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 32,627.97 -234.33 -0.71%
Nasdaq 13,215.24 99.07 0.76%
S&P 500 3,913.10 -2.36 -0.06%
Treasuries 1.73 0.00 0.12%
Data as of 6:29am ET
Company Price Change % Change
Ford Motor Co 8.29 0.05 0.61%
Advanced Micro Devic... 54.59 0.70 1.30%
Cisco Systems Inc 47.49 -2.44 -4.89%
General Electric Co 13.00 -0.16 -1.22%
Kraft Heinz Co 27.84 -2.20 -7.32%
Data as of 2:44pm ET
Overnight Avg Rate Latest Change Last Week
30 yr fixed3.80%3.88%
15 yr fixed3.20%3.23%
5/1 ARM3.84%3.88%
30 yr refi3.82%3.93%
15 yr refi3.20%3.23%
Rate data provided
by Bankrate.com
View rates in your area
Find personalized rates:

Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: © 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 and/or its affiliates.