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T. Boone Pickens, the billionaire chairman of BP Capital LLC, talked about the impact of turmoil in the Middle East on oil prices and the need for new U.S. energy policy on Bloomberg Television's Surveillance Midday. He said that the world's spare capacity was shrinking to worrying levels that would give OPEC little ability to quickly meet demand, meaning that prices would have to climb high enough to stop people using more oil:

You've got a similar situation to 2008, with extra supplies available in this market possibly less than 1 million barrels (per day) now. The Mideast is in real turmoil. It's on fire. The price can go anywhere. You're gonna see oil go up from here, and how high up I can't tell you, but if it went to 120, if it went to 150, that could all happen.

Pickens believes that the problem is ourselves, not the Middle East or Canada, and he wants President Obama to develop an energy plan:

Wait a minute, blame ourselves! We're the problem. Those people are just selling oil. We've gone 40 years and never had an energy plan. We're the largest user of oil in the world. We use almost 25% of all the oil used every day with 4% of population and we have no energy plan. Let's focus on ourselves. We're the problem.

Pickens is extremely bullish about the following stocks, giving them the highest weight in his portfolio:

Company

Ticker

Value (Million)

CHESAPEAKE ENERGY CORP

CHK

23

BP PLC

BP

23

MCMORAN EXPLORATION CO

MMR

20

WEATHERFORD INTERNATIONAL LT

WFT

20

PLAINS EXPL& PRODTN CO

PXP

19

QEP RES INC

QEP

17

EOG RES INC

EOG

16

SANDRIDGE ENERGY INC

SD

14

SUNCOR ENERGY INC NEW

SU

14

NOBLE CORPORATION BAAR

NE

12

DEVON ENERGY CORP NEW

DVN

12

NATIONAL OILWELL VARCO INC

NOV

11

OCEANEERING INTL INC

OII

11

HALLIBURTON CO

HAL

11

DAWSON GEOPHYSICAL CO

DWSN

8

Pickens added 140,000 shares of CHK during the fourth quarter, making it the largest position in his portfolio. That was a very shrewd move: CHK has gained 34% so far in 2011. His second largest position, which he added during the third quarter, is British Petroleum. John Griffin’s Blue Ridge Capital, John Burbank’s Passport Capital, David Einhorn’s Greenlight Capital, and Whitney Tilson’s T2 Partners also have large BP bets.

His fourth-largest position, Weatherford International, is favored by Dan Loeb’s Third Point and Barry Rosenstein’s Jana Partners. His fifth largest position, PXP, is liked by billionaires George Soros and Leon Cooperman.

Source: T. Boone Pickens' Extremely Bullish Energy Bets