Chapter 1710 the Scruples of the Bosses

Yang Cheng suddenly laughed and pointed out, "Ms. Burns, have you forgotten that you also have shares in Beihai Petroleum?"

Burns froze for a moment, as if he had been pinned by a time stopper, and then smiled wryly, "If you don't remind me, I'll really forget~"

Yang Cheng spread his hands, "So, do you still want to persuade me to give up entering the Permian?"

"Although North Sea oil also has my interests, I still want to remind you to make a good cash reserve if you really decide to enter the Permian Basin."

This is a friendly reminder that Yang Cheng understands that with the current crude oil glut persisting and oil prices still low, cash-rich supermajors such as EssenMobil and Chevron can still rely on profits from their refining products to ease the production sector. With the impact of dwindling cash flow, independent oil companies do not have strong financial reserves, and as a result many small companies are being snapped up by supermajors expanding their operations in the Permian Basin.

This is the reality of the Permian.

But cash has never been an issue that Beihai Petroleum needs to worry about. Yang Cheng asked, "Ms. Burns, I think your interests in Beihai Petroleum are far greater than that of EssenMobil, right?"

Burns was puzzled, "What do you want to say?"

"Recommend me a target that can be acquired?"

Burns flatly refused, "No~ Jason, are you asking me to give up my professional ethics?"

"Of course not, Ms. Burns, you misunderstood me. I didn't mean to snatch prey from EssenMobil. All I need is a potential target, an object that can be acquired. This is all public information, and there is no problem of leakage. , just saves the time of investigation.”

Sometimes this is the case, a sentence can have different meanings if it is said in a different way.

In this way, Burns’s resistance is not so strong, “There is indeed a good target, Endeavor Energy, headquartered in Midland, owns 350,000 acres of land in the Midland Basin, but the price is a bit expensive , the current estimated asset sale price is as high as $6.5 billion.”

Yang Cheng was startled, "So expensive? It's not a premium!"

Burns imitated Yang Cheng and spread his hands, "This is what I said just now, there is no soil for small and medium-sized companies to survive in the Permian."

Thinking about the land that Uncle Tan bought for 12 million US dollars, I instantly felt that this land was no different from cabbage.

I also thought so when I bought a bag, and then I was sprayed like a dog.

"I see, I will focus on following up on this company."

The next day, Abramovich and Conrad flew to New York less than an hour apart, and then rushed to the New Times Building without stopping to meet Yang Cheng.

Fortunately, they all had private jets, and they had a good night's sleep in the sky, and they all seemed to be in good spirits.

"Jason, I declined the appointment of Vice President of Israel~"

Conrad immediately said, "I even gave up on attending the business summit."

Yang Cheng's face darkened, "Stop talking, one of you is picking up girls in Australia, and the other is studying immigration in Israel, do you really think I live in the last century?"

These two thick-faced and dark-hearted guys didn't feel ashamed when they were exposed. Instead, they licked their faces and said, "No matter what, we came all the way here, and we are sincere enough. Come on, what's the matter?"

Yang Cheng cleared his throat, "Ahem~ I think Beihai Oil should enter the Permian Basin~"

As a world-renowned large oil field, how could Conrad and Abramovich, both energy tycoons, not know about it?

However, they were not in a hurry to express their opinions. After looking at each other, they fell silent.

Yang Cheng was not in a hurry, and waited patiently. After some time, Conrad said, "Jason, isn't it too late to enter the Permian?"

This is exactly the same as what Burns said~

"Is it too late? I think it's just right. It's not too late for us to grab a piece of cake and eat it before the integration of the super giant companies has been completed~"

"Have you calculated the investment budget?" Abu asked~

"10 billion,

At least! "

Conrad agrees, "There have to be so many."

"I'm afraid it's more than that~ I met with Ms. Burns yesterday, and she provided us with an acquisition target - Endeavor Energy. The current asset estimate has reached 6.5 billion, including the premium, and it is estimated that there is no 8 billion that cannot be bought~"

Abu waved his hand, "Leaving aside the acquisition target, have you ever thought about the future development of the kerosene industry? So far, the kerosene industry has not really generated profits~"

Yang Cheng nodded affirmatively, "Of course I have considered it. First of all, the problem for shale oil exploration and producers is that they have not been able to structurally reduce the break-even price. Many people say that the cost of shale oil is low, which has nothing to do with labor and service costs. There is a relationship between periodic and temporary declines.

The downturn in the market has led to lower prices for equipment and rigs, completion services, frac sand, etc. Oilfield service prices can rise again as activity picks up, oilfield service companies will demand higher prices, labor shortages will drive wages up, etc. Wait.

So as the price of crude oil rises, the breakeven price will also rise. "

Hearing Yang Cheng's professional analysis, Conrad and Abu were relieved. They were afraid that Yang Cheng was acting impulsively. After all, after working together for so long, it would not be worthwhile if the cooperation broke down because of his insistence on going his own way.

But Conrad asked back, "Why would you venture in if you knew?"

The answer Yang Cheng gave was, "Don't forget, our real goal is to secure enough reserve fuel for Delta Air Lines. In the next step, we will promote our fuel products and the added value of fuel throughout the SkyTeam alliance." Far higher than the value of direct extraction of fuel oil."

This is not a problem, Abu admitted, "Indeed, we don't have to be swayed by the purchaser's attitude."

Yang Cheng broke another news, "Delta Airlines is planning to acquire the Philadelphia oil refinery recently. This is one of the top ten oil refineries in the United States. There are abundant transportation pipelines in the Permian Basin. It is a bit far from Philadelphia, but it is not impossible. It can be achieved, and if it is not possible, shale oil can be purchased from the Bakken Oilfield and transported to Philadelphia to be refined into refined oil.

At that time, including Beihai Petroleum's refineries, one south and one north, will be enough to guarantee our production capacity and oil output. Even if the price can only be maintained at around 50 US dollars in the next few years, as long as the production volume increases, there will definitely be profits. After all, there are Delta Air Lines and alliance members are responsible for footing the bill, it's just a matter of earning more or less.

Moreover, the downturn in oil prices cannot last forever. The major oil giants will never allow their own interests to continue to be hit. As long as the price of crude oil returns to above US$100, I don’t need to say anything later, right? "

Abu and Conrad looked at each other, and Yang Cheng's analysis was straightforward, directly blocking what they wanted to refute.

In fact, it is not that they are not optimistic about this project, it is just that North Sea Oil belongs to the category of traditional crude oil, and they have to consider whether they can afford the unknown risks brought by rushing into another camp.