If so why is there a Build in crude? Did you ask T Boone how much his Crude oil investment is underwater?
You better off asking why a Build in crude when USA had disruption for over two weeks, and how much he is down in his investments.
I'm a big proponent of the Pickens Plan, or most any alternative energy plan for that matter.
That said, it's evident to me that he takes every opportunity to spew alarmist rhetoric to advance his plan. If he wants to maintain credibility he needs to stop running his mouth.
One thing that's become clear to me in the past several years is that the energy markets are full of bullshjt artists and I don't trust any of them. Pickens is about to join this group, if he hasn't already, if he doesn't shut up.
I just don't see how it's possible to say Demand is 87 B unless, there specifically a 2 B shortage in the world and/or every year the world is cumulatively reducing oil stocks by 2 billion barrels.
Obviously, the US does not have a crude oil shortage (we have a gasoline shortage in some areas due to lack of refining capacity due to the hurricane but no crude oil shortage)
Since I'm assuming that the US has one of the largest stockpiles of crude oil in the world and (as of the week ending 9/26/2008) our crude stockpiles are 27 million barrels below a year ago levels - 321.8 million barrels compared to 294.5 million barrels as reported in the weekly inventory report, I find it hard to believe that the rest of the world accounts for the rest of the 1.97 billion in excess demand over supply and/or shortages.
If someone else wants to tell me how you measure oil demand in excess of supply, I'm open to being taught, but I don't see how Pickens can say "We traded 85 billion barrels of oil last year, but consumers demanded 87 billion.". It seems arbitrary to me.
"We traded 85 billion barrels of oil last year, but consumers demanded 87 billion."
Pickens PR campaign is not a public service message. It is a marketing campaign for a return on HIS investment.
Here is a key question to ask ourselves: Who placed orders for that 2 billion and didn't get fulfilled?
Rules of Supply and demand raise prices in order to allocate enough of a scarce resource to fulfill demand (all orders).
That 2 billion in demand simply wasn't willing to pay but they sure wish (demanded) they had it!