Chapter 816： oil competition

"Mr. President, the results of our investigation have come out. Due to the geological structure of our important Monterey shale oil production area, the estimated recoverable reserves originally expected to be greatly reduced. Now, we predict that there are only 600 million barrels. shale oil that can be extracted from there,” Secretary of Energy James, said to President Reagan with a look of disappointment on his face.

The shale oil base in Monterey is the main shale oil production base in the United States, but now, the expected recoverable reserves have been cut off by more than 90%! Originally, relying on this oil base, the United States planned to create 2.8 million jobs and generate $24.6 billion in taxes every year. This is a major project for America today!

But what about now? A good big oil field, if there is no, there will be no more! Everyone present looked ugly, especially Vice President Bush. After all, the Bush family is the big oil family in Texas, and now, the reserves of shale oil have plummeted, and the family will also lose a lot!

And, if all shale oil bases are like this, is the American shale oil revolution a joke?

"What about our other shale bases? Will the same thing happen?" Reagan asked.

If this is the case, it is conceivable that the US economy will present an avalanche! The short-lived prosperity now maintained by shale oil will all disappear, and the United States will experience a cold winter!

"The Monterey shale oil base is mainly due to the geological structure. There are too many faults below, so although we want to exploit it, we cannot exploit it. Other shale oil bases should not have the same result." James said.

Expectations were too high, and now, based on a reanalysis of wells that have withered, nothing could be worse, even if Monterey's shale oil base is depleted, it won't affect other fields , and, with the advancement of technology, maybe there will be a way to re-exploit the unexploitable shale oil in the future! Just a few years ago, who would have thought that shale oil would be produced on a large scale?

Reagan nodded, this kind of analysis result was acceptable to him.

"Mr. President, it's not good!" At this moment, Baker, the chief of staff of the White House, hurried in. He turned on the TV and tuned to the international channel.

Inside, it just happened to be a replay!

A bearded man with a scarf on his head was talking in Arabic, with subtitles translated into English below.

"After years of war, our economy has been traumatized, and now we have finally restored the country to what it was before the war by working hard to build our own homeland with our hands again. However, some countries are trying to interfere in our internal affairs. It will not change, and at the same time, their conspiracy is doomed to go bankrupt. Originally, OPEC coordinated the crude oil production of various countries and maintained the supply and demand relationship in the world crude oil market, which has reached a balance between supply and demand, but now, new oil Exporting countries joined in and maliciously interfered with our oil exports, resulting in low oil prices. We lowered our own oil production, hoping to maintain normal prices, but the result? Other oil-producing countries increased their oil production and maliciously increased their exports , we have suffered huge losses! Now, in order to safeguard the interests of our oil-producing countries, we have decided to conduct a fair competition to face this deteriorating situation, and we will expand our production to meet the crude oil of various countries. Demand! We have to defeat those malicious oil exporters through legitimate business competition!"

Damn it! Seeing this, Bush on the side suddenly changed his face. What are these Middle East bumpkins thinking?

Needless to say, you can also know that the other party is targeting the United States! Back then, the United States was also one of the world's largest oil importers. Why did the United States deliberately maintain its hegemony in the Middle East? Of course, it is to control oil resources and ensure your own energy security! Under such circumstances, maintaining a low price of oil is most beneficial to the United States. In the 1980s, the Americans used various excuses to make Saudi Arabia and other countries frantically increase oil production. At the same time, Saudi Arabia was also for its own interests. In the end, the price of oil was reduced to about ten dollars a barrel of oil, enjoying low oil prices.

But now, with the large-scale exploitation of shale oil, the United States has changed from an oil importer to an oil exporter! Well, for the United States, it is natural to hope that the higher the world oil price, the better!

The United States is constantly increasing oil production and expanding its oil market share. However, this is not because the United States wants to lower world oil prices. All of this is caused by the continuous reduction of oil production by those oil-producing countries in the Middle East. After the Middle East war began, The oil production in the Middle East countries is less than half of that before the war, and the world crude oil market is in a stage of less than demand. Therefore, oil prices remain high.

Of course, the increased oil production by the United States and the increased oil production by the United Kingdom have indeed seized the share of oil exports from the Middle East, but these are also the result of normal competition.

However, it is the oil minister of Iraq who is speaking now, who is also one of the important representatives of the newly established Organization of the Petroleum Exporting Countries in Moscow. His speech basically represents the statement of all oil-producing countries in the Middle East!

The Middle East will change the previous policy ~ www.novelhall.com ~ with massive oil exports to seize the market! At the same time, a bloodless battle between the world's crude oil exporting countries is just around the corner!

This is an even worse idea! Hearing this news, President Bush, who was already ugly, was even more ugly.

As an oil family, Bush certainly knows the difference between oil in the Middle East and oil in the United States. The Middle East is a high-yield self-spraying crude oil. Drilling an oil well from the ground does not even need an oil pump, and the oil is sprayed by itself, and the extraction cost is less than ten dollars! However, the cost of oil extraction in the United States is definitely more than twenty dollars, while the cost of shale oil is about forty dollars a barrel! The cost of mining oil fields in the North Sea in the United Kingdom is similar.

If oil is produced in large quantities, world crude oil prices will plummet! In this way, the US plan to save the economy by exporting oil will be on the verge of bankruptcy!

All this, of course, is the conspiracy of the Soviets! The production cost of the oil fields under the permafrost of the plateau by the Soviets is also very high. However, the Soviets also controlled a large number of oil fields in the Middle East, such as those in Saudi Arabia. They can still make up for the loss of oil fields in Saudi Arabia, but the United States can't. Where does the United States want to cut wool? (To be continued.)