China, which has four times the population of the United States, is expected to demand 6.6% more energy per year for the foreseeable future. Because internal production will likely not keep up, the booming energy sector in the United States will play a role in satiating some of that forecasted demand. Coal and natural gas are almost certain to be the main resources filling this void.
China makes very little attempt to keep its coal usage a secret. With low-quality coal facing a possible ban from entering the country, there is one company in the U.S. poised to benefit that investors can access in our domestic stock market. Peabody Energy (NYSE:BTU), with its Powder River Basin and Australian operations, leads our country in coal production and would love to become a key contributor to China's energy utility network.
From the standpoint of natural gas, China drastically lags the U.S. both in production and technology. That's why Fool.com contributor, Tyler Crowe, likes the prospects of energy service providers Halliburton (NYSE:HAL) and Schlumberger (NYSE:SLB). Both of these companies are already getting involved in China's natural gas industry.
Tune in below for the conversation between Tyler and Motley Fool energy analysts Joel South and Taylor Muckerman regarding this up-and-coming trend that could really add to domestic companies' revenue streams.
Joel South owns shares of Schlumberger. Taylor Muckerman owns shares of Halliburton. Fool contributor Tyler Crowe has no position in any stocks mentioned. The Motley Fool recommends Halliburton. Try any of our Foolish newsletter services free for 30 days. We Fools may not 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.