In the midst of a global energy revolution, Asia stands at a crossroads, facing the complex challenge of shifting towards sustainable energy sources while contending with the economic implications of its deep-seated dependence on imported fossil fuels.The spglobal source.
- Asia grapples with the cost of transitioning to sustainable energy amid its heavy reliance on fossil fuels.
- While Asia is making progress, it lags behind the rapid energy transitions in the Americas and Europe, emphasizing the importance of energy security and affordability.
- India is emerging as a new center for long-term oil demand growth in Asia, while refiners adapt their strategies to ensure profitability in a changing energy landscape.
The Price of Change
Asia faces a challenging decision as it transitions towards sustainable energy sources: Is the cost of this transformation greater than the price it pays for its heavy reliance on imported fossil fuels.
A Shifting Energy Landscape
While Asia has made strides in balancing affordability and sustainability, the region lags behind the rapid transitions occurring in the Americas and Europe. The pandemic highlighted the importance of energy security and affordability, especially in times of crisis.
Asia’s Oil Demand Shifts to India
China’s role as a global crude demand driver is evolving, with its demand expected to peak and decline. In contrast, India is emerging as a new center for long-term oil demand growth. This shift is reshaping the dynamics of the global oil market.
Refiners Adapt to the Future
Refiners in Asia are adapting to evolving energy trends. While renewables and cleaner energy sources are on their radar, they are also focusing on increasing petrochemical intensity to ensure profitability in a changing market. Downstream expansion becomes a crucial strategy for long-term relevance.
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Source-spglobal
