THAI ENERGY experts believe world oil prices have bottomed out but say many challenges remain for the country's economy.
Sukrit Surabotsophon, chairman of the Petroleum Refining Industry Club of the Federation of Thai Industries (FTI), told a seminar yesterday that every research house was predicting world oil prices would start to pick up from next year by US$3-$5 per barrel annually.
Areepong Bhoocha-oom, permanent secretary of the Energy Ministry, said that if oil prices really went up, they would pose a challenge to the country, which has abolished its subsidy on oil products. The state-managed Oil Fund, nevertheless, currently has about Bt40 billion in its coffers.
Chen Namchaisiri, vice chairman of the FTI, said that after Sunday's election in Myanmar, foreign direct investment was likely to flood into that country, which would fuel rapid growth of its economy. This would definitely affect Thailand since Myanmar would use more energy domestically and cut its exports to the Kingdom. Sukrit said that after the huge drop in oil prices from more than $100 a barrel to around $50 at present, about 1,000 of the 1,600 shale-production rigs in the United States had been shut down, but could be turned on quickly once oil prices recover.
"Shale [producers] have almost replaced Opec [the Organisation of the Petroleum Exporting Countries] as the swing producers that helped buffer oil prices in the past. They have proved their ability to pump a million barrels per day of additional output each year when oil prices were at $100 a barrel," he said.
"Shale [producers] have almost replaced Opec [the Organisation of the Petroleum Exporting Countries] as the swing producers that helped buffer oil prices in the past. They have proved their ability to pump a million barrels per day of additional output each year when oil prices were at $100 a barrel," he said.
Chen said the volatility of oil prices was what concerned the private sector the most, not the level of oil prices, since it made it hard to make predictions so as to manage risks and production costs.
THAI ENERGY experts believe world oil prices have bottomed out but say many challenges remain for the country's economy.Sukrit Surabotsophon, chairman of the Petroleum Refining Industry Club of the Federation of Thai Industries (FTI), told a seminar yesterday that every research house was predicting world oil prices would start to pick up from next year by US$3-$5 per barrel annually.Areepong Bhoocha-oom, permanent secretary of the Energy Ministry, said that if oil prices really went up, they would pose a challenge to the country, which has abolished its subsidy on oil products. The state-managed Oil Fund, nevertheless, currently has about Bt40 billion in its coffers.Chen Namchaisiri, vice chairman of the FTI, said that after Sunday's election in Myanmar, foreign direct investment was likely to flood into that country, which would fuel rapid growth of its economy. This would definitely affect Thailand since Myanmar would use more energy domestically and cut its exports to the Kingdom. Sukrit said that after the huge drop in oil prices from more than $100 a barrel to around $50 at present, about 1,000 of the 1,600 shale-production rigs in the United States had been shut down, but could be turned on quickly once oil prices recover. "Shale [producers] have almost replaced Opec [the Organisation of the Petroleum Exporting Countries] as the swing producers that helped buffer oil prices in the past. They have proved their ability to pump a million barrels per day of additional output each year when oil prices were at $100 a barrel," he said."Shale [producers] have almost replaced Opec [the Organisation of the Petroleum Exporting Countries] as the swing producers that helped buffer oil prices in the past. They have proved their ability to pump a million barrels per day of additional output each year when oil prices were at $100 a barrel," he said.Chen said the volatility of oil prices was what concerned the private sector the most, not the level of oil prices, since it made it hard to make predictions so as to manage risks and production costs.
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