United States Supplanted by China's Thirst for Oil

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.

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  • Report this Comment On October 13, 2013, at 11:57 AM, BigFED wrote:

    I have little knowledge of the geography, topology and geology of China, but since the United States and China are ROUGHLY the same in geographic area, it would seem reasonable to expect China to have comparable domestic oil resources. To what extent are those being (or not being) developed?

    Then we can concentrate on OUR importation and domestic production!

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