The GCC states of the Persian Gulf and Asia Energy Relations (original) (raw)

Growing Economic Interdependence of China and the Gulf Cooperation Council

China & World Economy, 2008

The six nations of the Gulf Cooperation Council (GCC) have approximately 40 percent of total proven oil reserves as well as 23 percent of the world's gas reserves. Although rising oil revenues have led to greater outward investment flows, there is also a growing need for significant expansion of the domestic energy sector's capacity. Meanwhile, China's sustained economic boom has resulted in China emerging as the world's second largest consumer and importer of oil , with close to 40 percent of its import demand presently sourced from the GCC. This share will grow significantly in the future. Commercial relations between the GCC and China have to date been dominated by energy-related bilateral investment flows and China's oil imports. Although this will continue to be a central feature, trade and investment links in non-energy areas will further broaden and deepen the relationship. China's relationship with the USA in terms of energy is also emerging as a major issue. Rather than being competitors, a mutual dependence on stable and secure supplies from the GCC highlights the need for a cooperative relationship.

IRAN-GCC Energy Cooperation: A Win-Win Case

For Citations: Salem, H.S., 2015. IRAN-GCC Energy Cooperation: A Win-Win Case. An Abstract Submitted to the 6th Annual Gulf Research Meeting, Gulf Research Center – Cambridge, Session: IRAN-GCC Energy Cooperation, University of Cambridge, Cambridge, UK, 24-27 August 2015. ABSTRACT The Islamic Republic of Iran (Iran), on the one hand, and the six Arab member states in the Gulf Cooperation Council (GCC) on the other hand, including the Kingdom of Bahrain (KoB), the State of Kuwait (SoK), the Sultanate of Oman (SoO), the State of Qatar (SoQ), the Kingdom of Saudi Arabia (KSA), and the United Arab Emirates (UAE), can be one of the strongest global pillars with respect to energy reserves, production, trade, and manufacturing. The two blocks (Iran and GCC), with a total population of 131 million (about 80 millions in Iran and 51 millions in GCC); a total area of 4,321,303 km2 (1,648,195 km2 for Iran, and 2,673,108 km2 for GCC), and a total GDP of 2924 Trillion USD ($1,284 trillion for Iran and $1,640 trillion for GCC), can be, if they cooperate together, major players in the international arena. Both blocks (Iran and GCC) have a strategic location as they are located on the Gulf with a coastal length of 989 km, with Iran covering most of the northern coast and KSA covering most of the southern coast. The Gulf region, comprised of the six GCC countries plus Iran and Iraq, holds 56% and 40% of the world’s conventional oil and gas proven reserves. In 2013, the six GCC countries produced together 24% of the world's total crude oil production. In total, the GCC states control around 30% of the world's crude oil reserve, which definitely adds to the global importance of the Gulf region. Iran holds the world's fourth-largest proved crude oil reserves and the world's second-largest natural gas reserves. This makes nearly 10% of the world's crude oil reserves and 13% of OPEC reserves. Four of the top countries with the biggest proven oil reserves internationally, as reported by the US Energy Information Administration (EIA), are KSA, Iran, Kuwait, and UAE.

China and the Persian Gulf: energy and security

Middle East Journal, 1998

Energy cooperation is the dominant aspect of expanding relations between China and the Persian Gulf countries. Propelling this is China's increasing reliance on Gulf oil imports. In pursuing its objectives in the Gulf, China has encountered as many challenges as opportunities-in the form of regional crises and conflicts, as well as US pressure. In seeking to balance its geopolitical and economic interests in the Gulf, China has proceeded cautiously and pragmatically. Yet, the possibility that China's arms transfers to Gulf countries and its positions on Gulf issues may have a negative impact on regional security cannot be ruled out.

Japanese–Gulf Relations: What’s next after Energy? (Al Jazeera Center for Studies)

Japan's policy on the Gulf region depends to a large extent on two basic principles, namely, economic interests and reliance on the United States with regard to securing shipping lanes. As a result of the scarcity of energy resources in Japan, the country relies excessively on energy supplies from the Gulf region which is rich with such resources. However there are several issues that could affect the relations between the GCC countries and Japan. The increasing likelihood of economic sanctions on Iran being lifted will no doubt ignite competition in the Japanese market. Despite the fact that Tehran may not be able to export liquefied natural gas (LNG) as it needs to develop this sector, a process that will require huge investments and may take several years until realised. However, it is likely that the Iranian energy products will make a strong entry into market competition, where Japanese companies look to invest in Iran's energy sector after the expected lifting of the economic sanctions on Tehran in the next few months. This means that Tokyo will seek to diversify its imports of needed energy products. Although Japan has drawn up an ambitious policy to diversify its energy sources and imports, it will continue to import large amounts of oil and LNG over the next two decades. Since these goods are vital for global economic growth, Japan cannot ignore repercussions of developments in the Middle East region. In particular, the Fukushima disaster and its aftermath affirmed the importance of the Gulf region to Japanese decision makers. Japan has also pioneering experience in the field of energy efficiency, which all countries in the region can benefit from. In addition, the new developing energy trends in the GCC countries include more energy efficiency in buildings, district cooling, and smart grids. These trends increasingly affect the direction of their energy policy. It is likely that the Gulf countries will allocate billions of dollars for renewable energy projects in the coming years, and this in turn would open the way for Japanese companies to invest and develop relations in the new sectors in the region.

Global Energy Markets and the Persian Gulf

Routledge Handbook Of Persian Gulf Politics, 2020

This chapter examines how changes in the global energy system will impact states in the Persian Gulf. The latter's response strategies are analyzed along with their political implications on domestic and international audiences.

Gulf-Japan Ties, Beyond the Energy Sector

EDA Insight, 2019

The Gulf Cooperation Council (GCC) countries and Japan have been important economic partners for several decades, chiefly in the energy sector. While the oil and gas sectors are still very important, especially after the 2011 Fukushima nuclear disaster, Japan is diversifying its bilateral relationship keeping in mind two factors – one, reviving its own economy; and two, the economic diversification programmes in the Gulf countries. Though the share of non-oil trade in the overall trade volume is small at present, it not only occupies an important place in the current scheme of things, but is also expected to increase in the future. Some of the non-oil sectors of collaboration include trade, investment, renewable energy, infrastructure, healthcare, culture, tourism and education, among others. There are also attempts to build partnerships in more ambitious sectors such as space technology, artificial intelligence, blockchain, fintech and other applications of the Fourth Industrial Revolution. Japan has identified these new areas of cooperation as part of the ‘Comprehensive Partnership Towards 21st Century’. This includes the ‘Saudi-Japan Cooperation Agenda,’ which may help the Kingdom’s ‘Vision 2030’ plan. As a value-added component, this improving nonoil ties, both in the public and private sectors, have the potential to impact markets beyond the Gulf region, especially in Iraq, Egypt and African countries. Interestingly, since the safety of the energy and economic supply chain is important, even security and defence cooperation is now becoming part of the diversified relations. Under the banner of economic diplomacy, this Insight tracks developments and opportunities in the non-oil sector, especially with regard to Saudi Arabia and the United Arab Emirates. It also identifies certain challenges – domestic economic problems; tension and instability in the Middle East; and competition from other Asian countries – that require attention to ensure that Gulf-Japan interdependence remains robust in the future. Finally, one of its recommendations includes encouraging GCC countries to develop bilateral and multilateral partnerships with Japan by joining the Freedom Corridor project (in which India is also involved) and promoting infrastructure investment in Africa (and in other parts of the world too).

Energy Geopolitics and the Persian Gulf

From the 19th Century onward, littoral countries of the Persian Gulf and adjacent regions gained considerable importance for great powers in terms of geopolitics, energy security and market opportunities. To safeguard their interests in this area, Western countries have resorted primarily to divide and rule strategy and this remains valid today. Indeed, latterly emerging global powers have also been acting in combination with the West, or they have been forced to do so, in terms of energy security or their global political and economic interests. But the region's fragmented scene operates to the detriment of regional countries and their peoples. Any improvement in this situation depends on the normalization of the region through reducing disputes among the countries there. In this study, the last geopolitical situation in the Persian Gulf is discussed in the in the framework of recent developments in the energy field and the Iran-West talks.

The Persian Gulf and China: The Growth and Limits of Economic Ties

2020

Over the past two decades, China has emerged as one of the largest trade and investment partners of each of the eight states that border the Persian Gulf. This has occurred despite conflicts and diplomatic tensions among those states, such as the rivalry between Iran and Saudi Arabia and the ongoing dispute between Qatar and both Saudi Arabia and the UAE. Moreover, China’s economic and diplomatic ties in the Gulf have rapidly expanded even though seven of the eight Gulf states are heavily dependent on the United States for their external security. Yet, China so far has largely avoided being drawn deeply into the complex politics of the region.