Rising energy prices may arrest growth in Pacific Rim economies particularly among countries dependent on fuel imports, energy experts at an Asia-Pacific Economic Co-operation (APEC) forum warned Thursday.
An Apec forum study on energy and security issues warned that "rising energy prices may cause growth in Apec economies to stall due to high oil import dependency and an inflexible energy supply structure."
Energy demand within Apec will grow faster than in the rest of the world, exerting long-term pressure on energy prices, it said.
Jung Yonghun, vice president of the Asia Pacific Energy Research Centre (APERC), an Apec advisory group, said "economies that depend on foreign resources for energy supplies are the most vulnerable."
He cited Japan and South Korea, which import all their energy needs as examples. China and the United States, oil producers, were less vulnerable while oil-exporters like Indonesia might actually profit.
The APERC study, released at an Apec ministerial meeting on energy in the Philippine capital, cited "strong energy demand growth in Asia and North America, geopolitical instability in key energy exporting economies and constraints on infrastructure to deliver energy sources to the markets."
APERC warned that imports would eventually account for 55 percent of the region's oil supply, up from the current level of 36 percent.
Speaking at the opening of the Apec conference, Philippine Energy Secretary Vicente Perez said economic and population growth in the region would further increase demand for energy, easily exceeding local production.
"The fact that demand grows faster than supply in the long run will be a major policy concern for us," Perez said.