China, which relies on imports for 50% of its oil needs, has established a system of national oil reserve centers, modeled on the US Strategic Reserves [2]. Approved by the State Council in 2004, the four strategic reserve centers in the coastal areas of Zhenhai, Zhoushan, Huangdao and Dalian came on line in December. Together they hold reserves equivalent to 10 days of the nation's oil consumption. (Asia Online [3], Jan. 7) India announced this month it will begin construction on strategic storage centers this year as well, with the first site to be at Visakhapatnam, Andhra Pradesh. (Times of India [4], Jan. 14)
The US relies on imports for 60% of its oil. (House Select Committee on Energy Independence and Global Warming [5]) The US Strategic Reserves, in deep underground storage caverns built in salt domes along the Texas and Louisiana Gulf Coast, currently hold 727 million barrels, or enough for 56 days. (Energy Department [6] fact page)
See our last posts on China [7] and India [8].
See also our special feature, "Oil Shock Redux [9]."
