Strategic Petroleum Reserves
09/04/19
“How do nations handle reserves for fuels in case of a national crisis?”
Petroleum drives a substantial portion of the global economy, whether it be for moving cars or making plastics. But if a national crisis breaks out, petroleum supplies can be disrupted, leaving devastating consequences for a nation. For this reason, countries have Strategic Petroleum Reserves which allows them to have access to fuel supplies in case an emergency comes up.
How do countries know how much to allocate to these reserves?
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It all depends on how many days they plan to be able to withstand. For example, India’s strategic petroleum reserve has enough to supply the nation with enough oil to equal ten days of its average petroleum consumption (https://www.ndtv.com/business/store-our-oil-and-take-two-thirds-for-free-uaes-offer-to-india-1275964)
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