TITLE:
Improve the Government Strategic Petroleum Reserves
AUTHORS:
Xiucheng Dong, Zhongbing Zhou, Hui Li
KEYWORDS:
Strategic Petroleum Reserve; Panic Buying; Drawing Rights Allocation; Efficiency
JOURNAL NAME:
Advances in Chemical Engineering and Science,
Vol.3 No.4A,
September
25,
2013
ABSTRACT: The potentiality that the current government strategic petroleum reserves (GSPRs) can be improved by the pre-allocation of GSPR drawing rights has been neglected. This paper proposes to pre-allocate the GSPR drawing rights, and proves that by doing this the efficiency of GSPR and the society’s incentive to finance GSPR can be improved. Particularly, the example demonstrates that the incentive improvement can be very significant. Since it takes huge expenditure on GSPR and it is very important to gain support from the consumers by improving GSPR, the proposal is quite worth considering.