TheJakartaPost

Please Update your browser

Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.

Jakarta Post

Seeking low-carbon energy security for Asia-Pacific

The disaster that struck Japan, putting a question mark on the safety of nuclear energy, coupled with spiking oil prices is pushing energy security to the top of the regional agenda

Dennis Blair and Satya W. Yudha (The Jakarta Post)
Washington, DC/Jakarta
Mon, April 18, 2011

Share This Article

Change Size

Seeking low-carbon energy security for Asia-Pacific

T

he disaster that struck Japan, putting a question mark on the safety of nuclear energy, coupled with spiking oil prices is pushing energy security to the top of the regional agenda. Moreover, this month China has endorsed its 12th Five-Year Plan, with the goal of sustaining its phenomenal pace of economic growth, while addressing climate change and environmental issues.

China is at the epicenter of Asia’s rapid economic expansion, with India following closely behind, but this is also fueling the enormous appetite for energy resources across the entire Asia-Pacific region.

The torrid pace of development, coupled with rising consumer purchasing power and a boom in vehicle sales, has made this region “ground zero” for world energy demand.

Over the past two decades, the Asia-Pacific has accounted for more than two-thirds of the growth in world energy demand. From 2001-2007 China’s energy demand alone grew by the equivalent of all the annual energy consumption of Latin America, in effect creating a new continent of energy demand in just six years.

To meet this staggering rise in demand, high-price oil imports have skyrocketed and the region increasingly relies on large domestic supplies of inexpensive coal, leaving an ominous carbon footprint behind.

The energy security and environmental impact of these energy trends is not limited by political boundaries, raising important questions for us all: How can Asia-Pacific countries simultaneously sustain economic growth, meet escalating energy needs and strengthen energy security, while curbing the rise in greenhouse gas emissions?

There is a clear tension among these goals, as well as a pressing need for near-term solutions in our pursuit of cleaner energy.

Ideally, energy security for a country or the region can be achieved by reducing dependence on imported fuels and diversifying its energy supply and developing a non-carbon based fuel portfolio.

While renewable energy development is vitally important, it will take decades to scale up to meet the challenge.

Most countries in the Asia-Pacific region today rely heavily on oil and coal instead of the increasingly abundant and lower-emitting natural gas. Natural gas has a significantly lighter carbon footprint than oil or coal, emitting 29 percent and 44 percent less carbon dioxide, respectively.

Fortunately, on a global perspective, the availability of natural gas is increasing dramatically.  The advent of innovative shale gas production technology and development of coal bed methane, accessing vast new reserves, has transformed prospects for natural gas supplies.

And supplies of liquefied natural gas (LNG) are booming in the Asia-Pacific from Australia, eastern Russia, Papua New Guinea, and even Timor Leste that supplement large supplies from Indonesia and Malaysia. The result is a plentiful — and now more affordable — supply of the cleaner-burning fuel.

Given the massive scale of economic growth currently underway, expanding natural gas use for fueling cars, public transportation and power generation could bring immediate benefits: Improved air quality, better health and less environmentally degrading CO2. By switching toward natural gas powered vehicles, we could reduce carbon emissions by nearly 30 percent. The impact is measurable when you consider that three-quarter of a million new cars hit the road in Beijing alone last year.

However, from a local perspective, for a developing country as well as an oil and gas producer such as Indonesia, the country now faces the serious challenge of fast-rising domestic energy demand with declining oil and gas production. The country’s energy policy makers are looking closely at domestic energy requirements and best policies to meet these needs.

This includes moving prices towards international parity, improving the energy sector investment climate, and developing electricity generation capacity. While some very difficult decisions have been made over recent years, many challenges remain. Indonesia’s lack of infrastructure has resulted in domestic reliance on coal and the export of its cleaner, natural gas resources for economical and commercial benefits.

The Asia-Pacific region accounts for two-thirds of global coal demand to fuel a mushrooming demand for electricity. This is perhaps where natural gas has the most important role to play.

The surge of reliable and affordable natural gas supplies could help wean the region from its heavy reliance on coal as well as expensive oil imports, providing a near-term, affordable, and cleaner bridge fuel until clean alternatives such as nuclear, hydroelectric, solar, and wind become larger scale.  

As energy security for the Asia-Pacific’s hungry economies gains importance, so does securing climate stability. Using natural gas as a bridge to a lower-carbon future is one point energy industry leaders and environmental advocates agree on.

Yet, realizing the potential of natural gas calls for much greater investment for infrastructure and innovative energy and climate policy initiatives.

And mobilizing the required resources will call for unprecedented collaboration and commitment among industry, governments, and regional organizations.

While natural gas is not a panacea for low-carbon economy, we cannot afford to let the search for perfect solutions get in the way of accessible near-term solutions.

Too much is at stake: A global economy grappling with limited energy sources, increasing demand, and an expanding carbon footprint leading to greater climate insecurity. Abundant, affordable and cleaner-burning, natural gas may be — at least for the near-term — both an achievable and a smart solution.

 

Dennis Blair is on the Board of Directors of The National Bureau of Asian Research and former United States Director of National Intelligence. Satya W. Yudha is Member of Commission VII (Energy, Mineral Resources, Environment, Research and Technology), House of Representatives, The Republic of Indonesia.

{

Your Opinion Matters

Share your experiences, suggestions, and any issues you've encountered on The Jakarta Post. We're here to listen.

Enter at least 30 characters
0 / 30

Thank You

Thank you for sharing your thoughts. We appreciate your feedback.