Black Gold
"Historic Deal Between the Republic of Fictions and the State of Ascelonia..."
"Historic Deal Between the Republic of Fictions and the State of Ascelonia..."
(Picture of a modern Fictional oil driller)
Throughout the centuries civilizations have searched for various items of value. There was meat in Prehistoric times, then copper, followed by bronze, soon it was iron, after that came gold, and so forth. What are we searching for in Modern Times? Black Gold, of course. Most have heard this term, but for the few who haven't, it should be clarified. Black Gold is another term for petroleum/crude oil, which has gained enormous value ever since the 19th century when the process of refining kerosene into petroleum began. The value of oil has increased largely, in part, due to the invention of the internal combustion engine. It's value exploded in the 20th century, but fell into decline when nations began discovering numerous petroleum reserves around the world and started investing heavily in alternative fuels and alternative energy. However, petroleum is still vital for motor vehicles (Under normal circumstances, one should not fuel their car with Uranium-235.).
Thus, Black Gold is still in demand around the world and Ascelonia is still no exception. Demands have risen rapidly and are exceeding 50 million barrels of oil per day [2000 Census] skyrocketing the price of oil at the average Ascelonian gas station to over ten dollars per gallon. Due to the excessive demands of the Ascelonian people, the government was forced to buy more oil and release much of it's strategic reserve to the general public. However, the demand for more oil continues to rise and not decrease as more and more Ascelonians buy motor vehicles. In accordance to the growing demand for petroleum and petroleum-based products, the Ascelonian Foreign Ministry has consulted numerous nations in a question for cheap and inexpensive oil. Today, their quest has been concluded.
After years of importing oil from various small countries with varying costs (averaging $38 per barrel) and using synthetic fuels, Ascelonia can now import solid, crude petroleum. In a historic deal with the Republic of Fictions. Sekh Kaari Industries has agreed to provide a whopping Ascelonia 50 million barrels of crude oil per day. While many within the Ascelonian Parliament speculate that Fictions may not be able to provide such an abundant amount of petroleum, it remains clear to the leaders of Ascelonia that their need for oil goes beyond their current imports and the Republic of Fictions has taken up the challenge.
Major issues about importing oil include:
-The sheer cost of petroleum, which varies from $25 to $100 per barrel
Fictions has offered a rate of $23 per barrel. An additional $1 per barrel will be added for the transportation and insurance costs of shipping the oil directly to Ascelonian ports.
-Reliability of the provider
Fictions has an excellent record for trading and exporting products.
-Stability of the providing country
Fictions is a neutral country with a solid government. Ascelonia intends to build upon current relations with Fictions.
-Environmental hazards
Although oil has been proven to have detrimental effects upon the environment, there are few other viable alternatives for petroleum in the creation of various petroleum-based products, massive amounts of energy [Although nuclear and hydro power is used extensively throughout Ascelonia], and fueling motor vehicles/naval vessles/aircraft. A proposed alternative to oil is the creation of a hydrogen economy (however, implementation of such an economy would be expensive. The technology is also currently unavailable or not up to par for the task of providing for 2.5 billion consumers).
A total of 50 million barrels of oil will be purchased daily by the Ascelonian Government from Sekh Kaari Industries. The sheer volume of the purchase and the amount of tankers required to transport it to Ascelonia is rather appalling, but the Republic of Fictions and Sekh Kaari Industries are more than up to the challenge. The total cost of purchasing the oil is 1.2 billion dollars daily or 437.1 billion dollars per year. However, Ascelonian officials see this as a small price to pay for securing a constant and reliable supply of oil from the Republic of Fictions. The Fictional government and Sekh Kaari Industries should rejoice as more revenue flows into their coffers to strengthen and modernize their country.
[By David Rosenfeld]
[Edited by Saul Dreyfuss]