"Mr. Moritz, there is a matter I must bring to your attention. The vast reserves of crude oil we have are not solely for our consumption; a significant portion must be allocated for governmental reserves," Qin Tian stated with a serious expression.
"Government reserves?" Moritz replied, somewhat perplexed. Given that Germany's current oil consumption was relatively low, there seemed little need for such extensive reserves. After all, the construction of storage facilities and the purchase of crude oil entail considerable expenses.
"Mr. Moritz, what I am about to disclose pertains to military secrets of the Empire, so I ask that you maintain absolute confidentiality and refrain from disclosing even a word," Qin Tian insisted earnestly.
"Your Highness, I swear by the Almighty that I shall keep this secret!" Moritz responded with equal gravity.
"Currently, the Imperial Navy is constructing capital ships and various subsequent vessels that utilize fuel oil boilers. Consequently, the Navy's oil consumption will experience explosive growth. However, the Empire is severely deficient in oil resources, and we must secure sufficient reserves before war breaks out. Otherwise, if conflict ensues and our maritime trade routes are severed, leaving us unable to import oil, the consequences will be dire. The capital ships we have invested heavily in will become mere rusting hulks in port. Therefore, we must strive to store ample oil before hostilities commence," Qin Tian proclaimed with solemnity.
Moritz was taken aback by this revelation, clearly unprepared for the rationale behind Qin Tian's call for increased reserves. He recognized the sensitivity of the information shared and felt deeply honored by Qin Tian's trust, especially given his recent addition to the team.
Qin Tian's decision to confide in Moritz stemmed not only from trust but also from thorough investigations into his character.
"Rest assured, Your Highness; I will guard this secret jealously," Moritz affirmed. As a German, he naturally wished for the nation's victory in the forthcoming conflict. With the disclosure of such military secrets, he felt a profound obligation to keep them confidential.
Qin Tian nodded. "While the Navy and the government will covertly stockpile oil, to prevent potential shortages in the event of war, we must also secure our own reserves. Two million tons of crude oil is merely a baseline; if feasible, we should aim to store more."
"Understood, Your Highness," Moritz acknowledged. Despite the significant cost of storing large quantities of oil, Qin Tian's financial resources were ample, as the German Lottery Company was generating substantial profits, enabling expansion across various domains.
Moreover, oil prices were currently exceptionally low—less than a dollar per barrel, with transportation costs barely reaching a dollar. The exchange rate between the Mark and the dollar was 4:1, meaning a barrel of oil was merely worth 4 Marks, and the total cost of one ton of oil, including additional fees, was only about 30 Marks. To secure two million tons of oil, Qin Tian would need just 60 million Marks.
"Mr. Moritz, our company must also acquire the capability to extract oil. Please arrange for technological preparations and the recruitment of relevant personnel," Qin Tian instructed.
"Certainly, Your Highness."
Germany's domestic oil resources were severely lacking. Although the northern coastal shallows held some reserves, current technology made extraction challenging. Moreover, the limited quantities available would not withstand significant consumption, making it preferable to leave them underground.
"Your Highness, should we consider engaging in overseas oil field extraction?" Moritz inquired, aware of Germany's scarcity of domestic oil. Qin Tian's insistence on developing extraction capabilities implied a focus on foreign resources.
The leading oil-producing nation was the United States, accounting for 60% of global extraction. The Dutch East Indies, along with Russia's Baku and Romania, also produced oil. In the Middle East, the future epicenter of oil production, British exploration was limited to Iran, with any productive wells still a year away.
"While overseas oil fields are predominantly controlled by the English, French, and Americans, we should not assume we have no opportunities. We must be prepared, so when chances arise, we can act swiftly," Qin Tian acknowledged the distribution of future oil resources, understanding the limitations of Germany's overseas presence compared to Britain. If the British were to learn of these aspirations, they would preclude German access to those fields. Only after defeating Britain and establishing naval supremacy could Germany secure those resources.
"Indeed, Your Highness," Moritz agreed, recognizing the prudence in Qin Tian's strategy.
After Moritz departed, Qin Tian's gaze fell upon the map hanging on the wall. To him, many regions appeared as treasure troves of resources. Notably, the Middle East held enough reserves to sustain Germany for over a century. If Germany could triumph over Britain in the impending world conflict and seize control of the Middle East, energy scarcity would no longer be a concern.
Of course, acquiring Middle Eastern oil depended entirely on defeating the British in this war; otherwise, such ambitions would remain mere fantasies.
"The oil in the Middle East cannot be disturbed until after the war. We must devise alternative strategies," Qin Tian mused.
"Libya's oil resources are also abundant, and currently, few are aware of their existence. Should we manage to seize Libya's oil reserves, it would significantly bolster our stockpile," he contemplated.
Libya was under the control of the Ottoman Empire, yet Italy had long coveted the territory. Qin Tian recognized that the Italians would soon take action. Although the Italian military was notably inept, the decaying Ottoman forces were scarcely better. If Italy were to win the conflict and acquire the land, Germany could potentially secure exploration and extraction rights as an allied supporter, making the post-war acquisition less formidable.