United States Supplanted By China’s Thirst For Oil

Click one of these fan favorites to get started: Apple ; Google ; Ford . United States Supplanted by China’s Thirst for Oil October 13, 2013 | Comments (1) This segment is from this week’s Digging for Value, in which sector analysts Joel South and Taylor Muckerman discuss energy and materials news with host Alison Southwick. The twice-weekly show can be viewed on Tuesdays and Thursdays. It can also be found on Twitter, along with our extended coverage of the energy and materials sectors, @TMFEnergy . The United States appears to be losing its status as the world’s top oil importer, thanks to the colossal turnaround in crude oil production caused by hydraulic fracturing and horizontal drilling techniques. While China’s 6.3 million barrels per day of crude oil imports are just slightly higher than the United States 6.1 million per day, the trajectory of the two countries’ crude consumption varies significantly. The United States could be the world’s largest crude oil producer by the end of the decade while oil demand drops as fuel efficient cars takeover our highways. Meanwhile, China is in the early stages of unconventional shale exploration, and with a growing middle class, fuel consumption is set to rise precipitously. See more on this topic in the following video. Stocks to buy to play the United States energy bonanza Record oil and natural gas production is revolutionizing the United States’ energy position. Finding the right plays while historic amounts of capital expenditures are flooding the industry willpad your investment nest egg. For this reason, The Motley Fool is offering a comprehensive look at three energy companies set to soar during this transformation in the energy industry. To find out which three companies are spreading their wings, check out the special free report, ” 3 Stocks for the American Energy Bonanza .” Don’t miss out on this timely opportunity; click here to access your report — it’s absolutely free. Alison Southwick and Taylor Muckerman have no position in any stocks mentioned. Joel South owns shares of Ford. The Motley Fool recommends and owns shares of Ford.

The United States Pivot to the Pacific

American flag, courtesy of U.S. Navy/Flickr

A New York Times editorial captured the level of concern regarding Chinas emerging capabilities: Beijing’s drive to extend its military and territorial reach is making America’s close allies in the region nervous and raising legitimate questions about American diplomacy and future military procurement. The commander of America’s Pacific forces recently revealed that China could soon deploy a ballistic missile capable of threatening American aircraft carriers in the region. The Pentagon has a long history of hyping the Chinese threat to justify expensive weapons purchases, and sinking well defended ships with ballistic missiles is notoriously hard. But what should rightly concern American military planners is not so much the missile but the new Chinese naval strategy behind it. China seems increasingly intent on challenging United States naval supremacy in the Western Pacific. At the same time it is aggressively pressing its claims to disputed offshore islands in the East and South China Seas. Washington must respond, carefully but firmly. The Pentagon must accelerate efforts to make American naval forces in Asia less vulnerable to Chinese missile threats by giving them the means to project their deterrent power from further offshore. While some express genuine concerns that China cannot rise peacefully, many others downplay the threat posed by China and weapons such as the DF-21D missile, saying that state-on-state conflict between the United States and China is not likely a result of the so-called Walmart Factor that intertwines the two economies. However, what some observers miss is the fact that China need only make the cost of the United States intervening in western Pacific affairsto counter Chinese threats against Taiwan or Chinas bullying of its smaller neighbors in disputes over the South China Seatoo high that U.S. intervention is no longer a reasonable deterrent option. And increasingly, many observers recognize Chinas approach to protecting its interests and challenging the United States where it supports its core strategic interests demands a naval response, a response that is being operationalized by Chinas substantial naval building program, with some suggesting China has embraced Mahan far more than the United States has. The United States Congressional Research Services Ron ORourke summed up the situation in an article in the U.S.