Will the Rampage Caused by Mother Nature Disrupt China’s Glorious Olympic Dreams?

China's top economic planning agency urged oil and power companies to make sure there are enough supplies for earthquake-hit areas and for the Beijing Olympic Games in August.

China's fuel consumption has been rising by more than 10 percent a year. Gasoline and diesel supplies ran short in October, disrupting trucking and causing long lines at filling stations in key export-driven areas of China's booming south.

Government departments and companies should ensure sufficient supplies of oil, gas, and electricity for areas hit by China's devastating May 12 earthquake, as well as for the games, the National Development and Reform Commission said on its Web site.

It said the country's two top oil producers China Petroleum & Chemical Corp., or Sinopec, and PetroChina should ensure fuel production, especially diesel, for the summer.

Coal production should resume as quickly as possible in Sichuan province, the site of China's worst earthquake in three decades, it said. Sichuan accounts for 4 percent of the country's coal production.

Beijing responded by ordering PetroChina and Sinopec to fill the gap by importing diesel and gasoline. The government has promised to share the cost with the
companies by giving them tax rebates and other aid.

Can China Pull Out of This Mess In Time For the Olympics?