"They didn't say they wouldn't cut, but OPEC will have to cut and that is what's going to happen. The Saudis
are the ones that make the cut. They can take $70 oil and take it out
10 years they have the cash reserves that allow them to do that. But
they can't do that to the rest of OPEC," added Boone.
Pickens said that the industry assumed that the demand for oil would
increase in 2014, and the actual demand was half. He noted that he
expects that oil will be back at $100 a barrel in 12 to 18 months.
"Are they trying to teach the shale oil producers in the United States
a lesson? No, they're not trying to do that. OPEC likes to be liked,
just like we like to be liked and they will make the cut," he said.
Boone does expect that there will be a decline in permits, given the
turmoil overseas, and that the development will prevent the U.S. from
increasing production next year with the 1,900 rigs that are running
currently. ----------------------------------------------------------
Read more from Mad Money with Jim Cramer
Cramer Remix: What falling oil means to you
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----------------------------------------------------------
As for the threat of Russia to the energy space, Boone commented on the country's sensitivity to oil-related GDP when he said, "To me, Russia is a poor country. They have a couple of assets, and that is it. I put oil and gas as one asset; the other asset is vodka. They don't export that, they drink it. They have one asset that provides for their GDP, and that's oil and gas. They can feel a 10 cent drop."
end partial quote from:
http://finance.yahoo.com/news/t-boone-pickens-tells-cramer-232445405.html
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