Socialist Perspective on Oil Profits

[inthebrain]

I really enjoy reading the WSW. Their analysis is excellent and their out of the box thinking is refreshing in todays political climate. Reading these articles is like a secret pleasure. It's like mid candy for the soul I suppose. I don't agree with all they have to say but I think they offer valuable perspectives and ideas.

This article on the oil crisis and obsene profits offers some good food for thought.

This is a snippet from the middle of the article

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Exxon’s profits amounted to $128 million a day or nearly $1,500 a second. Its quarterly profit was slightly larger than the gross domestic product of Afghanistan.

The huge profits raked in by the oil giants while consumers stagger under high fuel prices is generating popular outrage. Oil company executives have deflected calls for a windfall profit tax by claiming the money is needed for investment in exploration and production. However, Exxon plowed $8 billion this quarter into repurchase of its own stock, a move solely aimed at enriching executives and investors. A report indicates Exxon spent only one percent of its $41 billion in profits last year into research into alternative energy sources.

Between 2005-2007 Exxon spent $89.5 billion on stock buybacks and just $2.9 billion in research and development. For its part, Shell handed out $3.8 billion to investors through stock buybacks and dividends in the second quarter. The five largest oil companies operating in the US collectively spent $194 billion on stock repurchases from 2004 through the first quarter of this year.

The major US oil companies appear headed for a combined $160 billion in profits for 2008. That compares to $123 billion in 2007.

Exxon and other oil companies have rewarded their CEOs with multi-billion dollar payouts. Last year Exxon CEO Rex Tillerson cashed in $16.1 million in stock options in addition to his $1.75 million salary. He also received a $3.36 million bonus. Conoco Chairman James Mulva received $31.3 million last year.

The failure of the oil monopolies to redirect any significant portion of their vast resources to research into new energy sources in the face of the dwindling supply of fossil fuels and the danger posed by global warming refutes claims that the capitalist market can be relied on to rationally distribute resources. This is further underscored by the activities of speculators, including giant hedge funds, which have racked up huge profits from oil commodity speculation while returning no value to society.

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The rest can be found here;

http://www.wsws.org/articles/2008/aug2008/oil-a06.shtml

[anonymous171]

1. I'm no socialist but the more I see of these oil companies' profiteering

the more I think that nationalized oil is the way to go.

[inthebrain]

2. I don't know where to go with it

I thik we should just get off the shit. That stuff is like crack for wealthy people and all it does is make life miserable for you and me.

I'd like to see us move to wind and solar to power and heat our homes. It would be awesome to make energy bills a thing of the past.

[Spider Jerusalem]

10. Please explain what good that would do.

Considering that the US must import nearly 75% of the oil we consume, how does nationalising our oil resources accomplish anything? Considering that oil is a commodity which is globally traded on an open market, and that the mechanics of supply and demand in setting the price outweigh the ability of any country which is a net importer to establish price levels, is it even possible? I would say the answer to that question is 'no'.

[Democrats_win]

3. Shows the tremendous danger and selfishness of the situation.

[inthebrain]

4. What do you think of nationalizing oil?

Making it a public enterprize rather than private?

[spag68]

5. I admit to being a socialist,

well really more of a Marxist, however It is not necessary to nationalize the oil companies. Maybe the way to go would be to demand a more fair share of the profits that they take from OUR lands and seas. ON top of that instead of giving them tax breaks, why not actually make them pay a fair share of taxes. Any combination of these two suggestions would make life better here. Oh by the way forbid them from making any political contributions, and don't give me the free speech stuff, corporations are not people, they are just paper entities designed to ex track the most profit and pay the l;east wages to workers that they can. Who can believe that these oil companies do not collude to set prices? That in it self is a crime. Who can believe that these same corporations pillage other third world countries of their resources? If we do not recognize soon the damage of the ultra-wealthy and their paper money machines, then a few will be living the good life, with their private armies and the rest of us will be New Orleans. Better learn to grow food and survive on less or pay the price. Again I reiterate, the answer is fairness, for the investor, and for the workers, it is an old idea, but a good one.We are back to unionization as the only answer for robber barons and their idea that they are born to rule.

[inthebrain]

7. I could agree with nationalizing these Corporations

Furthermore, taking the profits and using them to cut taxes would be a wise idea.

[avaistheone1]

8. I have no problem nationalizing them either.

given how the oil companies have reeked economic devastation over this country over the course of these last eight years. The oil companies have brought this country to its knees.

[inthebrain]

9. I think Wal Mart should be next on the list

[inthebrain]

6. up