Despite the low price of gasoline in the Philippines (and the world for that matter), the department of energy said that they will push through with the implementation of the biofuel law as well as higher biofuel mixture in fuels sold at the pump.
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I was watching Market Place Middle East (MME) on CNN and there was a segment there discussing on what the ideal price of Oil should be. Known as the Goldilocks of Oil Prices because it is neither hot nor cold, but just right and palatable for both producer and consumer. Same as the porridge concept in “Goldilocks and the Three Bears.”
Basically a price less than $50/barrel is not feasible for Oil Producers because it will hit their profit margins and discourages oil producers from investing in newer oil exploration projects.
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After much shellacking from politicians and transports groups for being too slow in lowering their pump prices, publicly listed Petron Corp offered their financial files for scrutiny so that politicians can check for themselves if the company is indeed profiting unjustly with their product pricing.
Petron Public Affairs Manager Virginia A. Ruivivar. said : “If lawmakers actually look into our financial position, they would find that we are in a very difficult situation.”
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I always like watching Solita Monsod’s portion of the evening news on Qtv, where she gives an economist’s view point on certain topics so that common Joe on the street can easily understand. Solita Monsod is a respected economics professor, columnist and a former cabinet minister of the Aquino government. She ran for Senator in a previous election but failed to make it to the magic 12 in order to win a seat in the Senate. Yep, I actually voted for her.
What she tackled this evening was the age old question on whether the Oil Companies are guilty of rigging and keeping the price of gasoline high despite prices on the world market already going down. More specifically the Big Oil Companies (Shell and Petron) who seem slow in adjusting there prices when the small oil players have already lowered theirs.
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Had some free time on hand so we decided to whip up a database of the historical prices of gasoline in some select countries.
Depending on who’s side you are on right now, you could either be happy or sad with the news of falling gas prices.
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On the 9th of October, 2008, the Philippines started to extract oil once more from its own borders via the activation of 1 of two wells in the Galoc oil field off the coast of Palawan. The Galoc field is estimated to have 10 million barrels of reserve, based on an assessment in 2006 for a 2 well development. The second oil well is expected to start production soon.
They will extract about 17~20,000 barrels of oil per day, meeting 6% of the Philippines 350,000 barrel per day oil requirement. The Galoc Oil field was discovered in 1981 but due to current cost of extraction and the price of oil in the world market then, was not deemed feasible for tapping.
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