MERGED: All About OIL PRICE HIKE

[giddyboy]

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the 'law of supply and demand under the auspices of the corporate sector', you mean, as i haven't exactly seen any circumstance that had the government 'protecting to our sovereign interests.'

the aim of the oil deregulation law was to liberalize the oil industry so that more players can come in, iducing lower prices as a result of competition. the law has proven to be a spectacular failure as a mechanism to achieving lower prices, and has instead allowed greater corporate hold on the industry by making it immune to government control, as how every Energy Secretary from the time the law was enacted raises his hands in surrender over the issue of petroleum price controls, citing the oil deregulation law.

well, there should be (protection to our sovereign interests)...as we all know, petroleum and its products are also a national security issue.

we have the DOE and other agencies for that matter, but as you've mentioned, every energy secretary from the start is helpless over the issue of petroleum price controls...so then this means the law is disadvantageous to the Phils. and therefore must be repealed, or amended at the soonest possible time.

[gareb]

well, there should be (protection to our sovereign interests)...as we all know, petroleum and its products are also a national security issue.

by law it should be. Article XII Section 2 of the 1987 Constitution explicitly asserts that "The exploration, development, and utilization of natural resources shall be under the full control and supervision of the State."

however, even the extraction of our very own Malampaya natural gas at Palawan is 90% controlled by the corporate sector (SPEX-Royal Dutch Shell 45%, Chevron Texaco 45%), 10% by the public sector(PNOC).

imagine where the profit goes.

[M.A.D.]

however, even the extraction of our very own Malampaya natural gas at Palawan is 90% controlled by the corporate sector (SPEX-Royal Dutch Shell 45%, Chevron Texaco 45%), 10% by the public sector(PNOC).

Yes. This is also a similar situation Russia was facing shortly after the fall of the Soviet Union. Boris Yeltsin introduced the massive privatization of Russia's energy to offset the massive inflation and debts the Soviet Union incurred during that time. This was also because of the arms raise between US and USSR.

Russia's Vladimir Putin however changed all that. He nationalized some of Russia's energy sector, Put khodorkovsky behind bars(froze his assets in Yukos oil). Vladimir Putin couldn't have done it in a more convenient time, as khodorkovsky was about to give the majority shares of Yukos oil to western interests.)

Right now western oil players are slowly being driven out of the Sakhalin oil fields as Gazprom is slowly consolidating their right to their own energy.

Some people may not like Putin, but the majority of Russians would think otherwise. You can already find some Russian tourists all over Cebu.

[giddyboy]

You can already find some Russian tourists all over Cebu.

OT:
did u know that our new phil. consul to russia is from cebu? no other than ms. garcia, wife of sonny garcia of sun.star daily.

that (influx of russian tourists) is the result of the new strategy to issue non-visas to Russians...

---ooo---

well, Russia produces their own oil for domestic use & export while the Phils imports oil from abroad...big difference.

also, the Malampaya natural gas project is i think only intended for domestic use, not for export. but correct me if im wrong.

[digitalsuperman]

basta mo abot na 50 ang oil per liter..ambot nalang..waah! oh god please no!

[giddyboy]

however, even the extraction of our very own Malampaya natural gas at Palawan is 90% controlled by the corporate sector (SPEX-Royal Dutch Shell 45%, Chevron Texaco 45%), 10% by the public sector(PNOC).

imagine where the profit goes.

"Who owns the Malampaya project and who is developing it?

The Malampaya project is a national flagship project of the Philippine government and is the owner of the gas resource. It consists of the UPSTREAM and DOWNSTREAM components...Developers of the upstream component are Shell Phils Exploration B.V., together with joint venture partners Texaco Phils and Phil National Oil Co.-Exploration Corp. as contractor of the Department of Energy under Service Contract 38." ---FAQ, malampaya.com

so, correct me if i am wrong, the phil. gov't is the owner of the project and the gas resource. as for the profit, it will be another story.

[gareb]

the philippine government stands as the "owner of the gas resource", however "control" of where the products go and who utilizes them is another issue. please read:

Spex readies 3rd Malampaya oil shipment to Korea
RP now exporting crude oil to Sourth Korea
Service Contract Allows De Facto Foreign Control Over Malampaya
http://uk.reuters.com/articlePrint?a...12109920070328
PNOC board OKs Malampaya sale

ladies and gentlemen, the Philippines is/was exporting crude oil to South Korea.

[giddyboy]

the philippine government stands as the "owner of the gas resource", however "control" of where the products go and who utilizes them is another issue. please read:

Spex readies 3rd Malampaya oil shipment to Korea
RP now exporting crude oil to Sourth Korea
Service Contract Allows De Facto Foreign Control Over Malampaya
http://uk.reuters.com/articlePrint?a...12109920070328
PNOC board OKs Malampaya sale

ladies and gentlemen, the Philippines is/was exporting crude oil to South Korea.

as i see it, the Malampaya project is producing natural gas and condensate(which is an almost equivalent of light crude). the natural gas (which is the bulk of the extraction) is used domestically while the condensate is being exported to Singapore & South Korea.

now this crude oil is the subject also of heated debates, on top of the bigger issue of "gov't control" over the Malampaya as a security issue...in light of the increasing world oil prices, it should have been the initiative of the gov't to redirect these Malampaya crude oil for domestic use.

in my opinion, these are not good signs...

[ajol]

well PTT in mactan near MEPZ 2 still sells DIESEL at 38.26

Petron station across it IS FORCED to LOWER their PRICE TOO.... This is what I CALL MIRISI..... At least PTT is not colluding with the Big 3.....

[gareb]

now this crude oil is the subject also of heated debates, on top of the bigger issue of "gov't control" over the Malampaya as a security issue...in light of the increasing world oil prices, it should have been the initiative of the gov't to redirect these Malampaya crude oil for domestic use.

in my opinion, these are not good signs...

that would be putting it lightly.

this is the consequence of the Mining Act of 1995 (RA 7942) that guarantees, among others, control of the project, even if these firms are mere partners under technical and financial agreements. the supposed "owner of the resource" does not really have much control over the whole operation.

and GMA knows this. she was the one who authored the Mining Act during Ramos' time.