T. Boone Pickens says oil may reach $150 a barrel in two years
T. Boone Pickens has been described as a legend within the oil industry. I have seen him interviewed several times over the past couple of years. His predictions about oil prices have been very accurate.
In a recent interview on CNBC, Pickens made the following comment:
“If we do not get on the alternative energy bandwagon and if we don’t have a global recession, we could be sitting on $150 oil in two years.”
Although alternative fuels have gotten a lot of talk over the past couple of years, people have to get hit in their pocketbooks before real change will happen. Well, the time has come.
Wholesale prices were up 7.5 percent over the past year which is the biggest increase in 26 years. Rising costs for food and oil were a big factor behind this. Food costs were up in large part due to ethanol production. And oil prices are higher due to steadily increasing global demand and a peak in the production of conventional crude oil.
The result is that the fuel that powers our cars is having a major negative impact on the economy…today.
Unfortunately, things will only get worse.
As mentioned above, Pickens is predicting much higher oil prices. And as oil prices continue to go higher, more farmers will be financially motivated to switch to producing ethanol. If it makes economic sense for them today, it will make even more economic sense for them tomorrow. Therefore, food prices should continue to rise even more in the future.
When these factors are combined with the rapid development of hydrogen fuel cell vehicles, the hydrogen economy is going to happen a lot sooner than most people think.
