The man who helped drive oil to $150, legendary T. Boone Pickens, now says on CNBC that oil will hover around $150 per barrel in the near term but could go back down to $100 in 2 years:
“I’ll stick with $150 (per barrel),” Pickens, who is also CEO of BP Capital, told “Squawk Box”. “Demand going down, that’s what will bring this thing in better balance”.
Asked where he saw the price of oil going in the next two years, he said: “You could get it back down to about 100.”
Pickens, more controversially, suggested that the U.S. should be given a call option (ability to buy at a pre-determined price) on Iraqi oil in exchange for the billions of dollars the US has spent on reconstruction:
What’s happened now is we’ve paid billions and billions of dollars for the Iraqi situation and we’ve lost 4,000 lives, we should at least come out of there with a call on their oil at market price.
Finally, Pickens took the opportunity to pimp his giant wind farm. He says wind could eventually provide between 40% and 60% of America’s energy. He even has a shiny new web site: http://www.pickensplan.com.