Thursday, June 19, 2008

"Whiskey's for drinking. Water's for fighting."

What is water worth? One major American investor, T. Boone Pickens betting $100 million that water is the new oil. You can read Business Week's Cover Story for June 12, 2008,
There Will Be Water
. (It is not on permalink, so it may disappear after a few weeks.)

Currently, water is desperately needed in the sub-Saharan areas, India, and China. I have been saying for some time that water is the new oil, and that some wars today are being fought over water, such as the war centered in sub-Saharan Darfur.

Pickens is staying at home, and this interesting article talks about trying to sell water in the USA. We are not there yet, but as people loose their water rights, and water is wasted by being used as a waste/sewage disposal system, or dumped back into salt water, water could become as precious as Pickens thinks it will.

There's a saying in Texas: "Whiskey's for drinking. Water's for fighting." Pickens decided to fight. In 1999 he created a company called Mesa Water and began to accumulate water rights so he could strike a deal with another city altogether. The hell with Amarillo. Pickens was confident he could sell his water: The population of Texas was expected to jump 40% by 2020, mostly in urban areas one dry season away from drought.

Ironically, it may be the flooding that boosts Pickens' investment, since the flooding is polluting the water with the damaged oil tanks, refineries, waste treatment plants, and so on. Flood and drought may radically change the cost of water and food.

1 comment:

Anonymous said...

Pickens can keep his water. He paid for the swift boating of John Kerry.