Pickens: Cut drilling to boost gas price

On February 2, 2012 — No comments

Energy tycoon T. Boone Pickens on Wednesday argued that the only way to bolster US natural gas prices and cut the market’s massive oversupply is to stop drilling, according to a report.

Pickens, 83, an outspoken champion of using natural gas for transport, made the comments after his company Clean Energy Fuels announced a deal with truck maker Navistar to make more natural gas vehicles and build more fuelling stations.

Natural gas prices fell to 10-year lows early last week, increasing the attractiveness of the fuel to power vehicles relative to diesel and gasoline, as record high supply swamps the market during one of the mildest winters on record.

But the widespread use of the fuel in transport will not move prices substantially. That is in the hand of producers, the billionaire corporate raider said, Reuters reported.

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