NationStates Jolt Archive


[Earth II] Downfall of the Oil Powers

[NS]Kreynoria
20-12-2005, 18:49
Imperial News Network Official Broadcast


Until recently, our Divine Empire of Kreynoria has been completely devoid of oil. For many years we have relied on foreign imports, mainly from the nation of Elephantum. Yet when the bubonic plague struck their lands and they halted all trade and travel, our nation endured a devastating energy crisis. Since then, we have built a thermal depolymerization plant, cut down oil usage, and brought alternative energy sources into play.

However, the newly formed, government owned Imperial Oil Corporation has made public that petroleum is now being drilled in a site offshore of East Timor. This new oilfield will be enough to supply the Empire with a surplus to export.

Most surprising however, is Imperial Oil's export policy. All petroleum is being sold at 1% above its production costs, in an attempt to undercut the world's major oil-exporting nations. This is possible because of high government funding. More news later...
Cotland
20-12-2005, 19:22
"What the HELL are those bastards trying to pull?!" Commerce Minister Kristensen (H) asked when presented with the news from Kreynoria.

"Apparently trying to get our oilmarkets." the chief aide answered. "However, most of our oil go to our own use. The military is a huge buyer, and the petrolium-firms we are major stockholders in get subsidised. That, combined with the total lack of power-plants using oil here in the country don't affect us as much as it affects other nations."

"We still can't allow them to do this unpunished!" the Minister cried out, still enraged by the news. The woman was fourty-three years old, and responsible for the commerce of the Kingdom.

Oil used to be a big export commodity for Norway, but since the introduction of alternate sources of energy, mainly hydro-electric dams, wind power and seabased powerstations designed to get energy from waves for power needs and teh development of cheaper hydrogen gas for civilian vehicles, as well as new government-issued decrees on the usage of fuel per mil (10 kms = 1 mil) had lead to less oil being exported. However, that didn't mean that oil wasn't important. The military still used a lot of oil, which it got for $36 per oildrum, 15 % below the regular price. That was primarly because they bought so much, as the oil was turned into either Diesel-2, which was used for the vehicles in the Army and the Navys ships, and JP-5, which was used for aircraft and helicopters in all services. IE the Norwegian military was dependent on the oil still. Fortunately they had billions, possibly even trillions of drums left under the ocean floor. Still, if the Kreynorians got customers that the Norwegians needed, it was going to be potentially devestating.

"We will. We should condemn the attempts of undercutting the Norwegian oil, and answer by introducing a penal toll on all Kreynorian goods. A 25 percent toll should do it."

"Write it up so I can present it on Friday."

The aide nodded and exited. He would have to work fast, as it was already a Wednesday, and the Minister needed it so she could present it for the King and the Cabinet on Friday during the weekly meeting at the Royal Palace.
Bjornoya
20-12-2005, 22:17
Visara Corporation CEO Wilhelm Kaufmann sat in his office high above the Bjornoyan capitol of Esthar. One of Wilhelm's advisors placed a copy of the Bjornoyan Times, his own nation-wide monopoly newspaper chain on his desk. It was ironic that his own company could publish information that he did not know about yet. He looked at the recent economical affairs. Wilhelm went through the pages, stopping briefly to observe how many billions of dollars he had made that day in the stock market alone.

Near the back of the report was an announcement: Kreynoria had established a single oil-drilling site off the coast of East Timor. Wilhelm looked out at the holographic mini-map in his office of the dozen offshore-drilling sites and 7 planned drilling sites within Bjornoya's Arctic Ocean claims.

Wilhelm flipped the page and read the funnies.
N Germania
21-12-2005, 09:12
CEO Josef Fegelein of the Kinetisch Corporation took a look at the report filed by the Kreynorians. An aide stood nearby.

[Translated from German]

CEO Josef Fegelein: "Trying to undermine us I see. Well, they won't get very far once the Eurasian Line is completed. We'll be able to drill, refine, and ship oil at a third of the cost they require. Little to be concerned. Not to mention we just put stocks up for sale. All the government needs to do is extend its trading network. Der Führer will know what to do. If not, he will ask my advice."
Bjornoya
21-12-2005, 09:59
Wilhelm twiddled his thumbs and brought his bright eyes to the telephone in front of him. He thought momentarily, then laughed. He had enough free capital to work with, why the hell not?

He picked up the telephone to contact the CEO of Imperial Oil Corporation, and offered to purchase every available barrel of oil being sold at the cheaper price. The pre-purchased barrels would be delivered to the buyers within a few days or weeks, then after every barrel being sold from East Timor would be going to Bjornoya.
Layarteb
21-12-2005, 16:38
The Empire has reduced its reliance on oil as a source of power to a mere 10% of our powerplant base. In addition, most of the oil produced by the Empire is used internally or sold to close allies. The decision of the Kreynorians will not affect the Empire nor shall it be seen to any negative or ill effect by the Empire. As usual, the Empire and the Kreynorians will have a neutral stance on this.

The Emperor
[NS]Kreynoria
21-12-2005, 21:01
The CEO immediately accepted this deal with the Bjornoyans. Furthermore, the Imperial Oil Corporation similarly lowered prices on the three offshore oil drilling platforms that had been given to the Empire by Bjornoya in exchange for Zanzibar.


In the meantime, the Kreynorian government issued a statement defending their rights to sell commodities at whatever price they wished and advertising the cheap oil. Additionally, the tariff on Cottish goods was raised to 25% as well.
Bjornoya
21-12-2005, 23:29
Visara Co. CEO Wilhelm Kaufmann made another call to the CEO of Imperial Oil Corporation to purchase the remaining oil being drilled at the Arctic sites.
[NS]Kreynoria
22-12-2005, 21:43
This deal was confirmed as well.
Teh ninjas
23-12-2005, 01:20
All oil used in the Ninjanian colonies are from our territories. We will continue the use of our own oil.
Emperor Alec Takenski
Bjornoya
27-12-2005, 06:23
Within a month every barrel of oil being shipped from Kreynoria by Imperial Oil Corporation was being shipped to Esthar. All that needed to be done now was resale.

As a minor oil-exporting nation, Bjornoya had as much to lose from the Kreynorian move as some of the major exporters. Wilhelm saw the threat and had it dealt with appropriatelly. Within a month of the move Visara had monopolized oil exports from Kreynoria. But that was just the beggining, as soon as the oil was shipped into Esthar it was immediatelly resold and transported to established Bjornoyan clients around the world. Visara purchased the oil cheap, and was re-selling it at a higher price a little below the 'normal' price bringing a profit the tune of millions of dollars. The initial profits paid the transportation costs, but as time went by the process was simplified and an astounding profit was made by Visara Corporation.
Pantheaa
27-12-2005, 07:20
From: The Pantheaan Confederacy
To: Kreynoria

We are pleased to see Kreynoria's prices, they are reasonable and are well suited to iur economic problems. We of the Panthean Confederacy are willing to buy Kreynoria oil.

But if VCO is indeed buying out your oil fields, then we choose instead to continue using our own oil
[NS]Kreynoria
29-12-2005, 00:24
The Imperial Oil Corporation has recently bought control of the Empire's thermal depolymerization plant, which converts ordinary garbage into water and petroleum products. This oil is now being offered at 1% above its production cost to the Pantheaan Confederacy. Should the Confederacy refuse, the petroleum shall be offered to any nation.