Boone Pickens Speaks Out: The U.S. in Energy Crisis

June 12, 2008 – Vol.13 No.12

Boone Pickens Speaks Out: The U.S. in Energy Crisis

Billionaire oilman T. Boone Pickens says energy is in a crisis in the U.S. and should be the No. 1 campaign issue for the presidential candidates. Pickens spoke at Oil and Gas Investor's Energy Capital Forum in Houston Tuesday.

"Energy is not a debate; it's a crisis for this country," Pickens said. "We cannot continue down the path were on. It's that desperate."

The 80-year-old former owner of Mesa Petroleum, which he sold in the mid-1990s, said the U.S. currently pays out $700 billion per year on oil imports and will increase to $10 trillion annually within 10 years if the pattern continues.

The belief that the Saudi Arabians can twist the spigot on oil production by adding an additional 2 million barrels a day to lower global prices is a false assumption, he said. The U.S. imports 72 percent of its oil demand, half of which comes from the Middle East.

“I feel sorry for the president going over to Saudi Arabia to ask them to sell us more oil. I don’t think the Saudis have two quarts a day of added capacity. They’re maxed out. They’re selling us all they’ve got.”

The energy crisis is a result of decades of lack of leadership that has led to a breakdown. Now, "somebody has to show up to fix it." He doubts the candidates understand the urgency of the circumstances.

Pickens chided Democratic candidate Sen. Barack Obama for "throwing around the windfall profits tax like a piece of balsa wood.

"I don't think the senator knows anything about energy. He sounds good for about two minutes."

Republican candidate Sen. John McCain received little more support. "I don't know how much he knows either. He wants to lower the gas tax during the summer. What the hell is he talking about? Will that fix anything?"

Pickens said he is not impressed by either candidate on energy issues and plans to elevate the issue into this year's presidential election campaign through a series of television ads talking about energy.

"I'm going to force this into this campaign. We'll see if I have the credibility to force it into the debate."

The price of oil is more likely to reach $150 per barrel before it reaches $120, he said, and believes that is a necessary event to force a change in thinking in the American mindset. "The more gas goes down the more you send a signal that there's enough and to buy more. It would be better for the country if the price goes up."

Americans must experience an attitude change to give everything a chance. He said there is "no question" that America must embrace alternate energy sources to alleviate the $700-billion transfer of wealth out of the country to oil imports.

"People are going to start to come to grips with change. This country is not going to go to its knees and get screwed in a bad deal," referring to oil imports.

Ethanol is "an ugly baby but it's ours and it will move cars," he said, emphasizing that he prefers the less-than-perfect fuel over imported oil. Biofuels, however, will never account for more than 10% of the U.S.' energy needs, he predicts.

Headquartered in Houston, Hart Energy Publishing's market-leading publications include Oil and Gas Investor, E&P, PipeLine and Gas Technology and FUEL. Hart also produces newsletters, conferences, electronic media, and consulting services. (6/12/08)

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