China Breaks Oil Import Records

China as set a new record for crude oil imports, by the constant rising demands it will continue to surpass its breaking record. With new refineries ramping up and hopes to grow for easing of trade tensions with the U.S. will bolster the economy.

Even Though the economic expansion has slow; the pace of growth is still required ever more oil. China has imported an unprecedented 11.18 MMbpd in November which surpasses the U.S. high-water mark of 10.77 MMbpd set in June 2005. China’s purchases will continue to rise into this year as the new refineries in Zhejiang and Zhanjiang increase runs, and as a widely anticipated tax rebate boosts domestic production of marine fuel.

The strength of U.S. oil imports in the mid-2000s created a political crisis, President George W. Bush famously said, “America is addicted to oil,” and passed measures to curb demand, such as requiring corn ethanol be mixed into gasoline. Ultimately, it was the shale boom, spurred by high oil prices, low interest rates and technological innovation, that began to displace foreign barrels. Although the U.S. is still the world’s second-biggest importer of crude, in September it became a net exporter for the first time in 70 years when oil products like gasoline, diesel and propane are included.

Import dependency weighs similarly on China’s leaders, who have leaned on state-owned energy giants such as PetroChina Co. to boost domestic oil and gas output. The government is also one of the world’s biggest supporters of renewable energy, electric vehicles and high-speed rail, all of which should help depress oil demand in the long run.