What Is The ASEAN Community And How Does It Affect Oil And Gas

Posted on Categories News

Throughout the world, news stations, magazines and online websites have been a buzz with news of ASEAN Community. While many have likened the integration to the European Union that developed following the end of World War II.

However, with the sheer size of the region as well as the numerous stakeholders – such as those working on well control in Malaysia – there is a desperate need to know how this will effect the economic direction of the region. So what is the ASEAN Community and what does it mean for the oil and gas industry?

The ASEAN Communities will mean a more stable platform for those with oil and gas training to find employment opportunities.

The birth of the ASEAN Community

While many with oil and gas training have a vague idea of what the ASEAN Community is, it tends to get compared to the European Union in terms of economic power. Yet, the ASEAN community is much more than this and includes a number of pillars that support the region’s growing potential.

In 2015, the ASEAN Community began its final hurdle to reaching a single market and economic production base. The overall aim is to create free-flowing goods, services, capital and labour throughout the region.

To accomplish this, the region’s leaders have been negotiating to reduce and ultimately remove tariffs and other barriers to intra-regional trade and investment. Many have seen these economic aims as a gamble, but the results are clear to see.

Figures released by the Asian Development Bank show that while annual growth rates in the global economy have averaged out at 3.3 per cent, the ASEAN region has been booming at 5.1 per cent. The effects have been widespread, 83 million workers have moved out of poverty and into the middle class and its 300 million person strong workforce has access to growing consumer markets and expansive infrastructure networks.

How will the ASEAN Community drive growth?

The three pillars of ASEAN

Even though the overall goal is to deliver better economic opportunities to those who live within the region, there are also two other pillars that are stipulated in the Bali Concord II, each with their own objectives.

The first is the Political – Security Community, which aims to ensure that all the member nations are at peace and exist in a democratic environment. According to ASEAN, it has a number of components that range from political development to conflict prevention.

The second is the Socio-Cultural Community that envisions a region that is people-centric and socially responsible for the unity of the many member states. To achieve this, the Community seeks to develop a single identity, in the same way the European Union has.

But what does this all mean for the oil and gas industry?

How will the ASEAN Communities effect oil?

Stable region translates to greater investment

For those with oil and gas training, the three pillars of the ASEAN Community are highly important. This is because they can act to stabilise the region and ensure investors are not frightened away.

With greater investment comes bigger development projects. According to KrisEnergy, there is a need to increase the investment in the energy industry. The Oil sector is expected to need around US$205 billion for oil supply infrastructure and upstream developments, such as refineries. Gas requires over US$400 billion, which reflects the need for greater transmission and distribution infrastructure.

As the ASEAN Community works to better integrate and create a stable platform for foreign investment, those looking to capitalise on the growing industry need to be ready. To accomplish this, individuals will need to ensure they have the right oil and gas qualifications to find work.

If you would like to know more about the how the ASEAN Community will effect the oil and gas industry, talk to the specialists at Harness Training today.