BRICS' Expansion: A $100 Billion Oil Boom Looms Amid Global Power Shift

As the BRICS alliance continues its expansion efforts into Southeast Asia, the expansion could bring a $100 billion oil surge by 2028. The offshore gas industry is poised for a $100 billion boom by 2028, driven by planned investments, deepwater projects, and CCS advancements, according to Rystad Energy.

According to Rystad Energy’s analysis, the upcoming period of rapid growth is bolstered by deepwater projects, recent successful discoveries in Indonesia and Malaysia, and positive carbon capture and storage (CCS) advancements. These will be crucial in meeting the region’s sanctioning agenda in the years ahead. Malaysia and Indonesia have both shown interest in joining the BRICS alliance. The countries share similar goals as the bloc and other interested ASEAN nations. If BRICS decides to induct new ASEAN nations into the alliance, they can reap the benefit from this oil surge.

BRICS Could Dominate The Oil Industry By 2028 With Further ExpansionSource: ShutterStock

The BRICS economic alliance has had a strong 2024 in terms of its de-dollarization mission. Led by its five founders and newly inducted member nations, the bloc is keen on ditching the US dollar as the lead global reserve currency. One of the bloc’s key tactics for overcoming US sanctions and increasing income has been the oil industry. For much of the last year, the BRICS economic alliance has continued to establish itself. Specifically, the bloc has affirmed its desire and capability to build a multipolar world. Moreover, over the last several months, it has consistently sought new ways to increase its relevance and prominence.

However, despite looking to cut ties with USD, BRICS and Asian countries don’t pay local currencies for oil transactions. They prefer using the U.S. dollar for oil trade even after publicly kick-starting the de-dollarization initiative. Even one of the largest oil distributors, Saudi Arabia, which is also a BRICS member, actively uses the greenback in oil transactions.

Despite looking to ditch the US Dollar though, perhaps reaping huge benefits in the US currency is still good for BRICS. Ultimately, the bloc can further dominate the Oil industry beyond Saudi Arabia if they take advantage of this ASEAN development.