The ASEAN Community is proving itself to be a strong economic force, not just in Asia-Pacific, but across the entire world. Forbes went as far to name it China 2.0 due to the economic community’s annual inflows of foreign direct investment exceeding that of China’s in 2013.
For those with oil and gas qualifications, it is important to understand the driving force behind the region.
Air travel is driving the demand for oil in the ASEAN community.
The economic power of this community is typically associated with five ‘tigers’ – Indonesia, Malaysia, the Philippines, Thailand, and Vietnam – who are also labelled the ASEAN-5. Figures released by the International Monetary Fund and reported by Forbes show that these five nations had an average GDP growth in real terms of 6.3 per cent between 2012 and 2015, while the rest of the world’s emerging markets were lagging behind on 5.8 per cent.
With this incredible growth has come a number of benefits for the citizens of ASEAN nations, from increased spending on road systems to new, more expansive healthcare networks. The advantages have been driven by a number of economic factors, none more so than the oil and gas industry.
One of the biggest advantages of both the economic boom and closer integration of member nations has been better access to air travel.
Driving oil consumption through increased air travel
Economic growth drives government revenue and increases the standard of living for citizens. It also has the added effect of increasing the amount of money consumers spend on goods and services.
An example of this is the increase in air travel in the Philippines and Vietnam. According to research from the Financial Times, the number of people flying in the Philippines has risen from under 64 per cent in 2013 to 77 per cent in 2015. Vietnam is experiencing a similar trend, with an increase of approximately 6 per cent over the last three years.
ASEAN initiatives are also driving this trend. The Open Skies policy aims to increase both regional and domestic connections as well as trade by allowing airlines from member nations to fly freely throughout the area. One of benefits that has come as a result has been an increasing reliance on and demand for locally produced oil.
With the Philippines enacting the Open Skies policy in February this year, only Indonesia is holding out. With the policy nearly completely implemented by all ASEAN nations, air travel is expected to continue to rise across all members nations.
How can you take advantage of oil and gas employment opportunities in the ASEAN region?
Future looks bright for oil demand
While the price of oil has dropped over the last several years, demand has not fallen in the same way. Driven by uses such as air travel, this trend in the oil industry looks likely to continue.
For instance, Boeing believes that the over the next 20 years there will be a global demand for just over 38,000 airplanes, valued at more than $5.6 trillion. Furthermore, the aviation leader points out that around 40 per cent of all new airplanes will be sold to airlines based in the Asia-Pacific region.
According to Boeing, this current trend is being driven by Asia’s substantial increases in air traffic. The region is expected to become the largest market for air travel in the world.
With this industry increasing, there also comes the concomitant rise in the amount of jet fuel and thus oil consumed. As this keeps rising, one could expect more jobs and employment opportunities to arise. From Malaysia-based well control to well Intervention opportunities, there are a number of specific roles individuals can capitalise on.
However, to accomplish this, workers will need to ensure they have the right training to place them above the rest of the competition. If you would like to know more, talk to the experts at Harness Training today.