Thailand Oil situation

The USA alone uses 20 million barrels of oil per day 1/4 of the worlds total production yet it has made no advances in stopping the increased demand for oil or creating public policy that will lead us to energy self sufficiency. Americans believe that cheap oil & lots of it is their birth right. Exxon Mobil made in 2005 $36.1 billion profit & gave its Chairman $US400m when he retired. In 2006 they made around $US40 billion. Public outcrys blame the Governments yet it is the oil companies who are to blame & do you think they care? The USA consumes 43% of the worlds gasoline light crude & without it it would collapse & needs to rethink on its energy sources but do you think its going to --- hell no. The Dept of Energy predicts by 2030 ethanol will only make a 30% dent in the energy requirements in the USA but also by this year the USA alone will consume double what they are using now of oil??? Can we stop it? ask yourself. Unstable prices or the loss of oil supply could destroy the economic fibre of the West. We are now living in a volitile world run by oil prices, the cartels & the Oil companies.

Oil prices steady above $127 a barrel in Asia June 2nd 2008

BANGKOK, Thailand — Oil prices held steady around $8 below the record hit last month as investors tried to determine if the market's yearlong bull run is over. Jitters that record high fuel and energy prices are cutting into demand — particularly in the U.S., which has just started its summer driving season — helped to pull oil off the $135.09 a barrel trading record hit May 22. At the same time, worries that supplies in the near-term won't be able to keep up with demand growth in Asia have kept a floor underneath prices. Many analysts say institutional investors and fund managers still view any retreat of $5-$10 as a buying opportunity. Midday in Singapore, light, sweet crude for July delivery was up 9 cents at $127.44 a barrel in electronic trading on the New York Mercantile Exchange. On Friday, the contract settled at $127.35 a barrel, up 73 cents. At one point Friday, July crude futures dipped below $125 a barrel before rebounding. I n the U.S., high prices are cutting demand for gasoline, with data from the Energy Department and Federal Highway Administration and several surveys in recent days suggest American consumers are driving less. Additional selling pressure came last week from a Commodity Futures Trading Commission investigation into possible price manipulation in oil futures markets. The CFTC also announced new rules designed to increase transparency of U.S. and international energy futures markets. Also, the dollar, with some fluctuations, seems to be regaining a footing. In early afternoon Asian currency trade in Tokyo, it was holding above 105 yen, while the euro was changing hands around $1.5536. Investors who buy commodities such as oil as a hedge against inflation when the greenback weakens, tend to turn around and sell when the currency gains ground. Also, a stronger dollar makes oil more expensive to investors overseas. On a trip to the Mideast over the weekend, U.S. Treasury Secretary Henry Paulson said there is "no quick fix" to high oil prices because it is an issue of supply and demand. He was on the trip to deliver a message to officials of Saudi Arabia and other oil-producing nations that soaring oil prices are putting a burden on the global economy. Global demand remains strong while "production capacity has not seen new development," Paulson said Sunday in Qatar. His trip was designed to urge Mideast producers to allow more outside investment to boost output. The day before, though, the current president of the Organization of Petroleum Exporting Countries again blamed the weak U.S. dollar, speculation and the subprime crisis for the spiraling price of oil. Algerian Energy Minister Chakib Khelil said the cartel will make no new decision on production levels until its Sept. 9 meeting in Vienna. He said oil's record prices do not reflect markets conditions, an oft-repeated OPEC position. In other Nymex trading, heating oil futures rose 0.18 cent to $3.6685 a gallon while gasoline prices added 0.62 cent to $3.3544 a gallon. Natural gas futures rose 4.2 cents to $11.745 per 1,000 cubic feet. July Brent crude futures were flat at $127.78 a barrel on the ICE Futures exchange in London.By THOMAS HOGUE AP Business Writer © 2008 The Associated Press

Finance Minister warns of dangers of rapid oil-price rise beyond $150 WICHIT CHANTANUSORNSIRI A rapid rise in oil prices to $150 per barrel would have a profound impact on consumer confidence and inflation, warned Finance Minister Surapong Suebwonglee.''If oil prices rose to $150 per barrel say by the end of the year, I think we could handle the situation,'' he said. ''But if prices moved faster that we expect, it would have a profound impact, particularly as inflation spikes.''Oil prices closed last week at around $127 per barrel, well off earlier highs of around $135. Prices have risen by 30% since the beginning of the year.The increase in oil prices has had a knock-on effect throughout the economy, with inflation in April reaching a two-year high at 6.2%. Inflation is expected to rise even further once the Commerce Ministry releases its latest figures for May today.Dr Surapong said the current situation differed from past oil shocks.''In the past, once prices reached a certain level, they stabilised. But prices now are rising steadily, preventing us from finding a level for the economy to adjust,'' he said.''What we can do is take steps to raise incomes to cope with rising inflation.''The finance and energy ministers tomorrow would propose a new package of measures aimed at helping ease the burden of fuel prices on the public.On the revenue side, authorities earlier this year approved salary increases for civil servants and state employees, and are now reviewing calls for salary hikes for state enterprise workers.Meanwhile, Dr Surapong acknowledged that natural gas pricing was distorted as a result of state policies.The Democrat Party last week sharply criticised the government's energy policies, and alleged that the Electricity Generating Authority of Thailand paid 20 billion baht per year in excess charges for gas purchased from PTT when compared with prices charged to PTT affiliates.Dr Surapong said the distortions stemmed from policies aimed at keeping natural gas costs low for the public.He agreed that fair competition was needed in the energy sector, with market distortions kept at a minimum in order to encourage investment in the sector.''We should allow prices to move according to market forces. Revenues gained in turn from operations should be used to assist those groups affected by high oil prices,'' Dr Surapong said.''Pushing prices down across the board just sends out the wrong signals. People will simply have no incentive to save.'' Source Bangkok Post 2nd June 2008

Green BHD diesel fuel set for launch

SANTAN SANTIVIMOLNAT Bio-hydrogenated diesel (BHD), a high-quality biodiesel suitable for blending to create a greener alternative fuel for vehicles, would be launched commercially after tests prove successful, said PTT Plc president Prasert Bunsumpun.Testing of the hydrogenation process to produce BHD from vegetable oil would be completed next year.BHD can be mixed in a 10:90 ratio with diesel fuel, compared with the 5:95 ratio of the existing B100 biodiesel to diesel fuel.PTT, the state-run oil and gas conglomerate, signed an agreement on Friday to collaborate with Toyota Motor Corporation (TMC) and two of the Japanese automaker's local units to research BHD. Toyota would supply Hilux Vigo pickup trucks and diesel engines to PTT for the tests.Mr Prasert said the collaboration was part of PTT's policy to keep pace with the rapid development of energy technologies.PTT has been promoting gasohol, palm diesel, B5 biodiesel and natural gas for vehicles to reduce oil bills.''BHD, the new alternative fuel, has a similar structure to diesel but higher quality. It contains a cetane value higher than 80, more complete combustion, is sulphur-free and produces less pollution,'' he said.Energy Minister Poonpirom Liptapanlop said PTT-Toyota collaboration would bring about an innovative biological fuel that benefits Thailand in many ways because it can be produced from various raw materials including non-food plants such as jatropha and seaweed. This helps reduce the supply shortage of feedstocks and eases pressure on other crops that are being grown for both food and energy.Toyota Motor Corp managing director Shigeki Suzuki said that given the government's support for expansion of palm oil plantations in Thailand, Toyota would like to introduce BHD as a product to get the best value out of palm oil.Due to the high quality of BHD, farmers would also be assured that growing palm oil is worthwhile.BHD produces less pollution and promotes longer engine life compared to traditional biodiesel. In addition, the blending proportion of BHD into diesel can be higher than for the traditional alternative.Toyota believes that BHD is the right technology to support the government's environmental policies, as the fuel can also help reduce soot and particle emissions and carbon monoxide.Ryoichi Sasaki, president of Bangkok-based Toyota Motor Asia Pacific Engineering & Manufacturing Co, said the company saw the importance of supporting biological fuel projects in Thailand. As a result, it was providing technological support to evaluate automobiles and engines as well as testing to determine if there would be any negative effects on parts and fuel injection systems that might arise from the use of BHD-derived fuel. Source Bangkok Post 2nd June 2008