My Plan to Escape the Grip of Foreign Oil

The Wall Street Journal ^ | July 9, 2008 | T. Boone Pickens

[Belasarius]

One of the benefits of being around a long time is that you get to know a lot about certain things. I'm 80 years old and I've been an oilman for almost 60 years. I've drilled more dry holes and also found more oil than just about anyone in the industry. With all my experience, I've never been as worried about our energy security as I am now. Like many of us, I ignored what was happening. Now our country faces what I believe is the most serious situation since World War II.

The problem, of course, is our growing dependence on foreign oil – it's extreme, it's dangerous, and it threatens the future of our nation.

Let me share a few facts: Each year we import more and more oil. In 1973, the year of the infamous oil embargo, the United States imported about 24% of our oil. In 1990, at the start of the first Gulf War, this had climbed to 42%. Today, we import almost 70% of our oil.

This is a staggering number, particularly for a country that consumes oil the way we do. The U.S. uses nearly a quarter of the world's oil, with just 4% of the population and 3% of the world's reserves. This year, we will spend almost $700 billion on imported oil, which is more than four times the annual cost of our current war in Iraq.

In fact, if we don't do anything about this problem, over the next 10 years we will spend around $10 trillion importing foreign oil. That is $10 trillion leaving the U.S. and going to foreign nations, making it what I certainly believe will be the single largest transfer of wealth in human history.

[avacado]

"You are literaly correct in that “God only knows” what lies under OCS.

Interestingly, every time we are allowed to look it is always a LOT more than we thought (unlike Mexico and Saudi who are already on the downside of the curve).

Back in the late 1980s/early 1990s the Gulf of Mexico was considered played out. Then seismic technology advanced to 3D and drilling technology advanced to deep water and the Gulf of Mexico was active again in the deeper waters with major finds. Now there is a find in the Gulf of Mexico of 15 billion barrels called the "Lower Tertiary Play." This is at really deep depths both water and subsurface. Technology is catching up to be able to extract from this large reservoir.

Oil literally seeps from the ocean ground in Southern California. That place is loaded. We need to seismic survey explore there now.

[Heartland Mom]

Domestic drilling + coal + nuclear + other = we'll be fine.

I'm for all of the above. Wind is fine - just as long as we don't keep all our eggs in one basket.

[stylin19a]

Interesting thing is:
For just crude oil, in April 08 we imported 1.3 million barrels a month LESS than we imported in November of 07.

The downside ?
In April 08 we imported 1.1 million barrels a month of ethanol MORE than we imported in November of 07.

We are going down the same path with ethanol, that we went down with oil, that is, it's cheaper to import than develop our own.

Drill Here, Drill Now

[wolf78]

T. Boone is trying to scare you because he’s jumping into the wind market in a big way. If he was serious he would be calling for nukes and clean coal. Instead he’s going with wind which is a perfect match for the hot air he’s expelling.

What many people don't get: nukes are expensive, too. So is "clean" coal (i.e. with carbon capture etc.). Under the right circumstances, which seem to exist in the wind corridor from Texas to North Dakota, wind is competitive and oftentimes significantly cheaper than nukes (depending on population density etc.). The question shouldn't be: one or the other, but rather: which one where? BOTH should be done.

[avacado]

"Jorge Boosh, having shot his wad on the attempt at revising Social Security thing, did nothing."

Complete horse crap! Bush has been pushing energy proposals for domestic exploration, nuclear, and coal since 2001. Blame the Congress of DEMs and RINOs, not Bush.

[Reagan Man]

Many plans sound good, but oil remains the #1 energy commodity in the world. This is a problem that has been getting worse for the last 35 years and it won't be solved overnight. With China and India using more and more oil the market has severely tightened, increasing speculation and prices. Only more drilling will be able to replace the increase in demand that has occured. We can't reply on the Saudi's or anyon else to come to America's rescue. We have to reply on ourselves. Wind power and other alternative energy sources are fine in the long run.

Right now, we need to drill and drill and drill --- drill in ANWR, more off shore drilling. What do you think the oil barons of a century ago would be doing today?

>>>>>We have a golden opportunity in this election year to form bipartisan support for this plan.

Fat chance.

[shove_it]

"...should we switch to natgas transportation."

Think of converting diesel powered engines in buses & trucks to LNG/CNG power first; this is being done now. A variety of power sources for cars will come along later.

[bassmaner]

Pickens is correct about one thing: we shouldn't be burning natural gas to produce electricity, and if wind farms in the Great Plains states can replace it, that's a good thing. But wind power alone is certainly not the answer: even he admits that it will provide at most 20% of the nation's electricity needs. We need more nukes and coal-fired plants, too.

As always, the environMENTAL extremists will stand in the way. If there is a massive effort made to expand wind farm electricity production, then prepare for a massive legal battle from the Nature Conservancy, the Sierra Club, the Audubon Society, et al, and their congressional 'Rat allies to hamstring it every step of the way. All it will take is just one bird that's on the Endangered Species list getting mangled in a windmill, and the whole shebang will be shut down.

Meanwhile, China continues to build one new coal-fired power plant per week ...

[Reagan Man]

oops.... make that rely, not “reply”.

[DannyTN]

I agree with you. Nuke has proven economical. Not sure Wind power has.

[WesternPacific]

Our government is split into two groups of idiots who are involved in a Mexican, excuse me, Latino standoff. One side is demanding higher prices to force the sheeples to conserve while the other side is encouraging and allowing higher prices to force an energy crisis which will force the other side into allowing increased oil drilling and fuel production. Both sides are manipulating their useful idiot supporters to fulfill their plan while taking political payoffs, in one form or the other.

TBP will be attacked and accused of having a financial stake in this, but you know what, we all have a financial stake in this crises.

[Soliton]

Has anyone done a study of what will happen if we seriously remove wind energy in the midwest? Will we have drought in the East?

Pickens is like an old robber knight that spends his life raping and pillaging and then founds a monestary right before he dies. He knows how much oil and coal we have. We don’t need wind to be free from foreign oil.

[DannyTN]

I also agree with wolf that we should pursue both. We can start implementing wind faster than nuke. However, I think nuke takes less land, generates less noise and is the best long-term solution.

[ConservativeDude]

At $150 a barrel, hopefully that technology is moving pretty fast now....

[avacado]

"At $150 a barrel, hopefully that technology is moving pretty fast now...."

Baker Hughes just opened a technology research factory to design the drilling equipment necessary for drilling to extreme depths under extreme temperatures and pressures.

[Carley]

So this brilliant man never worried about the energy supply till now.

Where was he when Iraq marched into Kuwait and continued on nearly to the Saudi border. That as about oil, if I recall correctly.

Did he think the terror attacks by middle easterners would never impact our energy supply.

Hard to take this man seriously and frankly I have seen his ad in the Wall St. Journal and I don’t believe we get 70% of our oil from foreigners unless he is counting Canada and Mexico as foreigners.

[Carley]

It’s a plan until they find the first dead bird and then the wailing and gnashing of teeth will begin.

[TYVets]

Follow the money trail.

BINGO!

T. Boone “Self Serving” Pickens is no different than those who slant studies, surveys, the MSM, politicans, developers and many others. When they pay, they expect something in return. It is just the nature of capitalism.

It is always interesting to see where someone as "successful" as Pickenys is investing. His money, the money of others, who knows?

He has never called me with some inside information and I sure he never will.

Always follow the money trail!

[Ben Ficklin]

www.pickensplan/theplan/

[mysterio]

I disagree with him on NG. The price to heat my small house is already high. Additional demand for it is going to cause problems. The wind power sounds like a good idea, though.