Betty Liu, Bloomberg
Jim Rogers, chairman of Rogers Holdings, talks with Bloomberg's Betty Liu from Singapore about Lehman Brothers Holdings Inc. and other investment banks, Federal Reserve policy, airline stocks and the outlook for oil. Rogers said the increase in the price of crude oil has ``years to go'' as known sources of petroleum are dwindling.
LIU: All right. Jim, also talk to us about oil. You know, you've been very bullish on oil. We've had a lot of people talk about, you and I had a debate about whether or not there's speculation in oil markets right now.
You say no, others say yes, like Soros, he says it's going to bubble. What do you know that others don't about the oil market?
ROGERS: Look, look, Betty, there are always speculators in every market. Look at the New York Stock Exchange right now. You think there aren't any speculators down there on the floor of the stock exchange? There are always speculators. That's what business is all about.
I submit to you that most of the people and - I don't know about most of the people, I shouldn't say that, but we know that the IEA, the definitive authority on oil has said that the world has an oil problem. The Saudis have told Bush that we have an oil problem.
Betty, if there is lot of oil, please, would somebody tell us where it is, so we can all invest in it? The world has a serious oil problem.
Now, Betty, that does not mean that oil cannot go down 50 percent. During this bull market since 1999, oil has gone down twice by 50 percent, going down by 50 percent in 2001 and again, in 2000 whatever it was, '05 or '06. So sure, you can have big reaction in any bull market.
But that's not the end of the bull market. There is no supply of oil unless you - somebody can tell us where the oil is, the bull market in oil has years to go despite new corrections which may or may not come.
LIU: Well, but you know, and I know you always hate having me ask you about - about limits or caps and all of that. But, given the supply/demand situation that you're talking about, how high can oil go?
ROGERS: Betty, I know you - how you're paid to ask questions like that, but I don't know the answer. I'm not smart enough. I know that unless somebody discovers a lot of oil, the price of oil can go to $150, $200. You pick the number.
Eventually, if it goes high enough, if oil goes to $300, there will be drilling for oil on the White House lawn. Hillary Clinton won't be speculating in cattle futures anymore, she will be speculating in oil futures. She will be out there drilling for oil.
If it goes to $300, there will be drilling at Buckingham Palace. I don't know how high it's going to go, Betty, but unless somebody discovers a lot of oil very quickly and very accessible areas, the facts are the world is running out of oil - out of known oil - known oil reserves.
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