China Begins Filling Its Strategic Oil Reserve- IHT

[hatrack]

BEIJING China has started filling the tanks of a strategic oil reserve meant to insulate the country from disruptions in supplies, an official said Friday. The tanks in Zhenhai, a city in the coastal province of Zhejiang, south of Shanghai, are being filled with domestically produced oil, said Xu Dingming, deputy director of the Cabinet's State Energy Office.

Xu didn't say how much oil had been pumped into the tanks or when the process was to be completed. "All of the construction work (in Zhenhai) has been completed," Xu told Dow Jones Newswires at an energy conference. "Since the storage facility has been built, it must be put into operation as soon as possible."

The Zhenhai facility, with 16 massive oil tanks, is one of four planned sites for petroleum reserves. The others are to be built next year and in 2008.

Previous reports said Beijing plans to stockpile up to 100 million barrels of petroleum, or the equivalent of almost a month's national consumption.

EDIT

http://www.iht.com/articles/ap/2006/10/06/business/AS_FIN_ECO_China_Oil_Reserve.php

[tonkatoy57]

1. I get the feeling I should be worried about this

Do the Chinese know something I don't or are they just planning ahead for a heavey winter?

[teryang]

2. Well....US inventories sure look suspicious

When it seems fair to infer that US energy companies had the inside track on the administrations energy plan aka attack Iraq.

[brokensymmetry]

3. Lots of really smart people in China.

Maybe they know a little something called "peak oil".

Maybe they've noticed that the second largest field - Cantarell -
has peaked and is in sharp decline. Perhaps rumors that the big
Saudi field - Gwahar - are peaking are valid. And maybe - just
maybe - the theory that we're on an undulating plateau for a few
years, one that will result in wild price swings - is correct.

If that's true, things are likely to get nasty around about
2008, and worse still be 2012.

But what the hey. We've gotta focus on Anna Nicole, right?

[FormerDem06]

4. Could be saving up for that little war to reclaim Taiwan

I get the feeling it's coming soon.

[enigma000]

6. Not before the Olympics

Any war would lead to a Olympic boycott. This might have something to do with North Korea.

[Submariner]

5. Oil storage is a big deal in SE Asia

I was just invloved in a project where they are excavating an underground bunker about the size of 3 football astrodomes in Jurong Island (offshore of Singapore). They would rather be safe than sorry if an oil shortage strikes.

[phantom power]

7. Buying while prices are low... so crazy it just might work!

Meanwhile, the wizards in charge of our national security have stopped buying oil for strategic reserve. Presumably because to help keep prices as low as possible thru Novmber 8, or maybe just because it might make their oil-barron cronies 1% less wealthy to buy low. Or both.

[Dead_Parrot]

8. I'll have $50 on "both", please. nt

[Javaman]

9. They know something, we don't know or something moron* ain't sayin*.nt