Asia Pacific Countries: the World Leading Center of Demand for Hydrocarbons

Abstract

The paper argues, that the Asia Pacific countries have emerged as the new masters of global demand for oil and to a lesser extent for natural gas. That is especially evident if one uses incremental indicators of energy resource consumption. Keeping up high rates of economic growth in countries of low and medium level of development, which established themselves as exporters of manufactured goods in the world division of labor, imperatively requires an increased consumption of hydrocarbons. Stagnation or decrease in their own production of oil and natural gas in the situation of a growing demand for hydrocarbons results in stronger dependence on imports. In its turn, that opens additional opportunities for oil exporting countries to expand their export niches. The Asia Pacific region lags behind other leading global economic centers in the implementation of active climate policy and promotion of a low carbon paradigm. The peak in oil demand in the region will be achieved several years later than in the rest of the world. The authors conclude that a dynamic growth of demand for oil and natural gas in the Asian Pacific countries will be maintained for at least two decades.