T. Boone Pickens: Proving to Be Hot Air About Wind Energy

T. Boone Pickens: sounds like a name for a cartoon character from Looney Tunes. But the man has made a fortune for himself in the world of energy, and at one time appeared to be looking to the renewable sector as well.

An American financier who became famous in the 80's for his cutthroat acquisitions of independent oil and gas companies, Pickens has also made news in the past for his supposedly keen interest in renewable energy. So much that he announced an investment of $2 billion in purchasing nearly 700 wind turbines form General Electric to create farms in the Texas panhandle. An investment that boasted a massive 4,000 megawatts of power by 2014.

So what happened? And what appears to be the motivation behind Pickens' actions?

In a Nutshell:

It started in 2008, when Pickens offered up the Pickens Plan--his surefire means of reducing American independence (and addiction) on foreign oil by using wind energy to displace natural gas from the national grid, and then using that displaced gas to fuel America's vehicles.

The pillars of his plan:

• Create millions of new jobs by building out the capacity to generate up to 22 percent of our electricity from wind. And adding to that with additional solar generation capacity;

• Building a 21st century backbone electrical transmission grid;

• Providing incentives for homeowners and the owners of commercial buildings to upgrade their insulation and other energy saving options;

• Using America's natural gas to replace imported oil as a transportation fuel in addition to its other uses in power generation, chemicals, etc.

In his mind, Pickens saw this as the only way to compete with oil, and wean America from it. One could not rely on renewable energy alone, but had to find ways to use it alongside fossil fuels--especially when it came to transportation.

Not a surprising opinion from someone who has and continues to make their fortune from the fossil fuel industry. But not necessarily a horrible idea when looking for methods of transition.

So, What Happened?

Pickens proffered a superficial and unsustainable plan that contained far more problems than it did solutions. And the cost would have been extensive. The Pickens Plan did little to invest in vehicle efficiency, opting rather to place heavy emphasis on converting vehicles and service stations to be suited for natural gas usage.

And the dependency on natural gas is grossly substantial--which is, by the way, a fossil fuel with only marginally better emissions than oil.

As for his wind plans, one year later and suddenly the 687 wind turbines were reduced to 300, and then to zero. That's right, no wind farms for Texas--at least not from Mr. Pickens.

Pickens declared his cancelling of the enormous Texas wind farm for the foreseeable future, scrambling to figure out where to place the 687 wind turbines that he already ordered.

The project was largely done-in by major problems with electricity transmission. Wind farms and other forms of clean energy are usually located in remote locations and require huge new transmission lines to carry the electricity to cities. Mr. Pickens initially hoped to finance the construction of his own transmission lines but was unable to secure funding.

Pickens has stated that he is far more interested in natural gas than wind energy because it is cheaper and offers more consistent output.  Cheaper to produce mind you, not cheaper to clean up after. Pickens went as far to say, "You have only one resource in America that will compete with oil, and it's natural gas."

Remember, this is a man who was once considered the 117th richest man in the world, his fortune coming from buying out independent oil companies over several decades and managing hedge funds. It is not too great a stretch of the imagination to determine what his motivation would be for testing the merits of wind energy.

What Does This Mean?

The real question is likely, how much stock can people put in a renewable energy plan implemented by someone in the oil industry? There seems to be a necessary cynicism required even to consider such a thing.

Pickens' historical business methods also add fuel to skepticism, as he is clearly an individual fueled more by the potential for profit than a conscience for reducing harmful greenhouse gases.

Now, it would be unfair to completely dismiss Pickens ideas. His goal is to create a self-sufficient industry for the American people, one that would create jobs and help boost the economy. Something that is pretty difficult to argue against, considering the country's current economic situation. It's just a matter of whether or not his plans are viable. As they stand, they appear to not even be close. Neither do Pickens' intentions.

Sources: The Wall Street Journal, Get Energy Smart Now, Dallas News, bnet.