We are all reborn, who wants to be the richest man?
Chapter 541: Oil also needs to participate
Haiyang County, the birthplace of landmine warfare, has not yet been upgraded to a city.
"Uncle Zhang, is Uncle Zhang at home?"
At the doorstep of a house in Xiaoji Town, a young man dressed at attention pushed open the door.
"Oh, it's Xiao Shen, come in, come in quickly."
A woman in her forties was cleaning the yard. When she saw the visitor, she put down the broom and greeted him enthusiastically.
"Come and sit down, Xiao Shen, I'll go get you a glass of water."
"No need, Aunt Zhang. Isn't Uncle Zhang at home?"
"Here, here, in the warehouse in the backyard. I'll go call him for you."
Hearing that Uncle Zhang was in the backyard, Xiao Shen didn't wait for Aunt Zhang to call him but got up and followed him in.
It is called a warehouse, but in fact it is just a small workshop, and the warehouse was filled with steam at this time.
I saw several large steamers placed on a fire inside, and an old man with his bare chest was adding firewood and wiping his sweat.
"Mr. Zhang, Mr. Zhang, take a break, Xiao Shen is here",
Uncle Zhang, who had been busy and hadn't noticed anything, looked up when he heard his wife's words, and quickly wiped his hands when he saw Xiao Shen following behind him.
"I leave this to you. It will be almost done in five minutes."
After explaining something to his wife, Uncle Zhang enthusiastically shook Xiao Shen's hand and said, "Xiao Shen, are you here for something today? Come on, come into the house with uncle and try the great tea I bought two days ago."
"Don't bother me, Uncle Zhang. I have to go to someone else's house later."
After taking a look at the layers of wooden boards at the back that were filled with inverted cans, Xiao Shen congratulated him, "Uncle Zhang, you have a lot of inventory. Today is another bumper year."
This is a small rural workshop. In the entire Yantai city and surrounding villages, there are at least 80,000 such small workshops.
They are all fruit farmers who own their own land. Those who are willing to work harder will process some of the fruits into canned goods and sell them to people like Xiao Shen. Those who are not willing to do so will just sell the fruits directly to the canning factory.
As early as 84, Shandong Province started land contracting, so the fruit farmers took good care of the orchards. There was no problem in growing the fruits, but the main limitation was the sales.
Now, not only do we no longer have to worry about sales, but we can also make some extra money by processing.
The production of canned food is actually very simple. Soak the cut fruit in clean water and a little salt for ten minutes. This not only removes the astringency of the fruit but also prevents it from oxidation and blackening.
Then you can put the cans into cans and add purified water. It must be purified water because water contains acid and alkali. Canned food made with alkaline water will not be good.
Finally, put in one-fifth of the jar's capacity of rock sugar and then steam it.
The steamed cans need to be turned upside down so that the vacuum can be maintained longer.
Without adding preservatives, it can be stored for 8 to ten months, and with a little bit of preservatives, it can be stored for two years without any problem.
For people like Uncle Zhang who have fruit trees at home, if they work hard, they can make two or three times more money by canning the fruits than they did before by selling them.
Speaking of income, Uncle Zhang chuckled and said, "I have to thank the government and you, Xiao Shen. Life is getting better and better."
"Uncle Zhang, you call this hopeful? I can see that the house has everything, including a TV, washing machine, and refrigerator."
Their rural house has front and back yards, and when I came over just now, I could see the layout of the house at a glance.
"So you have to thank the leader?" After another round of thanks, Uncle Zhang asked, "By the way, Xiao Shen, what brought you here today? It's not the quota day this year."
The quota is a name given by the locals. At the beginning of the year, the local area will count the number of households willing to make canned food, and each household will be counted and put a check mark on the list.
Basically, Penglai Trading Company places the order and the government allocates the quota.
The reason they do this is that they have no market. What if business suddenly declines and they can't sell the canned food?
However, this situation has not occurred in the past two years. Not only the planned purchase volume was met, but also the excess volume was purchased by Penglai Trading Company.
"Hey, you see, I almost forgot something.
It's like this. We won't be adopting a quota system this year, because the volume is large, we've changed to a contract system.
That is to say, you can produce as much as you want, but you have to sign a contract, and if you fail to complete the production, you will need to pay compensation, and the purchase price will also increase slightly."
In times of chaos, severe punishments are used. Although the scenario is wrong, the meaning is almost the same.
As more canned food is produced, the price of raw materials will naturally rise. Compensation is not the purpose, the purpose is to allow people to open up wasteland.
I believe that the price of fruits will increase from the beginning of the year. In order to complete the task and gain profits, a large number of farmers will inevitably contract land and open up wasteland.
"Okay, Uncle Zhang, I just want to inform you.
During this period, you can also discuss it with your eldest and second child in your family. There is still one month before the contract signing.
But I would like to remind you not to aim too high, or you will have to pay compensation if you fail to deliver the goods."
"Yes, yes, we'll discuss it when the eldest and second come back in the evening."
"Don't worry, there's still a month left.
That’s it for now, I still have to go to other people’s houses to inform them.”
After saying that, Xiao Shen was about to leave, and Uncle Zhang stood up to try to keep him.
"Why are you in such a hurry? Have a drink of water before you go."
"No, thank you Uncle Zhang."
There is no limit on production. Some people have started dreaming of getting rich and think that the whole family can do nothing but produce canned food. Others want to buy small machines to improve work efficiency. If some of these people get rich, others will lose money.
Of course, there are also many smart people, such as Uncle Zhang’s eldest son.
"I agree with what my dad said about using the family savings to buy machines to improve work efficiency, but these are not canning machines but agricultural machinery."
"Agricultural machinery? Why buy that thing? Why can't I use it in my orchard?"
"It's not our orchard, but my brother-in-law's."
Uncle Zhang became more and more confused by his son’s words. How could this involve his son-in-law and his family who lived far away in Rizhao?
“Dad, do you remember what my eldest sister-in-law said when she came over last year?
They said that all the able-bodied laborers in the village had gone to the south to make money in the city, and many orchards were left unattended. If this continued, they would be abandoned.
In this case, why don’t we rent some land from my brother-in-law’s house?
It seems that the demand for fruit will increase significantly next year, and it will become increasingly difficult for canneries to purchase fruit, so the price will naturally rise.
Instead of increasing the production capacity of canned food, it is better to grow fruit. No one knows how much the price of fruit will increase by then, but selling fruit is definitely a business that makes money without any loss."
Old Zhang fell into deep thought, and finally Aunt Zhang made the final decision, "I think what the eldest brother said makes sense. We must make a choice at this time. We will plant fruit next year."
Because of Luo Nianzhong's words, the entire Yantai and surrounding counties and cities are starting to prepare for next year, but he himself has no follow-up attention to this matter. He came to Shandong Province to discuss important matters, and this matter was just done casually.
His real purpose of coming here is for Sinopec, one of the two oil giants, but now it is not Sinopec Group but a limited company.
Before the 1000s, the oil consumption of China was 0.31 tons for every 0.26 US dollars produced, while that of India was 0.16 tons, and that of the island countries was only half of ours, at only tons.
This shows that we are suffering huge losses in the oil industry, so we decided to avoid internal friction and unify management.
You should know that at that time not only the Ministry of Petroleum, but also the Chemical and Light Industry had its own oil refining, chemical and chemical fiber enterprises.
In addition, the oil-related industry was the most important economic pillar of the Rabbit at that time. The fiscal revenue in 81 was 1175 billion US dollars, and the petrochemical industry accounted for more than 120 billion US dollars.
In this way, in 1983, the leadership group organized 39 petrochemical enterprises across the country into two oil companies.
As of this year, Sinopec alone has completed a total investment of RMB 440 billion and achieved a total profit and tax of RMB 943 billion.
The two oil companies today are different from the North-South division of the river that many people are familiar with. They have their own functions.
Simply put, China Petroleum only manages oil fields, not refining and chemicals, and has a monopoly position in the upstream.
As for Sinopec, it only manages mid- and downstream oil refining and chemical companies.
It is precisely because of this that Luo Nianzhong looked for Sinopec instead of Sinopec.
Although Rabbit's oil reserves rank among the top ten in the world, due to its large population, the problem of oil shortage has been exposed in the past two years.
In the past, Rabbit was a major oil exporter, but in the past two years, it has exported very little crude oil. According to internal assessments, it will need to import crude oil within three to five years.
The judgment is very accurate. This milestone moment will come in 93, and because of the Far East system, this time will be advanced.
However, Luo Nianzhong happened to have a huge amount of crude oil reserves, so he wanted to promote the establishment of Asia Petrochemical and seek cooperation with Sinopec.
Where does crude oil come from? Do you think that goods shipped to the Far East are free?
Why can the Far East interest groups allow these products to enter the market at relatively affordable prices? Isn't it because this is a business with almost no cost?
When the goods arrived in the Far East, not only did Ivankov's interest group raise the price, but the money they paid for the goods did not come from their own pockets, but from crude oil.
Although the selling price is cheap, it doesn’t mean you don’t have to spend money.
Who has time to care about the Far East at this time? How much fuel does it cost to cruise at sea every day?
Don't go out to sea? Are you kidding? Ships from various countries come here to invade every day. Do we polar bears have no dignity left?
As a result, the Trans-Siberian Railway, which is connected to the east and west by polar bears, is almost becoming a freight railway exclusively for the Far East.
Truckloads of textiles and food were shipped to the West, and truckloads of crude oil came back.
As for the leaders of the relevant departments, who wouldn’t benefit? They even felt that the crude oil approval was too little, and the more approvals they got, the more benefits they would get.
The Far East Interest Group is happy to be a second-hand dealer, and Luo Nianzhong also likes this way of trading.
After the crude oil arrived in the Far East, in addition to being used by the refinery and chemical fiber plant set up by Luo Nianzhong there, most of it was stored.
As the amount of crude oil increases, it is necessary to solve the problem of sales.
At the city government's reception, the first general manager of Sinopec Chen Jinshan met the legendary tycoon Luo Nianzhong.
He had admired this legend for a long time, but missed the opportunity to meet him many times.
He did not go when Luo Nianzhong came to Shanghai. Later, when Luo Nianzhong went there again, he was transferred from the position of deputy in Shanghai to the top position of Huashihua.
Although I don’t know why this tycoon invited me, it’s worth it just to see his true face.
Both sides were reserved and Chen Jinshan asked for a lot of business experience, which made the scene look very funny.
A fifty-year-old head of a large enterprise asked a young man who looked to be in his twenties for advice on business.
Anyone who sees this kind of scene for the first time will certainly find it incredible, but those who understand the identity will not think so.
"Mr. Luo, I don't know why you invited me to Shandong Province this time. If you need anything, just let me know."
"Actually, it's nothing big. I just have a batch of crude oil and want to cooperate with Sinopec."
Crude oil? Chen Jinshan was surprised to hear this word, but he also felt it was acceptable.
He had some understanding of what kind of family the Luo family was. On the surface, they had no crude oil business and did not control any oil fields, but they did not think there was anything wrong with having crude oil.
"I wonder how Mr. Luo wants to cooperate?"
"We can provide both financial and technical assistance to oil refining, chemical industry and gas stations."
In terms of oil refining and chemical industry, whether it is SK Group or Rio Tinto, although their technology cannot be said to be the best in the world, they are all first-class.
This is still controlled by the Luo family. If we count the companies influenced by the Luo family, there will be even more, such as Husky Oil acquired by Li Bancheng, and the refinery jointly built by the Huang family of Temasek and BP in Temasek.
Not to mention the funding. Investing several billion dollars is no problem for the other party. These three words from Luo Nianzhong can allow him to raise hundreds of billions of dollars in funds in an instant.
However, what Chen Jinshan did not expect was the gas station business. There are not many families in China that own private cars. Why would the other party be interested in such a business?
Why did he fall in love with the gas station business? Whether it was petrochemicals or gas stations, making money was not the goal. What was important was that it would become a bargaining chip for him in future negotiations.
"I wonder how much crude oil reserves Luo Nianzhong has?"
"No less than 400 million barrels, and the number is still increasing."
This figure made Chen Jinshan a little stunned. According to the disclosure of the World Energy Economics Association held in Venezuela in 1989, by the year 2000, the world's crude oil consumption will increase from the current 1.2 million barrels per day to about million barrels.
This means that the crude oil in Luo Nianzhong can be supplied to the world for four to five days. Don't think that this number is small. In fact, it is already very large. 95% of the countries in the world cannot use up so much oil in a year.
Polar bears are now at their peak oil production, producing 500 million tons of crude oil a year.
Generally, the oil we talk about is light oil. One hundred million tons is about 7.2 million barrels. In the past two years, one twentieth of Polar Bear's crude oil production capacity has fallen into Luo Nianzhong's hands, so he must find a market for it.
Chen Jinshan fell into deep thought, considering the pros and cons.
Once the cooperation is completed, Sinopec will gain a lot, not to mention crude oil imports, which is already in Sinopec's plan. The arrival of funds can speed up Sinopec's industrial layout.
The most important thing is technology. Crude oil is a treasure, and refining is the treasure among treasures.
Crude oil is so complex that we still don’t know how many substances it is made of, so refining has become the most valuable part of crude oil, and this value is increasing with the passage of time.
Oil refining is actually very simple. First, it is pre-treated to remove impurities such as water and salt to avoid heat waste and increase costs, and then it is distilled.
When crude oil is heated, as the temperature continues to rise, the components contained in the crude oil will line up to become gas.
After condensation, these components flow out from the distillation pipeline and are divided into light oil, naphtha, kerosene, diesel and heavy oil from light to heavy.
The lightest light oil naphtha can be refined into high-octane gasoline. High octane number can be regarded as what we call 92 or 95 oil, which is the quality of the oil.
The higher the octane number, the safer it is.
Generally speaking, the refining rate of crude oil is around 40%, 10% for gasoline and 30% for diesel.
However, if the refining technology is advanced, 15% gasoline, 35% diesel and 15% liquefied gas can be extracted from the remaining oil residue.
Compared with those giants, many countries are stuck here.
These technologies are mastered by the giants, so their refining costs are very low.
These technologies are what Sinopec needs most now.
Another point is about CNC computers. As early as 1959, oil refineries began to use CNC computers.
These CNC engineering computers can analyze incoming and outgoing air, and sense and measure pressure, flow and temperature.
Computers can better determine processing units through calculations to increase profits and obtain the most products at the lowest cost.
By now, industrial control and refining have become inseparable and can basically be automated.
However, these professional industrial control systems are in the hands of large companies such as Honeykill and IBM, and ordinary companies cannot get them.
But Far East is different. They already have industrial control products, so it is not a big problem for them to design an automated control system for Sinopec. This is what Chen Jinshan has always dreamed of.
The disadvantages are very simple. This means that Rabbit's petrochemical industry is completely open to the Luo family, and the two sides will be inseparable in the future.
From Chen Jinshan's perspective, he agreed to cooperate, but he couldn't promise this.
"Mr. Luo, I need to ask my superiors for instructions, but as for me, I am very happy to facilitate this cooperation."
"Then I will wait for good news from Mr. Chen. I may have to stay here for a long time. Please feel free to contact me if you have any questions."
"certainly".
For such matters, Luo Nianzhong could have gone directly to the capital to discuss them, but that would have changed the nature of the situation.
So whether it was Bluestar or Sinopec, he followed a formal negotiation process.
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