T. Boone Pickens: Peak Oil is Here and Our Middle East Oil Dependency Needs to End

Texas oil man—and now octogenarian wind power activist—T. Boone Pickens, in an interview with Amanda Little posted at Mother Earth News, says that the world has already reached peak oil and that the U.S. better end its Middle East energy dependency pronto:  

Pickens doesn’t believe that technology breakthroughs will open up new frontiers for oil. “The oil just isn’t there — no technology can change that,” he says. “And with China and India pushing up the global demand, new discoveries just can’t keep up with it.” Pickens is personally offended by the fact that his native country has become so thoroughly dependent on Middle Eastern oil. “It’s sheer lunacy that we’re sending our money to the Arabs,” he told me, adding that, “In the era of peak oil, the U.S.A. is sucking hind tit.” Translation: We’re the runt that will suffer most when the oil runs low. “The U.S. spends $700 billion annually on foreign oil — money that’s going largely to our enemies. Our attitude has been ‘Send us oil, never mind the price or the conflict.’ That’s gonna cripple the hell out of this country. I can’t stand around and watch that happen.”

And Pickens thinks that savvy land owners should start thinking about wind generators on their properties as a smart way to make money:

[W]ind is a perpetually renewed resource with no declining production curve, meaning it doesn’t have the price volatility of oil. “Say you have a wind turbine on your land that does $20,000 per year. It’s just blades on a post — simple machinery, easy maintenance — but it’ll be blowing out there for, oh, a century, maybe more. Over time it generates $2 million for your family, that single machine. It’s a whole different scenario than an oil well that produces for a few years, and then it’s done for.”

 Here’s Pickens talking to CNBC:

And here he is talking about peak oil:

About Santi Tafarella

I teach writing and literature at Antelope Valley College in California.
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3 Responses to T. Boone Pickens: Peak Oil is Here and Our Middle East Oil Dependency Needs to End

  1. negconvexity says:

    Any discussion about oil prices over the next decade must include an attempt to quantify emerging economy demand as an important driver at the margin. Here is a simple thought experiment using Chinese demand to give some idea of the magnitude of the supply issues we face:
    – China moves from 3 bbls/person/year to the South Korean per capita consumption level of 17 bbls/person/year
    – Transition takes 30 years
    – No peak in global production

    In next 10 years we must find 44 million BOPD. If you superimpose peak production on top of this demand profile using the following parameters oil prices would increase approximately 250% in real terms over next 10 years:
    – Oil demand elasticity of -0.3
    – Current production 84 million BOPD, current price US$ 80
    – Peak production 100 million BOPD
    – Post peak decline rate of 3-4%

    If you want to try the model for yourself using your own assumptions it can be found at: http://www.petrocapita.com/index.php?option=com_content&view=article&id=128&Itemid=86

  2. Tom says:

    T Boone Pickens is an oil tycoon – began pushing natural gas and now wind…….is that not just a tiny bit suspicious? Not that he would start spreading gloom (and misinformation) to help his current money making cause….
    Note that oil companies (and our friend T-bone) made HUGE profits while the economic meltdown was help along by high oil prices….with not a sign of ‘shortage’ anywhere. http://www.mresearch.com/pdfs/397.pdf
    This guy is a snake. By the way, we get more oil from Canada and Mexico than the Middle East:
    http://www.eia.doe.gov/pub/oil_gas/petroleum/data_publications/company_level_imports/current/import.html

  3. TEd says:

    The old economies of western europe and recent north america, USA, are now in decline. But where is the mass of USA armed forces…in the middle east ready to take it over. Western elites plan to move into the region permanently if not already there, aka Dubai ?. The old economies are dead and over populated these people, the elites will leave the old and not so old worlds behinds to start a new empire from the middle east. Using what is left of the oil controling the worlds economy from there and finding new energy in the mean time. In the event of a nuclear war between west (UK, USA) and Russia china these contries would be ultimately destroyed bu the armies of the USA mostly out of north america will start the new post peak oil world in the midddle east. As the joke goes, george bush jnr said there where now muslims in star trek because it was in the future. But in reality a mix of elites will rule a secular or different religious groping in this area after ww1111.

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