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Boone Pickens on Alternative Energy

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Thanks, if the link at CNBC doesn't work all the time, try http://video.aol.com/video-detail/boone-pickens-on-alternative-energy/3350866335

 

Save you the trouble of watching Boone by summarizing:

Long oil, natural gas, wind and solar, the latter two will supplement natural gas, allowing ng to be used as transportation fuel. Ethanol is a joke (5% energy max). All the politicians are a joke, just trying to get elected or re-elected.

 

Re Boone as DOE secretary: the last time we had CEOs of oil corporations in charge of energy policy ... well we tried that already didn't we.

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Exclusive video of outspoken oil billionaire T. Boone Pickens delivering an insightful, humorous keynote speech at the 2008 Alternative Fuel and Vehicles Conference and Expo in Las Vegas on May 13, 2008.

 

 

Run Time : 41:34

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Another view of the market. All these "pundits" have a position in the market, so nobody is un-bias

Another naked scam that came to fruition today was the artificial shortage created in this week’s oil inventory report, which I said would happen way back on April 18th, when the crooks at the NYMEX canceled all but 22M barrels that were scheduled for May Delivery, over 20M barrels below Cushing’s normal capacity.

 

Not only that, but the "experts" estimated we would have an inventory build this week, when clearly a massive shortage had been created. This led to a "disappointing" crude inventory report today and gave the NYMEX pump crew a chance to test $135 this evening.

 

These jokers were supported by the usual array of talking heads on CNBC, who are now known as the oil apologists network (as every anchor they have just spews industry talking points to anyone who might suggest this particular emperor is less than fully dressed). The new scam they have going is that they now have a series of guests whose talking point is that "oil prices are up because the world consumes 87M barrels of oil a day and produces only 85M barrels." This 2M barrel a day shortfall does indeed sound shocking until you realize that what’s really shocking is that it’s repeated on CNBC two or three times a day and not once does a "newsperson" point out that both OPEC and the Oil Companies (who are testifying under oath today) say this is patently untrue. Also, wouldn’t common sense suggest that if we were short 730M barrels a year that someone might have noticed it? This isn’t just a lie, it’s a massive fabrication aimed at inciting panic of a very profitable nature for energy traders and guests like the recently proclaimed "greenie," T Boone Pickens.

 

And how green is our T Boone? Not very, it seems. Bespoke Investment Group ran a list of Mr. Clean’s holdings and it turns out he’s actually up to his eyeballs in crude.

 

Speculative demands in commodities

With very bold categories in his presentation like "Index Speculator Demand is Driving Prices Higher" Masters lays out a simple and compelling case that illustrates how over $250Bn of speculative money has poured into the commodities markets since 2003, driving the average cost of commodities indexed up 183% WITHOUT ANY SIGNIFICANT INCREASE IN ACTUAL DEMAND.

 

It’s not just oil, there is a chart on page 4 of his presentation that shows how on Jan 1st 2003 sugar futures stockpiled totaled 2.3Bn pounds. On March 12th of this year, speculators had stockpiled 48Bn pounds of sugar. Soybean oil went from 163M pounds to 4.5Bn pounds, corn from 242M bushels to 2.4Bn bushels, coffee from 195M pounds to 2.4Bn pounds. wheat from 166M bushels to 1.1Bn bushels. Even cattle and hogs have had 10-fold increases in speculation. This is your "demand," 10 month supplies of commodities removed from the markets over 5 years and held by speculators who point to the "demand" as evidence of a tight supply - A TOTAL CROCK!

 

Speculators "consumed" as much additional oil as China in the past 5 years (848M barrels) while gasoline stockpiles have risen from 1.1Bn gallons to 3.5Bn gallons and natural gas stored by speculators has gone up from 331M BTUs to an insane 2.3 Billion BTUs. Aluminum - 10x, Nickel - 5x, Zinc - 10x, Copper - 7x, Gold - 10x, Silver - 15x — Madness!

 

"In fact, Index Speculators have now stockpiled, via the futures market, the equivalent of 1.1 billion barrels of petroleum, effectively adding eight times as much oil to their own stockpile as the United States has added to the Strategic Petroleum Reserve over the last five years."

Edited by thrunner

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