T. Boone Pickens is making news again.
The legendary Texas oilman, 78, who heads Dallas hedge fund BP Capital, told the Forbes CEO conference in Doha that oil production has peaked.
If demand for crude rises beyond the current global output of roughly 85 million barrels per day, Mr. Pickens said, prices will rise to an annual average of around $70 this year to compensate and alternative sources of energy will begin to replace petroleum. ìIf Iím right, weíre already at the peak,î he said. ìThe price will have to go up.î
Mr. Pickens is known for his outspoken manner and has correctly predicted the direction of oil markets in the past. But this isnít the first time he has warned of peak oil, doing so at another conference in May 2005.
Many would disagree with Mr. Pickens, including a number of oil analysts as well as the U.S. government, which says a peak wonít arrive until mid-century. Forbes publisher Steve Forbes also challenged Mr. Pickens, saying in Doha that only political roadblocks stood in the way of increasing oil output.
But Boone, as his friends call him, responded to Mr. Forbes: ìThereís still oil to be found, but not in the quantities weíve seen in the past. The big fields have been found, and the smaller fields, well, thereís not enough of them to replenish the base.î
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http://blogs.wsj.com/energy/2007/03/02/t-boone-pickens-oil-production-has-peaked/
