The Impact of Additions to Strategic Petroleum Reserves on World Oil Demand

Three countries have publicly expressed plans to build and fill SPR’s – China, Russia and India. These SPR’s will be filled in addition to those that already exist in the 26 member IEA. A look at the numbers to fill the proposed Strategic Reserves in any reasonable time frame shows that this act of filling the reserves will be a significant demand on world oil production.

..All in all, it appears that oil demand will be increased by 300,000 mbpd –if India, China and Russia fill at 100,000 mbpd respectively — to as high as 1,000,000 – if India, China and Russia fill at 200,000 mdpd and the US, the EU and other Africa, Latin America fill at 100,000 barrels per day. Or possibly the numbers can go higher, if other countries, such as African or other Latin American countries, decide to build and fill SPR’s, or, alternatively (or at the same time) the EIA countries decide to increase the size of their SPR’s. These demand numbers to fill SPR’s worldwide are not insignificant in a tight oil market.

Energy Bulletin