Joint stockpiling and emergency sharing of oil: Arrangements for regional cooperation in East Asia

The East Asia region includes three of the world's top five oil-importing nations—China, Japan, and the Republic of Korea. As a consequence, international oil supply disruptions and oil price spikes, and their effects on the economies of the region, have historically been of significant concern. Each of these three nations, as well as other nations in East Asia, has developed or is developing their own strategic oil stockpiles, but regional coordination in stockpiling arrangements and sharing of oil stocks in an emergency could provide significant benefits. This article describes the overall oil supply security situation in East Asia, reviews the attributes of different stockpiling arrangements to address energy supply security concerns, summarizes ongoing national approaches to stockpiling in East Asia, describes the development of joint oil stockpile initiatives in the region, and suggests the most attractive options for regional cooperation on oil stockpiling issues.

► Rising oil consumption will make East Asia more vulnerable to energy insecurity.
► There have been various dialogs on the need for a joint regional oil stockpile.
► No serious joint oil stockpiling efforts have been made in East Asia to date.
► Despite various impediments, diverse benefits justify oil stockpile cooperation.