Chancellor Mustapha al-Makhtoum
OIL PRODUCTION INCREASES
Qat Plantation, January 6, 4879: After a meeting today at the Qat plantation for agricultural product producers on expanding exports, Chancellor Mustapha al-Makhtoum responded to questions about possible economic repercussions from AldeGas producing oil in large quantities. The Chancellor
responded:
Need to understand three things. First, this is how we reached the level of prosperity we have such as
it is. When some time ago the Free Radical government began to move away from serious
socialism to a mixed economy of public and private ownership, it was by oil sales we produced the
tax money to finance the loans and investments to get small and large businesses on their feet so we
could have a thriving middle class and successful businesses. Have to understand under the socialists
the tax rates were very high to the point of being business prohibitive and confiscatory; only now are
we getting them down to reasonable. So upshot is we welcome the people of Aldegar to the opportunity
for a better life by selling the same resource we did, petroleum.
Second, our predecessors took some precautions we still maintain. Selling our oil could easily have
resulted in a small oligarchy totally dependent on foreign investors who took ownership of our oil
reserves leaving our citizens no better off but without our most valuable resource. The Sovereign
People own the oil reserves. Acting through Petroleum Development of Badara (PDB), an
unfortunate but venerable name. PDB leases the right to extract and sell oil for licensing fees and
royalties but does not sell the oil reserves. The growth has been slower than if we sold it all off
immediately but it has been slow and steady. We have converted to a mixed economy now more
privately owned than publicly while maintaining the safety net the socialists wisely put in place. Yes
we do have an oligarchy but our citizens are protected and have ensured income, shelter, food, energy and
health care. They have not been sacrificed.
Third, the PDB can adjust its production so that an oil glut is unlikely. It regularly confers with
other oil and gas producers of Jumhuriat al-Badara most notably Qat Oil services. And usually our
adjustments produce the desired result. We certainly regret that there has been no conferring between
oil producing nations in recent times. Records indicate there was once an organization that set oil prices.
We could not get the Majatran Economic Association to take any interest in dealing with overproduction at all.
But things can change and maybe they will.
