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Pickens: Oil is Headed to $300 in 10 Years

Written By Brian Hicks

Posted July 22, 2008





In case you haven’t heard, T. Boone Pickens is a worried man when comes it comes to the energy situation these days. America, according the legendary oilman, is in a heap of trouble-and it’s only going to get worse.

And with the election season looming, he is quickly becoming the energy equivalent of Ross Perot, complete with charts, graphs and white board presentations delivered with a familiar Texas drawl.

But unlike that other famous Texas billionaire whose was long on talk and short on action, Pickens has put his money where his mouth is and has a plan to fix it all.

In fact, he even calls it the PickensPlan, and he has budgeted $58 million of his own to market the idea to an America caught up in the grips of a second energy crisis.

That put the Texas-sized salesman up on Capitol Hill today to brief members of Congress on his plan to dramatically reduce oil imports.

Without it, he said oil could go as high as $300 a barrel by 2018.

Here’s the skinny on Boone’s sales call to D.C.

From Reuters by Timothy Gardner entitled: Pickens sees $300 oil unless U.S. cuts crude imports

Oil prices will hit $300 a barrel in 10 years if the United States fails to reduce its dependence on foreign imports, billionaire oil investor T. Boone Pickens told U.S. lawmakers on Tuesday.

The United States imports nearly 70 percent of its oil and Pickens said the world’s top petroleum-consuming nation would import 80 percent in a decade if it does not aggressively tap its own natural gas and renewable resources.

“If we continue to drift, oil will hit $300 a barrel in 10 years,” Pickens testified at a hearing of the U.S. Senate Homeland Security and Governmental Affairs Committee.

He testified as the Senate planned to debate energy legislation amid calls for more oil drilling to help lower oil prices which hit a record this month of over $147 a barrel.

Pickens has been touring the country pushing a plan under which domestic natural gas supplies would be used to power cars instead of electrical power plants. The federal government and private investors would build a massive wind farm system in the middle of the country from Mexico to Canada to provide electricity.

Pickens, who heads the hedge fund BP Capital, stands to benefit from such a program. He’s building a 4,000 megawatt, $10 billion wind farm in northern Texas that should start generating power in 2011.

Industry group the American Wind Energy Association (AWEA) has said the Pickens plan could work if the government renews the production tax credit for renewable energy, preferably for longer than a year or two.

Growth in U.S. wind power has been dramatic. Preliminary figures show the United States in July may have surpassed Germany as the world’s largest generator of wind power, AWEA said.

“We’re on track to doing that, if it hasn’t happened already,” said an AWEA spokeswoman.

Wind could generate 20 percent of U.S. electricity by 2030, only slightly less than natural gas currently fires, the Department of Energy said in a report.”

Of course, it is going to take a lot more than windmills to pull this off, but at least Boone is a man with a plan.

That put him at least 10 steps ahead of the fine folks in Congress that he went to enlighten.