Mad Money

T Boone Pickens: The time for clean energy is here

Pickens: Oil is going to recover

Jim Cramer doesn't know what to think about energy prices at this point. They are all over the place! First came the total collapse in oil last year, followed by a rapid rebound, and now with the price of natural gas skyrocketing almost 20 percent in the last two weeks, how the heck is he supposed to figure out where energy prices are headed?

That is why the "Mad Money" host decided to consult an expert on the matter and spoke with T. Boone Pickens, infamous oil magnate, financier, philanthropist as well as the founder and chairman of BP Capital Management.

With more than 60 years of experience in the oil industry, Pickens was voted by the Oil & Gas Investor as one of the 100 most influential people of the petroleum century. Pickens last appeared on "Mad Money" in December, a time when the price of crude was plummeting and oil companies were slashing targets left and right.

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That's when Pickens made a very bold call, stating that oil would ultimately make its way back to $100 a barrel within the next 12 to 18 months. Given the recent run in the price of crude, could he be right? Cramer sat down with Pickens to gain further perspective on his projections for the oil patch.

"I think you're going to see $70. I said on the 23rd of December we would see $70 by the end of '15. We are going to be there, and I think you could be back up to $90 to $100 by the end of 2016," Pickens said.

Pickens added that what really dropped the bottom out on oil was the demand for it. He explained that at the first of the year, demand was projected for 1.45 million barrels per day, and instead it ended up at 660,000 barrels. That is a big difference, which attributed to the price of oil.

"They don't believe you can recover as quick as you can. But you're going to recover because if you cut off 1,000 drilling rigs out of 1,600, man you've made a big cut," he added.

Pickens also expressed disappointment with energy policy in Washington. In order to export, people must work with the Commerce Department. Yet, in order to work on the Keystone Pipeline, people must work with the State Department.

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"Where is the energy department? Where do they call the shots? They don't have a plan in Washington," Pickens said.

Ultimately, Pickens anticipates that any company that relies on energy will ultimately make the switch to clean energy. He cited companies like UPS, which has not purchased a diesel truck in two years. Additionally, companies like Wal-Mart and FedEx are also talking about changing to clean-fuel alternatives.

"I'm saying that they are going to switch to natural gas. I think BNSF will. I think they're all going to go to it, because it's cheaper and it's cleaner," Pickens added.

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