T. Boone Pickens was on CNBC’s Squawkbox program this morning to discuss President Obama’s call yesterday to increase the use of natural gas as a principal transportation fuel in the United States.

Pickens, who announced the formation of The Pickens Plan on Squawkbox in the summer of 2008, said that the President now agreed with him that utilizing domestic resources was the only way to significantly reduce our dependence on OPEC oil and the only domestic resource to do that was to move heavy-duty trucks and fleet vehicles from imported diesel to domestic natural gas.

Watch below.

As evidence of the bipartisan support for using domestic natural gas as a principal transportation fuel for heavy trucks and other fleet vehicles, Senators Richard Menendez (D-NJ) and Richard Burr (R-NC) jointly issued a statement supporting President Obama’s call for more investment in natural gas vehicles.

Menendez and Burr are co-authors of the NAT GAS Act of 2011.

Menendez stated:

“Our bipartisan bill will create jobs and lower transportation costs and do so without adding one dime to the deficit. This is exactly the kind of bipartisan proposal we should be able to pass, even in an election year.”

Burr added:

“Natural gas represents a way to boost our nation’s energy security and help free us from our over-reliance on foreign oil, and I am pleased to hear that the President is committed to working with us on this effort.”

President Obama Las Vegas, NV. The Las Vegas Revew-Journal summarized his remarks this way:

In a visit to a UPS facility this morning, President Barack Obama praised the shipping company for “leading by example” in converting its long-haul trucks to use liquefied natural gas instead of diesel fuel

To read the entire release by Senators Burr and Menendez, including a summary of the NAT GAS Act, click HERE.

– The Pickens Team

This op-ed by John Podesta and Tom Steyer appeared in the Wall Street Journal 1/24/2012

In the hubbub around the president’s decision not to approve the proposed Keystone XL pipeline between Canada and the United States, Americans missed the big picture. While conservatives have been fighting to build a pipeline to import more foreign oil and deepen U.S. dependence, the U.S. is poised to transform its energy portfolio by developing domestic resources—renewable and mineral—that will let it become a net exporter of clean energy and energy technology in this decade.

Under President Obama’s leadership, we appear to be at the beginning of a domestic gas and oil boom. After a four-decade decline in oil production, the U.S. is now producing more than half of our oil domestically. This can free us from our addiction to foreign-sourced barrels, particularly if we utilize our dramatically larger and cheaper natural gas reserves. Natural gas now costs the equivalent of less than $15 per barrel, versus the $100-plus barrels we import from the Middle East.

There are critical environmental questions associated with developing these resources, particularly concerning methane leakage and water pollution. Yet as long as we ensure high regulatory standards and stay away from the riskiest and most polluting of these activities, we can safely assemble a collection of lower-carbon, affordable and abundant domestic-energy assets that will dramatically improve our economy and our environment. Under President Obama’s watch, increased domestic production from developing these reserves has already created 75,000 new gas and oil-production jobs since 2009. And we have much further to go.

At the same time, the U.S. is well on its way to becoming a global clean-energy leader. America is the largest clean-energy investor, after reclaiming this title from China last year. Our companies make over 75% of all venture investments in clean technologies world-wide. Overall, because of U.S. public and private investments in clean energy—including renewables, efficiency, transportation and infrastructure—the clean economy grew by 8.3% from 2008 to 2009, even during the depths of the recession.

Expanding these clean-energy investments is good economics. Several technologies, such as solar power, are already cost-competitive with fossil fuels, even without considering the health and other costs of pollution. And they will help preserve and expand America’s middle class, because energy investments are a particularly effective method of “insourcing” manufacturing jobs, which in turn spur jobs in invention, installation and maintenance.

Such jobs provide a strong middle-class income to workers who have technical skills beyond high school but who lack a four-year college degree. What’s more, U.S. clean-energy investment shows moral leadership, as we combine our advanced energy strategies with strong safeguards to protect our citizens and our planet from polluters and the worst impacts of global warming.

Our clean-technology edge is due in no small part to the business community’s overwhelming response to specific policy tools—from government investment in research and development to targeted tax incentives to spur renewable energy manufacturing and installation. For instance, the Production Tax Credit, first passed in 1992, has generated massive amounts of new growth in the wind industry, a sector employing 85,000 Americans. But each time Congress allows this credit to expire after a mere two years, investment grinds to a halt, giving our global competitors the advantage in innovation, manufacturing and installation. The Production Tax Credit is set to expire again this year.

If we want to cement our status as a leader in the global marketplace, we must extend clean-energy programs like the Production Tax Credit and revive the Manufacturing Tax Credit, which helps factories retool for the clean-tech sector. Such programs will give clean-energy entrepreneurs the assurance they need to invest and expand their businesses.

The leadership that Americans are asking for is within our reach. Our economy can go from being weighed down by oil imports to soaring ahead, powered increasingly by domestically produced clean energy, and energy services and technology. The Obama administration has taken a smart approach, but Congress must now work with the president to secure our leadership position going forward.

Mr. Steyer is the founder of Farallon Capital Management LLC. Mr. Podesta, a former White House chief of staff for President Clinton, is chairman of the Center for American Progress.

T. Boone Pickens was the guest host on CNBC’s popular business program “Squawk Box” this morning.

Among the items Boone discussed was the Pickens Plan, our vast domestic supplies of natural gas, and the introduction of the NAT GAS Act (S. 1863) in the Senate this week.

At the conclusion of the hour, Boone was asked to sum up his thinking about oil and natural gas.

Speaking about OPEC oil supplies he pointed out that King Abdullah of Sauda Arabia is in his late 80’s and not in good health. The Saudis produce 9.7 million barrels of oil per day and if “Saudi production starts to get squishy, the price of oil will shoot up and we may be looking at $300 to $500 a barrel.”

Boone also pointed out the amount of money it costs Americans to protect OPEC oil - the Fifth Fleet and divisions of ground troops should be added into the total cost which, “If you go back and look at all the costs for the last ten years, it’s more like 7 trillion counting army, navy, marines and everything else.”

He concluded by saying the “Pickens Plan is just one small step to energy security and energy independence. It isn’t going to solve the problem, but you have got to start in the direction of a solution, not just sit here and import more and more OPEC oil.”

“You could solve the problem. You could do it in five years and jobs would be a big part of it,” Pickens said.

The highly respected Pittsburgh newspaper, the Post-Gazette, published an essay by T. Boone Pickens entitled “In Search fo the Perfect Fuel.”

In that op-ed, Boone described the activity of the U.S. Department of Energy as spending “billions of dollars trying to find the perfect fuel.”

He said the Department’s focus has been “30 years from now” but “we need a plan that can make a difference in 30 months, not 30 years.”

Boone points to natural gas - and especially the massive amounts of natural gas which are available in the Marcellus Shale deposits - saying it might not be a perfect fuel but “it comes closer than anything else we have right now.”

He writes that natural gas is: plentiful, relatively easy to transport, cleaner than coal or oil, cheap, and is a domestic energy source.

He writes that the U.S. House is considering a bill (H.R. 1380) which has over 180 bi-partisan co-sponsors. The Senate is expected to have a similar bill introduced shortly.

Boone says fracking is a proven technology but a half-century of experience “does not absolve the industry of communicating honestly and openly with the public.”

To read the entire op-ed click HERE.

– The Pickens Team

T. Boone Pickens appeared on the Fox Business Channel to discuss his plan to utilize natural gas as a step in helping build a national energy plan.

Boone said that the Nat Gas Act (H.R. 1380) and an expected Senate bill are a product of working with Washington which is always “slow going.”

He said the Department of Energy should be helping solve energy problems facing Americans today but “they’re talking about energy 20-30 years in the future.”

Boone said that heavy trucks will go to natural gas because it is cleaner than diesel and “two dollars a gallon cheaper” but that the government could jump start that process and help get it done in five years.

To see the entire interview on Fox Business click HERE.

– The Pickens Team

In his monthly update on the level of foreign oil imports in the U.S., energy expert T. Boone Pickens said that the U.S. imported 57 percent of its oil, or 333 million barrels in October 2011, sending approximately $36.4 billion, or $816,086.64 per minute, to foreign countries, including OPEC nations that ultimately threaten U.S. national security.

Importantly, the per month cost of foreign oil has grown nearly $10 billion in the last two years, as the U.S. paid $26.5 billion in October 2009, $28 billion in October 2010, and $36.4 billion in October 2011.

Pickens said:

“Foreign oil dependence continues to be an overlooked, yet fundamental barrier to economic recovery. Domestic natural gas is the only resource that can elevate the country from our economic turmoil by creating hundreds of thousands of American jobs and redirecting foreign oil money back into the hands of American businesses.

“In addition its transformative economic potential, natural gas also has the benefit of being cleaner, cheaper, and more abundant than oil. When you consider all of this, it is unbelievable that our country keeps sending billions of dollars to OPEC nations for a foreign resource that is more expensive and does not make us safer or create jobs here in America.

“Increasing the use of domestic natural gas in heavy-duty and fleet vehicles can immediately create 400,000 good jobs, as well as cut our dependence on OPEC by half. There are no other measures America can take that will have an effect as immediate and profound. This is a unique and powerful opportunity to turn the tide, and I cannot urge our leaders strongly enough to embrace it.”

– The Pickens Team

The Tulsa “World” newspaper has published a brief summary of T. Boone Pickens’ unwavering efforts to have the U.S. Congress enact energy legislation which will foster the use of domestic natural gas as a transportation fuel.

The “World” writes, “The Holdenville (OK) native has spent $82 million to promote the Pickens Plan since July 2008, amassing 1.7 million followers online …”

Read the entire article HERE.

– The Pickens Team

What’s the No. 1 issue in America today? Jobs.

What do all presidential candidates claim they can create? Jobs.

So why aren’t Americans using more domestic natural gas as a transportation fuel?

That’s the question a leading economist is asking. University of Maryland business professor Peter Morici is a former chief economist at the U.S. International Trade Commission. Like T. Boone Pickens, Morici sees every hard-earned American dollar that ends up going overseas to purchase goods and services as an impediment to our country’s economic recovery. Instead of serving as a catalyst to the American economy, expenditures on foreign goods have negligible impact.

This is especially the case with Chinese consumer goods and foreign oil, which account for almost the entire U.S. trade deficit.

“The trade deficit is the most significant barrier to jobs creation and growth in the US economy,” Morici wrote in a commentary for Dow Jones Newswires. “Simply, the U.S. economy suffers from too little demand for what Americans make, and every dollar that goes abroad to purchase oil or Chinese consumer goods that does not return to purchase exports is lost purchasing power that could be creating jobs.”

One of Morici’s possible solutions is a principal tenet of the Pickens Plan, namely, the use of natural gas for fleet vehicles. According to Morici, if Washington fails to show some leadership and address this issue, then America will remain mired in these economic doldrums for quite some time:

“The failure of both the Bush and Obama administrations to develop abundant domestic oil and gas resources and address subsidized Chinese imports are major barriers to pulling down unemployment to acceptable levels.”

People are struggling in these tough times, and Ohio’s congressional delegation recognizes this ongoing economic malaise, but the majority avoids putting a stop to the tens of billions spent monthly on foreign oil, even subsidizing oil companies.

Is anyone surprised by a gigantic debt crisis and trade deficit when the tab for June’s oil imports came to $39 billion while Congress recently voted to continue subsidizing petroleum?

Legislation called the Nat Gas Act calls for tax credits for natural gas vehicles and refueling properties. Critics claim that tax subsidies must be avoided, seeming to use the phrases subsidy and credit interchangeably. However, subsidies are not tax credits. Subsidies are line items in the federal budget costing precious tax dollars, while credits are a type of stimulus costing taxpayers nothing. Why did so many in Washington vote to continue tax subsidies to big oil if they are serious about reducing the nation’s debt and improving our balance of trade? Tax credits add nothing to the nation’s debt.

Greater use of natural gas means jobs for Ohio. Ohio has abundant natural gas, so the Natural Gas Institute has predicted 30,000 jobs for Ohioans if this legislation passes. These paychecks ripple through our economy creating more jobs.

Natural gas is cheaper than petroleum. Currently, the cost of natural gas as a fuel is $2 per gallon. Of course, natural gas measures are different from petroleum, but equivalent calculations show that its cost is roughly $2 cheaper per gallon than petroleum. The U.S. spends close to $40 billion monthly to import oil.

Natural gas is the cleanest of fossil fuels, cleaner than oil and coal. The Sierra Club, our nation’s preeminent protector of the environment, has endorsed responsible drilling for natural gas.

Natural gas is abundant in the U.S. This means that if the Nat Gas Act passes, the U.S. would not need to import petroleum from countries like Saudi Arabia or Venezuela. Dependence on these nations for oil keeps the U.S. under the thumb of countries that don’t like us.

Don’t let federal politicians continue support for oil subsidies. Our government can stimulate business creation and increased hiring by using tax credits like those contained in the Nat Gas Act.

It will take a Herculean effort to get these Washington partisans to work for the American people and not their party or themselves. Please call your representative and join the Pickens Plan, which promotes the use of natural gas in vehicles.

Veronica Gold
State leader, the Pickens Plan
Bowling Green, Ohio

(Summary by CNBC Web Producer Drew Sandholm)

The U.S. could soon solve its “OPEC problem,” billionaire energy investor T. Boone Pickens said Wednesday, if only Washington understood the magnitude of the country’s resources.

“We need to understand resources in America are abundant,” Pickens said. “All we have to do is have a plan. We have no plan. We’ve never had an energy plan in America.”

Pickens spoke with Cramer on a special episode of “Mad Money,” which was broadcast from North Dakota. The state currently produces more than 400,000 barrels of oil a day by way of a public-private partnership. U.S. lawmakers could implement a similar plan, but Pickens doesn’t think they understand just how much oil North Dakota and other states have, much less comprehend how much oil is being produced.

Pickens remains optimistic, though. He thinks the U.S. House could pass the Natural Gas Act (HR 1390) this year. If signed into law, it would give subsidies for manufacturers to produce natural gas-powered vehicles over the next five years.

To see the entire segment on CNBC, click HERE

J.J. Pirko, of Weathersfield, Ohio (near the Ohio-Pennsylvania border) has published an op-ed in the Warren (OH) Tribune in which he writes,

For almost three years, I have been promoting our region’s achievements and potential through the Pickens Plan organization, a network of entrepreneurs, inventors and activists.

Pirko points out that natural gas can come from many sources

We are turning “garbage gas” and “sewage sludge” into electricity; an algae biofuel plant is planned where a steel mill once stood. [Nearby, a company] is attempting to convert coal into aircraft and diesel fuel. Another company is preparing to de-polymerize recycled plastic into oil, and the list keeps building.

Natural gas is also produced from sewage treatment sludge, agricultural waste and landfills naturally fermenting garbage.

Mr. Pirko reviews some of natural gas’ successes

We already have the technology to convert trucks, buses and cars to run on methane (natural gas) that is a proven, practical alternative for petroleum-based motor vehicle fuels. The trucks serving the Port of Los Angeles and many major metropolitan bus fleets have converted to natural gas, because it reduces air pollution in smog-filled cities.

He calls for the passage of H.R. 1380 (The NAT GAS Act) because

Energy runs our economy, and we are developing it here.

To read the entire essay click HERE

– The Pickens Team

Candy Johnson, of Jamestown, New York, had a letter to the editor published in the Jamestown Post-Journal on the need for Congress to pass the NAT GAS Act.
She wrote:

Conserving fuel is a good thing for many reasons, most importantly for the environment, but being forced to change our driving habits because of our growing dependence on OPEC oil, is not.

Ms. Johnson also urged others to join her to contact their individual Member of Congress

to encourage them to be a leader in Congress who is helping to reduce what may be a half trillion dollar transfer of wealth from the United States to countries like Saudi Arabia, Nigeria, Venezuela and Angola.

To read the entire letter to the editor, click HERE .
– The Pickens Team

One June 25, 2011 The New York Times published a news article claiming that the reports of vast amounts of natural gas which had been made available by the drilling process of hydrofracturing (fracking) were highly exaggerated. You can read the article HERE.

The outcry from academic, government, and industry experts led the Times’ “Public Editor” to issue a response. The Public Editor, currently Arthur S. Brisbane, is an independent “ombudsman” who is, by contract, free to take to task other editors, reporters or, for that matter, readers in an attempt to untangle disputes.

Mr. Brisbane wrote a scathing analysis of the natural gas article which said, in part:

The June 26 article, written by Ian Urbina, was clearly intended to offer that kind of signal [that claims of huge natural gas reserves were 'headed for a fall'] and specifically invoked “Enron,” “Ponzi schemes” and “dot-coms” in the early paragraphs.

He went on to point out that

“the story painted its subject with an overly broad brush and didn’t include dissenting views from experts who aren’t entrenched on one side or another of the subject.”

You can read the entire evaluation by Mr. Brisbane HERE.

In the NY Times of Sunday, August 7, 2011 a group of letters regarding the original article and the Public Editor’s response to it. Among those who wrote was the host of CNBC’s Mad Money Jim Cramer. Here is his letter:

Thank you for calling attention to Ian Urbina’s confused reporting about the transformational oil shale business and his insistence that natural gas executives may be exaggerating the reserves.

First, there is an immense glut of natural gas in this country, as witnessed by the failure of natural gas to spike in record cold and record heat, as it always did before the shale discoveries.

Second, we now have discovered so much natural gas in this country that oil and gas companies are mothballing gigantic facilities that were built to import natural gas from overseas. Many industry executives now expect that we will be exporting natural gas, as our production costs are now the lowest in the world.

Third, Mr. Urbina asserts that shale production falls rapidly after a short time. Actually, the production has increased over time and the initial projections in all the major shales have gone up, and up dramatically, from their initial discoveries. Fourth, both national oil companies and major integrated oils, including Korean, Japanese, Chinese, Norwegian and Indian companies as well as Exxon Mobil, have spent tens of billions of dollars buying up domestic shale properties.

Could all of these entities be wrong and Mr. Urbina right? I don’t think so.

JIM CRAMER
Host, “Mad Money” on CNBC

– The Pickens Team

Virginia Governor Signs Alternative Fuels Bill

Virginia Governor Robert F. McDonnell has signed into law a bill which requires the Commonwealth to move aggressively to changing its official fleet of vehicles to alternative fuels.

According to the description of HB 2282, the new law:

“Requires the Director of the Department of General Services in conjunction with the Secretary of Administration and the Governor’s senior advisor on energy to develop a plan for the replacement of vehicles in the centralized fleet with vehicles which operate using natural gas, electricity, or other alternative fuels.”

Changing fleet vehicles – whether government, utility vans, express delivery trucks, municipal buses, or taxicabs – to natural gas or other alternative fuels is a hallmark of the Pickens Plan which has been promoted by T. Boone Pickens since July 2008.

Fleet vehicles tend to go home to “the barn” each night and so are easily refueled at a central facility.

Natural gas vehicles (NGVs) are cheaper to operate because natural gas costs about 20 percent less than gasoline or diesel; they emit 20-30 percent less greenhouse gases and, because natural gas is a domestic resource, state taxpayers are not helping to fund governments in Saudi Arabia, and Venezuela.

Boone Pickens has met with a number of Governors – in all sections of the nation and of both political parties – to help them better understand the value of utilizing atural gas as a principal fuel for state-owned vehicles.

To read the entire summary of HB 2282, click HERE.

– The Pickens Team