Tuesday, July 8, 2008

Oil Price and What's Next


I could actually see our relation on Petronas with oil price. I can also understand the great negative impact on us if today we do not gearing up pursuing alternatives energy to curb and manage current situation. By avoiding and not looking into the actual strategy and implementation, we will be experiencing another turmoil of 97/98 financial crisis.


However, what I failed to see Petronas today was very slow in pursuing renewal energy for us. As one of the Fortunes 500 companies, they should have known the criticality of being green in near future.


1. Much discussion and conferences among world leaders about promoting renewal energy as part of the alternative of crude oil. Green energy such as solar should be made widely and affordable. Make it free electricity then. We have been blessed on unlimited sunshine in our country, yet we still rely on TNB to provide us the electricity usage. One of the ways is to let Petronas joint effort with TNB to provide such resources to our people. With the capacity of technology and expertise from Petronas, they will be able to assist TNB in offering solar panels and grid control installation in the most affordable way for citizen like us. TNB, instead of worrying people will steal potential electricity cables/panels and resources resulting of heavy revenue lost, will focus on providing this renewal energy as new service. In return TNB can provide natural energy for Petronas on any electricity usage without any cost. Any taxation on such a service should be exempted for TNB and Petronas.


2. Instead investing in the hospital and medical industry, I also suggested Petronas pursuing wind energy such as country in US, Canada and The Netherlands. We have many high areas as hills and mountains contributed quite substantial space looking at the entire geographical of Malaysia. The wind turbine can be installed at many various locations to generate such natural electricity resources for industry and home usage. A wind turbine is a rotating machine which enables the conversion of kinetic energy in wind into mechanical energy. If the mechanical energy is used directly by machinery, such as a pump or grinding stones, the machine is usually called a windmill. If the mechanical energy is then converted to electricity, the machine is called a wind generator, wind turbine, wind power units (WPU) or wind energy converter (WEC). This natural source method has been widely practiced since way back by the Persian during 200BC, Roman Empire 250AD and practically used by others from 7th Century onwards. It could serve a backup energy for solar should grid control and panel not available or as a twin energy resource along with solar. All commercials and industries will be required to adapt this method and provide greater savings for expenses with incentives and tax rebates.


3. Water treatment and source that generated by hydroelectric dam will either jointly power by solar and wind energy. Water resource that powered by hydro-electric dam will not cause any green house effect and the actual source to generate hydro-electric dam should be reviewed. Today we still rely on petrol as the main source. By introducing twin energy as in solar and windmill quickly,we could have enjoyed far cheaper cost of water consumption. If there is any possibility of using alternative energy for water treatment by means should be encouraged. As the matter of fact, we don't really enjoy clean water as what it claimed to be, the effort of ensuring high technology filter being installed in the treatment area before we obtained via our tap at all our households and other industries. In the long term, we do not need to have extra filter to be installed in our home yard, and we are ensured with quality of our water consumption. It would greatly reduce any potential of maintenance cost of extra filter installed and our health quality will not be compromised.


4. Bio fuel or bio diesel which has been widely discussed for many years. In Malaysia, we have an agency to ensure the technology and research is being done appropriately. As to date,I see no progress in such an effort. Petronas will be the most ideal entity to speed up on such activities. One of the possibilities of using our palm oil to become our next source replacement of petrol. We should have been acted quickly in adapting this potential technology as it is clean and self sufficient. We are one of the largest producer of palm oil countries in the world. We have many opportunities in maximizing such as encouraged more job opportunity and land to pursue palm oil plantations. The rewards in long term is very much unlimited. At the same time, pursuing more effort in research and maximizing with multiplication of palm oil substances into oil/petrol replacement is definitely promising. Any possible of pursuing new and green energy, should be invested by the government such as providing incentives and heavy tax exemption. Why are we still not tapping this prospective method?


5. On NGV has been a losing money for Petronas, the government should re look and provide more incentive in selling and producing more gas as interim of using petrol. Providing incentives and price reduction for installation of NGV tank as part of the backup of petrol would be ideal and encouraged widely. Instead of just providing cash rebate to citizens like us will not be effective in medium-long term. Until, we have nationwide gas stations in place,we can still use petrol if we don't find any gas station. The government should encourage other oil and gas providers providing NGV service to consumers as well. By allowing such competition, we could let the gas price to be floated which is much affordable comparing to petrol price. Consumers could have extra choices to fill the tank with petrol and gas depending on usages. In the much longer term, I expect most electricity that powered a vehicle will be equipped with solar panel i.e. car battery. Disposing car battery inappropriately could cause environmental pollution. Gradually, we could introduce by installing solar panels as the next alternatives energy for future vehicles.


6. Our vehicles should be issued one time road-tax during our purchases. It should be incorporated with purchase price further itemized when quoted. National and other home assembled cars should abolish other related taxes to provide more affordable to own a car, especially for low-medium income earners.This will encourage more people to choose national cars with fuel saving concerns. Petronas with great capacity in technology should work with our national car providers such as Proton, Perodua and NAZA in improving the engine fuel saving consumption as much as possible. Once again, Petronas could generate further opportunity in venturing another potential field by improving and producing automobile engine technology for local and exported cars.


7. Older cars for more than 20 years on the road should be ready to trade-in and to be send for dismantling parts and other reproducible steel requirements. The steel industry will once again rise after falling of Perwaja. Production in melting and dismantling should be power by any renewal combination energy instead on relying of petroleum. As long the steel industries are willing to accept and be environmental friendly, they should adapt renewable energy as part of their production line. Any companies that pursuing this idea should be granted more tax exemption as part of the encouragement. If so, we could have addressed too many old cars in our city which may produce environmental unfriendly due to ageing and waste consumption from the car itself. Buyers who traded-in should be enjoying better rebate and discounted in purchasing a new national or home assembled cars.


8. The steel industries will be able to contribute in local consumption of building constructions activities at a lower cost. The materials that produced would be available for building better quality home for low and medium income earners. As all productions of renewable steels are done locally, the running cost is definitely lower. At the same time, we could improve and enhance our railway track by creating better and reliable track with lower maintenance cost. It would naturally promote train systems to be delivered and produced locally on railway track. Petronas could play a role by contributing some of their expertise in the fast-track railway engineering. Subsequently, our dream of staying in Ipoh but work in KL with less an hour train away will be materialized soon.


I may not be an economist but seeing a big picture approach from lay-man perspective it could be possible. We can then encourage all other oil and gas industries to participate and pursue for renewal/green energy. At the same time, increase higher taxes for income that generated from crude oil while providing huge incentives and relief taxes if pursuing in alternative energy.


We can then safely pursue less dependant on petrol and other crude oil. I believed a drastic drop of crude oil price will be happened.

Petronas should have this thought
by now.

1 comment:

nadzri said...

Green energy means loss to the oil & gas company.