Our Terms of Service and Privacy Policy have changed.

By continuing to use this site, you are agreeing to the new Privacy Policy and Terms of Service.

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 17,812.19 19.51 0.11%
Nasdaq 5,102.81 0.33 0.01%
S&P 500 2,089.14 2.55 0.12%
Treasuries 2.24 -0.01 -0.31%
Data as of 5:49pm ET
Company Price Change % Change
General Electric Co 30.66 0.07 0.23%
Pfizer Inc 31.97 0.64 2.04%
Bank of America Corp... 17.47 0.00 0.00%
Freeport-McMoRan Inc... 8.30 0.30 3.75%
Apple Inc 118.88 1.13 0.96%
Data as of 4:00pm ET
Overnight Avg Rate Latest Change Last Week
30 yr fixed3.93%3.87%
15 yr fixed2.99%3.03%
5/1 ARM3.28%3.36%
30 yr refi3.98%3.93%
15 yr refi3.06%3.07%
Rate data provided
by Bankrate.com
View rates in your area
Find personalized rates: