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The Asian Energy Security Conference
Jackson, Mississippi, 1-2 October 2007
One could be excused for wondering why a city in the American southern belt was playing host to the recent Asian Energy Security Conference (AESC), a high-quality meeting discussing energy security in Asia and focusing on seaborne carriage of energy. At first sight, it seemed a bit jarring for a city close to some of the American Civil War’s most important and revered battlefields to provide a focal point for some of the world’s foremost experts in the field of Asian energy and maritime security. But the ‘degrees of separation’ between the mighty Mississippi River and the pivotal Malacca Strait, one of Asia’s critical sea lanes, are not as wide apart as it looks at the outset. In fact, it did not seem at all inappropriate for the elegantly furnished interiors of Marriott Hotel in Jackson – the state capital of Mississippi not far from where Civil War generals plotted battle strategies that would decisively shape the destiny of the United States of America – to provide the setting for top scholars and experts to play out scenarios, discuss developments and suggest the way forward to secure energy transport through Asia’s crucial sea lanes. For starters, the very hospitable state of Mississippi got its name from Native American folklore which translates into ‘father of waters’, hence it is not out of place for a conference discussing some of the world’s strategic sea lanes to be held there. Insofar as grand strategising goes, the bold sense of purpose displayed by leading authorities during the meeting of minds in Jackson to shed light on this critical subject could not be too dissimilar from the intense resolve by battle-hardened army generals to plot siege and counter-siege strategies along the banks of the great Mississippi River during the height of the American Civil War.
Reflecting international attention and global concern on the subject of energy transportation in Asia’s waterways, the conference was organised by the Center for International Security and Strategic Studies, Mississippi State University (MSU) in collaboration with the Center for US-Japan Studies and cooperation of the Institute for Public Studies at Vanderbilt University, Tennessee, USA and the Okazaki Institute of Tokyo, Japan. The presence of over 30 experts from multiple disciplines including strategic consultancy, international relations, political science, maritime economics, maritime security, terrorism studies, naval warfare and even microbiology reflects the complexity of securing energy transportation in Asia – a task which requires a comprehensive approach and multi-dimensional solutions to achieve.
MSU seems to be carving a niche for itself in this very important subject. The conference in Jackson was a follow-up to the first AESC meeting held at MSU’s campus in Starkville, Mississippi in 2006, which focused on international cooperation in the war against terror in the Asia Pacific region with an emphasis on the Malacca Strait. It is heartening to see a respected American college playing a very active role in providing a neutral ground for leading authorities to engage in a no-holds-barred and rigorous discussion on Asian energy security. The participation of a stellar line-up of speakers from the US and Australia and from key maritime nations in Asia such as Malaysia, Indonesia, the Philippines, India, Japan and Korea underlines the growing importance of the conference as one of the premiere events on the subject of security in Asian waters.
The premise of the AESC is based on the importance of the Asia-Pacific region as one of the most dynamic trade and economic regions in the world. Led by the stunning growth of China and India as rising global economic powerbrokers, the region currently acts as the main catalyst to the growth of the global economy and international trade – the overwhelming majority of which is carried by seaborne transportation. The ever-growing need for imported energy of these two economic behemoths and other regional economic powerhouses such as Japan, Korea and Taiwan PRC has put the issue of Asian energy security in the global spotlight. High stakes ride on the security of energy transportation from traditional sources in the Middle East to the aforementioned East Asian economies whose performance is crucial to global trade and economic growth. Without assured supply and secure transportation of energy, these economies, which rely heavily on imported energy, will suffer, and this in turn will trigger adverse impacts to the regional strategic balance and even global trade and economic growth. As such, it is paramount that serious attention is paid to securing energy transportation along Asia’s sea lines of communication (SLOC) such as the Strait of Hormuz, around where the majority of Asia Pacific’s imported oil originates, and the Malacca Strait, through which a third of the world’s seaborne oil trade flows.
The AESC kicked off with the first session on energy demand and supply, featuring speakers who provided an excellent overview of the global energy markets, with the individual country presentations focusing on the dynamics of their interests in imported oil and gas. Participants heard Japanese, Chinese, Taiwanese and ASEAN perspectives on securing energy imports, while the ensuing discussions revealed strong and overwhelmingly consensual views on the importance of securing energy supply and transport in the Asia Pacific for the sake of global economic well-being and its strategic balance.
Skillfully co-chaired by Dr Robert ‘Doc’ Foglesong, President of MSU, and Carlos Sorreta, Minister and Consul at the Philippines Embassy in Washington DC, the lively session set the stage nicely for subsequent discussions on securing energy transportation in Asian waterways. It was just as well that the sessions in this conference were steered by two co-chairs, given the intensity of the debate, the strong views and the occasional clashing opinions from the floor. Then again, one would not expect anything less from a gathering of renowned experts in their respected fields. Surely to the delight of the conference organisers, the discourse on Asian energy security throughout this session was intense and the quality of the discussions generated by leading authorities was top-notch.
Session 2 of the first day of the conference featured presentations by leading experts in the field of maritime security. During this highly engaging session, the conference heard the growing exposure of seaborne transportation of energy and shipping routes to potential threats emanating from non-state actors in the form of pirates and terrorists, and rising geopolitical tension that could result in actions by naval adversaries to deny access along choke-points in key Asian sea lanes such as the Persian Gulf, the Malacca Strait and the East China-Yellow Sea. The speakers stressed the importance of securing ports and shipping from potential security threats involving among others ‘dirty bombs’, biological weapons, cyber attacks and even nuclear attacks.
The raising of the threat perception bar in the maritime industry since the 9/11 incident has driven security agencies and industry practitioners to introduce a slew of security measures to protect maritime interests and lives from potential terrorist attacks. However, projections of the economic consequences of attacks on ports that could send shivers down the spine were balanced by practical suggestions on how to secure ports and the maritime supply chain from security threats. The participants came out of the session more appreciative of the daunting challenge of finding equilibrium between keeping the flow of the maritime supply chain smooth to facilitate growing trade volume and protecting the components along the long and complex chain from harm.
In the evening of the first day of the conference, the participants had the opportunity to strengthen the networking forged earlier in the day in a more relaxed setting at a banquet reception at the University Club in downtown Jackson. After a sumptuous dinner that proved a perfect match for the warm Southern hospitality extended by the hosts, the Adjutant General of Mississippi, Major General Harold Cross, gave a rousing toast to welcome the participants to the state and to stress the importance of being vigilant in these uncertain times. With an assertive tone that befits his position commanding over 13,000 Federal and State soldiers, airmen and civilians, Major Cross then introduced Admiral (Rtd) Thomas Fargo, former Commander of the US Navy’s Pacific Command, who delivered a keynote speech titled ‘Securing Asia’s Sea Lanes’.
Proving the adage that ‘you can take the Commander out of the Navy but not the Navy out of the Commander’, Admiral Fargo authoritatively and eloquently shared his views on the security threats faced at sea in the post 9/11 matrix and put forth convincing ideas on how to protect the sea lanes of Asia to enable energy carriers to sail without let or hindrance. Given Admiral Fargo’s years of experience and extraordinary track record in helming the most potent combat force in the Asian waters, the stakeholders in Asian sea lanes would best heed the advice of this ‘fine soldier and patriot’, a description coined by Major Cross when introducing the much-decorated former Admiral.
The conference commenced on the second day with Session 3 on the roles of Navies and Coast Guards. Speakers in this session assessed the role of the Navies and Coast Guards of the US, Australia, India and ASEAN countries in protecting the security and safety of merchant shipping in Asian SLOC. It was heartening to note that there has been an increase in multilateral cooperation amongst the governments and maritime security agencies within Asia and beyond in establishing comprehensive security in key regional sea lanes.
The multilateral approach is indeed the way to go in countering potential security threats from non-state actors which are often asymmetrical, unpredictable and transnational in nature. Such threats can be most effectively countered and neutralised on a platform of collaboration amongst nations via the sharing of intelligence, confidence and capacity-building measures and close coordination of resources and efforts. As a speaker bluntly put it, no single nation – not even a so-called ‘superpower’ – can go it alone in guaranteeing the safety and security of international shipping from the various threats it faces. This point resonated throughout the session and was even stressed in the luncheon address thereafter delivered by Vice Admiral (Rtd) Eduardo Santos, President of the Philippines-based Maritime Academy of Asia and the Pacific, on the potential threat posed by the Abu Sayyaf group in Asia’s energy sea lanes.
The concluding session of the conference convened selected speakers to formulate guidelines and recommendations to ensure and enhance Asian energy security to improve the security of maritime transport and to ensure the unimpeded flow of energy imports to the Asia Pacific region. The guidelines were then deliberated further by the rest of the conference participants which resulted in the following recommendations:
• All economies in our globalised world have broad mutual interests in ensuring that trade in energy and other goods continue to flow freely and securely.
• Major coal, oil and gas consuming economies in the Asia Pacific region and Indian Ocean should enhance mutually beneficial and amicable linkages with the major energy producers in West Asia and South East Asia.
• Concerned governments should coordinate threat and vulnerability/risk assessments of current and emerging challenges to energy flows as disruption to this flow could precipitate economic disaster.
• International maritime cooperation is needed to safeguard seamless seaborne trade, building on existing national, bilateral, multilateral, sub-regional and region-wide arrangements.
• Such arrangements must be based on enhanced mutual trust leading to better information-sharing within and between governments.
• Such enhanced trust and cooperation should be used to assist in enhancing energy resource cooperation mechanisms in the Asia Pacific and the Indian Ocean littoral regions.
• Capable nations should assist regional partners as needed in maritime capacity-building both for national purposes as well for purposes of broader regional cooperation. Such assistance could include the provision of education, training, equipment and communications; the conduct of joint exercises; and the development of maritime awareness.
The conference also recommended MSU to sponsor another meeting in 2008 aimed at broadening the dialogue among the stakeholders in Asian energy security. Given the current and future importance of Asian energy security and sea lane protection to the global economy and strategic balance, it was suggested that the next conference should enhance the dialogue on enhancing capacity building among the stakeholders towards securing Asian energy supply and transport.
After two days of rigorous discourse, elaborate discussion and at times heated debate on the various dimensions of Asian energy security, particularly seaborne transportation of energy to the Asia Pacific region, the participants bid their adieu to the organisers and to one another at a farewell party held, appropriately enough, near a body of water. The huge Rose Barnett Reservoir near Jackson provided a perfect setting for an evening of good food and more of the gracious Southern hospitality that the participants had, by then, grown accustomed to during their stay in the ‘Hospitality State’.
The participants of AESC would no doubt leave the quaint state capitol better informed on the dynamics, issues and challenges of Asian energy needs and securing energy transport to this crucial region, thanks to the authoritative speeches, informative presentations, intensive debates and elaborative discussions. They could also depart in the satisfaction that they had played a part in advancing the discourse on one of the most pivotal subjects in the fields of maritime transport and international strategies. Rare would be the participant who would not look forward to attending the subsequent editions of this high quality conference – at a state featuring one of the world’s most heavily used rivers for freight transportation – and to further providing intellectual contribution towards securing energy supply to Asia and protecting energy transport in its critical sea lanes.
Nazery Khalid
Maritime Institute of Malaysia
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URL: http://www.austlii.edu.au/au/journals/MarStudies/2007/30.html