The American Kill Line: I Can Predict the Future

Chapter 92: Re-strategizing in Texas

Chapter 92: Laying Out Texas Again (Seeking Monthly Tickets)

Ron ultimately did not take Taylor to the hospital for a checkup.

Because Taylor's father came and took her away.

"I'm sorry, Mr. Hunter, although I don't intend to interfere in your relationship, Christmas is the day after tomorrow, and her mother misses her daughter very much."

With things said to this point, what else could Ron say?

Watching the car disappear into the distance, Ron stubbed out his cigarette. "Fang, notify the airline to arrange your return to Texas tomorrow morning. By the way, you should take a holiday too. Happy New Year in advance!"

I was originally planning to bring Taylor home if it was confirmed that she was pregnant.

Now I can only go back alone.

"Sir, we Chinese don't celebrate Christmas."

Fang Wei first opened the car door for the boss, and then opened the passenger side door.

"I forgot, you Chinese celebrate the Spring Festival, am I right?" Ron's mother was of Chinese descent, so she knew a little about some of the traditions.

"Yes, sir."

"It's okay, just treat it as a holiday. There's nothing important to do these few days."

"Okay." Fang Wei didn't insist any further.

The car slowly drove toward Madison Avenue.

Ron was thinking about his hometown in Texas; the cost of transporting goods via pipelines was still too high.

The cost per barrel is $3-5.

The Koch family recently had pipelines installed in McMullen County, and Ron thought he could try acquiring some small, privately-owned pipeline companies to see what the market was like.

We'll talk to the Koch family about sharing pipeline interfaces later.

Even renting it would be more cost-effective than doing it now.

The acquisition of oil fields also needs to be accelerated; 6 acres is still too few.

Even in the most ideal situation, they would only earn between $1.3 million and $0.5 million a month.

This is assuming a significant increase in oil prices in the future.

Therefore, it is not only necessary to continue to increase the area of ​​oil fields, but also to further expand profits.

Thanks to its geographical location, the Eagle Beach oilfield is adjacent to the refining centers along the Gulf Coast, and its light, low-sulfur crude oil is of high quality, with local prices typically higher than the WTI benchmark price.

Based on the current average price of WTI (West Texas Intermediate) crude oil at $90 per barrel.

He can sell each barrel for an extra $6-8.

He now handles fracturing and sand production himself, and can control costs to a maximum of $42 per barrel.

This is the lowest value Bill gave.

In other words, the profit per barrel of crude oil is about fifty or sixty dollars.

Ultimately, selling crude oil is not as profitable as refining it yourself.

Energy giants like the Koch family and the Bausch family did just that.

On average, they earn an extra $13-15 per barrel.

If you factor in pipeline transportation, the cost is even lower.

The Eagle Beach Shale Oilfield Project is a long-term family business for Ron.

Acquiring a small refinery, opening pipelines, and expanding oil fields will require a considerable amount of money in the short term.

But from a long-term perspective, it's a worthwhile investment no matter how you look at it.

So the first thing Ron did upon returning to his hometown in Texas the next day was to call over his good friend Robert and his uncle John's family.

After the Hunter family ranch expanded, old Hunter also expanded his house accordingly.

The family gathered around the stove at noon to drink and eat meat.

Ron also shared his thoughts.

"Dad, if possible, I'd like you to help me continue buying up the high-quality oil fields around McMullen and Kearns, until we reach 15..."

Ten thousand acres; someone will come to measure them after the New Year.

"I only have one requirement: I just want the rights. If I can buy it, that would be best, and I'm willing to pay a premium."

Relying solely on one's father is definitely not enough; his main role is to supervise and accept.

In the end, they still have to rely on energy giants like Koch and Bath for help.

Old Hunter frowned: "6 acres isn't enough? You need to understand, this huge oil field is still losing money. You haven't even recouped your costs yet, and you still want to buy it?"

He knew the importance of this oil field.

So aside from ranch matters, most of their energy is focused on oil field development.

Ron took a sip of his drink and said patiently, "Dad, you might not believe it, but I'm very rich right now. Maybe next year—no, not maybe, I'll be even richer next year."

"Hmm?" Old Hunter was annoyed. "So, you're showing off to me?"

"No, Dad." Ron shook his head. "What I mean is, too much money is just a string of useless numbers. I need to turn these useless numbers into real things, like oil fields or sand dunes. Even if I can't handle it right now, it's still better than this pile of numbers."

He tried to explain his reasons to his family in the simplest way possible.

Uncle John asked with some curiosity, "Ron, we know you've made a lot of money in New York, even the Bass family is willing to be your friend. Can you give us some details?"

Old Hunter glanced at his brother with displeasure, but did not stop him.

Actually, he was also very curious.

Brothers Arthur and Robert also cast curious glances their own.

Ron thought for a moment and held up one finger.

"What? Fuck? 10 billion?" John exclaimed.

He couldn't possibly think it was $1 million; these oil fields alone would cost more than that.

His two sons were also shocked.

Arthur stared blankly, wondering how much 10 billion would be.

Robert nodded slightly; it was pretty much as he had expected.

Old Hunter picked up a bourbon and took a sip to hide his inner shock.

Ron opened his mouth slightly. Based on the current size of the two funds, he originally wanted to say $100 billion.

Seeing my family's expression now, I'd better just forget about it.

To avoid making them unable to bear it.

After a long while, once they had digested the information, Ron continued with the arrangements.

In short, it all boils down to one thing: shopping.

He had already spoken with the Koch family before he came, and they would be responsible for helping with the acquisition.

A small refinery with a daily output of less than 10 barrels would not cost more than $1.5 million.

Transportation pipelines are more expensive due to costs such as surface clearing, trenching and pipe laying, materials, and land acquisition.

According to the Koch Institute's quote, the cost of a 24-inch diameter oil pipe is between $900 million and $1000 million per mile.

Ron shouldn't be too long either, 30 miles is about right.

Total investment: $3 million.

Of course, this is a large project with a long construction period.

And then there's the additional 7 acres of oil fields.

I wasn't as lucky as last time to be able to buy something cheap.

CNOOC has already released the high-quality data for Yingtan, and the price of this area is now very high.

These 7 acres are worth no less than $5 million.

More importantly, the two Permian basins in western Texas and southeastern New Mexico are the real big players.

This is news shared by the Bath and Koch families.

The Bath family has already stockpiled 50 acres, while the Koch family has at least one million acres.

Damn, this is a real giant.

They can casually sell off millions of acres.

Ron doesn't need much, 20 acres will suffice.

Based on a market price of $2 per acre, the total investment is estimated at $40 billion.

The reason it is so high is mainly due to its superior geological structure. It is recognized as a treasure trove with the lowest cost and the greatest development potential for shale oil.

It's even better than Eagle Beach.

Even if the giants do it quietly, their large-scale purchases still drive up prices.

However, Ron plans to borrow the money from the Koch family and old Bass.

Not only do we need to lend them money, but we also need to cooperate with them to develop refining and chemical processing.

This reduces upfront investment costs.

Use the money you earn to pay off debts first.

Anyway, their downstream sales channels are also theirs.

"Damn it, not a single one of them is capable."

Ron stayed home for several days.

During this time, many members of the Hunter family who had been living away from home learned of his return and came to visit him one after another.

It was a reunion of the Hunter family, I suppose.

Ron talked to many of his tribesmen and found that none of them were doing very well.

There are a few people his age who are not bad.

However, since we are separated by several generations, we are not very familiar with each other yet.

Ron planned to leave them here to work at the sand plant first.

If someone has good character, entrust them with important responsibilities.

So, he doesn't lack money right now, he just needs men.

A trustworthy person.

In the end, all I can do is suffer for my good brother.

"Robert, the sand plant will be up and running next month, and I can arrange for Arthur to take over. If possible, my good brother, I'd like you to take my two cousins ​​and help me check out the oil fields in Upton County. You don't need to do anything yourself; you just need to—" What? Robert's face immediately darkened: "Fuck!!! I treat you like a brother, and you think I'm some kind of beast of burden?"

Recalling the hardships he had endured, he flew into a rage and cursed, "Damn it, I believed your lies and ended up in this wretched place. Do you know what I've been through these past two months? Red sand, brown sand, everything's sand. I've been sleeping with sand all night long!"

"Now, you're sending me to Upton County again? Fuck, do you even know what that place is?"

Although Ron offered him a very high salary, one he could never earn in New York.

But he still loves New York.

I love the skyscrapers, the bright lights, and the beautiful women there.

Instead of this poor place where even the bars are full of dirty men.

Occasionally, a woman would come by, and her skin was even rougher than his.

This isn't building a career, it's living a life of suffering.

Now that I've adapted a little, I'm going to Upton County, where conditions are even worse.

And he even brought two burdens with him.

Ron knew his request was a bit excessive, but he really didn't have anyone else he could use.

I can only try to appease my good brother and put up with this for now.

Over the next few days, Ron toured the oil fields and sand plants.

On the first day of the new year, he and his family were invited to the Bath family home.

Old Bass didn't hesitate much before agreeing to lend Ron the money to buy land.

"Haha, don't bother Charles with this little bit of money, I'll cover it all for you."

The Permian Basin is a very large oil field, and even established energy companies like these cannot possibly take it all.

Bringing Ron in is better than letting outsiders benefit.

Moreover, this loan was secured by land, meaning he essentially bought it himself.

The price difference alone from joint development can generate substantial profits.

No matter how you look at it, it's a sure-fire way to make money.

More importantly, Ron is incredibly good at making money.

Even the Federal Reserve's money printing can't keep up with his pace.

He only invested $1 million in the second fund to test the waters.

Unexpectedly, it tripled in just a few months.

He plans to invest a little more in his third fund.

Ron did not refuse Old Buss's offer.

After spending a day with the Bath family, before leaving, Old Bath mysteriously hinted that there would be a little surprise in a few days.

Ron didn't pay much attention and rushed back to New York the next day.

And then they began assigning tasks.

On January 4th, ADP private sector employment figures far exceeded expectations, causing a sharp drop in the most active gold futures contract on the New York Mercantile Exchange.

On January 11, Japan announced it would purchase bonds of the European Financial Stability Facility (EFSF). Demand for Portuguese, Spanish, and Italian government bonds exceeded expectations, causing the euro/dollar exchange rate to surge, reaching a high of 1.3625 on the 21st, a gain of 5.55%.

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