Pickens and economics mix like oil and water
Tuesday, July 22nd, 2008
There has been a lot of talk lately about Texas Oilman T. Boone Pickens and his plan to save us all from our “oil dependency.” Today, he outlined his humbly-named “Pickens Plan” before a Senate panel, seemingly adding to his credibility as an expert for solving the energy “crisis.” However, his plan has many faults, starting with the principles used to create it.
Many, including Governor Strickland and Senator Voinovich, are blinded by a politically convenient plan from an industry expert; as a result, they fail to remember (or ignore) both where Mr. Pickens’ strengths lie and where they end. Pickens may know a lot about oil, but this does not mean he knows how energy drives an economy. He has no special ability to predict the results and consequences of his recommendations on this nation’s economic health, for which cheap and efficient energy is crucial. In less than a minute, Mr. Pickens lets slip several insights into his lack of economic prowess—his use of the term “transfer of wealth,” and his wish to “slash our dependency.”
