×

CNBC's Melissa Francis Sits Down with BP Capital's Boone Pickens on "Power Lunch" (Transcript Included)

WHEN: Tuesday, September 2nd at 12:45PM ET
WHERE: CNBC's "Power Lunch"

Following are excerpts from the unofficial transcript of the CNBC interview with BP Capital's Boone Pickens on CNBC's "Power Lunch." In the interview, Pickens discusses OPEC, among other topics.

All references must be sourced to CNBC.

FRANCIS: I'M JOINED BY BOONE PICKENS. WE'RE HERE TO TALK ABOUT HIS BOOK BEING RELEASED TODAY. BUT I CAN'T HELP ASK HIM AS WE STAND HERE IN THE HOUSE THAT BUILT BOONE, WHAT DO YOU THINK ABOUT -- WHAT DO YOU THINK ABOUT THE HUGE DOWN DRAFT IN CRUDE TODAY? REALLY GETTING CRUSHED.

PICKENS: IT IS. I THINK IT'S -- THAT IT'S, YOU KNOW, IT'S THE ATTITUDE OF THE MARKET. AND A LITTLE BIT OF NEWS BAD OR GOOD, IT JUST TAKES US DOWN FURTHER. AND I DON'T KNOW.I WAS A LITTLE SURPRISED. IT WAS HEAVIER THAN I THOUGHT.BUT I FIGURED IT WOULD BE DOWN.

FRANCIS: I GOT TO ASK YOU, WHERE DO YOU THINK WE'RE GOING FROM HERE? ARE WE GOING TO HIT $100 OR BELOW?

Boone Pickens
Richard Drew
Boone Pickens

PICKENS: I DON'T THINK WE'LL GO BELOW $100. I THINK THEY'LL START TO SUPPORT IT IS WHAT WILL HAPPEN. AND THEY'LL CUT PRODUCTION. BUT THEY LIKE IT. OPEC LIKES IT UP HERE. IT'S FUN.YOU KNOW? THEIR REVENUES THIS YEAR WILL BE OVER A TRILLION, TWO HUNDRED AND FIFTY BILLION DOLLARS.

FRANCIS: YOU THINK THEY'RE GOING TO CUT AND DEFEND $100 ON SEPTEMBER 9th. YOU THINK THEY'LL CUT PRODUCTION?

PICKENS: I DO.

FRANCIS: LET'S GET ON TO THE BOOK. THIS IS HOW I GOT YOU ON HERE TODAY. THE FIRST BILLION IS THE HARDEST. TELL ME ABOUT THIS. IS THE FIRST BILLION THE HARDEST? THE SECOND BILLION IS JUST A PIECE OF CAKE?

PICKENS: THE SECOND BILLION IS A LOT EASIER THAN THE FIRST BILLION. THE FIRST BILLION TOOK 75 YEARS OR SOMETHING. AND THE SECOND BILLION TOOK TWO YEARS. SO IT WAS EASIER. ONCE YOU CATCH ON HOW TO DO IT, IT GOES PRETTY GOOD.

FRANCIS: IS THAT WHAT YOU TELL US IN HERE, HERE, HOW TO GET IT DONE?

PICKENS: I DON'T TALK A LOT ABOUT MAKING MONEY IN HERE. THAT'S TITLE KIND OF MAKES ME A LITTLE BIT, YOU KNOW, NERVOUS. I'M NOT THE KIND OF GUY TO BE BRAGGING ABOUT HOW MUCH MONEY I'M WORTH.

FRANCIS: YOU'VE BEEN BUSY. I MEAN A BOOK AND PICKENS PLAN REALLY FEELS LIKE IT PICKED UP A LOT OF STEAM. A LOT OF PEOPLE ARE OUT THERE TALKING ABOUT IT. DO YOU WORRY AT ALL WHEN THE PRICE FALLS THAT IT WILL TAKE THE FOCUS OFF OUR NEED TO --

PICKENS: NO, THE PRICE FALLING HELPS THE PICKENS PLAN BECAUSE IT MAKES NATURAL GAS CHEAPER. AND NATURAL GAS HAS TO BECOME OUR PRIMARY TRANSPORTATION FUEL. WE'VE GOT TO TAKE THAT AWAY FROM THE FOREIGN OIL. AND THE ONLY THING WE HAVE IS NATURAL GAS. SO THE CHEAPER NATURAL GAS IS, THE BETTER -- THE BETTER THE DEAL IS.

FRANCIS: WHAT DO YOU THINK ABOUT NUCLEARS FOR ELECTRICITY GENERATION, FOR POWER GENERATION?

PICKENS: IT'S GOING TO HAPPEN.YOU KNOW, I BET THIS SURPRISES YOU -- DID YOU KNOW THAT A BATTERY WON'T MOVE AN 18 WHEELER? SERIOUSLY. IT'S ONLY FOR LIGHT DUTY.THAT'S ALL THE ELECTRIC CAR IS.

FRANCIS: YEAH.

PICKENS: WHICH IS GOOD.

FRANCIS: I THOUGHT YOU MEANT MY LITTLE BATTERY THAT GOES INTO A FLASHLIGHT.

PICKENS: THAT DEFINITELY WON'T MOVE IT. THE BATTERY FOR THE CAR DOESN'T MOVE THE TRUCK. SO WE HAVE -- THE ONLY FREE FUEL THAT WILL MOVE THE TRUCK ARE DIESEL, GASOLINE AND NATURAL GAS. SO WE'VE GOT TO GO WITH NATURAL GAS AS A TRANSPORTATION FUEL IF WE'RE GOING TO REDUCE THE DEPENDENCE ON FOREIGN OIL.

FRANCIS: WHAT KIND OF A REACTION DO YOU THINK YOU'RE GETTING SO FAR? YOU HAVE SEEN A PICKUP IN THE WEBSITE? ARE PEOPLE GETTING ON THE BAND WAGON?

PICKENS: WE HAVE OVER 5 MILLION VISITORS ON THE WEBSITE AND 300,000 SIGNED UP, YOU KNOW, TO WEAR UNIFORMS LIKE I DO IN MARCH. I MEAN WE'RE GOING TO GET STUFF DOWN IN WASHINGTON.

FRANCIS: WHAT DO YOU THINK ABOUT JOHN McCAIN'S CHOICE OF A VICE-PRESIDENTIAL CANDIDATE, SARAH PALIN? THERE IS A LOT OF EMPHASIS ON THE FACT SHE COMES FROM AN AREA WHERE SHE IS FOCUSED ON ENERGY POLICY.

PICKENS: SHE SHOULD KNOW ENERGY. I DON'T KNOW GOVERNOR PALIN, THOUGH. I NEVER MET HER. BUT I WOULD BET SHE KNOWS A LOT ABOUT ENERGY.

FRANCIS: AND COMPARING THE TWO CANDIDATES, I MEAN I KNOW YOU GOT INTO THIS RACE, YOU KNOW, ON THE SIDE OF EXCITING PEOPLE, THE PICKENS PLAN.

FRANCIS: YOU FELT LIKE NO ONE HAD AN ENERGY POLICY. HAS THAT OPINION CHANGED?

PICKENS: NO, IT HASN'T. AND BOTH CANDIDATES SPENT -- WE HAD A GOOD MEETING WITH BOTH OF THEM. AND SOMEBODY SAID WHICH IS BETTER THAN THE OTHER ONE? I SAID THEY'RE BOTH VERY INTERESTED. THEY WERE VERY, YOU KNOW, THEY WERE INTERESTED IN WHAT I HAD TO SAY. AND THEY WERE GOOD MEETINGS. AND WE'VE GOT TO HAVE AN ENERGY PLAN. I MEAN WE CANNOT GO 100 DAYS IN THE NEXT ADMINISTRATION WITHOUT AN ENERGY PLAN.

FRANCIS: THE PRICE OF NATURAL GAS WAS TAKEN A HIT AS WELL. YOU KNOW, WHERE DO YOU THINK THAT IS GOING FROM HERE?

PICKENS: I DON'T KNOW.WE'RE LOADED WITH NATURAL GAS IN THIS COUNTRY. WHICH IS JUST GREAT FOR THE PICKENS PLAN. AND SO WE HAVE TOO MUCH NATURAL GAS FOR OUR DEMAND. I DON'T KNOW. YOU COULD GO DOWN TO SIX, I THINK.

FRANCIS: ALL RIGHT. BOONE PICKENS, THANK YOU FOR JOINING US. WE APPRECIATE IT. BACK TO YOU.




About CNBC:
CNBC is the recognized world leader in business news, providing real-time financial market coverage and business information to more than 340 million homes worldwide, including more than 95 million households in the United States and Canada. The network's Business Day programming (weekdays from 5:00 a.m.-7:00 p.m. ET) is produced at CNBC's headquarters in Englewood Cliffs, N.J., and also includes reports from CNBC news bureaus worldwide. Additionally, CNBC viewers can manage their individual investment portfolios and gain additional in-depth information from on-air reports by accessing http://www.cnbc.com.

Members of the media can receive more information about CNBC and its programming on the NBC Universal Media Village Web site at http://nbcumv.com/cnbc/.