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The future of Middle East

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The future of Middle East

Old 1st May 2013, 08:46
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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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Old 1st May 2013, 09:42
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some analyst foresee the barrel at or below 30 USD
Some, or one?! Not going to happen in 2 years!
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Old 1st May 2013, 09:58
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The major growth in ME was when the barrel was 17 USD.
Major downturn when it was 146.

Last edited by littlejet; 1st May 2013 at 09:59.
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Old 1st May 2013, 10:00
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Two years?

There are no alternative power sources that are likely to be viable in the next two decades!!

Gasoline and diesel consumption are down already 30% in some countries
Yes- in response to COST.

have a look at consumtion where fuel is cheap. If oil came down to $30 per barrel, comsumption would skyrocket.

Last edited by Wizofoz; 1st May 2013 at 10:02.
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Old 1st May 2013, 10:03
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Lot of guff, maybe turned down for a job eh!
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Old 1st May 2013, 13:05
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A Goldman Sachs "analyst" has predicted that oil could come down to $30 a barrel "soon".
Possibly the same guy who forecast it would hit $200 in about 2006.
Don't think anyone really knows - too many factors at play. Shale Oil, natural gas prices falling etc.
Interesting book out in the UK "After the Sheiks" by Christopher Davidson. Doesn't look good for the future of the region. Banned in the Persian Gulf no doubt.
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Old 1st May 2013, 13:14
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"Persian" Gulf, you say?

I pray we are all long gone from the region before that little development happens...
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Old 1st May 2013, 15:56
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So true!

- Elvis is coming home in an UFO disguised as comet PAN-STARRS.
- Hitler has agreed to refuel him at his lunar base.
- Kennedy is planning to celebrate his 95th birthday with both of them. He is still top secret adviser to THEM at THEIR secret Himalayan hideout.
The ley lines tell it all.

Ya-Allah, man! Where is all that genius coming from?

Last edited by MrMachfivepointfive; 1st May 2013 at 16:22.
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Old 1st May 2013, 22:50
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The world is slowly reaching maximum possible oil production = peak oil. Current oil production can be maintained, possibly grown slightly but at great expenditure and effort. Fracking and projects like the Artic National Wildlife Refuge barely make a dent, mostly around 1% of current global production (85 million barrels per day or so). New discoveries and techniques can barely offset existing declines. This is from the supply side.

From the demand side, 80% of the population is only just starting to consume oil with most incremental demand coming from emerging economies. At 2% average annual growth rates, a new Saudi would have to come online by 2025. Exponential growth is one of nature's biggest forces. Unfortunately, supply growth rates (if any growth) are not.

Never say never to $30 a barrel, but it's highly unlikely. Oil prices fluctuate more wildly due to many factors involved, but it's an oscillating upward trend. Hydrogen is an energy sink. Electricity will still need to be produced. Windmills only deliver electricity around 25% of the year the first years, then wear will reduce their load factor to around 15%. Current generation alternatives will not replace fossil fuels at the same rate and scale at which the world currently consumes them. 85 million barrels per day is around 4 olympic size pools per minute.
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Old 2nd May 2013, 06:35
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Would you bet even a modest sum of let's say 10,000 / 15,000$ on the prediction (sp) that oil would be 30$ in two years? I bet that even the analyst who did this guessing wouldn't.

Two years is a short term in financial/economic consideration and we don't have anything in place to replace a serious percentage of mineral fuels using on ground transport. And Wizofoz is right on the corellation between cost and consumption.

Oil is here to stay and Gulf countries are taking formidable advantage of their low taxation and location.

Rwy in Sight
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Old 2nd May 2013, 08:09
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Maybe oil will be in short supply, but there is no short supply of people that will publicly offer expert opinions on anything. One moment an aviation expert, the next an oil futures expert offering opinions on the future of the whole ME.... bit of a mouthful dont you think?
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Old 2nd May 2013, 10:10
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Payscale, if only you knew my background... cannot say more. Not even sure why I bothered posting.
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Old 2nd May 2013, 16:11
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I dont know your back ground. I know mine. I am a pilot. A pilot posting on a pilot web site...
You might be Greenspan himself...but you are still posting on a pilot site... makes me suspect you are also a pilot with an interest in political predictions..
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Old 2nd May 2013, 20:15
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Apart from my background - in let's call it the energy sector - I am also a pilot. I normally wouldn't start or contribute to this subject on this forum, but since Cucuotto brought it up I thought I'd offer my knowledge. Aviation and energy are closely linked, it certainly wouldn't hurt to look beyond our cockpits once in a while. Political predictions? Politics is only a small part, it's mostly about geology, physics and economics. I am done posting here, all the best to you Payscale.
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Old 2nd May 2013, 20:31
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Someone said "Stone Age didn't end because we run out of stones!"
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Old 5th May 2013, 13:43
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Dropp - are you really a pilot?

My Pilot's Free Flight atlas clearly shows that body of water between Iran and Persia to be the Persian Gulf. So does Google earth, my iPad's Nat Geo app and the Times Atlas.

Obviously your Masters (Owners) have you well conditioned. Money cannot change history you know or rename the world to your liking.
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Old 5th May 2013, 13:54
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My, you certainly are a geographically-gifted bunny.

In the spirit of empiricism, how 'bout you try this: Next time you transit the area and you are "checkin' in" with Bahrein, Kuwait, Doha, Abu Dhabi or Riyadh ATC, include in your transmission the information that your position is over the Persian Gulf. It seems likely they will help you with your confusion - perhaps with an object lesson.
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Old 5th May 2013, 14:47
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Oh please can I be on the frequency when Roo makes that call. I love blood sports. Better still include the reference in your PA and see how impressed your pax are. A little knowledge......
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Old 6th May 2013, 05:30
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Even better Roo, how about you educate yourself (that means learn) what and where exactly Persia is and where it refers to, you'll find that there ain't much of a Gulf between Iran and Persia...
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Old 7th May 2013, 06:09
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Do you really think a couple of hundred wide bodies will affect the price of oil.

In the big scheme of things it is but a drop in the bucket.
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