T. Boone Pickens: Biggest Deterrent To U.S. Energy Plan Is Koch Industries

Investor T. Boone Pickens has made a fortune over the years running an energy-oriented hedge fund, and in recent years he's been placing big bets on the natural gas and wind industries.

The 83-year-old founder and CEO of BP Capital has been one of the most fervent supporters of natural gas, promoting its usage throughout the country and trying to convince lawmakers, including President Obama, that natural gas could be the energy solution that ends the nation's dependence on foreign oil.
The U.S. has an abundance of natural gas, which is found in rock and shale formations. Booming production and growing investment in the field has led to a natural gas supply glut, pushing the price down nearly 50% over the past 12 months. A new government report found that natural gas held in storage is 55.4% above the five-year average. Although natural gas prices have rallied more than 20% in the past week, prices are still down 19% since Jan. 1 and are hovering near 10-year lows. Pickens predicts that the downward spiral may finally be over.
"It's pitifully low, but we have probably seen the bottom," he tells Aaron Task at the Milken Institute Global Conference in Los Angeles.
As for gasoline prices, Pickens says they could easily reach $4 a gallon this summer. Gasoline prices have dropped more than 12 cents per gallon in the last four weeks. The U.S. average price of unleaded gasoline hit a peak of $3.941 a gallon on April 2. U.S. oil prices have fallen 3% in one month. One reason for the unexpected drop in prices is the relaxing of tensions between Iran and the West over Iran's nuclear energy program.
According to The New York Times, tighter economic sanctions on Iran has led to a resumption of direct negotiations with Iranian leaders, therefore reducing the possibility of conflict. Pickens says Iran played a small role in the rise of global energy prices. While he isn't expecting an imminent attack on Iran, if one were to take place, he believes it would be initiated by Israel in the late summer or early fall.

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