Tuesday, June 28, 2005

Peak Oil: T Boone Pickens Climbs Aboard

Who is T Boone Pickens? He is the chairman of BP Capital Management. He is just one of a long line of oil experts that claims the world will never pump more oil than it does today. From CNN.com

Pickens said a shortage of oil is the main reason behind the price increase and didn't see how the world could produce more than the current 84 to 85 million barrels a day that currently comes out of the ground.

"We're coming up on a brick wall," he said. "The fourth quarter this year is going to maybe be the most interesting quarter I've ever experienced in my 50 years in the oil industry."

The fourth quarter typically sees the highest demand for oil as northern countries stock up on heating oil for the winter months.

What does this mean in the near term? If the next winter is bitterly cold, November 2006 will be mighty chilly for Congressional republicans.

Pickens also agrees with my March prediction of $3.00 a gallon gas this year, although for different reasons.


Dreams said...

Nice work Phlip.......carry on.....view my site....plzz..

TofTD said...

He means they are not going to increase production (ie: not going to build new refineries). Why should they when they can make more money from less oil. It doesn't mean they can't - or have they been lying about their reserves?

Phlip said...

I believe OPEC is lying about proven reserves.