Setting up Strategic Oil Reserves

It is more fun criticizing

Rather than talking about subsidy to drivers and other oil users, the DOE should have focussed on

    1.  Setting up renewable source  of energy.

    2.  Strategic stockpiles for fossil fuel

    3.  More oil exploration

We should not be in this situation where oil becomes expensive because we depend on foreign sellers had we hang on to Sabah which is the source of oil might of Malaysia.  This post is happy that a foreign court is forcing Malaysia to pay rent to Sultan of Sulu and/or share oil revenues.

Maybe we do not have money to set  storage facility/tank farm,  or buy oil which was very cheap two years ago.   China is always on the look out for sources of commodities like oil.  It keeps on buying oil companies or maybe crude.  It lends to LDC countries rich in oil production.  We can do that now?  Anyway we are on debt splurge?

Or the BSP can simply lend to the treasury and the country buys foreign exchange to buy oil at cheap

prices then?

                                                                            Japan Stockpiles

Economic indicators favor high oil prices?

It is more fun criticizing

Rizal Philippines
February 5, 2016

From the Guardian - why low oil prices hurt the stock market?

This post has seen several posts and watched several news at BBC, CNN, Channel News Asia that many stock markets closed lower in 2015, many of the shares being dragged by low oil prices.  High prices favor wealth creation and not consumer welfare.  Truly, a robust economy does not favor those who have less in life.  They are anti thesis.  Thus a country with great GDP, would also have poor people because wealth would be concentrated only in the hands of few stockholders, and stock market players?

Why are oil prices dropping like rock? Why will prices continue to plummet

It is more fun criticizing

Rizal Philippines
December 5, 2015

Oil prices in free fall after OPEC agree on production cut - Fortune

Why are activists not rising in arms vs govt. now that oil prices are dropping like rock.  Diesel price, the fuel for many is down to as low as P23.50 per liter. down from a high of P50+ about a year ago. Good for our economy - drivers, transpo, travel, and factories, power producers.

For unknown reason there are no protests from the activiists (the antis - Hegelian animals) vs the govt.  Well, the govt has nothing to do with price under the free market conditions.  If the govt had subsidy for the fuel and the prices dropped this low, the govt could have lost billions!  As if people do not understand the free market.. Now we are benefiting from the free world market bonanza.

Why are the prices falling down?  Because of low demand - Europe economy is not ticking as it should, the countries have developed their renewables, and US production from shale and fracking has gone up.

And lately, OPEC in its latest meeting failed to agree on cutting down their production  The head of OPEC  is not cutting down its daily production of 30 million barrels  a day  (Production must be cut down to raise prices)  But perhaps, KSA can not sustain its govt budget with $40.00 per barrel.  Note that Argentina, and Russia which are also starved for cash, are not part of OPEC. Thus with OPEC in disarray, prices are most likely to fall below $40.00 even further.  The move is to force US shale producers to lose money and cut back on their production