"Where is the oil? I still want to know where is the oil? You know why the price of oil is going up? Because there is no oil," he said.
But if the price is going too high, the race to find the last drops of crude will accentuate, before the search for alternative energy resources yields results, according to Rogers.
"At $300 a barrel they would be drilling for oil under Buckingham palace," he said.
The International Energy Agency "has come to the conclusion that the world's oil reserves decline by six percent a year," and that is an argument for the rising price of crude, Rogers said.
"Say they don't decline by six percent, say they decline by four percent. That means in 25 years there's no oil at any price," he said, adding that rising oil prices will "hurt some people very badly" and some companies will go out of business.
"We will certainly have dips (in oil prices), we will certainly have consolidation, I hope we do. If oil goes into a spike, if it goes parabolic, you have to sell it," Rogers said.
The world uses 86 million barrels of oil every day, he pointed out, adding: "we found some big oil fields in Brazil and let's say the bull estimates there are correct, that's still only two years worth."
Silver Has to Come Down
He did not comment on market talk that the firm of George Soros – his former colleagues at the Quantum Fund in the 1970s - has been selling gold , which rose from around $1,345 in late January to more than $1,500.
"I have no idea, that was 31 years ago, you might as well ask me about my first wife, I haven’t seen her either," Rogers said.
"I do know that silver went up 25 percent in a month and that can’t last so that’ll have to come down," he added.
"I hope we have a pull-back, I hope it goes down for a while, it’ll be good for the market," Rogers said. "In 1987 stocks went down 30 to 40 percent, smart people went in a bought more. If it goes down I hope I’m smart enough to buy move silver."