Release the T. Boone!
That’s right, whenever they need a Super-Mega Oil Pump they roll out the big guns and no one shoots their mouth off better than that impartial predictor of peak oil – T. Boone Pickens. Mr. T has 59,800 Google pages devoted to his bi-monthly statements that oil will go to $100 – yet EVERY SINGLE TIME he says it, CNBC (Criminal Narrators Boosting Crude) treats it like it’s a story!
Who better to give viewers a "fair and balanced" perspective on energy investing than a man who made $1.6Bn last year on oil and gas plays? Logic would dictate that he probably didn’t make that much money by tying up just a few million dollars in the energy sector so T. Boone is probably the world’s single largest Roach in the Energy Motel yet the wheel him out on CNBC (Criminal Narrators Boosting Crude) whenever they have problems making a technical, like yesterday’s failure to break away from $64.
This is a man who, last April, said $5 a gallon gas would be a good thing for America. What a patriot! A patriot, who, by the way gave $5M in "soft money" to launch "Swift Boat Verterans for Truth" in the last election. Could it be a coincidence that he’s back just when SU, his largest single holding failed to break over $77 after a DB upgrade? Yesterday SU gapped over the descending 200 dma at $75.32 and holding that level is critical to establishing a better chart pattern so keep that in mind as they run his clip 20 or 30 times today. SU MUST have oil over $55 to be competitive with other energy producers, $40 oil would cost that company half it’s market cap at least.
As Options Sage pointed out in comments this morning, what can we really expect from "Financial News" when our regular news is such a joke?
Don’t despair though, the government is cracking down. TXU "may" be fined $210M for manipulating Texas’s electricity market in 2005. Additionally the company is charged with overcharging customers by 4%, adding $80M to their $2.4Bn in profits for 2006. "The $210 million payment recommendation was based on Potomac’s analysis, which found that TXU — the biggest utility in the state by generating plants — submitted bids in excess of its real costs at periods…