Boone Pickens was on CNBC again today. Here are a few sound-bytes:
- Crude oil will be $55-$60 in the fourth quarter.
- Gasoline will be $3.00 per gallon in fourth quarter.(I assume he means national average, it is somewhere around $2.15 now.)
- Oil will never see $40 per barrel again.
- Demand will be 86-87 million gpd in fourth quarter.
- Production is limited to 84 million gpd.
- Expansion of existing refineries could handle any increase in supply.
- We don't need any new refineries because their is no production to supply them.
- The economy may be slowing down, but gasoline sales are not slowing.
He has been an accurate forecaster more often than not. I assume he means that we can draw off of our reserves to tide us over in the 4th quarter, otherwise peak oil is here. He did say something about peak oil, but I didn't catch it. While looking to see if they had anything about his comments on the CNBC site, I didn't find any, but I came across this tidbit:
Including Iraqi production, OPEC's current output would beat levels of over 30 million bpd pumped late last year that took OPEC supply to 25-year highs.
I don't think they have much more than that and they are near peak, despite their claims otherwise.