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.