Saturday, September 13, 2008

OIL MAN T. BOON PICKENS & THE ENERGY PLAN

CNN Lou Dobbs interviews oil tycoon T. Boon Pickens. Pickens, on American energy independence, oil and natural gas reserves, and off shore drilling. This interview is interesting, informative, and very very insightful. I recommend if you're interested in the energy issue.



The 2nd video is a presentation by Pickens of what became known as the Pickens Plan for energy independence. Very informative.

1 comment:

Tantor said...

I am not so enamored of Pickens argument. While it's desirable to become independent of foreign sources of energy, I don't see exactly how Pickens expects wind energy to replace 3/7 of oil energy, most of which is used for transportation. I don't seen wind-powered cars in our future, though the vision of tall cars with sails tacking down the freeway is amusing. It's just too expensive to store electricity because battery technology is up against an apparently insurmountable barrier.

The advantage of oil is that it packs the most energy per pound of all the energy sources. All the alternative energy sources are more bulky and expensive. Such a cheap and efficient source of fuel is not going to be easily replaced.

It's interesting to note that Pickens entirely omits the costs of switching fuels, which are considerable and the roadblock to implementing his change.

Also, Pickens claim elsewhere that we are making a wealth transfer to the Middle East, an economically illiterate claim. We are not sending hundreds of millions of bucks to Saudi Arabia without getting anything in return. We are trading bucks for oil. Such a trade enriches both sides. Trade is a win-win proposition. Trade creates wealth.

The point that Pickens does not quite articulate but obliquely touches is that the oil trade enriches and empowers some of the most despicable regimes on Earth, such as Saudi Arabia, and so amplifies its malign influence on the world.