Well-known billionaire investor Boone Pickens was on CNBC to discuss the new low in natural gas prices and his thoughts on the Buffett Tax.
Natural gas prices, which earlier Wednesday broke below $2, are as low as they'll get, said Pickens. "You’ve got the rig count going down. That’s what you want to watch," he added. Ten to 15 rigs were closed last week, and more will be closed this week. "As the rig count goes off it’s gonna cause supply to shorten up. It’ll take a little while for it to happen," he said.
Pickens has pushed for federal legislation that would put natural gas into commercial vehicles, so he said he was encouraged after hearing Energy Secretary Steven Chu speak at a conference Wednesday about putting natural gas in heavy-duty trucks.
"What a great time to do it," he said, especially when natural gas prices are about half the national average of gasoline at the pump.
He also commented on noise around the fracking process and associated earthquake. He said that is a silly thing and is not concerned.
Here is the video:
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About the author:
Dheeraj GroverI am an individual investor with deep interest in the field of value investing. My ideas and thinking is inspired by highly respected value investors like Ben Graham, Warren Buffett, Walter Schloss, Bill Ruane and Tweedy Browne