrorists!
Drill in Anwar.
Build more nuclear power plants
Use More coal.
Use more natural gas
Turn trash into energy
Double the efficiency of windmills and solar cells.
If France can do nuclear power so can we.
If Brazil can do biomass/ethanol power so can we.
If Australia can do LNG power so can we.
Domestically produced energy will end recession and spur the economy.
poetryman knows the deal
ReplyDeleteBut it's all offensive, to someone or another
Can't be having that.