Ready For a Flood Of Chinese Diesel and Gasoline

Reuters: From hinterland to wonderland: China's 'teapot' refinery boomtowns
The teapots, who previously refined mostly low-margin fuel oil and whatever excess crude they might be able to pick up from the big state-owned players, have seen their profits soar.

The rise of the teapots, now able to refine imported crude in much greater quantities into high-value products such as gasoline, is reshaping the local economy in dilapidated rural parts of eastern Shandong province, where most are located.

At Boxing, a new Volkswagen dealership and freshly painted condos line a four-lane highway leading to the Chambroad refinery, where smoke-stacks rise above swathes of farmland.

Refinery workers in their 20s have driven up vehicle sales and home prices in this rural town of around 10,000 people.

"We are aiming to sell 400 cars this year, doubling last year's sales," a manager at the Volkswagen dealership said. He declined to give his name due to company policy.

"Young people from the refinery have a lot of savings but nowhere to spend. They bought cars so they can commute between their work place and the nearest city."
China is awash in crude oil at the moment, and soon it will be awash in refined products......

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