Boone Bails | Russell T. Rudy Energy LLC
“World Oil” cites a report by Bloomberg saying that Boone Pickens, who has made and lost fortunes in the oil industry for the last 40 years, has cashed out. Pickens referenced the loss of 250,000 jobs and reductions in capital spending of over $100 billion as reasons to believe that in the long term, production will fall and prices recover.
While he feels that the industry has reached its low point, he cautions, “Just don’t get in a rush here. You’re going to have plenty of opportunity. The market is going to be volatile. It’s not going to go straight up, so there will be good entry points.”
Pickens began selling off his oil and gas interests in the third quarter of last year and says he won’t start re-investing in the industry until crude inventories start to fall. Commercial stockpiles have risen to more than 500 million barrels for the first time since the East Texas oil boom of the 1930’s.
In the interview with Bloomberg, Pickens concludes, “I will not re-enter, I’m sure, until we start to draw on inventories. That’s a key point.”
To read the article in its entirety, please go to http://www.worldoil.com/news/2016/2/05/t-boone-pickens-cashes-out-on-oil-awaits-time-to-get-back-in .
