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 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. Other non-IEA countries have begun creating their own strategic petroleum reserves, with China being the largest of these new reserves. Since current consumption levels are neighboring 0.1 billion barrels (16,000,000 m3) per day, in the case of a dramatic worldwide drop in oil field output as suggested by some peak oil analysts, the strategic petroleum reserves are unlikely to last for more than a few months.
- 1 International Energy Agency reserves
- 2 Forward commercial storage agreements
- 3 Emergency oil sharing agreements
- 4 Africa
- 5 Asia
- 6 Europe
- 7 Middle East
- 8 North America
- 9 Oceania
- 10 See also
- 11 References
- 12 External links
International Energy Agency reserves
According to a March 2001 agreement, all 28 members of the International Energy Agency must have a strategic petroleum reserve equal to 90 days of prior year's net oil imports for their respective country. 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.
Forward commercial storage agreements
To allow oil-exporting countries increased flexibility in their production quotas, there has been an increased movement towards forward commercial storage agreements. These agreements allow petroleum to be stored at an oil-importing country, however the reserves are technically under the control of the oil-exporting country. Oil importing countries benefit from the close access to the commercial reserves, while reducing the costs of access.
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.
South Korea and Japan have also agreed to share their oil reserves in case of an emergency.
The United States and Israel agreement
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. Since 1968, the six members of the European Economic Community, Belgium, France, Germany, Italy, Luxembourg, and the Netherlands have an agreement to maintain a minimum level of crude oil stocks and oil products corresponding to 65 days of domestic consumption. In 1972, this obligation was raised to 90 days.
Kenya is setting up a Strategic Fuel Reserve, similar to that of cereals. The strategic stocks would be procured by the National Oil Corporation of Kenya and stored by the Kenya Pipeline Company Limited.
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.
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. Saldanha Bay's six in-ground concrete storage tanks give the facility a storage capacity of 45,000,000 barrels (7,200,000 m3).
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. The government-controlled reserves are being completed in three phases. Phase one consisted of a 101,900,000 barrels (16,200,000 m3) reserve, mostly completed by the end of 2008. The second phase of the government-controlled reserves with an additional 170,000,000 barrels (27,000,000 m3) will be completed by 2011. Recently, Zhang Guobao, head of the National Energy Administration, stated that there will be a third phase that will expand reserves by 204,000,000 barrels (32,400,000 m3) with the goal of increasing China's SPR to 90 days of supply by 2020.
The planned state reserves of 475,900,000 barrels (75,660,000 m3) plus the planned enterprise reserves of 209,440,000 barrels (33,298,000 m3) will provide around 90 days of consumption or a total of 684,340,000 barrels (108,801,000 m3).
In 2003 India started the development of a strategic crude oil reserve sized at 37,400,000 barrels (5,950,000 m3), enough for two weeks of consumption. Petroleum stocks have been transferred from the Indian Oil Corporation (IndianOil) to the Oil Industry Development Board (OIDB). The OIDB then created the Indian Strategic Petroleum Reserves Ltd (ISPRL) to serve as the controlling government agency for the strategic reserve.
The facilities are:
- Mangalore, State of Karnataka. Capacity of 10.995 million barrels (1,748,100 m3).
- Padur village, Udupi in the state of Karnataka. Capacity of 18.7 million barrels (2,970,000 m3).
- Visakhapatnam, State of Andhra Pradesh. Capacity of 1.33 million tonnes.
On 21 December 2011, it was announced that India planned to greatly augment their crude reserve capacity to 132 million barrels by 2020, a senior oil ministry official stated.
As of 2010 Japan has an SPR composed of the following three types of stockpiles:
- State controlled reserves of petroleum at eleven different locations totaling 324,000,000 barrels (51,500,000 m3). All numbers, unless otherwise cited, come from p. 177 of this document: 
- 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 (4,400,000 barrels (700,000 m3) each), total capacity 35.2 million barrels (5,600,000 m3).
- 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).
- Kagoshima former Nippon Oil facility, 4,000,000 barrels (640,000 m3). This is a forward commercial storage facility with Abu Dhabi.
- Privately held reserves of petroleum held "in accordance with the Petroleum Stockpiling Law" of 129,000,000 barrels (20,500,000 m3).
- Privately held reserves of petroleum products for another 130,000,000 barrels (21,000,000 m3).
According to the Act, refineries, specified distributors and importers are obliged to hold from 40 days to 60 days of their daily import, sale or refined production based on the average of previous 12 months according to an ordinance of the Administration. At the end of 2010, South Korea possessed a total storage capacity of 286 million barrels (45.5 million cubic meters), which was composed of 146 mb of South Korea National Oil Corporation's facilities used for government stocks and international joint oil stockpiling, and 140 mb used for industry operation and mandatory industry stocks. South Korea's oil stocks in terms of days of net imports have consistently been above 160 days since January 2009, hitting the country’s historical record of 240 days (124 days of government stocks and 117 days of industry stocks) in March 2014.
Singapore does not have any oil reserves of their own.
Taiwan has an SPR with a 1999 reported size of 13,000,000 barrels (2,100,000 m3). Taiwan's refiners (Kaohsiung 270,000 bbl/d (43,000 m3/d); Ta-Lin 300,000 bbl/d (48,000 m3/d); Tao-Yuan 200,000 bbl/d (32,000 m3/d); Mailiao 150,000 bbl/d) are also required to store at least 30 days of petroleum stocks. As of 2005, these mandated commercial reserves total 27,600,000 barrels (4,390,000 m3) of strategic petroleum stocks.
In the European Union, according to 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.
France has an SPR with an approximate size of 65,000,000 barrels (10,300,000 m3). 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 Sécurité (SAGESS) and the other half controlled by producers.
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). 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 250,000,000 barrels (40,000,000 m3) as of 1997. The German SPR is the largest in Europe.
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.
Poland has an SPR with approximately 70 days of consumption. 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.
The United Kingdom has created a strategic reserve, the size is unknown.
Russia has begun accumulating strategic reserves of refined products which will be held by Rosneftegaz, the state-owned company. The reserves will be held at commercial refineries, Transneft facilities, and state reserve facilities. The current planned size is 14,665,982 barrels (2,331,704.8 m3).
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.
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 10,000,000 barrels (1,600,000 m3). In August 2008, Iran announced plans to expand their SPR with a new facility on Kharg Island containing 4 tanks holding 1,000,000 barrels (160,000 m3) each. Iran's SPR 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).
- Kharg Island. 4 storage tanks, total capacity 4 million barrels (640,000 m3). Planned facility, not operational yet.
As of 1975 Israel is believed to have a strategic oil reserve equal to 270 days of consumption.
The United States has the largest reported Strategic Petroleum Reserve with a total capacity of 987,000,000 barrels (156,900,000 m3). If completely filled, the US SPR could theoretically replace about 60 days of oil imports as the US is estimated to import approximately 12,000,000 barrels per day (1,900,000 m3/d) of crude oil. According to the US Department of Energy the facilities' maximum flow rate is limited to approximately 4,400,000 barrels per day (700,000 m3/d) when filled to maximum, with flow rate declining as the reserve is drawn down. The U.S. facilities are in salt caverns with locations in:
- Bryan Mound - located near Freeport, Texas. Capacity of 226,000,000 barrels (35,900,000 m3).
- Big Hill - located near Winnie, Texas. Capacity of 160,000,000 barrels (25,000,000 m3).
- West Hackberry - located near Lake Charles, Louisiana. Capacity of 219,000,000 barrels (34,800,000 m3).
- Bayou Choctaw - located near Baton Rouge, Louisiana. Capacity of 72,000,000 barrels (11,400,000 m3).
- Richton, Mississippi. A planned facility.
The US has also organized the 2-million-barrels (320,000 m3) Northeast Home Heating Oil Reserve to supply northeast homeowners during shortages.
New Zealand has a strategic reserve with a 2008 size of 170,000 tons or 1,200,000 barrels (190,000 m3). 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.
According to a recent study, Liquid Fuel Security, authored by Air Vice-Marshal John Blackburn, AO (retired), Australia is only holding 3 weeks of petroleum, instead of the allotted 90 days that was agreed upon. This occurred in 2008. Prior to 2008, Australia was reported to have held stocks sufficient for 90 days.
- "Fact Sheet on IEA Oil Stocks and Emergency Response Potential" (PDF). International Energy Agency. 2004-01-01.
- Reauthorization of the Energy Policy & Conservation Act
- RIGZONE - Article Not Found
- South Korea, Japan agree to share oil reserves - International Herald Tribune
- The Iranian Oil Crisis
- Nyasa Times - Malawi breaking news, sports, showbiz, jobs, business and social networking - Malawi to increase fuel storage
- South Africa's energy industry - SouthAfrica.info
- Alexander's Gas & Oil Connections - India to build up storage of crude oil
- The Hindu Business Line : Strategic oil reserves to come directly under Govt
- "News By Industry". The Times Of India. 2007-06-20.
- "India Unveils Ambitious New Strategic Oil Stockpile Plans". The Wall Street Journal. 2011-12-21.
- The Oil Situation after the Attack on Iraq
- "Energy Security in East Asia". Institute for the Analysis of Global Security. 2004-08-13.
- "Energy Security Initiative" (PDF). Asia Pacific Energy Research Center. 2002-01-01.
- "Oil and Gas Emergency Policy - Korea 2011 update" (PDF). www.iea.org. 2011-12-21.
- "Closing Oil Stock Levels in Days of Net Imports". www.iea.org. 2014-03-14.
- Energy conservation takes center stage in the Philippines | EnergyBulletin.net | Peak Oil News Clearinghouse
- "US, Russia Differ Greatly on Role of Strategic Petroleum". The Oil Daily. 2002.
- The Impact of Additions to Strategic Petroleum Reserves on World Oil Demand | EnergyBulletin.net | Peak Oil News Clearinghouse
- "Improving Energy Security Through an International Cooperative Approach to Strategic Oil Stocks" (PDF). International Energy Agency. 2003-09-19.
- The Brunei Times
- "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". European Union. 1968-12-20.
- North Central Europe
- "European Leaders Fire Up Over Russian Oil Cut". Global Insight. 2007-01-10. Retrieved 2007-01-10.
- Danish Agency for Energy
- People's Daily Online - Finland decides to tap strategic oil reserves in Katrina aftermath
- Embassy of France in the US - katrina - Strategic oil reserves <
- GERMANY - Online Research Center
- Hungarian govt releases strategic oil reserves after Russian supply cut-off
- "Poland mulls oil reserve changes for refiners". Reuters. 2008-09-03.
- "Portugal to tap oil reserves to help hurricane-ravaged US". AFP. 2005-09-01.[dead link]
- Staff Writer. "El Consejo de Ministros aprueba el envío del 2% de las reservas de crudo para ayudar a EEUU." El Mundo. 9 September 2005. Retrieved on 10 June 2006. Article in Spanish.
- People's Daily Online - Swedish government releases gasoline reserves
- "UPDATE 2-Russia to build state fuel stocks to ease shortages". Reuters. 2011-07-13.
- Reuters http://africa.reuters.com/energyandoil/news/usnL3383016.html?rpc=401&. Missing or empty
- See Strategic Petroleum Reserve
- "Nippon Oil sells emergency oil reserves option to NZ". Reuters. 2007-12-27.
For more on APEC strategic reserves:
For more info on the IEA reserves: