Chapter 471: Passive Oil Exports

In particular, it is also possible to build a defensive unit on it, and when Li Lan saw the explanation of this unit, his face blossomed with joy. Even something as good as the Guangling Tower could be built, and for him, it was a good means to expand his defensive circle.

There is also a problem here, because the offshore oil production platform is a civilian facility, and as long as there are no weapons facilities on it, other countries generally do not take the initiative to attack such a structure. But once there are radars and weapons on them, they will be used as armed strongholds, and if war breaks out, these platforms will be the first to be attacked.

Once the military facilities are installed and the oil production platform is located in the Gulf of Aden, Li Lan will face great international pressure, and most countries in the world will oppose it. After all, the EEZ is not a territory and can carry out normal economic operations, but it is not possible to establish a fixed military base in the international shipping lanes outside the territory.

However, Li Lan already had a way to deal with it, no matter whether there were weapons on it or not, as long as others didn't know the way. In this way, it can also have a surprise effect in wartime.

As for which defense unit to build after the platform was built, he already had a preliminary plan in mind.

After confirming the construction, Li Lan did not stop, converted the control panel into another sub-base, and also pointed out the offshore technology drilling and production platform, and continued to confirm the construction.

In five days, two rigs will be drilled into the Gulf of Aden, and when the wells are ready, the oil will flow into the refinery's underground storage warehouse.

And at the beginning of the next stage, he also intends to start selling oil. Previously, because of insufficient strength. Once there is a blockade, if there is a shortage of your own oil, it will be very passive. Therefore, he can also store all the oil first, so that he has a certain reserve, and make sure that it is complete as much as possible before selling the oil.

Now the time has come to sell oil, and Somalia's oil reserves have exceeded 100 million tons, which can fully meet its needs for a long time.

Previously, due to the fact that the United States had already been promised. In the future, Somali oil will be settled in US dollars, and it is not mandatory not to use the United States trading platform.

But. The use of dollars alone has made Somali oil sales very passive.

Fortunately, the United States has a good plan, and Li Lan also has a ladder over the wall. Since he agreed to this condition of the United States at the beginning. Naturally, there are ways to deal with it.

The dollar is pegged to oil. Under the consensus of the world, the U.S. Treasury can buy oil by turning on the money printing press, which is a privilege that no other country can have. Any other country in the world has to exchange real goods and services from the United States for dollars, and then buy oil that is essential for development.

These petrodollars are eventually repatriated into U.S. stocks, treasuries, and financial assets, which also fill U.S. trade and fiscal deficits. It is the economy of the United States that underpins it. However, while the petrodollar has achieved US financial hegemony, it has also brought endless troubles and risks to the world. Or even a disaster. Because it is only when the petrodollar pattern is challenged that we can find out from the reaction of the United States how much the United States attaches importance to the petrodollar pricing mechanism.

Oil production originated in the United States, at the beginning of the price in US dollars, that is, more than 150 years ago, after the successful development of the Drake oil well in Pennsylvania, it was denominated in US dollars, the oil industry developed the earliest and most powerful, the technology of the oil industry of course there are seven sisters, at the beginning of the seven sisters, five were in the United States, it is in the world of oil extraction, and sales of the world.

Although the oil industry originated in the United States, the currency of oil trading was not initially monopolized by the US dollar, and during the Second World War, Britain used the pound sterling to crowd out American oil companies, and the countries in the sterling area also banded together to increase the proportion of pound sterling to suppress the dollar. With the end of World War II, the pound depreciated badly, eventually losing to the dollar and losing its settlement territory.

At that time, the earliest monetary system of the whole world was dominated by the British pound, and the British pound was actually not the largest economy after the First World War, but the British pound was still used as a global denominated currency, as a major subject currency. By the end of World War II, Britain had also done a lot of work, and it didn't want to become a subject currency, because the main currency was aimed at you at the exchange rate with you, and you couldn't depreciate it if you wanted to, and everyone was tied to you. So it didn't until after World War II that it completed this delivery, and let the dollar be the world's denominated currency. Since then, basically all the world's largest transactions, whether it is commodities, have been denominated in US dollars.

After Saudi Arabia's oil was tied to the dollar, when Saudi Arabia woke up, it wanted to get rid of the situation of dollar settlement for a while, but Vice President Ross visited Saudi Arabia for the purpose of consolidating the position of the United States in Saudi Arabia. Now Saudi Arabia no longer changes the currency in which oil is settled.

There are only three countries that dare to openly challenge the petrodollar pricing mechanism, the first of which is Iraq during the Saddam era. During Saddam's administration, Iraq switched to euro pricing for oil sales in November 2000, which had important political implications and also supported the weak euro at the time.

Many people believe that the subsequent war in Iraq by the United States was due in large part to Iraq's change of the settlement currency for oil exports from the dollar to the euro. The deep-seated purpose of the U.S. war is to hit the euro and preserve the petrodollar.

First of all, I want to send a signal to the rest of you, the oil-producing countries, I warn you, that if you continue on his path, that will be his fate. If you want to throw away our dollars, I can overthrow you by military means, that's what it means. And then of course he wants to occupy Iraq's oil resources.

The second country to dare to openly challenge the status of the petrodollar is Iran, which began to claim it back in 1999. Prepare for the introduction of the euro-denominated mechanism for oil. In March 2006, Iran established an oil exchange with the euro as the trading and pricing currency, as a result of Iraq's experience. Many people also fear that the United States will start a war in Iran as a result.

The issue of Iran's nuclear weapons, in fact, is also a cover, because Iran is the successor of Saddam Hussein's Iraq, the most active advocate of using the euro, and now he has announced that all his oil sales. He settled in euros, which is intolerable to the United States.

And the third country is Venezuela, under the leadership of Chávez. Venezuela has established barter trade mechanisms with oil and 12 Latin American countries. Relations between the United States and Venezuela are sharply strained. Internationally, the United States does not hesitate to use various means to insist that oil be settled in dollars, but at home, the relationship between the US government and oil companies is even more inseparable.

The George W. Bush administration was in fact an oil capitalist government. The first thing he did when he came to power. There was an American energy policy, led by the vice president, which itself was an expression of the aspirations of the oil industry, the oil capitalists, the oil giants. The core content was to go abroad to grab oil resources, and a team was organized to draw a very detailed map of Iraq's oil, which divided the western part of Iraq's oil into several parts. There is an estimate of how much each piece of production is, because the west is uncultivated. It is estimated how much, and it is all drawn in pieces, and one piece at a time is like cutting meat, which is very clear.

Internationally, many people have also criticized the United States for doing so, saying that the current oil trade has consolidated the status of the dollar as an international currency, thus forcing other countries to support the US economy, because oil importing countries are forced to buy dollars to pay for oil, while oil exporting countries are sitting on a large number of dollar reserves, so they have to invest in the United States. As soon as the dollar depreciated, almost all countries in the world suffered with it. In recent years, the continued weakness of the US dollar has become a historical trend.

Now it seems that America's nightmare is really coming, a new currency may be going to replace the dollar, is the dollar really going to be completely abandoned? If this happens, it will completely shake the dollar's position as a settlement in the global oil trade. This, in turn, will lead to a further depreciation of the dollar and a faster withdrawal of international capital from the United States. Will the United States stand idly by in the face of the fact that the financial dominance of the dollar will be completely destroyed?

However, Iran began settling most of its crude oil exports in non-dollar currencies a few years ago, and even set up an oil exchange, but the actual price of Iranian oil is still set in dollars. It's because of a convenience, because no economy is so big, for example, like the European Community, the euro, its scale is not so large, the liquidity may be better, the yen can't be helped, its liquidity is not so good, you say the Australian dollar is good, why don't you use the Australian dollar, the Australian dollar is too small, the Canadian dollar is too small, and the Chinese dollar can't be converted, so what should I do? Again, the US dollar approach is used.

Li Lan never had the idea of replacing the dollar with another currency. For example, the euro area is very convenient, the euro area is very large, and its trade accounts for a large proportion, and the euro can be used to settle with China, but countries outside the euro area, for example, with African countries, have to use the US dollar, and the national currency of Africa will not be accepted by China. From a global perspective, it is still necessary to use US dollars, because it is highly liquid, easy to operate, easy to change, you don't want to use it, you still have to use it, because the same logo used around the world is used to denominate, and there is no way to escape.

But the Somali shilling is different, it can be exchanged with many African currencies, it can also be exchanged with China, and the Chinese dollar can be exchanged with the euro. Moreover, Li Lan can completely sell the US dollars after the oil settlement, and do not invest in US dollar products, but invest in other currency products, such as Chinese currency products, so that he can avoid all kinds of embarrassments of having to settle in US dollars for the time being.

Of course, this approach is not long-lasting. At the beginning, he also considered the difficulties he would face after accepting this request from the United States. However, when he considered that Iran's oil exports should also follow the oil price standard of the US dollar, he also agreed to the United States.

At that time, he also considered that two-thirds of the current trade in the world is denominated in US dollars, and two-thirds of the reserves of the central banks of various countries are also in the form of the United States, so if the dollar standard is abandoned, it will also cause heavy losses to the rest of the world. The most fatal point is that the foreign exchange reserves of various countries will shrink sharply. It is precisely China that has been hurt the most.

Therefore, there is no need to change this situation in a hurry.

According to Li Lan's prediction, it may eventually become a multi-currency state, with the Chinese dollar, the euro, the US dollar, and possibly the Japanese yen also playing a certain role. The hegemony of the US dollar is weakening, but it does not mean that it will be replaced by someone immediately, because the second and third children cannot replace it at all, and the fourth Huayuan has not grown up yet.

It is precisely because of so many considerations that Li Lan will so simply agree to the United States. The so-called countermeasure, in addition to buying products in another currency with dollars of income, is to see how long the dollar can support the evolution of time. (To be continued......)