China Number One for Crude Oil Imports

For the first time ever, China has become the largest importer of crude oil, worldwide. The United States had held poll position in crude oil imports for many years, but figures released in April show that China has overtaken the North American giant.

The Financial Times reports that Chinese imports of crude oil were up to an all-time high of 7.4 million barrels per day (bpd), which is a clear 200,000 more than the USA is importing.

Two Sides to the Coin

These figures can partly be explained away by the ongoing boom in the US shale industry right now. The practice of hydraulic fracturing, or fracking, is seen by many as the way forward for energy production – although of course, it is not without its critics, either. In any case, the exponential popularity of shale gas and oil extraction has led to a steady drop in US oil importation over recent years. In the last 10 years, the country’s oil imports have fallen by a staggering three billion bpd.

On the other hand, China’s industry is going from strength to strength. They already overtook the US as leading consumers of energy worldwide back in 2010 and have now continued to expand their consumption of resources with this latest landmark. Indeed, in the same 10-year-period, China has increased their own energy spending by 700%.

The news comes despite a recent mini-slump in the Chinese economy and their widening approach to fuel production and consumption. The country now produces much of its compressed natural gas (CNG) from the biogas produced by its many small and remote landfill sites. Indeed, like the rest of Asia, China is beginning to wake up to the potential merits of biogas.

Projected Consumption in the Future

This diversification of energy use notwithstanding, it would be reasonable to expect China to retain its position at the top of the oil imports market for the foreseeable future. Over the next couple of months, it might well jostle for position with the United States as the power shift settles. But with Chinese industry continuing to grow, this will surely be accompanied by a steady increase in its oil consumption and importation.

Hopefully, as the above linked article suggests, this will go hand-in-hand with a more environmentally-conscious approach to waste disposal and land use. If the Chinese industry continues to expand at its alarming rate, such environmental prudence will become more of a necessity than an ideal if we are to avoid doing irrevocable damage to our atmosphere. Luckily, the country has made encouraging indications with respect to air quality monitoring, in particular.

Let’s hope they continue down that road.