On high oil prices and China-made products

We received a number of reactions and comments on past columns which we are giving way today. Here are two readers who have given their suggestions on how the country could cope with the recent record-rise in oil prices (“Nightmare of High Oil Prices,” Sept. 21, 2007).

Cableman writes: “With all the money the government is receiving by selling off the power plants to help Napacor out of its mess, there could be some money left over to build a liquified natural gtas terminal somewhere like nearby the old Bataan Nuclear plant (BNPP).

“If they build a LNG terminal over there and bring in the LNG from Libya, Qatar, Saudi Arabia, or Indonesia, it would be a lot smarter than building a new nuclear plant.

“(Build) a pipeline under Manila Bay and set up a gas distribution network up to Subic Bay and Clark Field. Use this LNG to power some gas turbine power units while the common man can convert his car to run on Compressed Natural Gas.

“Air pollution from buses and trucks will be minimized if they convert to the cheaper CNG. LNG will be available from these countries for another 20 years; that’s about how long a gas turbine unit is designed to last.

“Building a nuclear plant to help the Philippines now is not very smart. Put your investments into more geothermal and hydroelectric plants. Next would be to move into solar power and wind turbines.

“Bring up also the vast gas reserves that are expected to be found around the Spratly Islands. Let’s take some of the money from selling off the power plants for the development of this resource in a fast track effort.

Re-investing profits

“We think there should be more pressure on the Big 3 to re-invest their… high earnings and profits into the Philippine energy sector.

“In Korea, the local oil companies were required to re-invest their profits into the local energy sector. They took the excess profits and paid out dividends to the stockholders, and they took what funds were available to build a gas pipeline and local neighborhood transmission system.

“They built a large LNG (liquified natural gas) terminal along the coast in Ulsan and near Seoul to re-gasify the LNG, and then they distributed the CNG (compressed natural gas) for gas turbine power units, and for the household and industrial use of the gas.

“Buses were converted to run on CNG as well as private cars and trucks. This was very cost effective and profitable for the oil firms there. With the trend in rising gas prices, it would be (the same) here also. “The Philippine government needs to re-negotiate its contract with Shell and Chevron for the Palawan Gas projects.

“They need to pressure these two, and also Petron, to put their large profits back to work here and help the Philippines get the Spratley Islands natural gas reserves developed.

“With this development, we can bet the average Filipino will be able to cook his food without using charcoal or LPG at a very low cost. He will also operate his car or truck with lower costs than he is now.

“His electric power rates will fall by at least 20 to 30 percent.

“Cement prices will drop as the cement plants can burn natural gas in their kilns.

“This will stabilize the economy here to the point that new investors will flock into the country (similar to what) I saw in Korea in 1988-1993. I think its time for the government to forget nuclear plants as they are not cost effective, (and) it costs as much to decommission a plant than it does to build it.

Here’s a reaction from a reader who calls himself Apeng Daldal: “Let me tell you that OPEC can do whenever they want. They can jack up the price (of oil) tenfold and … no one can do anything about it, unless of course the US decides to invade the whole Middle East, which is probably not going to happen.

“The lesson here is that nobody learned a darn thing in ’74! Instead of investing in new technology that would curb the appetite for foreign oil, this whole idea just went down the drain.

“Of course, conservation is still a key to combating high prices, but (so too is) technology development. We can restart that white elephant project called the Bataan Nuclear Power Plant, and invest in the technology and foreign managers from Japan and Germany to power that behemoth. Heck, we might just end up exporting some of the left-over power.

“The government (could also consider) subsidies on solar energy and the sort.

Wrongful generalization

We also have a reaction from Stephen Lim on our column, (“Made in China”, Aug. 17, 2007). Here is what he has to say:

“Why is it that in this controversy about poor Chinese products, the products in question are being labeled ‘Chinese’ goods, instead of ‘Company ABC’ goods in China?

“By this I mean – in the USA, for instance, when there is a recall of a particular product, say tires, the brand name is attached to the product, say ‘Firestone tires,’ not ‘American’ tires. The target is more specific. We do not say ‘American tires’ in general, but only the particular manufacturing company’s tires. So in the public’s eye, it’s very clear not all American tires are bad, just like not all Chinese-made goods are of poor quality.

“If I were the Chinese government, I would make sure that all press releases specifically mention the particular company’s name, instead of allowing the shoddy goods to be labeled ‘Chinese’ goods in general. I would even consider hiring media consultants to make sure this happens.

“Then they wouldn’t have to resort to retaliatory nonsense like declaring our banana chips to have excessive amounts of preservatives, or resort to other trade-related sanctions against the USA.” Well, Sen. Miriam Defensor-Santiago learned that lesson, too. The red-faced good senator had to apologize for making a general statement to the effect that the Chinese invented corruption.

Search for next poker millionaire

Poker tournament enthusiasts aspiring to join the search for the next poker millionaire are invited to participate in the poker “free-rolls” (no tournament fees) competitions conducted daily at The Player’s Den, the Philippine Poker Tour (PPT) clubhouse, located at 1786 A. Mabini, Malate, Manila. The Main Event of the 4th PPT Million-Peso Hold’Em Champions competitions, the only locally organized tournament that guarantees the champion a minimum of P1 million as prize, is scheduled to be held on 15th December 2007.

For details and schedule of events at The Player’s Den, visit www.PhilippinePokerTour.com or call the PPT Secretariat at 812-0153, 524-7254, 0926-6452956, or 0920-9218891.

“Pag-usapan Natin” at IBC-TV 13

Watch “Pag-usapan Natin”, a segment in the IBC-TV 13 news program, News Tonite, from 10:30 pm to 11 pm (Mondays to Fridays) as we discuss issues that have relevance to our everyday living. Viewers may send their comments to Sunshine Television c/o Valle Verde Country Club, Pasig City.   

Should you wish to share any insights, write me at Link Edge, 25th Floor, 139 Corporate Center, Valero Street, Salcedo Village, 1227 Makati City. Or e-mail me at reydgamboa@yahoo.com.

Show comments