When T. Boone Pickens unveiled his energy independence crusade for America, some people were a little skeptical. After all, he's an oilman, and oilmen are reputed to be selfish capitalists. Many people claim his motives are not pure. He refutes the claim that his plan stands to benefit himself more than the American public with the assertion that he's made enough money. At 80 years old, with a estimated net worth of US $3 billion, his claim seems reasonable. He has also donated millions to philanthropic causes in the last 3 years. Yet it's unclear why George W. Bush wouldn't listen to his causes after he donated millions to Bush's 2004 presidential campaign and its affiliates. It's also hard to ignore the fact that he has a pretty big monetary stake in the companies that stand to benefit most the plan.
The Big Stakes...
- Clean Energy (NASDAQ: CLNE)
It's no secret that Pickens is the "largest shareholder" in the "largest provider of natural gas for transportation in North America.." Obviously, this company stands to benefit from his plan more than any other, and positive news coverage has driven the stock skywards. Since the 'Pickens Plan' first made news in July, shares in Clean Energy are up about 70%. It outperformed its peer companies by a very large margin. The United States Natural Gas Fund (AMEX: UNG), was down 45% over the same period. The TV spots for the Pickens Plan double as advertising for this company and have probably already paid for themselves on the basis of stock valuation. It likely helped land a big contract in the State of California this month (link). Fantastic! - Mesa Power, LLP
This private energy company owned by T. Boone Pickens has already invested US$2 billion in building a wind farm along the Texas Panhandle near Pampa, Texas. The next U.S. president could make public funding available for alternative energy sources. Pickens will do his best to put Mesa Power on the receiving end of these funds as wind power isn't yet competitive on the free market. - Mesa Water Inc.
Mesa Water is a group that represents"Texas Panhandle landowners, led by Boone Pickens". The company recognizes that many areas in the United States face very serious water shortages, meaning clean water will become an increasingly valuable commodity like oil. It hopes to drill for water from the Ogallala Aquifer (an aquifer is akin to a really big underground lake) and pipeline it to markets in Texas as early as 2021. The part of the aquifer that Mesa Water wants to exploit is located underneath the Texas Panhandle, where a wind farm is being built by another company (Mesa Power, LLP). There is one problem however,[The Ogallala source water] is "stranded" because without production facilities and a delivery infrastructure to other parts of the state there is no market for it.
Pickens has a duel-use plan to use land obtained in the wind corridor via Mesa Power and also to install water pipelines via Mesa Water. Speculators say he was unable to buy all the land he needs to build a pipeline (landowners can be a pretty big headache) and will need the government to arbitrate (i.e. force) these land sales.
Pickens is lobbying the U.S. government for subsidies and allowances on all three fronts (wind power, vehicular natural gas and water). He's killing 3 birds with one stone. Right now, Pickens' greatest exploit is the American people for their irrational exuberance in the idea of U.S. energy independence. While motives may not be all that pure, his flair for innovation is something to be admired.
Why the quirky title you ask? Does anyone remember the show "Captain Planet"? "Earth! Fire! Wind! Water! Heart!" All Mr. Pickens needs is an ignition source for his natural gas, and he has it all...
Move over Al Gore, "I am Captain Planet!"
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1 comment:
I remember captain planet. Very fitting.
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