From: "Cyrus Bina" <binac@mrs.umn.edu>
To: "Cyrus Bina" <binac@mrs.umn.edu>, "Doug Henwood" <dhenwood@panix.com>,
"Rakesh Bhandari" <rakeshb@Stanford.EDU>,
"Patrick L. Mason" <pmason@garnet.acns.fsu.edu>
Subject: Re: economics of oil
Date: Tue, 27 Nov 2001 12:46:53 -0600
X-Priority: 3
Patrick,
Notwithstanding, the core of my argument is different from yours: (1) At the
highest abstract level I have developed a theoretical foundation for
'regulating' value, differential oil rents, and market oil prices globally.
This framework is reflecting the dynamics of accumulation, crisis, and the
price formation in the global oil industry, regardless of the role of the US
in the post-globalization era since the mid-1970s. (2) Somewhere around the
mid-1970s the post-war international system of Pax Americana was imploded
(and, with it, the hegemony of its hegemon!), leading to an era that I call
GLOBALIZATION. (3) I use the notion of hegemony in Gramsci's sense and thus
attempt at direct control of this or that would not amount to hegemony. (4)
Any arbitrary increase or decrease in the supply of oil by Sa'udis or others
would not automatically lead to change in the 'regulating' value of oil.
Hence, an increase of oil supply by, for instance, Sa'udis may very well
displace the oil from the less productive oilfields without changing the
'regulating' value and thus the longer term price of oil (on this point my
oil book and my recent response to Christian are both clearly pointing to
the same direction). (5) The oil rents are subject to the various
disbursements when it comes to the US foreign policy, both in the Persian
Gulf War (early 1990s) and now, the war against Afghanistan. The main
question, therefore, rotates around the oil rents. While it true that these
oil rents are price-determined, and there are attempts to determine the
price, nevertheless price determination will not be successful, given my
point in (1). (6) Finally, stability seems desirable, yet it is a hoax when
it comes to US actions at least during the last two decades or so.
Best wishes,
Cyrus
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