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"ASIAN ENERGY SECURITY NETWORK DAILY REPORT, Wednesday, August 17th, 2005", EASSNet, August 17, 2005,

Wednesday, August 17th, 2005


1. Mongolia Energy Sector Update

The Nautilus Institute (T. Sukhbaatar, C. Ouynchimeg, “UPDATES ON THE MONGOLIA ENERGY SECTOR AND THE LEAP-MONGOLIA,” May 13th-16th, Beijing, China) released this report from the Institute’s Asian Energy Security Workshop 2005 in Beijing, China, hosted by the Energy and Environmental Technology Center (EETC) at Tsinghua University in Beijing. The presentation details the current state of energy supply and demand in Mongolia, future energy resources, energy savings and efficiency policy, and energy and employment. The presentation continues with an update on an energy pathways model using LEAP software that is being developed for Nautilus Institute’s ongoing Asian Energy Futures program.

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2. PRC Energy Efficiency

The Nautilus Institute (Dr. Kang Yanbing, “ENERGY EFFICIENCY: RECENT EXPERIENCE IN CHINA, AND APPLICATION OF LEAP TO MODELING ENERGY EFFICIENCY STRATEGIES,” May 14, 2005, Beijing China) released this report from the Institute’s Asian Energy Security Workshop 2005 in Beijing, China, hosted by the Energy and Environmental Technology Center (EETC) at Tsinghua University in Beijing. In his presentation, Dr. Kang Yanbing, from the Energy Research Institute (ERI) and the National Development & Reform Commission of China, describes current energy issues in PRC and outlines ERI’s current Long Range Energy Alternatives Planning (LEAP) model and scenarios. The model analyzes a number of different national plans for the development of sustainable energy, including detailed analysis and explanation of building energy efficiency to reduce per-capita energy consumption.

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3. DPRK Energy Sector

Nautilus Institute Senior Associate, David VonHippel (D. Von Hippel, P. Hayes, “THE DPRK ENERGY SECTOR: RECENT STATUS, PROBLEM, COOPERATION OPPORTUNITIES, AND CONSTRAINTS,” June 15-17, Berlin, Germany) presented this report at the Stanley Foundation sponsored workshop on “Future Multilateral Economic Cooperation With the Democratic People’s Republic of Korea.” The workshop, in cooperation with the German Council on Foreign Relations (DGAP) was help from June 15-17 in Berlin Germany and brought together representatives of involved governments, thinks tanks, and policymakers to discuss the opportunities and challenges for economic engagement with DPRK. The paper reviews “the recent history and current status of the DPRK energy sector, list[s] some of the key energy sector problems facing the DPRK, and offer[s] suggestions as to opportunities for international cooperation on DPRK energy sector problems, highlighting those opportunities with the potential to encourage the development of regional infrastructure.”

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4. PRC Energy Security

The National Bureau of Asian Research (P. Andrews-Speed, “CHINA’S ENERGY INSECURITY: STRATEGIES AND FUTURE PROSPECTS,” September 28-29, 2004, Seattle, Washington) released this presentation for the conference “Asian Energy Security and Implications for the U.S.” In this presentation, Phillip Andrews-Speed from the Centre for Energy, Petroleum and Mineral Law and Policy at the University of Dundee discusses PRC’s approach to energy security and major sources of energy insecurity. The author goes on to describe implications of the outlook of PRC’s energy security strategy based on three different energy “pathways”: a business as usual pathway, a modified business as usual pathway with more focus on energy efficiency and policy, and a “robust moves to market approach” emphasizing liberalization of markets.

More information on the conference is available at:

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5. Russia Oil and Gas

Agence France Presse (“STATE CONTROL, TAX COOL RUSSIAN OIL INVESTMENT CLIMATE: IEA,” August 11, 2005, Paris, France) reported that the Kremlin appears to be re-asserting state control over national resources, and taxation favors the export of oil products over production: these two factors have blown a chill wind over oil investment in Russia, the IEA reported on Thursday. The International Energy Agency summarized in its August report the “impressions” to emerge from a recent visit by its officials to Moscow to meet representatives of the government, oil companies and analysts. One piece of information to emerge was that “up to 380,000 (oil) wells are idle in Russia”. One of the causes was said to be “an insensitive tax regime”.

Agence France Presse (“RUSSIA’S GAZPROM SHUTS OFF HEATING SUPPLIES IN NORTH CAUCASUS PROVINCE,” August 10, Moscow) reported that the Russian gas giant Gazprom said Wednesday it had shut off gas supplies to virtually all heating stations in the troubled North Caucasus province of Kabardino-Balkariya due to unpaid debts and mismanagement, a spokeswoman said Wednesday. “We were forced to shut off gas supplies — the republic has been receiving gas for free,” said Mariya Frolova, a spokeswoman for Gazprom subsidiary Mezhregiongaz, which handles domestic gas sales across Russia.

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6. Korea-US Relations

Yonhap News Agency (“SEOUL’S FM DISMISSES REPORTS OF POLICY DIFFERENCES BETWEEN S. KOREA, U. S.” August 12, 2005, Beijing, China) reported that ROK’s Foreign Minister Ban Ki-moon dismissed Friday reports of conflicts between Seoul and Washington about Pyongyang’s peaceful use of nuclear energy. “There are neither differences of opinion nor conflicts between ROK and the U. S. regarding DPRK’s rights to peaceful nuclear use,” Ban told reporters after holding a closed-door meeting with his PRC counterpart Li Jiaoxing here.

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7. Japan Oil Prices

Associated Press Worldstream (“JAPAN WON’T DIP INTO STRATEGIC OIL RESERVES DESPITE ESCALATING OIL PRICES, GOVERNMENT SAYS,” August 11, 2005, Tokyo) reported that Japan has no plans to begin using its strategic oil reserves, and instead will look toward energy conservation efforts to ease the effects of surging oil prices, a top Japanese trade ministry official said Thursday. “Looking at the domestic oil market, we don’t see supply tightening for crude oil … and we don’t plan to hold talks with the IEA (International Energy Agency, an oil market watchdog) on releasing oil reserves (into the market),” Hideji Sugiyama, Vice Minister of Economy, Trade and Industry, told a news conference.

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8. Japan-PRC Gas Conflict

Agence France Presse (“JAPAN MAKES FRESH PROTEST TO CHINA OVER DISPUTED GAS FIELD,” August 10, 2005, Tokyo) reported that Japan on Wednesday made a fresh protest against PRC over a disputed energy field in the East China Sea, warning that Beijing may be set to pump gas out of the area. “We found that possibilities are high that the Chinese side has placed a pipeline and is ready to put it to practical use at any time,” Economy, Trade and Industry Minister Shoichi Nakagawa told a news conference. “We have protested to the Chinese government through diplomatic channels but we have not received any satisfactory reply,” Nakagawa said.

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9. PRC New Energy Sources

Comtex News Network, Inc. (“CHINA TO DEVELOP BIOMASS INDUSTRY,” August 12, 2005, Beijing, China) reported that PRC intends to develop biomass energy, aiming to realize the historical transition of PRC’s energy structure. It is believed that utilization of half of PRC’s biomass resources is equivalent to constructing a “green oilfield” with an annual output of 50 million tons, which can save USD 15 billion foreign exchange on energy import, and realize annual production value as high as CNY one trillion. In addition, the move can enhance energy safety, reduce carbon dioxide discharge of 160 million tons and control white pollution from the source.

Read the article here.

Comtex News Network, Inc. (“CHINA, ITALY COOPERATE TO DEVELOP HYDROGEN ENERGY,” August 9, 2005, Shanghai, China) reported that it is expected that the energy center for 2010 Shanghai Expo will use molten carbonate fuel cell (MCFC) system jointly developed by experts from PRC and Italy. On August 3rd, PRC-Italy Hydrogen Energy Research Center formally started up, where experts from both PRC and Italy will carry through feasibility research on developing clean hydrogen energy. The project is planned to involve total research outlay about EUR one million.

Read the article here.

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10. Australia and Global Warming

Agence France Presse (“WORLD ENERGY AGENCY WARNS AUSTRALIA ON GLOBAL WARMING PLAN,” August 9, 2005, Sydney, Australia) reported that the International Energy Agency on Tuesday warned Australia its plan to curb global warming with technology-based solutions was inadequate and urged Canberra to consider an emissions trading scheme. The agency commended the efficiency and security of the Australian energy market but said that environmental sustainability presented the greatest challenge because of high and growing carbon dioxide emissions. Australia, which like the United States has not ratified the 1997 Kyoto agreement on cutting greenhouse gases, announced last month it would join a new six-country pact on curbing emissions. The initiative includes the United States, PRC, India, Japan and ROK and aims to use new technologies to cut back on emissions.

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Produced by the Nautilus Institute.



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