“I don’t think the Saudis have anything left,” said the CEO of BP Capital Management.
Brent “is a global market,” which means a lot of emerging markets including Chinaare buying it, and that will drive up the price, Picken said. That may be why Saudi Arabia is suddenly working in an oil field first discovered in the 1930s and pulling up what he called “crappy oil.”
Pickens’ prediction does not extend to WTI crude, which he called “a local market” providing enough supply for the U.S. The American oil and gas industry is “doing a great job” keeping up with increasing demand, he said.
“Here you are using almost 20 million barrels a day, producing eight million, importing 11 million, and that oil’s expensive. You supply more oil in the U.S., you’ll cut off that more expensive oil coming in,” he said.