Should Thailand buy oil and gas from Russia and Iran?

[webfact]

File photo for reference only

 

by Michael Bridge

 

It was widely reported in the media this week that certain factors in the Thai business community were suggesting that the government should start negotiations to buy oil and gas from two hostile countries.

 

Thailand should buy oil and gas from Russia and Iran to tackle rising energy prices, a representative of the private sector said on Monday.
 
“There is a need to look for new energy sources such as Iran or negotiate to buy cheap energy from Russia,” Kriengkrai Thiennukul, the chairperson of the Federation of Thai Industries (FTI) told reporters.

 

The FTI is just one of the representatives of the private sector that will join the meeting on the energy crisis that is being arranged by the government and chaired by Prime Minister Prayut Chan-ocha this week.

 

With most of the world horrified by what is going on in Ukraine, and are increasing sanctions against Russia, is this really the time to be discussing handing over Thai Baht to the Russians for their oil?

 

Of course, it is depressing to have to pay almost double to fill up your car or scooter at the pumps, but is that a small price to pay against the possibility of an impending WWIII?

 

Thailand’s oil industry

 

In 2020, Thailand actually exported $395M in Crude Petroleum, making it the 46th largest exporter of Crude Petroleum in the world. 

 

At the same year, Crude Petroleum was the 111th most exported product in Thailand.

 

Back in 2016 Thailand held 396 million barrels of proven crude oil reserves, according to the Oil and Gas Journal (OGJ). 

 

Most of Thailand's crude oil and condensates are from offshore fields in the Gulf of Thailand. 

 

Thailand produced 531,328.59 barrels per day of oil (as of 2016) ranking 29th in the world. 

 

Thailand produces every year an amount equivalent to 47.9% of its total proven reserves.

 

However, Thailand is a net importer of both oil and gas and its petroleum reserves are declining with increasing demand.

 

Thailand imported 2.34 million b/d of crude oil in March 2022, jumping almost threefold from 773,000 b/d received in the same month a year earlier and more than double the 970,000 b/d imported in February, latest data from the Thai customs department showed.

 

Fifty-seven percent of its crude oil imports came from the Middle East (28,480 million liters), 15% from Fast East countries such as Malaysia, Indonesia, and Brunei (7,337 million liters), and 28% from other regions such as Russia and Australia (13,870 million liters).

 

Thailand boosted its crude imports from the UAE in March 2022  as refiners picked up a slew of spot cargoes of light sour Murban, medium sour Dubai and Upper Zakum.

Total shipments from the UAE in March jumped to 1.18 million b/d in March from 149,749 b/d received a year earlier and 205,423 b/d in February, the customs data showed.

"Unlike Saudi Arabia, the UAE offers plenty of destination-free cargoes that Asian end-users and trading companies can freely trade in the spot market," the Thaioil feedstock management source said.

Surely Thailand’s reputation on the global stage will be tarnished if they decide to buy Russian oil.

 

Hopefully other sources can be found.

 

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[starky]

Well as a country that sucks up to China. And as a country that has never taken a side in any war as their only interest is their self interest I don't see why not.

  Money number 1 always seemed like a bit of a fancy but in this context it just shows Thailand for what it really is, a base nation in the truest sense of the word with no morals, no real values, ignoble and at times apathetic of and incredibly cruel to its own populace.

[ukrules]

35 minutes ago, webfact said:

Surely Thailand’s reputation on the global stage will be tarnished if they decide to buy Russian oil.

Lol ????

[jastheace]

7 minutes ago, ukrules said:

Lol ????

you only had to quote 'reputation'.

[malathione]

Europe does so why not? 

[wombat]

Personally I don't give a rats where it comes from.

History tells me America was trading with Germany during ww2.

Business is Business and will trump old men sending young men to die to settle arguments everytime 

[Inala]

If they have a moral compass, no, they should not.

 

Those in power contemplating this can turn on the TV at any time and see what Putin is doing to innocent men, women and children.

There are other sources available where they do not need to compromise the values of Thailand in such a pathetic manner.

[blazes]

2 hours ago, starky said:

it just shows Thailand for what it really is, a base nation in the truest sense of the word with no morals

I'm reminded of a scene in George Bernard Shaw's Pygmalion:
 

Pickering: Have you no morals, man?

Doolittle: Can't afford them, Governor.

[RickyJB]

How about drilling for your own oil and gas instead of relying on other countries. Or has the green brigade and bill gates been filling too many thai politicians pockets for that to happen? 

[internationalism]

" is that a small price to pay against the possibility of an impending WWIII?"

How thailand now stop buying oil from russia could influence world war?

Russia has some 8000 nuclear warheads, and they are not making them anymore, they have more than enough to kill the world 10x over. Similarly to the USA nuclear potential.

 

Thailand, and so many countries around the world (that including the USA) are still buying oil and gas from russia.

Some traders just mix russian oil below 50% with oil from some other producer - so it's not russian anymore.

 

Russian crude oil is $30 cheaper now, that the Brent, which is trading at $110. That is some 27% cheaper.

That price difference will only grow, as europe is contracting now from the Saudi Arabia regime. Rich europe can outbid poorer thailand (and so many other poor countries) from OPEC oil.  Unfortunately, all arab countries in OPEC are authoritarian regimes in par with Russia on human rights

 

[malathione]

7 minutes ago, Inala said:

If they have a moral compass, no, they should not.

 

Those in power contemplating this can turn on the TV at any time and see what Putin is doing to innocent men, women and children.

There are other sources available where they do not need to compromise the values of Thailand in such a pathetic manner.

So you're implying Europe has no moral compass? Or does economic pain trump morality? Even the new EU sanctions on fossil fuels announced last month exempt pipeline deliveries and refined products.

[Inala]

10 minutes ago, malathione said:

So you're implying Europe has no moral compass? Or does economic pain trump morality? Even the new EU sanctions on fossil fuels announced last month exempt pipeline deliveries and refined products.

Well, buying Russian oil & gas was the status quo for Europe when the war started, they're not making this decision now. I'm sure if they were in Thailand's position, there is no way they would.

But on the subject of Europe's morals, why aren't they ganging together to stop Putin? This is their own backyard...can't they see what's coming their way if they don't?

[Isaan sailor]

Why not buy oil from the bad guys?  Thailand could become the Hub of Oil Distribution, and export to the USA and Europe!

[malathione]

1 minute ago, Inala said:

Well, buying Russian oil & gas was the status quo for Europe when the war started, they're not making this decision now. I'm sure if they were in Thailand's position, there is no way they would.

But on the subject of Europe's morals, why aren't they ganging together to stop Putin? This is their own backyard...can't they see what's coming their way if they don't?

I have to agree with you there. Both points.

[Molly Malone]

NO absolutely NOT!!!!!!!

[PeachCH]

Why not? Europe shot in their own legs with the embargo. 

[ezzra]

A dilemma over morals and principles and business common sense..

[jethro69]

3 hours ago, starky said:

Well as a country that sucks up to China. And as a country that has never taken a side in any war as their only interest is their self interest I don't see why not.

  Money number 1 always seemed like a bit of a fancy but in this context it just shows Thailand for what it really is, a base nation in the truest sense of the word with no morals, no real values, ignoble and at times apathetic of and incredibly cruel to its own populace.

"never taken a side in any war"??? Prove me wrong, but during Vietnam war Thailand was one of only 5 who were allies with the US. I think the only good thing that came out of it was Pattaya.????

[vandeventer]

45 minutes ago, RickyJB said:

How about drilling for your own oil and gas instead of relying on other countries. Or has the green brigade and bill gates been filling too many thai politicians pockets for that to happen? 

Drill baby drill, I bet there are plenty of old Dinosaur's beneath our feet.

[Robert Tyrrell]

Good Morning ???? 

 

The Question is Thailand, Do you support Oppression, Dictatorship and Genocide !!?

Some very serious!! Questions ! 

[Robert Tyrrell]

2 minutes ago, vandeventer said:

Drill baby drill, I bet there are plenty of old Dinosaur's beneath our feet.

How about getting off !! The oil addiction and turn to Green Energy alternatives !! We have the Technology, We are just allowing the fossil fuel industry to control us !! 

[phukettrader]

1 hour ago, wombat said:

History tells me America was trading with Germany during ww2.

Yes, Grandfather Bush (Prestcott Bush) was a director and shareholder of Union Banking Corporation when it was cancelled by the US government for funding Nazi companies during ww2!

[DUNROAMIN]

Thailand will follow the brown envelopes.

[blazes]

7 minutes ago, Robert Tyrrell said:

Good Morning ???? 

 

The Question is Thailand, Do you support Oppression, Dictatorship and Genocide !!?

Some very serious!! Questions ! 

Well, I guess any country that does business with China is indeed "supporting" those undesirable behaviours....

So why single out Thailand for condemnation?

Where would Walmart (to mention only one US company) be without cheap Chinese imports?

[sawadee1947]

What a question......(sarcasm)

Of course Thailand should stay together with other autocrats or dictators. Don't have any scrouples now. (sarcasm)

As most countries in the world are rules by autocrat leaders.????

[plus7]

Hi

 

When anyone mix morals,politics,money in one topic you either blind/deaf or did not learn your history lessons in schools.

 

I will remind a quote from Kapital:

 

Quote

 

100 per cent [profit] . will make it ready to trample on all human laws; 300 per cent., and there is not a crime at which it will scruple, nor a risk it will not run, even to the chance of its owner being hanged.

 

 

Tempora mutantur ?

 

Such imposed "moral" restrictions is a weapon to destroy competing economies. They buy - but for other countries, it is not good, not "moral".

It is similar to quotes on carbon emissions. US joined just very recently, but all the way pushed all other countries to carbon restrictions.

 

 

 

 

[rwill]

Well OPEC charges Asia more for oil than other regions.  They probably should look for alternatives.  It might at least get OPEC to give them the same rates as other regions.

[IAMHERE]

After the Ukraine difficulty is settled, everyone will line up to buy Russian/Ukrainian oil & gas.  Nothing wrong with Thailand being ahead of the times.  Besides, Thailand doesn't have a dog in that fight; stay out of it there is nothing to be gained by Thailand. 

[wenshidi]

No mention of the Burmese gas fields?

Are the stats in this article really reliable?

[bignbad]

Even if they did, do you all really think the price of fuel at the pumps would go down, or the profits be shared amongst the people?