Chapter 760: Fighting Together
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"President, the recent low price of world oil has been on the low side, and Margaret Thatcher has proposed to us several times that it is necessary to put pressure on Middle Eastern countries to return to their original quota production and restore world oil prices to a reasonable range. Pen? Interesting? Pavilion wWw. biquge。 Vice President Bush told President Re≦≧agan: "Moreover, the world's oil prices are so low that even though our domestic oil fields have minimized oil production, they are still a little unbearable." ”
Low oil prices are a boon for countries that need to import oil, and low oil prices bring about the rapid development of logistics and other industries, but for oil-producing countries, it is definitely not a good thing.
Britain, Europe's major oil exporter, can no longer bear it, and as far as the United States is concerned, although the United States has taken advantage of low oil prices to increase its strategic crude oil reserves, and has reduced its own domestic oil exploitation, and has also provided some subsidies, American oil merchants are also having a headache for the reduced interests, especially Vice President Bush, who himself is an oil businessman. Bush was so financially savvy that he gave up his privileged life in New England to start a business in the newly rising oil state of Texas with his new wife just after World War II. With his uncle's sponsorship, Bush started his own oil company in 1951. ≦≧ 1966, Bush was elected to Congress, then director of the CIA and eventually vice president.
Now, Bush's own interests are beginning to suffer, and of course he has to care. So, he proposed to the president that this time the price of oil, it seems that it is a little too low?
Who knows, President Reagan's words convinced Bush. President Reagan has always been accustomed to listening to his subordinates and then choosing what he thinks is the best plan, and Vice President Bush has often advised President Reagan and received advice that has been adopted.
In fact. President Reagan's considerations. More thoughtfully, Reagan was able to climb from an actor to the presidency, how could he be incompetent?
"We're now. Who is the worst enemy? President Reagan asked.
"The Soviet Union, of course." Bush said.
"So, what is the strategy we developed against the USSR?"
"Economically, drag down the USSR!" Bush said. ≦≧ in order to deal with that huge empire in the north, the United States made a wise decision to drag down the Soviet Union with an arms race. The United States took advantage of its economic superiority and dragged the Soviet Union onto the road of an arms race, and now the economic situation in the United States is very bad, because the United States has invested a lot of money in the military. Including that famous Star Wars program. And in the USSR, the economy was even less optimistic, because. The USSR was on the basis of a GDP much lower than that of the United States. But to maintain the same military spending as the United States, the Soviet Union is now beginning to make a big fanfare about early aircraft carriers. Do they think that a strong military is really strong? Really strong, it's economic!
The Soviet Union has now begun to borrow from Western Europe, and after this action begins, the Soviet Union will not slow down any longer, like a snowball, the debt will get bigger and bigger, and in the end, they will have to borrow new debts to pay off old debts, and then they can use the debt problem to force the Soviet Union to make concessions on some issues. If the USSR did not budge, then, do not lend the USSR money, let them have no funds, import grain!
Reagan's vision is also quite poisonous, he has already thought that now that oil prices are low, it is not only the British oil industry that will suffer, but also the Soviet oil industry, which will be hurt even more, this is a good time! Wouldn't it be better to let that huge empire slowly bleed to death?
Bush is also a smart man, and when Reagan said this, he understood that President Reagan meant to take advantage of this low oil price to bring down the Soviet Union!
In later generations, it was also under Reagan's proposal that Saudi Arabia increased production on a large scale, which led to the low price of oil in the world, as a result, the Soviet Union became poorer and poorer, and finally, Gorbachev found that when he came to power, he had nothing under his command, he wanted to reform, there was no money, and he wanted to plug the funding gap, but there were several ways, such as stopping the barter with the Eastern European republics with oil and gas, and exchanging the oil and gas for hard currency with the West. ≦≧However, in this case, all the union republics will probably be dissolved. Second, reduce food imports by 200 billion yuan a year. This meant that most people would go hungry and would have to meet World War II-level rations. If this kind of behavior was carried out again in the eighties, I am afraid that the USSR would collapse in a month. Or it is a large-scale reduction of the military industry and a reduction of military spending. But the dependence of many Soviet cities on the military-industrial complex caused huge contradictions. ≦≧ Gorbachev does this, he will lose the support of the army and will be even more dangerous.
Gorbachev had no choice, so he embarked on the old path of borrowing new debts to pay off old debts.
Bush also saw the enormous advantage of doing so, which could make the giant of the Soviet Union gradually lose its vitality and go into decline.
It's just that the Soviet Union has not yet finished shedding blood, and its own blood is about to begin to flow downward.
Texas is the largest state in the southern United States and the second largest in the country, after Alaska. The oil center here produces crude oil known as "West Texas Intermediate" and ranks first in the United States in terms of crude oil production and second largest natural gas production in the United States.
Since this petroleum has less sulfur components, it is suitable for the production of light oils such as gasoline and petroleum products. Crude oil is of good quality, a grade higher than Brent crude from the North Sea, crude oil from Dubai and other crude oils, so it is trading a few dollars more per barrel. ≦≧ Moreover, Texas has a history of developing oil fields for more than 100 years. The infrastructure for excavation, development, and production is well developed, so it is possible to save a lot of initial development costs. The oil pipelines in Texas are very widely distributed, and they are sold in the United States, and the consumption places and refining bases are very close, which greatly saves transportation costs. Under various conditions, the production cost of Texas' oil fields is very low, so now the oil industry in the United States is still standing, but the profits have decreased, which is also very unpleasant, they exploit oil for profit, definitely not to contribute.
Bush's oil company now has very low profits, so low that he can't accept it.
Although the interests of the United States are very important, Bush was already an oil merchant before he became vice president, and he still needs to take care of his own interests.
Although the state has begun to subsidize its own oil industry in small parts, the United States' finances are now also very difficult, and the United States' fiscal deficit regularly reaches 100 billion dollars, which is a terrible figure. Now that oil prices are falling, the U.S. economy has improved. However, Bush can't let his oil companies continue to live like this because of this, right?
However, Bush couldn't mention it directly, so on behalf of the Texas oil tycoons, he proposed to President Reagan that the price of oil seemed to be too low, and the Iron Lady couldn't lose without even a skirt, right?
However, as soon as President Reagan said this, Bush felt that since this could bring down the Soviet Union, then in the eyes of the president, he would certainly sacrifice his own interests.
"George." "That said, "We're doing our best to fight our common enemy, and we're also hurting our own domestic oil producers." ”
Speaking of this, Reagan paused, of course, he meant to say this to Bush, who doesn't know that Bush is an oil tycoon in Texas!
"However, this matter is not necessarily all harmful to us. We know that now BP is almost unbearable, so what should BP do next? Reagan asked.
BP, it's BP, as soon as Bush heard it, he understood that in the end, it was the president who was the most shrewd, and he actually played such a calculation!
Benefiting from the majesty of the empire on which the sun never sets, the oil hegemony of the British was established in the second half of the nineteenth century. Britain owns oil fields in many parts of the world, although the prestige is not there, but the foundation of Britain is still there, Britain is still in the oil fields of many other countries, there are shares, for example, the Oman Petroleum Development Company manipulates 90% of Oman's oil reserves and 94% of the production, in this company, BP accounts for 20% of the shares, not only these underdeveloped countries, but also in developed countries, for example, in the Canadian Dom Oil Company, BP holds a large number of shares, even, Even in the United States, in Texas, BP also has a large number of oil field shares!
And President Reagan, the calculation is very clever, the British oil company is too powerful, although the United States and Britain are allies and the closest comrades-in-arms, but when it comes to interests, brothers, the truth of settling accounts is valid everywhere.
Simply taking advantage of this oil price reduction, when attacking the Soviet Union, piggyback on the income that seriously affected bp, so that bp must do all kinds of things in order to survive, such as selling their shares in the American oil company!
Bush was originally from an oil company, and when he heard President Reagan say this, he immediately understood, and what his company needed to do was to raise funds and prepare to buy their shares in Texas oil companies when BP's capital chain was broken!
Thinking of the benefits that the American oil merchants have gained as a result, Bush naturally has no doubts about President Reagan's actions.
"This time, Iraq is surprisingly cooperative, and it seems that as long as we throw more olive green at Iraq, Iraq will turn to us." Bush said. "Perhaps, the conditions that Iraq put forward last time, if Britain cannot pay for the E-3 early warning aircraft, we can really consider selling this kind of early warning aircraft to Iraq first."