The expansion of the BRICS economic alliance could trigger a $100 billion boom in Southeast Asia’s offshore oil and gas industry by 2028, according to energy research firm Rystad Energy. This surge is expected to be driven by factors like planned investments, deepwater exploration projects, and advancements in carbon capture and storage (CCS) technology.
Rystad Energy analysts point to recent successful oil and gas discoveries in Indonesia and Malaysia, along with ongoing deepwater projects, as key drivers of this growth. CCS advancements are also seen as crucial, enabling the region to meet its emissions reduction goals in the coming years. Notably, both Indonesia and Malaysia have expressed interest in joining the BRICS alliance, which shares similar economic objectives with other Southeast Asian nations. Inclusion in BRICS could allow these countries to capitalize on the projected oil boom.
BRICS Expansion and De-dollarization
The BRICS alliance, comprising Brazil, Russia, India, China, and South Africa, has seen significant progress in its de-dollarization efforts in 2024. The bloc aims to reduce reliance on the US dollar as the global reserve currency. The oil industry has emerged as a strategic tool to achieve this goal and counter US sanctions. By establishing itself as a dominant force in the oil market, BRICS seeks to create a multipolar economic landscape.
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However, despite the de-dollarization initiative, BRICS member nations and Southeast Asian countries continue to use the US dollar for oil transactions. This includes major oil producers like Saudi Arabia, another recent addition to the BRICS alliance.
The Road Ahead
While BRICS seeks to move away from the US dollar, profiting from the oil trade conducted in dollars presents a temporary advantage. The key takeaway is that by capitalizing on the oil and gas potential in Southeast Asia, BRICS can further solidify its position as a dominant player in the global oil industry, extending its influence beyond Saudi Arabia.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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