PM: Fuel bids must go ahead as energy sources are running out

[Lite Beer]

PM: Fuel bids must go ahead as energy sources are running out
The Nation

BANGKOK: -- PRIME MINISTER Prayut Chan-o-cha has insisted that his government will go ahead with the 21st round of fuel exploration and production bids to boost the country's energy security, despite the National Reform Council voting this week for the round to be scrapped.

The Ministry of Energy has maintained the February 18 deadline for bid submissions.

"Don't come out to protest [the decision]. I don't allow [it]. The energy ministry has already made the decision to go ahead, and will open the concession [bids] in February," Prayut said yesterday.

"I think the ministry and concerned agencies have considered all aspects positively and negatively. The Reform Council has already discussed energy reform based on fact. I wonder why they don't understand."

The government has to pay attention to energy security, he said.

Hunt for possible sources

In response to the 21st round of exploration, a survey was recently initiated to try and pinpoint potential petroleum resources.

"If we find a sufficient resource, we could adjust our regulations about the benefit. If we don't grant the concession to anybody to survey potential sources, how could we know whether or not the petroleum exists," he said.

The existing 26 sources of petroleum will run out in the next six years, he said, and noted that the government needed to find other reserves.

"We don't know how much we have [in other potential reserves]. Satellite images provide some ideas but we have to look into the earth geologically. Our sources of petroleum are different from foreign countries, so we have to look into detail," he said.

"If we cannot find other sources, who will take the responsibility when we run out of domestic petroleum in the next six years?"

Thailand relies on natural gas and electricity from neighbouring countries.

"What happens if they shut down the pipeline and cut off electricity?" Prayut said. "Oil is cheap now but what do we do if we cannot buy it?"

Petroleum could be another source of income for the government, he said.

"We don't hike taxes … so where are the sources of income for the government?" he said. "We will do this transparently," he added.

Prayut also said in his weekly TV programme that his government was adjusting the structure of energy prices in order to have fair prices for all, especially the poor.

"We have to adjust the excise tax for some kinds of fuel and reduce the subsidies for others," he said. "Please be patient. We are working on it.

"The poor is the priority but we don't abuse the market. If we subsidise any kind of fuel, people will use that kind too much," he said.

The government will draft a new energy plan based on what was being used, he said.

Thailand relies too much on oil and gas - as much as 70 per cent of total energy use, he said. "We have to look at coal and alternative energy. People might oppose some kinds of fuel such as coal but new technology could make it clean and be more environmentally friendly, I think."

Source: http://www.nationmultimedia.com/business/PM-Fuel-bids-must-go-ahead-as-energy-sources-are-r-30252082.html

-- The Nation 2015-01-17

[BSJ]

' "We have to look at coal and alternative energy. People might oppose some kinds of fuel such as coal but new technology could make it clean and be more environmentally friendly, I think." '

Yes, bring on that clean coal technology. Of course it will cost a fortune, but that's OK we don't mind if our power bills go up a bit.....do we?

[plachon]

' "We have to look at coal and alternative energy. People might oppose some kinds of fuel such as coal but new technology could make it clean and be more environmentally friendly, I think." '

Yes, bring on that clean coal technology. Of course it will cost a fortune, but that's OK we don't mind if our power bills go up a bit.....do we?

Prayuth clearly has little clue about the global or national energy market and trends. Coal is becoming a sunset industry as countries like Australia are learning to their cost. As climate change kicks in and countries around the world both sign up to lowering CO2 emissions and move towards non-fossil fuel sources of energy, coal is going to be the first to be ditched. Coal is never going to be made "clean and more more environmentally friendly" even with the latest technology. To bunch coal with "alternative energy" like that is disingenuous at the very least. He is clearly being poorly advised and is out of touch with what is happening outside the Thai bubble.

And if the "existing 26 sources of petroleum will run out in the next 6 years" and Thailand does not have any more coming on stream in the next couple of years, then it really is a bit late to only be going out and searching for the last few drops at the bottom of the barrel now. Thailand seems to have passed peak oil nationally long ago and is on the long slow descent down the other side - just the time when any forward looking nation would be moving heaven and earth to transition over to renewables. But not here, where I strongly suspect the govt is going to push for fracking the Northeast, and that is what the geological hunt he alludes to is about. But fracking has just become uneconomical in the short term, as oil and gas prices have crashed on global markets - again, the good general is totally out of touch with reality. Still, he will no doubt push ahead regardless and end up holding any transition beyond fossil fuels back. It will cost Thailand dearly.

[BirdsandBooze]

I suspect talks have already taken place with China for it to build coal fired power stations here and supply the fuel. The problem is that to make coal burning anywhere near as clean as gas powered plants would be prohibitively expensive, so the common Chinese model with it's high pollution and attendant health problems would likely be the standard.

[worgeordie]

Just hope the never take the Nuclear route ,thats when i

would be moving away from Thailand.

regards Worgeordie

[NeverSure]

Doesn't he know that this is the worst time to try to sell someone on exploring? There's a worldwide oil glut and prices are so low it isn't worth going after new sources right now.

[NeverSure]

It's possible to burn coal cleanly. It just costs money and requires strict checking and management.

"Technological innovation introduced through the CCT Program now provides consumers cost-effective, clean, coal-based energy." LINK

However, burning coal cleanly is cheaper than buying oil and burning it if you have the coal. I doubt that Thailand and certainly not China would make the investment to get a clean plant running.

[Daniel Boon]

' "We have to look at coal and alternative energy. People might oppose some kinds of fuel such as coal but new technology could make it clean and be more environmentally friendly, I think." '

Yes, bring on that clean coal technology. Of course it will cost a fortune, but that's OK we don't mind if our power bills go up a bit.....do we?

There is brown coal and black coal is - comparatively speaking - brown coal is like a light beer, you have to go through more to get the same effect as black coal (full strength beer) ...

For several years, the fossil fuel industry in Australia had the dim witted politicians think - and try to sell to the public - that they could clean the emissions up (scrub them) and or carbon sequestration (sticking it in big holes underground) ... the ROI was totally impractical and not achievable.

(CSG - coal seam gas & shale oil gas is proving ineffective; for every cubic metre they capture, at least 10 cubic metres are fugitave (they escape after fracking splits fork formations that have trapped the gas)

[Don Aleman]

I think he really believes someone, anyone, will actually bid

on any Thai project !

[monkeycountry]

I think he really believes someone, anyone, will actually bid

on any Thai project !

Since the government and thereby the general is the majority shareholder of PTT I can pretty much guarantee there will be at least one bidder.

[green job]

' "We have to look at coal and alternative energy. People might oppose some kinds of fuel such as coal but new technology could make it clean and be more environmentally friendly, I think." '

Yes, bring on that clean coal technology. Of course it will cost a fortune, but that's OK we don't mind if our power bills go up a bit.....do we?

Prayuth clearly has little clue about the global or national energy market and trends. Coal is becoming a sunset industry as countries like Australia are learning to their cost. As climate change kicks in and countries around the world both sign up to lowering CO2 emissions and move towards non-fossil fuel sources of energy, coal is going to be the first to be ditched. Coal is never going to be made "clean and more more environmentally friendly" even with the latest technology. To bunch coal with "alternative energy" like that is disingenuous at the very least. He is clearly being poorly advised and is out of touch with what is happening outside the Thai bubble.

And if the "existing 26 sources of petroleum will run out in the next 6 years" and Thailand does not have any more coming on stream in the next couple of years, then it really is a bit late to only be going out and searching for the last few drops at the bottom of the barrel now. Thailand seems to have passed peak oil nationally long ago and is on the long slow descent down the other side - just the time when any forward looking nation would be moving heaven and earth to transition over to renewables. But not here, where I strongly suspect the govt is going to push for fracking the Northeast, and that is what the geological hunt he alludes to is about. But fracking has just become uneconomical in the short term, as oil and gas prices have crashed on global markets - again, the good general is totally out of touch with reality. Still, he will no doubt push ahead regardless and end up holding any transition beyond fossil fuels back. It will cost Thailand dearly.

Sorry to be rude,, What a utter load of bull, Global warming is and has been time and time again to be the bigest Scam ever

[rickirs]

"Don't come out to protest [the decision]. I don't allow [it]."

General Prayuth tactful as always.

Going ahead with fuel bids is just a waste of effort. I doubt there will be any legitimate bids made on the reserves with the price of oil and gas below the cost of exploration, development, and extraction. Oh, some companies may make a minimum bid to tie up the reserves for book purposes to strenghten stock value but until oil reaches $65-$100 pbl there will be no significant activity. China might bid just to put an oil platforms offshore to "show the flag" and poke the US' 100-year friendship with Thailand.

[smutcakes]

Wonder what the rush is for this. I presume this is a potentially lucrative money maker for the boys, to good to turn down despite the NRC voting against it.....

[surangw]

they are aware of world oil prices are taking a plunge ?

[maidee]

can thailand not buy electricity from one of them big US navy aircraft carriers that have nuclear power ?

looooooooooooooooooool