GLENN: So I'm sitting there with T. Boone and I said, so how much role is speculation. He said it's -- he said they play a role but it is not a significant role. And I said, but they're -- I mean, there's enough money out there. He said, Glenn, first of all, understand one thing. Production currently is at 85 million barrels a day. So we have 85 million barrels. He said, the demand is at 87 million barrels a day. So we are two million barrels short every single day. He said, since those two lines have crossed, it is supply and demand. That's why it's going up.
Now, he's also a believer in peak oil. There's a chapter in my book on peak oil and if you're a real, you know, freak on the program, you might have noticed that that's the only chapter that I have not discussed on the air and the reason why is because I put it in there saying that this is a possibility. However, there's a lot of people that think that peak oil is just, you know, the sky is falling. So I wasn't sure. And, you know, I've got enough "Sky is falling" stuff in my life. I didn't need to tell you that we're running out of oil as well. But I thought it was important enough credible people that do believe in peak oil that it was a piece of the puzzle that I thought you needed to know and I thought you needed to know as well. I still don't know if I buy into peak oil. However, what I do believe in is we are out of cheap oil. We are out of the, you know, the bubbling crude where, you know, Jed goes out and he's shooting some varmint and all of a sudden up comes bubbling crude? That's done. That's over. The cheap oil is gone. There's plenty of oil left but it's deep sea oil, it's difficult to get or it's heavy crude. So it costs a lot more to pull out. So the days of cheap gas are over.
The other part of that is demand. With China and India and the rest of the world coming online. Stu, what was that stat? I know I'm going to get this one wrong. There's a stat that China has purchased more SUVs in, like, the last, I don't know, five years or something than we've ever purchased? It's some ridiculous stat of what China is doing. China is coming online. You think they care about the environment. Not so much. They are coming online with a vengeance. So you've got demand going through the roof. With just demand going up through the roof and cheap oil being gone, you are going to have higher and higher gas prices.
So Boone says to me yesterday -- I said, so do you believe in peak oil? He said, oh, yeah, peak oil. He said, some people think it's, you know, 2010, 2012. Some people think we've already hit it back in the Nineties. I think we hit it in 2006. He said, so now we're going to start a slow drift down. He said we're at 85 million barrels. He said we're going to start a slow drift down. And I said, well, then why aren't we going into the ANWR and offshore, et cetera, et cetera. He said, you can, you should, he said, but that's not going to solve your problem. He said, it's not going to bring you back to $2 a gallon gasoline because now what you're doing is just filling the gap. If you're at 85 million barrels now, he said, it's going to start to come down to 82, 81, 80. He said, so everything that you find now in the ground is going to replace that gap to bring you up to 85 million barrels a day. He said, hopefully bring you to 87. But then you have another line of demand and that's going up. He said, so your gaps are getting bigger and bigger. So yes, you need to go drill and get everything you can, he said, but you're no longer in the situation where you're going to have a snap back. Unless demand goes way, way down, you are not going to have that snap back to $2 a gallon. I said, so wait a minute, you believe that we're going to hit $150 a barrel this year. He said yes. We got off the air -- this was in the first break. We got off the air and I said, so Boone, $150 a barrel by the end of this year, when does this break the back of the economy? And he looked at me dead serious and with all soberness and said, we're there. He said, we're at an emergency. He said, just, nobody will talk about it. Nobody will recognize it. Nobody will say it. We're at a full-fledged energy emergency right now. He said, we need an Eisenhower highway project. We need somebody with vision. I said, so wait a minute. Why is it that the people that we have in power aren't going there? He said, I have no idea. And he told me a story about going into the White House and meeting with George Bush.
Now, they're friends, Bush is an oilman, Cheney is an oilman and Boone sat down with them and said, Mr. President, you do not want ethanol to be your legacy. It doesn't work. Bush said, I know I don't want the legacy of ethanol. He said, here's the plan. Here's the plan. Boone laid everything out. For some reason they agreed in the meeting that it was a good idea that, you know, these are the different things that have to be done. He said he gets out of the meeting and we go with ethanol. He said, now, I don't know what happened, I don't know why that decision was made, I don't -- you know, he doesn't -- no idea. But it doesn't work. So I said, okay, you're into wind. Wind doesn't work. He said, no, wind doesn't work in Germany, it doesn't work in Spain, but it can work in certain places on Earth. He said one of those places is in Texas and up through the middle of the country. He said there's all kinds of studies that show that. And I said, well, you're getting in -- you just bought 667 wind turbines from GE. This guy's a multibillionaire. I said, you're going to build these wind turbines. I said people will say you're just trying to get rich, you are just trying to get everybody on wind. He said, well, first of all, I'm not trying to get everybody on wind. He said that's just one piece of the puzzle. He said, the second argument is I'm just going to get rich? So funny. He looked at me, this 80-year-old man. He said, I'm a billionaire. I'm rich enough.
So we finished the break. We finished our conversation on the air. And he looked at me and he said, you got five minutes for me? And I said, yeah. He said, do you have a piece of paper, pencil? Said sure. He said, let me show you something. And he sketched it out. In fact, I sent it -- I asked for it to be sent to the website. Can you check and see if it's on the website?
STU: No, Glenn. Because we can -- we can generate power from wind but I can't get my laptop to turn on.
GLENN: Why can't your laptop turn on? I think my -- do I have -- yeah, I have Internet. Why can't you get your laptop to turn on?
STU: I can't get my laptop to turn on, not to get the Internet.
GLENN: Not to get the Internet, to turn on.
GLENN: What kind of --
STU: Well, I've had it for three weeks. So you figure --
GLENN: You have the worst technology luck of anyone I've ever seen. Why have bad technology?
STU: I don't understand why I believe in it so much. I think it's the solution to a lot of our problems. Yet when I use it, it never works.
GLENN: Here on the front page of GlennBeck.com in the headlines section it says something like, the future of energy according to Boone Pickens. Okay. This is what he drew for me last night. We're sitting there and he says, do you have a piece of paper, a pencil? I said yeah. So he draws this. It's not going to make any sense to you. Do you see it, Dan?
DAN: Yes. It looks like "A Beautiful Mind." It really does.
GLENN: I asked him to date it and sign it. I'm framing it for my office. Here's what's important. He went over this with me. And you see the little pie chart of the coal and the 20% and 22 and it's moved over? It says 38%, blah, blah, blah? This is a combination of all of the energies. This is wind-power, solar power, hydrogen power, coal power. The number you need to care about is just about simple things we can reduce our dependence on foreign oil by 38%. He said I can reduce oil by 38%. Here's what's important, the reason why I'm framing this. I have heard this theory from so many people. I have heard this combination from David Neeleman who is so frustrated with this country that he's now -- not with this country -- with this government that he's now built a new airline in Brazil because he knew energy was going to be a problem. He spent two years on the energy problem, met with the President, met with the secretary of energy, met with all these people, met with GE, met with everybody, everything with a similar system to this. Couldn't get it done. T. Boone writes this out and he says, this is with a we need to do. The percentages may be different, but it's the same damn plan. And he's met with the President, he's met with the secretary of energy, he's met with all these people. He can't get it done. I've met with the environmentalists who aren't crazy, I've met with oil companies that aren't crazy, I've met now with T. Boone, I've met with several executives of major airlines. I have met with the heads of GM. They are all saying the same thing, just different percentages. The question is why isn't it being done?