China set to become world’s largest oil importer

China set to become world’s largest oil importer

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Starting from October 2013, China is all set to become the world’s largest net oil importer and will overtake the United States, which are currently maintaining the top position. China will soon be at the top, due to rising Chinese demand and increasing US production.

china oil

A report was submitted by the US Energy Information Administration (EIA) which stated that in 2014, the net oil imports of China will exceed those of the US and the gap will keep on increasing in the future. Meanwhile, the Asian country is already the biggest energy user in the world and the second largest oil consumer, after the US.

The report went on to state that the shift has been driven by continuous growth in Chinese demand, increased US oil production and the stagnant or decreasing demand in the US market. The website of the EIA displayed a graph which showed that the net imports of China are increasing steadily, but the net imports of the US are falling at a faster rate. The crossover point is expected to come in about two months, which is in October 2013.

Li Dongchao, commentator, wrote, “China and the US will no longer be pure competitors in the energy sector – China is likely to import energy in bulk from the US”. He went on to say that the rising independence of US energy will support the rejuvenation of US manufacturing, which will renew competition with Chinese manufacturing.

Photo Credits: RT