Will Chinese Demand Drive This Sector's Growth?

Updated

China, which has four times the population of the United States, is expected to demand 6.6% more energy per year for the foreseeable future. Because internal production will likely not keep up, the booming energy sector in the United States will play a role in satiating some of that forecasted demand. Coal and natural gas are almost certain to be the main resources filling this void.

China makes very little attempt to keep its coal usage a secret. With low-quality coal facing a possible ban from entering the country, there is one company in the U.S. poised to benefit that investors can access in our domestic stock market. Peabody Energy , with its Powder River Basin and Australian operations, leads our country in coal production and would love to become a key contributor to China's energy utility network.

From the standpoint of natural gas, China drastically lags the U.S. both in production and technology. That's why Fool.com contributor, Tyler Crowe, likes the prospects of energy service providers Halliburton and Schlumberger . Both of these companies are already getting involved in China's natural gas industry.


Domestic oil and gas service companies have taken a hit due to a slowdown in the natural gas drilling boom of the last couple of years. That's why Halliburton has increased its focus on international markets. Its water recycling prowess is sure to be a hit in China, which lacks the expendable resources necessary to truly exploit its predicted reserve base. That's why investors would be wise to consider Halliburton, one of the top companies in the business and one of those most in tune with the fracking market. To access The Motley Fool's new premium research report on this industry stalwart, simply click here now and learn everything you need to know about how Halliburton is positioning itself both at home and abroad.

Tune in below for the conversation between Tyler and Motley Fool energy analysts Joel South and Taylor Muckerman regarding this up-and-coming trend that could really add to domestic companies' revenue streams.

The article Will Chinese Demand Drive This Sector's Growth? originally appeared on Fool.com.

Joel South owns shares of Schlumberger. Taylor Muckerman owns shares of Halliburton. Fool contributor Tyler Crowe has no position in any stocks mentioned. The Motley Fool recommends Halliburton. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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