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In a lively interchange with Fox Business Network anchor Liz Claman, Pickens predicted higher energy prices in the short term ("get ready, 'cause you're gonna have 'em"), a coming government-sponsored windfall (pun intended) for alternative energy ("Obama has gone for wind, solar and the 21st-century grid. That's in the stimulus package") and the necessity to harness natural gas ("the only resource that moves an 18-wheeler in this country"). But his most pointed comments were about the perils of oil imports. The U.S. currently imports 68% of its daily oil needs -- an all-time high. "This is more than half the trade deficit [and] has far-reaching tentacles and influence over what goes on in this country, where it has not been exposed or even explained to anybody," said Pickens. The U.S. consumes 21 million barrels of oil per day, or roughly a quarter of the world's production (85 million barrels). Thirteen million of the 21 million barrels come via imports. From a geopolitical perspective alone, this creates some unpleasant realities. Over half of U.S. oil imports come from Venezuela ("good friends of ours"), the Middle East and Nigeria. "This is absolutely insane, that this country is dependent on supplies as precarious as Nigeria for instance or Venezuela," said Pickens. "Look at Saudi Arabia: They produce 9 million barrels a day. What we import is greater than what Saudi Arabia produces." From a supply and demand standpoint, the situation is acute. "I promise you this is going to get tight, very, very quick," said Pickens. "You're going to be back to $75 oil by the end of the year" -- and $200 per barrel within five years. The 80-year-old Oklahoman also has grave concerns over U.S. debt levels, though he made sure to qualify those comments. "I'm not an economist," said Pickens. "You know what an economist is? That's the guy who didn't have the personality to be a CPA." After the laughter died down, Pickens went on to express concerns whether the mountains of new U.S. debt issues can even be sold. "If it isn't sold, we know what's going to happen: We have to buy our own debt again," he said. "If that happens to us in the fourth quarter, I think we'll have real problems on our hands.
"When you look at who owns our debt, the Chinese, the Japanese and the Saudis are the biggest owners of our debt. I wouldn't want to owe those three guys anything." - Nathaniel Baker
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Legendary oil baron, financier and philanthropist T. Boone Pickens held court over lunch Wednesday at ACG InterGrowth 2009, expressing his concerns over foreign oil and U.S. debt levels, among other things.
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It is so overwhelming that the new elected President Barack Obama, had a vision such as like those plans. For the time being it is really true that the real change to take back the economy is being inculcate into our own tactics in life. Well let us not often defend into others apprehension, let’s work it out. So did you know that the nation's and the world's largest banks are removed from the everyday, institutions of billions of dollars, totally beyond the reproach and scrutiny of the common man. However, it is the largest banks that need us to bail them out of the hole they dug for themselves. Our leaders passed a huge $767 billion stimulus package, as installment loans to these business titans, in order to give them capital and stimulate bank lenders to start lending. Obama has put a stress test into effect that will essentially point out which of these enormous companies are weak, and which ones are on track. The largest banks better start paying their short term loans off – they were paid for by the people.