Boone Pickens’ new plan to break OPEC’s grip on U.S. energy markets

Published: February 27, 2013 Comment on this article

For the past few years, Boone Pickens, who lives in Dallas, has been promoting his plan to wean the country off foreign oil. Critics are quick to point out that Pickens’ agenda would promote his investments in natural gas and a company that makes natural gas vehicles. Others call that putting his money where his mouth is.

photo - An undated photo provided by the Energy Department shows a silhouetted technician working on one of the Reserve's wellheads at an undisclosed location on the U.S. Gulf Coast. The United States' emergency fuel tank -- the Strategic Petroleum Reserve is almost full for the first time since its creation about 30 years ago. (AP Photo/Energy Department)

An undated photo provided by the Energy Department shows a silhouetted technician working on one of the Reserve's wellheads at an undisclosed location on the U.S. Gulf Coast. The United States' emergency fuel tank -- the Strategic Petroleum Reserve is almost full for the first time since its creation about 30 years ago. (AP Photo/Energy Department)

His most radical proposal is also the most interesting: eliminating the Strategic Petroleum Reserve. The reserve was created 40 years ago in response to the Arab oil embargo, and like many of our energy policies, it’s rooted in decades of dependence and a presumption of scarcity.

The 700 million barrels in the reserve were amassed at an average price of $28 a barrel, which means the government stands to make a nice return on its investment, assuming it disposes of the reserve carefully.

Read the rest of this post on the original site »

H/T: FuelFix