The author of the Pickens Plan had to recant on CNBC during the Oct 30th broadcast.
He said that with natural gas prices being as low as $6.80 dollar per million BTUs. British Thermal Unit
That price is fifty percent lower than in July just a few months previous in 2008.
“I think it is all going to be put off because we have got the credit crunch, one, but, two, natural gas prices [are down], so you are going to price wind off natural gas power and right now natural gas is so cheap there will be no new wind deals until natural gas price gets back up.”, Pickens said.
Pickens added that America should focus on converting thirty percent of our carbon based intake to natural gas by physically converting all of two million eighteen wheelers in the United States to natural gas.
The drop in the price of natural gas has priced his hedge fund out of its competitive edge in the short run, but investors have been bailing causing a valuation loss of sixty percent.
That is roughly two billion dollars worth of invested money pulled. This is also about the cost of his first order of wind turbines from GE.
In the interview on CNBC Pickens focused on the positive effects changing the two million eighteen wheelers over to natural gas irregardless of the fate of his company in the future or its current state of temporary set back.
It’s an easy step and it can happen very, very fast.”, Pickens said in the CNBC interview.
