Peak Oil-- Rising Oil Prices will GET HIGHER

[jetflyer]

deleted. Decided my facts were wrong

 

[General Lee]

As long as airlines add fuel surcharges, the price per barrel doesn't matter. Northwest has "allowed" 4 or 5 fare increases in the last few months. It will happen again.



Bye Bye--General Lee

 

[jetflyer]

deleted

 

[Joey Bagodonutz]

As long as Exxon Mobil makes record profits, GWB and the repubs are happy. You are just working class slime.

JB

 

[atpcliff]

Hi!

No, you are right. The world oil peak is coming soon, if it's not here already, which means that oil prices will, overall, rise until we don't use oil as a transportation or energy fuel.

ExxonMobil, which is probably the most conservative oil company out there, just released in documents to shareholders that non-OPEC (which is where EM gets all of their oil) will peak within 5 years.

EM has NEVER said anything about oil quantities, shortages or peaks ever before. BP, along with a number of industry experts, believe that the world oil peak, not just non-OPEC, will be soon.

The prices for oil will get more and more volatile, as the demand edges closer and closer to supply, but the overall trend will be up.

CLiff
GRB

 

[buttercup]

If you want to make money load up on PTEN!! Thank me later when you make 200percent on your money after one year!! This is related to increasing oil prices over the longer term

 

[buttercup]

Hi!

No, you are right. The world oil peak is coming soon, if it's not here already, which means that oil prices will, overall, rise until we don't use oil as a transportation or energy fuel.

ExxonMobil, which is probably the most conservative oil company out there, just released in documents to shareholders that non-OPEC (which is where EM gets all of their oil) will peak within 5 years.

EM has NEVER said anything about oil quantities, shortages or peaks ever before. BP, along with a number of industry experts, believe that the world oil peak, not just non-OPEC, will be soon.

The prices for oil will get more and more volatile, as the demand edges closer and closer to supply, but the overall trend will be up.

CLiff
GRB

The time to buy XOM was ten years ago.. If you buy that stock now even with oil prices increasing youd be lucky to make 6 percent a year on that!! n

 

[FlyBoeingJets]

As long as airlines add fuel surcharges, the price per barrel doesn't matter. Northwest has "allowed" 4 or 5 fare increases in the last few months. It will happen again.


Bye Bye--General Lee

I'm praying you are right General. It's about time for things to turn around. Delta did well in the May traffic report and I hope the progress continues.

But my"Warning Will Robinson" alarm is going off...

Glass Slipper Might Fit Northwest Air
By Ross Snel
TheStreet.com Staff Reporter
6/3/2005 7:12 AM EDT
Click here for more stories by Ross Snel



At first blush, it sounds like a terrible investment.

After all, it's a company that burned through more than $800 million of cash in the 12 months ended March 31 and lost $10.16 a share in 2004. Its industry is troubled, and its own stock fell 13.5% last year and has plummeted almost 50% so far this year.

Yet a growing chorus on Wall Street is recommending investors pick up shares of the company -- Northwest Airlines

Their thesis is the nation's fourth-biggest carrier has yet to tap a key source of potential savings -- broad labor concessions -- that major rivals have exploited. When Northwest does, it will be among the stronger traditional network carriers, and its stock will jump, their thinking goes.

"The difference between Northwest and much trendier brethren AMR and Continental Airlines is simply outdated labor costs," wrote Lehman Brothers analyst Gary Chase on May 13, when he upgraded Northwest to overweight.

Chase's counterpart at Merrill Lynch, Michael Linenberg, joined the bull ranks this week by upgrading Northwest shares to buy. He notes the stock has significantly underperformed peers AMR, the parent of American Airlines, and Continental this year. AMR stock is up more than 20%, while Continental shares have gained almost 7%. "Year-to-date Northwest's shares have declined 50% mainly due to its inability to achieve wage cuts with all of its labor groups, and the concern that this could force the airline to file for bankruptcy," Linenberg wrote Tuesday. "We view a bankruptcy at Northwest as unlikely. On the other hand, the threat of bankruptcy is likely to play a role in the company's pursuit of another $800 million in labor concessions."

Glass Slipper Might Fit Northwest Air
Page 2



Analysts caution that only titanium-stomached investors should bet on Northwest. Like other traditional airlines, the Minneapolis-based airline has been struggling with high fuel costs, stiff competition from growing discounters like Southwest and pressure on fares from industry overcapacity. Although recent fare hikes have boosted revenue, they haven't fully offset fuel costs.

Several of Northwest's labor contracts date back to better times, when major carriers benefited from strong business travel demand in the late 1990s. The airline's roughly 14,300 ground workers represented by the International Association of Machinists and Aerospace Workers last amended their contract in early 1999. Its 9,200 flight attendants represented by the Professional Flight Attendants Association got new terms in June 2000. And the 5,600 Northwest mechanics represented by the Aircraft Mechanics Fraternal Association last amended their agreement in May 2001.

Since then, Northwest's rivals have extracted significant concessions from workers. AMR staved off bankruptcy in 2003 by getting workers to agree to $1.8 billion in annual cuts. UAL's United Airlines has used its more than two years under Chapter 11 bankruptcy protection to wrangle about $3.2 billion worth of concessions from its workers.

Northwest has received some help from its pilots, represented by the Air Line Pilots Association, who last October agreed to wage and benefit cuts worth $265 million a year. Salaried and management employees agreed to another $35 million worth of concessions.

But the airline says other employees must pitch in and hopes that pilots will agree to more concessions. In March, it disclosed an annual labor savings target of $1.1 billion, which includes the $300 million of concessions already negotiated. Northwest is also calling on unions to agree to freeze their traditional defined benefit pension plans and replace them with 401(k)-style plans. The company says it reduced nonlabor expenses in recent years. Northwest had $2.13 billion of unrestricted funds at the end of the last quarter, but if its expense structure doesn't change, those funds will dwindle, analysts caution.

 

[nimtz]

You just gotta love Wall Street analyst recommending a buy based on a company not yet getting around to crushing its employees livelihood and future. Capitialism at its finest.