To fill or not to fill? China’s oil reserve quandary
Six months after construction, China’s first strategic oil reserve tanks in coastal Ningbo stand empty as politicians face a Catch-22 that has thrown a key part of their energy security plan into limbo.
Three years ago China launched a strategy to offset its growing reliance on imported crude by building government-run storage facilities estimated at $1.4bn, a plan that coincided with the start of an oil price rally many analysts say has years left to run.
Beijing is slowly adjusting to the fact that prices may never return to below $40, but it remains reluctant to fill its new tanks for fear incremental purchases will strain global supplies and land China, again, with the blame for soaring prices.
( Full story here )
Three years ago China launched a strategy to offset its growing reliance on imported crude by building government-run storage facilities estimated at $1.4bn, a plan that coincided with the start of an oil price rally many analysts say has years left to run.
Beijing is slowly adjusting to the fact that prices may never return to below $40, but it remains reluctant to fill its new tanks for fear incremental purchases will strain global supplies and land China, again, with the blame for soaring prices.
( Full story here )
posted by Oil Shock at 3/06/2006 10:01:00 PM
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