China set to become biggest oil importer

BEIJING, : China is set to overtake the United States as the worlds largest net oil importer from October, according to the US figures, due to a combination of rising Chinese demand and increased the US production.

Next year, Chinas net oil imports will exceed those of the US on an annual basis and the gap between them will continue to widen, the US Energy Information Administration (EIA) said.

The shift has been driven by steady growth in Chinese demand, increased oil production in the US, and stagnant or weakening demand in the US market, the EIA said in a report.
A graph on the EIAs website shows Chinas net imports steadily rising, with those of the US falling at a faster rate, and says the crossover point comes in two months time.

Growing petroleum production in the US has been largely driven by the increasing use of sometimes controversial hydraulic fracturing, known as fracking.

The US annual oil output is expected to rise 28 per cent between 2011 and 2014 to nearly 13 million barrels per day, while Chinese production is forecast to grow by 6pc over the period, and will stand at just a third of US production in 2014, the EIA said.

Meanwhile, Chinas liquid fuel use will increase 13pc over the period to more than 11m barrels per day while US demand hovers close to 18.7m barrels per day.

That is below the United States peak consumption level of 20.8m barrels per day in 2005, the EIA added.

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, wrote commentator Li Dongchao.AFP