World Energy and Security and South East Asia.

Transcript:World Energy and Security and South East Asia.:
World Energy and Security and South East Asia. Jeffrey David McGee Economics 5430 Asian Oil Reserves and Production. Proven Reserves in thousands of millions of barrels. Production in million tonnes. Asian Consumption Oil consumption in millions of tonnes. BP Statistical Review of World Energy June 2016 Source for image: http://www.resilience.org/stories/2015-06-23/asia-s-oil-consumption-at-record-high-while-production-peaked-in-2010/ Illustrating the divergence of oil consumption and production in Asia-Pacific from 1965-2013 Movement of oil Most of East Asia relies on imports from outside the area. The Middle East exported roughly 675.3 million tonnes of oil to East Asia in 2015. That is compared to 879.6 million tonnes of its total worldwide exports. China and other countries saw a larger then projected increase in importation partly due to production costs at home being higher then the prices for which countries could buy oil on the open market. Sources: BP Statistical Review of World Energy June 2016 and OilPrice.com: http://oilprice.com/Latest-Energy-News/World-News/Chinas-Oil-Import-Dependency-Deepens.html, http://oilprice.com/Energy/Energy-General/Growing-Asian-Oil-Demand-Could-Drain-The-Supply-Glut.html Energy Security and South East Asia Many Countries in Asia are growing more concerned about energy security. In 2011 the ERIA or Economic Research Institute for ASEAN and East Asia commissioned a report titled “STUDY ON THE DEVELOPMENT OF AN ENERGY SECURITY INDEX AND AN ASSESSMENT OF ENERGY SECURITY FOR EAST ASIAN COUNTRIES” http://www.eria.org/RPR-2011-13.pdf It outlined 8 challenges for energy security. The 2 largest of 8 concerns was reliance on Middle Eastern Oil, and self sufficiency. Concern 1) Self Sufficiency Currently Malaysia and Vietnam have energy self-sufficancy at 132.9% and 127% respectively. This allows for much of its valuable petroleum based energy sources to be exported to countries with greater energy demands such as China and Japan who stand at 93.1% and 18.7% energy self-sufficient respectively. Source Table 2-3 Quantitative Assessment of Energy Security Working Group (2011), ‘Developing an Energy Security Index’ in Koyama, K. (ed.), Study on the Development of an Energy Security Index and an Assessment of Energy Security for East Asian Countries, ERIA Research Project Report 2011-13, Jakarta: ERIA, pp.7-47 As many Asian countries strive for self sufficiacy through alternative energy sources another avenue they turn to is sea exploration and the exploitation of off shore oil reserves. Little evidence of Oil in contested regions. Concern 2) Disruption of Middle Eastern supply chain. In 2014 China received 52% of its oil from the Middle East. Source While Japan gets 83% of its oil from the Middle East. Source These large numbers leave China and Japan vulnerable to