1. Energy Cooperation within Asia: Opportunities and Threats
Abolghasem Mahdavi Mazdeh
1

2. Brief Content
 Introduction
Global and Asian Demand and Supply of Energy
Geopolitics of Energy and Energy Security (World & Asia)
The Role of China, India and Iran
A Thorough Inference of Opportunities and Threats: A Hypothetical of
Model of Cooperation
Conclusions
2

3. Introduction
Increasing Energy Revenue in
Producing Countries
Consumption Public Budget
Energy
Energy Security
as a strategic Good
Role of Energy in the
Exhaustibility Consuming Countries Industrial Path
3

4. Global and Asian Demand and Supply of Energy
Table 1. World and Asia Production and Consumption of Oil
Oil (Thousand 2005 2006 2007 2008 2009 2010
Barrels Daily)
World Production 84603.24 84675.06 84591.88 85577.26 84419.02 86790.35
Asia Production 45781.73 45846.64 45701.27 47018.06 45910.47 47554.67
World Consumption 84086.68 85164.79 85760.64 85436.28 84683.31 87027.2
Asia Consumption 33947.49 34876.9 35366.69 36107.32 36874.37 38646.93
Source: EIA (2011)
Asia’s Share of Oil Production and Consumption of the World are respectively
%54 and %44 in 2010
4

5. Table 2. World and Asia Production and Consumption of Gas
Gas (Billion 2005 2006 2007 2008 2009 2010
Cubic Feet)
World 99791.59 103423.3 105630.8 108049.7 104786.6 112089.9
Production
Asia 51571.38 53926.75 55719.61 56235.26 54238.41 59860.91
Production
World 101831.8 104063.1 107627 110914.9 107244.9 115453.9
Consumption
Asia 47263.12 49222 51568.75 53429.44 52032.22 57250.4
Consumption
Source: EIA (2011)
Asia’s Share of Gas Production and Consumption of the World are respectively
%53 and %49 in 2010
5

6. Geopolitics of Energy and Energy Security (World & Asia)
Figure 1. World Marketed Energy Use by Fuel Type,
1990 - 2035 (quadrillion Btu)
Source: International Energy Outlook (IEO 2010)
Fossil Fuels have a high share in the energy consuming basket of the World
6

7. USA
Europe
Caspian Sea
(%17 Oil & %46 gas
Reserves)
Iran
China
& India
Persian Gulf
(%55 Oil & %40 Gas
Reserves)
Strategic Ellipse of Energy
7

8. Table 3. Reserves and Production of Oil and Gas in Persian Gulf and Caspian Sea
(2010)
Oil Natural Gas
Proved Proved
Production Production
Reserves Reserves
(TB per Day) (BCF)
((BB ((TCF
Persian Gulf 747.854 24795.87 2631.585 16039.23
Bahrain 0.12456 46.43458 3.25 432.6088
Iran 137.62 4251.58 1045.67 5161.287
Iraq 115 2408.465 111.94 46.01545
Kuwait 104 2450.37 63.5 414.3509
Oman 5.5 867.87601 30 957.0365
Qatar 25.41 1437.224 899.325 4121.261
Saudi Arabia 262.4 10521.0885 263.5 3095.713
United Arab Emirate 97.8 2812.8372 214.4 1810.953
Caspian Sea 235.814 17288.04 3170.67 30695
Azerbaijan 7 1040.91895 30 588.9129
Kazakhstan 30 1610.45847 85 306.7814
Russia 60 10124.06 1680 20915.44
Turkmenistan 0.6 202.37694 265 1599.77
Uzbekistan 0.594 105.49503 65 2122.82
8
Iran 137.62 4251.58 1045.67 5161.287

9. The Role of China, India and Iran
1) China
Figure 2. Energy Consumption in China, % of Total (2010)
Renewable Energy (%0.49)
Nuclear Energy Oil (% 17.62)
(%0.68)
Gas (%4.03)
Coal (%70.45)
Hydro Electricity (%6.7)
Source: BP, Statistical Review of World energy (2011)
In China, Oil with %17.62 of total energy consumed is
in the second place after coal
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10. Figure 3. The Trend of Consumption and Production of Oil in China, 2000-10
10000
Thousand Barrels per Day Consumption
8000
6000
4000
2000 Production
0
2003
2000
2001
2002
3004
2007
2005
2008
2009
2010
2006
year
Source: BP, Statistical Review of World Energy (2010)
In China, the rate of increase in consumption of oil is %90 but the rate
of increase in production is %25 in 2000-2010
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11. 2) India
Figure 4. Energy consumption in India, % of Total (2010)
Renewable Energy (%0.95)
Nuclear Energy Oil (% 29.66)
(%0.99)
Coal (%52.96) Gas (%10.62)
Hydro Electricity (%4.8)
Source: BP, Statistical Review of World Energy
In India, Oil with %29.66 of total energy consumed is
in the second place after coal
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12. Figure 5. The Trend of Consumption and Production of Oil in India 2000-10
,
3500
Thousand Barrels per Day
Consumption
3000
2500
2000
1500 Production
1000
500
0
2001
2003
2002
2008
2004
2005
2007
2009
2010
2006
2000
year
Source: BP, Statistical Review of World Energy (2010)
In India, the rate of increase in consumption of oil is %46.7 but the rate
of increase in production is %13.7 in 2000-2010 12

13. 3- Iran
Geopolitical Center of Strategic
Situation Ellipse of Energy
Importance of Iran
Easiest, Shortest &
Energy Transit
the Least Cost Way
13

14. Table 4. Reserves and Production of Oil and Gas in Iran, Shares in the Middle East
and Asia
Share of Share of
Share of Share of
Middle Middle
Proved Reserves Asia Production Asia
East East
(%) (%)
(%) (%)
4251
137.62 Thousand)
Oil 18.2 15 16.6 9
( Billion Barrels) ( Barrels
Per day
1045.67 5161.2
Gas Trillion Cubic) 39 19.5 Billion Cubic) 30 8.6
(Feet (Feet
Source: EIA
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15. India’s Foreign policy
with Respect to USA
Tension of Main Problems of Tension of
Iran & USA ICI Cooperation India & Pakistan
Competition between
China & India
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16. A Thorough Inference of Opportunities and Threats: A Hypothetical Model
of Cooperation
1.Energy is a political commodity
2. Asia is itself a record growth continent
3.Energy security problems cannot be solved within Asia
4. Collective action is needed for stability & sustainability
of development of the countries
5. There are historical differences, cultural diversities
and different political practices in Asia 16

17. Figure6. A Hypothetical Model of Energy Cooperation in Asia
Problem: Lack of Energy Cooperation in Asia (ECA)
Possible
Causes
Price Stability
Economic Suppliers
Eco. Goals
Iran
SLOC
Geographical
Corridors
Security Cooperation ECA
Territorial Political ICI
Exist. Inst.'s
Coordination
China & India
New Inst.'s Sustainability
Environmental
Demanders
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18. Conclusions
 Fast growing rate of demand for energy in Asia necessitates a serious plan for
energy.
 Geopolitics of energy in the world demands a greater attention to the role of
Iran on the supply side and China and India on the demand side.
 A comprehensive Understanding of opportunities and threats in the area of
energy implies to level up the degree of cooperation in Asia.
The potentials for Energy Cooperation in Asia (ECA) can be actualized
primarily through a cooperation between Iran, China and India (ICI).
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