According to a report published today on the Wall Street Journal,
"over the past five years, China has amassed hundreds of millions of barrels in strategic petroleum reserves".
"Now the U.S. wants China to work with it to coordinate releases of those barrels when needed to help ensure oil market stability.
U.S. Secretary of Energy Ernest Moniz said Wednesday during a trip to Beijing that China is willing to discuss a coordination agreement on the use of strategic petroleum reserves. Mr. Moniz said he expects both countries to hold “stronger” and more “active” discussions about that coordination in the coming year".
"China is relatively new to managing petroleum reserves, and is building its capacity in three phases. The first phase, holding 100 million barrels, was completed in 2008. The second phase was finished last year, bringing the reserves to 270 million barrels, enough for about 50 days of cover. A third phase, to be finished by 2020, will boost them to 500 million barrels.
In contrast the U.S. holds Strategic Reserves of 727 million barrels – enough for about 90 days of coverage. A plan to boost capacity to 1 billion barrels was cancelled in 2011 due to concerns over the environmental impact of constructing a new facility.
“Knowing what major oil consumers are doing and what their reserves are is important for traders, analysts and the global market,” said Mr Moniz.
The U.S. isn’t alone in pressing China to coordinate use of strategic reserves. The International Energy Agency, has for years pressed China to improve the transparency of its oil data and sign an agreement, to release stockpiles during periods of intense shortages".
