Apocalyse Now: Regime of High Oil and Food Prices

[uls]

Mr. Actor21, nag work ka pala sa oil company. Sa import pa.

So alam mo saan galing ang oil na ini-import ng Pinas -- Saudi and Iran. Right?

Gaano kalayo ang byahe from Middle East to Pinas?

How much ang shipping cost?

Now, saan galing ang oil ng Sabah?

Malaysia.

Magkano cost nila compare sa cost ng oil importers natin?

So how can you compare Sabah's fuel price to the Philippines?

Dapat alam mo yan.

[jpdm]

Wow, mahirap ata to. mawawalan ng supply ng oil.

Hatakan pababa.

Mawawalan ng supply ng oil?

Are you sure?

Sa dami ng oil companies, maraming papalit...Hindi lang mga OPEC members ang may capital. O yang Big three.

It is a very lucrative business.

If other other oil companies will fall, new ones will take their place.


baka kamo kita lang ng oil companies ang mawawala.

[uls]

Actor21,

So why did you use Sabah as an example?

You know naman iba ang logistics nila sa atin.

---

im not looking after my interest.

There's just too much anti business sentiment here in the Phils.

Kaya hindi tayo attractive sa investments (local or foreign)

We have to be more business friendly.

Tingin kasi ng mga tao sa negosyante either kaaway o pwedeng gatasan.

Nawawalan ng gana mga negosyante mag invest e.

Tapos magtatanong ang mga tao kung baket mahirap ang Pinas.

Kasi wala masyado namumuhunan.

At ung mga namumuhunan dito ngayon, hinaharass, papahirapan...

---

Capital is the lifeblood of the economy.

Kaya anemic economy natin...

[jpdm]

...The government should reduce the cost of doing business in the country.

...Business is not good in the country because there is a terrible income inequality here, hence there is social discontent...

..it breeds corruption and social instability...

..people are always in the survival mode..

..especially majority of Pinoys including the middle class..

..even greedy rich people...

...people are forced to work abroad..kapit sa patalim because they have no opportunities here..

..businessmen always complain of being harassed...

..how about employees not only harassed but exploited...

..businessmen always complain of poor earnings...

..and yet enjoy and talk about their luxuries..and travels abroad, with spanking new properties and cars like here in tsikot...their families enjoying the perks...

...and who corners all possible lucrative business projects and opportunities in the country...

..like these profitable but greedy oil companies...

...and the majority again with nothing...

...including millions of civil servants...

...I think there is nothing wrong if these greedy oil companies reduce their gluttony and share some of the perks or humongous profits and give back to the society..

--------------------------------------------------------------------------
...pure greedy capitalism is dying...

...Sir John Maynard Keynes and the welfare state advocates are back..

...hindi puro kabig nasa utak...

[actor21]

Kedah refinery infrastructure

The new Kedah refinery will be able to process in excess of 200,000 barrels per day (bpd) and it will process Iranian crude oil. The north-western region is also host to a second refinery project of the same size. Some analysts believe that an over capacity in the global downstream investment may send the cyclical industry into another profit slump by 2010.
Deputy Prime Minister of Malaysia Najib Razak said: "A massive Malaysian oil pipeline project to process and pump oil shipped from the mid-east could lower transportation costs and avoid risks of pirate attacks on tankers at the Malacca Strait… It's primarily for commercial purposes because they think they can transport the oil at a lower cost."

http://www.hydrocarbons-technology.c...edah-refinery/

[uls]

ok... so you tell us how Malaysia delivers fuel to Sabah.

[Gen. Miting]

*uls, hindi naman siguro anti-business. something's wrong eh and it's on the tip of our tongues, gusto na ilalabas ng taumbayan ang unified collective na haka haka nila.

it's the same thing as when the whole thing started in summer this year. nobody totally bought the idea that oil is getting harder and harder to dig and that oil is so high in demand among developing countries. yun pala some "enterprising few" piggybacked on the deadline of the Beijing Olympics. wala naman pala demand na sobrang laki. if there was, then how come everything subsided shortly after the opening.

then it turned it out, that it was those people in "pyramiding like scams" who made a pyramid out of the financial lending system (aka new 21st century term -> subprimes) and who were all counting on the bubble to burst, who started this entire mess. they got burned and they cooked up another scheme. this time they'll distrub the balance of basic commodities. di 'bale na kung ano mangyari sa mundo basta they have to get their money back as FAST as they could.

kung mapansin nyo hindi lang naman oil ang na-speculate. even rice, corn, flour. yun mga bagay bagay na the common people cannot live without. bec. of their so much greed, nakalimutan nila na speculation on crops like rice and corn have one basic flaw - nabubulok-bulok yun. if they price it artificially high or hoard it in their special warehouses, only time will tell na yun money na-invest nila dun, mawawalan na din parang uod na kinakain nabubulok ng crops.

kitang-kita talaga na yun batch ng speculators/investors ngaun 21st century are not very smart. parang out of school youth ang dating, pasok ng pasok kahit ano masagasaan. walang ethics, walang accountability. pyramiding na pyramiding ang dating, mag-create ng hype tapos maglalaho parang bula when things go tough.

if that is the type of business atmosphere that is prevailing today. count me out on supporting them.

i'm a businessman myself but I'm not like these people. importante talaga ang high standards education sa bawat tao. those who are responsible for this mess perhaps read or are products of Rich dad, poor dad in the late 90's. yun author na nagsabi na hindi importante ang education.

siguro after the world recovers, we should find rich dad este kiyosaki and put him in a firing squad or hang him in a guilotheine (tama be spelling hehe) or something. grabe ginawa nya sa'tin lahat.

[jpdm]

[SIZE=3][SIZE=2]kitang-kita talaga na yun batch ng[/SIZE][SIZE=2][SIZE=3]speculators/investors ngaun 21st[/SIZE][SIZE=3]century[/SIZE] are not very smart[/SIZE][SIZE=2]. [/SIZE][SIZE=2]parang[/SIZE] [SIZE=5][SIZE=4]out of school youth ang dating, pasok ng pasok kahit ano masagasaan. walang ethics, walang accountability. pyramiding na pyramiding[/SIZE] [/SIZE]ang dating, mag-create ng hype tapos maglalaho parang bula when things go tough.
[/SIZE]

Bullseye!!

[True Faith]

...I hope the price of wheat and bread will go down..

...Prices of chicken, pork and beef will go down

...eventually transport fare will go down...

...but why is Meralco is increasing its power rates?

...another burden to Juan dela Cruz...

[uls]

Gen. Miting

then it turned it out, that it was those people in "pyramiding like scams" who made a pyramid out of the financial lending system (aka new 21st century term -> subprimes) and who were all counting on the bubble to burst, who started this entire mess. they got burned and they cooked up another scheme. this time they'll distrub the balance of basic commodities. di 'bale na kung ano mangyari sa mundo basta they have to get their money back as FAST as they could.

well im glad u figured that out.

I've been saying speculators were responsible for driving up commodities prices since early this year. While the media and everyone was still saying it is supply and demand.

When the US central bank cut interest rates aggressively in late 2007 to early 2008, the value of the US dollar fell, and huge amounts of money went into the commodities markets to hedge against the falling dollar. That time, a lot of money also left the stock market and went into commodities.

That massive influx of funds into the commodities market drove up commodities prices. Oil, grains, metals... lahat tumaas.

kung mapansin nyo hindi lang naman oil ang na-speculate. even rice, corn, flour. yun mga bagay bagay na the common people cannot live without. bec. of their so much greed, nakalimutan nila na speculation on crops like rice and corn have one basic flaw - nabubulok-bulok yun. if they price it artificially high or hoard it in their special warehouses, only time will tell na yun money na-invest nila dun, mawawalan na din parang uod na kinakain nabubulok ng crops.

Keep in mind that speculators do not take delivery of the physical commodities. They are only buying and selling futures contracts. It's just pieces of paper. They don't hoard the actual commodities.

The harm they did was they affected pricing.

Those hoarders you're referring to are the businessmen who deal with the actual commodities.

They see prices rising so they hoard stuff in warehouses. But they arent the ones responsible for pricing in the world market. They are just along for the ride...

The futures traders in NYMEX, ICE and other commodties exchanges are the ones responsible for pricing.

Yes, rice was also speculated on. That's why in a matter of weeks, the price of rice rose from $400 per ton to $1,000 per ton early this year.

[josh2004i]

...I hope the price of wheat and bread will go down..

...Prices of chicken, pork and beef will go down

...eventually transport fare will go down...

...but why is Meralco is increasing its power rates?

...another burden to Juan dela Cruz...

Iyang mga lopezes ang isa sa mga nakinabang after the FEB. REVOLUTION.
Isa sa mga pabigat sa ating bansa,specially the lopezes. Iilang mayayamang angkan ang nagpapahirap sa ating bansang pilipinas.

But sabi nga ng iba sa atin who cares! business is business

[uls]

People will always look after themselves (and their loved ones) first.

People will only start caring about others (strangers) when they are self-actualized.



Most people in our 3rd world society are still at the bottom 3 layers.

That includes people in government.

That's why our gov't and society is the way it is.

[josh2004i]

People will always look after themselves (and their loved ones) first.

People will only start caring about others (strangers) when they are self-actualized.



Most people in our 3rd world society are still at the bottom 3 layers.

That includes people in government.

That's why our gov't and society is the way it is.

*uls
dito agree ako sa iyo. about 3million new filipino are starving everyday.

[jpdm]

..I hope the government should do its fiscal function by redistributing wealth.

..Pure capitalism have failed to do it...

..neoliberalism and globalization made it worst

..government should review Keynesian Theory...

...the US, our model has become less ideological now...

...the federal government, with its bailout plan, is looking more like a socialist government..short of taking over financial institutions such as AIG....

[True Faith]

Manila Times
October 23, 2008

[SIZE=3]Government Told to Continue Alternative Energy Push[/SIZE]

By Euan Paolo Anonuevo, reporter

ENERGY industry officials said the government should push through with its alternative fuels and renewable program despite the steep drop in world oil prices. On the sidelines of the 34th Philippine Business Conference, Fran-sisco Viray, National Competitiveness Council energy head, said the government should continue with efforts to develop green energy sources through the Biofuels Act of 2006 and the Renewable Energy Bill, which Congress approved recently.
“The government should see to it that these are sustained despite the fact that there is now a lowering in the price crude in the world market,” Viray, a former president of state-owned National Power Corp. (Napocor) said.
While it takes only a matter of days or months for oil prices to fluctuate, it takes time for policies on biofuels and renewables to be crafted, he said.
In the same forum, Francis Glenn Yu, Seaoil Philippines Inc. president, said that government efforts to promote alternative fuel sources should continue to ensure the country’s energy self-sufficiency as well as to help bring down pump prices.
He said E85, or an 85 percent ethanol blended gasoline similar to what Seaoil offers in its stations, sells P14 cheaper than a liter of gasoline.
It would be recalled that the government had pushed for the passage of the said pieces of legislation to help cut the country’s oil import bill especially at a time when the price of the commodity soared to record levels.
Since peaking in July, international oil prices however have gone down significantly over the last few weeks.
Viray, who is also president of Trans-Asia Oil & Energy Development Corp., said the government should also develop energy efficiency policies to help shield the country from the volatility of oil prices

This a correct move.

[uls]

The government should see to it that these are sustained despite the fact that there is now a lowering in the price crude in the world market,” Viray, a former president of state-owned National Power Corp. (Napocor) said.

Ya the govt better see to it investments in alternative fuels are sustained...

the downtrend in oil price can discourage investment in alternative fuels.

[Gen. Miting]

Keep in mind that speculators do not take delivery of the physical commodities. They are only buying and selling futures contracts. It's just pieces of paper. They don't hoard the actual commodities.

The harm they did was they affected pricing.

Those hoarders you're referring to are the businessmen who deal with the actual commodities.

They see prices rising so they hoard stuff in warehouses. But they arent the ones responsible for pricing in the world market. They are just along for the ride...

The futures traders in NYMEX, ICE and other commodties exchanges are the ones responsible for pricing.

Yes, rice was also speculated on. That's why in a matter of weeks, the price of rice rose from $400 per ton to $1,000 per ton early this year.

that is true. if you believe that they are not one and the same.



imho, a gasoline dealer can be a network pyramider in the same was as a network pyramider can choose to buy an ailing gasoline station for investment for future higher resale.

we live in a different world now. we cannot assume that a farmer does only farming. or a doctor does only curing. if that is not the case, eh bakit karamihan ng gamot ngaun binebenta sa mga pyramiding schemes.

the same thing with subprime crisis, the legitimate financial insititutions got "influenced" by these so-called new generation schemes.

kitang-kita naman dun sa isang player ng oil dito. kung anu-ano iniisip na scheme during the oil hike crisis. meron pang lock card lock price. very enterprising indeed

[jpdm]

that is true. if you believe that they are not one and the same.



imho, a gasoline dealer can be a network pyramider in the same was as a network pyramider can choose to buy an ailing gasoline station for investment for future higher resale.

we live in a different world now. we cannot assume that a farmer does only farming. or a doctor does only curing. if that is not the case, eh bakit karamihan ng gamot ngaun binebenta sa mga pyramiding schemes.

the same thing with subprime crisis, the legitimate financial insititutions got "influenced" by these so-called new generation schemes.

kitang-kita naman dun sa isang player ng oil dito. kung anu-ano iniisip na scheme during the oil hike crisis. meron pang lock card lock price. very enterprising indeed

alam ko yung company na yun a.

anyway, the prognosis is really bad for the global economy for the next coming months and years...

global oil demand is going down primarily because G7 and OECD countries are experiencing recession such as the US, UK, Iceland and even Singapore...

Food remained steady but prices should have eased...

[True Faith]

Manila Bulletin
October 26, 2008


P5-billion endowment fund eyed to modernize Philippine farming

By MELODY M. AGUIBA

A P5-billion endowment fund is seen to help usher Philippine farming in a high-technology regime that taps remote sensing and advanced laboratory facilities to raise agricultural productivity, export and spur economic growth.

Without having to release it at once, this fund should be built up immediately so that investments can be on facilities that have long advanced agricultural sectors in Taiwan and in other newly-industrialized economies like Thailand.
"The P5 billion should insulate us from budget ups and downs since agriculture is seasonal. It should be released not longer than five years or it will be of no use. That’s how we’ve been losing out," to other countries, according to Dr. William G. Padolina, International Rice Research Institute (IRRI) deputy director general and Congressional Commission on Science, Technology, and Engineering (Comste) food and agriculture panel head.

We need this to survive from the global recession...

[jpdm]

NEDA's comment regarding the impact of the current prices of oil in the local market....

Manila Times
October 27, 2008

[SIZE=3]NEDA warns Economy To Suffer on
Oil Firms' Reluctance To Cut Prices[/SIZE]

The National Economic and Development Authority (NEDA) is starting to worry that the domestic economy could be adversely affected by what it deems to be ungenerous price rollbacks of oil companies.

“We’re concerned of this issue [underrecoveries of oil firms] because it affects the growth of the economy. If you have high inflation, your real growth will be lower, “Ralph Recto, socioeconomic planning secretary and NEDA chief told reporters over the weekend.
He added: “I don’t think they [oil firms] ever had a P10 under recovery. It is true [they’ve been cautious about price increases, but they’ve also been slow to reduce prices]. If you’re looking at the numbers, [there are more price increases than rollbacks]” Recto said.
Under the law or the Downstream Oil Industry Deregulation Act of 1998, oil firms are allowed to implement automatic increase in pump prices.
“It is now the consumers who are experiencing under recovery,” Recto said, stressing that under recoveries are huge.
Based on computations the agency made earlier, diesel prices should be at least P35.32 a liter while gasoline prices should fall to P40.95 a liter. The NEDA estimates are based on a world market price of $70 a barrel and a foreign exchange rate of P48.28 to the US dollar.
In answer to the oil firms’ call to disclose the basis of Neda’s computations on oil price estimate, Recto said, “If there is a statistical discrepancy of some sort, I don’t think it would be higher than 10 percent. And, therefore, you’re looking at P38, if at all. I think the consumer has really a lot of under recoveries.”
He continued: “I understand what they are saying because they may have a 30-day inventory, 60-day inventory or they may have had bad business judgment. What does that mean? Is it possible that some oil companies hedged forward? Locked in at high price? Made a mistake? And the market is going down. And now they want to pass on the burden to consumers for their sake. Is that a possibility? So let’s find out.”
As of October, pump prices for gasoline amounted to P46 to P50 and P44 to P48 for diesel.
Data from the Department of Energy showed that Dubai crude, the Philippine benchmark for the commodity dropped to $74 a barrel from last month’s average of $95.
Most Filipinos use liquefied petroleum gas, kerosene, diesel and gasoline for lighting and cooking, while jeepneys, buses and motorized tricycles run on diesel.
Any increases in these four main petroleum fuels could affect the quality of life among the more than 16.6-million Filipino households or families.
The National Statistics Office earlier reported that inflation rose to 11.9 percent in September, bringing the third-quarter average to 12.2 percent.
The NEDA estimated that inflation rate is expected to rise by 0.07 of a percentage point for every 1-percent increase in domestic oil prices.
Recto also recommended listing of oil companies in the Philippine Stock Exchange (PSEi) to monitor their financial statements.
“That could be a recommendation looking forward. I think public utilities, by and large, should be publicly listed. Let’s also help develop the financial capital market in the Philippines. Maybe we should be looking at that direction. And it’s also part of democratizing the economy and transparency,” Recto said.
Among the oil companies, only Petron Corp. is listed. Pilipinas Shell Petroleum Corp., Chevron (Caltex) Philippines, Seaoil Philippines Inc., Flying V, Uni-Oil, Total Gas, City Oil, Jetti and Eastern Petroleum are yet to sell shares to the public.
Under the Oil Deregulation Law, an oil refiner is required to sell shares to the public at least 10 to 20 percent through an initial public offering.
-- Darwin G Amojelar