Southeast Asia energy security is long-term concern, House panel told

Southeast Asia energy security is long-term concern, House panel told

Southeast Asia's long-term oil and gas security remains uncertain despite
current global supply abundance and low prices, the National Bureau of Asian
Research's Energy Security Program director told a US House Foreign Affairs
subcommittee.

Energy and national security are synonymous and will remain a key strategic
worry for the region's governments, especially China, Japan, South Korea,
and India, which are all key powers, Mikkal E. Herberg said during a Sept. 8
hearing of the Asia and the Pacific Subcommittee.

"The governments in Asia remain deeply concerned about heavy dependence on
supplies from the Middle East," Herberg said in his written statement. "This
dependence is rising as low-cost production rises in the Persian Gulf while
at the same time production is declining from many other parts of the world,
including sharp recent declines in US unconventional production.

"Asia, especially China, will need to play a greater role in supporting
political stability in the Middle East and security of the sea lanes from
the Persian Gulf to Asia," he said. "Collaboration between the US and China
on security of the Indo-Pacific sea-lanes will be essential to energy
security for Asia. This is a key strategic challenge for the US and the rest
of oil import-dependent Asia."

China recently became the world's largest oil and gas investor as its
national oil companies sought overseas supplies, Herberg said. This further
accentuates its growing importance in global energy security diplomacy, he
noted.

"It is expanding its diplomatic and strategic footprint across the world's
key energy exporting regions with important implications for US strategic
and foreign policy influence, especially in the Middle East," Herberg said.
"The US will need to find ways to work with China to collaborate on our
common interests in providing security and strengthening political stability
in these key energy exporting regions, including the Middle East, Africa,
Central Asia, and Latin America."

Regional cooperation needed

Regional cooperation is paramount as diverse cultures and national
boundaries affect much of Southeast Asia's energy infrastructure, but many
countries' governments prefer to go-it-alone for now, the subcommittee's
chairman observed in his opening statement. "Energy options are limited
throughout much of Asia, and the fact remains that regional cooperation will
be necessary to overcome the energy shortage conundrum," Rep. Matt Salmon
(D-Ariz.) said.
Salmon said the US began shale gas exports by sea this year and is projected
to become the world's third-largest LNG supplier within 5 years.

"Asian buyers already have contracted to purchase more than half the US
supply of LNG, and will continue to affect global energy policy on a massive
scale," Salmon said. "The Asia-Pacific needs American leadership to assist
with the security concerns of our partners and allies, to maintain the rule
of law and freedom of navigation crucial to energy security, and to provide
critical energy supplies and access to new energy technologies."

Herberg noted that LNG supplies will be important to Asia's ability to make
a more rapid shift from coal toward much less carbon intensive gas during
the long transition to renewable energy supplies.

"US LNG exports are a key factor in today's much lower LNG prices, along
with growing supplies from Australia and elsewhere," Herberg said. "US LNG
exports are also extremely important to Asia's ability to diversify its LNG
imports away from potentially unstable suppliers and to maintain affordable
prices. This is especially important to Japan and South Korea, key US allies
in the region and the two largest LNG importers in the world."

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Ref:
http://www.ogj.com/articles/2016/09/southeast-asia-energy-security-is-long-t
erm-concern-house-panel-told.html?cmpid=EnlDailySeptember92016&eid=287675795
&bid=1523742

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John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com