SE Asian oil policy: More talk than action

Journal Article · Tue Apr 01 04:00:00 EST 1986 · World Oil; (United States)

OSTI ID:5901234

Lucas, T C

Reality ran a poor second to rhetoric at the Ascope (Asean Council on Petroleum) conference held in Kuala Lumpur, Malaysia, last December. Speakers included key energy officials from India, China, Australia and Ascope member nations (Indonesia, Malaysia, the Philippines, Singapore, Thailand and Brunei). The speakers all looked forward to greater exploration efforts, increased reserves and accelerated field development. All agreed that more foreign participation, in one form or another, is necessary to achieve these goals. And it was conceded that contracts with foreign companies should be reevaluated in light of present conditions. Everyone was aware that the industry faces serious economic problems. Oil prices were forecast to continue their decline until 1992 or later. Some warned of $18 oil (which is turning out to be optimistic). Nor was the bad news limited to oil. Kuala Lumpur and Singapore stock exchanges shut down for three days during the conference because of loss of investor confidence and troubles with local banks. The world tin market was collapsing, and prices of other commodities important to Southeast Asia were falling. The chairman of Thailand's Petroleum Authority told the conference that the region's economic performance was the worst in more than 20 years. While all this -falling oil prices, weak local economies, dependence on foreign oil companies for some significant part of E and P was acknowledged, the acknowledgement seemed purely formal. The gut-level acceptance necessary for action simply was not there. The specter of $18 oil was never taken seriously, even by those who raised it, and, rhetoric aside, no one seemed willing to make the necessary changes in contract terms.

• OSTI ID: 5901234
• Journal Information: World Oil; (United States), Journal Name: World Oil; (United States) Vol. 202:4; ISSN WOOIA
• Country of Publication: United States
• Language: English

Related Subjects

02 PETROLEUM
020700 -- Petroleum-- Economics
Industrial
& Business Aspects
29 ENERGY PLANNING, POLICY, AND ECONOMY
292000 -- Energy Planning & Policy-- Supply
Demand & Forecasting
293000 -- Energy Planning & Policy-- Policy
Legislation
& Regulation
294002* -- Energy Planning & Policy-- Petroleum
ASIA
CONTRACTS
ECONOMICS
ENERGY POLICY
EXPLORATION
FORECASTING
GEOLOGIC DEPOSITS
GOVERNMENT POLICIES
INDUSTRY
MEETINGS
MINERAL RESOURCES
OIL FIELDS
PETROLEUM DEPOSITS
PETROLEUM INDUSTRY
PRICES
RESERVES
RESOURCES
SUPPLY AND DEMAND