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#65164 - 17 Nov 07 15:30 The mystery of ASIA
riccardo Offline
Pujangga

Registered: 12 Oct 05
Posts: 2195
Loc: Jakarta
While this article makes some important points, it's impossible to follow what the fuck he's talking about half the time, or more appropriately, WHERE the fuck he's talking about. He doesn't seem to know what ASIA is? (SEE BOLDED PHRASES BELOW... such as this: "Indonesia is Asia's only OPEC member.") Is this guy on severe medication. Is he from Texas? What gives? There's an official map of ASIA below the article if anybody else is confused about which countries comprise ASIA.


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Asia's potentially dangerous oil addiction

Michael Richardson, Singapore

When leaders of the world's most powerful energy cartel meet in Saudi Arabia today, it will underline Asia's increasing reliance for vital oil supplies on the politically volatile Middle East. The summit, only the third in the 47-year history of the Organization of Petroleum Exporting Countries (OPEC), will seek long-term assurances of demand for OPEC oil. Only then will OPEC be prepared to invest in new production capacity.

The U.S. and Europe are trying to cut dependence on foreign oil by developing alternative sources of energy, such as biofuels and nuclear power. They are also implementing energy saving measures. So is Asia. Japan has led the way in energy efficiency. However, the region's big emerging economies, China and India, rely heavily on oil for transport fuel as they seek to raise the living standards of over two billion consumers. They have difficulty imposing restraints on growth.

The International Energy Agency warned in its annual report last week that if unfettered energy demand in China and India continues, they will more than double their oil consumption by 2030. As a result, they will be importing more oil -- 23 million barrels per day -- than the U.S. and Japan do now. Together, China and India would account for 45 percent of the increase in global energy demand in this period.

So Asian buyers will be keen to give the assurances that OPEC seeks. Overall, the Middle East supplies nearly 75 percent of Asia's oil imports, making the region by far the most important customer. The bargain with OPEC is one the Asia-Pacific region cannot avoid. It comes with benefits but also economic and political risks.

OPEC controls 42 percent of the world's oil output. The IEA, which monitors the global energy outlook for industrialized nations, says that this share is set to rise to 52 percent by 2030 as oil supply from outside the Middle East declines and global demand, especially from Asia, rises. OPEC's crude oil revenues this year are forecast to hit US$658 billion, thanks to the surge in oil prices.

As a result, trade between Asia and the Middle East is booming as Asian economies sell manufactured goods to the region and buy oil and natural gas in return. Millions of Asians work in the Persian Gulf and Middle East investors are increasingly active in Asia.

However, Asia's addiction of Gulf oil is creating a potentially dangerous dependence. In the short-term, it is showing up in the form of higher inflation as the rising cost of transport fuel feeds into price increases for food and services. Soaring food prices drove Chinese inflation to its highest level in more than a decade last month.

The consumer price index rose 6.5 percent in October from a year earlier. China lifted government-set prices for petrol and diesel by nearly 10 percent on Nov. 1 after holding off for more than year for fear that it would stoke inflation and popular resentment. The recent protests in Burma that were brutally repressed by the military regime started in August after diesel prices doubled overnight.

Hefty subsidies on politically sensitive fuel prices cost tax payers tens of billions of dollars a year in countries like China, India and Indonesia. They are intended to cushion the impact of inflation and prevent a political backlash. But as the oil price has risen this year, these subsidies have mounted to unsustainable levels.

Indonesia is Asia's only member of OPEC. However Jakarta's influence in the organization has diminished in recent years as Indonesia has moved from being a significant crude oil exporter to a chronic net oil importer. The longer-term risk for Asia of growing dependence on OPEC oil is that it gives the cartel more power to dictate prices to the region. And if any of the Middle East's many conflicts erupt into war, Asia will suffer most from a disruption in oil supply.

The writer, a former Asia editor of the International Herald Tribune, is a security specialist at the Institute of South East Studies in Singapore.

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Attachments
maps_of_world_asia1.JPG


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#65165 - 17 Nov 07 15:51 Re: The mystery of ASIA [Re: riccardo]
Dilli Offline
Pujangga Besar

Registered: 26 Feb 06
Posts: 8044
Loc: Nearest Bar
Pftt, seems like the only error he has made was in omitting the words "South East"

Also, I did not find it hard to follow at all.
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#65169 - 17 Nov 07 16:59 Re: The mystery of ASIA [Re: Dilli]
riccardo Offline
Pujangga

Registered: 12 Oct 05
Posts: 2195
Loc: Jakarta
Quoting: Dilli
...I did not find it hard to follow at all.


The U.S. and Europe are trying to cut dependence on foreign oil by developing alternative sources of energy, such as biofuels and nuclear power. They are also implementing energy saving measures. So is Asia.

Then please explain the bit above. Does that mean places in Asia, like Saudi Arabia, are trying to "cut dependence on foreign oil" and is "developing alternative sources of energy" ...???

I seriously don't think this writer knows, or grasps, the fact that "THE MIDDLE EAST" is part of ASIA! I know many Indonesians often get that confused and can't seem to get their heads around it, but this guy's name sounds like a Westerner. Very strange.



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Just here proffering my pearls to swine, my throat to wolves and my trousers to the flagpole.

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#65175 - 18 Nov 07 05:37 Re: The mystery of ASIA [Re: riccardo]
Dilli Offline
Pujangga Besar

Registered: 26 Feb 06
Posts: 8044
Loc: Nearest Bar
Nah, He's a Kiwi but it is obvious that the piece was written for readers from a country with limited geographical knowledge.

"U.S. education officials were shocked when a nine-nation survey found that one in five young Americans (18- to 24-year-olds) could not locate the United States on an outline map of the world! "


Source:http://www.educationworld.com/a_lesson/lesson/lesson071.shtml


Edited by Dilli (18 Nov 07 07:17)
Edit Reason: "i' before "e" except after "c"
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