ASEAN’s oil bill to reach $240b by 2035: IEA
The thirst for oil in Southeast Asia will result in oil imports worth $240 billion annually by 2035, leaving nations exposed to price shocks, the International Energy Agency (IEA) warned on October 2.
The region will consume more than 5 million barrels of oil per day – double the current levels of consumption – to fuel its economic growth, the IEA said. Total energy demand is expected to increase by more than 80 per cent over the same period, according to the agency.
The 10 ASEAN members will need to invest a total of around $1.7 trillion in energy-supply infrastructure between now and 2035, the IEA predicted. It forecast the region would become the world’s fourth-largest oil importer, after China, India and the European Union.
“Increasing reliance on oil imports will impose high costs on Southeast Asian economies and leave them more vulnerable to potential disruptions,” the IEA said.
Imported oil will cost the equivalent of 4 per cent of GDP across the zone, with Thailand and Indonesia likely to see their bills triple to nearly $70 billion a year by 2035.
ASEAN nations are expected to slash exports of natural gas and coal as they divert abundant resources to burgeoning domestic demand for energy, in a region where roughly 134 million people lack access to electricity.
For example, nearly two-thirds of Cambodians do not have access to electricity, half of Myanmar’s population and around a quarter of Indonesians, a total of around 66 million people.
“Coal is emerging as the fuel of choice because of its relative abundance and affordability in the region,” the study said, adding there is an “urgent need for more efficient coal-fired power plants”.
Resource-rich Indonesia will see its coal production surge by nearly 90 per cent as it cements its place as the world’s top exporter of steam coal, the forecast said. The IEA blamed $51 billion of fuel subsidies for cramping investment in renewable or more efficient energy sources while boosting smuggling, mainly of oil, to areas where prices are higher.
The thirst for oil in Southeast Asia will result in oil imports worth $240 billion annually by 2035, leaving nations exposed to price shocks, the International Energy Agency (IEA) warned on October 2. The region will consume more than 5 million barrels of oil per day - double the current levels of consumption - to fuel its economic growth, the IEA said. Total energy demand is expected to increase by more than 80 per cent over the same period, according to the agency. The 10 ASEAN members will need to invest a total of around $1.7 trillion in energy-supply infrastructure...
The thirst for oil in Southeast Asia will result in oil imports worth $240 billion annually by 2035, leaving nations exposed to price shocks, the International Energy Agency (IEA) warned on October 2.
The region will consume more than 5 million barrels of oil per day – double the current levels of consumption – to fuel its economic growth, the IEA said. Total energy demand is expected to increase by more than 80 per cent over the same period, according to the agency.
The 10 ASEAN members will need to invest a total of around $1.7 trillion in energy-supply infrastructure between now and 2035, the IEA predicted. It forecast the region would become the world’s fourth-largest oil importer, after China, India and the European Union.
“Increasing reliance on oil imports will impose high costs on Southeast Asian economies and leave them more vulnerable to potential disruptions,” the IEA said.
Imported oil will cost the equivalent of 4 per cent of GDP across the zone, with Thailand and Indonesia likely to see their bills triple to nearly $70 billion a year by 2035.
ASEAN nations are expected to slash exports of natural gas and coal as they divert abundant resources to burgeoning domestic demand for energy, in a region where roughly 134 million people lack access to electricity.
For example, nearly two-thirds of Cambodians do not have access to electricity, half of Myanmar’s population and around a quarter of Indonesians, a total of around 66 million people.
“Coal is emerging as the fuel of choice because of its relative abundance and affordability in the region,” the study said, adding there is an “urgent need for more efficient coal-fired power plants”.
Resource-rich Indonesia will see its coal production surge by nearly 90 per cent as it cements its place as the world’s top exporter of steam coal, the forecast said. The IEA blamed $51 billion of fuel subsidies for cramping investment in renewable or more efficient energy sources while boosting smuggling, mainly of oil, to areas where prices are higher.
