When John Bryan heard the conditions proposed by Lu Ming, he couldn't help but feel a flash of surprise. If the premium reaches 50 US dollars per barrel, then North American shale oil and gas companies can survive if they can get the Tiansheng Capital purchase contract.
According to Moody's statistics, oil and gas companies in North America will face US$200 billion in maturing debt in the next four years, of which US$40 billion will mature this year alone.
Currently, affected by the impact of low oil prices, the stock prices of North American energy companies have fallen sharply. It is difficult for North American shale oil and gas companies that are already highly indebted to raise funds through borrowing to continue their lives.
The current low oil prices not only make shale oil drilling in North America unprofitable, but also lead to the embarrassing dilemma of "loss on production". No one can bear the price of losing one barrel for every barrel extracted.
Oil and gas companies have reduced capital expenditures and production activities to reduce losses.
Just today, North American oil and gas giant ExxonMobil announced that it will cut its capital expenditure and cash expenditure operating expenses by 30% and 15% respectively this year to cope with the imbalance between oil supply and demand and the decline in commodity prices.
Due to the surge in shale oil production in the United States, it has gradually become the world's major crude oil producer and exporter in recent years. Low oil prices have caused a severe setback to the North American shale oil industry with high production costs. If oil prices remain at current or lower levels for a long time,
, the wave of layoffs and bankruptcies is inevitable, and will further trigger more chain reactions.
Lu Ming set a price of US$50/barrel for the purchase of North American shale oil. In addition to the money being cut from the American family, it is mainly because of the purchase at this price that North American shale oil and gas companies can increase their capital this year.
A spending budget provides funds and pays down debt.
If crude oil prices remain at their current levels by the end of this year, the North American oil industry may lose US$380 to US$400 billion in cash flow, which is an astronomical sum.
However, the price can reach a premium of US$50/barrel. This is a long-term agreement and the price must be fixed and not linked to the rise and fall of the international crude oil futures market.
If we don’t weld prices to a halt, we will certainly raise prices when the shale oil and gas industry in the United States and the United States recovers, but then we will be shooting ourselves in the foot.
This is definitely what the American's urinary nature is like.
And even if there is an agreement, the "spirit of abandoning the agreement" between the United States and the United States is still unreliable. However, Lu Ming is not afraid. As long as the agreement is signed, he will not panic.
Because as long as a final consensus is reached in this game, North American capital institutions will also entrust a lot of funds to Tiansheng Capital Management. Not to mention other funds that are currently frozen will definitely return to Tiansheng Capital for custody.
By then, if the United States and the United States dare to renege on the agreement, they can just fill the gap from here. There are many ways.
Purchased at a price of 50 US dollars, it is not cheap but not expensive either. It is acceptable to import it for your own use. If oil prices are high in the future, you can make a lot of money by selling it if it is expensive. This is the same as the long-term natural gas contract agreement signed with Lao America.
A logic.
After all, Lu Ming knew that in a year or two, Mao Xiong would overturn the table first, causing global energy prices to skyrocket, natural gas prices to skyrocket, and oil prices to skyrocket to over 100 US dollars.
Therefore, taking advantage of this rare window of time, all kinds of fierce signings of wholesale prices are used to fix the prices. From now on, the initiative will be in your own hands.
In fact, from the perspective of his own interests, Lu Ming does not hope to see the shale oil and gas companies in the United States completely burp, because the shale oil in North America is dead, and in the future, it may be dominated by Russia and Russia in the international energy market.
OPEC+ figured it out.
You know, the oil price plummeted in 2016, and this time, it is very painful for both big dogs and furry bears. After one or two waves of heavy bleeding, they will definitely find ways to raise prices to recover in the future.
High oil prices are certainly not a good thing for the country.
Therefore, Lu Ming certainly hopes that the shale oil industry in the United States will not die. There are more sellers, so as a buyer, it is easier to negotiate and bargain. The probability of being manipulated by others is definitely greater if there is no other branch, and you have to be much more passive.
These days, only benefits are eternal.
But generally speaking, the game in the field of crude oil is not a long-term solution after all. It is more about ensuring energy security in the short term. For the country, investment in new clean energy is the key to sustainable development of harmonious coexistence of man and nature.
road.
The current national strategy is to ensure current energy security, mainly to promote the development of new energy. Now the country strongly supports this direction, and further efforts are being made to develop a series of renewable and clean energy such as wind energy, solar energy, water energy, etc.
.
Lu Ming directly expressed to John Bryan that Tiansheng Capital was willing to make great efforts to support oil prices and help North American shale oil and gas companies tide over the difficulties. There is also a hidden meaning in this, which is that you cannot use all kinds of stumbling blocks.
Stop me from buying and buying around the world, or I won’t help you raise gas prices.
This is also paving the way for the previously established strategy of "buying globally, buying globally". These actually involve competing with the United States. After all, it's a bit uncomfortable for them to stumble you. From time to time, you can come over and give yourself a break.
It's annoying even if you can deal with it and solve it.
When John Bryan heard that Lu Ming was willing to offer a price of US$50 per barrel, he felt that he was quite sincere. As long as the North American shale oil and gas company could get the purchase order from Tiansheng Capital, he would be relieved immediately.
But at the same time, I saw that Lu Ming asked for a long-term order agreement to seal the price, and I also knew that the other party was shrewd and had already begun to predict the price increase after the situation slowed down.
Taken together, it is indeed very sincere. Tiansheng Capital is willing to come out to support oil prices, support the stock market, and purchase U.S. debt. These are all problems that America needs to solve at present.
And they are all urgent.
John Bryan also admitted in his heart that all of what Lu Ming said hit the current weakness of North America, and he also knew that it was the other side's conspiracy.
But to take a step back, even if the wealth harvested by Tiansheng Capital does not come back, there is nothing that can be done. The Federal Reserve can print more money. As long as it prints enough, it can dilute the purchasing power of the money in the other party's hands.
Although crazy money printing also has huge disadvantages, it can't be done as fast as it would save effort.
At the end, John Bryan immediately looked at Lu Ming and said: "Mr. Lu, you have decided to take back the refined oil linkage mechanism..."
Lu Ming interrupted him directly and said: "I'm sorry that this matter is not something I can decide. I'm sorry that I can't give you a precise and satisfactory answer."
Seeing his attitude of having nothing to say, John Bryan was wise enough to say nothing more.
In fact, Lu Ming knows that the current refined oil pricing mechanism is difficult to change in the short term, but this is a core bargaining chip in negotiations with the United States. At this time, we must not easily reveal all our trump cards. If there is no card left to play,
Embarrassed.
The two sides talked for another six or seven minutes. This time the meeting ended. John Bryan immediately left. After leaving Tiansheng Capital headquarters, he flew directly to North America to report the situation. As for Ningzhou City, he was
