America: My Time

Chapter 439 Permian Production Ceasefire

Chapter 439 Permian Production Ceasefire
“Alright, since you insist, I have no choice but to cooperate. I believe Hughes will not disappoint you!” John shook his head slightly as he spoke. This was exactly what he had expected. Such a change was also anticipated. After all, the other party was rich and powerful. These nouveau riche did not care about money at all, only whether their plan could succeed.

The Japanese didn't seem to care about the change; they didn't try to stop it, and everything ended smoothly. Only after the Japanese left did John sit down again with the Middle Eastern tycoon. They wanted to discuss oil supply; with the continued expansion of energy resources in the West, more oil was needed.

John originally wanted to participate in the development of the North Sea oil fields, but was rejected by the British. This forced John to increase his demand for crude oil from Middle Eastern oil tycoons, and there was also a large demand for crude oil in Asia. John felt he needed to negotiate with these wealthy nations, since they controlled the world's economic lifeline. In today's crude oil market, these countries held an absolute advantage!

“Mr. John, we will make arrangements to meet your requirements and will absolutely not allow your refineries to run out of oil to refine. But do you really have such high hopes for the environment in Asia with all this expansion?”

"This is not a decision I make, but a decision made by the market. Do you think I have a chance in Europe and America? At the current price of crude oil, I would have to give up mining in the Permian Basin because it would be a losing proposition. In comparison, getting crude oil from you is more suitable for the development needs of western energy."

With the current drop in crude oil prices, John has decided to halt production at the Permian Basin. Although this will result in significant losses for him, it is necessary. Crude oil prices are unlikely to rise for a long time, and cutting losses in this situation is the best option.

The shutdown of Permian Basin had a huge impact on the entire US oil industry. If it weren't for the fact that everyone knew Western Energy was now focused on the development and utilization of natural gas, everyone would have thought that Western Energy might abandon the US market. This decision shocked the White House, and everyone was amazed by John's boldness.

It's important to understand that John was solely responsible for the loan burden in the Permian Basin. Making such a decision at this time made many people uneasy, as it would lead to many job losses. However, John still did it. Given that the Permian Basin was a relatively unprofitable area, halting production was a normal course of action. Moreover, with the entire Permian Basin now under John's control, a temporary halt in production was worthwhile, as there was no need to worry about other companies taking the crude oil from his area.

"What impressive tactics, what unwavering determination! To halt Permian oil production at this crucial moment and shoulder such a massive debt alone—how will he repay it? What's the situation in Japan?"

"Japan hasn't said anything. They don't care about the Permian Basin oil production shutdown. They're not worried about John being unable to repay the loan. Right now, that little fox is making even more amazing profits by going long on the yen. The yen is constantly rising, and he has enough funds to repay the loan to Japan. There's another thing we need to be wary of: the price of gold hasn't been affected by the emergence of one mine after another. I think this is a bit abnormal. Quantum Mining's gold may not have flowed into the market, but has been absorbed internally by them."

"Jimmy, do you think those guys in the Middle East will agree to this little fox's demands and increase their crude oil supply to him? It's a bit surprising that they're starting to stockpile crude oil at this time!"

"I don't know. I don't know if the Middle Eastern tycoons will agree to his request. Currently, whether in China or other countries, his refineries are stockpiling crude oil to obtain a continuous supply of crude oil reserves from the Middle Eastern tycoons. If the Middle East agrees, it may cause fluctuations in crude oil prices!"

"No, this kid is preparing a backup plan. The situation in the Middle East is becoming increasingly chaotic, and he is worried that there will be more problems, so it is reasonable for him to intentionally stockpile crude oil in advance. What I don't understand is that his reserves are long-term. It's a bit unbelievable. Building so many crude oil reserve facilities requires a lot of money. He is going to invest all the profits generated from oil refining into them!"

"Many people are eyeing Quantum Mining right now and don't see Western Energy as a threat. The only one who feels the biggest threat is Rockefeller. They have been probing Western Energy's strengths and weaknesses and have been obstructing Western Energy's vigorous development of gas-fired power. They are worried that this little guy John will use gas-fired power to take over the petrochemical industry!"

"Let them be. We've said what we needed to say. If they don't want to accept it, there's nothing we can do. They are the petrochemical giants; it would be incredibly easy for them to cause trouble for John. Fortunately, John is rational and hasn't clashed with them, only competing in the Gulf of Mexico. If they had clashed again, the trouble would have been much bigger. The White House doesn't want to see any of this happen. The Permian Basin shutdown has had a huge impact, giving many people an excuse. If it weren't for Hurricane Investment's compromise due to the depreciation of the dollar, it would have been another storm, a shocking storm."

John had no idea the extent of his decision's impact on the United States, and even if he had, he wouldn't have compromised. Shutting down the Permian Basin was the best option now; oil lying underground wouldn't disappear, and extracting crude oil was clearly a losing proposition. The Permian Basin couldn't continue like this indefinitely. Despite reaching an agreement with the Middle Eastern tycoon, whether it would be satisfactory was uncertain. Necessary investments still needed to be made, and this was a good time to upgrade the refinery. Current capacity was far from sufficient to meet the development needs of the western energy sector. John also wanted to repay the loans to the Permian Basin. Since production was halted and there was no income, he could directly repay the loans to alleviate his financial burden. Once the value appreciated to his desired level, John would complete all of this.

It's better to rely on yourself than on others. Western Energy's exploration in the Middle East is aimed at having its own energy resources and not being held hostage by others. Right now, the Middle Eastern tycoons have no problem supporting it, but who knows what decisions they will make in the future? Owning its own oil fields is the best option. At this time, John turned his attention to Africa.

However, Africa is far from peaceful, and he needs to further increase the manpower of his security company; otherwise, there simply won't be enough personnel to protect his oil fields and mines. North Sea oil is out of the question now; the British aren't giving him that opportunity. John couldn't help but think of the Irish Sea, another major natural gas producer.

After a period of rambling thoughts, John sighed. The most important thing now was to deal with the Permian Basin production shutdown. This would be a long-term shutdown, not just a year or two, and it wouldn't restart until oil prices skyrocketed. However, he needed to give an explanation to Japan, and he also needed to maintain good relations with those guys in order to gain more benefits during the bubble economy. So this was no simple matter of repaying the loan.

When John thought of Akio Morita, the first person he thought of was that old man who had relayed his message. And as long as that old man was willing to step in, it wouldn't be a problem.

"John, you're not mistaken, are you? You're going to shut down the Permian Basin oil fields indefinitely? You want to repay this loan ahead of schedule?" Akio Morita was shocked when he heard John's words on the phone; this was insane.

“That’s right. The Permian Basin is shut down indefinitely from now on. Since we’re not making any money and are even losing money, it’s better to stop production. I’d like to ask you to talk to the banks. The Permian Basin situation might cause them some losses, but we can get a loan from them for Western Energy’s expansion of its refinery in the United States. As you know, Western Energy has already started storage mode. The previous small fluctuation left the refinery without any oil to refine, which is not a good thing!”

While the issue was supposedly a transportation problem, it was actually Rockefeller and his cronies who were behind it, leaving John facing a situation where he had no oil to use. Although adjustments were made in time, this also made John wary, and he no longer dared to completely trust the Middle Eastern tycoons who built storage facilities around the refinery to protect it.

Although oil prices will remain stable and low for the next decade, John is aware of the possibility of soaring oil prices in the future. Therefore, halting production in the Permian Basin is also a way to protect the Permian Basin.

"Sure, I can put in a good word for you. I'm sure they're all reasonable people and understand your predicament. But John, don't you think that with oil prices constantly falling, storing crude oil could put unnecessary pressure on you?"

"It's not really a pressure. We only need to store a small amount of crude oil to deal with any possible accidents. The rest is nothing. However, the situation in Japan is different. You have a lot of storage, so any accident won't have a big impact on you. That's enviable!"

Japan is rich now, having already completed its crude oil reserves. This is precisely why the shipping industry has suffered a greater blow, as Japan does not need oil tankers to transport oil. After losing this order, the shipping industry will naturally fall into a slump. John is well aware of this. It is impossible for him to store oil in Japan, because their land prices are too high. John cannot bear that heavy burden. A small amount of reserves will be enough.

"Please inquire about this matter as soon as possible. I'm in a hurry. After production stops, the Permian Basin will lose its economic source and face too much pressure. I don't want to see it go through bankruptcy liquidation!"

"Don't worry, I'll let you know as soon as I have any news. I definitely won't let you down!"

(End of this chapter)