One Salient Oversight challenges T-Boone:
Dear Mr. Pickens,
Just recently you stated to the media that you expected oil prices to
return to record levels by the end of 2008.
Sir, you are a man who sticks by his word, so I would like to make a
wager with you if that is at all possible. Why? Because I think your
prediction will be dead wrong.
Mr Pickens, you are a man who has spent decades making billions of
dollars out of the oil industry. I, on the other hand, am a 39 year old
self-taught economist who works as a substitute high school teacher.
Nevertheless, I believe that you are dead wrong on this, and I would
like to challenge you to a wager.
I have stated on this blog recently my belief that oil prices will drop
below $100 within the next 12 months. I stand by this prediction, even
though it disagrees with yours.
As a result, I would like to make a bet with you on this matter. The bet
will go as follows:
* In order for T. Boone Pickins to win the bet, the price of West
Texas Intermediate must equal or exceed $147.28 per barrel on or before
December 31st, 2008.
* In order for One Salient Oversight to win the bet, the price of
West Texas Intermediate must be below $100 at any point on or before
December 31st, 2008, and must never equal or exceed $147.28 during that
* If West Texas Intermediate prices neither drop below $100 nor
equal or exceed $147.28 on or before December 31st, 2008, then neither
individual will win the bet.
I’m trying to work out an appropriate amount. I’m willing to place
US$100 on the line. I will leave it up to you to determine your own amount.
aka “One Salient Oversight”
Newcastle, NSW, Australia