Posted on 04/20/2009 7:56:15 AM PDT by big black dog
Texas oil billionaire T. Boone Pickens on Monday reiterated his prediction that crude oil prices would hit $75 a barrel this year as producers scale back production.
Pickens said about OPEC producers: "They told you they want $75 by the end of the year, I would count on that, I believe them."
(Excerpt) Read more at finance.yahoo.com ...
Nobody’s buying your windmills, T. Bonehead.
If this guy didn’t have a huge stake in such a price escalation, I might be willing to entertain him. Look PICKENS, oil isn’t going to $75 because there’s NO DEMAND, do you understand? FINALLY!!! I know you want oil to crank up so you can leverage your natural gas assets, and I don’t blame you because I own some nice LNG stocks, but please, leave the commentary to those without such a clear conflict of interest.
Hmmm.... maybe in the ‘windmills of his mind’ it will.
Hey Boone how’s that plan working out for you?
Oil is down $4.00 now.
Wasn’t it T. Boone who said early last year that oil would never dip below $100 again—”NEVER!!”?
Between OPEC raising oil prices and domestic refineries cutting back production, it’s a no win for consumers.
I never thought I would see gas below $2.00/gal again, I was happily surprised when it hit around $1.50/gal.
Wouldn’t that just be great for you Mr. Pickens....oh wait, still no one will buy em eh?
It was about a year ago when oil was over $100/Bl that TBH said oil would get to $200/Bl and stay there. He also said we would not ever see $2.00/Gal gas again.
T-BONE HEAD- Go pound sand I don't believe any thing you say! ! ! ! !
HA!!
You got that right.
Free market, we don't need no stinkin' free market.
And [we] stand around wringing our hands wondering why the hell socialism's been received with open arms.
Just nuts.
Of course he wants that.
right,
Hope against hope.
Sorry, Pickens, I don’t want to help you increase demand for NG tenfold. I can barely afford it as it is.
I make no claims to have a clue where it is going. But didn’t T Boone jump on the $200 a barrel by Thanksgiving train last year?
T. Boone Quixote
Every time he opens his mouth somebody thinks it’s news — this is from last month:
T. Boone Pickens still bullish on oil: Sees $200-300 oil in 10 years
Posted Mar 6th 2009 10:30AM by Joseph Lazzaro
Filed under: Forecasts, Commodities, Oil
“The U.S.’s country & western culture has a saying that goes, ‘I was country, before country was cool.’
Well, billionaire oilman T. Boone Pickens was “bullish on oil, before being an oil bull was cool.” And, despite the bursting of the leverage-influenced oil bubble, during which oil plunged from $147 to below $40 in less than a year, Boone-Pickens is still bullish on oil, long-term.
Sees $75 oil in 2009
Pickens sees $75 oil by the end of 2009, Reuters reported, and $200-300 oil in 10 years. Oil Friday morning rose 89 cents to $44.50 per barrel. Oil hit a record high of $147.27 per barrel in July 2008.”
T Bone getting panicky since he spent his wad on wind power
Of course oil is going up. The dimocrats don’t want to drill, don’t want us to have gas.
Go figure?
I’m paying over $2.00 a gallon in Oregon. It’s going back up!
Didn’t T. Boone say last year or there abouts that oil would never get below $100 bbl again?.... Damn the windmills full steam ahead.....
T-Boone, a one string fiddle...
Oil’s down more than 8% so far today... That’s just one DAY!
T Boone saw windmills too
Ping
Pickens is not an oil guy so much. He tries to inflate natural gas.
Wasn’t it T. Boone who said early last year that oil would never dip below $100 again—”NEVER!!”?
Sure was. Right at the height of the “Drill her, Drill now” sentiment that seemed to be getting a foothold until the bottom fell out of oil prices.
I've got certain skills and a good work ethic. It would be sweet to see the actors, politicians, and trust fund babies running out of cocaine money and botox.
T Boone is just running his mouth. I hope he tried to go all in and tried to make a mint.
Then when oil goes belly up with deflation and then inflation he gets caught in a cash squeeze. Then when it's all done and he's bankrupt... just a bottle of Jack Daniels and a .38 resting on his desk.
Possible. He’s heavily invested in Peru oil, which is doing well.
Yes and no.
He is in gas domestically, and very exposed.
Natural gas has a lower energy content than oil and its price is (over the very long haul) a fairly set fraction of the price of oil, which couild be his basis.
That said, the supply of gas is (relatively) inflexible ones the wells are sunk and pipe laid. Yes, you can choke it back, but the fixed costs are in, so you generally just produce (indeed, you often have to).
The infrastructure to use NG or NGLs as a transportation fuel, while it exists, is not really a factor (yet).
Thus, on the short, and even medium, term natural gas and oil really don’t have that much to do with one another, other than emotion.
Pickens is a blow hard.
He is, however, correct. Maybe not by year end, but soon.
Over the long and medium term, oil trades -— and has since tracked in the 1920s -— within 3 standard deviations of three times the average cost of production of a barrel of oil.
Yes, it goes high, and then goes very low. This is the nature of a commodity with a long “thru-put” — the time from thinking about drilling, to drilling, to getting barrels to market is years and years. (It gets underproduced at low price, exacerbating shortages, and overproduced at high price, exacerbating oversupply.)
The logic behind the “three times” rule, BTW, is, under most contracts and regulatory shemes, the land land owner gets 1/4, the operator gets 1/3, and the government gets 1/3, with the three fighting over the missing 1/12 depending on market power.
The average cost of production is currently $25/bbl. Ergo, $75.
We are currently burning through the excess oil that was generated with $140/bbl.
You’ll see bobbing around $50 for a while, then a steady climb past $75 to probably $85, then a drop back.
And, yes, I have bought and traded oil for a long, long time.
yeah, he is.. with a capital outlay predicated on $100 oil, low interest rates and stable dollar in relation to Peruvian Sol...
Now he's looking at oil at less than half his "floor" price, interest rates rising for speculative purchases, and dollar that is dropping in relation to most other currency after it gets printed by the truckload.
hahhahahaha... couldn't happen to a nicer guy, now if only Trump can get squashed, it would be priceless.
I don’t know his initial capital cost, but the wells are coming along nicely and the cost of production is very, very low.
I have locations offsetting him, and we are very busy, and making money at this price.
Would I have done it at $50/bbl oil? No, but for $140/bbl oil, I would have stayed home — but I couldn’t find anything to buy to drill and couldn’t find any rigs.
As it turns out, I am making more money, and it is held offshore, which is good — I filled out my citizenship paperwork for another locale.
Done paying Obama. The money will never come here.
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