Pickens: Let’s make the switch to natural gas

Four years ago, we kicked off the Pickens Plan and changed forever the discussion of energy in the United States.

From a standing start we attracted 1.7 million Pickens Plan supporters who have been able to keep up a conversation with their state legislators and members of Congress to make sure the issue of reducing our dependence on oil imported from OPEC didn’t become the “Washington flavor-of-the-month” and then forgotten about.

From the beginning, the Pickens Plan was focused like a laser on getting America’s 8 million heavy-duty trucks on domestic natural gas, rather than continuing to run on imported diesel. We have always known natural gas is cheaper and cleaner than imported diesel, but when we began the Pickens Plan, natural gas was considered to be a very limited resource.

At the height of the oil and gas price increases of July 2008, natural gas peaked at $12.19 per thousand cubic feet (Mcf). Today, after the recognition of the amount of natural gas that is available from America’s massive shale deposits, natural gas is selling for under $3.

Using natural gas as a fuel for 18-wheelers was a good idea at $12 per Mcf. Using natural gas as a fuel for over-the-road trucks at $3 per Mcf is cheaper than imported diesel by a full $1 per gallon equivalent.

We are importing about 4.4 million barrels of oil from OPEC nations every day. These are countries that are unstable, unreliable and whose interests rarely align with our own. If we changed our national fleet of heavy-duty trucks to domestic natural gas, we would be able to reduce our need for OPEC oil by 70 percent — to just more than 1.4 million barrels a day.

The cost of OPEC oil is not limited to the more than $1 billion a day we are transferring out of the U.S. economy. We are also paying — almost alone — the enormous costs of keeping several naval battle groups and tens of thousands of ground forces in the region, largely to protect oil moving through the Strait of Hormuz.

Here’s something I’ll bet you didn’t know: About 20 million barrels of oil moves through the Strait every day. The amount of that that comes to America? About 2 million barrels a day — just 10 percent of the oil that comes through the Strait of Hormuz.

OPEC includes countries other than those in the Middle East like Nigeria, Venezuela, Angola and Ecuador, but U.S. taxpayers are bearing the entire cost of protecting that oil coming through the Strait even though we are getting only a small percentage of it.

We will not ever be energy independent and we don’t want to be. Two of our largest trading partners are Mexico and Canada. Rather than talking about energy independence for the United States, we should be building a North American Energy Alliance. We should be helping the Mexican and Canadian economies have a direct, positive impact on the American economy, on immigration patterns, on exports and a number of other metrics.

Using natural gas as a transportation fuel was not an idea that was hatched in Washington, D.C. It was born and nurtured in the natural gas producing areas and at major shipping hubs. It spread to refuse and recycling companies whose trucks — moving at walking speed — are among the least efficient vehicles on the road. It spread to the major West Coast ports, where heavy tractors running back and forth moving containers from one place to another were fouling the air to the point of becoming a health issue for port employees. It spread to major retailers whose trucks move from one distribution center to another and for whom the constant search to squeeze pennies from their costs, running their 18-wheelers on natural gas is a … natural.

Once again, the people of the United States — the 1.7 million Pickens Plan’s army members, trucking companies and the companies that are ramping up their natural gas production capabilities — are way ahead of Washington.

The astonishing growth in the availability of natural gas makes it possible to manufacture fertilizer, chemicals and pharmaceuticals right here in the United States, creating permanent downstream jobs and exporting value-added goods.

During this process I did a college lecture and someone asked me why I was working so hard on the Pickens Plan. I said, “I’m just a patriotic old guy with a good idea.” I got a standing ovation.

My dad used to say that a fool with a plan is better than a genius with no plan. “The problem your mother and I have with you,” he told me, “is you’re a fool with no plan.”

That’s about the way I see the federal government. Happily, after four years, we’re changing the equation and because of their ingenuity, imagination, and business sense, the America people aren’t waiting for Washington, or Brussels or Beijing.

They’re in the process of changing the nature of transportation in the United States. The smart thing for our candidates to do is run as fast as they can to the front of the line and lead the Pickens Plan’s army to victory. The smart thing for voters to do is demand their candidates take this seriously.

— T. Boone Pickens, a Dallas resident, is the architect of The Pickens Plan, a comprehensive energy plan that has been embraced by more than 1.7 million Americans since it was unveiled in 2008.

7 Comments on "Pickens: Let’s make the switch to natural gas"

Rusty Baker on Sat, 4th Aug 2012 10:09 pm 



Natural gas is the fuel of the future. It is a lot cheaper and cleaner than oil and coal. No wonder electric utilities and automobiles are switching over to NG. However, Big Oil and Big Coal are spending millions of dollars lobbying congress to prevent the Pickens Plan from being implemented.

Rusty Baker on Sat, 4th Aug 2012 10:13 pm 



P.S. switching over to natural gas will help the economy grow, create more jobs, and is environmentally friendly. Enough said.

DMMZ on Sun, 5th Aug 2012 12:31 am 



And, if NG is the savior for the moment, will it be 50 years up the road? Even natural gas is a finite supply. The wind will blow longer than NG will last at the present and future rate of consumption.

BillT on Sun, 5th Aug 2012 1:55 am 



Natural gas is enjoying a huge bubble, thanks to the fraking craze. When the dust settles, we will drop back t regular production and the price will rise. Switch now and pay more in the future.

DC on Sun, 5th Aug 2012 7:15 am 



Its strange when a 2nd tier fossil-fuel thats been in use for a century is being hailed as the magical savior of industrial civilization. Of course, it wont, it cant, it might for a short period of time take over in a few places where oil used to dominate, before, NG too, starts to rapidly deplete from careless over-consumption. We dont really need to wait, were over-consuming NG now. Its not clear to me how over-over-consuming NG is going to help us any.

Pickens=NG filled Windbag. Hoping to pick a few extra billion before he cashes out for eternity.

Kenz300 on Sun, 5th Aug 2012 3:58 pm 



Long haul truckers are switching to LNG and saving money on fuel cost. UPS, FedEx, WalMart, Waste Management and others are converting their fleets to use more LNG.

http://business.financialpost.com/2012/05/22/truckers-test-lng-as-transport-fuel/

Kenz300 on Sun, 5th Aug 2012 5:42 pm 



Big oil and coal will do anything to hang on to their monopolies. They are flooding the TV with commercials touting their benefits. Their Republican friends in Congress are doing all they can to block any switch to alternatives or support energy conservation. The oil companies love it when oil prices spike. They make huge windfall profits. It is time to end the oil monopoly on transportation fuels. Monopolies are only good for the monopoly and not good for the consumer. Bring on the electric, flex-fuel, hybrid, CNG, LNG and hydrogen fueled vehicles. We need a choice at the pump.