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"Edmund, don't you think even if your ranch has such an oil and gas field, the asking price is still a bit too high?"

Uncle Andy was still bargaining with Edmund, but at this time Li Yifan could no longer help it. He secretly poked Andy from behind.

Andy turned around and glanced at him, then turned around and said to Edmund.

"You are considering it, and we will also discuss it and continue to talk to you tomorrow."

Edmund could only agree. Although he really hoped that the other party could take over the ranch quickly, he couldn't hurry now, so he drove the two to Calgary's city, where they had already booked the hotel.

After entering the hotel room, Li Yifan couldn't help but say to Andy.

"Uncle Second, I think this price is pretty good. After all, there are such a large ranch, so many cattle, and an oil and gas field. I think this deal is quite cost-effective?"

In fact, Li Yifan is not in a hurry. Ranches, dairy cows, milk powder factories are not included. Just such a large oil and gas field, even in China, you may not be able to get it if you want to spend the same value of RMB, not to mention that the current price can be said to be extremely cheap.

A few years later, not counting as a ranch, this oil and gas field alone is absolutely worth the fare.

But unexpectedly, Uncle Andy smiled and explained to him after looking at Li Yifan.

"Yifan, don't worry. Actually, this matter is not as simple as you think. Of course I know the value of that oil and gas field, but you have to pay attention that this is Canada, and it is Alberta, which has relatively rich oil and gas resources..."

Then Andy began to explain to Li Yifan. After listening to Uncle Andy's explanation, Li Yifan learned why he thought the oil and gas field was expensive.

In fact, as early as the 1950s and 1960s, the Canadian Ministry of Land and Resources discovered that Alberta had abundant oil sand resources, but international oil prices were too cheap at that time. The cost price for refining oil sands here was much higher than that of importing oil from the Middle East, which was very unprofitable.

Therefore, the oil sand resources in Alberta have not been developed on a large scale. This situation is known that after the oil crisis in the 1970s, because oil prices have remained high, the Canadian government began to think of refining gasoline from oil sands.

However, oil prices continued to rise and fall later, and did not break through the critical line of the cost of oil sand refining 35 US dollars, so this development plan was put on hold.

It was not until the 1990s that the Canadian government began to encourage major oil companies to develop Alberta's oil sand resources after a large number of preferential policies established in 1996. It was not only inclined in policies, but also led by the government to make large investments.

However, unexpectedly, the Asian financial crisis broke out in 1998 and spread to North America in 1999. The US economy suffered a heavy blow, and Canada's economy, which has the United States as its largest trading partner, also suffered a drag.

Now the international crude oil price has fallen to about twenty US dollars per barrel. In this way, refining gasoline from the oil sands is a loss-making transaction.

So these oil sand refining companies in Alberta have had a hard time doing, and many of them have even stopped production.

The main thing to extract asphalt from the oil sands and then extract gasoline from the asphalt. This process requires a large amount of fuel, and the most suitable fuel is natural gas.

But now these oil sand refining companies have stopped production, so the natural gas market has also been dragged down. Now in Canada, especially in Alberta, which produces natural gas, it can be said that such natural gas fields are everywhere, and many of them are in a difficult situation.

Because the consumption of natural gas has very special characteristics, such as the consumption of natural gas is the best, and the market is of course winter, but in summer, the natural gas market is not very good.

After all, Canada does not have as large a population base as China. In China, not to mention using natural gas to keep warm in winter, just using natural gas to cook every day can make a medium-sized oil and gas field eat a lot.

Natural gas is not like oil. After it is exploited, it can be filled and stored because it needs to be stored at extremely low or even close to absolute zero. Therefore, the storage and transportation of natural gas are a very big problem.

Therefore, ordinary oil and gas fields are mined according to the market demand. When the market demand is large, the production capacity will be increased, and when the market demand is small, the production will be reduced. Generally, they will not be stored after mining. After all, this requires a lot of expenses.

Moreover, the extracted natural gas is directly sent to the customer terminal through pipelines.

In this way, the transaction of mining natural gas is actually not very profitable in Canada, especially Alberta, not to mention that the price of international crude oil is so low now?

For example, the oil and gas field in Edmund seems to have a very large reserve at first glance, but if you want to actually mine this oil and gas field, it will take a lot of effort.

First of all, you need to increase investment in the mining site and build more mining wells. Then you also need to build an oil pipeline to connect your pipeline directly to the customer terminal that needs to use natural gas. The most important point is that you need to find the right customer terminal.

If the international oil price is now higher than 35 US dollars and all the oil sand refineries in Edmonton are under construction, it would be fine, but those factories have stopped working now. Who else can you sell the natural gas you mined?

The most important point is that this is Canada. If you want to build a gas pipeline and reorganize the mining area, the amount of funds you need to invest is not a small amount. After all, Canada's labor costs are so high.

These days, domestic oil workers only earn a few thousand yuan a month, which is considered a high salary. However, even if these oil workers here only know a little bit of technology, if you don’t give them more than 100,000 Canadian dollars a year, they won’t give them to you.

Not to mention oil workers, even those laborers needed to build pipelines, if you don’t give them 50,000 to 60,000 Canadian dollars a year, they can sue you in court.

What's more, after such a gas pipeline is completed, the annual maintenance cost is not a small amount.

So with the current uncertainty of international oil prices, Edmund's oil and gas field is really not very valuable.

"Yifan, you have to know that this is the western part of Canada. The population of the entire Alberta is only more than three million, so the labor cost here is quite expensive. The oil sand resources here were so rich, but why did it wait until the previous two years to develop on a large scale? It is because the labor cost is too expensive, so the government dare not start this project easily, let alone your small oil and gas field? So I advise you not to worry first, Edmund's ranch is indeed good, but at least it is not worth the price now."

After listening to Andy's explanation, Li Yifan felt that way.

It is true that I have more experience in the next ten years than Uncle Andy, but compared with Uncle Andy, the local communication, I am indeed much weaker in this regard.

From a long-term perspective, it is indeed very cost-effective to spend 100 million US dollars to buy this ranch at this time, but from the current perspective, if you spend 100 million US dollars to buy such a ranch, you may be regarded as a sucker.

"If you value this natural gas resource more, there are actually many pastures that meet such conditions in Alberta. In fact, many of the pastures here have rich natural gas resources under the land. Many of the pastures near Edmonton are to raise cattle and supply gas to the oil sand refinery in Edmonton. If you are really interested, we can also go there to see. After all, the conditions for the pastures are much better than this pasture, and they all have built gas pipelines and fixed customer terminals."

Uncle Andy's words made Li Yifan a little moved, but he quickly strengthened his belief that the conditions of those ranches may be better than the Red Deer River ranches, but the prices will definitely be much more expensive. The situation here, depending on Edmund's attitude today, should be discussed.

It’s a pity, uncle, you don’t know. The oil and gas field now looks worthless, but it won’t take a few years. If you take a look in five years, do you have to take a look?

At that time, the giants of several oil companies in China were all trying to squeeze into Canada and control those oil sand companies. By then, they still had to worry that the natural gas would not be sold?

At that time, it seemed that in just a few years, the production of crude oil extracted from oil sands in Alberta increased from one million barrels to two and four million barrels.

Such a significant increase in output will definitely drive the demand for natural gas. At that time, I am afraid there is no need to take milk powder. Just relying on this natural gas, you can make back your investment.

However, how could I explain these future situations clearly to Uncle Andy? So although I was very anxious, I could only wait for Uncle Andy to negotiate with Edmund tomorrow.

The next day Edmund rushed over from the ranch.

"Mr. Edmund, you have seen it too. We are actually very sincere. If you are sincere, then please give in. Do you think the price of 90 million is appropriate?"
Chapter completed!