Oil Imports of China and U.S. Are Too Close To Call and They Are the World's Largest Importer Altern
(Reference of the Internet of Information) According to the media of America, The United States was arguably the world's largest oil importer in the past few decades. Last year, China imported more oil than the United States because of Chinese rising demand and the increase of U.S. shale oil production. China's oil importer exceeds U.S. for the first time. China seems to be at the center of the world of crude oil imports.
According to Bloomberg News's reporter on 17th, June, since then, the price of oil has fallen to $30 per barrel. The number of rigs being shut down by U.S. oil companies has reached the highest level in modern history, so that oil production has started to fall and imports are rebounded. Chinese oil companies have also halted production and kept demand growth. Now, the two countries' imports are too close to call. This will satisfy the organization of the petroleum exporting countries (OPEC).
According to the U.S. energy information administration, in March, U.S. oil imports averaged 8.40 million barrels every day, which is the highest level since August 2013. The volume of imports was about 330,000 barrels per day more than China's importers.
The report said that American oil production has fallen by 5.9 percent since its peak in April 2015, and oil companies have stopped 80 percent of the country's rigs since October 2014. After years of decline in shale oil production, importers have finally picked up.
Meanwhile, China's economic growth boosted the volume of imports as four times as the production in early 2005, making it the world's second-largest oil consumer. In April 2015, China's monthly oil imports exceeded the U.S. for the first time, and in February it surpassed the U.S. again.
China's oil production hit its biggest drop in May, the report said, because oil companies including petro China and CNOOC cut oil drilling operations. The decline in domestic oil production has made the country more rely on imports from the Middle East and Russia, said Gordon guan in an email, a head of Asian oil and gas research laboratory.
China recently also allows small independent refineries, known as "teapots", to start importing oil directly, and it can prompt new buyers. Amrita Sen, chief oil economist at energy vision consultancy in London, UK, said, “I don't think the U.S. will always overtake China. In particular in this situation that demand for crude oil from China's 'teapot' refinery has continued to rise.”
Drilling equipment in an oil field in Bash Gil oil company. (The picture is from Reuters)