Boone Pickens told CNN Money that oil prices will be back to $70 per barrel by the end of 2015. Why is he betting against those who say oil will stay low? “Because I know more about it.” He said there were 1,600 (sic) oil rigs operating at the end of 2014. That is down to 700 rigs today, so the oversupply is slowing because there is less drilling. In addition, he said, the Bakken in North Dakota and the Eagleford in South Texas “have already turned over” meaning they are producing less.
“When the price [of oil] goes down, consumers are happy and politicians take credit for it when they don’t even know what they’re talking about.” Politicians don’t understand the oil industry. “Now they’re struggling with whether to export oil,” he said. “Sure, go ahead and export it. The U.S. producer should be able to go into any market he wants to.” He said Congress will have to change the law that limits oil exports – which goes back to the 1970s and the Arab Oil Embargo.
On the Texas economy, Boone said he didn’t think that Texas would fall into a recession because “I don’t think prices are going to stay down that long.” The price drop has impacted lower-wage workers, he said, but “within 24 hours of moving to Texas, a person is a Texan.” He said “the economy is better, the tax structure is better, and it’s easy to do.” If someone loses their job in the oil and gas industry in Texas “there are other jobs because the unemployment rate is around four percent, so there are jobs there.”
“If I were looking for a job,” Boone said, “I’d drive a truck. They’re looking for truck drivers.”