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FIRST ON CNBC: CNBC TRANSCRIPT: BOONE PICKENS, BP CAPITAL CEO INTERVIEWED ON CNBC'S "THE CALL" TODAY, THURSDAY, MARCH 5TH AT 11:30AM ET

WHEN: Today, Thursday, March 5th at 11:30AM ET

WHERE: CNBC's "The Call"

Following is the unofficial transcript of a FIRST ON CNBC interview with BP Capital CEO Boone Pickens on CNBC's "The Call" today.

All references must be sourced to CNBC.

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FRANCIS: JOINING US NOW FOR A FIRST ON CNBC INTERVIEW LEGENDARY OIL INVESTORS BOONE PICKENS WHO IS LIVE AT THE "WALL STREET JOURNAL'S" ECONOMICS CONFERENCE. THANKS FOR JOINING US.

PICKENS: YOU BET, MELISSA. GLAD TO BE WITH YOU.

FRANCIS: I WANT TO GET TO YOUR MONTHLY OIL REPORT THAT YOU'RE PUTTING OUT NOW EVERY MONTH TO REMIND PEOPLE JUST HOW MUCH MONEY WE ARE SENDING EVERY SINGLE MONTH TO THE MIDDLE EAST, BUT BEFORE WE DO THAT, I WANT TO ASK YOU QUICKLY, I RECENTLY INTERVIEWED THE CEO OF TOETAL AND HE TOLD ME SOMETHING DISTURBING.HE THOUGHT THAT DEMAND WAS GOING TO OUTSTRIP SUPPLY AS SOON AS 2011 AND WE WOULD BE BACK IN THE SAME SITUATION WE WOULD IN LAST SUMMER WITH ANOTHER SUPPLY SHOCK AND PRICE SHOCK. DO YOU AGREE WITH THAT AND AGREE WITH THAT TIME TABLE?

PICKENS: I AGREE. I AGREE WHOLEHEARTEDLY.YOU'RE GOING TO BE -- I STILL DON'T BELIEVE THE WORLD CAN PRODUCE ANY MORE THAN 85 MILLION BARRELS A DAY, AND WHEN YOU LOOK AT THE LAST HALF OF 2008, WE WERE -- THE PREDICTION WAS WE WERE GOING TO BE USING 87 MILLION BARRELS A DAY, AND WHAT HAPPENED? THE PRICE ROCKETED UP, SPECULATION CAME INTO THE MARKET, AND THEN WE HIT THE WALL.THE RECESSION SET IN AROUND THE WORLD, AND DEMAND DROPPED. PRICE DROPPED AND ALL, BUT I CANTRELL YOU THAT OPEC HAS GOT TO HAVE MORE MONEY FOR THEIR OIL, AND THEY ARE GOING TO CUT SUPPLY, AND BY THE END OF THIS YEAR YOU WILL BE BACK UP TO $75.

FRANCIS: YEAH, I MEAN, NOT ONLY THAT, NO ONE IS INVESTING RIGHT NOW BECAUSE THEY DON'T HAVE THE MONEY BECAUSE OIL IS TRADING AT $43 A BARREL. I MEAN, THAT'S THE MAIN PROBLEM. EVEN NATIONAL OIL COMPANIES, SAUDI ARABIA SAYS THEY SAVED UP MONEY FROM THE PAST COUPLE YEARS WHEN THEY MADE SO MUCH TO INVEST, BUT OTHER COUNTRIES AREN'T MAKING THE SAME KIND OF INVESTMENT. WHAT IS THE TIME TABLE LIKE? WHEN WILL WE SEE $75 OR $80? WHERE WILL IT GO FROM THERE?

FRANCIS: I THINK YOU WILL SEE $75 BY THE END OF THE YEAR. THEN DOES THE WORLD RECOVER? IF THEY DO RECOVER, THEN THE PRICE WILL MOVE ON UP. IF IT'S A SLOW -- COMING OUT OF THE RECESSION, IT WILL BE, YOU KNOW, YOU WILL STABILIZE FOR SOME PERIOD OF TIME.I'M GOING TO GIVE YOU ONE OF THOSE PREDICTIONS.

FRANCIS: OKAY. WE LOVE THAT.

PICKENS: ALL RIGHT.OKAY. WE'LL SEE $60 BEFORE $40. NOW, THAT IS A GUTSY ONE.

FRANCIS: THAT IS A GUTSY PREDICTION BECAUSE WE SAW $40 LIKE EARLIER THIS WEEK.

PICKENS: I KNOW IT. WELL, YOU GOT TO GO UNDER $40.BUT ANYWAY, I SAY $60 BEFORE IT DROPS BELOW $40.

KUDLOW: BUT, BOONE, COME ON, LET'S --I WANT TO DIG INTO SOME POLICY HERE.YESTERDAY TREASURY SECRETARY TIM GEITHNER DELIVERED A BLISTERING ATTACK AGAINST OIL AND NATURAL GAS COMPANIES. THEY ARE GOING TO RAISE TAXES ANTHEM, AND HERE IS WHAT HE SAID. WE DON'T BELIEVE IT MAKES SENSE TO SIGNIFICANTLY SUBSIDIZE THE PRODUCTION AND USE OF SOURCES OF ENERGY LIKE OIL AND GAS THAT ARE DRAMATICALLY GOING TO ADD TO OUR CLIMATE CHANGE PROBLEM. YOU'RE TELLING US THAT NATURAL GAS IS PART OF THE SOLUTION TO CLIMATE CHANGE. YOU MET WITH OBAMA ON THIS SUBJECT.WHAT IS HAPPENING?

PICKENS: WELL, YOU CAN'T TAX THE COMPANIES THEY'RE ON THEIR BACK RIGHT NOW BECAUSE WITH PRICES LIKE THEY ARE, YOU'VE SHUT DOWN, YOU KNOW, YOU'VE SHUT DOWN 500 OR 600 RIGS ALREADY, AND SO YOU WANT TO GET THOSE PEOPLE BACK TO WORK.YOU DON'T DO IT BY RAISING TAXES.

KUDLOW: BUT, BOONE, YOU SAID -- BUT, BOONE, ISN'T NATURAL GAS A CLEAN FUEL.ISN'T THAT ONE OF THE KEYS WE SHOULD BE USING GAS TO LIQUID FOR OUR TRANSPORTATION FLEET? THEY'RE SAYING NATURAL GAS IS BAD FOR CLIMATE CHANGE.WHO IS RIGHT HERE, YOU OR THEM?

PICKENS: I TELL YOU WHAT, NATURAL GAS IS 80% CLEANER THAN DIESEL, AND YOU FIGURE DIESEL IS FOREIGN OIL.SO WHAT DO YOU WANT TO DO?DO YOU WANT TO SUBSIDIZE OPEC? THAT'S WHAT WE'RE DOING NOW. SO I WOULD LEAVE TAXES EXACTLY WHERE THEY WERE, DON'T FOOL WITH THEM, HOPE WE GET A RECOVERY SOMEPLACE IN HERE AND WE PUT THE RIGS BACK TO WORK AND THE PEOPLE BACK TO WORK ON THE RIGS.

FRANCIS: BOONE, BECAUSE WE GOT TO GO, I WANT TO GET YOUR MONTHLY OIL REPORT.TELL US ABOUT THAT REAL QUICK.

PICKENS: OKAY. ALL RIGHT. WE IMPORTED IN FEBRUARY 62%.THAT COMPARES TO JANUARY'S 67%.DECEMBER, 66%.HAVE WE HAD A BREAK THROUGH? PROBABLY NOT.WE'VE HAD DEMAND DESTRUCTION BECAUSE OF THE RECESSION AND ALL, BUT WE'RE STILL PAYING IT WAS $13 BILLION WAS OUR COST. I WANT TO MAKE ANOTHER -- $13 BILLION FOR LAST MONTH. THAT'S $328,000 AN HOUR. SO THAT'S GOING OUT OF THE COUNTRY.LET ME MAKE THIS POINT. LOOK AT WHAT PUTIN IS DOING. PUTIN NOW IS GOING TO SHUT OFF AGAIN THE UKRAINE AND WESTERN EUROPE.

FRANCIS: BOONE -- I'M SO SORRY.WE HAVE BREAKING NEWS.I'M SO SORRY. THANK YOU FOR JOINING US TODAY. WE APPRECIATE IT. A LOT OF GREAT POINTS





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