According to investment bank Goldman Sachs, we could see oil at $200 a barrel within a year or two. Wow. A year ago, who could have imagined such a thing? But it looks like it’s heading that way, so we better be prepared. And that’s where my list comes in, Five Things to Look For (and what it means and what can you do about it). Keep reading…

Five Things to Look For When Oil Hits $200

1. Fewer Flights, Less Choice

And we all know what that means: higher prices. You can still score cheap (or cheaper) tickets, but you will have to be more flexible than ever when it comes to all aspects of leisure travel.

2. Fewer Airlines

Some people saw this coming back when airline deregulation went into effect in 1978 — they called it the rise of the oligopoly, where a few (airlines) dominate the industry. What does this mean to you? See #1.

3. Calls for Government Intervention (or a Return to Regulation?)

Some analysts are starting to talk about the “mess” of deregulation, and a former airline executive is saying, yes, we should go back to deregulation. The downside: probably much higher airfare prices. The upside: we’d still have some airlines.

4. Watch for Heroes

Time for some heroes to emerge; maybe someone like Howard Hughes or more in the mold of Southwest’s Herb Kelleher? Or here’s an idea: once Richard Branson gets Virgin Galactic going to his satisfaction, maybe he can look into this situation. Which brings us to number 5…

5. Calls for Allowing Substantial Foreign Ownership of U.S. Airlines

Actually, this is already happening; according to a Reuters report the United States proposed a deal today to “sweep away a ‘global spider’s web’ of airline ownership rules, taking the EU by surprise”. It will be interesting to watch this scenario develop.