Pickens Plan no longer includes wind
The more I learned about his “plan”, the more it seemed to be an obvious natural gas play, which was really a convenient way for him to make a ton more money. Now he’s no longer pretending.
The new Pickens Plan calls for Congress to pass legislation that will incentivize the conversion of 18-wheel trucks to compressed natural gas (CNG). This conversion, according to a report on msnbc.com, would “cut in half the amount of oil imported to United States,” if just eight million of the tractor-trailers in the United States switched to CNG.
So what’s the issue? Well, some are saying Pickens’ 45% ownership in a company called Clean Energy Fuels is his sole motivation. Clean Energy Fuels makes natural gas filling equipment for buses and other large vehicles.
The issue is that Pickens basically wants the federal government hundreds of millions, if not billions, of dollars for something he ought to be doing his damn self.
The other issue, is that no one is really sure what would happen if we started use that much more natural gas. Sure it’s cheap now, but it wasn’t a few years ago. And it’s subject to the same volatility as the oil market. However, if there were some kind of domestic supply crunch, we’d be pretty screwed because it’s much harder to import natural gas than it is oil. From my point of view, natural gas now has the upside (pricewise) that oil had 10 years ago. 10 years ago (maybe 12 now), we were practically awash in oil and a gallon of gas was selling for well under a dollar. But that suddenly changed and we ended up paying through the nose. The same thing will happen with natural gas.
In other words, in terms of downsides, pick your poison.