America 1919-Chapter 461 - 178. Oil Transportation Pipeline (A ten-thousand-word chapter, repaying the debt~~)_4

The group finished their visit to the Surf Hotel and proceeded to the Ritz Hotel to start discussing important matters.

"Everyone, I believe you are all aware of the reason I’ve asked you to come this time. Our respective companies have nearly completed construction in the three major oil fields. Next up is the issue of transportation. Our Pandora Oil Company cannot compare with your companies, but there is one matter that concerns the interests of us all!" Stay tuned with novelbuddy

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Edward Doheny smiled and said, "Donnie, you’re talking about the transportation issue, right? If you don’t mind, I can integrate Pandora Oil’s part in Elk Hills into our Pan American Petroleum transportation network!"

Hearing Edward Doheny’s stance, the other three displayed amused expressions and simultaneously sneered in their hearts: crafty old fox!

The four of them had not arrived in Atlantic City at the same time. Although Eduardo Doheny was the farthest from Atlantic City, he was the first to arrive. Before they came, Eduardo Doheny must have had discussions with Donnie.

However, after thinking it over, the three of them didn’t see anything wrong with it. After all, incorporating Pandora Oil into their own transportation network wouldn’t be a loss since Pandora Oil would compensate them based on its transportation volume!

After the Sinclair Oil incident, their relationship with Donnie had improved, although no one would say it was particularly great.

Now, their primary reason for acting this way was to avoid trouble, as no one knew what dangers could arise for their companies if they upset Donnie.

Sinclair Oil was a lesson from the past!

So, after only brief consideration, the three decided to adopt Edward Doheny’s suggestion!

"I am very grateful for the support from the three of you, but the reason I’ve invited everyone here was to seek a permanent solution to this trouble," Donnie said composedly.

But to the four of them, this statement was like a thunderclap. James O’Neal and the other two looked toward Eduardo Doheny, who subtly shook his head, indicating that he too had not expected Donnie to bring up this idea.

"Donnie, are you suggesting that we build our own oil transportation pipeline?" Robert Stewart asked tentatively.

Donnie nodded: "Exactly. When you were awarded the contracts for the oil fields, you had already agreed to the demands of Congress. In that case, it would be better if our four companies—Pandora Oil, Pan American Petroleum, Sinclair Oil, and Bowei Petroleum—joined forces to construct this transportation pipeline."

Although in the short term, constructing our own transportation pipeline might seem costlier than using the Rockefeller Family’s pipeline, you all must understand that the oil reserves in the three major fields are abundant. If nothing unexpected occurs, they could provide us with a continuous supply of liquid gold for decades, or even a century, to come.

From this perspective, if we can build our own pipeline network, it would certainly be a worthwhile investment!"

Bowei Petroleum is the new company established by James O’Neal’s Prestley Petroleum and Robert Stewart’s Indiana Standard Oil Company in the Bowei area oil fields.

Donnie’s suggestion plunged the four men into a brief silence until Eduardo Doheny eventually spoke first: "Donnie, we did consider this at the outset, but it’s not that simple!"

Donnie said with a smile, "Go on, I’m listening!"

Eduardo Doheny continued: "We naturally understand that building our own transportation pipeline is more cost-effective in the long term."

The transportation of oil can be divided into land, sea, and pipeline. The costs of these transportation methods are highest for land, followed by sea, and least for pipeline."

"But the problem now is that the Rockefeller Family monopolizes the entire nation’s pipeline network. If we were to construct a new oil transportation pipeline at this time, it would inevitably affect the Rockefeller Family’s monopoly position, and at that time..."

The implication was clear, though he did not finish his sentence.

It’s the same principle that Donnie had applied earlier not to take over Sinclair Oil; the Rockefellers would never allow a pipeline that could threaten their status.

The few people in the room, apart from Donnie... Actually, Donnie’s Pandora Oil also had ties to the Rockefeller family, given that Gulf Oil held shares from the Rockefellers!

Under these circumstances, none of them wanted to offend the Rockefeller family.

After all, in the American oil industry, the Rockefellers were like a king seated on his throne—no one dared to challenge the king’s authority in this domain.

"Exactly!" Robert Stewart also said: "Donnie, even if we set aside the influence of the Rockefeller family, we also need to consider the construction cost of the oil transportation pipeline. Building such a pipeline would require at least 14 million US dollars—not a small sum!"

The construction of an oil pipeline depends on various factors such as topography, climate, environment, raw materials, and labor, leading to varying cost estimates. Prices can differ with time and region.