ASEAN could save hundreds of millions through coordinated oil stockpiling

Fluctuating international oil prices have underscored the urgent need for ASEAN nations to enhance their collective energy preparedness, experts said. The Economic Research Institute for ASEAN and East Asia (ERIA) has identified coordinated stockpiling as a mechanism to bolster regional resilience against market shocks while delivering substantial financial benefits.

Through shared resource management and collaborative storage arrangements, ASEAN member states could optimize costs across their combined petroleum reserve systems. The approach would enable individual nations to reduce redundant infrastructure investments while maintaining adequate strategic reserves for energy security. Such coordination mechanisms remain largely underdeveloped across the region, presenting significant untapped potential.

The initiative comes as Southeast Asian economies grapple with energy supply challenges amid global market uncertainties. Vietnam, which plays a key role in the region's energy sector through its oil and gas operations, could benefit from enhanced regional cooperation frameworks. Several regional players, including Vietnamese conglomerates, have begun exploring new energy ventures to support long-term supply security.

Implementing ASEAN-wide stockpiling cooperation would require harmonized policies and institutional frameworks across member states. Experts suggest that establishing coordinated storage facilities and shared purchasing agreements could yield annual savings in the hundreds of millions of dollars while providing greater stability for regional economies dependent on stable energy supplies.