Cooperation needed on Asian oil demand<\/p>\n
BEIJING (Reuter): Explosive oil demand in Asia, particularly
\nin China, must be met by cross-border cooperation and
\npartnerships if the region is to avoid confrontation, former OPEC
\nSecretary-General Subroto said yesterday.<\/p>\n
\"The key word in meeting the very serious energy issues in
\nAsia, and particularly in China, is cooperation and partnership,
\nnot confrontation,\" Indonesia's Subroto, chairman of the
\nFoundation of Indonesian Institute for Energy Economics, told a
\nChina petroleum conference.<\/p>\n
\"International and multilateral energy cooperation with China
\nshould not only be limited to increasing production, but should
\nalso include energy technology and conservation,\" he said.<\/p>\n
Oil consumption in the Asia-Pacific had overtaken western
\nEurope and by 1998, standing at 21.3 million barrels per day
\n(bpd), it would exceed North America's 21.2 million bpd, Subroto
\nsaid, adding that Asia-Pacific's consumption figure would rise to
\n23.5 million bpd by 2000.<\/p>\n
China's refined oil products consumption alone would take up
\n4.2 million bpd in 2000 and 6.8 million bpd in 2010, he said.<\/p>\n
Crude oil production in Asia was unlikely to see a significant
\nincrease, rising to only 7.0 million to 7.2 million bpd in 2000
\nfrom the current 6.76 million bpd, making the region a huge
\nimporter, Subroto said.<\/p>\n
Asia's future oil deficit has intensified the search for new
\noil sources and the Spratly Islands cluster is viewed as a
\npotential flashpoint.<\/p>\n
The Spratlys, a group of possibly oil-rich isles, reefs and
\nshoals in South China Sea, are claimed wholly or in part by
\nChina, the Philippines, Vietnam, Taiwan, Malaysia and Brunei.<\/p>\n
Disputes between China, Vietnam and the Philippines have
\nflared over the islands in recent months. In May, foreign
\nministers of China and the Philippines agreed to settle their
\ndisputes peacefully.<\/p>\n
Speaking to Reuters later, Subroto said disputes over the
\nSpratlys were a matter of concern, but added: \"China is wise to
\nagree to settle the issue with ASEAN (Association of Southeast
\nAsian Nations) on a multilateral basis, not bilaterally.\"<\/p>\n
Subroto told the conference that China's dependency on oil
\nimports, forecast to rise to 47 percent of its consumption from
\njust five percent in 1993, would bring about deeper alliances
\nbetween China and the members of the Organization of Petroleum
\nExporting Countries (OPEC), particularly the Middle East.<\/p>\n
\"The most dynamic element will be the new linkage between
\nChina and the Persian Gulf, particularly with Iran and very
\nlikely, also with Iraq,\" Subroto said.<\/p>\n
But he said the current low price of oil could impede new
\ndiscoveries and investment in infrastructure like deep-sea ports
\nand pipelines.<\/p>\n
\"While the abundance of potential energy resources is not in
\ndispute, the present combination of high energy demand and low
\nenergy prices may, however, not be sustainable,\" he said.<\/p>",
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"sponsor": "Okusi Associates",
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