Oil in Asia

Authored by: Tilak K. Doshi

Routledge Handbook of Energy in Asia

Print publication date:  October  2017
Online publication date:  October  2017

Print ISBN: 9781138999824
eBook ISBN: 9781315656977
Adobe ISBN:

10.4324/9781315656977.ch8

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Abstract

Growing oil demand from developing Asia has shifted the attention of the global oil industry eastwards. With Asian demand accounting for two-thirds of global oil demand growth in the past quarter century, import volumes have increased and trade with the Middle East has strengthened. Asia sourced two-thirds of its oil imports from the Middle East whereas Asian imports accounted for three-quarters of Middle Eastern oil exports. However, in the prevailing low price conditions, producers from all over the world are aggressively competing with Middle Eastern suppliers to gain Asian market share. Developing Asia will continue to dominate oil demand growth, although China’s share in the future incremental demand growth is likely to diminish. Oil trade transactions in the region are predominantly based on price assessments reported by price reporting agencies and despite recent concerns and controversy about transparency and valuation of these assessments, there seems to be no plausible alternative. The national oil companies (NOCs) tend to dominate the Asian oil market on both the demand and supply sides. Importing country NOCs are playing a significant role in acquiring crude oil resources globally.

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