Pickens Calls For Much Higher Oil

T. Boone Pickens is no stranger when it comes to high oil price predictions.  He used to say “$80 before I am 80” and that turned out to be correct and then some as the oil and energy bubble from 2007 to 2008 rose endlessly before petering out just under the $150/barrel mark.

On CNBC this morning, T. Boone Pickens issued his newest decree on higher oil prices. Keep in mind that Pickens was just calling for oil to possibly hit $148 per barrel again just earlier this week after criticising the Obama administration for attacking the oil and gas sector with higher taxes and with more regulations.  His warning is that the Saudis cannot add enough capacity amid sanctions against Iran without going into their storage as opposed to just more production.

Pickens clarified this morning that his prior view is that Brent North Sea Crude could hit $148 per barrel but that would not be the case on West Texas Intermediate Crude.  His view is that Brent is the global market price now.  Still, America is producing far less than it consumes.  Pickens thinks that natural gas prices have gotten so low that the fuel could easily be used as an alternative.  Nat-Gas is barely $2 here but it is much more expensive elsewhere.

JON C. OGG