[Tikib]

http://www.bloomberg.com/news/articles/ ... eper-slump

[Tikib]

read the article maybe.

[Tikib]

Theres no conspiracy China is just creating a very large strategic reserve. The headline is overly dramatic.

[Tikib]

China is essentially acting like a battery, trying to to reduce the volatility which is predicted by models at this point in the oil depletion process.

[efarmer]

US SPR capacity is 700 million barrels, China is building toward their own SPR at < 500 million barrels by 2016 or so. When I eat Chinese in the near future, I will request a wok blackened and carbonized egg roll in your honor and leave it by the shrine in the restaurant in your honor for such a dandy, flaming, thread title.

[Tikib]

Bloombergs name not mine...

[yellowcanoe]

Have to laugh at the title of this thread. China hasn't been able to get any of "their" oil from the Alberta tar sands as none of the pipeline projects have gone anywhere. Northern Gateway appears to be dead in the water. Kinder-Morgan is still going through the regulatory process. Keystone-XL has been stonewalled by Obama.

[dissident]

The usual "us vs. them" BS from the precious "free" media. When NATO governments say jump, the NATO media asks how high.

[penury]

Propaganda, they hoard we have a petroleum reserve. Remember: you are stubborn, she is pg headed, I am resolute.

[ROCKMAN]

Tikib - Read the article. Their numbers: China is "hoarding" 500,000 bbls of oil per day. That's 0.6% of the current global oil production that China is "stealing" from the market place. To each his own but I have a different concept of hoarding. Such as the cruel hoarding of Blue Bell ice cream going on in Texas right now: on my last two trips to the store the shelves were empty. How the hell can I hoard my fair share if others are beating me out? LOL.

[dolanbaker]

I have a 900 litre heating oil tank, I just got 500 litres of heating oil (first purchase in over 2 years), am I hoarding?
My guess is that the average Chang is simply stocking up on fuel while it is cheap.

[Subjectivist]

I have a 900 litre heating oil tank, I just got 500 litres of heating oil (first purchase in over 2 years), am I hoarding?
My guess is that the average Chang is simply stocking up on fuel while it is cheap.

If it is #2 oil it's probably good that you filled up, after a few years in a vented tank it tends to go stale.

[AgentR11]

Tikib - Read the article. Their numbers: China is "hoarding" 500,000 bbls of oil per day. That's 0.6% of the current global oil production that China is "stealing" from the market place. To each his own but I have a different concept of hoarding. Such as the cruel hoarding of Blue Bell ice cream going on in Texas right now: on my last two trips to the store the shelves were empty. How the hell can I hoard my fair share if others are beating me out? LOL.

You have to watch for the bluebell truck; and go where it went last.

I have two precious "Homemade Vanilla" and one unimaginably wonderful "Dutch Chocolate" in my hoarder's freezer.

Just thinking about it, makes me want to put an apple pie in the oven and have an evil version of lunch which begins with pie and ends with vanilla.
brb...

[GoghGoner]

Not only filling inventories, they are also exporting diesel at a record rate.

[Revi]

Interesting that China is exporting diesel. With our fracking we are producing lots of condensate, which can't be changed into diesel, so we need that stuff!

[kublikhan]

Interesting that China is exporting diesel. With our fracking we are producing lots of condensate, which can't be changed into diesel, so we need that stuff!

Nah, just mix in some Canadian tar sand and you can make plenty of diesel. Our diesel yields have been going up, not down. And the US is exporting more than 5x as much diesel as China.

Diesel exports (barrels per day):
US_ 1,201,000
China 175,000

Since 2001, distillate yields have followed an upward trend. The recent uptick in distillate yield can partly be explained by the significantly higher price margins over the cost of crude oil for distillate relative to gasoline. It can also be explained by growing distillate exports.

Refineries in the U.S. still average about 1.5 times as much gasoline as distillate from each barrel of oil refined, down from about 2 times from the 1990s to 2004.

Distillate yields at U.S. refineries are rising

[ROCKMAN]

k - Great post. I know the details of the refining process can tend to bore folks but unless one understands some of the details (such as the ones you just pointed out) it's going to be difficult to understand the global dynamics. Such as the simple fact that for decades there has been a constant trade between Europe and the US. EU refiners yield more gasoline then local demand and US refiners do likewise with diesel. Thus a very natural trade. But now we have China (and to some extent the KSA) getting into the refinery business big time.

And one more reminder: those numbers about US oil consumption include approx. 1 BILLION bbls of oil we "consume" yearly which is refined here but all the products are exported overseas. Yes: about 3 million bbls/day of our "consumption" is being used to supply foreign consumers.