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China increase its oil stocks January 15, 2009

Posted by mytruthaboutoil in Geostrategy, Oil (general).
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China wants to take over the world economy. A double digit growth rate for about a decade, more than a billion inhabitants,… China has indeed everything to become the 21st century new world economic giant… Everything except maybe enough domestic oil to satisfy its insatiable hunger for growth.
China produces indeed very little oil (less than 4 million barrels a day) and is therefore dependent on other countries’. In order to face this situation China has worked for many years on diversifying its import routes.
This vital need for oil and other types of raw materials explain why China is so rapidly and aggressively expanding its influence in many parts of Africa, such as Nigeria, Guinea or Sudan. China needs African oil to secure its oil import.
But securing import routes is not enough. And with a barrel around $45, China is also considerably increasing its oil stocks and building huge reserves of petroleum in order to be able to face a potential cut of import.
Benefiting from the current low prices of oil, China has almost completed a first wave of storage facilities capable of storing no less than 102 million barrels of crude oil and is planning a second wave of bases that could store 170 million additional barrels.
Even if these figures seem out of proportion, these 272 million barrels would only equal about a month worth of oil if all imports to China were cut off. China’s objective is to cope with losing all imports for 90 days.

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