Rising Oil Prices Hit Airline Industry Hard

The Dynamic Wealth Report
January 4, 2008

$100 Oil Spells Trouble For These Guys

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.

Indian 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. 

-------------Sponsor-------------
Where Can You Turn $300 Into $1.3 Million Right Now?

Our own small-company specialist, Robert Morris, has found a way to 'sniff out' tiny penny stocks on the verge of a major breakout.  And the timing for this has never been better.

You see, the system takes advantage of an obscure SEC regulation that sends penny stock prices through the roof.

We've seen some stocks gain 852%... 5,450%... even 17,496% in no time flat.

Click here for the details...
-----------------------------------

•   Janney Montgomery Scott upgraded a handful of companies in the water industry including American States Water (AWR) and Aqua America (WTR).

•  Intel (INTC), the giant computer chip manufacturer was battered this week by two downgrades from Banc of America and JP Morgan.

•  UBS initiated coverage with a buy on consumer products company Johnson & Johnson (JNJ).

 Print Page                                                   Bookmark Us