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Opec and the airline woes new news...

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FN FAL

Freight Dawgs Rule
Joined
Dec 17, 2003
Posts
8,573
The push to cut OPEC oil production grew Thursday with ministers from Kuwait and the United Arab Emirates saying on the eve of a meeting by the organization that members had to honor output quotas to stem oversupply and falling prices.
More at: http://www.forbes.com/business/feeds/ap/2004/12/09/ap1701490.html

With all the talk of fuel hedging by airlines and costs to operate an airline a big factor in the state of the industry, how do you think OPEC is going to react to less consumption spuring on their need to jack up prices?

Think a National Sales Tax will help stem the consumption of oil even more, creating further need for OPEC to raise prices? After all, a National Sales Tax will create less demand for products, creating less production, less need for shipping and less need or desire for airline, corporate or private air travel...further reducing our need for OPEC oil. Since we won't need the oil as much, who would care if they charged 10.00 bucks a gallon for gas or 550.00 bucks a barrel for crude oil?

It seems like the more we try to save on our consumption, they just jack up the prices anyway. I'm glad to see the price of gas come down, and I am tired of paying 30.00 bucks to fill up my car...which in the not to distant past used to only cost around 20.00 bucks to do.
 
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Inflation my dear Watson, inflation! :)

$10/bbl of oil was artificially deflated and it wasn't going to last anyway.

Although $50/bbl is ridiculous but when I took a class called "Energy Economics" back in 1999, the world demand for oil was set to double by 2014. Output would not be able to match that, so if things hold true, and they do seem to be, the sh*t hasn't hit the fan yet.
 
OPEC and "Peak Oil"

Guys,

Everyone in aviation needs to understand the little addressed theory of "Peak Oil" ... run a search engine and start reading, as I have. You'll be "Wide Eyed" ...

TransMach
 

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