The question of the market impact of the development of a Chinese

Strategic Petroleum Reserve (SPR) has been asked ever since the need

for such a reserve was first discussed in 1993, when China became a

net importer of oil. As construction of the initial phase of the planned

SPR first began in early 2004, this question took on a greater urgency.

And the soaring demand for Chinese crude oil in recent months has

once again heightened the market’s interest in the SPR’s development.

In order to address the questions and concerns surrounding the

Chinese SPR, below we provide the details of its history and of its