[Chapter 754: The Chump]
The formation of the European Union certainly involved more than just currency issues. From an economic standpoint, they had indeed formed a cohesive unit.
"Sir, the production capacity in the desert regions is recovering really quickly. By late next year, they will likely reach pre-war levels again."
"Damn, where's Saddam getting the money to ramp up production? Wait, aren't sanctions still in place? Right, isn't Gaddafi's oil unsellable?"
Filson shared the sentiment; the desert tycoons had low extraction costs. They were managing it all for two or three bucks a barrel, while here it cost nearly ten. With the investments in environmental protection factored in, it hadn't turned out to be a profitable venture at all.
"Sir, those desert tycoons are short on cash right now. The primary issue is that their economy is in a slump, so their demand is dropping. Plus, several major oil fields have been discovered in Asia recently."
"Tsk tsk, it looks like we've been taken advantage of. Sigh, it can't be helped. By the way, let's drop that new energy vehicle project in Washington."
"Alright, we only have this option now. The major car companies in Europe are also not being proactive. It seems like only the Japan is responding."
Oil prices had hovered below twenty bucks, which wasn't really normal. For non-renewable resources, not maintaining a price above thirty dollars felt rather embarrassing.
Some might argue that it was a scheme by the Americans. They were beating up on Saddam just to get cheap oil.
Well, to clarify, there really isn't much correlation there. Your oil is priced in U.S. dollars; why would they find it necessary to attack you?
Of course, it was true that developed economies didn't want oil prices to be too high. United States and Europe had both implemented policies aimed at reducing oil consumption.
The logic of the Japanese was easy to understand. They didn't have a drop of oil themselves. If oil prices spiked too high, they would be left with no good options other than going bankrupt.
"Filson, I'm afraid this situation will last a while. That Rockefeller fellow won't be having an easy time either."
"Yes, their losses are more severe than ours. OPEC is currently ineffective. If they could clearly agree on production cuts, prices above twenty dollars could be managed by industrial countries."
The energy tax imposed by Europe was already three dollars. I heard Taiwan was planning to introduce similar policies.
"Sigh, if I could just pocket those three dollars, we wouldn't be losing money anymore. Let's cut production and keep things running normally."
"Sir, if we do that, the losses will increase."
"Ha, how much could that really add up to? If it gets too bad, we'll just have to lay off some people. All this oil is mine, and it's buried underground and won't fly away. I just don't believe that the oil will be exhausted one day."
William White knew very well that they hadn't even hit the worst of times yet. In early '99, prices had even dropped below ten dollars.
Of course, that was just digging a pit for the European Union. What could they achieve by banding together if a single oil price could bring them down?
No matter how you looked at it, delving into the oil industry was not the right timing. Many folks were pleased to see the rich man stumble.
Except for Rockefeller, of course; that guy was probably feeling both pain and joy. If William White lost a hundred million, he would at least lose three to five hundred million. And that Rockefeller Center? It was still in the hands of the folks from Japan.
While it was amusing to see others fail, turning around and then calculating the wealthy man's assets made him think, "Damn it, don't stop me; I need a moment in the bathroom to cry."
The so-called failures didn't bother him at all. On the contrary, the rich man was in a good mood; he hadn't had enough of that giant oil pie.
What did these losses mean now? Take a look again in 2000. Forget about prices soaring above a hundred bucks; even at fifty or sixty bucks, that would be quite devastating.
The key point? That William White had cash on hand, but it was wasted. Over the years, whenever someone mentioned which family was the most powerful in America, aside from Rockefeller, could you name another?
What? The Morgan family?
Cough, while they were pretty powerful too, they really couldn't compete. The scariest thing was that Morgan was still strutting around in the limelight, while the Rockefeller family had quietly faded into obscurity.
As for that rich man's hat, it was quite ironic. Don't be fooled by Forbes strutting about; the next time they produce a family wealth ranking, let's see if anyone takes you down a peg.
Of course, what William White planned to do was actually quite similar. The wealth in the family fund should definitely consist of resources like these.
...
"Cut production?"
"Yes, sir, layoffs could be the next step."
"Ha, this guy's method of operation is truly erratic. Wasn't it said that Rockefeller had a keen interest in his petrochemical plant in the U.S.?"
White Oil was no small fry in America either. While they couldn't hold a candle to Rockefeller or BP, they wouldn't be overlooked either. Old Morgan was scratching his head now. There weren't any favorable news supporting oil price increases, and cutting production now would only deepen their losses.
"Cough, they pulled out before negotiations even took place. The White family fund plans to acquire Rockefeller Center, and there are rumors that Mr. White plans to rebuild it."
"Hahaha, Andy, that news should be fake. Mitsubishi holds only 97% of the shares, right?"
"No, Mr. Richest Man said the air in New York is poor, and the gas quality is basically comparable to that of Africa. There should be more greenery. Those old, rundown buildings are just an eyesore."
"Hahaha, what is this? I'm really impressed -- it's the young rich acting recklessly. That old guy has lost his mind, doesn't he understand the rule about not underestimating the young and poor? The reputation of the Rockefeller family is just not buying it anymore; what can you do?"
Morgan and Rockefeller had a typical working relationship; generally, such a large beast wanted to avoid conflict.
The old guy could have his complaints, but his subordinates didn't entirely agree with him. What's that saying? If William White was considered poor, folks like me might as well throw in the towel.
...
Alright, the old guy wasn't seriously attempting an acquisition, and neither was William White.
What Rockefeller meant was that the oil industry wasn't an easy field to navigate. You need to understand respect for your predecessors.
William White's response was that if you can't even maintain your family's industry, do you think I wouldn't dismantle Rockefeller? You've been scheming against Japan; you've got your tricks down. But here, it's not going to be that cheap.
Fine, William White's sharp tongue wasn't just for show. They say not to strike the face, but his strategy was all about hitting where it stung.
William White was well aware that the old guy had been waiting for the right moment. It was no issue handing Rockefeller Center over to the Japanese. But if it fell into William White's hands, while it wouldn't be demolished, it wouldn't end well either.
As for the gas issue mentioned, cough, he intended to take Rockefeller down with him.
Well, William White was indeed young. He frequently employed this self-destructive strategy.
Privately discussing the matter, no one took it seriously. If Rockefeller didn't get it, he could count on me to kick off a media blitz. Don't you worry; there would certainly be a whole brigade of environmentalists right behind me.
Truth be told, where do so many environmentalists come from in this world?
Without back-end capital operations, who would care about a bunch of fools ranting and raving?
In America, without capital support, no group could survive. Yelling back and forth only resulted in becoming someone's pawn. If you genuinely cared about the environment, you ought to head for the wilderness, and the best way would be to live off the land. Because, regardless of how you prepared your food, there was no truly eco-friendly method.
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