In 1926, it was really difficult to form an organization like OPEC.
OPEC in another time and space was already in 1960. The background was that the famous seven oil sisters monopolized most of the world's oil resources, and the interests of oil-producing countries were seriously damaged. In order to break this monopoly, the OPEC was established
OPEC.
When OPEC was established, it received almost no attention from the Seven Petroleum Sisters because no one was optimistic about this model and everyone believed that this attempt would ultimately fail.
It is true that OPEC did not play a big role in the first ten years after its establishment. However, in the 1970s, OPEC's role gradually became apparent and it played an increasingly important role in the competition between Western oil monopoly capital.
Little John's purpose is simple. Since the combination of Standard Oil and Adam Company can control more than 80% of the world's oil production, why not set up an international oil cartel to monopolize the global oil market?
This ambition is too great and exceeds the scope of Alvin's authorization. In the end, Rock still needs to make a decision.
"Why a cartel, not a trust?" Rock had a big appetite. Little John's proposal was to protect the American market with the help of the cartel's organizational structure.
Rock dared to take risks. Since it was a union, it would be more thorough. The establishment of a trust was more in line with Rock's requirements.
"Compared with trusts, the cartel is definitely more in line with Standard Oil's interests -" Gaude was more cautious and not as radical as Roark.
To put it figuratively speaking, trusts are the Rockefellers before they were forced to break up, and cartels are organizations like OPEC.
The key is the right to operate the enterprise. All business within the trust, such as production, sales and profit distribution, are all handled by the trust's leadership body, the board of directors and its affiliated institutions. The board of directors is controlled by the capitalists of some larger companies.
After joining a trust, the owners of independent enterprises or joint-stock companies lose their original independent status and become shareholders of the trust. They receive dividends based on the shares they hold. Participants can only obtain control of the trust through stocks.
, and can only exit the trust by selling shares.
Cartels are relatively independent. This is a collusive behavior that turns a competitive market into a monopoly market. Through a series of agreements, the output of the entire cartel, product prices, designated sales and sales areas of each enterprise, etc. are determined.
It is obvious from this that although the oil production in the United States is high, the oil reserves are obviously dwarfed by the reserves of the oil fields controlled by Adan Company. Therefore, if a trust is established, Adan Company will inevitably be in a dominant position. This pair
Standard Oil was very negative.
It would be much better if a cartel was established. Then Standard Oil could generously give up the European market and let a group of British Petroleum companies compete, and Standard Oil could monopolize the US market. This would be in the best interests of Standard Oil.
"Then set up a trust. Anyway, we can't let the Americans get what they want." Roque is welcome. What the Americans want is what Roque opposes.
The information was sent back to Los Angeles, and Little John was extremely confused.
By establishing a trust, Standard Oil will lose its dominance over the company. Although it can gain profits, at the level of Standard Oil, profits are not what companies value, but the market.
It is even more dangerous to break up. Before the discovery of the oil fields in the Sultanate of Najd, Adan Company was aggressive and attacked the market with low prices and better products. Standard Oil was already losing ground and was in a state of embarrassment.
If you add the oil fields of the Sultanate of Najd, this will bring disaster to other oil companies.
Otherwise there would not have been this meeting.
The next morning, Little John convened representatives from other oil companies except Southern African Oil Company in the conference room of the Rhodesia Hotel to discuss response matters.
William Jr. and Mellon Jr., as well as Thompson and Richard Bloom arrived as scheduled, but the general manager of the Texas Company was nowhere to be seen.
Little John didn't take it to heart. It would be fine if there was one less Texas company, and it would not affect the overall situation.
"If a trust is established, it is not impossible, but it must meet our requirements -" William is still obsessed with Khuzestan. If Adan Company is willing to return the Abadan refinery to Persian Petroleum, then Persian Petroleum will agree to join the trust.
.
Standard Oil's situation is not good, and Persian Oil is on the verge of collapse and can only struggle to support itself.
Therefore, the establishment of a trust is a good thing for Persian Petroleum. Using a company on the verge of bankruptcy in exchange for a fixed and high income, William can accept this result.
Little John could only look up to the sky and sigh. Sure enough, not all rich second generations can take over smoothly. Compared with Little William, Little John would rather deal with Alvin.
Alvin's arrogance is a little too arrogant, but he still has a bottom line in doing things. Unlike William, who doesn't feel bad about betraying his father's land.
"No, no, no, now is not the best time to join forces. We still need some time." Richard Bloom disagreed. Even if a trust is established, it will have to wait until Venezuela's oil fields are officially put into production.
It will be at least a year or two before Venezuela's oil fields are officially put into production. Now Anglo-American Petroleum has no profit on its books, and the prospects of the oil fields are not clear enough. If a trust is established, the interests of Anglo-American Petroleum cannot be guaranteed.
"Gulf Oil can only accept the form of a cartel." Thomas Mellon Jr. had a firm attitude. After the establishment of the trust, it was hard to say who would get control of the board of directors between Addan and Standard Oil. Anyway, it would not be Gulf's turn.
Oil companies.
Compared with Standard Oil, Gulf Oil Company still has confidence. After all, the current US Treasury Secretary is Mellon. With this advantage, even if it does not participate in any organization, it will not have much impact on Gulf Oil Company's interests.
"Then what are we talking about? Let's compete based on our abilities!" Royal Shell is confident. The oil fields in the Aden Protectorate now look pretty good.
Unfortunately, this confidence will not last long. The oil reserves in the Aden Protectorate are not large, and they will be completely hollowed out in a few years. It will be up to you what Royal Shell will do.
To be honest, this scattered situation where everyone has their own agenda makes Little John very desperate.
But it won't work if we don't talk. If we can't reach an agreement, then sooner or later the British and American oil companies will be defeated by Adam.
Little John is not someone to be trifled with. Adan Company wants to swallow up Standard Oil with the help of trusts, and Little John is not helpless.
"Gentlemen, if we cannot reach an agreement, then Standard Oil will also lower the price to five shillings a barrel." Little John was about to explode. Five shillings a barrel had already broken the cost of Standard Oil.
"Are you crazy?" Richard Bloom screamed. Although Venezuela's oil fields have not yet been put into production, the cost must be more than five shillings a barrel. British and American oil originally expected Venezuela's oil fields to recover. If the price of Standard Oil also dropped,
, then Anglo-American Oil will lose all its money.
"Haha, do you think you can defeat Adan Company in this way? What if Adan Company continues to cut prices?" Little William sneered. Although Persian Petroleum's life was not easy, little William was actually happy to see American companies being unlucky——
In this case, it would be a fool's errand to work together!
"No, no, no, you are all wrong. Standard Oil has never used Adan as a competitor -" Little John also sneered, what should I do if I encounter a bear in the forest?
You don't have to run faster than a bear, you just need to run faster than your companions.
To put it bluntly, the oil market is big enough, and Adan Company will definitely not be able to swallow it all. With its strong capital accumulation, Standard Oil does not need to completely defeat Adan Company, but only needs to eliminate those weak competitors one by one.
Standard Oil can still survive.
After thinking about this, little William and Richard Bloom looked at each other and couldn't laugh anymore.
Thomas Mellon looked on with cold eyes. Although Gulf Oil Company was not as big as Standard Oil and Adam Company, it would certainly not be the first to be eliminated.
"So what do you think?" Little John looked fierce.
"What do you want to do?" Little William frowned and had to lower his head under the eaves.
"If we don't unite, then sooner or later we will be defeated by Adan Company, so we must join hands to fight against Adan Company and gain the dominance of the board of directors." Little John wants to fight with his back against the wall. If the seven oil sisters unite, it's really hard to decide who will win.
Easy to say.
Now it was Little William's turn to struggle with Thompson and Richard Bloom.
If I don’t agree with Little John’s suggestion, these three companies will definitely be eliminated first. After all, American oil companies can still survive with the help of the US government.
Adan Company is a Commonwealth enterprise, and the royal family has shares in it. These three companies will face direct competition from Adan Company.
Agree is even more troublesome. As a British company, instead of joining forces with Commonwealth companies, it instead unites with American companies to deal with Commonwealth companies. This is really cheating. If word spreads, it will be criticized by thousands of people.
At this time, Mellon's assistant came in and whispered a few words into Mellon's ear.
Little Mellon had no expression on his face. After his assistant left, he tapped the table: "Gentlemen, a super oil field has been discovered in the Gulf of Mexico. I think you should be more interested in this news——"
Thompson stood up and left without saying a word.
Royal Shell is seeking to acquire Mexican Eagle, Mexico's largest oil company. Mexico currently ranks third in oil production in the world, behind southern Africa and the United States.
Richard Bloom stood up and said sorry, and then left in a hurry. In the Gulf of Mexico, there was hope for British and American oil. If you start early, you will be more sure.
Little William looked up to the sky and sighed, the Gulf of Mexico is too far away from Persia, and there is no way to get Persian oil.
Little John's face was livid. Is this all about paying back the trust?
