East Asia readies emergency measures amid oil supply worries
East Asia readies emergency measures amid oil supply worries
Teresa Cerojano, Associated Press, Manila
Facing runaway oil prices and security fears, East Asian officials meeting in Manila are making emergency plans that include creating oil reserves and finding alternative sources for their energy imports.
Energy ministers from Japan, China, South Korea and the 10- member Association of Southeast Asian Nations or ASEAN will emphasize the need for oil stockpiling, with Japan and South Korea providing technical help, according to draft documents for the Manila meeting obtained Monday by The Associated Press.
"We recognize the importance of oil stockpile for supply security," said a draft of a joint statement, expected to be issued Wednesday.
The ministers also are calling for better sharing of oil data, more oil trade within Asia, dialogues and partnerships with producers outside the region, and investment in the alternative energy sources such as natural gas.
They want to bolster the dissemination of coal technology, and said coal is an abundant and economical energy resource in this region - which is becoming the world's largest consumer of energy.
A separate draft document said ASEAN energy ministers will adopt the so-called ASEAN Plan of Action for Energy Cooperation for 2004-2009 - a plan for promoting sustainable energy development, integrated regional energy infrastructures and promoting energy security. It also contains policies for market reforms and liberalization, as well as environment protection.
Among the planned projects is the implementation of an ASEAN power grid and trans-ASEAN gas pipeline.
"The ministers reaffirmed that interconnected networks of electricity grids and gas pipelines in the ASEAN region offer significant benefits both in terms of security, flexibility and quality of energy supply and greater competition," the document said.
ASEAN ministers also agreed to consider a system of regional coordination during petroleum shortages and emergencies. In addition, they'll consider pursuing dialogue with Middle East oil- producing countries to promote stable and secure energy markets in the region.
ASEAN, a market of more than 520 million people with a total area of 4.5 million square kilometers (1.74 million square miles), has a combined gross domestic product of about US$610 billion and total trade of more than $700 billion.
East Asian senior officials began the meeting in Manila's Makati financial district on Monday. It will be followed by a meeting of energy ministers from the ASEAN countries and Japan, South Korea and China on Wednesday. Ministers from the 21-member Asia-Pacific Economic Cooperation, which includes the United States, will meet on Thursday.
Philippine Energy Secretary Vincent Perez, chairman of the Manila meetings, said "the global energy industry is continuously faced with different challenges that could pose threats to the economic gains already achieved by the member economies."
Last month's attacks at the eastern Saudi oil center of Khobar that killed 22 people, most of them foreigners, have worsened fears terrorists could cripple Saudi Arabia's ability to export oil.
The Organization of Petroleum Exporting Countries agreed last week to raise its production ceiling by up to 11 percent over two months to help soothe a nervous market.
ASEAN's members are Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam.