Energy Needs in Asia

According to the International Energy Association, global energy demand will increase by 43 percent by 2035 and much of this rising demand will be due to the growing Asian economies. China alone is expected to consume two times the amount of energy as the United States and will account for around 25 percent of the total world energy demand. In Japan, the Fukushima disaster resulted in a near total shutdown of its nuclear reactors and as a result, it is now paying some of the highest prices in the world for LNG-almost $15 per unit last month-to make up for its energy shortfall. Due to these rising costs, Japan and India, in particular, are reviewing potential suppliers of LNG in an effort to obtain gas that is less expensive than that provided by current suppliers such as Malaysian, Indonesian, Australian and Qatari gas, which is linked to the price of oil-U.S. gas is not. If the U.S. chooses to become a net exporter of LNG and it can manage to reach agreements with major consumers, it will not only strengthen our strategic alliances but it will also aid in the recovery of the U.S. economy.