Oil Supply Problems in China

Discussion in 'Current Affairs, News and Analysis' started by geezer466, Dec 4, 2007.

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  1. Article from the Australian

    Is this a problem in the Supply Chain or are we seeing the first signs that Peak Output has passed and with the emerging economies of South Asia there simply isn't enough being pumped to meet demand?
     
  2. Always thought the problem was lack of Refining Capacity, plenty of oil and more being found evey month.
    john
     
  3. Over the past few of weeks I have seen huge queues all over China, even sat in them myself - its a supply chain problem. As the fuel is sold too cheaply, at Beijings insistance, its not really in the interests of the Oil Companies to sort it out. Until now.
     
  4. I believe its a supply chain issue as said and mainly related to diesel. No real shortage of crude despite the price. Don't really know enough about the refining situation in China to comment, but they are investing heavily in that area. 11% annual growth means that parts of the economy will always be playing catchup

    Any apparent peak oil issues are as yet unproven, and we really won't know for sure for about 5-8 years. There is loads on the web about how difficult it is to predict. If you are really interested then search out the 'Hirsh report' from 2005 that was produced for the US Government. Its reasonably accessable and not too technical and a good starting point.
     
  5. I'd agree, it's the supply chain. There doesn't seem to be any shortage of supply to the country as a whole, but as ever the provinces get left behind.

    From what I hear via the wife, it's mainly private transport that's being affected - electricity generation is still overwhelmingly coal-fired. And of course, fuel supplies are as a first proprity being sent to the coastal provinces where most of the export industries are.

    What's worrying/interesting is that the railways are mainly diesel powered. If they can't sort this fuel problem out quick before stock run out, there'll be all kinds of knock-on effects to e.g. food distribution. The last time the food supply was hit hard was 1988.
     
  6. Not so much these days carrots, all of the new lines are electric (you know they are not daft) and the old ones are being converted as fast as only the Chinese or the Late Victorians could move when it comes to infrastructure.
     
  7. Really? That's damned good news in one way. Electricity generation in the counrty relies on coal and increasingly nuclear, so transport might not be such a problem as I thought.

    I knew he littoral was electrified, but I didn't think the provinces had had that pleasure. Certainly, it's a mixed picture in the places I mostly visit. Guangzhou is mainly electric as you'd expect but Gansu is still diesel.
     
  8. Well deepest darkest Sichuan certainly is, all other 'Countryside' Provinces are converting.

    Check out the new D trains (TVG clones) - mmmmmm it just makes the pain of traveling on UK trains worse, much worse.