The impact of the new Asia–Pacific energy competition on Russia and the Central Asian states

The prospect of increased exports of oil and gas from Russia and Central Asia1 (henceforth R&CA) to the Asia-Pacific region rests on three important trends.

First, on the demand side, is a shifting of the centre of gravity from Europe, and to a less extent from the US, towards the rapidly developing economies of Asia. Of these, China is now the world’s second largest oil consumer and its gas requirements are also rapidly growing. In contrast, requirements of the world’s third largest oil consumer, Japan, are expected to remain static.