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Old 1st May 2013, 08:46
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cucuotto
 
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The future of Middle East

So you are joining a Gulf carrier. Good idea? Have you considered everything?. I would not do it but if you don't have alternatives...
But this is what some analyst think it will happen.
First of all why this tiny Middle Age states are investing so strongly in aviation?
Have you ever asked this question yourself ? Well the answer could be that aviation will be one of the only two oil intensive industries in the near future, the other being sea shipping. The demand of oil is set to fall vertically and some analyst foresee the barrel at or below 30 USD in two years. This is due to the continued growth of alternative energies which are reaching economical viability without subsidies with the advantage of their contribute preventing the extinction of many life form including humans form the planet, and to increased output from the US that is set to reach energy ind independence pretty soon. Gasoline and diesel consumption are down already 30% in some countries and will go down on exponentially in the next 10 years when electric and H2 will become mainstream. The stability of these anachronistic states is based essentially on populism and subsidization trough oil revenues. The vast majority of locals don't work and live on luxurious Government minimum salaries and this is how social peace is maintained and democracy kept away form local's mind. The work is done mainly by expat slaves ( sorry.. you will be one of them) and the attempt to stimulate the growth of local work force are falling behind. But with oil down to that level of prices the various Rulers will not be able to maintain the status quo for long .
Social unrest will automatically unravel. Buying and flying hundreds of airplanes is the only way to keep the price of oil up a bit in the short term but the on going achievement of mass production bio kerosene will seal the fate for the Gulf states as we know them and a probable return to camels.
I would very careful planning long term in the Gulf...if I were you.
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