Energy Infrastructure Security Asia 2011

With the recent political upheaval in Egypt, the term ‘risk premium’ has reinforced its lost premiership in the global energy arena. Obviously then, the market’s angst over similar cataclysmic occurrences in other energy rich hotspots, is well founded.


Energy resources have the potential to change the global socio-economic dynamics and if their physical and strategic security is not hindered enough, the consequences are insurmountable.


According to the International Energy Agency (IEA) the highest annual growth of energy consumption over the next few years is predicted for Asia (3.7%). It is hence, more than critical for Asia to invest in the security of its energy assets and without doubt, it is. Southeast Asia alone spent more than $140 billion in capital investments in its critical energy infrastructure over the period 2006-2010; $88 billion were spent on only power utilities.


However, given how technological innovations are touted as solutions designed to address the challenges withstood by critical energy infrastructures, there are clear indications that there is more to this nexus. Regional energy security in the Asia-Pacific requires a more multilateral approach.