[Chapter 893: What Good is Pricing Power?]
In his past life and present, William White never subscribed to Zbigniew Brzezinski's theories.
To put it plainly, anyone who came from the Cold War era was bound to have a hint of paranoia. Why did the U.S. get into a spat with China? Didn't they realize that facing off against over a billion people was a losing battle from the start?
Putting aside the interests of arms dealers, there was a cadre of senior strategists, including Brzezinski, who weren't exactly helping matters. Their assessment was that China would continue its upward trajectory. If they couldn't hold China back, Hawaii would become a war zone.
It was almost laughable how, years later, some senior official in Washington genuinely believed the nonsense these strategists were peddling. After a while, the U.S. was shocked to discover that the Russians were one thing and the Chinese were another, entirely unrelated matter.
Unfortunately, they figured this out too late, having spent years mired in an unintelligible conflict. You might argue they lost, but the reality was much messier. People like Brzezinski were a dime a dozen in Washington; William White had no interest in them. Sure, the world had its dark corners, but it wasn't nearly as terrifying as they imagined.
"Paul, it seems the strategy of deliberately suppressing oil prices has failed," Alan lamented.
"What's going on, Allen? What happened?"
"White Oil just acquired two small oil companies. You know how tough times are for those offshore drilling platforms. While prices are still decent, it prevents them from losing everything. Ironically, they're even looking at White Oil's refinery in China."
The two top dogs at the Fed were clearly frustrated; the situation had become very clear. If they continued to play around, there was a strong chance they'd feel a bite from William White.
"So, you're saying that William White also has his sights set on Exxon?" Paul asked.
"Not quite; it's more of a threat. Well, yes, he does have the resources to swallow it whole. If privatization becomes a reality, that old timer might just explode."
After discussing for a while, they couldn't come up with a solution. When White Oil made its acquisitions, Mobil and Shell tried to throw roadblocks. Now, the tables had turned, and it was White Oil that was stirring the pot.
"You guys want to suppress oil prices? Sure, but if they drop too low, I'll just cut production. If it plummets further, I can just build storage facilities. And if all else fails, isn't there still the futures market to hedge against?"
The same applied to oil as it did to gold. White Bank's European branch housed over three hundred tons of the precious metal.
"Cough, cough, Paul, this is basically a problem without a solution. Did you know he plans to build a large crude oil storage facility in China?"
"Damn, how dare he?"
"What's there to be afraid of? I heard it's a joint venture with a major firm in China. Just look at those iron ore deals; nearly half the steel mills in China are getting materials from him."
At this point, it wasn't even necessary to continue the conversation. Did they really think that William White was a solitary figure? In fact, his influence in the U.S. might be strong, but it was more or less even in Europe. In Asia, William White had the upper hand across the board.
As for Africa?
Now, that was a territory best left alone.
When it came to oil pricing power, it all depended on how one phrased it. The rich oil magnates in the desert had already grown displeased with the current prices. If the U.S. continued to squeeze, who knew how things would unfold?
"A ceasefire? Sure, just give me back those Gulf leases. Don't think you can keep pushing us around. I'll buy it back at the original price, no markup accepted."
"Ha, George, tell those idiots that to swallow Exxon, they'll have to deal with this cost first."
"What?! Standard Oil is considering a revival?"
"What do you think? Everyone has their pride; there's no need to get worked up over small issues. Just think about it!"
"I'm not getting involved; this is too massive for me. But if you do acquire Exxon, you'd be the largest energy company in the world."
"Sigh, I wish, but I'd like to stick around for a few more years."
"Damn it, you mean to tell me that these current oil prices are also being deliberately suppressed?"
William White sighed; the man's thought process was indeed a bit off. No wonder he couldn't hold that position effectively.
"George, don't you know basic arithmetic? Those idiot wells have been exhausted; Kuwait's wells have been set ablaze. Most of those oil tycoons in the desert are buried under massive debts.
Tell me, do you think they want to wage a price war?"
"Okay, now I see. Damn, my family has taken a big hit."
"Nonsense; your father must know. Just ask him when you get home."
William White wasn't joking; this situation arose during his father's presidency. If they didn't know this much, what were they doing in office? He had no ambitions concerning Exxon or Mobil. This was a tangled web of corporate interests that wouldn't be easily unraveled. Yet, who wanted to take a risk, right?
"Hey kid, do you remember that Moussa Koussa?"
"Yeah, what? Did he go to Africa to deliver diamonds again?"
"No, this guy has better diplomatic skills. Given the current climate, it seems like those sanctions might get loosened."
"Well, yeah, if it's about oil at home, it's clearly more reliable than anything from desert tycoons.
Tanner, we're getting similar prices from Rio Tinto and Vale, so why is China buying from all three? This is about balance; they'll maintain this approach to prevent it from being a seller's market."
"Kid, do you really not need to throw a wrench in the works?"
"No need; I'm guessing the folks in Washington are looking for a way out, too. Some matters should just reach a natural conclusion. But we still need to keep an eye on this situation."
Any small-scale maneuvers in U.S. oil wouldn't remain unnoticed by European allies.
Right now, they were attempting to consolidate resources.
Then what?
It merely meant raising prices.
Oil is the lifeblood of industry; there's no overstating its importance. What perplexed European allies was how minimal Europe's oil output truly was. Well, that wasn't entirely accurate. The North Caucasus region was crucial to oil production, having high-quality oil and rich natural gas resources.
Unfortunately, this area belonged to Russia, and they were currently in conflict. Even if there were clear winners and losers, who knew what the future held. With interwoven issues surrounding race, religion, and the meddling of the CIA, peace seemed impossible. This place was destined to be a hotbed of unrest.
William White closed his eyes and thought for a moment. How could anyone fathom ISIS, Somali pirates, and the North Caucasus all at once? No wonder the U.S. attracted so much disdain; these chaotic issues were largely products of its own doing. Much of it was orchestrated by the CIA.
Couldn't they just take a break for a few years?
There were simply too many troubles in this world; they could just leave things be.
After Tanner had reported, William White lost all interest in replying to emails. For this black gold, everyone was in chaos.
True, he felt a flicker of regret; was it truly worth involving himself? Yet the question remained--if he didn't engage, how could he maintain his position of power? Once money reached a certain volume, having more became meaningless. Finding oneself in the role of a financial slave was indeed humiliating.
"Hah, son, he sees things more clearly than you do. But how could Exxon and Mobil merge?"
"Dad, it's impossible during a golden age, but if oil prices keep plummeting, it might just be feasible." Little Bush didn't share his father's skepticism; those who had once separated were now eyeing reconsolidation.
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