ENERGY'S PREVAILING WINDS
Klein, Philip
Design a headline treatment for each feature by Tom Bethell Energy’s Prevailing Winds The American Spectator interviews legendary oilman T. Boone Pickens. by Philip klein oil business....
...Protect yourself, your family and all you’ve worked for...
...Ethanol is not going to solve it...
...ANWR they try to compare to Prudhoe Bay, an oil field where the ultimate recovery out of it is 14 billion barrels...
...The cost of the oil sands is incredibly high but necessary...
...Keep that in mind, that’s all it is: 2 million...
...It’s depleted substantially...
...In fact, every three seconds another identity is stolen...
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...It’s just a huge outflow of wealth from this country...
...BP: We’re under way...
...When you go to the oil sands, you should focus on a recent announcement to build a line from the oil sands to the west coast of Canada...
...You’ve got to try to develop everything...
...PK: In the 1970s oil was very expensive, then it went back down...
...The only way you’re going to kill demand is with price...
...The oil sands is a manufacturing/mining operation...
...BP: In the ’70s, there wasn’t a shortage of oil...
...Through the T. Boone Pickens Foundation, Pickens has become one of the largest philanthropists in America, having donated $600 million over the course of his career to medical care, education, and college athletics...
...It has a huge amount of manpower necessary, equipment, everything else and I think the oil sands now are producing somewhere around 1.3 million barrels a day...
...In the late ’90s we had very It’s unlikely that growing production can ever cheap oil...
...If so, it’s time you got to know LifeLock...
...So, anything you can replace with natural gas as far as diesel gasoline is concerned, you cut down on the imports, and natural gas is a cleaner, cheaper fuel that’s available...
...We have leased the land, we’ll put turbines under contract next month, and the question is, where do you take the power...
...I don’t think any of these politicians running for the president of the United States even have a clue what we’re up against...
...why can’t that happen again...
...Normally it’s just $10 a month, but now you can try us free for 30 days and get 10% off...
...Where is it going to come from...
...The game has changed...
...But these are the kind of things that somebody in government is going to have to get involved in and make something happen...
...But, being a geologist, I have some concern over whether you’ve got uranium available to you...
...It has no hope of solving many problems for us...
...That infrastructure should be developed...
...why are you so bullish on wind power...
...Probably a third as much...
...Do you ever worry about identity theft...
...T. BOONE PICKENS: According to the crude oil report, as of today [March 12] we have imported crude oil at the cost for $1.4 billion for the week...
...In 1954, he borrowed $2,500 and joined with two other investors to start a domestic oil and gas company...
...BP: The obvious one is natural gas, and natural gas is a domestic fuel...
...Go look at what has happened in Sweetwater the last three or four years...
...The government would have to give access, right of way, to move that, but you’ll be able to put that huge wind area in the central part of the United States to work...
...It’s also going to be declining at a rate probably of 6 percent a year...
...And ANWR could not go on production for instance if Congress passed something that would allow entry into ANWR in the next session, it would take ten years to go into production...
...It would stop all of that activity...
...You’ll get right at $600 billion a year you’re paying for imported 1 6 T H e a M e R I c a n s P e c T a T o R M a y 2 0 0 8 crude oil...
...So, the 2 million barrel Alyeska line would be 10 percent of what we use every day...
...You can cancel at any time without penalty...
...PK: People have been talking about alternative energy since the 1970s...
...We haven’t even moved ahead in the United States to make sure we capture everything coming out of the oil sands...
...There’s only one source of energy that’s going to make a substantial difference for this country, and it’s wind...
...We’re importing today 14 million barrels of crude and products in the United States, using 21 million barrels of crude and products...
...So, you can’t just go in and develop the oil sands...
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...BP: I’d say in going to renewables, they’d need to have a production credit in place for a number of years, not renewing it every two years...
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...But let’s just say it’s as productive...
...We can’t keep doing that...
...We have that solved...
...do you think licensing more nuclear power plants would be a ing so much crude oil...
...BP: Transmission has got to be solved, there’s no question about that...
...So you need the production tax credit on wind...
...what is different now...
...It’s entirely different today, because you’ve peaked on the oil...
...happen...
...This time next year you’re probably going to have 80 million barrels a day...
...Multiply 52 weeks times $1.4 billion...
...Out of the 85 million barrels a day the world produces, we’re using 25 percent of it, with less than 5 percent of the population...
...That has now declined to about 700,000 barrels a day and they put in satellite production from Endicott and other fields around Prudhoe Bay...
...We should do it...
...why won’t companies see it in their interests to invest in alternative energies without government help...
...PK: How difficult will it be to transmit that power...
...All that oil coming off of ANWR does is fill up that line...
...In the Mideast, they can’t give you any more oil than they’re giving you...
...We’re not in any solar power projects...
...Some people have the idea that ANWR could solve a problem for the United States, which is ridiculous...
...Shortly after graduating from Oklahoma A&M (now Oklahoma State Uni- Tboone PiCkens has sPent a lifetime in the versity) in 1951, Pickens went to work for Phillips Petroleum...
...PK: The New York Times reported that you are going to build a new 150,000acre wind farm for $10 billion...
...That is a 528,000barrel-a-day line...
...And then you look at the two largest oil producers in the world, it’s Russia and Saudi Arabia, and the two largest natural gas producers, and it’s Russia and Iran, and the two largest importers of oil are the United States and China...
...And you need to free up the right of way...
...Nothing is going to solve the problem for us, because we’ve got such a huge appetite...
...We let ourselves down if we don’t capture that...
...We should do everything, because we need energy from all sources and get away from what we’re doing, import2 0 T H e a M e R I c a n s P e c T a T o R M a y 2 0 0 8...
...It doesn’t need much in the way of help from the government...
...You’re just buying somebody else’s products...
...As for the rest of the country, you’re going to have to have some leadership come forward or this is going to be a disaster for us...
...We’ve never seen that before...
...I was There’s only one source of energy that’s going to make a substantial difference for this country, and it’s wind...
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...One option is to go to the wind area in the panhandle of Texas, which is one of the best wind areas of the United States, and move it down to ERCOT (the Electric Reliability Council of Texas) about 250 miles south of us, or we might move it to the West Coast...
...PK: what about nuclear power...
...PK: what about discovering new oil or drilling in alaska or in the oil sands...
...The business would eventually become part of Mesa Petroleum, which Pickens built over several decades into one of the largest independent natural gas and oil production companies in America...
...For the next ten years, America will need about a 15 percent increase over the amount of energy that our country uses now...
...We’re now importing 62 percent of our crude oil...
...How much of the move toward alternative energy is going to have to be aided, at least in the short term, by government subsidies...
...You’re better off to create jobs at home, and recycle the money...
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...TAS reporter Philip Klein spoke to Pickens over the phone about his views on the future of energy...
...The world’s oil production has peaked...
...I understand that argument, but if you’re going to continue to do it as you have in the past, then in ten years you’re going have to burn up $6 trillion...
...The plan is to move that oil into the Asian market...
...BP: What are my other choices...
...But they’ve pretty well gutted everything that’s available to go into that line...
...BP: You can say it’s just free trade...
...The Canadians are openly discussing this...
...Of course, the cost of development has gone up dramatically too...
...Period...
...He also is the benefactor of The American Spectator ’s Young Journalism Training Program...
...Guarantee your good name today...
...PK: what would you say to free trade purists who say it’s not a big deal to purchase products overseas...
...I think the greatest source of uranium is Russia, and they’re no friend...
...But the legendary oilman, who built his fortune by placing timely bets, is now looking at alternatives...
...PK: what are your thoughts on solar power...
...You can say it’s just free trade...
...We’re okay to transmit in Texas...
...They’re the numbertwo provider after Canada...
...by Philip klein oil business...
...After 30 days your credit card will automatically be billed...
...I just said there’s a corridor for solar power from Sweetwater, Texas, to California across Arizona, New Mex ico, and the California border...
...They’re selling about 1.8 million, 2 million barrels a day to us...
...If I were the United States, it would be very disturbing to me to see anybody thinking about transporting any oil from North America to Asia...
...PK: Is it difficult to build transmission lines more because of zoning and energy regulations or because of the amount of capital needed for the initial investment...
...What you’re really focused on is even maintaining production at 85 million...
...To do anything more than 85 million barrels a day is probably hopeless...
...So all those projects in oil sands run up costs several times what they were originally estimated to be...
...They don’t like NAFTA changes that the United States has talked about...
...PK: do you think that now the technologies exist that make things more achievable than they were back when we were talking about energy alternatives in the 1970s...
...You don’t have the option of just turning it on or anything like that...
...BP: I don’t think the ANWR is going to be released to be developed, but you’re familiar with the transportation of crude oil off of the North Slope in the pipeline area...
...At the same time there is a wind and solar corridor that would extend west of Sweetwater, Texas, to the California corridor...
...PK: what should the government’s role be in all of this...
...Canadians don’t like to hear that type of conversation and the people of the United States who are doing the talking about it don’t understand energy, because the last thing you’d want to do is to be at odds with Canadians on NAFTA and have some of that oil cut off from you and let it go to Asia...
...PHIlIP KleIn: why is it so important for america to develop alternative sources of energy...
...That could be replicated all the way from Sweetwater to the Canadian border...
...If for any reason you fall victim to identity theft, we will spend up to $1 million to hire the finest professionals to repair the damage and restore your good name...
...Those days are gone...
...California is a bit more difficult, but transmission has got to be solved...
...It’s the greatest transfer of wealth ever recorded in the history of the world...
...BP: Don’t know anything about it...
...We feel that we’ve got it solved if we move it to ERCOT from the panhandle, we have a right of way that we’re working on at the present time...
...Whenever oil would go up, and activity would start in alternatives, they would make more oil available, and drop the price...
...It’s renewable, it’s green, there’s no question it will work against ethanol originally, but hell, I’d rather have ethanol than I would Saudi oil...
...Do you know what the capacity of that is...
...BP: Well, if you’re going to put turbines under contract, you’re going to have to transmit the power...
...It takes years...
...You don’t push anything off the table now...
...Now supply is capped at 85 million barrels a day and demand is growing...
...BP: I’m for nuclear power...
...BP: Sure, they’re more achievable, because the price is better...
...BP: There’s no question you’re going to have to have the production tax credit...
...It could come from wind...
...The country is desperate for leadership on energy...
...PK: How is planning on the wind farm coming along...
...BP: That will never be repeated, because we’ve had a fundamental change...
...I just can’t believe, I keep saying this...
...That doesn’t get the inter est into it that you need to have, because people are frightened that they’re investing in something that they can’t get help on...
...He left Mesa in 1996...
...But back in the ’70s, you were taking a chance with alternatives, believing that oil prices were going to go up...
...BP: That’s exactly right...
...When activity would start up someplace, OPEC would just provide more oil and drop the price...
...good option...
...PK: so even if we find different sources of oil in different parts of the world, it will take a long time to bring that oil online and difficult to transport it...
...It’s unlikely that ANWR will be as productive as Prudhoe Bay...
...You just have to go balls-out to get it done, and get off of this crude oil...
...At one time that field could fill that Alyeska line, which is 2 million barrels a day...
...Now you’ve got the Democrats talking about taxing it all and they have got the Canadians stirred up [on NAFTA] M a y 2 0 0 8 T H e a M e R I c a n s P e c T a T o R 1 7 e n e R g y ’ s P R e V a I l I n g w I n d s that they’re going to change that...
...You’re going to have to replace 5 million barrels a day every year...
...Last year, Pickens correctly predicted that we would be seeing a $100 barrel of oil, and he recently announced plans to build a $10 billion, 150,000-acre wind farm in the Texas panhandle, which would be the biggest in the world...
...If this country wants to take care of their energy needs and requirements, they’re going to have to make some of this happen...
...Pickens, who turns 80 this May, is still hard at work running his multi-billion-dollar energy hedge fund, BP Capital...
...We’re so confident, we back our clients with a $1 million service guarantee...
...PK: what are some of the more promising alternatives that are out there to power automobiles...
...That’s a must, because it can’t stand alone without it...
...543-3562) e n e R g y ’ s P R e V a I l I n g w I n d s PK: In congress, “alternative energy” often translates into eth anol subsidies or other pork barrel spending projects...
...So, you’re in a bad spot, and you have to get some leadership in getting this country off of the imported oil as our primary energy source...
...It would rejuvenate the Great Plains...
...Design a headline treatment for each feature by Tom Bethell Energy’s Prevailing Winds The American Spectator interviews legendary oilman T. Boone Pickens...
...You go back to 2 million barrels a day...
...It’s renewable, it’s green, there’s no question it will work, and it’s being developed very aggressively now in Texas, western Oklahoma, Kansas, and up in the Great Plains...
...You’re just buying somebody else’s products, but if you’re going to continue as you have in the past, then in ten years you’re going have to burn up $6 trillion...
...All of us, no matter how careful, can become victims of identity theft...
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Vol. 41 • May 2008 • No. 4
