Tags: Pickens | Koch | energy | policy

Pickens: Koch Industries to Blame for Lack of US Energy Policy

By    |   Thursday, 03 May 2012 09:21 AM

Special interests have prevented the adoption of a coherent U.S. energy policy, in particular Koch Industries, says legendary oil man T. Boone Pickens.

Koch, led by billionaire brothers David and Charles Koch, opposes any energy plan that would lift natural gas prices, which fell to 10-year lows last month, Pickens says. He’s a big promoter of natural gas usage.

"The biggest deterrent to an energy plan in America is Koch Industries," Pickens tells Yahoo.

"They do not want an energy plan for America, because they have the cheapest natural gas price they've ever had.”

Koch has fertilizer and chemical businesses, which use natural gas as a feed stock, Pickens explains. “So their margins are huge. And they do not want you to have an energy plan, because if you had a plan, then natural gas prices would come up."

Still, Pickens doesn’t see natural gas prices falling further. "It's pitifully low, but you have probably seen the bottom," he says.

Meanwhile, Pickens predicts gasoline prices may well breach $4 a gallon this summer. They currently stand at $3.80 a gallon on average, after nearly reaching $4 last month.

Others agree with Pickens that natural gas prices have bottomed and see that as an investment opportunity.

"Everyone who has a brain should be thinking of how to make money on this in the longer term," Jeremy Grantham writes in a report obtained by The New York Times.

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Thursday, 03 May 2012 09:21 AM
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