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BP Capital Management Founder and Chairman T. Boone Pickens said he continues to expect oil prices to spike when the global economy picks up and spurs greater demand for oil.
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AP Boone Pickens |
In an interview on CNBC, Pickens reiterated his view that oil prices will pass $75 a barrel before the end of this year, and he added that he expects oil prices will average more than $80 a barrel next year.
"You'll see $85-$90 before the year ends," he said. Pickens added that he wouldn't be surprised if oil prices topped the $100 a barrel mark.
Oil prices were recently trading above $71 a barrel, amid talk that the Gulf Arab states are in talks to replace the U.S. dollar with a basket of currencies in oil trading.
That report has been denied by senior officials from leading oil producers such as Saudi Arabia, Russia, Kuwait, and the United Arab Emirates.
Pickens has been pushing for a greater use of renewable resources such as wind and solar energy in order to lessen U.S. imports of oil and improve national security.
"If the global economy recovers and you get everything going again, then, of course demand is going to go up, and there's no question the Chinese will use a tremendous amount of oil," Pickens.
Pickens believes China has been stockpiling oil and will be able to exert tremendous influence on the world oil market when demand surges again.
Still, he emphasized that the U.S. continues to be the largest consumer of oil, despite other options that are out there to reduce dependence on imported oil.
One proposal that Pickens is backing right now is a mandate that diesel-run 18-wheelers be switched out for trucks that are run on natural gas.
He claims this action would cut imports of foreign oil from OPEC in half. He estimates that about 6.5 million trucks to the road can be added to the road over seven years, and translate into a savings of 2.5 million barrels a day.
The city of Long Beach, Calif., has been switching many of its city-owned vehicles to run on natural gas. and has been able to realize cleaner air and less oil consumption as a result.
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