MERGED: All About OIL PRICE HIKE

[riko diko]

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ahak nalang.

[JoRed]

DIESEL PUMP PRICE CAN BE ROLLED BACK BY P2.87/LITER -IBON



The pump price of socially-sensitive oil product diesel can still be rolled back by PhP2.87 per liter, thus making the adjustments made yesterday by several oil companies unreasonable.



Research group IBON Foundation scrutinized the movement of pump prices of different oil products from January 2000 to September 2005 and found out that the ideal price increase should have only been PhP15.7 per liter. The actual price hike for diesel during the said period reached PhP18.57 per liter, or an overpricing of PhP2.87 per liter.



Diesel accounts for more than 37% of the domestic petroleum market, the largest share among all petroleum products.



To compute the ideal pump price adjustment, IBON used the monthly difference in the foreign exchange and price of Dubai crude. Their cumulative impact on the pump price varies depending on their respective average in a given month. This month, for example, a PhP1-change in the peso-dollar exchange rate translates to a 41-centavo adjustment in the pump price while a US$1-change in the Dubai crude price means an impact of 39 centavos on the pump price.



For the record, the latest increase in diesel pump price is the 64th round of oil price hike (OPH) for the said product since April 1996 when Republic Act 8180 or the first oil deregulation law was passed. Of this figure, 17 rounds of OPH for diesel have been monitored by IBON in the first nine months of 2005 alone, which raised diesel pump prices by PhP7.98 per liter. The prevailing pump price of diesel is now PhP31.26 per liter, or 34% higher than its level at the start of the year.



Overpricing underscores the need for strict government regulation on the activities of the oil companies in the country. As long as the industry is deregulated and the government has no significant role in determining the reasonable price of oil products, the people will have to live with exorbitantly-priced oil. (end)

[Miguel]

READ THIS, THIS IS ABOUT ANOTHER ALTERNATIVE SOURCE OF ENERGY, ESPECIALLY KADTONG MGA PESSIMISTIC KAAYO DIYA, UNYA INGON DAYON NGA WALA GIBUHAT ANG GOBYERNO, SIGE LANG REKLAMO


Smith Bell, Danish partners to raise $110M for Negros wind farm proj
By Rocel C. Felix
The Philippine Star 10/10/2005

Filipino-owned Smith Bell Group of Companies and Danish firm Global Renewable Energy Partners will raise $110 million for the second phase of its San Carlos Wind Farm project in Negros Occidental.

Smith Bell and Global Renewable Energy Partners earlier put up the Carlos Wind Power Corp. in 2003 to undertake the development and implementation of the 30-megawatt (Phase I) San Carlos wind farm project.

Smith Bell president Ruth-Yu Owen said that as the company is nearing financial closure for Phase I of its San Carlos wind farm project, it now wants to develop a bigger 60-MW wind farm facility, also in Negros Occidental

"We’re eyeing phase two in another town but it will be bigger, twice the size of our current facility," Owen said. She said Phase II of San Carlos will start either in 2008 or 2009.

Owen said the company expects to close financing for Phase I by 2006.

It is tapping the Danish International Development Agency (Danida) by next year for the bulk of its financing requirements for Phase I which will cost a total of $55 million.

Danida is the same agency that bankrolled the construction of the country’s first wind farm in Bangui Bay, Ilocos Norte.

Phase I of San Carlos project straddles the three peaks of Mount Malindog, Brgy. Prosperidad and Linubagan. Construction is slated early next year.

The wind farm will have 19 to 24 turbine generators each with a capacity of 1.5 to 2 Megawatts.

Owen said that once completed, the wind farm will enable the company to provide cheaper electricity to consumers. Currently, renewable energy projects such as wind power are not subject to the expanded value added tax (EVAT).

The company started to study wind speeds in San Carlos City, Negros Occidental in recent years. The study show expected gross generation of between 75-80 million kilowatthour per annum, which is equivalent to the consumption of around 150,000 households in the country.

The wind project is part of Smith Bell’s drive to develop renewable energy sources to reduce the country’s reliance on imported fossil fuels such as coal and oil.

At the same time, it will boost the country’s commitments under the Kyoto Protocol to reduce the emission of greenhouse gases.

The Philippines has a potential wind power of 76,600 MW which is even higher than known wind power producing countries like Germany (14,000 MW potential wind power), Spain and US (6,000 MW each), Denmark (3,000 MW) and India (2,100 MW).

As part of efforts to accelerate the development of renewable energy sources, the Department of Energy earlier announced plans to hold the second contracting round for 18 wind sites nationwide.

Energy Secretary Raphael M. Lotilla said the new wind sites being offered will have a total capacity of 500 MW.

The new wind sites are in Bani, Pangasinan (40 MW), Bolinao, Pangasinan (40 MW), Dinapigu, Isabela (10 MW), Cuyo Island, Palawan (30 MW), Tagaytay, Cavite (30 MW) Donsol-Jovellar, Sorsogon (70 MW), Donsol, Sorsogon (40 MW) Pilar, Sorsogon (40 MW), Matnog, Sorsogon (10 MW), Pandan, Catanduanes (30)MW, Dumangas, Iloilo (50 MW), Siquijor (10 MW), Carmen, Cebu (20 MW), Oslob, Cebu (30 MW), Allen-Lavezares, Northern Samar (10 MW) Tomas Oppus, Southern Leyte (10 MW) and Gigaquit, Surigao Del Norte (30 MW).

Currently, the country’s first and only wind farm to date was developed by Northwind Power Development Corp. in a 40 percent Danish, 60 percent Filipino partnership.

The 25-MW Northwind Bangui Bay Project is also a landmark development for our country since it became the first participant in the global carbon market. Another wind project in the pipeline is a 40-MW wind farm also in northern Luzon

The project financing was provided by Danida, the Danish government aid organization that granted $11.2 million in capital to jumpstart the project and another $8 million in grants for its completion.

An export credit facility of $29.35 million was arranged under a loan agreement bet-ween the Northwind Power, the Trade and Investment Development Corp. of the Philippines, ABN AMRO Bank NV and the Danish Export Agency.

Last year, the DOE launched 16 wind sites and the first contracting round was held last March of which five were already issued pre-commercial contract. Several companies have also expressed interest for the next 11 sites.

[Miguel]

O NAA PA

Saudis show interest in RP oil industry
By Marianne V. Go
The Philippine Star 10/10/2005

The Kingdom of Saudi Arabia has reportedly expressed interest in a proposal for a joint venture with Filipino businessmen to engage in oil exploration in the Philippines and to put up a new oil refinery in the country.

The Saudis are also interested in helping revive either one of two moribund petrochemical plants in the country. This was revealed by Oscar C. de Venecia, head of the Philippine Chamber of Commerce and Industry (PCCI) international and trade affairs delegation which visited KSA from Oct. 1 to 3.

De Venecia said, the possible joint oil exploration alone could bring in new investments of $800 million.

According to de Venecia, Saudi officials led by Dr. Yousef Bin Tarad Al-Saadon, Deputy Minister of Foreign Affairs for Economic and Cultural Affairs, Ambassador Mohammad Ameen Wali, Saudi Ambassador to the Philippines and Dr. Sammy Bin Abdullah Al-Saleh, general director of the Office of Economic Bilateral Relations of the Ministry of Foreign Affairs, expressed the KSA’s continuing support and interest to invest and conduct trade with the Philippines.

As proof of that commitment, de Venecia said, KSA officials extended a $20-million loan for the construction of several roads in Mindanao.

The Saudi government likewise signed an agreement for the promotion and encouragement of investments in both the KSA and the Philippines.

Saudi interest in putting up a refinery comes on the heels of recent pronouncements by Shell Philippines that it is reviewing its refining operations in the country in the face of lack of support from the Philippine government with regard to tariff protection and incentives for their continued operation.

Aside from Shell’s oil refinery, the only other oil refinery operating in the country is that of Petron’s Bataan Refinery Corporation in Limay, Bataan. Caltex Philippines had already shut down its refinery long ago.

De Venecia said the Saudi officials reaffirmed their commitment to continue supplying the Philippines with oil especially because of their investment in Petron.

The Saudis also expressed interest in plans to revive either one of two mothballed petrochemical plants – the Bataan Polyethylene Corp. and the Petrochemical Corp. of the Philippines.

Aside from oil refinery and petrochemical production, de Venecia said, the Saudis also expressed interest in joint ventures in mining in both countries.

The KSA, de Venecia said, needs trained technical people to help exploit their mineral resources. He said the Saudis are inviting interested Filipino mining firms with the proven technical know-how to team up with other foreign firms with the financial clout to help exploit KSA’s still largely untapped mineral resources.

The Saudis are likewise interested in encouraging more cooperation in various industries such as spare parts, furniture, information technology, chemical products, desalination, engineering, tourism and food products.

[Miguel]

AN ARTICLE ON SOLAR POWER

Friday, May 27, 2005
Solar power lights up remote villages in war-torn town
By Bong S. Sarmiento

PAGALUNGAN, Maguindanao -- Residents in at least three remote villages of this conflict-affected and impoverished municipality have now reason to smile even in the dead of the night.

Aside from hearing the grins, children can also see now each other's smiles, or sneers, even under the moonless, starless night of playful indulgence.

Used to virtual darkness for several decades, electricity came to the Barangays of Linandangan, Bagoinged and Kilangan in a solar fashion expected to change the lives of the residents for the better.

"This is the first time that we had electricity. We are very thankful for this project. It gives us and our children reasons to hope for a bright future," said Suod Matalam, village chief of Linandangan.

Linandangan is a far-flung farming community accessible only through rugged and muddy roads stretching to at least five kilometers from the highway.

"The children will no longer burn their '[eye] brows' studying their lessons using kerosene lamps at night time," he added, pointing to fluorescent lights powered by solar energy dotting the houses of his 30 constituents.

Like Linandangan, 30 households each in Bagoinged and Kilangan have availed of the electricity project carried out by the Alliance for Mindanao Off-grid Renewable Energy (Amore) program.

Last Monday, Amore personnel and municipal officials formally switched a solar panel in Barangay Linandangan that signals a new episode in the lives of residents in the three villages.

Amore, a United States Agency for International Development-funded program, is carrying out the electrification project with the help of Mirant Philippines, the country's largest energy producer, according to an Amore briefing paper.

Cecile Rodriguez, Amore's information and education coordinator, noted the program, now on its second phase, aims to light up 200 communities in conflict-affected areas in Mindanao in the next five years.

Some 188 barangays in Maguindanao, Sultan Kudarat, Davao City, Tawi-Tawi, Basilan, Sulu, Zambonga Sibugay and Zamboanga City were lighted during the program's first phase that ended last year, she added.

Monthly, each beneficiary will pay P300 that will go to the bank account put up by the residents for the solar panels' maintenance or rehabilitation purposes, she said.

Pagalungan Vice Mayor Norodin Matalam, the town's acting mayor, said the electrification program in the locality would connect his constituents to the outside world.

"They can now watch television [news and programs] and listen to the radio," the mayor said.

Matalam, also a former mayor of the town, noted the electrification project can "arrest the country's growing population."

"Unlike before when darkness falls, almost everyone go to sleep right away. But with electricity now, lots of activities can be taken during the night. With the lights on for late night activities by household members, it may taper off the sexual urges of the parents," he said.

For this predominantly Moro town, where a household has an average of five children, Matalam hopes to see an improved constituency with the electricity brought by the solar panels.

He urged the beneficiaries to take good care of the solar panels so that it will last long.

[riko diko]

words words words.... where's the action? heard about this stories sa una pa. i hope this time people concerned will be on the double on this.

[Miguel]

words words words.... where's the action? heard about this stories sa una pa. i hope this time people concerned will be on the double on this.

Read well, and you will know that there is action. Now read it again.

[riko diko]

on fuel: "expressed intrerest" "extended a $20M loan" i suppose these are the actions you meant. well, wake me up in a couple of years when it's 500/liter.
kidding aside, these news are great! but go back to the the thread starter! it may be a short term remedy but it may hold down the price increases, at least instead of a bi-weekly increase, it could change to a monthly increase... at least not as fast as what we're experiencing now. who knows it might even really work and prices will decrease.

if you are optimistic of our governement, well, good for you, good for you.

[Miguel]

on fuel: "expressed intrerest" "extended a $20M loan" i suppose these are the actions you meant. well, wake me up in a couple of years when it's 500/liter.
kidding aside, these news are great! but go back to the the thread starter! it may be a short term remedy but it may hold down the price increases, at least instead of a bi-weekly increase, it could change to a monthly increase... at least not as fast as what we're experiencing now. who knows it might even really work and prices will decrease.

if you are optimistic of our governement, well, good for you, good for you.

Again it boils down to the Law of Supply and Demand. As long as there is a strong demand for fuel, don't expect for it to go down dramatically or the prices will not be increase. The best thing to do is to lessen that demand by creating alternative sources of energy. If we can harness energy through other means aside from oil, then the demand for oil will lessen, and as a result the prices will be lowered to pump up the demand. That's basically the Law of Supply and Demand. The rise and fall on the price of oil hangs on the balance with the creation of the alternative sources of energy.
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LATEST FROM INQUIRER, KADTONG MGA ANTI-ARROYO, SIGENG REKLAMO MOINGON NA SAD NGA WALAY GIBUHAT. WHY I SUPPORTED ARROYO IS NOT BECAUSE I CONDONE CHEATING BUT BECAUSE IN HER ADMINISTRATION THERE ARE RESULTS. BE OBJECTIVE IN EVERYTHING THAT IS HAPPENING AROUND YOU, MORE SPECIFICALLY JUST HERE IN CEBU ALONE, WEREN'T THERE IMPROVEMENTS? DON'T BE SELECTIVE, JUST BE OBJECTIVE. KAPOY NG SIGE RA UG PAPORMA UG TABI, I WANT RESULT. AND IN HER ADMINISTRATIONS I COULD SEE POSITIVE CHANGES, THOUGH NOT DRAMATIC BUT ATLEAST THE IMPROVEMENTS ARE VERY NOTICEABLE.

[img width=300 height=210]http://www.inq7.net/archive/2005/oct/12/index_image2.jpg[/img]

Giant windmills energize northern Philippines

BANGUI -- When enormous windmills began appearing on a desolate stretch of the northern Philippines coast, locals were overjoyed rather than alarmed.

The steel contraptions, standing 23 storeys high, were unlike anything impoverished families from Bangui Bay had ever seen. But they were enthusiastic nevertheless.

The 15 "giant electric fans" were bringing electricity to their homes for the first time.

"It was a joy to watch them being built," said 72 year-old Rosita Ridun, whose family earns less than two dollars a day collecting pebbles on Bangui beach for sale to construction companies.

"My grandchildren described them as giant electric fans."

Standing in an arc in wind-lashed scrubland, the windmills, which started supplying electricity to 40 per cent of Ilocos Norte province in May, are the first source of clean energy introduced in the Phillipines, a nation with 84 million people reliant on oil and gas.

Costing more than 48 million dollars, the windmills, built by a private company with interest-free loans from the Danish government, can harness winds the strength of Hurricane Katrina which devastated the US Gulf Coast last month.

And as crude oil prices spikes above 70 dollars, interest in the windmills is growing. President Gloria Macapagal-Arroyo has ordered a reduction in fuel consumption and an investigation into possible alternative energy sources.

Consequently, government and state-owned power company officials are requesting the head of the Bangui Bay project, a Danish engineer, try and help them replicate these windmills throughout the country.

"Everybody wants to be a wind developer now," said engineer Niels Jacobsen, president and chief executive of the Northwind Power Development Corp.

Jacobsen started work on the 24.75-megawatt project in 1999 after meeting Ilocos Norte provincial governor Ferdinand Marcos Junior, who was intent on fixing the patchy and low-voltage power supply to his region which lies on the northern tip of the country's electricity grid.

Marcos was well aware of the potential of wind because his father and former president, also Ferdinand Marcos, ordered a study into alternative energy in the 1970s amid the first global oil crisis.

The project itself was a logistical and engineering feat.

Each of the three rotor blades and its base, called a nacelle, weighs 104 tonnes with a diameter wider than the wingspan of an Airbus.

Three piers were built to land these structures and the tapered towers of steel measuring 4.2 meters thick (4.6 yards) at their base, which were shipped direct to Bangui Bay from Europe.

Piles were driven 12 meters (13.12 yards) into the leased land to support a 17-meter (18.6-yard) diameter base plate made up of 300 cubic meters (10,593 cubic inches) of concrete on which each tower stands.

A substation and 57 kilometers (35.3 miles) of transmission lines were also built to deliver the electricity to the province's local power cooperative. The cooperative buys this electricity at a discounted rate rather than sourcing more expensive electricity from a state-owned company.

But it's not just the cooperative and locals who have benefited from the windmills. Northwind earned carbon credits from the project--and will sell 1.5 million dollars worth of them over 10 years to the World Bank which manages a carbon credit fund as part of the Kyoto protocol to reduce greenhouse gases.

"We only sold a portion because, upon the advice of the World Bank, those carbon credits that we are still entitled to may be sold at a higher price later," said Ferdinand Dumlao, Northwind board chairman and treasurer.

Dumlao said the project cost translated to two million dollars per megawatt of power generated, which is more than double the start-up cost of a normal power plant running on coal, oil, or other conventional fuel.

Without the interest-free loans from the Danish International Development Agency (Danida), the project would have been unviable.

Danida provided 30 million dollars in loans, payable over 10 years, and more than 10 million dollars in grants, with the rest of the project cost coming from shareholders' equity, including loans provided by the windmill and other equipment manufacturers.

"It's not really going to make anyone rich," said governor Marcos, adding that Northwind investors would need between 20 and 25 years to earn money.

"Frankly, if there's money to be made the province would have involved itself."

However Marcos does think the windmills will have other spinoffs, such as perhaps becoming a permanent drawcard for tourists.

"Ilocos Norte is not really the spot where you would expect to see a high-tech operation like the windmill, so the people can hardly believe it. I can barely believe it myself," Marcos said.

"You even have tourists visiting the site which is great. It would make people more conscious about the availability of alternative power sources."

[tolstoi]

...ever heard of crab mentality?