The US will drill less new wells at $50 than we would at $100, but some drilling will continue. Just as drilling continued the last time we were at $50, just a few years ago.
Posted on 12/23/2014 8:00:36 AM PST by shove_it
Energy entrepreneur T. Boone Pickens predicted Tuesday that Brent crude oil will be at $90 to $100 barrel in 12 to 18 months. "The world got along fine with $100 oil," he said on CNBC.
Less global demand for oil is more to blame for the price drop than oversupply, Pickens said in a "Squawk Box" interview.
"The demand for the world was another 1.3 million this year, and half of that is what we got," he continued. "The oversupply for oil has come from the United States."
The Organization of the Petroleum Exporting Countries alone can't satisfy the world's need for oil, he added. "Are they trying to test the U.S. producer? I don't know, maybe so."
In a heated exchange over "peak oil," defined as the point when extraction rates top out, Pickens defended his 2005 call, which came before the U.S. shale boom. "We did peak [for OPEC] in 2005."
"If you look at 2005, you're finished as far as for the rest of the world. What saved you was the shale. American industry saved the world one more time," he said.
He rejected assertions that he was wrong in 2005 about "peak oil" given the landscape of today's oil market.
"That's all good bulls--- and all," he said—implying that at the time there was no way to know how big the shale boom was going to be. "I'm the expert you guys, not you." With more than a half century in the oil and gas business, Pickens spent most of his career building Mesa Petroleum into a powerhouse. After selling Mesa in 1996, he founded BP Capital Management, an investment firm focusing on the energy industry...
(Excerpt) Read more at video.cnbc.com ...
#hopeface Meanwhile the Saudis don’t care if it goes to $20. I’ll vote with the Saudis on this one, sorry T. Boone, you greedy liar.
I would think no one would find anything interesting from Pickens since he was crapped out as the big prophet of peak oil and solar energy.
I read an article a few days ago about how no body every predicts oil prices right and yet, the media always interviews the same folks who got it wrong the last ten times.
Good for Joe that he called him out on the peak oil disaster. Boone has been a brilliant (and lucky) oil man for decades - but like the rest of the world, he doesn’t know what will happen in the future, and his absurd notion that “the world got along just fine with 100 oil” is bullshit to a lot of people.
Talking his long position - count on it.
+1
T. Boone may have been a successful exec in the past, but he has turned into nothing but a huckster.
T.Bone is like the Master race baiter Al Sharpton of old oil....Sticking his mouth in front of any mic the media with thust at him hoping to keep relevant..
T. Boone is a has been. Shudda stuck w/ oil and stayed away from solar.
This sounds like a desperate pump and dump to me.
This is the same brilliant T. “boondoggle” Pickens who was all in for wind power just a couple of years ago, right?
Dang it. I got the wrong link to start with -— start here for article I posted: http://www.cnbc.com/id/102291371
and wind........................
Don't forget his wind power fiasco. -Tom
From Slashdot: In 2008, billionaire T. Boone Pickens unveiled his ‘Pickens Plan’ on national TV, which calls for America to end its dependence on foreign oil by increasing use of wind power and natural gas. Over the next two years, he spent $80 million on TV commercials and $2 billion on General Electric wind turbines.
Unfortunately market forces were not favorable to Mr. Pickens, and in December 2010 he announced that he is getting out of the wind power business.
When experts are wrong, 'no one could have known' is the catch phrase.
I read somewhere that places like Venezuela and Russia, who survive on oil profits, are the ones who need oil priced in the $100 a barrel range. OPEC can apparently keep lowering prices until the rest of the world goes into the red pulling up their own oil or fracking shale. The question is - how will OPEC’s competitors survive the OPEC attempt to put them out of business?
We probably won’t be drilling any new wells at $50 a barrel,
but there’s nothing the Saudis can do about the ones that are already in production -
UNLESS
they can get their leftwing buddies in the US gov’t to pull some regulatory mumbo jumbo on them.
Wishful thinking on the part of Pickens.
We’ll soon see who’se right though.I just hope it’s our Petroleum producers.
The oil business is like any other. There are domestic oil companies that can make money at 30 dollars and there are companies that are unprofitable at 110 dollars.
Pickens is 86 years old. I think he is trying remain relative.
What does Pickens care ,he’s a big investor in Wind Farms ,LOL
The US will drill less new wells at $50 than we would at $100, but some drilling will continue. Just as drilling continued the last time we were at $50, just a few years ago.
Natural Gas actually.
The wind was just a way to free up more natural gas fuel from electric power generation, before the shale gas really took off. It was back in the day when we were still building LNG import terminals because we didn’t have enough gas.
Since then T.Boone dropped the wind, kept the Nat Gas, and those LNG terminals are trying to export instead of import.
He is pushing NatGas for Vehicle Fuel, but lower prices for gasoline and diesel make it harder to justify the conversion.
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