America, China, India and South Korea All Adding to Their Oil Reserves

January 24th, 2007

HA! Look at the reasons as to why these countries are boosting their reserves. Oh sure, this has nothing to do with Peak Oil!

Tell me another one.

Via: Bloomberg:

George W. Bush’s decision to double the emergency oil stockpile in the U.S. may help to stem a six- month slide in prices as China, India and South Korea also add to demand by bolstering their defenses against shortages.

Oil gained the most since September 2005 yesterday after the U.S. Energy Department said it will boost the Strategic Petroleum Reserve to 1.5 billion barrels over 20 years. China, where imports rose 15 percent last year, began to fill its reserve in October. India also plans to double its inventories.

The U.S. plan “helps puts a floor in the market,” said Antoine Halff, head of energy research at Fimat USA Inc. in New York. “It creates competition for the same barrels. It tightens the market on top of the strategic reserve builds elsewhere such as China.”

Oil consumers are increasing stockpiles on concern that political instability in the Middle East, terrorism and hurricanes may cause supply disruptions. Governments may buy during dips in prices, supplementing demand growth that’s forecast to slow this year by the International Energy Agency.

Related: Energy Scarcity vs. Cost of the War in Iraq

Posted in Energy | Top Of Page

2 Responses to “America, China, India and South Korea All Adding to Their Oil Reserves”

  1. George Kenney says:

    Hi Kevin, do you have any opinions on the inflation vs deflation discussion, with Mish on the side of deflation?

    http://news.goldseek.com/bullnotbull/1169838094.php

    http://globaleconomicanalysis.blogspot.com/2007/01/q-on-psychology-of-deflation.html

    If you have a pile of cash and inflation comes, you should invest it quickly in income producing businesses, but if deflation comes, interest rates will go up and you can make a bunch of money lending it out or buying up deflated assets.

    The problem is no one know which way it will go, but it is interesting challenge to plan for either.

    Makes moving to NZ and buying cows look pretty good! 😉

    http://www.immigration.govt.nz/nzopportunities/unitedstates/contactus.htm

  2. Kevin says:

    George,

    I don’t believe that there is any knowable way to navigate what’s coming. Every couple of days, someone asks me, “What should I do with my money?”

    My broken record response had been to refer people to my Investing Very Close to Home post:

    https://cryptogon.com/2006_07_23_blogarchive.html#115374267650651782

    I can safely say that I have no for-sure strategies for preserving wealth in the face of the situation facing the U.S. and the world. Like I’ve said before, I don’t think it’s possible to get a grasp on the seriousness of this, a priori. If any of several different situations (financial, war/terror, energy, pandemic, weather/ecological) start to unwind, we won’t be debating gold vs. silver vs. stocks vs. bonds vs. cash etc.

    I’d be investing very close to home.

    Is your landbase and community sorted out? Meaning, do you have good top soil and a reliable and clean water supply? Are you friends with your neighbors? Is everyone armed? They should be.

    I would suggest using your money to get your land in the best shape possible, and to buy equipment and tools that will LAST for a long, long time.

    In a more recent post, I wrote:

    https://cryptogon.com/?p=83

    Get into a situation that eliminates your reliance on luck and minimizes the impact of factors that are completely beyond your control. Do this immediately.

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