"...and I predict, Odungo will return to bath houses"
It is in his interest, that natural gas fueling of vehicles continue to grow. Higher oil prices encourages folks to seek the alternatives to gasoline/diesel.
TBone and Cramer. The Obama and Holder of Oil.
Thanks for posting this.
"...and I predict, Odungo will return to bath houses"
I thought T. Boone Pickens gave up on Oil and was a Wind Turbine man now
I don’t see the Saudi’s making any big production cuts to save the rest of OPEC’s collective asses, but I don’t think they will need to.
$70 oil will stimulate worldwide economic growth which will in turn increase demand for oil which will slowly drive the price back up to $100. I predict oil will stabilize again at around $100 again in about a year.
Oil can’t go much further above $100 without stimulating more U.S. shale oil production which would again lead to a glut in oil and lower prices.
If someone really wanted to take the Saudis out of the picture...what is there to stop them?
Every time I’ve acted on Cramer’s pontifications, I’ve lost money. It’s pure speculation. And Pickens has money in the game. If he has holdings in oil that he didn’t cash out, he likely doesn’t want to sell out now at a loss, so he has no choice but to hold on and hope that the price will go back up so that his holdings return to their prior values. He’s like those who hold a lot of gold and tell people to buy gold so that the price will stay up so they can sell their own gold at a profit or without losing a lot of money.
I restate my prediction: Gas below $2.00 by Jan 1, 2015 in central TX. A station in Round Rock is now $2.29.
Is he invested in GTL?................
Actually he makes some good observations in the article. Saudi Arabia is tired of carry the water for the OPEC cheaters. They have the currrency reserves to ride this out and the others do not. Countries like IRAN and Venezuela need will have to cut oil production.
T. Boone has a better understanding of oil than most, but to say more than anyone, no sale.
As for $100 oil in 12 to 18 months...I hope both Cramer and T. Boone are putting their money where their mouths are.
Hell, I'd like some of that action...on the other side.
Five years, sure...but 12-18 months?
I don't think so.
Old Earl Hafler bet Kramer that the flight to Pittsburgh would leave before his flight to Houston.
Nobody can say for sure but Saudi has a lot of mouths to feed... princes that is. The cost of keeping the country satisfied is rumored to be closer to 70 to 90 for all that. Their target price has been 90. That would be enough to keep up their cash reserve and support all their people. For the last three years the price has been closer to 100... nice windfall of 3 years x 100 - 80 or so gives them a bankable wind fall of 3 x 20.. they won’t blow all the bank. They need to subsidize say 80-60 or 70... 10 to 20 dollars a bbl They could do that for about 18 months before digging too deeply into their reserve.
‘15 will be tough and ‘16 will be better but not good. I don’t know if I’ve got enough left in me for another bust. I’ve been through several already. I’ve been beat up so bad and so many times I recoil at the thought of it.