Petroleum

☆ 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

★ Evolving India Is Attractive To Saudi Arabia’s $500+ Billion Dollar Funds

News Analysis: Indian Higher Investment Returns, than in America or Europe, make the Financially Astute Saudis take notice and then act expeditiously. The 1.2+ Billion Residents of India make for many opportunities for growth of Projects. 270+ Million of its Citizens are 24 Years of Age or Younger; an enormous market with a lengthy future.

India has Bauxite, Chromite,  Coal (the World’s Fourth Largest Reserves), Diamonds, Gas, Iron Ore, Manganese, Petroleum, Rare Earths, and Titanite; it is a Horn of Plenty.

A developing Market Economy pushed India’s Gross Domestic Product to $4.7+ Trillion Dollars last year. 

Percentage-Wise, Manufacturing is set to grow phenomenally. Currently it consists of: Cement Production, Chemicals, Food Processing, Machinery, Mining, Petroleum Production, Pharmaceuticals, Software (Bangalore), Steel, and Transportation Equipment.

The Country Exports are: Apparel, Chemicals, Iron, Petroleum Products, Precious Stones, and Vehicles; these to: United Arab Emirates, United States, China, Singapore, and Hong Kong. 

It Imported 6.7+% of its Expenditures (primarily Petroleum) from Saudi Arabia.

Now that India has signed a Strategic Agreement with Saudi Arabia, both Countries can accelerate the development of a Very Productive Trade Relationship; one that is very much to their Mutual Benefit.

Entrepreneurs and Investors should pay attention to the Prescient Saudis, for their keen Commercial Insight has been respected by Seasoned International Businessmen for Decades.  The Wise Saudis, while noted for their Petroleum Astuteness, should also be paid attention to, as to Where and When they make Strategic Investments; one can learn from the Masters.

Investors copying the Saudis’ Investments in India is not ‘Economic Plagiarism’ but acts of showing Proper Respect of Wise International Businessmen.

Reality.

Reference: http://tinyurl.com/ov5x2ff

Kenya Find Of 600 Million Barrels Of Oil Increases Exploration Activities

News Analysis: In Northern Kenya, a British Company has discovered a large oil deposit which might contain over 1 Billion Barrels. More exploratory holes will have to be drilled to ascertain the total Petroleum volume over the 600 Million Barrels discovered to date. 

As more oil wells are drilled around the World, more of it is being discovered. Geologists are coming to realize “Oil Creation is a Natural Process Occurring in the Earth”.  

Reference: http://www.businessdailyafrica.com/Tullow-announces-fresh-oil-finds-Amosing-Ewoi-Turkana/-/539546/2146898/-/amdk0hz/-/index.html

Egypt To Commence Repaying Oil Debts, In Egyptian Pounds, To Suppliers

News Analysis: Egypt To Commence Repaying Oil Debts, In Egyptian Pounds, To Suppliers is a very good sign to all who desire the Nation’s rejuvenation. By commencing this process, Petroleum Companies may renew their interest in Exploration and Production. The wisdom shown by the Egyptian Government in commencing repayment now is laudable.

Towards helping the Process, a strong supporter of the Egyptian people has been, and remains, Saudi Arabia’s King Abdullah. The funds his country has committed to the Egypt aid the People in their time of need. Unlike other Nations with Hidden Agendas and who deny Egypt their support during these hard times, the King has remained  steadfast as a Humanitarian. 

Entrepreneurs might examine the possibilities which are presently available to Investors in Egypt. A Smart Investor buys when prices are low; not when they are high.

The Egyptian Government, if it continues making steps towards ‘Economic Normalcy’ will end up prospering; its very long History of Excellence will continue. Reality.

Reference: http://tinyurl.com/mz4soos

Netherlands: Does Their “Dutch Optimism” Precede Their Wealth; Or, Wealth Precede Their “Dutch Optimism”?

News Analysis:  The International-Oriented Dutch have a tradition of World Exploration accompanied by Financial Acumen second-to-none. While others are  busy in attempting to gain publicity for all of their business ventures, the Dutch are Stealthily conducting business negotiations. Additionally, their years of experience in dealing with people in other countries has taught them the benefits of being circumspect. The asset of being adroit in business comes from years of similar international exposure.

The Dutch Optimism is,in part,based upon the ability to correctly analyze people and situations [thereby gaining a confidence which morphs into cheerfulness].

The Dutch Wealth has accumulated over the years by both the aforementioned ‘abilities’ as well as knowing “Good Money Management”. Common-sense dictates that: “One does not spend more than one earns”. Application of this simple Credo applies also to business transactions of all kinds. Seldom is heard of the Dutch paying artificially exorbitant prices for goods or services; they know better. Through the years, application of this behavior has allowed the Dutch to prosper; be it in: Flower Production And Sales, International Finance, Maritime Shipping, or Petroleum Exploration and Production. The 92,000 Millionaire Households are a Testament to this.

Perhaps the wisdom of ECC 10:19 has been endorsed by them.

Any People who have learned to “Hold back the Ocean” have the necessary Intellect and Tenacity to succeed wherever they choose.

Reference: http://www.dutchnews.nl/news/archives/2013/11/the_netherlands_92000_milliona.php

An Economic Oasis in the Expanse

News Analysis: A very positive aspect of Mining in general is the creation of employment in more desolate areas of the world. The “Economic Multiplier” spun from employee wages and spent locally, further enhances the economic benefit to a geographic area. If one considers both the gain to the mining organization [which took the investment risk] as well as the employees’ earnings the situation is better for a ‘community’. If the mined products are utilized in the same country, so much the better.

Reference: http://tinyurl.com/ku9wwre