Pickens Tells CNBC Oil Is Heading Higher

Oil billionaire Boone Pickens is sticking to his guns. Even though oil prices have declined since the beginning of April as Iran fears fade, the Chief Executive of BP Capital says he still thinks crude will be heading higher.

In an interview with On the Money's Melissa Francis, Pickens tells CNBC "I think the world is short of energy. There will be dips, but the trend is up." Pickens expects oil will "test the highs" around $78 before the end of the year. If there's a serious disruption of supply from Iran, "the sky's the limit." In late March, Pickens told us he expects oil will reach $75 per barrel before $55. The bottom line, according to Pickens, is that demand is growing as the global economy expands while the supply of oil remains fixed.

Pickens also predicts that nuclear energy "is the future" because it is "safe and cheap," if excessive regulatory hurdles can be cleared away. He also believes natural gas will become a "serious transportation fuel" in the future because when compared to gasoline it is relatively inexpensive.