T. Boone Pickens was just a guest on CNBC this morning, but this was after he featured his alternative energy company called Clean Energy Fuels Corp. (NASDAQ:CLNE). This stock is now up over 10% on the day after he rang the opening bell for NASDAQ.
As far as overall oil and energy, T. Boone Pickens is still very bullish. He is still not going with formal targets but noted that oil production is now 85M barrels per day and there is a 88M production goal for Q4, “so production is going up.” He also noted that as some fear Oil could go to $100, but he doesn’t think that will happen this year and he thinks that would take a geopolitical event. T. Boone Pickens created waves and a lot of scurrying when he predicted $80 oil before he’s 80, and that easily came to pass.
Recently we gave an extreme case that some outsiders think could yield oil at $200 per barrel, although keep in mind this is over quite a long time frame. Goldman Sachs also just lifted its theoretical oil “Super-Spike” band to a higher level of $135 per barrel and even $4.50 per gallon at the pump. You can also see their comments on individual stocks in the sector here.
Interestingly enough, on the very near term he thinks we should get a pullback here to maybe $78 per barrel. He still thinks the overall trend is up as demand is up and production is relatively flat. He noted that there will be less demand in second quarter of 2008, but supply is not going to get better. As far as where price kills demand, he won’t predict because it hasn’t happened yet at each milestone crossed.
He also noted that America is going green, and his company Clean Energy Fuels Corp. (NASDAQ:CLNE) is a green company that turns compressed and liquefied natural gas to run automobiles and the time has come for this. He noted that this is domestic, cheap, and clean and that it will happen.
As far as his stance on on gasification of coal, all kinds of alternative energy in coal and natural gas are there with oil at $82.00, but it all depends upon costs.
If you are interested in what goes on the Business World of “Global Warming” or “Climate Change,” we now run a daily piece each afternoon on the business developments with public companies titled “The Business Day In Global Warming.” We do not cover this under any political bend. Every major company out there seems
Jon C. Ogg
September 19, 2007
Jon C. Ogg produces the 24/7 Wall St., LLC Special Situation Investing Newsletter; he does not own securities in the companies he covers.
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