Why BUK wants to be present in the USI believe we should be watching the U.S. climate legislation very closely as it may have an impact on BUK.
If the legislation passes, natural gas will play an important role for the U.S to achieve their goals (cut imports from the middle east and cut emissions). This may explain the sudden move from UK to US.
The question is will BUK make untill then?
NEW YORK (Reuters) - Texas oil tycoon T. Boone Pickens said onTuesday he has increased his long oil and natural gas position inrecent weeks.
"It's not my personality to be short," said the billionaire who has made his fortune investing in the oil sector.
Oil prices are likely to be around $75 a barrel by the end of 2009and $85 by the end of 2010, Pickens said, but added that an economicrecovery could boost prices much higher.
"If you have a global recovery, then you could easily be $90 a barrel next year, you could be $100 a barrel," he said.
He also said that he sees the average price for natural gas nextyear at $7 per million British thermal units, up from about $5currently.
The price ratio of U.S. crude oil futures to U.S. natural gasfutures, which widened to a record high in September as oil pricesrose, will likely narrow in the coming years, according to Pickens.
"It will be back (to) 10 to one, probably, in two, three years," Pickens said.
The passage of the U.S. climate legislation currently inconsideration in the Senate is essential for keeping oil prices fromrising exponentially over the next decade, he said.
Without a plan for U.S. energy independence, oil prices could soar to $300 a barrel in 10 years, Pickens said.
Pickens said that he believes the bill will come to a vote by theend of the year and that it will make President Obama's campaign goalsof eliminating dependence on oil from the Midwest in 10 yearsachievable.
"If you do that, then you can cut out Mideast oil in 10 years," he said.