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T. Boone Pickens: Weening U.S. off foreign oil a security issue 06-11-2009 12:40 am

By LAURA LAYDEN  

Legendary Texas oilman T. Boone Pickens speaks at a gathering of the Association for the Study of Peak Oil and Gas Friday, Oct. 19, 2007 in Houston. Pickens sees the price of oil hitting $100 a barrel perhaps as soon as the fourth quarter but certainly sometime next year, a consequence of daily global production reaching its peak.

Associated Press

Legendary Texas oilman T. Boone Pickens speaks at a gathering of the Association for the Study of Peak Oil and Gas Friday, Oct. 19, 2007 in Houston. Pickens sees the price of oil hitting $100 a barrel perhaps as soon as the fourth quarter but certainly sometime next year, a consequence of daily global production reaching its peak.

— T. Boone Pickens has put his energy – and a stack of his own money – behind a plan he says will help ween Americans off foreign oil.

He calls it the Pickens Plan and it finally appears to be gaining steam. He discussed the plan Tuesday at the Global Financial Leadership Conference, held at the Gulf-front Ritz-Carlton, Naples.

“It’s about America,” he said. “It has nothing to do with politics.”

Pickens, a billionaire and chairman and CEO of BP Capital, said he’s spent $62 million of his own money to tell his story and push his energy plan.

“The problem is the security of America,” he said. “That’s where I come from.”

The U.S. imports 70 percent of its oil and much of it comes from “countries that hate us,” he said.

His solution? To start, he’s pushing to get the country’s 18-wheelers to switch from diesel to natural gas. There are 6.5 million of the trucks in the U.S. and if they all make the change within seven years that could cut the country’s dependence on foreign oil from OPEC – the Organization of Petroleum Exporting Countries – in half.

If President Obama gets behind the plan he would be the first president to reduce foreign imports of oil, Pickens said.

Bills are moving ahead in both the House and Senate that would provide incentives for using natural gas as a transportation fuel. The companion bills are named the NAT GAS Act of 2009. Pickens is confident the legislation will pass, making it possible to get the heavy-duty trucks running on natural gas. He sees that as just a first step to reduce the country’s reliance on foreign oil.

“All you’ve got to do is get this rolling down the hill,” he said.

Vast amounts of natural gas are now available in the U.S. because of new drilling techniques, Pickens said.

He’s the largest shareholder in Clean Energy, the largest provider of vehicular natural gas in North America.

While he may stand to benefit from his plan, Pickens insists that he’s pushing it so hard because of his concerns about security in America — and a drive to finally bring change to the country’s energy policy.

In the area of alternative energy, there has been a lack of leadership and cheap oil has discouraged change, Pickens said.

He said 85 million barrels of oil are used a day around the world. The U.S. uses 21 million barrels a day and 13 million of those are imported, Pickens said.

The U.S. uses 25 percent of all the oil, though Americans make up only 4 percent of the world’s population, he said.

He predicts that in a few years gas prices will be back up to $4 and $5 a gallon. The supply has reached its peak and the world is using more oil than it’s producing, he said.

He said to other countries it looks like the U.S. is not very smart because of how much oil it uses and its heavy reliance of foreign supplies.

China is preparing to develop an oil field in Iraq, though it’s the U.S. that has spent so much money fighting a war there and has lost thousands of soldiers trying to restore order in the country.

“We do look stupid in the way we do business,” he said.

He said his plan will put people back to work in the U.S. “It will be a good deal,” Pickens said.

Pickens was one of many speakers at the Global Financial Leadership Conference, presented by CME Group, the world’s largest futures and options exchange.

Other speakers included Paul Volcker, chairman of the White House Economic Recovery Advisory Board, Fareed Zakaria, host of a weekly international program on CNN, and Chrystia Freeland, U.S. managing editor of Financial Times.

Mike Ditka, a Pro Football Hall of Famer and Super Bowl winning coach, and Dan Marino, a former quarterback of the Miami Dolphins, were the featured speakers at an American Heroes luncheon.

It’s the second year the conference has been held in Naples.

“We think it’s a beautiful site,” said Laurie Bischel, director of communications for CME Group.

About 200 financial leaders from around the world attended the event, which wraps up today. It focuses on topics and trends in the financial markets.

Connect with Laura Layden at www.naplesnews.com/staff/laura_layden.

www.naplesnews.com

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