Division II mainly focuses on researches of industrial economics and energy management, which includes the areas of energy industry development, energy and mineral resources collaboration, and oil and gas markets management. The core projects have concentrated on energy industrial policy and competition strategy, industrial input-output analysis, national energy and mineral resources supply security, international energy and mineral resources collaboration, energy supply/demand outlook and price forecasting, and energy industry management consultation.
(1)Industrial Economic Analysis
Oil Market Research and Analysis
We focus on trends and issues in both internal and external oil markets, including economic and strategic analysis, industry and market management, and the revision of Taiwan’s Petroleum Administration Act. The main research topics are as follows:
1. Crude Oil Price Forecast
2. Petroleum Product Demand Forecast
3. Global Oil Market Outlook
4. Domestic Oil Market Management Mechanism Analysis
Through publishing periodic reports, we provide the government and public with the latest news about the oil market.
Petrochemicals Industry Analysis
We focus on the analysis of petrochemical industrial policies in developed countries which have successfully boosted economies, and further propose sufficient and feasible policies for domestic petrochemical industry.
We also conduct strategic environmental assessments and work towards overcoming the challenges facing Taiwan’s petrochemical industry, such as competition due to the introduction of new products from other countries, and the ongoing agenda of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership(CPTPP) etc.
(2)Industrial Policy Analysis
Management of Government-owned Strategic Petroleum Reserve
To enhance the stability of oil supply and reduce the risk of high oil dependence in Taiwan, strategic petroleum reserve is necessary. According to Article 24 of the Petroleum Administration Act, the government should maintain a strategic oil stockpile of no less than 30 days of the nation’s average daily sales and consumption. Our main responsibilities are to assist authorities in managing government-owned strategic petroleum reserve, develop relevant strategies and conduct research on the experiences of foreign countries.
Guidance on LPG Business Operation and Development
To improve the operating efficiency of the domestic Liquefied Petroleum Gas (LPG) industry, the “LPG Industry Counseling and Inspecting Program Office” assists the government in managing the LPG industry and provides guidance and coaching services to the industry.
The primary achievements are as follows:
1. Inspection of LPG flows and refilling quantities in cylinders
2. Construction of the “LPG Supply and Sale Declaration System” website
3. Investigations on relevant regulations, laws and other cases
Subsidy Management of Petroleum Facilities and Transportation Outlays in Remote Areas
Due to the long transportation distance, the retail prices of petroleum products in remote, aboriginal, and offshore areas are comparatively higher, bringing negative impacts on residents’ livelihood. In order to fulfill local energy demand in those areas, we focus on developing an energy policy framework which strives to execute the subsidization of petroleum facilities and transportation outlays. Our main responsibilities are as follows:
1. Announcement of subsidy projects
2. Management of subsidy applications
3. Amendment on related regulations and laws
(3)International Cooperation and Negotiation
International Energy Cooperation for Stable Energy Supply
With limited natural resources, over 98% of our energy supply relies on imports. Therefore, strategies for ensuring stable energy supply are crucial. It is our core mission to develop strategies to ensure Taiwan’s energy security. Furthermore, given the considerable degree of dependence on energy imports, Taiwan actively participates in international organizations to strengthen energy cooperation with other nations and aims to contribute to global energy governance. Thus, by establishing dialogue platforms, we also aim to facilitate interaction and cooperation between Taiwan and energy exporting countries.
International and Regional Energy Negotiations
We pay utmost attention to negotiations on energy issues in the World Trade Organization (WTO), especially those concerning trade in energy products and services covered in the Trade in Services Agreement (TiSA) and the Environmental Goods Agreement (EGA). Regional negotiations, such as the Regional Comprehensive Economic Partnership (RCEP), and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) are also our focal points. Furthermore, in order to aggregate domestic consensus, we are devoted to promoting communication and interaction between the government, the industries, and the public. We further aspire to establish communication and coordination platforms between domestic and foreign institutes.