How Are Rising Oil Prices Affecting the Airline Industry

In America, we have a desire for big cars and even bigger homes.  In the recent past, many rarely wrestle with the cost of running these items . . . . but all of that is changing.  The energy we use is now more expensive than ever.

There’s no other way to say it:  Americans are energy pigs.

I am, you are, we all are.  Compared to the rest of the world we consume tremendous amounts of oil.  On a per capita basis we consume twice what the Britons, Germans, and French consume.  Amazingly, we eat up more than 13 times the oil when compared to the Chinese.

According to the Wall Street Journal, America consumes more than a quarter of all oil produced in the world!  One out of every 4 barrels.  This level of consumption is a problem.  Just a few days ago oil traded for the first time over $ 100 per barrel.  It was the trade heard round the world, so to speak.

The fear is that the price will continue to rise beyond $ 100.  In the late 1970s and early 1980s America was hit with high oil prices. . . adjusted for inflation it peaked at $ 102.81 in April of 1980.  That was a time of tremendous economic turmoil.

OK, enough statistics, what does this all mean?

For one thing, the phrase “this time it is different” really rings true. Record oil prices in the early 1980s were caused by political turmoil and OPEC . . . today it is being driven by something entirely different, demand.

India and China are growing rapidly.  Their exploding middle class is hungry for a better lifestyle.  One that includes buying automobiles and using consumer goods like plastics that are made from oil.  Couple this new demand with already sky high consumption in the US and growth in Europe and we have a problem.  Demand that far outstrips supply.

This demand for oil is not going away.  If anything, it will get worse.  All it will take is some turmoil in Venezuela or another oil producing country and you have a recipe for oil at $ 200. 

Some will suffer from high oil prices more than others.  Some experts point to the automobile industry as one that will suffer the most.  No doubt they will be impacted, but I think the airline industry is headed for much worse.

Alternative power sources for cars are available, though not widespread. They can be run on bio-diesel, ethanol, or battery power.  Cars have also been run on solar power, flywheels, and even fuel cells.

You can’t run a Boeing 747 aircraft on any of these.

The airline industry is tied to the price of jet fuel and higher oil prices means higher jet fuel prices.  The airlines are already suffering.  United Airlines (UAL) announced today an increase in domestic fares by $ 10 each way to offset rising fuel prices.

Some industry insiders believe that this is only the first round of price increases.  Amazingly, the only major airline that focuses on hedging its fuel needs is Southwest Airlines (LUV), and their hedges are expiring.  The rest of the industry (and LUV very soon) continues to operate with significant exposure to oil prices.

If the economy slows, as many experts predict, demand from consumers for flights will fall.  The rising costs of fuel and the falling demand from consumers will result in big losses for the airlines.  Last year was a terrible one for the airlines, but I’m not convinced this is the bottom.

To profit from this mess, I would look to eliminate any holdings you may have in the airline industry.  Those with a more aggressive approach could look to buy puts on some of the larger domestic airlines such as United (UAL) or Delta (DAL).

Brian Mikes is the editor of the Dynamic Wealth Report, a free investment newsletter that offers investment ideas and news you can’t get from the mainstream investment press. Brian and his team bring decades of Wall Street and Silicon Valley experience to help you discover profitable trading ideas you can use today.

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Ford And Eagle Engines At Affordable Prices

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Eagle And Chrysler Engines At Affordable Prices

All auto owners know the importance of engines of their vehicles. Engine is the heart of vehicle and without engine, your vehicle is just immovable thing. When the engine of vehicle is damaged or stops working, engine replacement is the only alternative to restore your vehicle. However, engine is the most expensive auto part. Nowadays, you have many alternatives for engine replacement. You can choose used engines, rebuilt or remanufactured engines in the market. These engines are available in cheap prices and save lots of money. Chevrolet engines are popular in buyers for replacement purposes.

Chevrolet engines are known as Chevy engines in the market. Chevrolet engine is famous as the sturdy and muscular engine from the beginning. For this reason, many people prefer Chevy engines for replacement. These are known as V8 engines developed by General Motors. It comes in small block as well as big block engines. Chevrolet engine comes in wide variety of capacities like 4.3L, 5.0L and many more. You have many alternatives to choose right Chevrolet engine for your car or other vehicle. Some Chevrolet engines are developed as truck engines also. We have numerous different Chevy engines in our inventory.

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If you are looking for Eagle engine for your Eagle vehicle, browse our inventory for Eagle engine and get list of Eagle engines in our stock. We provide many rebuilt, used and remanufactured eagle engines in discount prices. These engines are collected from salvage yards after testing all the parts for their performance and working condition. You can avail 90 days price match guaranty on your Eagle engine at our store. With top quality assurance and excellent warranties, you can buy these engines with confidence at anytime. Customer satisfaction is our ultimate goal and we work hard to achieve it in every deal.

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Automotix.net solution is an alternative to search engines, e-commerce services and other traditional methods to sell and buy cars, trucks and automotive parts. With Automotix software, you can buy and/or sell new cars, pre-owned/used cars, damaged/repairable automobiles, classic and antique cars, OEM parts, car transmissions Car parts, auto parts locator, Chrysler Engine remanufactured and used car parts right from your PC, whether you are a small, large, business or an individual seller or buyer.

Buy Honda engines at great prices

These days’ maximum people use automobiles and they also agree to one important thing that engines are the most vital part of any automobile. If by chance incidents take place like engine breaks down at any point of time then there is possibility that a person would purchase fresh engine. However to purchase new set of engine becomes a costly affair for sure. Luckily, there is a great range of replaced engines. The choice to buy used engine is quite cost effective.

Earlier we had a perception that used engine do not last for long and it might not be effective for a long period. However comparatively some things have been changed tremendously. Currently there are few automobile companies that offer great quality used engines. Moreover large numbers of websites are operating as an online way to sell different kind of used engines like petrol and diesel engine for number of automobile models.

From last few years we have come to the conclusion that used engine live long when compared to new engine in market. Moreover it is necessary to have exact idea about authenticity of seller before purchasing any type of used engine. By chance if you are searching for finest offer on engine then it might not be a good business. Before you plan to buy any engine better approach reliable company.

Honda engines are really getting popular nowadays. People love to buy these engines but they are very expensive so people prefer to buy used Honda engines. With used Honda engines you can enjoy luxurious cars at affordable price.

Engine World USA is a leading name in the field of supplying engines to USA and Canada. A large range of new and used engines are available such as the Honda engines, Toyota engines and many more. All the engines undergo several tests for leakdown, compression and oil pressure. We follow the highest quality measure before shipping of any engine.

John

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