Legendary oilman T. Boone Pickens thinks the days of oil under $100 a barrel may be gone.His answer is wind of course.
T. Boone Pickens, our favorite Texas-oil-baron-turned-wind-wildcatter, has placed an order for 667 wind turbines from GE for a total cost of $2 billion. The turbines will have a generating capacity of 1,000 megawatts, enough to power 300,000 homes. The order was made through Pickens’ Mesa Power for his Pampa Wind Project in the Texas Panhandle, which he aims to turn into the world’s largest wind farm, generating some 4,000 megawatts of power as early as 2014.Problem is there are no transmission lines. Thousands of miles of expensive transmission lines would have to be built from west Texas and the Panhandle to Houston and Dallas. No problem, taxpayers and consumers will pay $60 billion (they say) to hook up Boone's turbines to the grid (PDF file).
The scenario presented consists of approximately 19,000 miles of new 765 kV transmission lines. This mileage includes existing 765 kV project proposals, such as ETT’s CREZ project in the ERCOT region and others in MISO and PJM. The rough cost of this plan is estimated to be $60 billion in 2007 dollars. This figure assumes a $2.6 million per mile 765 kV line cost, as well as an additional 20% for station integration, DC connections, and other related costs. These costs are ballpark estimates created without the benefit of detailed engineering and should be considered as such.Which gets back to the Grauniad story. With oil and gas plunging, the plans for his taxpayer-subsidized investment won't be economically feasible. The $2 billion he shelled out for wind turbines will be wasted. Do you want to know why the "days of oil under $100 a barrel may be gone"? Because Boone has taken a shellacking over his failed bets and like the Russians and Saudis he is desperate to keep the bubble inflated.
The commodity half of oil tycoon T. Boone Pickens's BP Capital hedge fund lost 35 percent of its value in July, the New York Post said, citing sources.Casey is firmly in the Pickens camp. Peak oil is here, we're running out of it, pee on the Dollar. Is there any better contrarian indicator than Casey?
The fund is believed to be down about 10 percent for the year, the paper said.
A Pickens spokeswoman told the paper that commodity-fund investors were informed that the steep decline in natural gas and oil prices has had an adverse impact on its performance.