Global strategic petroleum reserves
Global strategic petroleum reserves ("GSPR") refer to crude oil inventories (or stockpiles) held by the government of a particular country, as well as private industry, for the purpose of providing economic and
national securityduring an energy crisis. According to the United States Energy Information Administration, approximately convert|4.1|Goilbbl|m3 of oil are held in strategic reserves, of which 1.4 billion is government-controlled. The remainder is held by private industry. At the moment the US Strategic Petroleum Reserveis one of the largest strategic reserves, with much of the remainder held by the other 26 members of the International Energy Agency. [cite news|title= Fact Sheet on IEA Oil Stocks and Emergency Response Potential |publisher= International Energy Agency|date= 2004-01-01|url=http://www.iea.org/textbase/papers/2004/factsheetcover.pdf] Recently, other non-IEA countries have begun creating their own strategic petroleum reserves, with China being the largest of these new reserves.
International Energy Agency reserves
According to a March 2001 agreement, all 26 members of the
International Energy Agencymust have a strategic petroleum reserve equal to 90 days of oil imports for their respective country. [http://www.iea.org/Textbase/work/2002/beijing/KUOLT2.PDF] [ [http://www.agiweb.org/gap/legis106/reauthspr.html Reauthorization of the Energy Policy & Conservation Act ] ] Only net-exporter members of the IEA are exempt from the reserve requirement. The exempt countries are Canada, Denmark, Norway, and the United Kingdom. However, Denmark and the UK have both recently created strategic reserves due to their requirements as European Unionmembers.
Emergency oil sharing agreements
In addition to maintaining a domestic stockpile of petroleum, several countries also have agreements to share their stockpiles in the event of an emergency.
The Japan, New Zealand and South Korea agreement
In mid-2007 Japan announced a program to share its strategic reserve with other countries in its region. Negotiations are currently underway with New Zealand on an emergency oil-sharing program whereby Japan would make available for purchase its strategic reserves. In an emergency New Zealand would pay the market price plus negotiated option fees for the amount of oil previously held for them by Japan. [http://www.rigzone.com/news/article.asp?a_id=49325 RIGZONE - Article Not Found ] ]
South Korea and Japan have also agreed to share their oil reserves in case of an emergency. [ [http://www.iht.com/articles/ap/2007/06/18/business/AS-FIN-SKorea-Japan-Oil.php South Korea, Japan agree to share oil reserves - International Herald Tribune ] ]
The United States and Israel agreement
According to the 1975 Second Sinai withdrawal document signed by the United States and Israel, in an emergency the U.S. is obligated to make oil available for sale to Israel for up to 5 years. [ [http://www.heritage.org/Research/MiddleEast/bg76.cfm The Iranian Oil Crisis ] ]
The France, Germany, and Italy agreement
South Africahas an SPR. It is managed by PetroSAand the primary facility is the Saldanha Bayoil storage facility, which is a major transit point for oil shipping. [ [http://www.southafrica.info/doing_business/economy/key_sectors/energy.htm South Africa's energy industry - SouthAfrica.info ] ] Saldanha Bay's six in-ground concrete storage tanks give the facility a storage capacity of 45 million barrels. [http://fred.csir.co.za/www/sff/oil.htm] Malawiis considering creating a 21-day reserve of fuel, which is an expansion from the current five day reserve. The government has begun planning for storage facilities in the provinces of Chipokaand Mchinjias well as Kamuzu International Airport. [ [http://www.nyasatimes.com/index.php?news=1915 Nyasa Times - Malawi breaking news, sports, showbiz, jobs, business and social networking - Malawi to increase fuel storage ] ] Kenyais setting up a Strategic Fuel Reserve, similar to that of cereals. The strategic stocks would be procured by the National Oil Corporation of Kenyaand stored by the Kenya Pipeline CompanyLimited [http://allafrica.com/stories/200804281577.html] .
In 2007 China announced an expansion of their crude reserves into a two part system. Chinese reserves would consist of a government-controlled strategic reserve complemented by mandated commercial reserves. [http://www.chinanews.cn//news/2007-07-19/37721.html] This new joint government/enterprise strategic reserve plan is the followup to a March 2007 announcement on the construction of a second strategic reserve with an additional 209.44 million barrels. [cite news|title= China to fill its 3rd strategic oil reserve |publisher= Times of India|date=
China's reserve structure
*Government Reserves; 101.9 million barrel strategic reserve
**Central government, National Development and Reform Commission(NDRC) [zh icon [http://www.chinadaily.com.cn/english/doc/2005-06/10/content_450449.htm China to have strategic oil reserve soon ] ]
Dalian, Liaoning Province. Approximate planned capacity 19 million barrels (3,000,000 m³), planned completion 2008.
Qingdao, Shandong Province. Approximate planned capacity 19 million barrels (3,000,000 m³), planned completion 2008.
Zhenhai, Zhejiang Province. 52 storage tanks with a capacity of 33 million barrels (5,200,000 m³), filled as of December 2007. [ [http://www.gulfnews.com/business/Oil_and_Gas/10125763.html Gulfnews: China to fill Aoshan tanks with Mideast oil by June ] ] [ [http://www.forbes.com/markets/feeds/afx/2007/01/18/afx3338677.html China's Q1 2007 crude oil demand unchanged at 7.12 mln bpd - IEA - Forbes.com ] ] [cite news|title= Official: China starts filling strategic oil reserve |publisher=Associated Press |date= 2006-10-06|url=http://www.iht.com/articles/ap/2006/10/06/business/AS_FIN_ECO_China_Oil_Reserve.php]
Zhoushan, Zhejiang Province. Approximate planned capacity 33 million barrels (5,200,000 m³), convert|7.6|Moilbbl|m3 filled as of June 2007. [cite news|title= China and Saudi Arabia: interesting SPR team up? |publisher= Marketwatch|date= 2006-03-23|url=http://www.marketwatch.com/News/Story/Story.aspx?guid=%7BBDDC6EA6-C0E8-4F33-9B51-28314C17EDEC%7D&siteid=mktw&dist]
**Oil reserve base controlled by local governments
Guangdong Provincehas begun plans for an expanded reserve, with two separate storage facilities. Their current reserve is equal to 20 days of supply with the expansion upgrading that reserve to 90 days. [ [http://www.chinadaily.com.cn/bizchina/2008-07/24/content_6874604.htm Guangdong plans 2 oil storages to ease shortage ] ]
Hainan Provincehas begun plans for a reserve. [zh icon [http://firstname.lastname@example.org China's Strategic Oil Reserves to Be Ready ] ]
*Enterprise Reserves; 209.44 million barrel strategic reserve
**Commercial oil reserves by major Chinese oil companies,
PetroChina, Sinopecand CNOOC
Shanshan County, Xinjiang Uygur Autonomous Region. Planned capacity of convert|50.9|Moilbbl|m3.
Tieling, Liaoning Province. 8 storage tanks with a capacity of convert|5.03|Moilbbl|m3, completion October 2008 [ [http://www.csc.mofcom.gov.cn/csweb/sacc/info/Article.jsp?a_no=77726&col_no=617 South Africa-China Economic & Trade Cooperation ] ]
Shanghai, under construction
Ningbo, under construction
Zhanjiang, under construction
Caofeidian, under construction [ [http://www.reuters.com/article/mergersNews/idUSHKG28096420070827 Sinopec, Aramco refinery on track, discuss reserves | Deals | Mergers & Acquisitions | Reuters ] ]
***Sinochem facility, under construction
**Oil storage reserves by medium and small Chinese oil companies
Indiahas begun the development of a strategic crude oil reserve sized at 37.4 million barrels, enough for two weeks of consumption. [ [http://www.gasandoil.com/goc/news/nts43834.htm Alexander's Gas & Oil Connections - India to build up storage of crude oil ] ] Petroleum stocks have been transferred from the Indian Oil Corporation(IndianOil) to the Oil Industry Development Board(OIDB). [ [http://www.thehindubusinessline.com/2006/04/02/stories/2006040202220200.htm The Hindu Business Line : Strategic oil reserves to come directly under Govt ] ] The OIDB then created the Indian Strategic Petroleum Reserves Ltd (ISPRL) to serve as the controlling government agency for the strategic reserve. [ [http://economictimes.indiatimes.com/India_to_form_crude_oil_reserve_of_5_mmt/articleshow/2137148.cms 'India to form crude oil reserve of 5 mmt'- Oil & Gas-Energy-News By Industry-News-The Economic Times ] ]
The facilities are:
Mangalore, State of Karnataka. Capacity of convert|11.22|Moilbbl|m3.
Padurvillage, Udipiin the state of Karnataka. Capacity of convert|18.7|Moilbbl|m3. [http://www.deccanherald.com/deccanherald/apr42005/national153423200543.asp]
Visakhapatnam, State of Andhra Pradesh. Capacity of convert|7.48|Moilbbl|m3.
As of 2003
Japanhas an SPR composed of the following three types of stockpiles:
* State controlled reserves of petroleum at ten different locations totaling 320 million barrels. "All storage numbers, unless otherwise cited, come from p.177 of this document: [http://www.iea.org/textbase/nppdf/free/2000/oilsecu2001.pdf] "
TomakomaiEastern Oil Reserve Storage Base, 55 storage tanks, total capacity convert|34|Moilbbl|m3.
Mutsu-OgawaraStorage Base, 53 storage tanks, total capacity convert|31|Moilbbl|m3.
KujiStorage Base, 3 storage tanks, total capacity convert|10.5|Moilbbl|m3.
**Akita Storage Base, 15 storage tanks, total capacity convert|23.4|Moilbbl|m3.
**Fukui Storage Base, 27 storage tanks, total capacity convert|17.9|Moilbbl|m3.
KikumaUnderground Petroleum Storage Facility, 8 storage tanks, total capacity convert|8.9|Moilbbl|m3.
ShirashimaStorage Facility, 8 tankers (4.4 million barrels each), total capacity convert|35.2|Moilbbl|m3. [http://minerals.usgs.gov/minerals/pubs/country/1998/9314098.pdf]
KamigotouStorage Base, 7 storage tanks, total capacity convert|21.45|Moilbbl|m3.
KushikinoStorage Base, 3 storage tanks, total capacity convert|10.5|Moilbbl|m3.
ShibushiStorage Base, 40 storage tanks, total capacity convert|27.6|Moilbbl|m3.
* Privately held reserves of petroleum held "in accordance with the
Petroleum Stockpiling Law" of 129 million barrels. [ [http://www.enecho.meti.go.jp/english/energy/japan/oilinfo.html The Oil Situation after the Attack on Iraq ] ]
* Privately held reserves of petroleum products for another 130 million barrels.The state stockpile equals about 92 days of consumption and the privately held stockpiles equal another 77 days of consumption for a total of 169 days or 579 million barrels. [cite news|title= Energy Security in East Asia |publisher= Institute for the Analysis of Global Security|date=
2004-08-13|url=http://www.iags.org/n0813042.htm] [cite news|title= Energy Security Initiative |publisher= Asia Pacific Energy Research Center|date= 2002-01-01|url=http://www.ieej.or.jp/aperc/2002pdf/OilStocks2002.pdf] The Japanese SPR is run by the Japan Oil, Gas and Metals National Corporation[http://www.jogmec.go.jp/english/index.html]
As part of the government’s energy security efforts,
South Koreaholds strategic oil reserves to protect against oil supply disruptions. The country’s strategic oil reserve program is managed by KNOC (Korea National Oil Corporation), which reports that its system has the capacity to store 116 million barrels of oil. As of April 2007, KNOC held 76 million barrels of oil in its strategic stockpiles [ [http://www.eia.doe.gov/emeu/cabs/South_Korea/Oil.html South Korea Energy Data, Statistics and Analysis - Oil, Gas, Electricity, Coal ] ] , of which 64 million barrels was crude oil and 12 million barrels was petroleum products.
This total amounts to approximately 34 days of net import cover, according to 2006 estimates of demand. KNOC has plans to expand the country’s strategic storage capacity from 116 to 146 million barrels by 2009, and to fill the emergency reserves to 141 million barrels by 2010.
Philippineshas begun plans for a National Petroleum Strategic Reserve by 2010 with an approximate size of 30 million barrels. [ [http://www.energybulletin.net/8226.html Energy conservation takes center stage in the Philippines | EnergyBulletin.net | Peak Oil News Clearinghouse ] ] Russiahas begun plans for a strategic petroleum reserve. Analysts estimate the size of the Russian SPR would be around 78 million barrels. [ [http://findarticles.com/p/articles/mi_go1505/is_200210/ai_n7209404 US, Russia Differ Greatly on Role of Strategic Petroleum | Oil Daily, The | Find Articles at BNET.com ] ] [ [http://www.energybulletin.net/11386.html The Impact of Additions to Strategic Petroleum Reserves on World Oil Demand | EnergyBulletin.net | Peak Oil News Clearinghouse ] ] Singaporehas an SPR composed of convert|31.8|Moilbbl|m3 of crude oil with an additional convert|64.5|Moilbbl|m3 of oil products for a total of 96.3 million barrels. [ [http://www.opinionasia.org/Aregionalapproachtostrategicoilreserves A regional approach to strategic oil reserves? | Opinion Asia ] ]
Taiwan has an SPR with a 1999 reported size of 13 million barrels. [cite news|title= Improving Energy Security Through an International Cooperative Approach to Strategic Oil Stocks |publisher= International Energy Agency|date=
2003-09-19|url=http://www.iea.org/textbase/work/2003/berlin/leiby.pdf] Thailandhas recently increased the size of its SPR from 60 days to 70 days of consumption. [ [http://www.bruneitimes.com.bn/section/opinion/26Dec2006-4.php The Brunei Times ] ]
European Union, according to Council Directive68/414/EEC of 20 December 1968, all 27 members must have a strategic petroleum reserve within the territory of the E.U. equal to at least 90 days average daily internal consumption. [cite news|title= Council Directive 68/414/EEC of 20 December 1968 imposing an obligation on Member States of the EEC to maintain minimum stocks of crude oil and/or petroleum products |publisher= European Union|date= 1968-12-20|url=http://europa.eu/scadplus/leg/en/lvb/l27045.htm]
Czech Republichas a four tank SPR facility in Nelahozevesrun by the company CR Mero. [http://www.eia.doe.gov/emeu/cabs/visegrad.html North Central Europe ] ] The Czech SPR is equal to 100 days of consumption or 2.03 million barrels.cite news
title=European Leaders Fire Up Over Russian Oil Cut
Denmarkhas recently created a strategic reserve, the size is unknown. Finlandhas an SPR with an approximate size of 62.4 million barrels. [ [http://english.people.com.cn/200509/09/eng20050909_207507.html People's Daily Online - Finland decides to tap strategic oil reserves in Katrina aftermath ] ] Francehas an SPR with an approximate size of 65 million barrels. [ [http://www.ambafrance-us.org/news/statmnts/2005/oilreserve_katrina_090205.asp Embassy of France in the US - katrina - Strategic oil reserves < ] ] As of 2000 jet fuel stocks were required for at least 55 days of consumption, with half of those stocks controlled by the "Société Anonyme de Gestion des Stocks de Sécuritié" (SAGESS) and the other half controlled by producers.http://www.iea.org/textbase/nppdf/free/2000/oilsecu2001.pdf] Germanycreated the Federal Oil Reserve in 1970, stored in the Etzel salt caverns near Wilhelmshavenin northern Germany, with an initial size of convert|70|Moilbbl|m3. [http://www0.gsb.columbia.edu/faculty/ghubbard/Articles%20for%20Web%20Site/Managing%20the%20Strategic%20Petroleum%20Reserve_Energy%20Policy%20in%20a%20.pdf] The current German Federal Oil Reserve and the Erdölbevorratungsverband (EBV) (the German stockholding company) mandates that refiners must keep 90 days of stock on hand, giving Germany an approximate reserve size of 250 million barrels as of 1997. [ [http://www.pennwellpetroleumgroup.com/Articles/Article_Display.cfm?ARTICLE_ID=114993&Section=ARTCL GERMANY - Online Research Center ] ] The German SPR is the largest in Europe. Hungaryhas an SPR with approximately 90 days of consumption or 11.88 million barrels. [ [http://www.abcmoney.co.uk/news/6200783775.htm Hungarian govt releases strategic oil reserves after Russian supply cut-off ] ]
Ireland has approximately 31 days of oil stocks in Ireland and another 9 days of oil stocks held in fellow EU members states. Additionally, they have stock tickets (contracts with a 3rd party where the government has the option to purchase in the event of an emergency) and stocks held by large industry or large consumers. On average Ireland has approximately 100 days of oil available. [http://www.dcenr.gov.ie/Energy/Oil+Supply+Division/Ireland+s+Current+Stock+Levels.htm] [http://www.nora.ie/]
Polandhas an SPR with approximately 70 days of consumption. [http://news.yahoo.com/s/ap/20070108/ap_on_bi_ge/belarus_russia_oil_5] Another facility holding 20 additional days of consumption is scheduled to be completed in 2008. Poland also requires oil companies to maintain reserves sufficient for 73 days of production. [http://www.reuters.com/article/rbssEnergyNews/idUSL354313120080903?rpc=401&] Portugalhas an SPR with an approximate size of 22.44 million barrels. [ [http://findarticles.com/p/articles/mi_kmafp/is_200509/ai_n15327212 Portugal to tap oil reserves to help hurricane-ravaged US | AFP | Find Articles at BNET.com ] ] Spainhas an SPR with an approximate size of 120 million barrels. [Staff Writer. " [http://www.elmundo.es/mundodinero/2005/09/08/economia/1126166131.html El Consejo de Ministros aprueba el envío del 2% de las reservas de crudo para ayudar a EEUU] ." "El Mundo." September 9, 2005. Retrieved on June 10, 2006. Article in Spanish.] Swedenhas an SPR with an approximate size of 13.29 million barrels. [ [http://english.people.com.cn/200509/16/eng20050916_208886.html People's Daily Online - Swedish government releases gasoline reserves ] ] Switzerlandhas SPRs consisting of gas, diesel, jet fuel and heating oil for 4.5 months of consumption. The reserves were created in the 1940s and were used for the first time in 2005 following Hurricane Katrina.
United Kingdomhas recently created a strategic reserve, the size is unknown.
In April 2006 the Fars News Agency reported that
Iranhas begun plans to create an SPR. The National Iranian Oil Company(NIOC) has begun construction of 15 crude oil storage tanks with a planned capacity of 10 million barrels. [http://www.eia.doe.gov/emeu/cabs/Iran/pdf.pdf] In August 2008, Iran announced plans to expand their SPR with a new facility on Kharg Islandcontaining 4 tanks holding 1 million barrels each. [http://www.iranmania.com/News/ArticleView/Default.asp?NewsCode=60953] Iran's SPR facilities are:
Ahwaz. 4 storage tanks, total capacity convert|2|Moilbbl|m3.
Omidiyeh. 3 storage tanks, total capacity convert|3|Moilbbl|m3.
Goureh. 6 storage tanks, total capacity convert|4|Moilbbl|m3.
Sirri Island. 1 storage tank, total capacity convert|500000|oilbbl|m3.
Bahregansar. 1 storage tank, total capacity convert|500000|oilbbl|m3.
Kharg Island. 4 storage tanks, total capacity convert|4|Moilbbl|m3. Planned facility, not operational yet.
Kuwait has a joint stockpile held in
South Korea. The deal gives South Korea first rights to purchase the oil. The current size of the stockpile is convert|2|Moilbbl|m3. [ [http://africa.reuters.com/energyandoil/news/usnL3383016.html?rpc=401& Energy and Oil | Africa - Reuters.com ] ]
As of 1975
Israelis believed to have a strategic oil reserve equal to 270 days of consumption. Jordanhas strategic oil reserves equal to 60 days of consumption or 6.24 million barrels. [http://www.tradeportalofindia.com/contentmgmt/Desktops2.asp?itemcode=I484&compid=itpo]
United Stateshas the largest reported Strategic Petroleum Reservewith a total capacity of 727 million barrels. If completely filled, the US SPR could theoretically replace about 360 days of oil imports. [See Strategic Petroleum Reserve] The U.S. facilities are:
* Bryan Mound - located near
Freeport, Texas. Capacity of 226 million barrels (36,000,000 m³).
* Big Hill - located near
Winnie, Texas. Capacity of 160 million barrels (25,000,000 m³).
* West Hackberry - located near
Lake Charles, Louisiana. Capacity of 219 million barrels (35,000,000 m³).
* Bayou Choctaw - located near
Baton Rouge, Louisiana. Capacity of 72 million barrels (11,000,000 m³).
Richton, Mississippi. A new facility the capacity is unknown.
The US has also organized the convert|2|Moilbbl|m3|sing=on
Northeast Home Heating Oil Reserveto supply northeast homeowners during shortages.
There is a report to create a California Strategic Fuels Reserve [http://www.energy.ca.gov/reports/2002-07-04_600-02-017D.PDF] [http://www.arb.ca.gov/bluebook/bb06/PUR25720/PUR_25720.htm] .
Australiahas a strategic reserve with both petroleumand petroleum products equal to 10 days of consumption or 8.77 million barrels. [ [http://www.energybulletin.net/1691.html Australia - Plan to protect oil supply | EnergyBulletin.net | Peak Oil News Clearinghouse ] ] New Zealandhas a strategic reserve with a 2008 size of 170,000 tons or 1.2 million barrels. Much of this reserve is based on ticketed option contracts with Australia, Japan, the United Kingdom and the Netherlands, which allow for guaranteed purchases of petroleum in the event of an emergency. [ [http://uk.reuters.com/article/oilRpt/idUKT20877720071227?rpc=401& Nippon Oil sells emergency oil reserves option to NZ | Markets | Reuters ] ]
For more on APEC strategic reserves:
* http://www.ieej.or.jp/aperc/2002pdf/OilStocks2002.pdfFor more info on the IEA reserves:
Wikimedia Foundation. 2010.
Look at other dictionaries:
Global Strategic Petroleum Reserves - GSPR — Global Strategic Petroleum Reserves (GSPR) are crude oil inventories held by countries or private industries in preparation for future energy crises. The reserves are intended to provide economic and national security in the event of an energy… … Investment dictionary
Strategic uranium reserves — refer to uranium inventories held by the government of a particular country, as well as private industry, for the purpose of providing economic and national security during an energy crisis.North AmericaIn the early 1990s, the United States… … Wikipedia
Strategic Petroleum Reserve — This article refers to the United States Strategic Petroleum Reserve. For other countries see global strategic petroleum reserves The Strategic Petroleum Reserve (SPR) is an emergency fuel store of petroleum maintained by the United States… … Wikipedia
Réserves pétrolières — Réserve pétrolière ██████████ … Wikipédia en Français
Petroleum industry in the People's Republic of China — The petroleum industry in the People s Republic of China is strongly affected by the country s growing population and political ideology, as well as its lack of local oil reserves. It highlights the current set up of the government, their… … Wikipedia
Strategic reserve — For the military term see: Military reserve A strategic reserve is a term used to describe a reserve of a commodity or items, held back from normal use by governments, organisations or business in pursuance of a particular strategy or to cope… … Wikipedia
Petroleum — For other uses, see Petroleum (disambiguation). Proven world oil reserves, 2009 … Wikipedia
Petroleum politics — Argentine president Néstor Kirchner and Venezuelan President Hugo Chávez discuss the Gran Gasoducto del Suran energy and trade integration project for South America. They met on November 21, 2005 in Venezuela. Petroleum politics have been an… … Wikipedia
Oil reserves — Proven Oil Reserves, as published by the CIA Factbook, 2009 The total estimated amount of oil in an oil reservoir, including both producible and non producible oil, is called oil in place. However, because of reservoir characteristics and… … Wikipedia
Oil shale reserves — refers to oil shale resources that are recoverable under given economic restraints and technological abilities. Oil shale deposits range from small presently non economic occurrences to large presently commercially exploitable reserves. Defining… … Wikipedia