Oilman Pickens says $100 oil coming

[Herman Munster]

http://www.businessweek.com/ap/financialnews/D8SCJ5G01.htm

Legendary Texas oilman T. Boone Pickens sees the price of oil hitting $100 a barrel perhaps as soon as the fourth quarter but certainly sometime next year, a consequence of daily global production reaching its peak.

The 79-year-old former wildcatter, who now heads the Dallas-based hedge fund BP Capital Management LP, said Friday afternoon he has no doubt worldwide demand has topped the current global output of roughly 85 million barrels a day. As such, he said, prices have nowhere to go but up.

"I think you'll reach $100 (a barrel) before you go back to $80," Pickens said before speaking at a gathering of the Association for the Study of Peak Oil and Gas at a downtown hotel. "It could happen in the fourth quarter, but you'll see it within a year."

Crude prices have climbed 28 percent since late August, passing $90 a barrel for the first time in overnight trading Thursday. Light, sweet crude for November delivery eventually fell 87 cents to settle at $88.60 on the New York Mercantile Exchange.

[fenriswolf]

1. since when is oil sweet?

[RB TexLa]

2. When it has very little sulfer

[Fridays Child]

4. According to Wikipedia...

"Petroleum is considered 'sweet' if it contains less than 0.5% sulfur."

[Psephos]

3. The upside is that rising prices drive the development of alternatives ever faster n/t

[man4allcats]

10. I'm for it.

Five or six bucks a gallon sounds good to me, and I drive a Honda FIT that gets about 33 mpg. Even a FIT would be expensive to fill up at those prices, but it just might force an examination of the pricing structure and what works for the average driver. Face it. If Joe Husbandandfather can't afford to drive to work and home again five days a week, the bottom's gonna fall out anyway.

[in_cog_ni_to]

5. $100 a barrell means how much at the pump? That's going to be painful for the SUV drivers and

especially the Hummer drivers. I will never regret buying my Prius.

[Strelnikov_]

8. Hard to say, depends on the season

but at $100/bbl @ 42 gal/bbl we are looking at $2.38/gal. for the feedstock alone.

The following site (EIA) indicates feedstock was 53% of the cost of UNL in 2005, 47% in 2004.

So, assuming a liberal 55%, we are looking at

$4.33/gal.

Enjoy.

http://www.eia.doe.gov/pub/oil_gas/petroleum/analysis_publications/primer_on_gasoline_prices/html/petbro.html

[in_cog_ni_to]

9. Ouch. That's going to hurt. I'll still be able to fill up for under $50.00, so

it won't be as painful for me and that will last 4-6 weeks, but I pity the SUV/HUMMER/TRUCK drivers.

[ProSense]

6. Swift Boat Liar feigns concern

Who gives a shit what this asshole says?

2. T. Boone Pickens: Rudy Giuliani
Pickens is a billionaire Texas oilman who raised more than $200,000 for President Bush's re-election campaign in 2004 and gave millions of his own cash to Republican 527 committees, including $3 million to the Swift Boat Veterans for Truth. Pickens endorsed Giuliani last year and sits on the former New York City mayor's national finance committee.

link

[Mojorabbit]

11. Whatever else he may be

I think he is right on his prediction .

[ProSense]

12. Is this a prediction or statement? Does anybody doubt oil prices are going up?

Damn, we need a lying asshole who supported Bush, continues to smear Democrats and is now looking to regain credibility to tell us water is wet?

Let me say it: Oil prices will hit $100 a barrel.


Whatever else Bush maybe...

[Orrex]

7. That's about as big a "no shit" statement as I've read recently

Hell, the same prediction could have been made shortly after Dubya took office. Certainly after his second innauguration, at the very latest.

[Skink]

13. What if was 100 dollar beer?

:scared:

[Starbucks Anarchist]

14. T. Boone Pickens?

Isn't he a blues musician?

[kineneb]

15. another "duh" moment: oil price is already over $80 now

and is going higher rapidly (check out the daily prices over on LBN's Stock Market watch posts)

well, BushCo has managed to piss off So. America's oil producers, totally mess up Iraq's oil production for the foreseeable time, threaten Iran... who else can they annoy/trash and cause the per-barrel price to go even higher?

I am beginning to think they do it on purpose (now donning my lovely tin-foil tiara).