EIA's August 2013 Short-Term Energy Outlook forecasts that
China's net oil imports will exceed those of the United States
by October 2013 on a monthly basis and by 2014 on an annual
basis, making China the largest importer of oil in the
The imminent emergence of China as the world's largest net
oil importer has been driven by steady growth in Chinese
demand, increased oil production in the United States, and a
flat level of demand for oil in the US market.
US total annual oil production is expected to rise by 28%
between 2011 and 2014 to nearly 13 million bpd, primarily from
shale oil, tight oil, and Gulf of Mexico deepwater plays. In
the meantime, Chinese production increases at a much lower rate
(6% over this period) and is forecast to be just a third of US
production in 2014.
On the demand side, China's liquid fuels use is expected to
grow by 13% between 2011 and 2014 to more than 11 million bpd
while US demand hovers close to 18.7 million bpd, well below
the peak U.S. consumption level of 20.8 million bpd in
Looking beyond 2014, higher US oil production and stagnant
or declining US oil consumption, coupled with China's projected strong oil demand growth
and slow oil production growth, suggest that once China
replaces the United States as the world's largest net oil
importer, the gap between net oil imports in China and the
United States will grow.
There are several different ways to measure oil import
dependence. Discrepancies in the way dependence is assessed
arise because oil is imported as crude oil but consumed as
refined products, of which crude oil is the main but not only
Net oil imports reflect the broadest measure of liquid fuels
and include the following elements in the volumes of oil
liquids produced and used within national borders: crude oil,
lease condensates, natural
gas liquids, biofuels, other liquids, and refinery processing gain, which in
the US has been roughly 1 million bpd in recent years.
Another common (and narrower) measure of oil import
dependence is the ratio of net imported crude oil to net crude
oil inputs to refineries. The US has emerged as a significant
net exporter of petroleum products in recent years and a
portion of US crude oil imports is used to produce products not
consumed domestically. The advent of China as the world's
largest importer based on the narrower measure occurs on a
different schedule than for the broader one, but the basic
trends and drivers remain the same as for the broader measure.
However, imports of crude oil alone do not automatically imply
domestic dependence on foreign supplies.