$148 Oil A Possibility - T. Boone Pickens
T. Boone Pickens thinks a $148 barrel of oil is a distinct possibility should the economy increase at the current clip. However, he says we are dealing with two distinct markets, and so far the domestic oil industry has done "a great job" on limiting the exposure of the domestic market from what he says is far more expensive fuel overseas.
"We have 20 percent lower gas in the United States compared to other countries. Our natural gas is 80 percent cheaper," he told CNBC in a morning interview on Squawk Box. "I do not know what people are complaining about."
He referenced current daily consumption of 20 million barrels in the US. "If you are producing about 8, importing 10 to 11 million barrels a day - and that is imported oil is expensive." he continued. "If you supply more oil from the United States, you cut the price of oil here. It is two separate oil markets, no doubt about it."
Pickens believes a production ramp-up in oil as well as natural gas is needed to protect the domestic markets from equalizing energy costs with global markets.
(c) 2013 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.