	Introduction

Rising competition for energy in China, Japan, and South Korea are of interest to U.S. policymakers for three primary reasons. Third, competition in Asia over access to energy supplies could significantly alter the geopolitics of the region, with important ramifications for U.S. foreign policy. These measures are among those proposed by many analysts to address current concerns about how China's demand will impact the global oil markets and national security. Congress also established the United States-China Economic and Security Review Commission in 2000 to review the national security implications of trade and economic ties between the United States and the People's Republic of China, including an assessment of China's energy needs and strategies. Russia's geographic proximity makes it an attractive supplier for Korea, and it increased its imports of both oil and gas from Russia in 2007. Energy has played a central and controversial role in the ongoing Six-Party Talks among the United States, China, North Korea, South Korea, Japan, and Russia to deal with North Korea's nuclear weapons programs. By nearly every conceivable metric, China has become a primary driver in world energy markets. Rising Competition Over Access to Oil and Gas in the Russian Far East

As China and Japan scramble to meet their energy needs while reducing dependence on the Middle East, the largely undeveloped resources of neighboring Siberia have become a prize. Implications

The long-term potential consequences of rising energy competition in East Asia range from dire predictions of military conflict to scenarios for unprecedented regional cooperation. Bilateral Relationships with Asian Allies

Energy security is an essential concern for the governments of Japan and South Korea, both key American partners in Asia. Japan's unprecedented deployment of Self Defense Forces to Iraq, as well as its active encouragement of Southeast Asian nations to join the U.S.-led Proliferation Security Initiative, may be indications of this trend. Increased Russian Stature

Particularly if Asian consumers turn more to natural gas to satisfy their energy needs, Russia stands to gain considerable leverage in the Asia-Pacific. Although Moscow may be challenged by Beijing's inroads with members of the former Soviet empire, the two powers appear to have moved toward cooperation to counter U.S. presence in the region. Given that U.S. alliance partners Japan and South Korea have been willing to engage countries like Iran to secure energy contracts, some fear that a rising China would be even more assertive in cultivating relationships with U.S. adversaries. Options for Congress and Executive Branch Policymakers

		Taking a More Aggressive Approach to Securing Exclusive U.S. Access to Energy Supplies

As the world's sole superpower, the United States has pursued an energy policy that, while protecting the American interest in securing energy suppliers, also generally assures access for other energy consuming states. The Department of Energy has taken modest steps to enhance energy efficiency cooperation with Asian nations, including efforts to develop fuel cell technology research and development with the Japanese government; to cooperate with Chinese officials in pursuing cleaner air, with a particular focus on the 2008 Olympic Games to be held in Beijing; and to promote the use of cleaner-burning fuels and reform in the energy sector in the Philippines. Leadership in Developing Multilateral Cooperation

If, as many analysts believe, further globalization of the energy market will reduce the potential for major power conflict and instability, strong leadership is essential to coordinate cooperation between actors.
Asia has become a principal driver in world energy markets, largely due to China's remarkable growth in demand. As the gap between consumption and production levels in Asia expands, the region's economic powers appear to be increasingly anxious about their energy security, concerned that tight supplies and consequent high prices may constrain economic growth. Rising energy competition in East Asia promises to affect U.S. policy in many ways, from contributing to price spikes because of China's rapidly increasing demand to altering the geostrategic landscape in the years to come as regional powers struggle to secure access to energy supplies. This report analyzes how China, Japan, and South Korea's pursuits to bolster their energy security impacts U.S. interests. It also examines decisions being made by Asian states now that will significantly shape global affairs in the future, how these decisions might play out, and how Congress and the executive branch might play a role in those decisions.
China, Japan, and South Korea have been moving aggressively to shore up partnerships with existing suppliers and pursue new energy investments overseas, often downplaying doubts about the technical feasibility and economic profitability of new development. Their outreach to suppliers includes the development of close ties with Iran, a key concern to U.S. policymakers given skepticism about Tehran's nuclear program. This report outlines the energy portfolios and strategies of the three countries, including their pursuit of alternatives to petroleum.
The Russian Far East, with vast energy reserves and relative geographical proximity to northeast Asian markets, is already an arena for competition among the Asian powers. The current struggle between China and Japan over access to Russian oil via a pipeline from Siberia may be indicative of more conflicts ahead. If Russia continues to attract commercial and political overtures to gain access to its resources, Moscow stands to gain considerably more power in international affairs.
The possible implications of the surge in energy competition are wide-ranging, from provoking military conflict to spurring unprecedented regional cooperation. Depending on how events unfold, the U.S. alliances with Japan and South Korea, as well as relationships with Russia and China, could be challenged to adapt to changing conditions. Central Asia, with its considerable energy supplies and key strategic location, has re-emerged as an arena for geopolitical contests among major powers.
Many analysts concur that it is in the interest of the United States for the governments of China, Japan, and South Korea to approach energy policy from a market perspective. They believe that if Beijing, Tokyo, and Seoul instead link energy supply with overall security, the potential for conflict and instability is heightened. The report concludes with a number of options, including those that U.S. policymakers might pursue to encourage a trend towards cooperation and the de-politicization of energy policy.
This report will be updated periodically.