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 | Expert Opinions |
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T. Boone Pickens: The "Oracle of Oil"
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Photograph by Susanna Howe. The billionaire at his home in Dallas, with his dog Murdock.
The Following comments are excerpts from a Fast Company Magazine article dated Jun. 2008
Fast Company: You argue in your new book, The First Billion Is the Hardest, that global oil supply is slowing.
Pickens: If i'm right, world oil supply has peaked. Existing fields are going to start declining at 5% to 8% per year, and it's like a treadmill: As your production declines, it gets harder to keep up. Look at eh biggest oil field in the world, Ghawar in Saudi Arabia; for every barrel of oil, they're lifting six of water. That means the field has matured. It peaked at 5.7 million barrels a day; now it's 4 million.
Fast Company: What will happen in the next five years?
Pickens: Demand will go up, and price will go up.
Fast Company: Take a stab at what we'll be paying at the pump in five years.
Pickens: Oh hell, that's so far out. Maybe $6 to $8 a gallon.
Dubbed the "Oracle of Oil," T. Boone Pickens is one of the most successful and respected oil men in the world and his predictions on oil prices have been incredibly accurate. Based on his comment in the above article...at the current gasoline price per gallon to oil prices per barrel ratio of approximately 30:1, this would put oil prices at $180 to$240 per barrel in 5 years.
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The World's Billionaires: #1 Warren Buffett
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Stephanie Kuykenal/Bloomberg News/Landov
"It's supply and demand, not market speculation, that's driving oil prices to new heights. In my adult lifetime, up until the last year or two, there's been a huge amount of excess supply of oil available. We don't have excess capacity in the world anymore, and that's why you're seeing these oil prices."
Warren Buffett- June 26, 2008
Warren Buffett, Chairman and CEO of Berkshire Hathaway, is regarded as one of the world's greatest stock market investors. With an esetimated net worth of around $62 billion, he is ranked by Forbes as the richest person in the world as of February 2008.
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The Gospel According to Matthew
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ASPO-USA Denver World Oil Conference/ Matthew R. Simmons- Speaker
"I think the supply is showing some very troubling signs that we might well have already peaked and started down. If we haven't, we are very close to it. Demand on the other hand shows absolutely no sign of slowing down because we are now over $100 a barrel, which I still think is a preposterously cheap price. It works out at just $0.15 a cup. A cup of gas will get a car with six passengers in, with the air conditioning on and go two miles. It's a bargain. In the UK's capital, London, where typically the price per gallon can reach as much as $9, it hasn't deterred motorists from continuing to use their cars. It doesn't seem to have slowed anyone down. It works out as much as $378 a barrel. Yes, I can see oil prices reaching that high."
Matthew R. Simmons February 28, 2008
Bestselling author (Twilight in the Desert: The coming Saudi Oil Shock and the World Economy) and head of one of the largest investment banking firms in the world (Simmons & Company International), Matthew R. Simmons is a prominent oil-industry insider and one of the world's leading experts on the topic of peak oil.
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