• This is a partial transcript from "Your World with Neil Cavuto," June 28, 2005, that was edited for clarity.

    NEIL CAVUTO, HOST: So, maybe, just maybe oil is on its way down after hitting $60-plus a barrel yesterday. The price of crude, as I indicated, dropping more than $2. So, which is it, $60-plus or $60 less? And what does it all mean for the markets?

    Let's ask oil tycoon Boone Pickens. He is the head of B.P. Capital.

    Of course, Mr. Pickens has the distinction of being the first big muckety-muck I used to interview 20-some-odd years ago.

    T. BOONE PICKENS, FOUNDER, B.P. CAPITAL: A long time ago.

    CAVUTO: When you were chasing companies. Good to have you in the flesh.

    PICKENS: Thank you.

    CAVUTO: You got some press lately when you said that, look, you might not like these high oil prices, but, in a sense, get used to them. What did you mean?

    PICKENS: Well, you know, back to the supply is always where I start. And you got 84 million barrels a day globally, and we have got...

    CAVUTO: Eighty-four million available or that we're using?

    PICKENS: That's what's available and that's what we're using.

    CAVUTO: So, we're using everything?

    PICKENS: I don't think you have got 500,000 barrels a day left over.

    CAVUTO: Wow. So, there's no wiggle room there?

    (CROSSTALK)

    PICKENS: That then takes you to the fourth quarter, where you have predictions — and I believe they're real — at 86 million barrel as day. So, I think that get ready for higher oil prices.

    CAVUTO: The cynic might say, Mr. Pickens, that you are a big oil guy. You have a lot at stake. With oil continuing to run up, that's just a guy who is profiting off his call.

    PICKENS: Well, that could — that be said. I am an oil guy. There's no question about it, for over 50 years. And that's why I think that I can see what's going to happen to us. And...

    CAVUTO: So, by the way, you have argued this is going to happen across the energy spectrum, right? Everything is going to move up.

    PICKENS: Oh, that's right.

    CAVUTO: Yes.

    PICKENS: But, you know, Neil, for years and years, I have made my predictions, my direction has been good. Timing sometimes has been off.

    But, you know, I go back through the '90s, when I couldn't hit it out of the infield. And...

    CAVUTO: Yes, but I think your batting average is pretty good.

    Let's talk a little bit tonight about how this could be affected by what the president says tonight. Any connection?

    PICKENS: I don't know...

    CAVUTO: I mean, if Iraq (search) gets much worse, is the feeling that — now you got a bellicose new guy taking over in Iran. Iraq looks kind of messy. Oil prices keep going up?

    PICKENS: Well, I mean, we talked about the oil price, but just touch on it a second.

    You know, the guys that said that Iraqi production would be up to three million barrels a day two years ago, we don't have a prayer. We're a million-and-a-half.

    And when we look at, how does it impact the president, all that impacts the president. But he's not running for re-election.

    CAVUTO: So, what does he have — what does a Boone Pickens want to hear the president say tonight, oil notwithstanding?

    PICKENS: That we've passed an energy bill (search). That would be the first thing I would like to hear him say.

    CAVUTO: Yes. Well, we haven't and we won't likely anytime soon.

    (CROSSTALK)

    PICKENS: Well, the Senate — it went through the Senate today 85-12. So, I mean, you're getting closer. I think it will be after the Fourth of July, but we're going to have an energy bill.

    CAVUTO: But House and Senate are widely apart on this, aren't they?

    PICKENS: Well, not so far.

    CAVUTO: No?

    PICKENS: No, I think that...

    (CROSSTALK)