T. Boone Pickens: Natural gas has bottomed

@CNNMoneyInvest May 1, 2012: 11:13 AM ET
Expect $3 natural gas in a year. Click chart for more prices.

Expect $3 natural gas in a year. Click chart for more prices.

LOS ANGELES (CNNMoney) -- Natural gas prices may have finally bottomed out, after hovering around 10-year lows for weeks, said energy magnate T. Boone Pickens.

Prices have slowly started creeping above the $2 mark after settling below that level just a couple of weeks ago.

"The price for natural gas has smoothed out pretty good," Pickens told reporters on the sidelines of the Milken Institute Global Conference in Los Angeles. "I think it's bottomed."

Pickens said he wouldn't be surprised to see natural gas prices at $3 in a year's time. That would be welcome news for companies such as Chesapeake Energy (CHK, Fortune 500), Devon (DVN, Fortune 500) and EOG (EOG, Fortune 500) that have been trying to cut production.

These companies have been hampered by higher oil prices since many natural gas producers simultaneously produce oil from the same wells.

Pickens also thinks oil prices will continue to rise.

"I think you're going to find oil will get pretty tight this summer," he said. "The Saudis don't have as much oil as they say they do."

Pickens says that anything Saudi Arabia produces above 10 million barrels a day will come from storage and not new production. And it could come just as demand heats up.

Pickens forecasted prices for Brent crude -- Europe's benchmark -- to hit $150 a barrel by this summer.  To top of page

Index Last Change % Change
Dow 16,960.57 -123.23 -0.72%
Nasdaq 4,449.56 -22.54 -0.50%
S&P 500 1,978.34 -9.64 -0.48%
Treasuries 2.47 -0.04 -1.59%
Data as of 3:42pm ET
Company Price Change % Change
Facebook Inc 75.19 0.21 0.28%
Apple Inc 97.67 0.64 0.66%
Bank of America Corp... 15.59 -0.03 -0.19%
Ford Motor Co 17.62 -0.22 -1.23%
Applied Materials In... 21.23 -0.52 -2.41%
Data as of Jul 25
Overnight Avg Rate Latest Change Last Week
30 yr fixed4.32%4.27%
15 yr fixed3.29%3.27%
5/1 ARM3.34%3.47%
30 yr refi4.29%4.24%
15 yr refi3.26%3.25%
Rate data provided
by Bankrate.com
View rates in your area
 
Find personalized rates:
Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer Morningstar: © 2014 Morningstar, Inc. All Rights Reserved. Disclaimer The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2014 is proprietary to Dow Jones & Company, Inc. Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. FactSet Research Systems Inc. 2014. All rights reserved. Most stock quote data provided by BATS.