| ▲ | sgt 19 hours ago |
| Isn't that pretty misleading? About the production that can be cranked up / lowered as per needs, so the US likely remains the biggest oil power. |
|
| ▲ | chasil 18 hours ago | parent | next [-] |
| It might be said that this article casts China as a "super capacitor" in that it can store and release massive quantities of oil at will. It also has its own domestic oil production of 4.3 million barrels per day. |
| |
| ▲ | jayd16 18 hours ago | parent | next [-] | | Is the crux of this article just that the Chinese oil reserve is 2x the capacity of the US oil reserve? Is there anything more to it than that? | | |
| ▲ | laughing_man 10 hours ago | parent | next [-] | | Which makes sense. The US is a net oil exporter -- in a strategic emergency the US will still have access to oil. China will want to have a much larger buffer, since its economy requires oil from other countries. | |
| ▲ | chasil 17 hours ago | parent | prev | next [-] | | They were also able to drastically cut their own internal demand and external sales/shipments (the article mentions jet fuel to other Asian nations). This was possible because their economic planning is centralized. | |
| ▲ | 0xbadcafebee 15 hours ago | parent | prev [-] | | 4x. The crux is that they can flip a switch to change global oil supply, be highly resistant to embargos, and are no longer subject to OPEC (through Iran & Russian oil traded in Yuan). They can now change global oil prices at will and resist attacks on their energy imports. |
| |
| ▲ | mytailorisrich 18 hours ago | parent | prev [-] | | Yes and they seem good at this, too. News reports are that they started stockpiling in January at the latest in prevision of a conflict in Iran that did start right at the end of February. | | |
| ▲ | matthewdgreen 18 hours ago | parent [-] | | They started stockpiling in 2024. The estimate is that they had 1.4 billion barrels by the time the Iran war started, and they're down to 1.2 billion now. (Nobody knows for sure, though.) Meanwhile the US has 304 million barrels left in our reserves, but there's a (disputed) operational minimum around 225 million, where draw slows down and the caverns start to suffer damage. (That's about 90 days at current draw rates. Also, this is a loan program, where oil needs to be "repaid" with interest starting in November, so that's going to affect prices too.) |
|
|
|
| ▲ | matthewdgreen 18 hours ago | parent | prev | next [-] |
| Oil producer != oil power. What matters is the ability for a government to routinely influence prices. The US government could, in theory, ban all exports or manually dictate production but we tend not to do that (yet). Our main government price-control lever comes from SPR releases, but we're nearly tapped out. China has no real legal restrictions on what its government can dictate except for what makes sense geopolitically, so at any moment it can make oil vastly cheaper or more expensive, even moreso than OPEC can by manipulating supply. |
|
| ▲ | 17 hours ago | parent | prev | next [-] |
| [deleted] |
|
| ▲ | bluSCALE4 18 hours ago | parent | prev | next [-] |
| No, controlling supply isn't as important as controlling demand. If China wanted, we could all be paying 6, 8, 10 dollars a gallon right now causing real turmoil. Instead it's business as usual. |
|
| ▲ | 0xbadcafebee 18 hours ago | parent | prev [-] |
| Not even close. 1) US has at least 4x lower oil reserves than China so it can't outlast China in a game of energy chicken, 2) US produces mostly light crude while almost all its refineries are for heavy crude so it can't even use the stuff it makes, 3) China has the ability to control its own industries like flipping a switch so they can halt oil-demanding (and refining) immediately to control 15% of the world's demand of oil which immediately impacts the entire world's price on oil, 4) they can get oil from Iran and Russia through the Yuan since everything you want is made in China so oil export controls don't work. |
| |
| ▲ | chasil 18 hours ago | parent | next [-] | | In researching this question, 40% of the refineries in the U.S. can process light crude efficiently. They all can refine it, but the more technically adept refineries that specialize in processing heavy, sulfur-soured crude do not run efficiently with lighter grades. https://www.forbes.com/sites/rrapier/2026/04/05/debunking-a-... | |
| ▲ | 1234letshaveatw 18 hours ago | parent | prev [-] | | very interesting! So US refineries that can handle heavy crude are unable to handle light crude? | | |
| ▲ | 0xbadcafebee 15 hours ago | parent [-] | | It's not that they are unable to entirely, it's that they are unable to economically. If you're paying more to refine your oil than what it costs to sell/use it, you're taking money away from your industries that depend on oil. Eventually the businesses would go bankrupt. Since we have a "free market", the market doesn't want to lose money, so it will run at a shortage with high prices, or stop running entirely (whole refineries can shutter due to losses). We saw this in practice during the 70s when OPEC forced a shortage. We are still vulnerable to the same thing. The same shortages seen in the 70's would have already happened this year due to the Straight of Hormuz - except China saved the whole world from shortages by cutting its own imports of oil by 50%. Their massive drawdown created a buffer in the world oil market that everyone else pulled from. This is why China's oil reserve and non-OPEC imports make them the most powerful country in the world now. They effectively exist in a separate oil system with plenty of capacity for themselves, while we remain reliant on OPEC. |
|
|
