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The Pros And Cons Of The Pickens Plan

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T. Boone Pickens created the Pickens Plan with the intention of reducing the international use of oil. Pickens Plan states that by using natural gas in the place of oil, imported oil demands would drop by ⅓. The money saved from this plan would amount in the billions, which could then be used to repair the U.S.’s damaged economy. However, Pickens idea, like every alternative oil plan, has its flaws. If Pickens Plan was implemented, the U.S. would not solely be affected; the world and its economy would be shaken. The supply and demand of oil would fluctuate dangerously, as would its prices.

According to Rediff Business (2013), the United States is ranked number one in worldwide oil consumption. As of 2012, the U.S. was using 19,150,000 barrels …show more content…

While this may seem like a clean, easy replacement for crude oil, energy from wind power is expensive to manufacture. According to Bastasch (2015), “new wind energy is 3 times costlier than existing coal power.” This price is not for the actual energy produced by wind, but the costs attributed to creating that energy. If the Pickens Plan was implemented, hundreds of coal-powered generators would be shut off and dozens of coal plants would be retired. Bastasch also explains that wind farms, which would replace these plants, cost triple the expense of coal plants to construct and run. Even after the constructions of countless wind farms, the energy produced in them would be double the cost of energy that the U.S. uses. Windustry (2012), a site that specializes in the production of wind turbines, states that wind turbines cost approximately three to eight thousand dollars apiece. The money required to construct these wind farms, which would have dozens of wind turbines, cannot be spared. Instead, using the money that would be invested into these wind farms, a newer, less costly alternative to oil could be …show more content…

Since the U.S. is such a prominent oil buyer from--as Corey Flintoff (2012) informs--countries such as Canada, Africa, Latin America, and others, a sudden cease of demand would rock the world’s economy. As of now, the U.S.’ demand of oil is at an equilibrium with the oil being supplied. If the U.S.’ demand of oil dropped dramatically, as Pickens Plan says it should, oil supplying countries would scramble to compensate for lost profits. In theory with the supply-and-demand model, the cost and supply of oil would skyrocket, while demand would be nonexistent. Since oil would be so costly, countries that purchase oil would be unable to afford it anymore, resulting in an even higher increase of prices and steeper decrease of consumers. With the loss of the U.S. as a consumer, the economies of these countries would suffer; this suffering would then spread worldwide, affecting everyone

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