Asia-Pacific Energy Officials Support Continued Implementation of APEC Oil and Gas Security Initiative

Energy ministers of the 21 Asia-Pacific Economic Cooperation (APEC) member economies expressed their support for the continuation of the APEC Oil and Gas Security Initiative (OGSI) in an effort to improve the capacity of the APEC region to respond to such emergencies as disruptions in oil and gas supply.

In a joint statement issued following the conclusion of the 12th APEC Energy Ministers’ Meeting held here this week, the ministers said they recognize that for developing economies, the costs of rehabilitation and rebuilding can be prohibitive, as recovery efforts could account for a substantial share of the economy’s gross domestic product.

In calling for the continuation of the OGSI, the APEC energy officials maintained that beyond the cost of reconstruction, a disruption of fuel supply and breakdown in energy infrastructure interdependencies could seriously affect the free flow of goods and services within an economy and within the region itself.

The creation of the OGSI was proposed by Japan and was approved for implementation in November 2014. The project is scheduled to be completed by December 31 this year.

The total cost of the project is US$ 732,630.

The primary purpose of the initiative is to help economies address the issue on energy supply security, and on how to deal with the threats of possible supply shortage and/or emergency situations.

The OGSI is a continuation of the APEC Oil and Gas Security Exercises (OGSE) project to put forward the directive of the 11th APEC Energy Ministers’ Meeting held in Beijing, China on September 2, 2014.

The project has broader coverage, consisting of three major pillars: the OGSE, the Oil and Gas Security Network (OGSN), and the Oil and Gas Security Studies (OGSS).

The OGSE seek to establish “Oil and Gas Security Exercise Model Procedure” as a guiding framework for the economies.

The OGSN, on the other hand, is tasked to transmit updated information on oil and gas security through a newsletter.

Meanwhile, the OGSS will involve the conduct of research on issues related to oil and gas security and will publish one or two reports per year.

Examples of research themes for the OGSS include the potential impact of political and social instability in the Middle East, the impact of Arctic melting on new opportunities for oil and gas resources and trade routes, and the current situation of oil and gas storage in the APEC region and the possibility of building a stockpile system.

Recent studies show that the APEC demand for oil and natural gas significantly exceeds internal production and the APEC relies heavily on outside sources. (PNA) LGI/PND/EDS