[Marxism] Why Cuba's dreams of major oil discoveries might come true

nada dwaltersMIA at gmail.com
Wed Apr 8 15:11:55 MDT 2009


S.A. wrote:

"That is simply not true. If it were, Exxon wouldn't have spend 1.5 times
its capital spending budget on stock buybacks.

"As for the relativity of oil earnings being down-- can't get more important
to the history of capitalism since 1973 than the relative increase or
decrease in oil earnings-- those changes prefigure, determine even, every
significant event in the past 36 years."

I'm not sure this contradicts what I stated, or is that relevant. I said 
stock drops for oil companies are "relevant" since they always make 
money. Instead of making super-duper profits like in July of last year, 
they only make super-profits. Poor babies. But it has an effect and I 
don't deny it.

One might add why they didn't do any stock buybacks last year as the 
price was *going up*? Stock buy backs are great for corporations that 
want to distill more control among the bigger stock holders and, of 
course, bring up dividend payments.

Oil companies, despite large profits have to spend a lot of capital as 
well. It is not like you have this oil well pumping out 10k bbls a day. 
Out put *always* falls off and new wells have to be dug, new fields 
brought into play, red-rilling of old fields, etc etc.

I don't disagree with you about the *role* oil plays. In fact it's 
*constant*...as I noted previously, if there is oil, oil companies want 
to control it or as great a percentage of it as possible (thus, 
Euro-petroleum companies more comfortable with sharing Venezuela's oil 
wealth than US companies who wanted all of it).

We can argue over how obsessive oil companies are to get a part of 
Cuba's oil. If we just go with the facts of the article that Fred 
posted, you will see that every company that can wants in. "It's a 
leasers market" as I see it, and Cuba is in the drivers seat.

You are correct on your first comment previous to the last one: I 
commented mostly on Cuba's role, per se, and interests in this, as 
opposed to US oil companies. I don't think I was wrong in either case.

David





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