HOW FAR WILL THE DRAGON SWIM? OR HOW LONG CAN HE SWIM IN A BIG POND?
China has about 930 warships in the China Seas though many are really only suited for the China Seas. But China's immediate national goal is to seize its neighbors out islands and declare the China Seas territorial waters. China has to import over half of its oil. If the China Seas break out into naval warfare one complication that China's large conventionally powered fleet will face is a shortage of fuels and lubricants That is why our analyst are concerned with this story from Bloomberg. China needs an oil reserve. But is the present rush a try at a strategic naval fuel reserve?
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| Official U.S. Navy Photo by Petty Officer 1/C Tiffini M Jones |
China Seen Boosting Emergency Oil-Storage Capacity, IEA Says
China, the world’s second-biggest crude consumer, will add 245 million barrels of capacity in the second phase of its emergency stockpile plan, the Paris-based IEA said in its Medium-Term Oil Market Report released today. That’s up 45 percent from the IEA’s original estimate of 169 million barrels. Completion may be delayed to 2015, according to the agency, which originally forecast the project would be finished by the end of this year.
China, which buys about half its crude from overseas, is building emergency oil reserves equivalent to 100 days of net imports before 2020 in three phases to lessen the risk of supply disruptions, China Petrochemical Corp., the nation’s top oil refiner, said in September 2009, citing a plan approved by the State Council. While high crude costs and construction delays have slowed purchases so far, many regional administrations have expressed interest in holding supplies, the IEA said. Click on this link for the full story: http://www.bloomberg.com/news/2013-05-14/china-seen-boosting-emergency-oil-storage-capacity-iea-says.html
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