Chapter 767 Split and Merge

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

In fact, it is inevitable. From the perspective of the Persian Gulf region occupied by the United Kingdom and Australasia, 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 large oil fields in the Persian Gulf, and no country can do anything about it.

Because the oil fields in the Persian Gulf are firmly controlled by two countries, these two countries are currently the world's most powerful country, the United Kingdom, and the world's third most powerful country, Australasia.

With the cooperation of these two countries, the situation in the Persian Gulf region is as unshakable as steel. Even if France unites with other powers, it will never be the opponent 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 they had at their peak.

After discussions between the two parties, the United Kingdom and Australasia decided to jointly establish the Persian Gulf Alliance and use the Persian Gulf Alliance to control oil prices in the world.

The operation method is also very simple. When oil prices are too high, all oil companies owned by the two countries increase production to balance and lower oil prices.

When oil prices are too low, oil companies owned by the two countries reduce production to increase the price of oil.

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

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

Coupled with the relatively large scale of the oil fields, no country can currently compete with the Persian Gulf Alliance united by the two countries.

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

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

Oil will also have certain ups and downs based on transportation costs in various places. It is expected that the final world average oil price may be 8 to 9 Australian dollars, which is almost the current limit of oil.

After all, both Australasia and the UK currently only want to make enough profits from oil.

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

Only when World War II breaks out in the future will countries around the world 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 selling price of about 7 Australian dollars per barrel of oil does not seem very high, the cost of extracting oil fields in the Persian Gulf is indeed very low.

According to the current oil field exploitation situation in Australasia-controlled areas, the cost of extracting crude oil per ton is about A$7.

You know, this is just the cost of extraction per ton of crude oil. One ton of crude oil can hold approximately 33 barrels (specifically determined according to the density of crude oil, that is, the degree of thickness). Each barrel of crude oil is 42 gallons, which is equal to 99 liters.

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

Subtracting the transportation costs of oil, losses during transportation, and the differences in oil prices in various places, the final profit per barrel of crude oil is about A$5 to A$8.

After receiving such data, Arthur had to lament the huge profits brought by the oil trade.

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

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

According to colonial and oil field data held by the British, British oil production reached 49.21 million tons in 1929, 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 oil industries of a certain scale, but their proportions are not very high, and their oil production has not exceeded one million tons.

From this oil production ranking, it seems that oil production in various countries is everywhere.

But anyone who understands the world situation will know that the oil production of some countries seems to be high, but behind the scenes it is controlled by foreign powers.

The oil produced will be sold to foreign powers at low prices, without any benefit 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 exploited by the foreign powers in disguise.

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

In addition, French capital is present in the oil in many areas. This is also the reason 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 unable to compare with Britain. Britain's extensive colonies have numerous oil-producing areas, especially the Persian Gulf, where a large number of oil fields have been discovered.

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

What's more, oil along the Persian Gulf coast would be simpler and cheaper to develop.

U.S. oil production seems huge, but the cost is about half of the selling price of oil, which has greatly reduced oil profits.

Now that cooperation has been reached with the British, Arthur will naturally not hide in the Persian Gulf.

To be honest, if it were not for the worry that the British had ideas about the Persian Gulf, Australasia would have already exploited a large amount 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, the previous major oil exporting country. The Americans' final oil export benefits cannot even reach half, while Australasia's oil export benefits can reach more than 70%.

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

Such a scale is extremely 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 even more powerfully with this money.

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

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

This is not only about the benefits that can be obtained now, 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 Australasian oil companies.

The 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 consolidation.

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

Persian Gulf Oil Company was the most suitable choice. This is not only a joint venture between the royal family and the government, it has also 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 Persian Gulf Oil Company accounts for more than half of Australasia's annual oil production, which is enough to show the market share of the Persian Gulf Oil Company.

After discussing with the government, Arthur merged all the oil companies controlled by the royal family into the Persian Gulf Oil Company, and worked with the government to increase the investment ratio.

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

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

In terms of shareholding ratio, certain changes have also been made.

The first is Persian Gulf Oil Company as the parent company. The Australasian government invested another 30 million Australian dollars, plus the exploration rights of multiple oil fields, accounting for 51% of the shares of the Persian Gulf Oil Company.

The royal consortium invested another 25 million Australian dollars in shares, plus some oil exploration technology, occupying 8% of the shares of the Persian Gulf Oil Company.

The Nobles United Consortium invested 5 million Australian dollars and occupied 2% of the shares of Persian Gulf Oil Company.

The Royal Relief Committee invested 3 million Australian dollars and occupied 2% of the shares of Persian Gulf Oil Company.

The national oil companies under the Persian Gulf Petroleum Company have equity shares of: 50% by the national government, 10% by the royal consortium, and 40% by the Persian Gulf Petroleum Company.

Based on this equity ratio, the national government can occupy 4% of the national oil company's equity and control the sovereignty of the national oil company.

So did another Royal Oil company. The shareholding ratio is: 50% of the royal consortium, 10% of the national government, and 40% of the Persian Gulf Oil Company.

In the end, the royal consortium held 32% of the shares in the Royal Petroleum Company and was also able to occupy the sovereignty of the Royal Petroleum Company.

As for the attached Nobles United Consortium and the Royal Relief Committee, they simply create some income for these two institutions.

After all, the Nobles United Foundation needs to distribute a large amount of funds to all the nobles every year, and the Royal Relief Committee also distributes a large amount of subsidies to the country's poor groups every year, and the expenses are actually quite large.

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

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

But he can't stay on the throne forever. The throne must be passed down. Avoiding some problems early will also allow future monarchs and governments to get along more harmoniously.

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