Chapter 794 The Big Pit

Alex has never been to the Elizabeth Oilfield, so he doesn’t know how the Adan Company exploits oil, but it is definitely not as chaotic as the vegetable market in Ahvaz. The oil wells of major oil companies are crowded together to join in the fun.

What makes people helpless is that Ahvaz is located in an inland area, 150 kilometers away from Port Elizabeth in the Persian Gulf, and more than 1200 kilometers away from the Mediterranean Sea. There are no oil pipelines leading directly to the Mediterranean Sea. Therefore, major oil companies dig oil from Ahvaz. The oil that comes out has to pass through Port Elizabeth before it can be transported away.

The problem is that Port Elizabeth is now under the control of the Umbrella Company. If Ahvaz’s oil wants to be shipped from Port Elizabeth, it has to pay high tolls to the Umbrella Company. This toll directly doubles the cost of Ahvaz’s oil, which seriously affects The profits of major oil companies. In order to change this situation, Royal Shell was preparing to cooperate with Standard Oil to build a new port along the Persian Gulf northeast of Port Elizabeth to get rid of the grip of Port Elizabeth.

Of course, the huge investment in the construction of the port depends on the oil reserves of Ahvaz. If half of the port is built but the oil in Ahvaz is tapped out, the loss outweighs the gain.

"The oil in Ahvaz, if we were the only company, it would be enough for us to dig for a century, but if everyone swarms up like this now, the oil in Ahvaz will be exhausted within ten years, maybe it will not take ten years." Christian Ted, the chief expert of the oil exploration company, is optimistic about the oil reserves in the Persian Gulf. In the last century, a large-scale oil field was discovered in Baku, north of the Persian Empire. Now oil has been discovered in Ahvaz and Elizabeth at the same time. The information shows that there may be a huge oil basin underground in the Persian Empire.

However, the current technology is still unable to make an accurate judgment on how much the reserves are.

Nominally, Christian Petroleum Exploration Company and Adan Company do not belong to each other. In fact, Rock owns the shares of Christian Petroleum Exploration Company, and Christian also owns shares of Adan Company. Under the premise of cross-shareholding, the ownership of the shares is not Obviously, this is also to reduce the tax burden.

"Don't worry, give me some time, and I will drive all these oil companies out of the Persian Gulf." Dunn has already used the oil along the Persian Gulf coast as the wealth of the umbrella company, and absolutely does not allow others to get involved.

"Then you should hurry up. More than a dozen new oil companies have been established in London in recent months, and those people are looking for oil all over the world." Ted knows the situation better, and there are only a few relatively large oil companies now. Well-known oil companies are plentiful.

The current situation of Adan Company has become the best illustration of the prospect of the oil industry. Two years ago, Adan Company did not exist, but with the help of the Elizabeth Oilfield, Adan Company became a leader in the oil industry in just two years, accumulating A large amount of wealth has stimulated countless investors to enter the oil industry with sterling, hoping to replicate the myth of Adan Company.

As for Adan's background, many investors don't care. Most of those who dare to invest in the oil industry have backgrounds and can see the future of the oil industry, so they are desperate.

The development of the oil industry has also gone through several stages, and the price will double almost every ten years. Since the beginning of the new century, with the emergence of the internal combustion engine, the world's demand for oil has increased significantly. Gasoline has become the darling of the market. Traditional petroleum refining technology can only separate gasoline from crude oil at most no more than 20.00%. The refinery in Port Elizabeth has used the latest "thermal cracking" technology to successfully refine gasoline from less than 20.00%. Improving directly to about 40.00% five.

"They have no chance—" Tang En didn't care. The prospect of the oil industry is indeed good, but the development of the industry will not always be linear, and the price of crude oil will also fluctuate with the market. These investors are very The brutality of the oil industry will soon be felt.

There is an undeniable fact that the current world is not seriously dependent on oil. In the 70s, the United States experienced a sharp drop in oil prices. The over-demand price plummeted, and countless investors suffered heavy losses. This is why Standard Oil has completed its monopoly on the market.

The current situation is very similar to that in the 70s. With the advent of the internal combustion engine, the demand for gasoline is increasing, but as the production of oil continues to increase, the market will soon be oversupplied, and there will be a large number of gasoline Oil companies disappeared without a trace.

The main reason why the supply will exceed demand soon is that the strategic reserves in southern Africa are about to be completed, and the umbrella company will release control and sell them in large quantities. The output of the Elizabeth oil field is almost half of Romania's oil production, plus the U.S. and Russia, those oil companies in Ahvaz now, it would be nice to have half of them left in two years.

This is how Rock explained to Ade.

"Southern Africa has the best cars in the world. Now the production of cars is increasing. The price of gasoline has become an important factor in the popularization of cars. What we have to do now is to reduce the price of gasoline and promote the popularization of cars. This will indeed affect It will benefit part of the enterprise's profits, but it will definitely be a great stimulus to the development of the automobile industry." Rock really wanted to experience the pleasure of manipulating oil prices. Now the oil industry is too chaotic and needs a major reshuffle. This is also the umbrella, royal Consensus of Shell, Standard Oil, and Stilva, which was acquired by Deutsche Bank.

Royal Shell and Standard Oil plus Stiva each account for 20.00% of Romania's oil production.

"If the price is lowered, it will harm the interests of Adan Company--" Ade doesn't know much about the cost of Adan Company. Compared with Romania's oil fields, Adan Company's biggest advantage is cost.

Unlike those oil wells in Romania that need to be manually dug, most of the Elizabeth oilfields are self-flowing wells, the kind where the oil will spray out by itself when a well is drilled on the ground. Adan Company has a huge cost advantage. Even if the current price is reduced by half, Adan Company will still make a profit, while other oil companies, including Royal Shell and Standard Oil, may lose their bottom pants.

As for Stilva, this company is not in the plan. After the outbreak of the world war, Stilva will be divided up.

"There will be some impact, but it is not important. Overall, it is still beneficial to us." Rockburn is worried that the loss inside the embankment will be compensated outside the embankment, and the loss of Adan Company can be compensated by the auto industry. Nyasaland used to only produce high-end products. Models, and now also start to produce a variety of low-end models, the price still has an advantage.

This is also impossible. When Nyasaland just started to produce bicycles, the Ford Company of the United States had not yet been established. Now Ford has withdrawn from the T-model, and the assembly line is also being designed. After the Hailanyuan factory is completed next year, Ford The company's output can reach a maximum of one every ten seconds. If Rock wants to popularize cars, the first thing he has to face is the competition from Ford.

Ford launched the Model T in 1908, established its first overseas sales organization in Paris, France, and built its first factory outside of North America in Rochester, England in 11 years. As for setting up factories in Europe, Roque will definitely not sit back and watch Ford seize the market.

Different from the Ford factory, the Nyasaland car factory has started to implement assembly line production a long time ago, but due to limited conditions, the output of Nyasaland car is not high, and there is a big gap with Ford.

The main reason for the gap is the number of workers and the size of the market. The current population of the United States is close to 1000 million, while southern Africa and Africans are still less than [-] million. The overall gap is too large. Even if more cars are built, they cannot be sold. , the market size is still too small after all.

The same gap is also reflected in the price. When the Ford Model T was first launched, the price was only 850 U.S. dollars, which was less than 200 pounds if converted into pounds. Rock launched civilian models.

Nyasaran Motor Group's latest civilian model is priced at only 150 pounds. Even at this price, Nyasaran Motor Group still has huge profits.

The biggest difference between southern Africa and the United States is that the United States abolished slavery. Although southern Africa has also abolished slavery in name, the rights of Africans in southern Africa cannot be guaranteed. The annual salary of a white worker or a Chinese worker must reach one About [-] rand, the annual salary of an African-American worker is only [-] rand.

Ford’s average salary for employees is about five dollars. This salary is a daily salary, which is almost 400 pounds if converted into an annual salary. In the future, the price of the Ford Model T will further drop to about 300 dollars. Ford workers only need to work Four months to buy a Model T.

Rock hopes that cars in southern Africa will be popularized to this extent in the future, which will be a great boost to the economy of southern Africa, and the whole country will benefit from it.

"If you decide to do it, I will explain it in London." Ade gave Rock full autonomy. If Rock wants to lower the price of oil, it will definitely have an impact on Royal Shell. Royal Shell looks like this name. I know that there are inextricably linked with the British royal family, and this relationship needs to be balanced by Adelaide.

This is also the reason why Ade is willing to take the blame for Rock. Adan Company is registered in the Adan Islands, which is not yet the territory of southern Africa, so Adan Company's income has nothing to do with the federal government of Southern Africa.

However, the export of Nyasaland's cars to Europe has a lot to do with the federal government of Southern Africa, and taxes are always payable.

(End of this chapter)

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