ASEAN oil-sharing push faces hurdles amid region’s uneven energy capacity

By Chloe Mari A. Hufana, Reporter

PHILIPPINE President Ferdinand R. Marcos, Jr.’s call for a regional oil-sharing mechanism and joint stockpiling across Southeast Asia is unlikely to materialize in the near term, analysts said, as the Middle East crisis exposes deep structural gaps in the region’s energy systems.

Ederson DT. Tapia, a political science professor at the University of Makati, said differing energy profiles among members of the Association of Southeast Asian Nations (ASEAN) complicate efforts to establish a unified response during supply disruptions.

“Some produce, while others rely almost entirely on imports,” he said via Facebook Messenger. “In times of disruption, governments tend to protect domestic supply first.”

ASEAN economies are among the most vulnerable to geopolitical tensions, with a significant share of Asia’s crude oil and gas imports passing through the Strait of Hormuz — a critical chokepoint affected by the US-Israel war on Iran.

Mr. Tapia said a gradual, less ambitious approach to cooperation is more realistic, including improved information-sharing systems, aligned stockpiling practices and selective bilateral agreements among member states.

“The real test is whether these can work during an actual supply shock,” he pointed out. “At the same time, even modest steps in this direction may have implications for deepening regionalism.”

Josue Raphael J. Cortez, an ASEAN Studies lecturer at De La Salle-College of St. Benilde in Manila, said the region is not yet prepared for a binding and fully operational oil-sharing framework.

He cited uneven economic capacity among ASEAN members, as well as the bloc’s longstanding principle of noninterference — often referred to as the “ASEAN Way” — as key constraints.

“However, crises have historically pushed ASEAN to collaborate more closely,” he said via Messenger. “There is a possibility that they would commit to this kind of arrangement, but with certain considerations.”

Mr. Cortez said a phased approach — anchored on sustained consultations and incremental framework-building — offers a more viable path forward. Existing platforms such as ASEAN+3, which includes China, Japan and South Korea, could serve as entry points for broader cooperation.

He added that infrastructure initiatives like the ASEAN Power Grid could also help lay the groundwork for deeper energy coordination.

Mr. Marcos, speaking at a Japan-led summit last week, urged regional leaders to pursue joint oil stockpiling and activate the ASEAN Petroleum Security Agreement, warning that supply disruptions risk prolonging inflation and slowing economic growth.

He also backed further study into shared reserves, citing existing models such as national stockpiling systems and cooperative arrangements with crude exporters.

The proposal comes as the Philippines, this year’s ASEAN chairman, grapples with surging oil prices that have pushed inflation higher and increased pressure on households and businesses.

The country remains under a year-long national energy emergency, reflecting its heavy reliance on imported fuel and exposure to global supply shocks.

Within ASEAN, oil production is concentrated in countries such as Indonesia, Malaysia, Thailand, Vietnam, and Brunei, while import-dependent economies like the Philippines face greater vulnerability to price swings.

Analysts said any regional mechanism should address these disparities to gain traction.

Mr. Tapia noted that while energy cooperation could strengthen broader regional coordination, it may also face criticism if it increases reliance on external partners or fails during times of crisis.

“Some will argue that the priority should be building stronger domestic reserves and diversifying energy sources,” he said.

For now, Manila is focusing on domestic measures, including plans to raise fuel reserves, diversify crude sourcing and establish a strategic petroleum reserve.

The government has also explored alternative suppliers, including nontraditional partners in South America, while negotiating additional supply arrangements with allies.

Congress has authorized Mr. Marcos to suspend excise taxes on petroleum products to ease rising costs, although the administration has so far limited the relief to liquefied petroleum gas and kerosene.