Asia has a tremendous need for energy sparked by China’s own famish and ever growing appetite a high official of Malaysia’s national oil agency said in Kuala Lumpur, on June 10th 2013.
Oil and Gas Appetite in Asia Growing
China consumed 9.8 million barrels of oil per day in 2011, while the United States consumed approximately 19 million barrels per day for the same period, with China’s sharp consumption growth adding to Asia’s appetite for energy. The figures for 2012 are not available on the IEA website.
This appetite for energy is the result of China’s growth and this has led to decades of stable figures in the past forChina’s Gross Domestic Product (GDP), Petronas President & Group CEO, Tan Sri Datuk Shamsul Azhar Abbas said.
“Asia’s growth is expected to be 7.6 for 2013-2014. The two thirds of global growth is due to China and Asia’s economic growth,” he said in his presentation on the state of the industry address during the 17th Asia Oil & Gas conference.
China’s GDP stood at US$ 7.32 trillion in 2011 and 8.28 trillion in 2012, or a growth of 7.8%, according to news reports. The International Monetary Fund (IMF) expects global growth to be reach 3.5% in 2013, from 3.2% in 2012, thus Asia’s robust growth forecast put it as the fastest growing region, globally.
Malaysia’s Prime Minister Najib Tun Razak said, during his intervention at the Kuala Lumpur Convention Centre (KLCC) while officiating the Asia Oil & Gas Conference, that a 7% growth for China was relative for the hugely populated Asian nation.
“China’s growth momentum is fading, amidst weak external demand in its key export markets. Of course, being China, these things are relative,” he said.
The Prime Minister concurs with the Petronas ceo that China is set to be the world’s largest economy within the next three years.
“But for much of the world, and for our region in particular, China’s prospects affect confidence in our own,” he said.
Nevertheless, Shamsul said South East Asia has a commendable growth rate with demand for infrastructure, regional trade adding to the overall growth level in Asia.
He added that the growth factor has created a huge appetite for energy, petrol and gas to the extent that Asia will be consuming 1.3 times more energy than North America and 1.5 times more than Europe, notwithstanding that the region will consume 8.3 times more energy than Africa.
“This is the first time that non-Organization for Economic Co-operation and Development (OECD) nations were overtaken by Asia,” he said.
Nevertheless, the World Bank, in its latest East Asia and Pacific update in April this year, cut its GDP growth projection for China by 0.1% to 8.3% in 2013, citing Beijing’s ongoing efforts to restructure its economy.
According to the US Energy Information administration (EIA), the United States consumption of total primary energy stood at 97.3 quadrillion BTU in 2011 whereas China’s annual total primary energy consumption amounted to 109.6 quadrillion BTU in the same year.
A quadrillion BTU is about the total amount of energy measured in 1 trillion cubic feet of natural gas or 170 million barrels of crude oil.
Author: Kazi Mahmood