"The new reality of more expensive crude oil stresses the need for more legislative measures that will promote meaningful energy efficiency and conservation efforts," Pilipinas Shell Petroleum Corp. vice president for corporate affairs Reynaldo Gamboa said in a forum.
Gamboa said "instead of tinkering with the Oil Deregulation Law and embarking on expensive experiments like the oil exchange, the legislative efforts should be channeled to encouraging efficient use of energy and promoting exploration and development of more indigenous sources of energy like the Malampaya natural gas."
The Shell official made the comments as a reaction to the re-filing by Rep. Enrique T. Garcia of the Oil Exchange Bill.
He said the "acknowledged model of the proposed oil exchange which is the California power exchange is now being criticized by California residents who complained about unreasonably high power rates in the state."
"Rising crude prices and the deterioration of the peso against the dollar continue to be the reason behind the series of petroleum product pump price adjustments during the past two years," he said.
According to Gamboa, the deregulation of the oil industry has its contribution to the country’s economy. "Since the early part of 1999, crude prices in the world market increased from $10 per barrel reaching as high as $32 per barrel; the peso exchange rate, on the other hand, weakened from P40 to P53 for every US dollar," he said.
He said "clearly, the existing Oil Deregulation Law is not the culprit." He also noted that since the laws implementation, approximately 10,000 new jobs were created and new investments amounting to P15 billion were realized.
The two former energy secretaries Mario Tiaoqui and Jose Isidro Camacho have said they are against the establishment of an oil exchange as this will run counter to the country’s aim of deregulating the oil industry.
Newly-appointed Energy Secretary Vincent Perez has yet to issue his stand on this oil exchange issue. Perez said there is no urgent need to pass amendments of the Oil Deregulation Law. "Let us allow the work out," the energy chief said.