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Hissyspit Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-21-08 04:49 AM
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Alternet: Why T. Boone Pickens' 'Clean Energy' Plan Is A Ponzi Scheme
http://www.alternet.org/environment/95471/why_t._boone_pickens%27_%27clean_energy%27_plan_is_a_ponzi_scheme

Why T. Boone Pickens' 'Clean Energy' Plan Is a Ponzi Scheme
By Scott Thill, AlterNet. Posted August 21, 2008.

The controversial oil magnate has made headlines for a supposed conversion to cleaner energy, but there's ample reason to be suspicious.

"If you are going out of business, you don't go down with the ship, you get another ship. For us, it's natural gas." -- T. Boone Pickens, "Becoming a Billionaire"

You can't always get what you want, the Rolling Stones counseled. But if you try sometimes, you get what you need. Factor billions of dollars, questionable loyalties and a privatization rap sheet invested more in profit than people into the equation, and you usually can get both what you want and what you need. In the case of hyper-loaded oil tycoon T. Boone Pickens, that means having your cake on climate crisis, fossil fuel addiction, eminent domain, water privatization and corporate earnings -- and eating it too.

In July, the oil magnate unveiled a well-publicized campaign, the Pickens Plan, which begins with an obvious premise: "America is addicted to foreign oil." Pickens' proposal to kick the habit is straightforward and simple: "Building new wind-generation facilities and better utilizing our natural gas resources can replace more than one-third of our foreign oil imports in 10 years."

Sounds fair enough, especially given that Pickens and climate-crisis herald Al Gore have melded minds on the issue. But not hard enough, which is where the cracks in the Pickens Plan begin. "(Gore) asked if we could we join together and do something," Pickens explained to Bloomberg News. "I told him no, because global warming is on page two for me. Page one is foreign oil.''

That page seems to be recently written. As previously noted on either side of the red-blue divide, Pickens has funneled millions into 527s like Swift Boat Veterans for Truth, helping derail John Kerry's bid for the White House in 2004. He simultaneously committed hundreds of thousands on top of that to the election and inauguration of both Bush administrations, both spearheaded by fossil fools whose kinship with foreign oil producers not only launched an invasion into an oil-rich but nevertheless sovereign nation, but also nearly tripled the price of oil in seven years and handed campaign contributors like Exxon the most bloated earnings in corporate history.

Sure, Pickens eventually decided to stop funding political campaigns, but that deathbed conversion happened the same July that the Pickens Plan ramped up its nearly $60 million media blitz.

It gets worse. Pickens is currently the head of BP Capital Management, a secretive hedge fund (aren't they all?) that has extensive connections to the magnate's hated "foreign oil" interests. The most glaring example from its investment portfolio is Halliburton, which was once run by U.S. Vice President Dick Cheney, is currently headquartered not in America but Dubai, and whose main business segments and subsidiaries involve oil exploration, construction, production and refining. And that's not mentioning its resume on rampant fraud and corruption, especially in Iraq but also elsewhere, which has so far cost American taxpayers billions.

But Halliburton isn't the only BP Cap holding that stinks. Pickens is also heavily invested in Schlumberger, the world's largest oil services corporation; nuclear and conventional energy powerhouse Shaw Group; the embattled ex-Halliburton subsidiary Kellog Brown and Root and so on. For a very rich man who decries the influence foreign oil has on American life, Pickens sure hasn't put his money where his mouth is. He's put his money where the oil is.

"Even under the Pickens Plan," explains Treehugger's Matthew McDermott, "the U.S. will be importing a significant amount of oil. It's a step toward energy independence in that it expands renewable energy production, but I think framing this debate in terms of energy independence isn't the way to go. If you want to take a populist angle on this, pushing the very real benefits that wind power and renewables in general can have in local economies stands on much more solid ground."

If Pickens were a populist, that might be true. But he's not; he's a stone-cold capitalist whose taste for profit outweighs his desire for the common good.

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grannie4peace Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-21-08 05:17 AM
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1. do you think he would try to screw barack??
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Demit Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-21-08 06:38 AM
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2. The headline is puzzling. What makes Pickens' plan a Ponzi scheme? The article does not explain.
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KharmaTrain Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-21-08 07:56 AM
Response to Reply #2
6. One Fossil Fuel Addiction For Another
He pushes wind power, but its natural gas that is the winner in this "plan". He wants to replace natural gas that is used to fuel power plants and make it the new gasoline in cars and trucks...so we stop paying the Saudis and just shovel all that money his way. He also owns large interests in wind farms in Texas that he could then sell on the "open market" for whatever price he chooses...especially if he can mainpulate the price of natural gas.

A man doesn't throw $60 million out there, especially a robber baron like Pickens, without seeing a big return on the other end.

Some may debate the term "ponzi", but it's definitely a scheme more than a plan...and hang on to your pocketbooks.
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DailyGrind51 Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-21-08 07:16 AM
Response to Original message
3. Pickens wants taxpayers to pay for transmission lines for his windmills!
We wind up paying twice, for transmitting the power he generates and then paying our electric bill for using it! Nice deal -- for Pickens!
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joeglow3 Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-21-08 09:25 AM
Response to Reply #3
7. EXACTLY
There is a candidate here in Nebraska (and I hate to say it, but a Democratic candidated) who is doing the same thing - Jim Esch. His family owns a bunch of land in Colorado where they want to do the same thing for profit. He has MULTIPLE times complained that the government has not paid for the means for his family to transport the energy. Ticks me off because it is obvious he wants the government to subsidize his family's further wealth. We have a hard enough time getting viable Democratic candidates in Nebraska and he is the best we can come up with?
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DailyGrind51 Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-21-08 10:19 AM
Response to Reply #7
10. When are the Ed Schultz's of America going to wake up and realize
that they are promoting the public funding of private profit? Wind and solar energy are free, but they won't be when T. Boone corners the market on production equipment and monopolizes transmission lines that WE paid for! Just because T.Boone is in his 80s, doesn't mean the guy has changed anything. An old rattle snake is just as deadly as a young one!
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SIMPLYB1980 Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-21-08 07:41 AM
Response to Original message
4. T. Boone Pickens. "Making the wind cost you as much as Oil."
At least I think that's the plan. The same will be done for all renewable resources unless the are owned by the citizens of the US not the same damn oil people that got us into this problem to begin with.
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DCKit Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-21-08 10:19 AM
Response to Reply #4
9. And Water, too. Don't Forget the Water. Or the Natural Gas. Or the Oil.
Edited on Thu Aug-21-08 10:21 AM by DCKit
Wind is the lipstick on the pig. The immediate goal is a right-of-way corridor across TX which would provide transport for all of the above. Give him the rights for the transmission of electricity, and he's got everything. Even better, it looks as if he's trying to figure out how to get the tax and ratepayers to fund it.

http://www.citizen.org/cmep/Water/us/bulksales/texas/

"The notorious oilman has acquired land overlying the Ogallala aquifer and wants to pump and sell as much as 200,000 acre-feet of groundwater annually to one of Texas’ metropolitan centers.

A new undertaking by Texas oilman T. Boone Pickens is even more disconcerting. Pickens has been acquiring acreage overlying the Ogallala aquifer with hopes that he could pump and sell the as much as 200,000 AFY of water to one of the state’s metropolitan centers – El Paso, Lubbock, San Antonio, or Dallas-Fort Worth. Ogallala is already severely depleted. The West Texas farmers rely on the aquifer for water. The aquifer’s minimal recharge rate of less then one AFY means that its users are mining fossil water that will not be replenished.

Pickens projects that his prices would be adjusted according to the distance the water has to be pumped: El Paso would pay $1,400 per acre-foot, Dallas would pay $800, San Antonio – more than $1000. Although building a pipeline will be expensive, an estimated $1-$2 billion, these prices are still very high."

http://www.chicagotribune.com/features/lifestyle/green/chi-t-boone-pickens-plan-080708-ht,0,3211333.story

"Corporate raider and oilman T. Boone Pickens has been buying up water rights in the Texas Panhandle in the belief that water is going to become scarce and salable. This follows the logic that climate change, shrinking lakes and rivers and population growth will make increasing portions of the world susceptible to water shortages."

http://environmentalism.suite101.com/article.cfm/texas_oilman_buying_water_wind_turbines

"In order to pump the water to the metro areas, Pickens needs to build a pipeline. And in order to build a pipeline, he needs rights-of-way from private landowners. In Texas especially, where rural landowners tend to be particularly independent and typically unfazed by the predicaments of their urban neighbors, he may face an uphill battle.

Pickens, the consummate businessman, will be pushing forward with his plan, recalcitrant landowners or not. He is merely taking advantage of an opportunity. Texas has one of the fastest growing populations in the country, And four of the 12 largest cities in the U.S. are in Texas. Boone sees a viable and potentially lucrative business opportunity right in his own back yard. However, his plan is more far-reaching that just purchasing water and selling it to population centers."

http://amarillo.com/stories/032705/new_1579093.shtml

""The other interesting feature of this offer," Nickum said, "is a right of first refusal not just as to the remaining 50 percent of the water left in the landowners' possession, but mineral rights. This would include a sale of minerals or a lease of minerals."

Nickum said, for example, if a landowner were approached by an oil company who wants to lease oil and gas, the landowner would be required to give Mesa Water Inc., under its right of first refusal, 15 days in which to match the offer made by the oil and gas company. Mesa Water would have the right to match the oil and gas company's offer plus a 10 percent premium."

http://www.popularmechanics.com/science/earth/4275059.html

"Pickens is in the planning stages of a $1.5 billion initiative to pump billions of gallons of water from an ancient aquifer beneath the Texas Panhandle and build pipelines to ship them to thirsty cities such as Dallas. So far, no city has taken up his water company, Mesa Water, on the offer. But company officials and experts agree that a continuation of the drought impacting large portions of the United States could turn Pickens into something of a water baron. His yet-to-be-built pipeline would follow the same 250-mile corridor as electric lines carrying power from his wind farms. Pickens prompted the creation of a public water supply district, run by his employees, that can claim private land for the pipeline route through eminent domain. (Follow the pipeline's path here.)

A drought has drained water from Texas and much of the rest of the United States. That could make water an increasingly profitable commodity for those who hold the rights. According to his Web site, Pickens owns rights to more water than anyone else. "In general, there's a lot of it, it's just not in the right place," says Robert Stillwell, legal counsel for Mesa Water (and board member of the water supply district), which continues to acquire water rights in rural Texas. He dismisses questions about whether the water would be cost-competitive. For cities looking at their future water needs, he says, "cost becomes irrelevant." As far as Mesa's pipeline snaking across the Texas heartland, Stillwell insists that "it's going to happen, it's just a matter of when.""

Proposed pipeline map:

http://www.robertscountyfwsd.com/pdf/RCFWSDLetter.pdf
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SIMPLYB1980 Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-21-08 10:21 AM
Response to Reply #9
11. Thanks for the links. This "man" is not to be trusted.
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many a good man Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-21-08 07:42 AM
Response to Original message
5. "fossil fools"
I love that line!
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Marr Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-21-08 09:34 AM
Response to Original message
8. Why not just take the Pickens' out of the equation and build a nationalized
Edited on Thu Aug-21-08 09:36 AM by Marr
wind power system? It'd create more jobs and be a net gain for the economy, no billionaire investment required. I don't see why we should socialize the *costs* of building this system, but allow the profits to remain private.
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