New energy grips Asia

Arne Walther

ENERGY: A new world energy order is in the making, with Asia as a driving force. Mega projects are on the drawing board, affecting India as well.

Among these are projects for transnational pipelines to bring natural gas to a growing Indian energy market. With the centre of gravity shifting towards Asia, India stands centre stage in Asian and global energy endeavours.

Energy security is at the top of every country’s political agenda since energy affects commercial and political ties between countries. It fuels the world economy and impacts the environment. Energy impacts international relations and is impacted by it.

The world will need more and cleaner energy, used in a more efficient way and accessible and affordable to a larger share of its population.

The political challenge lies in operationalising this energy through national policies and bilateral, regional and wider global co-operation. Efforts to carve out a new Asian energy identity should be seen in this context.

Regional energy cooperation is being strengthened around the world and in Asia in particular. Asia has energy-hungry, growing economies in the east and south and ample reserves of oil and gas in the west.

Today, two-thirds of West Asian (Gulf country) oil exports find their markets in Asia. More than two-thirds of East Asia’s supply of oil comes from the Gulf.

India seized the moment in January 2005 when New Delhi organised a round-table under the global political umbrella of International Energy Forum (IEF).

Ministers representing more than half the world’s population, the bulk of the world’s oil and gas reserves and most of the growth in global energy demand, discussed on a pan-Asian regional basis their growing energy interdependence.

A new Asian energy identity was born. Former petroleum minister Mani Shankar Aiyar convened a supplementary round-table of ministers.

This was a meeting of major East Asian consumers and North and Central Asian producers in November 2005, co-hosted by Russia’s minister of industry and energy and facilitated by the IEF secretariat.

This new Asian energy identity coalesced further when Saudi Arabia’s minister of petroleum and mineral resources and Japan’s minister of economy, trade and industry convened the second Asian ministerial round-table in Riyadh in May this year.

The ministers called for greater cooperation and coordination among Asian energy exporters and importers.

They underscored the importance of joint efforts for market stability and transparency, increased investments, energy efficiency, and new technological solutions addressing environmental concerns and security of energy transport routes.

The growth of energy supply in West Asia will be key to meeting increasing East and South Asian demand. Asian regional joint ventures and cooperation can build an Asian strategic partnership.

The new Asian energy identity is an important dimension of the evolving multipolar world energy order and has consequences far beyond geographical Asia.

The global dialogue on energy today is no longer merely a bipolar one between the industrialised energy- importing Organisation for Economic Cooperation and Development (OECD) countries in the International Energy Agency (IEA) and the members of the Organisation of Petroleum Exporting Countries (OPEC).

It is now multipolar. It is good to see India playing an active role in IEF, the world’s largest gathering of energy ministers, where ministers engage in informal dialogue across traditional political, economic and energy policy lines.

Ministers not only from IEA and OPEC countries but also those from global players such as India, Russia, China and Brazil (BRIC) will increasingly impact the global scenario.

The dialogue between ministers in IEF recognises energy security as a shared responsibility for both energy-exporting and energy-importing countries.

India holds centre stage not only in the regional Asian theatre, but also in IEF. It will co-host along with Mexico the next IEF ministerial in April 2008.

India and other Asian countries have important perspectives to share and interests to promote in a deepening global dialogue on energy as the new world energy order takes shape.

(The writer is secretary general, IEF.)

Courtesy - Times of India