T. Boone Pickens Tells Fox Business Network Oil Could Hit $130

In an interview to appear today on FOX Business Network's (

) Bulls & Bears (4 PM/ET), oil tycoon T. Boone Pickens speaks with anchors Liz Claman and David Asman about how the turmoil in the Middle East will affect the price and supply of oil. Pickens says that the price of oil is “going to go up” as a result of the unrest and could reach “$130 a barrel.” Pickens goes onto say that the United States is “headed in the direction to use our own resources” and “at the end of this year, the energy situation for America is going to look a lot different than it does today.” Excerpts from the report can be found below, courtesy of Fox Business Network.

“We don't know where the oil's going to go [in Libya]. Algeria is another 800,000 barrels a day. You start adding these up, these countries that are over there demonstrating and they all have a blueprint for how you kick out these rulers. So sure you could get to $130 a barrel. You're not going to average $130 a barrel this year but all that hurts the global economy. “

“We're funding both sides of the war right now. Why wouldn't we go back to the United States? We have resources here. We don't have to rely on them. Five million barrels a day comes from OPEC and you know really, some very stable places like Venezuela, Nigeria, Libya, down the line you go. It's crazy. People view the United States as not very smart on handling our energy requirements when we use oil from the enemy and not our own resources.”

“It's going to go up. But there's so many unknowns here. You're going to see oil above $100 a barrel. How much can it go above that? Well, what kind of unrest are you going to have in the Mid-East...You're going to see four dollar gasoline this summer and that's going to cause a lot of brouhaha when that happens. But we're headed in the direction to use our own resources. This Congress is working on a bill now to use natural gas for heavy duty vehicles, which is exactly what we should do. And I would say, at the end of this year, the energy situation for America is going to look a lot different than it does today.”

“Last year the price for oil was $80 a barrel. If we average $130 a barrel for oil, we will have wiped out all of the gains we made on GNP since the recession in 2008.”

“If they need money, they're going to produce the oil. If they're going to just try to inflict some kind of pain on the United States or the rest of the world, they'll shut it off. If they shut off a million and a half barrels a day, the Saudis claim that they can cover that loss. I question that. The oil price is going to go up.”

“Well, they're about nine now and I don't think it's easy for them to do. They can't produce 12. They may get it up to 10. I'm not sure they can hold 10 very long.”

“I think probably so. But I can tell you what, you're going to run the cost of gasoline, diesel, electricity, and power. You're going to run it through the ceiling and I can tell you that people that cause that to happen, and the consumer that has to experience those increases. That consumer is the same guy that votes. And I can tell you when he figures out who ran all these costs up on him, he's going to vote against him.”

“China has got the plan. They've loaned money and they're going to be paid back with oil; probably $50 or $60 a barrel. They have a huge advantage. And they have purchased a lot of oil. The Chinese always have a plan.”

“The Cubans aren't going to find much. Off the western coast of Florida, I like that and I think that's a good place for us to look for oil and gas.”

“No, it doesn't. I'm not one for going in there and trying to install democracy because I don't think the people want democracy and they hate us for trying to change what they're doing. And so, consequently I think it's a losing situation. I'd get out Afghanistan, I'd get out of Iraq. I'd come home and let them work on the problem themselves.”