The high dependency on imported energy will make Thailand at risk of energy supply disruption and volatility of energy prices, apart from a substantial foreign currency loss for the imports of energy.
The incidents at the beginning of 2003 have emphasized the importance of energy security and its impact on the competitiveness of the country. The prolonged demonstration of the oil production workers in Venezuela had caused the decrease of the crude oil volume in the world market by more than 2.5 million barrels per day. Also, the US-Iraq military crisis had caused the oil price hikes at US$ 1.3-5.8 per barrel. Thailand had faced a high risk of oil supply disruption and price volatility so much so that the government had to introduce the oil price stabilization measure in order to alleviate the impacts of oil price hikes on the economic development as well as domestic consumers.
Consequently, with a view to strengthening the national energy security and competitiveness, the strategies for Thailand’s energy development will focus on efficient use of energy, acceleration of domestic renewable energy resource development to replace the use of fossil fuel of which indigenous reserves are limited, and efficient energy management to extend, as long as possible, the supply availability of indigenous energy reserves. Simultaneously, efforts will be made to transform Thailand to be the "Regional Energy Center," which will be another means to enhance the national energy security and economic development. At the 28 August workshop on Energy Strategy for Competitiveness, the following four energy strategies have, therefore, been established.