China drives its way to No. 1 oil importer, overtaking US(Read article summary)
China has topped the US as the biggest importer of oil in the world, according to government data released this week. It's more evidence of China's economic growth and America's shale drilling boom and increased efficiency, which has reduced its reliance on foreign oil.
China has edged out the US as the world's biggest oil importer.
The shift reaffirms China's ballooning growth and middle-class demand for cars and other amenities. Meanwhile, the US has slogged through five years of post-recession economic malaise. Americans are driving and buying less than before.
That's only half the story. The other half is one of American innovation in domestic energy conservation and resource extraction. A shale oil and gas boom has driven production to levels not seen in decades and efficiency standards have slashed household and vehicular consumption. The deployment of renewables and alternative fuels have contributed to a supply-demand balance that works very much in consumers' favor.
Suddenly, the US won't have to rely on foreign oil as much as it used to, and China will. That gives the US an economic and perhaps geopolitical advantage while China deepens its dependence on volatile, oil-rich countries in the Middle East.
"There’s no question that China will continue to grow – maybe not at strong rates as it has in past, but if you look at any metric relative to the US, their per capita vehicle ownership is still low so they’ve got lots of headroom to grow," says Aaron Brady, senior director at IHS Cambridge Energy Research Associates, in a telephone interview. "The bottom line is that their middle class is getting bigger and those people are buying cars and driving them."
China's reign as No. 1 importer began least month, according to data released earlier this week by the US Energy Information Administration. China used 6.30 million barrels per day more than it produced. Consumption in the US, meanwhile, outstripped production by 6.24 million barrels per day. That trend will continue through 2014, EIA projects.