Reborn South Africa as a police officer

Chapter 1708 Trust Your Sister

At the moment in 1926, it was too difficult to form an organization like OPEC.

OPEC in another time and space, that was already in 1960, the background is that the famous Seven Sisters of Oil have monopolized most of the world's oil resources, and the interests of oil-producing countries have been seriously damaged. In order to break this monopoly, there is OPEC.

When OPEC was formed, it received almost no attention from the Seven Sisters of Oil, because no one was optimistic about this model at all, and everyone believed that this attempt would eventually end in failure.

It is true that in the first ten years of OPEC's establishment, OPEC did not play a big role, but in the 1970s, OPEC's role gradually emerged, because it played an increasingly important role in the competition of Western oil monopoly capital.

Little John's purpose is simple. Since the combination of Standard Oil and Adan can control more than 80.00% of the world's oil production, why not set up an international oil cartel to monopolize the global oil market?
This ambition is too big, beyond the scope of Alvin's authorization, and Rock still needs to make a decision in the end.

"Why is it a cartel, not a trust?" Rock had a big appetite, and Little John's proposal was to use the cartel's organizational structure to protect the US market.

Rock dared to take risks. Since it is a union, it should be more thorough. The establishment of a trust is more in line with Rock's requirements.

"Compared with the trust, the cartel must be more in line with the interests of Standard Oil—" Gold was more cautious, not as radical as Rock.

To put it more figuratively, the trust is the Rockefeller before it was forced to split up, and the cartel is an organization like OPEC.

The key is the right to manage the enterprise. All business within the trust, such as production, sales, and profit distribution, are all handled by the trust's leading organization—the board of directors and its affiliated organizations.The board of directors is manipulated by the capitalists of some larger enterprises.

The owner of an independent enterprise or a joint-stock company loses its original independent status after joining the trust and becomes a shareholder of the trust, receiving dividends according to the shares it holds. Participants can only obtain control of the trust through shares , and the only way to exit the trust is by selling shares.

The cartel is relatively independent. This is a conspiracy to turn a competitive market into a monopoly market. Through a series of agreements, the output and product prices of the entire cartel are determined, and the sales and sales areas of each enterprise are designated.

In this way, it is obvious that although the oil production in the United States is high, the oil reserves are obviously dwarfed by the reserves of the oil fields controlled by Adan Company. Therefore, if a trust is established, Adan Company will definitely be in a dominant position. Standard Oil is very unfavorable.

It would be much better if a cartel is established. At that time, Standard Oil can generously give up the European market, allowing a group of British oil companies to compete, and Standard Oil can monopolize the US market. This is in the best interest of Standard Oil.

"Then set up a trust. Anyway, the Americans can't get what they want." Rock was blunt. What the Americans wanted was what Rock opposed.

The information was sent back to Los Angeles, and Little John was very entangled.

With the establishment of a trust, Standard Oil will lose its dominance over the enterprise. Although it can make profits, at the level of Standard Oil, profits are not what enterprises value, but the market.

It is even more dangerous to take two shots at once. Before the discovery of the oil field in Najd Sultanate, Adan Company was aggressive and used low prices and better products to attack the market. Standard Oil had been retreating steadily and was in a panic.

If you add the oil fields of Najd Sultanate, this will bring disaster to other oil companies.

Otherwise there would be no meeting.

The next morning, Little John convened representatives of other oil companies except Southern African Oil Company in the conference room of the Rhodesia Hotel to discuss the countermeasures.

William Jr. and Mellon Jr., as well as Thompson and Richard Bloom arrived as promised, but the general manager of the Texas company was nowhere to be seen.

Little John didn't take it to heart, it's okay to lose a Texas company, and it doesn't affect the overall situation.

"It's not impossible to establish a trust, but we must meet our requirements—" Little William never forgot about Khuzestan. If Adan Company is willing to return the Abadan refinery to Persia Petroleum, then Persia Petroleum will agree to join the trust. .

The situation of Standard Oil is not good, and Persian Petroleum is on the verge of extinction, so it can only struggle to support it.

Therefore, the establishment of a trust is a good thing for Persian Petroleum. In exchange for a company that is on the verge of bankruptcy in exchange for a fixed high income, Little William can accept this result.

Little John can only look up to the sky and sigh. Sure enough, not all rich second generations can succeed smoothly. Compared with Little William, Little John would rather deal with Alvin.

Alvin's arrogance is a bit arrogant, but he still has a bottom line in doing things, unlike Little William, who doesn't feel bad about selling his grandfather.

"No, no, no, now is not the best time to unite. We still need some time." Richard Bloom disagreed. Even if the trust was established, it would have to wait until Venezuela's oil fields were officially put into production.

It will be at least one or two years before the Venezuelan oil field is officially put into production. Now Anglo-American Petroleum has no profit on its books, and the prospect of the oil field is not clear enough. If a trust is established, the interests of Anglo-American Petroleum cannot be guaranteed.

"Gulf Oil can only accept the form of cartel." Thomas Mellon Jr. has a firm attitude. After the establishment of the trust, it is hard to say who will get control of the board of directors of Adan Company or Standard Oil. Anyway, it will not be the turn of the Gulf. oil company.

Compared with Standard Oil, Gulf Oil still has confidence. After all, the US Treasury Secretary is still the old Mellon. With this advantage, even if it does not participate in any organization, it will not have much impact on the interests of Gulf Oil.

"Then what are we talking about, let's compete according to our own abilities!" Royal Shell has the confidence, and the oil fields in the Aden Protected Area seem to be doing well now.

It's a pity that this confidence will not last too long. The oil reserves in the Aden Protected Area are not large, and it will be completely hollowed out in a few years. It depends on what you will do with Royal Shell.

To be honest, this messy situation with different ideas made Little John very desperate.

But it’s okay not to talk, if no agreement can be reached, then the British and American oil companies will be defeated by Adan Company sooner or later.

Little John is not easy to mess with. Adan Company wants to swallow Standard Oil with the help of the trust, and Little John is not helpless.

"Gentlemen, if we can't reach an agreement, then Standard Oil will also lower the price to five shillings a barrel." Little John is going to blow himself up, and five shillings a barrel has already broken the cost of Standard Oil.

"Are you crazy?" Richard Bloom screamed. Although Venezuela's oil fields have not yet been put into production, the cost must be more than five shillings a barrel. Anglo American originally hoped that Venezuela's oil fields would recover blood. If Standard Oil also cut prices , then Anglo American Petroleum will lose everything.

"Hehe, do you think that you can defeat Adan Company in this way? What if Adan Company continues to cut prices?" Little William sneered. Although Persian Petroleum's life is not easy, but seeing the bad luck of American companies, Little William is actually happy——

In this case, it is hell to be able to work together!

"No, no, no, you are all wrong, Standard Oil has never regarded Adan Company as a competitor—" Little John also sneered, what should we do if we meet a bear in the forest?
It doesn't have to be faster than a bear, just faster than your companions.

To put it bluntly, the oil market is big enough, and it is certainly impossible for Adan Company to swallow it all. With its strong capital accumulation, Standard Oil does not need to completely defeat Adan Company, but only needs to eliminate those weak competitors one by one. Standard Oil still survived.

After thinking about this, Little William and Richard Bloom looked at each other, unable to laugh anymore.

Thomas Mellon watched with cold eyes. Although Gulf Oil is not as big as Standard Oil and Adan, it will certainly not be the first to be eliminated.

"So what's your opinion?" Little John showed a fierce look.

"What do you want to do?" Little William frowned, and he had to bow his head under the eaves.

"If we don't unite, then sooner or later we will be defeated by Adan Company one by one, so we must join hands to fight against Adan Company and gain the dominance of the board of directors." Little John will fight to the death. If the seven oil sisters unite, it is really hard to win easy to say.

Now it was William Jr.'s turn to tangle with Thompson and Richard Bloom.

If you disagree with Little John's suggestion, these three companies will definitely be eliminated first. After all, American oil companies can still survive with the help of the US government.

Adan Company is a Commonwealth enterprise, and the royal family has shares. These three companies will face the competition of Adan Company.

Agreeing is even more troublesome. As a British company, instead of uniting with Commonwealth companies, it unites with American companies to deal with Commonwealth companies.

At this moment, Little Mellon's assistant came in and whispered something in Little Mellon's ear.

Little Mellon was expressionless, and the assistant tapped the table after leaving: "Gentlemen, a super oil field was discovered in the Gulf of Mexico, I think you should be more interested in this news—"

Thompson got up and left without saying a word.

Royal Shell is seeking to acquire Mexico's largest oil company, Mexican Eagle, which now ranks third in the world in terms of oil production, after southern Africa and the United States.

Richard Bloom got up and said sorry, and then left in a hurry. Well, there is hope for Anglo American Petroleum in the Gulf of Mexico. If you start early, you will be more sure.

Serena William looked up to the sky and sighed, the Gulf of Mexico was too far away from Persia, and Persian oil would never be available.

Little John's face was livid, is this still the trust?

Trust your sister!
(End of this chapter)