« Back
Energy, Materials, and Utilities

United States Supplanted by China's Thirst for Oil

China is overtaking the United States as the world's largest crude oil importer. This comes on the back of great unconventional production from the likes of Occidental Petroleum and ConocoPhillips.

This segment is from this week's Digging for Value, in which sector analysts Joel South and Taylor Muckerman discuss energy and materials news with host Alison Southwick. The twice-weekly show can be viewed on Tuesdays and Thursdays. It can also be found on Twitter, along with our extended coverage of the energy and materials sectors, @TMFEnergy.

The United States appears to be losing its status as the world's top oil importer, thanks to the colossal turnaround in crude oil production caused by hydraulic fracturing and horizontal drilling techniques.

While China's 6.3 million barrels per day of crude oil imports are just slightly higher than the United States 6.1 million per day, the trajectory of the two countries' crude consumption varies significantly. The United States could be the world's largest crude oil producer by the end of the decade while oil demand drops as fuel efficient cars takeover our highways. Meanwhile, China is in the early stages of unconventional shale exploration, and with a growing middle class, fuel consumption is set to rise precipitously.

See more on this topic in the following video.

Stocks to buy to play the United States energy bonanza 
Record oil and natural gas production is revolutionizing the United States' energy position. Finding the right plays while historic amounts of capital expenditures are flooding the industry will pad your investment nest egg. For this reason, The Motley Fool is offering a comprehensive look at three energy companies set to soar during this transformation in the energy industry. To find out which three companies are spreading their wings, check out the special free report, "3 Stocks for the American Energy Bonanza." Don't miss out on this timely opportunity; click here to access your report -- it's absolutely free. 

Alison Southwick and Taylor Muckerman have no position in any stocks mentioned. Joel South owns shares of Ford. The Motley Fool recommends and owns shares of Ford. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Energy, Materials, and Utilities
Joel South Joel South Fool Contributor

Joel is an energy and materials analyst for The Motley Fool. He is also a graduate of the University of Washington and a co-host of "Digging for Value". Be sure to follow The Motley Fool's energy and materials Twitter for all your energy and materials coverage.