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With the
looming sale by Saudi Aramco of its 40-percent
shareholdings in Petron and the spike in the price of
oil to a high of $117.40 per barrel, the country’s
oil-supply security comes into focus. Without Saudi
Aramco and the concomitant supply of oil in the
country’s energy scenario, the possibility of an
oil-supply crisis—similar to the present rice-supply
crisis—could grip the nation and negate the inroads the
government has made in the economic front.
That
run-up in the price of oil, more than doubling in price
from its year-ago levels should be viewed with concern
by the government in the light of the food crisis—and
for Asia, notably the rice crisis—that is engulfing the
region. What would happen to the country’s oil-supply
situation should the price of oil be bidded up in the
same way Asian nations are bidding up the price of rice
to ensure the supply of the staple for their populace?
The
country may find itself unable to get its oil supply
unless at a stiff price—clearly a stiff price to pay
with the sale by Saudi Aramco of its stake in Petron to
Ashmore Holdings, a company nowhere near any energy
field. And even assuming that the country’s
oil-exploration efforts pay off in the light of the
proactive stance that Energy Secretary Angelo Reyes has
put in place, still, the lag time between the discovery
of oil to flowing the same could mean more than two
years of waiting.
With the
rice crisis as an “endearing” lesson, the government
should view with grave concern the sale by Saudi Aramco
of its 40-percent stake and possibly look back at the
statement of Philippine National Oil Co. (PNOC)
president Antonio Cailao describing Ashmore as an
“astute investor.” Clearly, Ashmore’s astuteness as an
investor cannot match that of having the oil-supply
security that the government badly needs, especially at
this time of global unease over oil.
It
should be well worth citing here that the Philippines,
in its May tender for rice, is seen to up the ante in
securing rice, which price has gone up from just a
little over $500 per ton to more than $700 per ton, and
now to more than $1,000 per ton. From this viewpoint of
a run-up in the price of rice, the country should
revisit its energy-security policy and craft guidelines
on how it aspires to ensure a steady supply of oil in
the light of the Saudi Aramco divestment.
Ashmore
Holdings is no Saudi Aramco in terms of having a
long-term oil supply contract. The astuteness of a
highly rated investment-fund manager cannot equate with
that of having an oil-supply deal unless, of course,
PNOC, or Petron for that matter has already inked a
stable oil-supply deal somewhere. It has been bruited
about that the Alcantaras, who had tentative talks with
Saudi Aramco regarding the oil kingdom’s projected share
sale, could end up as the likely buyer of the listed oil
firm as part of the family’s foray into the energy
sector.
Jpepa
backer
A
nationwide farmers’ association has come out in the open
to call upon the Senate to ratify the Japan-Philippine
Partnership Agreement (Jpepa) in order to promote more
agricultural exports to Japan and attract more
investments to the agricultural sector. “In the face of
a global crisis in food prices, it is necessary that
Filipino farmers be given greater access to markets for
agricultural products,” said the Farmers Cooperative
Union of the Philippines (FCUP).
The
farmers’ group’s call should be viewed with
understanding in the light of the food crisis that is
facing much of the developing world. The Jpepa is seen
to provide more income to the country’s farming sector
as it would open Japan to the entry of Philippine
agricultural products such as pineapples and bananas.
For Arnulfo Dimaandal, FCUP spokesman, the additional
income from agricultural exports would boost investments
in the farming sector.
“These
would enable farmers to purchase more fertilizers and
pesticides to increase production. They would also be
able to build processing facilities to improve the
quality of their products for the domestic and global
markets and generally enhance their competitiveness,”
said Dimaandal.
According to FCUP, the additional investments and income
from the agricultural sector “would help raise the
financial requirements for improving the infrastructure
for agricultural production, including rice, which has
been experiencing a shortfall in production for the past
many years.” This additional income from the export of
cash crops would mean more capital for rice growing,
finally realizing our dream for self-sufficiency of the
staple. With self-sufficiency in grain will come lower
prices within the reach of the common people.
Japan
is the second-largest market for Philippine agricultural
exports, closely following the United States. With the
agreement coming into force, almost 95 percent of
Philippine exports to Japan (in terms of value) will
face zero duties on Day One. The Philippines grows
bananas, pineapples, mangoes, avocados and papayas,
principal fruit items that Japan imports. Among the
vegetables, okra and asparagus are among the country’s
major exports to Japan, said FCUP. Why, even the
Philippine pumpkin in frozen form is also a potentially
exportable vegetable to
Japan.
E-mail: hugagni@yahoo.com |
