Pickens Plan - T Boone Pickens' Plan for Energy

Makes a lot of sense, and who better to engineer a plan than Boone.

At it's heart - we have to expand wind power, where great potential lies in the Midwest. Using wind power for electricity can allow us to shift the use of natural gas from energy to transport fuels.

A (Short Term) Bubble in Oil?

Let's look at a few opinions I've heard over the last couple of days:

• Chuck Butler at the Daily Pfennig believes at least 20% of the current price is speculation driven

• Jeff Clark at The Growth Stock Wire thinks it's time to sell oil stocks now

• T. Boone Pickens (video posted yesterday) says demand is 87 million barrels per day, while the world can only produce 85 million of barrels per day - something has to give, and that's the price, he says

What does everyone think? Does anyone have the onions to short oil right now? Or is that like shorting Yahoo in 1998?

CNBC: Boone Pickens on Oil

BP Capital CEO Boone Pickens thinks we'll see $150 oil before the end of the year. He also bought 10 million shares of Yahoo, following his friend Carl Icahn into the deal.

He also believes demand destruction in oil due the US slowdown is a non-issue, as the rest of the world is compensating for any drop in US demand. Boone also made an interesting point about oil and gas being subsidized in many parts of the world, and thus not as sensitive to price increases.

CNBC Video

CNBC: Boone Pickens' Oil Outlook

"I think I made a mistake" Pickens humbly told CNBC yesterday, referring to his prediction that oil would drop in the 1st quarter.

He sees oil "hanging around here" in the 2nd quarter, and above $100/barrel in the 2nd half of the year. He is also bullish on natural gas, citing it's relative cheapness compared with current oil prices.

This is interesting, because no doubt Pickens knows energy about as well as anybody - and his previous short call on oil was a rare miss. Long energy investors can now take comfort that they are now on the same side of the trade as Pickens.

Also worth noting, he mentions at the end of the interview that he is "not a day trader" and has made his money by picking long term positions and staying out of the volatility. Something to seriously consider in these volatile times.

T. Boone Pickens Short Oil, Natural Gas

Legendary oil investor T. Boone Pickens told CNBC this morning that he is short oil and natural gas. He believes that oil will have a short term pullback.

I was surprised by this - Pickens has been (correctly) calling higher oil prices for quite some time. I'm glad I'm not long oil or nat gas right now - because I wouldn't want to be on the other side of this trade!