ABSTRACT
China has been forced to sell Sheng-li crude to the Philippines for only $7 to $9 per barrel, and even at that discount price, Australia, New Zealand, and Japan have refused to buy. Given that the Chinese have significant quantities of oil, there are major variables affecting its delivery to both external and internal markets. Pipelines, railroads, port facilities, tankers, and other transportation mechanisms are required to carry petroleum from the production site to the point of eventual use. A concerted pipeline construction effort has largely replaced the former means of transport, providing faster, more efficient delivery of oil to principal distribution points. In addition, the asymmetry between foreign and domestic demand for both crude and refined products, plus the People's Republic of China's ability to control its own supply investment and aggregate demand, give China a wide range of acceptable product output levels.
