American researcher: China's vast oil reserves are sufficient to cover the supply shortfall for half a year

American energy researchers believe that as the world's largest crude oil importer, China's vast oil reserves are helping to protect the country from the energy market turmoil caused since the attacks on Iran by the United States and Israel.

Bloomberg reported on Monday (March 9) that Erica Downs, a senior researcher at the Center for Global Energy Policy at Columbia University, said that China's strategic reserves contain approximately 1.4 billion barrels of crude oil. Even if all of China's crude oil imports from the Middle East were completely cut off, these reserves would be sufficient to cover a supply gap of about six months.

Downs said in an interview with Bloomberg TV: "China has been continuously building and enriching its strategic oil reserves for the past 20 years precisely to deal with moments like this."

The Iran conflict has led to the actual closure of the Strait of Hormuz, a key passage for global energy transportation. As a result, global oil prices once soared to around $120 per barrel (S$153) (153 new yuan). European natural gas futures prices also rose by more than two-thirds last week.

Downs pointed out that China's natural gas storage capacity is less than that of crude oil, but with the increase in domestic production and the increase in pipeline imports, only about 6% of China's natural gas supply comes from the Middle East, which to some extent reduces the risk of supply disruption.

She also said that China is promoting more industries to shift from using oil to using electricity, and electricity can be produced relying on domestic coal, hydropower, wind power and solar energy.

Downs said: "If the turmoil in the Middle East prompts China to push forward the clean energy transition with greater strength and determination and continue to promote full electrification, I wouldn't be surprised."