“OK, go back to ’72 when we switched from gasoline to diesel for our heavy-duty trucks. Well, what was that all about? Price. Diesel was cheap. How long did it take to accomplish it? Five years.
“You’re exactly at the same crossroads today,” he said. “I don’t see any obstacles in front of it.”
Pickens, CEO of BP Capital Management and major shareholder in Clean Energy Fuels, also said he believed the Keystone XL pipeline deal would get done.
“We’ll be stupid if we don’t take the Canadian oil,” he said. “If we don’t take it, what’s going to happen — there’s great demand in Asia — so they’ll build that pipeline to Kitimat, British Columbia, and it’ll go to China.”
Pickens praised the domestic oil industry for having increased production to the point where it has the cheapest oil in the world — at $70 per barrel for North Dakota crude — and reducing dependence on foreign suppliers.
“We’re going to get industry back in this country because of cheap energy,” he said.
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Trader disclosure: On Feb. 13, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders: Terranova is long VRTS; Terranova is long HPQ; Terranova is long IBM; Terranova is long MCD; Terranova is long SWN; Terranova is long EMC; Terranova is long OXY; Terranova is long SBUX; Terranova is long LQD; Terranova is long UNG puts; Finerman is long AAPL; Finerman is long BAC; Finerman is long JPM; Finerman is short IBM calls; Finerman is long HPQ; Finerman is long LIZ; Finerman is long NTAP; Finerman is long PACD; Kelly is long GLD; Kelly is long TLT; Kelly is long T-Notes futures; Kelly is short Yen; Kelly is short Swiss Franc; Kelly is short Eurostoxx50; Seymour is long AAPL; Seymour is long INTC; Seymour is long SBUX
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