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