Thailand's plan to increase oil reserves is challenged financially

[snoop1130]

 

The Energy Minister of Thailand, Pirapan Salirathavibhaga, has proposed an initiative to enhance the country's oil reserve security by increasing the strategic petroleum reserve (SPR). However, this plan is facing resistance from industry execs due to financing barriers.

 

Pirapan wishes to increase the oil reserves of the country from a coverage of 50 days to 90 days of both crude and refined oil. The objective is to make sure the country has enough oil supply in case of interruptions from major providers. Most of the oil Thailand imported last year came from the Middle East.

 

The new SPR plan, if given the go-ahead, would necessitate the total oil reserves to be augmented by 10 billion liters more than the current amounts, according to an anonymous representative from an oil refinery firm. But, the rep also highlighted the significant financial challenges this plan could pose.

 

The fiscal 2025 budget, which starts on October 1, has already been majorly allocated to other projects, including a 10,000-baht digital money giveaway. This leaves restricted funds for boosting the SPR, according to the source, who also noted the complications with trying to source financing from operators in the oil industry.

 

 

Many oil refineries have recently put a lot of money into improving their diesel quality to comply with Euro 5 environmental emission rules, effectively from January.

 

A representative from the sugar cane crushing sector suggested that the government should focus on replacing fossil fuel-derived oil with ethanol. This can be done by blending sugar cane derivative (a raw material for ethanol) with gasoline to generate different gasohol mixtures.

 

Public opinions are currently being sought on the oil plan through a hearing that will go on until July 12. The oil plan is expected to run from 2024 to 2037.

 

Meanwhile, Pirapan has directed the Department of Energy Business to further look into the SPR plan. Though the International Energy Agency recommended Thailand increase its SPR in 2013, the idea was set aside after a crude oil surplus in 2014 due to a boom in shale oil production in the US.

 

File photo for reference only

 

-- 2024-07-08

 

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[Gsxrnz]

Kudos to the guy for thinking strategically. When the excrement hits the fan, worldwide logistics will fall apart. 

[hotchilli]

21 hours ago, snoop1130 said:

The Energy Minister of Thailand, Pirapan Salirathavibhaga, has proposed an initiative to enhance the country's oil reserve security by increasing the strategic petroleum reserve (SPR). However, this plan is facing resistance from industry execs due to financing barriers.

Have a chat with Biden, apparently he selling USA's SPR at a good price.

[john donson]

maybe build 1 nuclear reactor , but no THAI people working  in , for or around it ?

[Almer]

More sugar cane means more burning. 

[Almer]

8 hours ago, Gsxrnz said:

Kudos to the guy for thinking strategically. When the excrement hits the fan, worldwide logistics will fall apart. 

Yes worldwide it isn't if it is when. 

[Srikcir]

2 hours ago, hotchilli said:

Have a chat with Biden, apparently he selling USA's SPR at a good price.

The US is the biggest oil producer in the world.

So it uses SPR oil primarily to depress US refined oil when pil producers such ad OPEC attempt to raise oil prices, in effect to punish the US economy. When cost of foreign oil is cheaper than SPR oil, US buys so it can continue to leverage US consumer costs.

In the alternative when US allies are politically pressured by international cartel oil price increases to alter their political agendas, the US can and has supplied cheaper energy to its allies. 

Problem for Thailand is as a net energy importer, it really can't play the same game. It would do better to expand its energy production to improve its energy sustainability and INDEPENDENCE.

[hotchilli]

1 hour ago, Srikcir said:

Problem for Thailand is as a net energy importer, it really can't play the same game. It would do better to expand its energy production to improve its energy sustainability and INDEPENDENCE.

Problem for Thailand is they don't have the money to do it.

What money they do have is either held by the elites or misappropriated.