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To Download a PDF of an Interview with T. Boone Pickens, Founder, BP Pickens’ Purpose An Interview with T. Boone Pickens, Founder, BP Capital EDITORS’ NOTE T. Boone Pickens Is it possible to create a true If you put the heavy-duty 18-wheel trucks left the company he founded, Mesa energy policy without Washington on natural gas, you can knock out 75 percent Petroleum, in 1996 and formed BP coming onboard? of OPEC. Today, we’re in the Middle East, pro- Capital, an energy-focused hedge The gasoline price has been very tecting the 70 million barrels a day of oil going fund dealing in both commodities stable, so there isn’t much pressure. through the Straights of Hormuz, even though and equities. He is the architect of Gasoline is where the pressure devel- only 10 percent of that comes to the U.S. We the Pickens Plan to enhance U.S. en- ops as gas prices go up. It has been protect it for the cartel, which is OPEC, and the ergy security through an expanded quiet on that front, and as long as it’s rest of the world takes advantage of our protec- use of renewables in power gener- quiet, there probably will not be an en- tion of OPEC oil. ation and by increasing the use of ergy plan. How critical is the North American America’s abundant supply of lower- I believe at some point, there will Energy Alliance and how realistic is that plan? cost, cleaner-burning natural gas in have to be an energy plan because the Very realistic. Canada and Mexico have the heavy duty transportation applica- T. Boone Pickens resources in America are so abundant oil, and it’s available to us. tions to replace OPEC oil/diesel/gas- that the federal government needs to We don’t have to be in the Middle East. I oline. He argues that OPEC dependency is a key understand what is here and available to the don’t see that we have friends there. We’re doing threat to the U.S. economy and national security. country. it because it’s what we have always done. On the other hand, as long as everything is Does the public really understood that COMPANY BRIEF BPC is a Commodity Pool going fairly well, we should leave it alone and this industry drives the economy? Operator and General Partner for the BP not try to get government involved in it. This is Maybe others are not as vocal as I am as to Capital Energy Fund, L.P. (“the Energy Fund”), what is going on today. what the industry does, but it’s huge. A great part and TBP is a Commodity Pool Operator and I just think at some point that you need to of economic recovery was possible because we General Partner of BP Capital Management, put North America together and develop an en- have the cheapest oil, natural gas, and gasoline L.P., the General Partner of BP Capital Energy ergy alliance with Canada, Mexico, and the U.S. in the world. That will give you an economic Equity Fund II, L.P. (“the Equity Fund”). When you do that, you won’t need OPEC oil. boost. Collectively, TBP and BPC are referred to as For oil purchased from some members Is enough being done to spur entrepre- BP Capital (bpcap.net). BPC and TBP are pri- of OPEC, I’m convinced that some part of the neurship in the U.S.? vate investment fi rms that focus on investments money gets into the hands of the Taliban and I think so. The government can’t do a lot in energy futures and stocks of public compa- Al-Qaeda. But apparently, Washington doesn’t to spur entrepreneurship. America has more en- nies in various energy sectors and energy de- believe it’s important enough to focus on. trepreneurs than anywhere else in the world. I pendent industries. So we’ll see as it unfolds, but heavy duty wouldn’t worry about whether they’re being en- trucks are going to go to natural gas because it’s couraged or not; they are. How has the U.S. progressed on an energy $2 per gallon cheaper. Early on, were there times you weren’t plan and how close is it to making that Whether we’ll have an energy plan for sure your plan would work? a reality? America or not, I don’t know. Sure, I had those feelings, but I didn’t give I wanted some help in Washington on that Are your beliefs well understood? up, even when I failed. I knew it would work – it front and didn’t get it. However, the energy plan I’m for anything American. Despite what is all depended on me. is still unfolding pretty nicely because the whole said publicly, I’m not opposed to the battery – Will there be a point when you feel the gas industry has done an unbelievable job of you just can’t move an 18-wheeler with a battery energy you put into this fi ght will have paid developing gas reserves and production for the so it takes it off the table. But you can replace off? country. diesel with natural gas. I think I’ve gotten my money’s worth. We It could have happened faster, but my I’m open for debate and available to dis- have been successful with the Pickens Plan. primary focus was to get natural gas on cuss the issues, but my story is use your own We’ve educated the country on energy, and heavy-duty trucks. The component that was des- resources. The countries that are able to use their the national security and economic risks tied to perately needed was the right engine, the 14-liter. own resources are doing well. OPEC oil. Cummins now has one in production and there Natural gas is 30 percent cleaner than die- What makes for a successful CEO today? is good demand for it. sel – and it’s cheaper, abundant, and ours. There are a lot of people qualifi ed to do We came in early with the idea, and the Your plan certainly makes sense, but something, but not all are leaders. I don’t know path has pretty well followed what we said would for those who haven’t come onboard, is it why they’re successful or not. Leadership is happen – we are developing our own resources frustrating that they don’t get it? something you can’t train, but to watch a good and getting off of OPEC oil. It is, but nobody will take me on in a de- leader can give one a lot of insight into how you Is the progress in line with the Pickens bate and take the other side of the issue. Natural conduct yourself and what you can accomplish. Plan from 2008? gas is just too logical. It’s cheaper and cleaner, Universities have courses in leadership and The fact that natural gas is cleaner, cheaper, to start with, so why would you buy oil from there is a lot picked up in those classes, but a and abundant has made it work. OPEC? true leader is going to get there.• VOLUME 37, NUMBER 2 POSTED WITH PERMISSION. COPYRIGHT © 2014 LEADERS MAGAZINE, INC. LEADERS 29.
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