Innovation and Enterprenuship
Business Today: One of your more recent initiatives has been the “Pickens Plan” for America’s energy future. Could you give a brief overview of the plan for readers?
largest transfer of wealth from one group everyday goes to transportation. So, when to another in the history of mankind. you go after OPEC oil, you have to go after Again, it’s insane—totally unnecessary. transportation. Now, you say, “wait a minWe do not have to do this. So, why does it ute, solar and wind are going to generate happen? Because our leadership has never power, so let’s go to electric cars.” That’s really understood the problem. Neither fine with me. Anything American I’m for. T. Boone Pickens: I got out of Republicans nor Democrats have ever deschool in ’51. I’m a geologist by training, cided to understand the issue well enough BT: So, for instance, the Pickens Plan so I’ve been in the business forever. I think to craft legislation to fix the problem. If calls for increased utilization of our natuI know the energy business better than you go back to 1970, Richard Nixon said ral gas resources. Do we have the resources anybody. that at the end of the 70’s, we would not to make this transition, and how can we The United States has never had an import any oil to the United States. On ensure that these resources will remain afenergy plan, and we use 20 million barrels the day he said that, we imported 24% of fordable in the future—even if they come of oil per day. We produce 7 of that, and our oil. At the end of the decade, we im- from this country? we import 13. We import twice as much ported 28%. We have never gone down. as the country second to us: China. They Up until 2011, our imports have always TBP: Let’s compare the cost of import 5 and we import 13 and have no increased. So, again, it’s insane what we’re equivalent amounts of energy. 1 million energy plan. We’re the only country in the doing. That is the Pickens Plan. Let’s get cubic feet of natural gas is $4.50. It comworld without an energy plan. We need on our own resources and get off OPEC petes against 30 gallons of diesel for $30. an energy plan, and we have resources in oil first. I don’t want to get off oil from So, don’t take the negative attitude that America that we can use. We don’t have to Canada and Mexico. That’s ok. That’s safe we can’t supply enough natural gas. We import that much oil. This year, we will oil. But, OPEC oil is unsafe. You’re buy- have a 200-year supply of natural gas in import about $500 billion worth of oil. ing from the enemy, and you’re paying for the United States. Natural gas costs in the Two-thirds of our trade deficit comes from both sides of the war. United States are the lowest in the world— the purchase of foreign oil. Last week, we the lowest. Now, natural gas producers are announced a trade deficit of $52 billion BT: If I understand your plan cor- thinking very seriously about exporting and $30 billion of that was oil. So, it’s in- rectly, it does go beyond using oil. There is natural gas out of the United States into sane that we’re doing what we’re doing. Of a component to get beyond the fossil fuel. the global market. So now we are going the 13 billion barrels we import, only 5 to export clean (it’s cleaner by 30% than billion come from OPEC. So, the OPEC TBP: Remember what I said. I said diesel or gasoline). It’s cheaper, it’s abunoil is what I’m focused on right now. In get on your own resources. I’m taking dant, and it’s ours. We’re going to export the last 10 years, the total cost of oil from care of the OPEC situation. Then I want the clean, cheap, abundant and import the OPEC was $1 trillion. Going forward 10 to get on renewables, which are wind and dirty OPEC oil. It’s hard to understand years and capping the cost of oil at $100 solar. But, wind and solar do not replace why our leadership hasn’t said, “why aren’t a barrel, it will cost $2.2 trillion. It’s the OPEC oil. 70% of all the oil used in world we using our own resources?”
FALL 2010 BUSINESS TODAY
33