☆ Anticipated World Oil Glut Is Bad News For Large Commercial Aircraft Builders

News Analysis: Some Aircraft Brokers and Economists think the Anticipated World Oil Glut Is Bad News For Large Commercial Aircraft Builders; for EVERYTHING IS IN SOME WAY RELATED.  For many years the Airframes have been extolling the virtues of lighter Carbon Composite Aircraft because “Oil will soon cost $180 to $200 Dollars per Barrel” many of their Executives declared; very unrealistic at a minimum.

The Organization of Petroleum Exporting Countries (OPEC) consist of the following twelve Members: Algeria, Angola, Ecuador, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, United Arab Emirates, and Venezuela; Internationally, a Highly Esteemed Group.

Imminently, Iran, Iraq, and Libya will have their oil flowing globally, as the other OPEC members  hypothetically attempt to reduce Oil Production to keep the price elevated. Perhaps, conflicting with OPEC’s possible strategy is Non-OPEC Oil Produced in America, Brazil, Canada, Norway, and Russia (the world’s largest Oil Producer). As more oil is discovered in the various Oceans and Seas, even more oil will be produced; it is a Natural Process which occurs throughout the Planet, nothing more (many Geologists now think).

Quantitative increases in Oil Production can bring decreases in Unit Cost of Production (so it benefits ALL Producers to Produce and sell more Oil). Greater Petroleum produced and sold, even at a slightly lesser price, can produce more total dollars sold in a year.

Diminution is Crude Oil Prices can translate to Aviation Fuel Savings for Airlines; as aforementioned: Anticipated World Oil Glut Is Bad News For Large Commercial Aircraft Builders.

If Aviation Fuel Prices drop, Airlines may decide to keep their existing planes rather than spending Hundreds of Millions of Dollars PER PLANE to save some fuel.

Additionally, Aviation Gas prices may become impacted by Bio-Fuels in the future. As Engine Builders and Civil Aviation Authorities approve such fuels, they will impact supply levels upward. 

Some Governments are presently thinking of increasing their Revenues by Eliminating Aircraft Depreciation Methodologies en toto. If this occurs, the taxpayers of a Country would no longer being the subsidizers of Aircraft Purchases; a HUGE BLOW to Commercial Airframes. The existing long-term pathetic World Economies are making the Public much less receptive to being  “Sugar Daddies” for Airlines and Commercial Aircraft Builders (in Taxpayers paying for that portion of the Aircraft that has been ‘Depreciated’). If the purchases of Aircraft cannot be depreciated many airlines will not buy as they do now “To Be Fashionable with The Latest Aircraft Iteration”.

As for present Airframe Stock Prices: “Like the Aircraft they fabricate, those which soar upwards can rapidly descend”.

Reality.

Reference: http://tinyurl.com/qa5tc64