Asia's booming oil demand seen problematic<\/p>\n
TOKYO (Reuter): Asia's booming demand for oil could cause
\nmajor supply problems in the years to come, an influential
\nJapanese business group says.<\/p>\n
The Keizai Doyukai (Japan Association of Corporate
\nExecutives), which in May called for the establishment of an
\nAsian oil body to combat the problem and manage energy relations
\nwith the Middle East, released a more detailed proposal yesterday
\nof medium- to long-term oil storage facilities to be shared by
\nAPOED member countries, collaboration in oil refining and the
\ncollection of regional energy statistics.<\/p>\n
\"The basic supply and demand situation in Asia is really quite
\nserious,\" said Ariyoshi Okumura, who conceived the plan.<\/p>\n
\"The Asia-Pacific region is consuming oil from outside the
\nregion at a rate of 10 million barrels per day (bpd). If you are
\na believer in linear extrapolation, we will need 20 million bpd
\nby 2010,\" he said.<\/p>\n
\"While I find that projection questionable, it is a certainty
\nthat energy shortages in Asia will be a serious concern for our
\ngovernments in the years to come,\" said Okumura, chairman of
\nKeizai Doyukai's Committee on Middle East-Japan Relations.<\/p>\n
The group's proposal calls for the formation of a Tokyo-based
\noil body that would operate under the auspices of the Asian
\nPacific Economic Cooperation (APEC).<\/p>\n
Named the Asia-Pacific Organization for Energy Dialogue
\n(APOED), the organization would provide Asian countries a forum
\nwith which to coordinate their energy needs.<\/p>\n
\"Many governments in Asia do not publish any kind of detailed
\nenergy statistics,\" Okumura said.<\/p>\n
\"In order to cope with any emergency supply disruptions, the
\nAsia Pacific has to have significant stockpiles. Japan has a
\nsubstantial stockpile, but we don't know anything about China,
\nnor do we know and about the strategic reserves of Indonesia,
\nSouth Korea, Singapore and Malaysia,\" he said.<\/p>\n
Okumura says the proposal is currently being considered by
\nAPEC, adding: \"APEC should be a very appropriate organization to
\nprovide an umbrella for this initiative.\"<\/p>\n
He also added that more contact was needed with oil-producing
\ncountries.<\/p>\n
\"We have to broaden the base of human contact with the Middle
\nEast and Central Asia. That's the only way for Japan to have
\nenergy security, economic security,\" he added.<\/p>\n
Okumura said he hoped to see the oil body set up within take
\nthree years.<\/p>\n
\"Five years is too long, one too short, because so many
\ngovernments are involved,\" Okumura said.<\/p>\n
The APOED proposal notes that Japan's target of reducing the
\noil portion of its energy needs to 50 percent by 2010 has become
\nunrealistic because of delays in nuclear power development.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/asias-booming-oil-demand-seen-problematic-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}