Good News For Airlines Is Terrible News For Commercial Composite Aircraft Marketing Departments

News Analysis: The ‘Fantasy’ Projections of $200.00 for barrels of petroleum, in the world market,  touted by some Airframe Executives are rapidly becoming non-sensical to Alert International Businessmen. That which is good news for airlines is terrible news for composite commercial aircraft marketing departments.

Lower oil price directions make effete their arguments for spending hundreds of millions of dollars to purchase lighter aircraft to save some aviation fuel (as the fuel gets consistently less expensive). To exacerbate the possible threat to airline financial health, the “$200.00 Per Barrel Of Oil Myth” was created and distributed by the Airframes’ Minions, the Mass Media.

The aforementioned lower price direction gains credibility as American Oil, Brazilian Oil, Egyptian Oil, Gulf States, Iranian Oil, Iraq Oil, Levant Oil, Libyan Oil, Saudi Arabia, Siberian Oil, Venezuelan Oil, and others become available in the world market.  The greater abundance of petroleum will allow refiners of Aviation Fuels to offer lower prices to the airlines. Ergo, why buy  “Lightweight Commercial Composite Aircraft” for hundreds of billions of dollars? Additionally, Aircraft Engine makers are striving to make their products more fuel efficient.

As new Commercial Aircraft become available from manufacturers in China, India, and Russia, their engineers will have had the good fortune to utilize the best elements of other aircraft manufacturers’ designs to incorporate; and, to forgo questionable elements such as all composite construction.  All Metal Aircraft, as proven through many decades in Aviation endures. They will be employing, Aluminum, Stainless Steel, and Titanium, so the flying public will have the ultimate in safety in the skies. The lower fuel prices might even make their Airlines Tickets less expensive as an added benefit!

The Wisdom of the Saudis is to be commended, for they can see the direction  Petroleum Technology is headed towards extracting more oil throughout the world.

Reality.

Reference: http://www.reuters.com/article/2014/10/13/us-oil-saudi-policy-idUSKCN0I201Y20141013

☆ Increases In World Oil Supplies Is Potential Bad News For Commercial Aircraft Manufacturers’ Business Models

News Analysis: Commercial Aircraft Manufacturers Want Airlines to Think the Price of Aviation Fuel can only go UP. By touting the Alleged Weight Savings in their new Composite Carbon/Carbon Construction, they seek Customers. Often, Incorrect Empty Weight Estimates being given Airlines, make  Fuel Saving Percentages look robust. If the Airlines believe the Aviation Fuel Price Increase Rhetoric, widely dispensed by Air Frame Marketing Departments, then Aircraft Purchases are assured (they think). Looming against this Price Increase Allusion is the Oil Supply Increase Reality happening World-Wide.

The Oil Industry has a “Newer Process” of Shale Oil Retrieval that has been largely developed to its most efficient level in America.  The abundant American resources of Shale Oil In North Dakota, Texas, and elsewhere bode well for large increases in supplies. If one considers the enormous Orinoco Sands Deposit in Venezuela (Estimated: 500 Billion to One Trillion Barrels of Oil), anticipated oil prices would surely plummet steeply.

With increases in Supply come Decreases in Prices (all else being equal). The Arab Gulf States need a $90.00 a Barrel of Oil Price to maintain their economies. It is expected that they will decrease their production to offset their Shale Oil ‘Competitor’. Unfortunately, additional Oil Supplies are being produced in newer Off-Shore Fields such as in Brazilian Waters and will be produced in the future in the Arctic Ocean and perhaps Eastern Mediterranean Sea, et al. This additional production should have the $90.00 a Barrel reduced to perhaps $70.00 to $75.00 a Barrel pricing. Even at this level, Oil is making drilling profitable for many Off-Shore Operations and even more so for Oil Activities on land.

Aviation Fuel Pricing would plummet (many Petroleum Engineers think $1.00 to $1.70 per gallon) as a result of the probable World-Wide Oil Supply Increases. Additionally, Aviation Bio-Fuels will help contribute to price reductions for the Airlines. The Conundrum faced by Air Frames, is: “What Concerns can they Create to make Airlines think they ‘Have To Have’ new Aircraft?”

Airlines will find a diminution in Aviation Fuel prices (due to the aforementioned Oil Supply Increases coming On-Line) which will make a Mockery of the Hundred + Millions of Dollars now charged per Plane by the Air Frames; this  so the Airlines can “Save Pennies Per Gallon of Fuel” with their Composite Aircraft?

Reality.

Reference: http://gulfnews.com/business/oil-gas/us-oil-exports-likely-to-drag-down-prices-1.1286567

Venezuelan Oil Company Enters Gold Business

News Analysis: Venezuelan Oil Company Enters Gold Business is an excellent way to diversify further into the “Mining Industry”.  Pdvsa is a Government Company which will be buying Gold from miners and may engage in exploration in this Mineral Rich Country. The world famous Orinoco Oil Shale Belt, which the U.S. Geologic Survey estimates may contain 1.4 Trillion Barrels Of (Heavy) Oil is in Venezuela (as are large deposits of lighter oils). As such, this movement to gold is interesting as it shows foresight. Venezuela’s mineral riches are abundant so its production of each is very wise.

Venezuela has chosen to “Not put all of it’s Investment Eggs in one Basket”; Kudos to the Government for being smart in showing Independence of Thought.

Reference: http://www.eluniversal.com/economia/131217/central-bank-pdvsa-establish-joint-venture-engaged-in-gold-business