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Taiwan Province has poor oil reserves, with an annual import volume of 44.38 million tons, why is the oil price so low?

author:Twilight time
Taiwan Province has poor oil reserves, with an annual import volume of 44.38 million tons, why is the oil price so low?

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Edit | Twilight time

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Preface

Under the leadership of the party, the mainland has now achieved the goal of becoming well-off for the whole people, and cars have gradually entered thousands of households!

But then there is another problem, the car needs to be refueled, and the price of oil has naturally become a "heart disease" for the majority of car owners.

Taiwan Province has poor oil reserves, with an annual import volume of 44.38 million tons, why is the oil price so low?

Compared with the mainland's oil price, which is as high as more than eight yuan, the oil price in Taiwan Province is on average more than one piece lower, so what is the situation?

Taiwan is dependent on imports for oil

As we all know, the sheer size of the region determines the extent to which a country is capped. The reason why the land of China is full of talents is because of its vast territory, which can raise more people, so the probability of giving birth to talents is naturally higher.

In contrast, the resources possessed by the small island are pitiful, and the same is true of Taiwan Island!

Taiwan Province has poor oil reserves, with an annual import volume of 44.38 million tons, why is the oil price so low?

Taiwan Island is mainly rich in forests and marine resources, and there is still a relative lack of fossil energy such as oil and gas.

According to relevant statistics, the reserves of coal resources in the Taiwan region are only 100 million tons. So far, Taiwan's internal coal resources have inevitably been depleted.

Energy depletion can be fatal to the development of a region!

Taiwan Province has poor oil reserves, with an annual import volume of 44.38 million tons, why is the oil price so low?

According to 2018 statistics, the oil reserves that have been discovered are about 2.4 million barrels, about 330,000 tons.

But when compared to the 700 million tons of oil consumed by the mainland every year, it pales in comparison.

Taiwan Province has poor oil reserves, with an annual import volume of 44.38 million tons, why is the oil price so low?

In fact, if Taiwan's natural reserves are simply relied upon, its development is naturally quite slow, and it may even lead to the regression of civilization.

But now is the era of globalization, so the scarce resources can be imported from other regions to a certain extent.

Taiwan Province has poor oil reserves, with an annual import volume of 44.38 million tons, why is the oil price so low?

For example, oil resources, in 2018 alone, Taiwan Province's crude oil imports have reached 44.38 million tons, and as of this year, I am afraid that it has already risen to an astonishing number.

According to this situation, oil needs to be imported, so the oil price on Taiwan Island should be ridiculously high, but the fact is completely the opposite, the average oil price on Taiwan Island is about one piece lower than that on the mainland, what is the situation?

Information source: Wantong Business Network - Taiwan Island Oil Price Query
Taiwan Province has poor oil reserves, with an annual import volume of 44.38 million tons, why is the oil price so low?

The real reason for the low oil prices on the island of Taiwan

The reason for the low oil prices on Taiwan Island can also be considered from two aspects: internal reasons and external reasons, first of all, internal reasons.

After all, Taiwan is only an island, and the industrial system cannot be fully rolled out, so the level of Taiwan's automobile manufacturing industry is quite backward, which also shows that most of Taiwan's automobiles must also rely on imports.

Taiwan Province has poor oil reserves, with an annual import volume of 44.38 million tons, why is the oil price so low?

If you want to import a car, you will naturally incur tariffs. For example, importing a car with a displacement of less than 2000cc is subject to 17.5% customs duty, 25% excise tax and 5% sales tax. Combined, these taxes represent a full 54.2 percent.

In other words, if you want to buy a car in Taiwan, you need to pay half the price higher than the normal price to get it!

But that's not the end of it! Car owners in Taiwan also need to pay fuel tax and license tax every year, and a car with a 1.6T displacement needs to pay a tax of about 2,800 yuan.

Taiwan Province has poor oil reserves, with an annual import volume of 44.38 million tons, why is the oil price so low?

This has invisibly dissuaded many people who want to buy cars.

So the people who own cars in Taiwan are basically not bad for money. And those who don't have the ability can't afford to keep a car at all.

Taiwan Province has poor oil reserves, with an annual import volume of 44.38 million tons, why is the oil price so low?

Externally, it is due to the low cost of transporting imported oil.

Taiwan Island is surrounded by the sea, and sea freight is the cheapest of all transportation.

Combined with the geographical location of Taiwan Island, it is also located on the only way to the energy transportation channel, so the comprehensive situation has led to the cost of transporting oil to Taiwan Island to a pole.

Taiwan Province has poor oil reserves, with an annual import volume of 44.38 million tons, why is the oil price so low?

Taking the mainland's oil transportation as an example, the mainland often buys oil from Saudi Arabia, and the freight cost generated is also a rather terrifying figure.

Oil freight rates above 1,000 nautical miles are generally $800-$1,000 per tonne. In other words, you basically need one dollar per nautical mile per tonne of oil.

Taking the mainland Tianjin Port to receive oil as an example, the oil tanker from Saudi Arabia arrived at the mainland Tianjin Port, of which the journey was about 6479.23 nautical miles, combined with the handling of the ship, the transportation cost of a ton of oil has been as high as 9000 US dollars.

Taiwan Province has poor oil reserves, with an annual import volume of 44.38 million tons, why is the oil price so low?

That's why the state has been looking for ways to shorten transport routes. On the one hand, it is for safety reasons, and on the other hand, it is also for cost savings.

And the expenses generated by these freight costs are naturally included in the cost, so they will be evenly distributed on every owner who refuels his car.

Taiwan Province has poor oil reserves, with an annual import volume of 44.38 million tons, why is the oil price so low?

In contrast, Taiwan Island is more than 800 nautical miles less than the port of Tianjin, and if you reduce this cost, you will find that in fact, the oil prices on Taiwan Island and the mainland are almost the same.

So the question is, apart from the cost of transportation, what other factors are causing the price of oil on the mainland to be so high?

Source: China News Network 2014-6-23 - "Taiwan's Oil Price Hits a 9-Month High, Economic Sector: Do Not Easily Intervene in Oil Prices"
Taiwan Province has poor oil reserves, with an annual import volume of 44.38 million tons, why is the oil price so low?

The reason why oil prices are expensive on the mainland

In fact, the reason why oil prices in the mainland have always been difficult to come down is that the core is still too much demand!

The continent is a big oil demander, and the amount of 700 million tons consumed a year alone is already more than the vast majority of countries in the world.

Taiwan Province has poor oil reserves, with an annual import volume of 44.38 million tons, why is the oil price so low?

Since its discovery, oil has been classified as a strategic resource by many countries.

However, there are a lot of oil reserves on the mainland, but the mainland still chooses to import from outside, which shows that the country is taking precautions.

Taiwan Province has poor oil reserves, with an annual import volume of 44.38 million tons, why is the oil price so low?

For the mainland, cars have long been not the exclusive domain of the rich and noble, and cars have basically entered thousands of households, which has caused the mainland's demand for oil to be even greater.

Another reason is that the mainland's oil prices will also be affected by the international situation.

Taiwan Province has poor oil reserves, with an annual import volume of 44.38 million tons, why is the oil price so low?

Today's international community is not very peaceful, and the sanctions and blockades imposed by Western countries on the mainland may affect the safety of oil carriers, which will virtually increase the cost of transporting oil, and these costs will naturally need to be borne by consumers.

Of course, there is another factor, that is, the country's support for new energy is increasing, which is one of the reasons why oil prices have not been able to fall for a long time.

Taiwan Province has poor oil reserves, with an annual import volume of 44.38 million tons, why is the oil price so low?

Nowadays, fossil energy is slowly entering a state of depletion, so it must be replaced by new energy, which is also the core element of the country has been vigorously supporting the development of new energy vehicles.

epilogue

In contrast, it is easy to understand the reason for the low oil prices on the island of Taiwan.

Tariffs alone have already made many people feel a huge burden, not to mention the fuel tax and other purchase taxes, while the car purchase tax on mainland China is basically paid in a lump sum, and there is no need to pay these costs every year.

Taiwan Province has poor oil reserves, with an annual import volume of 44.38 million tons, why is the oil price so low?

Taiwan's so-called relatively low oil prices are actually just a calculation of the cost into the original car purchase cost, while the mainland has reduced the cost and passed it on to the oil price.

In contrast, the mainland's policy is more dominant, so you don't need to be too entangled.

Information source: Jintou.com - today's oil prices
Taiwan Province has poor oil reserves, with an annual import volume of 44.38 million tons, why is the oil price so low?
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