Global strategic petroleum reserves

From Wikipedia, the free encyclopedia

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 security during an energy crisis. According to the United States Energy Information Administration, approximately 4.1 billion barrels (650,000,000 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 Reserve is one of the largest strategic reserves, with much of the remainder held by the other 26 members of the International Energy Agency.^[1] Recently, other non-IEA countries have begun creating their own strategic petroleum reserves, with China being the largest of these new reserves.

Contents 1 International Energy Agency reserves 2 Emergency oil sharing agreements 2.1 The Japan, New Zealand and South Korea agreement 2.2 The United States and Israel agreement 2.3 The France, Germany, and Italy agreement 3 Africa 4 Asia 4.1 China 4.1.1 China's reserve structure 4.2 India 4.3 Japan 4.4 Others 5 Europe 6 Middle East 6.1 Iran 6.2 Others 7 North America 8 Pacific Rim 9 See also 10 References 11 External links

[edit] International Energy Agency reserves

According to a March 2001 agreement, all 26 members of the International Energy Agency must have a strategic petroleum reserve equal to 90 days of oil imports for their respective country.^[2][3] 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 Union members.

[edit] 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.

[edit] 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.^[4]

South Korea and Japan have also agreed to share their oil reserves in case of an emergency. ^[5]

[edit] 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.^[6]

[edit] The France, Germany, and Italy agreement

France, Germany and Italy have an oil-sharing agreement to allow each other to purchase their strategic reserves in the event of an emergency.^[7]

[edit] Africa

South Africa has an SPR. It is managed by PetroSA and the primary facility is the Saldanha Bay oil storage facility, which is a major transit point for oil shipping.^[8] Saldanha Bay's six in-ground concrete storage tanks give the facility a storage capacity of 45 million barrels.^[9]

Malawi is 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 Chipoka and Mchinji as well as Kamuzu International Airport.^[10]

[edit] Asia

[edit] China

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.^[11] 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.^[12]

[edit] China's reserve structure

• Government Reserves; 101.9 million barrel strategic reserve
  • Central government, National Development and Reform Commission(NDRC)^[13]
    • 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. ^[14][15][16]
    • Zhoushan, Zhejiang Province. Approximate planned capacity 33 million barrels (5,200,000 m³), 7.6 million barrels (1,210,000 m³) filled as of June 2007.^[17]
  • Oil reserve base controlled by local governments
    • Guangdong Province has begun plans for a reserve.
    • Hainan Province has begun plans for a reserve.^[18]
• Enterprise Reserves; 209.44 million barrel strategic reserve
  • Commercial oil reserves by major Chinese oil companies, PetroChina, Sinopec and CNOOC
    • PetroChina facility, Shanshan County, Xinjiang Uygur Autonomous Region. Planned capacity of 50.9 million barrels (8,090,000 m³).
    • PetroChina facility, Tieling, Liaoning Province. 8 storage tanks with a capacity of 5.03 million barrels (800,000 m³), completion October 2008^[19]
    • Sinopec facility, Shanghai, under construction
    • Sinopec facility, Ningbo, under construction
    • Sinopec facility, Zhanjiang, under construction
    • Sinopec facility, Caofeidian, under construction^[20]
    • Sinochem facility, under construction
    • Unknown company, Heilongjiang Province
    • Unknown company, Gansu Province
  • Oil storage reserves by medium and small Chinese oil companies

[edit] India

India has begun the development of a strategic crude oil reserve sized at 37.4 million barrels, enough for two weeks of consumption.^[21] Petroleum stocks have been transferred from the Indian Oil Corporation (IndianOil) to the Oil Industry Development Board (OIDB).^[22] The OIDB then created the Indian Strategic Petroleum Reserves Ltd (ISPRL) to serve as the controlling government agency for the strategic reserve.^[23]

The facilities are:

• Mangalore, State of Karnataka. Capacity of 11.22 million barrels (1,784,000 m³).
• Padur village, Udipi in the state of Karnataka. Capacity of 18.7 million barrels (2,970,000 m³).^[24]
• Visakhapatnam, State of Andhra Pradesh. Capacity of 7.48 million barrels (1,189,000 m³).

[edit] Japan

As of 2003 Japan has 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: [1]
  • Tomakomai Eastern Oil Reserve Storage Base, 55 storage tanks, total capacity 34 million barrels (5,400,000 m³).
  • Mutsu-Ogawara Storage Base, 53 storage tanks, total capacity 31 million barrels (4,900,000 m³).
  • Kuji Storage Base, 3 storage tanks, total capacity 10.5 million barrels (1,670,000 m³).
  • Akita Storage Base, 15 storage tanks, total capacity 23.4 million barrels (3,720,000 m³).
  • Fukui Storage Base, 27 storage tanks, total capacity 17.9 million barrels (2,850,000 m³).
  • Kikuma Underground Petroleum Storage Facility, 8 storage tanks, total capacity 8.9 million barrels (1,410,000 m³).
  • Shirashima Storage Facility, 8 tankers (4.4 million barrels each), total capacity 35.2 million barrels (5,600,000 m³).^[25]
  • Kamigotou Storage Base, 7 storage tanks, total capacity 21.45 million barrels (3,410,000 m³).
  • Kushikino Storage Base, 3 storage tanks, total capacity 10.5 million barrels (1,670,000 m³).
  • Shibushi Storage Base, 40 storage tanks, total capacity 27.6 million barrels (4,390,000 m³).
• Privately held reserves of petroleum held "in accordance with the Petroleum Stockpiling Law" of 129 million barrels.^[26]
• 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.^[27][28] The Japanese SPR is run by the Japan Oil, Gas and Metals National Corporation.[2]

[edit] Others

The Philippines has begun plans for a National Petroleum Strategic Reserve by 2010 with an approximate size of 30 million barrels.^[29]

Russia has begun plans for a strategic petroleum reserve. Analysts estimate the size of the Russian SPR would be around 78 million barrels.^[30][31]

Singapore has an SPR composed of 31.8 million barrels (5,060,000 m³) of crude oil with an additional 64.5 million barrels (10,250,000 m³) of oil products for a total of 96.3 million barrels.^[32]

South Korea has an SPR composed of 76 million barrels, equal to about 57 days of consumption. They recently announced plans to increase their SPR to around 141 million barrels by 2010.^[33]

Taiwan has an SPR with a 1999 reported size of 13 million barrels.^[34]

Thailand has recently increased the size of its SPR from 60 days to 70 days of consumption.^[35]

[edit] Europe

In the European Union, according to a Council Directive 68/414/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.^[36]

The Czech Republic has a four tank SPR facility in Nelahozeves run by the company CR Mero.^[37] The Czech SPR is equal to 100 days of consumption or 2.03 million barrels.^[38]

Denmark has recently created a strategic reserve, the size is unknown.

Finland has an SPR with an approximate size of 62.4 million barrels.^[39]

France has an SPR with an approximate size of 65 million barrels.^[40] 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.^[41]

Germany created the Federal Oil Reserve in 1970, stored in the Etzel salt caverns near Wilhelmshaven in northern Germany, with an initial size of 70 million barrels (11,000,000 m³).^[42] 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.^[43] The German SPR is the largest in Europe.

Hungary has an SPR with approximately 90 days of consumption or 11.88 million barrels.^[44]

Poland has an SPR with approximately 70 days of consumption.^[45] Another facility holding 20 additional days of consumption is scheduled to be completed in 2008.^[46]

Portugal has an SPR with an approximate size of 22.44 million barrels.^[47]

Slovakia has an SPR with an approximate size of 748,000 barrels.^[48]

Spain has an SPR with an approximate size of 120 million barrels.^[49]

Sweden has an SPR with an approximate size of 13.29 million barrels.^[50]

Switzerland has SPRs consisting of gas, diesel, jet fuel and heating oil for 4.5 months of consumption. The reserves were created in the 1940s and where dipped into for the first time in 2005 following Hurricane Katrina. ^[51]

The United Kingdom has recently created a strategic reserve, the size is unknown.

[edit] Middle East

[edit] Iran

In April 2006 the Fars News Agency reported that Iran has 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.^[52] The planned facilities are:

• Ahwaz. 4 storage tanks, total capacity 2 million barrels (320,000 m³).
• Omidiyeh. 3 storage tanks, total capacity 3 million barrels (480,000 m³).
• Goureh. 6 storage tanks, total capacity 4 million barrels (640,000 m³).
• Sirri Island. 1 storage tank, total capacity 500,000 barrels (79,000 m³).
• Bahregansar. 1 storage tank, total capacity 500,000 barrels (79,000 m³).

[edit] Others

As of 1975 Israel is believed to have a strategic oil reserve equal to 270 days of consumption.

Jordan has strategic oil reserves equal to 60 days of consumption or 6.24 million barrels.^[53]

[edit] North America

The United States has the largest reported Strategic Petroleum Reserve with a total capacity of 727 million barrels. If completely filled, the US SPR could theoretically replace about 60 days of oil imports.^[54] 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 2-million-barrel (320,000 m³) Northeast Home Heating Oil Reserve to supply northeast homeowners during shortages.

[edit] Pacific Rim

Australia has a strategic reserve with both petroleum and petroleum products equal to 10 days of consumption or 8.77 million barrels.^[55]

New Zealand has 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.^[56]

[edit] See also

• Energy development
• Energy security
• Peak oil
• Strategic reserve

[edit] References

[edit] External links

For more on APEC strategic reserves:

• http://pzl1.ed.ornl.gov/APECSizeIAEEPaperFinal_Proceedings.pdf
• http://www.ieej.or.jp/aperc/2002pdf/OilStocks2002.pdf

For more info on the IEA reserves:

• http://www.iea.org/dbtw-wpd/Textbase/work/2003/asean/CZECH.PDF