The new expansion of BRICS into Southeast Asia could transform the global energy landscape. According to a recent analysis by Rystad Energy, the alliance could trigger a $100 billion increase in the oil industry by 2028. This development is drawing significant interest in the context of redefining global economic dynamics.
A promising expansion for the oil industry
BRICS continues its efforts to extend their economic influence in Southeast Asia, a strategic region due to its vast natural resources. According to the analysis by Rystad Energy, this expansion could generate a $100 billion increase in the oil industry by 2028. This outlook is fueled by planned investments, deepwater projects, and significant advances in carbon capture and storage (CCS).
Recent discoveries in Indonesia and Malaysia, combined with these countries’ growing interest in joining the BRICS alliance, are key factors in this expansion. Both nations share similar goals with the bloc and other ASEAN countries. This could facilitate their integration and enable them to benefit from this significant increase in the oil sector.
The geopolitical implications of BRICS oil domination
The BRICS alliance marked 2024 with its mission of de-dollarization. This aims to reduce dependence on the US dollar. However, despite these ambitions, oil transactions continue to be conducted in dollars, even by influential members such as Saudi Arabia. “The economic benefits in US dollars remain significant for the bloc,” the analysis indicates. This contradiction highlights the complexity of international economic relations.
Furthermore, if BRICS succeeds in integrating new ASEAN members, such as Indonesia and Malaysia, the impact on the oil industry could be considerable. These countries, sharing similar goals with the alliance, could benefit from this growth dynamic. The expansion could strengthen BRICS’s position in the global energy market, creating a new center of economic power.
In summary, the potential expansion of BRICS in Southeast Asia and investments in the oil industry could redefine global economic balances by 2028. The geopolitical implications of this emerging domination spark reflections on the future of international economic relations. If the alliance succeeds in its integration and overcomes the challenges of de-dollarization, it could truly transform the global energy landscape.
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