Fueling Asia's recovery

The immediate effect of Asia's crisis will be an oil shock, but in the longer term, Asia's energy needs will be the problem. Asia's energy demand will be more than nine million barrels of oil per day higher in 2010 than it was in 1996-a difference greater than the entire current output of Saudi Arabia. But market integration and cooperation will prevent conflict as countries work together to utilize Central and Southeast Asian natural gas reserves. China, for one, has already reached agreements to develop oil fields in Kazakstan and build a massive pipeline to its Xinjiang province. The South China Sea will remain a concern, but the current crisis will help nations move toward the market and away from state control of energy.