Chapter 1918 Oil Storage
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Happy times must come to an end.
Before David and others got into their cars and left, they all told Li Zitao that they would donate part of the family collection to his museum.
Li Zitao promised: "I will write your name in the most obvious place to ensure that everyone who walks into the museum will see it."
"It could not be better."
The vehicle started and headed down the road to the nearest city airport.
Their private jet has been waiting on the runway for a long time.
"It's time for us to set off." Li Zitao boarded H3 and leaned back on the seat with his eyes closed to relax.
"So, BOSS, what's the final answer?" Evelin had to take the initiative to mention it after the vehicle started.
"What?"
Seeing her innocent expression, Li Zitao suddenly said: "Oh, about the Williston Basin."
"Of course, they agreed. This is indisputable. They invested US$5 billion in the early stage and contacted those who were willing to sell first."
"Understood." Evelin wrote down this matter in her notebook.
In the Williston Basin, this investment will become Mobil’s most important investment project in the next 5 to 10 years.
At the same time, it is also directly related to the future destiny of Mobil.
"All expected dividends were canceled before the project was finalized, bringing everyone back to work and having their vacations terminated."
This project is too important, not just the amount of investment from Mobil.
The exploration and development of the Williston Basin is also related to future oil prices.
If a large amount of oil and natural gas reserves are discovered there, and Mobil announces that it will start mining, international oil prices will once again experience exciting roller coaster fluctuations.
The worst offenders are naturally the oil countries, the Middle East, Saudi Arabia and other places.
But don't worry, in Li Zitao's plan, he was not prepared to do this.
The discoveries in the Williston Basin will become Mobil's oil reserves, and they will not be put directly into the market.
Although it will still have a certain impact on prices, at least it will not give investors a heart attack.
"Are we going to build a new oil storage warehouse?" Evelin was a little surprised.
There is no such item in Mobil's plan, and BOSS has never mentioned it.
"No, we directly hand over the oil to other oil companies for storage."
Li Zitao smiled and shook his finger and said, "Don't forget, there are still so many oil giants in the United States, and their warehouses are all empty."
"But by doing that, there's a good chance they're going to use that oil reserve or use it to take out a loan... If we have serious economic problems, we're probably going to lose everything."
Evelin didn’t understand how BOSS could come up with such a bad idea.
"It's not possible, it's certain...according to what you said."
Li Zitao's plan is not to reserve oil in other companies for free, but to reserve it with a mortgage.
All companies are controlled by the Rockefeller family.
The amount of oil reserves will be pledged with equivalent funds at Wells Fargo Bank.
At each settlement, Wells Fargo will balance out an equivalent amount and put it into the insurance account.
Once there is any problem with the oil reserves, Mobil will immediately receive full compensation from the account at the equivalent price in the real-time market.
"Sounds like a good idea!" Evelin wasn't sure if this was a good idea.
"I know what you're going to say, don't say it!" Li Zitao stopped her from continuing.
In fact, there is still a certain risk in this matter...
Well, it must be admitted that there are significant risks.
Because oil prices will change with the market, margins will not.
However, there is always some trust in being a human being.
This is his trust in David and Lawrence. Li Zitao believes that they will not mess up on this matter.
In fact, the reason why he thought of handing over the reserve oil to other companies to store it on his behalf.
It's all about David and Lawrence's needs.
The oil market is booming, but that does not mean that all oil companies are doing well.
Why did David take the initiative to discuss oil reserves with Li Zitao?
Isn’t that because Mobil has taken over all the newly discovered local oil fields in recent years?
Mobil's output is increasing year by year, and its market share is soaring like a rocket.
The orders of other companies have been reduced and reduced again and again.
This is not only true in Europe and America, but also in Asia and Africa.
The output of the Persian Gulf not only meets local needs, but also reaches as far away as Europe and other places.
Washington has been requiring oil companies everywhere to maintain a certain amount of reserves.
But in recent years, other companies, including oil majors like Exxon and Chevron, have used reserve oil.
If you don't use it, you can only watch Mobil seize the market that originally belongs to you.
But if this continues, they will be discovered by Washington sooner or later, and no one knows what trouble they will cause.
The only thing that is certain is that those politicians who are afraid of chaos in the world will bite them like mad dogs.
We won't stop until we tear off a piece of bloody flesh!
If Mobil hadn't merged with Standard Oil of Alaska, it would be a miserable life now.
In fact, the reason why Li Zitao agreed to this was not just that building a self-built reserve warehouse was too expensive, too time-consuming and too troublesome.
Moreover, after a period of time, these warehouses are often eliminated.
In the end, it can only be reduced to waste sitting on a desolate land with no one caring about it.
All right!
Closer to home, this is not the main reason.
The most important reason is to maintain market stability and give Mobil enough time to gradually annex a larger market.
Sometimes having too many reserves is not a good thing, and falling oil prices makes it difficult for everyone.
But the one most affected is definitely Mobil.
Mobil is the world's number one oil company, more powerful than the two Dutch Shells combined.
Any fluctuations from the international market, even small fluctuations.
It could potentially cost it hundreds of millions of dollars, which is by no means good news.
That's why Li Zitao agreed to David's proposal.
Doing so will not only stabilize oil prices but also reduce costs.
At the same time, it can also give Mobil more time to solve the problem...
Small companies have the same troubles as small companies: lack of money, lack of talent, lack of technology, lack of everything!
For large companies, their biggest problem is that they don’t lack anything.
Not only is there no shortage, it is far more than what is needed.
The principle of inflation couldn't be simpler, and this is the problem Mobil is encountering now.
If they just continue to move forward recklessly, the final result may be a collapse of national oil prices.
Of course, by doing this they can make a fortune in the stock market.
But the trouble brought by this money is far more serious than its value.
To them now, to all Mobil shareholders.
They can make money lying down anytime and anywhere. If that's the case, why do they have to make decisions with huge hidden dangers.
You must know that no matter how deep you bury the bomb, it will explode one day.
This is a lesson and experience from history!