Pickens sees $5 per gallon gasoline worldwide

OKLAHOMA CITY – Texas oilman T. Boone Pickens suggested Tuesday that the short-term solution to oil supply and demand problems is high gasoline prices at the pump – perhaps $5 per gallon.

In a speech to civic clubs, Pickens, a native of Oklahoma, said demand for oil is about 85 million barrels a day worldwide, about the same as both supply and refining capacity.

In the foreseeable future, he said, production is coming down at the same time demand will be growing. He said China had doubled its demand for oil in 10 years and the demand will continue to grow.

Pickens, the founder of Mesa Petroleum Co., said demand is so tight that if Iran pulled one million barrels of oil off the market “you’ll have $75 (a barrel) oil in 24 hours.”

AP