Here is update on Petrobras new Plan 2011-15, it will be a big hit to calciners green anodes “lone hope” for more tonnes.
The first road to ruin is for an oil company to start paying too much attention to what stockmarket analysts (idiots implied/given) say about its share price. They never understand fundamentals of the oil industry let alone smart strategic decisions that go against the economics of the day/short term, and even when everything is channeled into dividends & stock price….they are never satisfied and punish oil companies for not meeting “expected higher returns”.
These analysts are responsible for the death of innovation – they harped on Oil industry R&D expenditures that they wanted channeled into dividends until “R&D” became simply “D” and then only a token D.
The chant for pushing everything into E&P and withdrawing funds/investments from Downstream is short road to hell that Petrobras will have lot good company with other majors that have sold out to Wallstreet a long time ago. The only reason E&P always looks good is that all profits are forced there because the company can take tax write-offs.
Wallstreet loves E&P because of volatility – look at pure upstream producers (like Anadarko) sure they have runs at higher stock prices but they also have lower lows when market is down. If speculators weren’t pushing prices instead of fundamentals – oil & their stock price would be half what stock market is showing now.
Let’s hope the details of actual plan are more hyperbole than fact, and PB is speculating the speculators on this.
Regards
