T. Boone Pickens' Crystal Ball...Predicting Oil Prices

Something is up with oil prices and T. Boone Pickens was discussing this on the Fox Business Network with Liz Claman. It is interesting to me that this important subject has not gotten more exposure on business television networks since consumers and companies dependent on gasoline have been concerned by the upward trend. Fortunately, Fox chimed in with one of the industry's leading authorities.

Today, oil closed slightly down at $58 a barrel, but that is not the direction one can expect it to go in the future, according to Pickens. In fact, he believes it will go to "$70 before $50” and that oil will be at “$75 a barrel by the end of the year.”

Concerning the continued stressful situation in both the United States and around the world, Pickens had a great deal to say:

• Concerning the Middle East, Pickens stated that "If Saudi Arabia falls, you will have $200 to $300 overnight. It’s razor thin where you are. When half our oil comes from unfriendly countries, anything goes off track, that’s where you are.”


• On Believing the Obama Administration Will End US Dependence on Foreign Oil, the tycoon showed incredible optimism: “Absolutely...This administration is going to have renewables, no question about it. They are going to reduce dependency on foreign oil. I have had meetings with Speaker Pelosi, [Senate] Majority Leader Reid, and they understand the problem and will get it corrected.”

Other highlights of the Claman and Pickens discussion:

• Pickens expressed concern about the huge number of oil imports, stating "This is more than half the trade deficit [and] has far-reaching tentacles and influence over what goes on in this country, where it has not been exposed or even explained to anybody,"


• Regarding obtaining oil from countries that are potentially hostile (such as Venezuela, Nigeria, and nations in the Middle East): "This is absolutely insane, that this country is dependent on supplies as precarious as Nigeria for instance or Venezuela," said Pickens. "Look at Saudi Arabia: They produce 9 million barrels a day. What we import is greater than what Saudi Arabia produces."


• In sum, the long term predictions are very dire indeed, with Pickens noting "I promise you this is going to get tight, very, very quick," said Pickens. "You're going to be back to $75 oil by the end of the year -- and $200 per barrel within five years."

The 80-year-old oil baron turned alternative energy guru provided interesting insights on an issue that is crucial for consumers and business owners in their decision making. Fortunately, Fox Business Network provided this interview. However, I want to remind the reader that his commentary is colored by his significant investment on alternative fuels. His predictions almost certainly must come true for his investments to pay off accordingly.

In July 2008, Pickens announced his ambitious Pickens Plan which focuses on alternatives such as natural gas, wind, and solar energy. His multi-media efforts to get the US government behind these alternatives are predicted to cost $58 million. This doesn't include the considerable investment that is going to be necessary to create the economy of scale required to make the goal of energy independence possible.

Kevin Price is Host of the Price of Business, the longest running show on AM 650 (M-F at 11 am) in Houston, Texas and on AOL Radio. Eric Bolling of Fox News and Fox Business says that Price’s Blog “is very influential and moves the blogosphere.” Steve Moore of the Wall Street Journal calls Price the “best business talk show host in the country.” Find out why and visit his blog at www.BizPlusBlog.com and his show site at www.PriceofBusiness.com. You can also find Price on Strategy Room at FoxNews.com.

Fox's Super Bowl Coup

Any regular reader of this blog knows I'm a big fan of Fox. All the more so with recent success they enjoyed with the Super Bowl over the weekend.

It was, without question, one of the best games in the history of the game. In fact, it was one of the best games in the history of all games. This is certainly one that is destined to go down in history. It was one of those games where I am sure many called others saying, "you have to watch this."

I was delighted to see that Fox pulled it off without a major wardrobe dysfunction and all the Any regular reader of this blog knows I'm a big fan of Fox. All the more so with recent success they enjoyed with the Super Bowl over the weekend.

It was, without question, one of the best games in the history of the game. In fact, it was one of the best games in the history of all games. This is certainly one that is destined to go down in history. It was one of those games where I am sure many called others saying, "you have to watch this."

I was delighted to see that Fox pulled it off without a major wardrobe dysfunction and all the embarassment and cost (in fines) that can come with that. Yes, Paula Abdul was a little stiff, but she remained in clothes.

The commercials were solid and, thanks to the network's relationship to MySpace.com, people will find those spots archived. that means these commercials will have an after life like we have never seen before. Furthermore, with the commercials strategic location in the world's premeir social network, all the advertisers will be able to monitor public opinon on the spots. This will provide an unprecedented level of research.

Also, Fox had the opportunity to promote its new line up of programming both on TV and online at MySpace (where you see those ads pop up repeatedly).

In the end, Fox was great for the fans and its clients, proving once again why Murdoch is one of the most brilliant people in media today.and cost (in fines) that can come with that. Yes, Paula Abdul was a little stiff, but she remained in clothes.

The commercials were solid and, thanks to the network's relationship to MySpace.com, people will find those spots archived. that means these commercials will have an after life like we have never seen before. Furthermore, with the commercials strategic location in the world's premier social network, all the advertisers will be able to monitor public opinion on the spots. This will provide an unprecedented level of research.

In the end, Fox was great for the fans and its clients, proving once again why Murdoch is one of the most brilliant people in media today.

By the way, you can see that archive of commercials here.

Kevin Price is Host of the Houston Business Show (M-F at 11 AM on CNN 650) and Publisher of the Houston Business Review. Hear the show live and online at HoustonBusinessShow.com. Visit the archive of past shows here.

Are You Smarter Than a 5th Grader?

I'm largely a news junkie, but I occasionally find myself watching what the rest of the family enjoys. Lately, my family enjoys "Are You Smarter Than a 5th Grader?" (photo of one of the many participating students). The hit Fox show has the potential of making someone a millionaire, yet no one has achieved that lofty status. The kids -- all fifth graders -- look rather intimidating and being forced to declare that you are not "smarter than a fifth grader" if you lose would be enough of a deterrent for most sensible people to participate. But still, they seem to have plenty of participants.

I do fairly well each time I watch and I'm surprised by the number who bail out early. My kids say that the show proves how irrelevant modern education is, since people forget so much from their elementary years by the time they become adults. I believe most educators would argue that there is a large body of information we learn in school, that which many would call "cultural literacy." Some would keep some information, while others would remember other information, based on their interests, careers, and other factors.

It is interesting that many of my kids enjoy this show and are learning things they are suppose to be learning in school (something that doesn't always happen), so for that reason I have a some what friendly view of the program. Maybe schools would become far more successful if they conducted classes in a game show studio.

With Friends Like Danny Glover...

There have been no formal announcements as of yet, but it appears that actor Danny Glover is coming close to making a decision for whom he intends to vote for President of the United States. On a local Fox affiliate this morning, Glover was on discussing who he liked for President. He rather handily dismissed Democratic front runners Barack Obama and Hillary Clinton as mere "glamor candidates." They are both attractive and articulate, he argued, but lacked the roots and understanding necessary to meet the needs of poor people. The candidate who does, according to Glover, is former Senator and Vice Presidential candidate John Edwards. He believes the multi-millionaire trial lawyer understands the needs of the poor and is the candidate the nation needs.

Getting love from Hollywood is always very popular among Democrats, so many would translate this as very good news. But Glover is extremely radical, even by Hollywood standards. Following his famous speech in which he referred to President Bush as "the devil," Hugo Chavez (see photo of Glover and Chavez above) went out and met with his good friend Glover. Chavez, the individual who wants to see the US government overthrown and many believe he is supporting the drug trade, appears to be good friends with the one time popular actor. This is the same Chavez who now runs his government by decree and with a parliament that has given him permission to govern as he so desires. Instead of good news, this could translate into the kiss of death for Edwards.

Edwards has decided to take on the radical mantle of the Democratic Party, similar to what Howard Dean attempted to do in 2004. The logic behind this is that all of the other candidates are trying to crowd the safe "middle" positions. The candidate's more radical stands are in contrast to the Edwards who tried to portray himself as a moderate in 2004. There is a saying in politics that now seems to transcend both parties to a certain extent -- campaign to the right, govern from the middle. Edwards has has failed to receive that memo.

In the end, Edwards will likely not be on the ticket at all. I have no idea what cabinet position he desires. He is quickly becoming, especially with friends like Glover, a very small footnote in US political history.