27 July 2006
VIENTIANE - ASEAN energy ministers on Thursday called for cooperation to boost renewable energy use amid soaring oil prices which cast a shadow over one of the world’s most dynamic regional economies.
The 10-member Association of Southeast Asian Nations (ASEAN) called for more investment and research to raise the region’s capacity in renewable energy such as bio-fuels and hydro-power as alternatives to oil.
“Reliable, adequate and affordable energy supplies are essential for strong and sustainable economic growth and competitiveness,” the ministers said in a joint statement.
Communist Laos, which hosted the one-day ministerial meeting, took the opportunity to appeal to ASEAN nations for financial and technical support to upgrade its low energy capacity.
“I would like to request the ASEAN energy ministers to assist Laos in harnessing its existing energy potential by encouraging their entrepreneurs to invest in hydro-power and thermal power development in Laos,” Laotian Prime Minister Bouasone Bouphavanh said in an opening address.
Laos, one of the poorest countries in ASEAN, depends solely on hydro-power plants for its electricity.
Another poor ASEAN member, Cambodia, made a similar appeal.
“Cambodia has an abundant potential of hydro-power resources but development is hampered due to the lack of technical expertise and high investment cost,” Cambodian Energy Minister Suy Sem said.
Even for oil-rich Brunei, current high prices have put pressure on the government as it subsidizes motor fuel and electricity.
“This is a dilemma for us as any removal, or partial removal of the subsidies on the pump prices or on electricity would have a negative impact on the economy,” Brunei’s Energy Minister Pehin Dato Haji Yahya Bakar said.
Oil prices, which were just around 20 dollars per barrel at the beginning of 2002, now stand at around 75 dollars.
Experts said current high oil prices were mainly driven by tensions in the Middle East, home to 80 percent of global oil resources, and soaring demand in the United States, China and Japan, the world’s top three oil consumers.
Tensions have risen with the ongoing violence between Israel and Hezbollah militants in Lebanon, Iran’s nuclear standoff with the West and worsening sectarian violence in Iraq.
The ASEAN ministers said high oil prices were “clear risks” to the region’s economy, which is expected to grow by a brisk 5.7 percent this year despite rising energy costs, according to the Asian Development Bank.
“The ministers agreed that ASEAN member-countries should stive to stay resilient and address the challenges of soaring oil prices,” they said.
Also to reduce ASEAN’s dependency on imported oil, the ministers called for further cooperation to improve emergency response such as oil stockpiling in the event of supply disruptions.
Currently, ASEAN has 14 cross-border interconnecting power projects and the ministers said the region should develop more to ease the impact of soaring oil prices on each economy.
The ministers of ASEAN, which controls 40 percent of oil and natural gas resources in the Asia-Pacific region, will later hold talks with energy officials from China, Japan and South Korea.
ASEAN groups Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam.
Indonesia is ASEAN’s largest oil and natural gas producer, as well as the region’s top oil importer, while Singapore, Thailand and the Philippines are the most oil dependent ASEAN economies.
The 10-member Association of Southeast Asian Nations (ASEAN) called for more investment and research to raise the region’s capacity in renewable energy such as bio-fuels and hydro-power as alternatives to oil.
“Reliable, adequate and affordable energy supplies are essential for strong and sustainable economic growth and competitiveness,” the ministers said in a joint statement.
Communist Laos, which hosted the one-day ministerial meeting, took the opportunity to appeal to ASEAN nations for financial and technical support to upgrade its low energy capacity.
“I would like to request the ASEAN energy ministers to assist Laos in harnessing its existing energy potential by encouraging their entrepreneurs to invest in hydro-power and thermal power development in Laos,” Laotian Prime Minister Bouasone Bouphavanh said in an opening address.
Laos, one of the poorest countries in ASEAN, depends solely on hydro-power plants for its electricity.
Another poor ASEAN member, Cambodia, made a similar appeal.
“Cambodia has an abundant potential of hydro-power resources but development is hampered due to the lack of technical expertise and high investment cost,” Cambodian Energy Minister Suy Sem said.
Even for oil-rich Brunei, current high prices have put pressure on the government as it subsidizes motor fuel and electricity.
“This is a dilemma for us as any removal, or partial removal of the subsidies on the pump prices or on electricity would have a negative impact on the economy,” Brunei’s Energy Minister Pehin Dato Haji Yahya Bakar said.
Oil prices, which were just around 20 dollars per barrel at the beginning of 2002, now stand at around 75 dollars.
Experts said current high oil prices were mainly driven by tensions in the Middle East, home to 80 percent of global oil resources, and soaring demand in the United States, China and Japan, the world’s top three oil consumers.
Tensions have risen with the ongoing violence between Israel and Hezbollah militants in Lebanon, Iran’s nuclear standoff with the West and worsening sectarian violence in Iraq.
The ASEAN ministers said high oil prices were “clear risks” to the region’s economy, which is expected to grow by a brisk 5.7 percent this year despite rising energy costs, according to the Asian Development Bank.
“The ministers agreed that ASEAN member-countries should stive to stay resilient and address the challenges of soaring oil prices,” they said.
Also to reduce ASEAN’s dependency on imported oil, the ministers called for further cooperation to improve emergency response such as oil stockpiling in the event of supply disruptions.
Currently, ASEAN has 14 cross-border interconnecting power projects and the ministers said the region should develop more to ease the impact of soaring oil prices on each economy.
The ministers of ASEAN, which controls 40 percent of oil and natural gas resources in the Asia-Pacific region, will later hold talks with energy officials from China, Japan and South Korea.
ASEAN groups Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam.
Indonesia is ASEAN’s largest oil and natural gas producer, as well as the region’s top oil importer, while Singapore, Thailand and the Philippines are the most oil dependent ASEAN economies.
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