My newest article in http://theenergycollective.com/. This time I wrote about effect of Hormuz for countries in Southeast Asia. It’s a top post is Oil topic today.
Nowadays, it seems like everyone stares at the board of oil prices. The rising oil price due to the growing Iran-related tensions on oil, LNG and oil products markets has resulted in strong reasons for every government, especially in a net importing country, to adjust the price in every gas station.
For example in Indonesia, all of the seven refineries owned by Pertamina, National Oil Company, blend their mix of crude from domestic production with imported oil from Persian Gulf states. About 45% of Indonesia’s national fuel demand, or about 75% of fuel demand in Java, is imported from Iran. It’s not difficult to imagine what would happen if the crisis there escalates.
You may read the full article here.
ASEAN is one of the fastest growing economic regions in the world and has a fast rising energy demand driven by economic and demographic growth. ASEAN has been demonstrating a sharp rebound from the global crisis. In 2010 the region’s real GDP grew above the world average with some countries even recording two-digit economic growth. Total GDP of the region in 2010 was US$1,850 (at current prices) having grown by 7.4 percent from the previous year. The population of ASEAN reached 598.5 million in 2010, 1.3 percent more than the previous year.
The region’s economic and population growth had resulted in a consequential increase in final energy consumption. With the assumed GDP growth rate of 5.2 percent per annum from 2007 to 2030, it was estimated the final energy consumption increase to 427 MTOE (million tons of oil equivalent) in 2010 and will grow at an average annual rate of 4.4 percent to 1,018 MTOE in 2030 (ACE and IEEJ; the 3rd ASEAN Energy Outlook: BAU Scenario). This growth is very much higher than the world’s average growth rate of 1.4 percent per year in primary energy demand over 2008-2035 (IEA World Energy Outlook 2010).
In view of the high economic growth and need of energy supply, the challenge to ensure a secure supply of energy is an overriding concern for ASEAN. Energy is crucial to the transformation of ASEAN into a stable, secure, prosperous, rules-based, competitive, resilient and integrated economic community by 2015, named ASEAN Economic Community (AEC) 2015, that was formulated as AEC Blueprint, declared by ASEAN Senior Officer on Energy (SOE) Leaders on the occasion of the 40th Anniversary of ASEAN and the 13th ASEAN Summit in Singapore in 2007. Read more
Around 160.3 million people in Southeast Asia haven’t had any access to electricity and almost 80% of them live in rural and remote areas.
Rural electrification is the process of bringing electricity to rural and remote areas. Electricity is being used not only for lighting and household purposes, but it also allows people to perform mechanization of many farming operations, such as threshing, milking, and hoisting grain for storage; in areas facing labor shortages, it resulted greater productivity at lower cost.
Energy alone is insufficient to maintain economic growth, but it is certainly necessary and access to electricity is one of the clearest and undistorted indications of a country’s energy poverty status.
Southeast Asia has made dramatic efforts in increasing the electrification rates in both rural and urban areas with an electrification rate jumping from 42.8% to 60.2% in only 6 years. Singapore led the progress by reaching full electrification of 100%, followed by Brunei Darussalam (99.7%), Malaysia (99.4%), Thailand (99.3%), and Vietnam (89.30%). However, Myanmar still stays at very low rate of 13%, Cambodia at 24% and Indonesia alone has more than 80 million people without access to electricity. In total, there are still 160.3 million people in the region has no access to electricity and almost 80% of them live in rural and remote areas.