Saudis can only humor Ate Glue on oil

It is one thing to spin stories meant for a domestic audience. It is embarrassing how Malacañang is completely detached from reality in their pronouncements about the purpose of Ate Glue’s trip to Saudi Arabia with regards to oil.

I can buy the reasons cited with regards to the OFWs and trying to get support on the Mindanao peace effort. In fact, the pardon granted by King Abdullah that freed 50 of our kababayans from Saudi jails, is a worthwhile achievement of Ate Glue’s visit. But on oil, Malacañang is either dreaming or most likely, Toting Bunye is talking about something he knows little of, again.

For instance, I don’t understand what they mean when it was reported that "Arroyo would seek to negotiate affordable oil deals with Saudi Arabia, the world’s top crude exporter." What does "affordable" mean? Why would the Saudis treat us special? If they gave us that, assuming they can, there would be a run of other nations seeking similar treatment.

On matters of oil prices, it will always be market-based. There is nothing much the Saudis can do about prices, even if they are the largest OPEC member. The most the Saudis can do to make it look like Ate Glue accomplished something with her trip, is to assure her of supply. But that goes without saying. The Saudis are our partners in Petron and it is to their interest that Petron enjoys uninterrupted supply. This is why the proposal of some politicians and leftist groups to renationalize Petron does not make sense.

In this context, I also do not understand two other statements from Malacañang in relation to Ate Glue’s oil mission. First, "Arroyo said she wanted to discuss with Saudi officials what we can do together with other energy-producing nations to keep the supply of oil high and the price of oil down as much as possible." Keep the supply of oil high? Price of oil down?

What could the Saudis possibly tell her that they haven’t told George Bush, Tony Blair, Hu Jintao and other more important world leaders? Besides, the Saudis are maximizing production already because they recognize that moderating this rapid price escalation trend is to its interest. The Saudis have proven themselves pretty responsible in this regard. Because they have already invested their petrodollars in other industries in various countries, they wouldn’t risk a world recession.

This brings me to the second Malacañang statement I also do not understand. According to them, Ate Glue is looking "to our Saudi friends to help us pioneer new and innovative ways to become energy-independent." Energy what? Independent? The Saudis to help us become energy independent? What kind of psychotropic drug do they put in Malacañang’s drinking water to make them hallucinate this way?

One other reason the Saudis are championing moderation in the matter of oil prices is because they don’t want the world to be energy independent. They know high oil prices promote the development of alternative energy sources. They want us to be as dependent as we now are to oil. It is not to their interest for us to start using coconut oil or recycle cooking oil in place of diesel fuel.

The Saudis and the OPEC bunch got the scare of their lives when the world started exploring and developing alternative energy after the energy crisis years of the 80s. The development of oil alternatives and the improvement in our energy utilization efficiencies contributed to a sharp decline in oil prices, which in turn, made alternative energy, things like ethanol, wind, solar, etc., uneconomic.    Oh well… I guess Ate Glue can’t go to Saudi Arabia and bring home nothing on the matter of oil supply. It is the hottest issue today. But it is also not right to make people think miracles can be delivered. We have to stick to realities or risk making her already tattered credibility even more so. That’s so elementary. I don’t understand why Bunye and company would even risk making bola.

The reality now is, the Saudis can only humor Ate Glue on oil. There would probably be a lot of nice words in the final communiqué that really means nothing much.

Two for biodiesel

I got this e-mail from Edwin S.Tansingco of Geenertek Inc.

Greetings Mr. Chanco. I’ve read your article on "Demand and Supply" regarding biodiesel from used cooking oil. I’ve been running my Isuzu Trooper on 100-percent biodiesel for several months now. It’s running great and my exhaust smells good too (smells like may nag-iihaw).

Well, biodiesel burns up to 75-percent cleaner than petro-diesel, essentially free of sulfur and other toxic substances. Plus the fact that it can be made from renewable sources. It’s better for your engine too, because of its higher cetane rating (just like higher octane in gasoline), superior lubricating properties and better mileage just to name a few of the many plus benefits of using biodiesel.

Presently, we’re re-processing Kowloon’s used cooking oil into biodiesel. They’re using it to fuel their trucks and as cooking fuel. Recycling has never been this good, finding a second use for your waste product (thanks to Mr.Mike Ng’s initiative and vision).

Someday, as you have said in your article, "you should be able to go to a restaurant and fill up (your gas tank) at the same time you fill up your stomach". We’re in the works on how we can add what aroma the exhaust would smell so the customer could choose from a menu... (just kidding).

Thanks for your article and may it open the doors to a more practical and immediate solution to this "oily problem" we have. We’re open to the idea of joint venture arrangements with companies who would like to reprocess their waste cooking oil.

And here’s another e-mail, this time from Rodel M. Castillo, service manager GCC-Olayan, Cummins Diesel Division, Al-Khobar, KSA

I really enjoy reading your article in the Philippine Star May 5, 2006 issue. Used cooking oil can be re-processed and be fed to an engine provided that harmful elements like water be removed, water is the number one culprit in the diesel engine Fuel System failure and the cost to repair this is unimaginable.

Back home in the Philippines, somewhere in Batangas, a cousin of mine owns a Kawasaki tricycle for his livelihood. Few years back he was criticized by his fellow drivers for using used cooking oil as an alternative 2T oil for his 2 stroke Kawasaki engine.

What’s so funny, whenever his tricycle passed by everybody on the road can guess what food they partook that day from the exhaust of his trike. They said, oh!!! Its piniritong galungong today or, ah!!! Pork chop yun eh. Etc., etc. To date his tricycle is in perfect shape needing only good air freshner. ( I am sorry pinsan. )

I am hoping for other interesting articles from you. Thank you and regards.

Politics at BSP?

It is distressing to learn that the ugly head of politics almost tarnished the independence and credibility of the Bangko Sentral. According to Newsbreak, a weekly magazine edited by respected investigative journalist Marites Vitug, the "smoking gun" report on Garci’s fake passport nearly never came to light, thanks to the efforts of a Monetary Board member.

The MB member happens to be the wife of a congressman from Bicol who is a staunch defender of President Arroyo. To the credit of BSP Governor Amando Tetangco Jr., however, he approved the release of the delayed report despite efforts to have it buried under tons of paper – his cabalen roots notwithstanding.

But the politicians would never stop trying to interfere in the operations of our various financial regulatory bodies. I heard that the House Majority Leader is intervening strongly on behalf of an owner of a chain of rural banks whose operations have been questioned in the past. To the credit of Ate Glue, she has not lifted a finger to interfere because she knows doing so is dangerous, given the fragility of our financial sector.

But how long can Ate Glue resist the importuning of the Majority Floor Leader? Our politicians should realize that once the integrity of our financial regulatory agencies is compromised, our international standing will be at risk. Also, the morale of the professional staff in these agencies, public servants who want to do the right things, is adversely affected every time these politicians try to influence decisions to favor their corrupt friends.

Basket case

Here’s a comforting thought from Dr. Ernie E.

Don’t let your worries get the best of you; remember, Moses started out as a basket case.

Boo Chanco’s e-mail address is [email protected]