The Optimal Size of China’S Strategic Petroleum Reserve

The Optimal Size of China’S Strategic Petroleum Reserve

Xiaohang Ren Yumeng Zhang 

Academy of Chinese Energy Strategy, University of Petroleum (Beijing), No.18, Fuxue Road, 102249, Beijing, China

Corresponding Author Email: 
domrxh@outlook.com
Page: 
13-16
|
DOI: 
http://dx.doi.org/10.18280/mmep.020304
Received: 
N/A
|
Accepted: 
N/A
|
Published: 
31 January 2015
| Citation

OPEN ACCESS

Abstract: 

Energy security usually considers both the stability of energy supply and security of energy use and it is receiving increasing attention globally. Considering the strategic importance and sensitivity to international change of the crude oil supply, we decided to examine China’s energy security. The first research question of this paper is how suppliers’ unreliability may impact the Chinese oil market and how this affects Chinese oil market decisions. The second research question of this paper is to what extent China should invest in strategic oil storage capacity to mitigate the effects of possible supply withholding by risky countries. The results of this paper is helpful for government decision-making.

Keywords: 

Energy security, Oil supply, Oil storage, Game theory

1. Introduction
2. Model
3. Numerical Simulation
4. Conclusions
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