Pickens Predicts $100 a Barrel Oil Price Next Year
By Daniel Whitten
Bloomberg
November 12, 2009
Nov. 12 (Bloomberg) -- The price of oil will rise to $100 a barrel next year if economic growth continues, billionaire investor T. Boone Pickens said.
Rising demand in China and India, combined with “maxed- out” world oil production at 85 million barrels a day, contribute to increasing oil prices, Pickens said today at a conference held by Bloomberg Ventures, a unit of Bloomberg LP, parent of Bloomberg News. Natural gas is ”on its back” and the price will rise, he said.
With oil demand projected at 86 million barrels a day next year, “you’re going to be back to $100 per barrel is what’s going to happen,” said Pickens, who runs BP Capital LLC. He later said reaching the $100 mark depends on continued improvements in the economy.
Pickens promoted his proposal to convert the 7 million diesel trucks on U.S. highways to run on natural gas. Oil will reach $300 a barrel in a decade unless such changes are made, he said. He also wants to increase the use of wind power by more than 10-fold.
Under legislation Pickens is promoting, $12,500 in tax incentives would go to buyers of automobiles fueled by natural gas. Heavier vehicles would receive as much as $64,000.
Pickens said he would like the bill to mandate that new trucks be powered by domestic fuels. He predicted natural gas would rise to $6 per million British thermal units this year.
“Natural gas is on its back,” he said. “It’s cheap, but the only place it can go is up.”
Crude oil for December delivery fell $2.41, or 3 percent, to $76.87 a barrel at 11:27 a.m. on the New York Mercantile Exchange. Prices are up 73 percent this year. Natural gas has fallen 21 percent this year. Gas for December delivery fell 4.9 cents, or 1.1 percent, to $4.454 per million BTUs at 12:47 p.m. on the New York Mercantile Exchange.
Pickens said his equity fund has climbed 15.8 percent this year and his commodity fund has jumped 91 percent. He said he was successful because ”we know what the market is.”
He added that when oil prices collapsed last year he felt foolish because he “saw it coming” and “missed it by a week.” BP Capital had more than $4 billion at the start of 2008 before the original Energy Fund fell 98 percent and the first Energy Equity Fund lost 64 percent, according to company marketing materials.
Bloomberg
November 12, 2009
Nov. 12 (Bloomberg) -- The price of oil will rise to $100 a barrel next year if economic growth continues, billionaire investor T. Boone Pickens said.
Rising demand in China and India, combined with “maxed- out” world oil production at 85 million barrels a day, contribute to increasing oil prices, Pickens said today at a conference held by Bloomberg Ventures, a unit of Bloomberg LP, parent of Bloomberg News. Natural gas is ”on its back” and the price will rise, he said.
With oil demand projected at 86 million barrels a day next year, “you’re going to be back to $100 per barrel is what’s going to happen,” said Pickens, who runs BP Capital LLC. He later said reaching the $100 mark depends on continued improvements in the economy.
Pickens promoted his proposal to convert the 7 million diesel trucks on U.S. highways to run on natural gas. Oil will reach $300 a barrel in a decade unless such changes are made, he said. He also wants to increase the use of wind power by more than 10-fold.
Under legislation Pickens is promoting, $12,500 in tax incentives would go to buyers of automobiles fueled by natural gas. Heavier vehicles would receive as much as $64,000.
Pickens said he would like the bill to mandate that new trucks be powered by domestic fuels. He predicted natural gas would rise to $6 per million British thermal units this year.
“Natural gas is on its back,” he said. “It’s cheap, but the only place it can go is up.”
Crude oil for December delivery fell $2.41, or 3 percent, to $76.87 a barrel at 11:27 a.m. on the New York Mercantile Exchange. Prices are up 73 percent this year. Natural gas has fallen 21 percent this year. Gas for December delivery fell 4.9 cents, or 1.1 percent, to $4.454 per million BTUs at 12:47 p.m. on the New York Mercantile Exchange.
Pickens said his equity fund has climbed 15.8 percent this year and his commodity fund has jumped 91 percent. He said he was successful because ”we know what the market is.”
He added that when oil prices collapsed last year he felt foolish because he “saw it coming” and “missed it by a week.” BP Capital had more than $4 billion at the start of 2008 before the original Energy Fund fell 98 percent and the first Energy Equity Fund lost 64 percent, according to company marketing materials.
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