Chapter 767 Split and Merge

While intelligence organizations were taking action to tap Jewish talents, good news came from Europe, that is, the British agreed to cooperate with Australasia on oil prices.

In fact, it was inevitable. As far as the Persian Gulf region occupied by Britain and Australasia is concerned, the best outcome for the two countries is win-win cooperation.

So far, the oil fields in the Persian Gulf are a fact that cannot be concealed. The whole world knows that there are a large number of oil fields in the Persian Gulf, and all countries have no way to deal with it.

Because the oil fields in the Persian Gulf are firmly controlled by two countries, which are the current world's number one power, Britain, and the world's third power, Australasia.

With the cooperation of these two countries, the situation in the Persian Gulf region is as unshakable as steel. Even if France and other powers unite together, they will never be the opponents of these two countries.

Of course, part of the reason is that other powers have encountered problems of one kind or another and do not have the strength of their peak period.

After consultation between the two sides, Britain and Australasia decided to jointly establish the Persian Gulf Alliance to use the Persian Gulf Alliance to control the oil prices in the world region.

The operation method is also very simple. When the oil price is too high, all the oil companies under the two countries will increase production to balance and reduce the oil price.

When the oil price is too low, the oil companies under the two countries will reduce production to increase the price of oil.

Because they control most of the world's oil, they don't have to worry about other countries competing with them.

You know, the oil fields in the Persian Gulf are shallow oil fields, and the development cost is much lower.

In addition, the oil fields are relatively large, and no country can currently compete with the Persian Gulf Alliance of the two countries.

The first thing after the formation of the Persian Gulf Alliance is to discuss the current trend of oil prices.

According to the opinions of both parties, it was finally decided to control the oil price at 35 pounds per barrel, which is about 7 Australian dollars.

Depending on the transportation costs in various places, oil will still have certain fluctuations. It is expected that the final world average oil price may be between 8 and 9 Australian dollars, which is almost the current limit of oil.

After all, whether it is Australasia or the United Kingdom, they are only thinking about making enough profits through oil.

The time to truly achieve strategic goals through oil should be when the conflict intensifies in the future.

When World War II breaks out, countries around the world will understand how important the oil alliance between Australasia and Britain is.

When the price of oil rises to a point where other countries cannot afford it, oil will become an important strategic resource that is out of reach for the enemies of the two countries.

Although the price of about 7 Australian dollars per barrel of oil does not seem to be very high, the cost of exploitation of the Persian Gulf oil fields is indeed very low.

According to the current oil field exploitation in the area controlled by Australasia, the cost of exploitation per ton of crude oil is about 7 Australian dollars.

You should know that this is only the cost of exploitation per ton of crude oil. One ton of crude oil can hold about 33 barrels (depending on the density of the crude oil, that is, the degree of viscosity), and each barrel of crude oil is 42 gallons, which is equal to 99 liters.

Spread to each barrel of crude oil, its exploitation cost is only about 5 Australian dollars. This also means that Australasia can earn a gross profit of 2 Australian dollars for every barrel of crude oil sold.

Minus the transportation cost of oil, the loss during transportation, and the different oil prices in different places, the final profit per barrel of crude oil is about 5 to 8 Australian dollars.

With such data, Arthur couldn't help but sigh at the huge profits brought by oil trade.

The current world oil market can be described as an oligopoly. In 1929, the total world oil production reached a terrifying 200 million tons.

Before the United States perished, the United States' oil production ranked first in the world. But after the United States was divided into multiple countries, the throne of the world's number one oil production fell into the hands of the British.

According to the colony and oil field data held by the British, in 1929, Britain's oil production reached 49.21 million tons, accounting for 41% of the world's total oil production.

The second place is Australasia, with a total oil production of 17.98 million tons, accounting for 98% of the world's total oil production.

The third place is the Lone Star Republic, with a total oil production of 15.47 million tons, accounting for 9% of the world's total oil production.

The fourth place is Russia, with a total oil production of 11.49 million tons, accounting for 5% of the world's total oil production.

The fifth place is the South Coast Federal Republic, with a total oil production of 10.85 million tons, accounting for 9% of the world's total oil production.

The sixth place is Venezuela, with a total oil production of 6.53 million tons, accounting for 4% of the world's total oil production.

The seventh place is Mexico, with a total oil production of 3.22 million tons, accounting for 7% of the world's total oil production.

The eighth place is Romania, with a total oil production of 1.95 million tons, accounting for 6% of the world's total oil production.

In addition, Canada, Peru, and Argentina also have a certain scale of oil industry, but the proportion is not very high, and the oil production has not exceeded one million tons.

From this oil production ranking, the oil production of various countries seems to be blooming everywhere.

But those who understand the world situation will know that the oil production of some countries seems high, but they are controlled by the powers behind them.

The produced oil will be sold to the powers at a low price, and it will not bring any benefits to the country and its people.

Even in the production of oil, the people of the country will be forced to become oil workers and be exploited by the powers in disguise.

Although there are no French figures in the rankings, the oil of the Lone Star Republic and the South Coast Federal Republic is jointly controlled by the French and the British.

In addition, the oil of many regions has the presence of French capital, which is why the French have achieved the achievement that France is not on the list, but French capital is everywhere.

Of course, France is destined to be incomparable with Britain. Britain's extensive colonies have many oil-producing areas, especially the Persian Gulf, where a large number of oil fields have been discovered.

If the world's main oil-producing areas were in the United States in the first 30 years of the 20th century, then in the following time, the world's main oil-producing areas will slowly shift to the coast of the Persian Gulf.

More importantly, the oil along the coast of the Persian Gulf is simpler to develop and the cost will be lower.

The oil production in the United States looks huge, but the cost is about half of the oil price, which has greatly reduced the profit of oil.

Since cooperation has been reached with the British, Arthur will naturally not hide his shortcomings in the Persian Gulf region.

To be honest, if it were not for the worry that the British would have ideas about the Persian Gulf, Australasia would have already mined a lot of oil in the Persian Gulf.

With the huge oil reserves in the Persian Gulf, Australasia can easily become a major oil exporter and even monopolize half of the oil market.

This is much more cost-effective than the United States' previous oil exporting power. The Americans' final oil export benefits are not even half, while Australasia's oil export benefits can reach more than 70%.

Arthur's next plan is to catch up with Britain in terms of oil production. After the British took over part of the oil fields in the United States, the scale and output of the oil industry have accounted for nearly half of the world's total oil production.

Such a scale is very exaggerated and must be guarded against and resolved. The annual oil trade will bring a lot of profits to the British, and the British will arm themselves more powerfully with this money.

This may not be a good thing for Australasia, and the same is true for the situation in Europe.

What Arthur can do is to try to seize the oil market without falling out with the British.

This is not only about the benefits that can be obtained at present, but also about the results that Australasia can achieve in oil after the outbreak of World War II in the future.

After the establishment of the Persian Gulf Alliance, Arthur also split and integrated the oil companies in Australasia.

First is the largest Persian Gulf Oil Company, which is a joint venture between the royal family and the government and the main target of this integration.

The current oil market is an oligopoly. If Australasia wants to occupy enough market share in oil, it must cultivate an oil giant.

The Persian Gulf Oil Company is the most suitable choice. This is not only a joint venture between the royal family and the government, but also has been rooted in the Persian Gulf region for a long time, and owns a large number of oil fields in the Persian Gulf region.

The share of the Persian Gulf Oil Company in Australasia's annual oil production accounts for more than half, which is enough to show the market share of the Persian Gulf Oil Company.

After consultation with the government, Arthur merged all the oil companies controlled by the royal family into the Persian Gulf Oil Company, and increased the investment ratio with the government.

After the split and integration of the oil industry, the number of oil companies is much smaller.

The first is the Persian Gulf Oil Company, which has two subsidiaries, the Australasian National Petroleum Company and the Royal Petroleum Company, and has completely become the super giant in the Australasian oil industry.

In terms of shareholding ratios, some changes have also been made.

First is the Persian Gulf Oil Company as the parent company. The Australasian government invested another A$30 million, plus the mining rights of multiple oil fields, accounting for 51% of the shares of the Persian Gulf Oil Company.

The Royal Consortium invested another A$25 million, plus some oil mining technology, accounting for 8% of the shares of the Persian Gulf Oil Company.

The Noble United Consortium invested A$5 million, accounting for 2% of the shares of the Persian Gulf Oil Company.

The Royal Relief Committee invested A$3 million, accounting for 2% of the shares of the Persian Gulf Oil Company.

The national oil companies under the Persian Gulf Oil Company have equity ratios of: 50% for the national government, 10% for the royal consortium, and 40% for the Persian Gulf Oil Company.

According to this equity ratio, the national government can occupy 4% of the shares of the national oil company and can control the sovereignty of the national oil company.

The same is true for another royal oil company. The equity ratio is: 50% for the Royal Consortium, 10% for the National Government, and 40% for the Persian Gulf Oil Company.

In the end, the Royal Consortium holds 32% of the Royal Petroleum Company and can also occupy the sovereignty of the Royal Petroleum Company.

As for the attached Noble United Consortium and the Royal Relief Committee, it is simply to create some income for these two institutions.

After all, the Noble United Consortium needs to pay a large amount of funds to all nobles every year, and the Royal Relief Committee also needs to pay a large amount of subsidies to the poor groups in the country every year, and the expenses are actually not small.

Through such mixed equity, the government and the royal family can achieve a win-win situation, and each can control its own oil company to avoid conflicts between the royal family and the government due to funding issues.

Although Arthur can guarantee that during his term of office, the cabinet government will be absolutely loyal and obedient.

But I can't stay on the throne forever, the throne must be passed down. Avoiding some problems early can also make the future monarch and government get along more harmoniously.

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