Chapter 291: Energy Issues

No. 1 smiled: "Brother, you are really modest, the Monsanto Company of the Moldy Country didn't disappear on its own, did you do it?" The chief looked at Long Dan, as if he understood everything, and said: "Brother, you, you, you really have you, but what you do in the future is not to say hello to us, this is good, we have done good things for our country, we are still in the dark". I am satisfied, the country has a talent like you, why worry about the country is not prosperous. Since the reform and opening up, we have changed from an oil-exporting country to the largest oil importer, and this cannot but be a matter of careful consideration and a way to ensure our oil security."

The chief analyzed: "The distribution of crude oil is extremely unbalanced on the whole: from the perspective of the eastern and western hemispheres, about 3/4 of the oil resources are concentrated in the eastern hemisphere, and the western hemisphere accounts for 1/4; From the perspective of the northern and southern hemispheres, oil resources are mainly concentrated in the northern hemisphere; From the perspective of latitude distribution, it is mainly concentrated in the two latitude zones of 20°-40° north latitude and 50°-70°. The two major oil fields of the Persian Gulf and the Gulf of Mexico and the North African oil fields are located within 20-40°N, which concentrates 51.3% of the world's oil reserves. In the latitude zone of 50°-70°, there are the famous North Sea oil fields, the Russian Volga and Siberian oil fields and the Gulf of Alaska oil field".

"The Middle East Gulf region is located in the hub of Europe, Asia and Africa, and is very rich in crude oil resources, known as the "world oil depot". According to the latest figures for 2006, the world's proven reserves of crude oil were 180.49 billion tons. Among them, the proven reserves of crude oil in the Middle East are 101.27 billion tons, accounting for about 2/3 of the world's total reserves. In the top 10 of the world's crude oil reserves, Middle Eastern countries account for five places, followed by Saudi Arabia, Iran, Iraq, Kuwait and the United Arab Emirates. Among them, Saudi Arabia's proven reserves are 35.59 billion tons, ranking first in the world. Iran's proven crude oil reserves are 18.67 billion tons, ranking third in the world."

"The countries with the richest crude oil reserves in North America are Canada, the mold countries and Mexico. Canada's proven reserves of crude oil are 24.55 billion tons, ranking second in the world. The proven reserves of crude oil in the country are 2.98 billion tons, mainly distributed in the Gulf Coast and the Gulf Coast of California, with Texas and Oklahoma being the most famous, and Alaska is also an important oil producing region. The country is the world's second largest oil producer, but it still needs to import a large amount of oil every year due to its excessive consumption. With proven reserves of 1.69 billion tonnes of crude oil, Mexico is the third largest traditional strategic crude oil reserve in the Western Hemisphere and the sixth largest oil producer in the world."

"The proven reserves of crude oil in Europe and Eurasia are 15.71 billion tons, accounting for about 8% of the world's total reserves. Among them, Russia's proven reserves of crude oil are 8.22 billion tons, ranking eighth in the world, but Russia is the world's largest oil producer, with oil production of 470 million tons in 2006. Kazakhstan in Central Asia is also a country with relatively rich crude oil reserves in the region, with proven reserves of 4.11 billion tons. Norway, Britain and Denmark are the three countries with the most proven crude oil reserves in Western Europe, with 1.07 billion tons, 530 million tons and 170 million tons respectively, of which Norway is the world's tenth largest oil producer.

"Africa is the region with the fastest growth in crude oil reserves and oil production in recent years, and is known as the "second Gulf region". In 2006, Africa's total proven crude oil reserves were 15.62 billion tons, mainly in the Gulf of Guinea region and North Africa in West Africa. Experts predict that by 2010, the share of oil production in the world is expected to rise to 20 per cent of the world's oil production."

"Libya, Nigeria, Algeria, Angola and Sudan rank among the top five in Africa in terms of crude oil reserves. Nigeria is the largest oil producer in the African region. Currently, five countries – Nigeria, Libya, Algeria, Angola and Egypt – account for 85% of Africa's total oil production".

"Central and South America is one of the world's important oil production and export regions, and also one of the world's fastest growing crude oil reserves and oil production, with Venezuela, Brazil and Ecuador being the countries with the richest crude oil reserves in the region. In 2006, Venezuela had 10.96 billion tons of proven crude oil reserves, ranking seventh in the world. In 2006, Brazil's proven reserves of crude oil stood at 1.61 billion tons, second only to Venezuela. The crude oil resources of the campos and Santos basins in the southeastern part of Brazil are the most important components of Brazil's crude oil reserves. Ecuador is located in the northwest of the South American continent and is the third largest oil producer in Central and South America, with abundant oil resources, mainly concentrated in the eastern Amazon Basin, in addition, there are also a small number of oil fields in the western peninsula region of the province of Guayas and the Gulf of Guayaquil".

"The proven reserves of crude oil in the Asia-Pacific region are about 4.57 billion tons, and it is also one of the regions with the fastest growth in world oil production. China, India, Indonesia and Malaysia are the countries with the richest proven crude oil reserves in the region, with 2.19 billion tonnes, 770 million tonnes, 580 million tonnes and 410 million tonnes respectively. Although China has abundant crude oil reserves, it still needs to import a large amount of oil every year."

"Due to the superiority of China's social system and the rapid development of the economy, China's oil demand has occupied the second place in the world, second only to mold countries. But our country has not many oil reserves. By the end of last year, China had discovered 4 billion tons of oil reserves. Huaxia Petroleum Corporation, the largest oil company in China, reported discovering 520 million tons of oil reserves last year. Another major oil company, Huaxia Petrochemical Co., Ltd., discovered 328 million tons of oil reserves in 2004. Last year, China's economic growth rate reached 15 percent, the largest increase since 1996. Due to economic development, two-thirds of China's provinces lack electricity, and energy shortages have become a bottleneck for China's economic development."

"China's crude oil consumption was 288 million tons last year, and it will reach 320 million tons this year, making it the world's second largest energy consumer after the United States. Due to the soaring demand for crude oil, China's oil companies have explored oil reserves everywhere from the Tarim Basin to the Bohai Bay in the east. China has been striving to import more oil from Russia, and so far, Huaxia Petroleum Group has signed 48 investment cooperation agreements with 20 countries. Last year, the company acquired an interest in 16 million tonnes of oil overseas. One of the company's biggest overseas moves is the construction of a 1,000-kilometer Kazakh-China oil pipeline costing $700 million. After the completion of this pipeline, the annual transportation capacity will be 10 million tons. Huaxia Petroleum Group is also building an oil refinery in Venezuela with a capacity of 6.5 million tons of oil per year."

"China's coal reserves reached 600 billion tons, ranking third in the world, and in 1997, it was proved that the oil reserves were about 3.9 billion barrels, and the oil reserves ranked eighth in the world. Although China's coal reserves reach 600 billion tons, ranking third in the world, the per capita reserves are about 462 tons, far less than the world average. The oil reserves rank eighth in the world, but the per capita level ranks 41st in the world, so China's oil reserves and development speed are far from keeping up with demand."

"In this regard, Iran has a natural advantage, with 90 billion barrels of proven crude oil reserves, accounting for about 9% of the world's total reserves. The vast majority of Iran's crude oil reserves are located in the southern part of Iran, not far from Iraq, in the Khuzestan region, and in the Persian Gulf. Most of Iran's current crude oil production comes from the following fields: Jistan, Mailang, Jacksairi, Agjali and Bibi Aisan. But Iran's oil production capacity is seriously insufficient, and so far, it has produced less than 4 million pokes per day."

"50% of Iran's crude oil exports are in the Asian market, the rest in the European and African markets. Iran's domestic crude oil consumption is increasing rapidly at a rate of 7% per year as the economy and population grow. In addition to this, Iran subsidizes the high price of petroleum products, and leads to a large amount of Lang fees and ineffective consumption of crude oil. At present, although Iran is a large net exporter of crude oil, it still has to spend $1 billion a year on petroleum products (mainly gasoline) due to insufficient domestic production."

"Iran can increase its crude oil production if there is enough investment. Iran's production reached 6 million barrels per day in 1974 and has not exceeded 3.8 million barrels per day per year since the Islamic Revolution in 1979. In the 80s, Iran used sabotage oil recovery to maintain the production of some old oil fields. Iran's oil fields are being reduced at a rate of 25-300,000 barrels per day per year and need to be updated and transformed. If China invests in Iran's oil fields, Iran's crude oil production will reach 10 million barrels, which will not only meet Iran's own consumption, but also greatly alleviate China's demand for crude oil."

Long Dan listened to No. 1's explanation and said, "Does the chief mean that the next step is to strengthen cooperation with Iran and invest a lot of oil in Iran?" No. 1 said: "Yes, in the last military operation against Iran, Iran defeated the mold country, and that is your credit, I believe that Iranian officials will not forget this matter." In addition, Iran has offended the moldy country to the home, although the mold country has failed, but he is still the strongest military country in the world, the mold country will not give up like this, and will definitely come up with other ways to restrain Iran; Therefore, Iran also needs a big country to protect, at this time, if we don't take action, Russia or other countries will be involved, and when the time comes, we will be passive, so ah, we have to hurry up and cooperate with the Iranian official, which is an important event for us in China at present, but at present, it is still a bit inappropriate for our country's official to come forward, and it is better for you to come forward."

Long Dan said: "There is no problem with this, the last time I went to negotiate weapons with them, the Iranian military leaders were quite polite to me, since the country needs me to come forward, then, I will come forward again, and try my best to establish a good cooperative relationship with Iran."