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China's sites for commercial oil storage

Reuters -- BEIJING, Feb 9 (Reuters) - China National Petroleum Corp will start building a 6.2 million-barrel crude-oil tank farm next month in the northern port of Tianjin, which it aims to complete by end of this year, state media said.

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Submitted Feb 09, 2010 By: Mudsprings

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MightyDude Champion Author Minnesota Posts:5,336 Points:1,672,395 Joined:Mar 2003	Message Posted: Feb 9, 2010 9:24:08 AM Ignore MightyDude Report Abuse China: busy, busy
fltdoc Champion Author Oklahoma Posts:3,465 Points:602,990 Joined:Oct 2008	Message Posted: Feb 9, 2010 9:23:07 AM Ignore fltdoc Report Abuse Storing oil there will probably increase price worldwide.
albert2008 Champion Author Winnipeg Posts:2,463 Points:527,985 Joined:Sep 2008	Message Posted: Feb 9, 2010 9:21:00 AM Ignore albert2008 Report Abuse thats big storage tanks
min_fuel Veteran Author Philadelphia Posts:413 Points:228,540 Joined:Jan 2008	Message Posted: Feb 9, 2010 9:20:33 AM Ignore min_fuel Report Abuse In building the Tank Farm, the Chinese will use manpower. Lots and lots of manpower. I have seen Chinese construction projects - lots of men using shovels and moving dirt, concrete, and other building materials by hand. Normally very little heavy equipment like you would see in the west. It employs local workers and keeps many employed.
dopster Champion Author Toledo Posts:2,192 Points:1,355,285 Joined:Aug 2004	Message Posted: Feb 9, 2010 9:20:21 AM Ignore dopster Report Abuse Something smells rotten in the state of China. What's their real reason for building so much reserve capacity.
zippoking Veteran Author Illinois Posts:289 Points:257,545 Joined:Jul 2009	Message Posted: Feb 9, 2010 9:20:10 AM Ignore zippoking Report Abuse Hoard oil for when its more expensive. We do it to for military emergency purposes. If we would have sold some of that in summer '08 and bought it all back later that winter it would have been a nice way to slightly lower prices and bank a ton of loot for the government
Buck_on_Bass Champion Author Tennessee Posts:2,791 Points:597,930 Joined:Jul 2007	Message Posted: Feb 9, 2010 9:19:43 AM Ignore Buck_on_Bass Report Abuse Most of the tanks are for refined product and not for crude oil. Having too much finished product sitting around costs so you can expect either the refined product usage to increase tremendously of there will be excess storage capacity. The article suggested the latter will occur.
kruk Champion Author London Posts:2,843 Points:332,715 Joined:Jan 2007	Message Posted: Feb 9, 2010 9:19:41 AM Ignore kruk Report Abuse China will play market to their advantage
cpl11787 All-Star Author Minnesota Posts:630 Points:123,275 Joined:Jan 2010	Message Posted: Feb 9, 2010 9:17:27 AM Ignore cpl11787 Report Abuse What are they going to do with this farm?
min_fuel Veteran Author Philadelphia Posts:413 Points:228,540 Joined:Jan 2008	Message Posted: Feb 9, 2010 9:16:59 AM Ignore min_fuel Report Abuse China continues to make Oil purchase agreements with countries with less than perfect Human Rights records. These are countries the USA refuses to deal with because of the Human Rights issues. The Chinese understand how Oil shocks will affect their economy and are taking the steps necessary to minimize the affects. After all, a happy population in a controlled society is a happy, non-rebelling population. And of course there is the strategic implications.
carrollcreek Champion Author Minnesota Posts:1,495 Points:341,140 Joined:Jun 2008	Message Posted: Feb 9, 2010 9:16:47 AM Ignore carrollcreek Report Abuse If there storing more oil, does that mean it is not being used and the price should be lower?
star_deceiver Champion Author British Columbia Posts:3,001 Points:703,000 Joined:Jun 2008	Message Posted: Feb 9, 2010 9:16:31 AM Ignore star_deceiver Report Abuse $$$$$ in their pocket!
johnrb Champion Author Michigan Posts:3,826 Points:1,104,025 Joined:Oct 2006	Message Posted: Feb 9, 2010 9:15:24 AM Ignore johnrb Report Abuse It does seem a quick build but then they do have a large labor pool.
murushi Champion Author Ontario Posts:3,061 Points:602,180 Joined:Jul 2008	Message Posted: Feb 9, 2010 9:15:01 AM Ignore murushi Report Abuse There's sense in that. On the other hand, as badbonita said, "they're a hazard as well as a target".
bad_sailor Champion Author London Posts:2,974 Points:723,180 Joined:Dec 2007	Message Posted: Feb 9, 2010 9:13:24 AM Ignore bad_sailor Report Abuse Good for them.
nigelb Champion Author Virginia Posts:3,489 Points:526,475 Joined:Feb 2008	Message Posted: Feb 9, 2010 9:12:24 AM Ignore nigelb Report Abuse Whatever China does bears watching - they are fast becoming a dominant economic power.
DJRIO Champion Author Miami Posts:2,480 Points:456,625 Joined:Jan 2008	Message Posted: Feb 9, 2010 9:11:54 AM Ignore DJRIO Report Abuse let see what happen when tanks are filled . how the oil market will response.
neptune2008 Champion Author Michigan Posts:3,620 Points:713,305 Joined:Aug 2008	Message Posted: Feb 9, 2010 9:11:36 AM Ignore neptune2008 Report Abuse what good would this be??
DABEE1073 Champion Author San Diego Posts:2,978 Points:596,560 Joined:Jun 2008	Message Posted: Feb 9, 2010 9:10:39 AM Ignore DABEE1073 Report Abuse ANOTHER CATASTROPHE ABOUT TO HAPPEN IN CHINA. LETS SEE WHAT HAPPENS WHEN THEY GET THEM FILLED.
AC-302 Champion Author Los Angeles Posts:14,850 Points:1,944,660 Joined:Aug 2004	Message Posted: Feb 9, 2010 9:10:30 AM Ignore AC-302 Report Abuse I'm glad to know this info is public. Our military may need to know this someday.
mysub Champion Author Las Vegas Posts:4,303 Points:1,363,515 Joined:Apr 2006	Message Posted: Feb 9, 2010 9:06:21 AM Ignore mysub Report Abuse babybooey2, are you kidding? It will never happen.
hauler43 Champion Author Oakland Posts:4,814 Points:1,854,605 Joined:Sep 2003	Message Posted: Feb 9, 2010 9:06:14 AM Ignore hauler43 Report Abuse To me to build it in less than a year seems kinda fast.
owatonnajeep Champion Author Minnesota Posts:3,510 Points:709,345 Joined:Nov 2007	Message Posted: Feb 9, 2010 9:05:55 AM Ignore owatonnajeep Report Abuse that's pretty big, right?
DieselKat Champion Author Tennessee Posts:1,715 Points:1,411,830 Joined:Oct 2005	Message Posted: Feb 9, 2010 9:04:02 AM Ignore DieselKat Report Abuse Buy it when it's cheap, burn it when it's high.
throttle Champion Author Maryland Posts:7,857 Points:1,652,255 Joined:Jul 2004	Message Posted: Feb 9, 2010 9:03:32 AM Ignore throttle Report Abuse 6.2 million barrels doesn't seem like much in the scheme of things.
xybiz Champion Author Illinois Posts:1,057 Points:1,257,195 Joined:Aug 2005	Message Posted: Feb 9, 2010 9:02:32 AM Ignore xybiz Report Abuse China doesn't have enough oil resources
xybiz Champion Author Illinois Posts:1,057 Points:1,257,195 Joined:Aug 2005	Message Posted: Feb 9, 2010 9:02:00 AM Ignore xybiz Report Abuse Buy low and buy high
Bicycle_Rider Champion Author Chicago Posts:8,918 Points:1,812,750 Joined:Apr 2005	Message Posted: Feb 9, 2010 9:00:39 AM Ignore Bicycle_Rider Report Abuse Buy Low - Sell High
Jizme Champion Author Lincoln Posts:4,918 Points:1,929,165 Joined:Oct 2004	Message Posted: Feb 9, 2010 9:00:21 AM Ignore Jizme Report Abuse You Go Girls! Just make sure you tighten all of the bolts. [Edited by: Jizme at 2/9/2010 9:00:59 AM EST]
bababooey2 Champion Author Hartford Posts:1,471 Points:323,915 Joined:Sep 2009	Message Posted: Feb 9, 2010 8:59:34 AM Ignore bababooey2 Report Abuse When will O'Bama smarten up?
KillChain Champion Author Albuquerque Posts:2,249 Points:600,875 Joined:Jun 2006	Message Posted: Feb 9, 2010 8:59:22 AM Ignore KillChain Report Abuse Bow down to our new, money masters.
rsm315 All-Star Author Detroit Posts:821 Points:216,605 Joined:Dec 2009	Message Posted: Feb 9, 2010 8:59:16 AM Ignore rsm315 Report Abuse CHINA doesnt care about the enviroment
badbonita Champion Author Syracuse Posts:1,198 Points:374,520 Joined:Jul 2008	Message Posted: Feb 9, 2010 8:53:44 AM Ignore badbonita Report Abuse We had an oil tank - well, not farm but area - that had been there since before WW2. They've all been taken down and the area is now a parking lot for a mall expansion. They're a necessary evil in order to have any type of fuel reserves but environmentally, IMO, they're a hazard as well as a target.
JMJarvis1952 Champion Author Houston Posts:1,505 Points:391,780 Joined:Jan 2008	Message Posted: Feb 9, 2010 8:51:44 AM Ignore JMJarvis1952 Report Abuse Is this their strategic reserve?
t_flor Champion Author Illinois Posts:1,280 Points:408,055 Joined:Jul 2008	Message Posted: Feb 9, 2010 8:51:33 AM Ignore t_flor Report Abuse Notice that anything dealing with future and money includes China.
rfe330 All-Star Author Winston-Salem Posts:700 Points:229,275 Joined:Nov 2008	Message Posted: Feb 9, 2010 8:48:38 AM Ignore rfe330 Report Abuse Like our strategic reserves, except it's part of their regular distribution channel. If the gov did it here people would cry interference with business. Business won't do it because they have NO incentive. The oil companies couldn't care less how much we pay.
cigarpro Sophomore Author London Posts:213 Points:82,175 Joined:Jan 2009	Message Posted: Feb 9, 2010 8:48:35 AM Ignore cigarpro Report Abuse If they keep buying cars at the curent pace, they will need more storage
techque Champion Author St. Louis Posts:3,877 Points:1,523,365 Joined:Apr 2005	Message Posted: Feb 9, 2010 8:47:23 AM Ignore techque Report Abuse what if ?? chinese automakers ever got a large part of the US market, and what if ?? they ever had an issue like Toyota is experiencing (which is likely given the low quality of their usual products) ?? Can anyone ever see them knuckling under to US govt pressure to recall and fix the problem ?!?!
flyfast Champion Author Kansas City Posts:4,508 Points:876,515 Joined:Jan 2008	Message Posted: Feb 9, 2010 8:47:18 AM Ignore flyfast Report Abuse will be buying more oil price going up
Goatroper Champion Author Dallas Posts:2,056 Points:415,215 Joined:Apr 2004	Message Posted: Feb 9, 2010 8:46:06 AM Ignore Goatroper Report Abuse We have huge tank farms all along the gulf and east coasts. This is something we have been doing for a very long time.
rjoeh Champion Author Michigan Posts:3,790 Points:1,582,765 Joined:Jun 2004	Message Posted: Feb 9, 2010 8:44:28 AM Ignore rjoeh Report Abuse Thats one way to price hedge... buy low and store till needed. Too bad America does not have forward thinking like that.
knifeman9 Champion Author North Carolina Posts:1,381 Points:530,800 Joined:Oct 2008	Message Posted: Feb 9, 2010 8:43:58 AM Ignore knifeman9 Report Abuse Remind me again why I care.
DWME Champion Author Indiana Posts:1,113 Points:215,775 Joined:Aug 2009	Message Posted: Feb 9, 2010 8:41:37 AM Ignore DWME Report Abuse Gotta watch it. China's increasing demand will have a significant impact on prices.
reb4 Champion Author Chicago Posts:7,502 Points:844,395 Joined:Sep 2004	Message Posted: Feb 9, 2010 8:41:18 AM Ignore reb4 Report Abuse This is for commercial use. China has an oil reserve already similar to our strategic oil reserve. Be better served to look for alternative energy and keeping our reserves up to maximum capacity.
Agabel Champion Author Colorado Springs Posts:1,521 Points:943,790 Joined:Aug 2005	Message Posted: Feb 9, 2010 8:40:46 AM Ignore Agabel Report Abuse how does this compare to the US?
chieftmc Champion Author Indiana Posts:1,136 Points:364,820 Joined:Jan 2008	Message Posted: Feb 9, 2010 8:39:19 AM Ignore chieftmc Report Abuse Don't worry, speculators will drive fuel prices up !!!
mazdaboy Champion Author Portland Posts:3,012 Points:1,134,300 Joined:Aug 2003	Message Posted: Feb 9, 2010 8:37:34 AM Ignore mazdaboy Report Abuse This story would have been more interesting if I knew the US storage capacity.
Retowered Champion Author Colorado Posts:4,143 Points:1,723,445 Joined:May 2004	Message Posted: Feb 9, 2010 8:37:10 AM Ignore Retowered Report Abuse Watch prices go up on all fuel. Greed will make it happen.
braves89 Champion Author Chicago Posts:2,750 Points:656,445 Joined:Apr 2008	Message Posted: Feb 9, 2010 8:36:55 AM Ignore braves89 Report Abuse agree with wizrd03
Wizrd03 Champion Author Illinois Posts:3,208 Points:658,605 Joined:Oct 2008	Message Posted: Feb 9, 2010 8:35:54 AM Ignore Wizrd03 Report Abuse At least there, if the gov't wants something done, it's done!
Pucked Champion Author Fort Worth Posts:1,091 Points:210,780 Joined:Jun 2009	Message Posted: Feb 9, 2010 8:35:30 AM Ignore Pucked Report Abuse Good for them and we should do the same.
ebowMA Veteran Author Boston Posts:316 Points:392,745 Joined:Apr 2008	Message Posted: Feb 9, 2010 8:31:45 AM Ignore ebowMA Report Abuse Why would they export it? They are an oil importer. They are most likely building up a strategic reserve and/or a normal reserve to smooth out their exposure to large price fluctuations.