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Location: Pantego, Texas, United States

Tuesday, July 08, 2008

T. Boone Pickens, the oil man, says that we can't drill our way out of the current situation. So he is going to put up a few thousand windmills in the Texas Panhandle to have an installed capacity of 2 GW. Windmills, at best, are on line about 1/3 of the time, so the wind generation capability must be backed up by some other form of electricity generation. As best I can tell, Texas has about 100 GW of electric power so clearly, we need soething besides wind power. I wonder about T. Boone. He has been talking about $150 per barrel oil for a long time, and now mentions $200 per barrel. I think T. Boone is in the same situation as the major oil companies: he has a lot of oil in the ground that he would like to sell at a high price. Why should he bother with investing money to drill for more oil that will just reduce the value of that that he has in the ground. This is the reason that liberals misunderstood the situation with George Bush and the oil companies. Liberlas thought that Bush wanted to drill to help the oil companies, but the reality is that the major players didn't want to drill; they wanted to cut the supply so that they can make large profits with no effort. That clever maneuver is why the CEO of Exxon got a $400 million bonus. The reality is that Bush wanted to drill, but the big oil companies didn't much want to.

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