Oil Stockpiling and Emergency Response Cooperation of East Asia
Asia's energy security is usually defined in terms of oil-supply security, given the region's growing demand for oil, its flattening oil production, and its overdependence on regions such as the Middle East. Oil-supply security can be attained through long-term and short-term policy measures. Long-term measures include diversification of oil import sources, investment in alternative energy sources and technologies, and cooperation between oil producers and consumers. Short-term measures include information sharing, standby oil production, and drawdowns of emergency oil stockpiles. This study analyses the merits and demerits of oil stockpiling, which is regarded as an insurance against damage caused by any disruptions in oil supply. It also proposes a regional cooperation mechanism for oil stockpiling among ASEAN member states, Japan, and the Republic of Korea by ticketing and bilateral oil stockpiling mechanism based on market principles.