Letter to the editor - Crude oil

The economy of the world today depends on the price of crude oil, a commodity to be considered a very precious commodity. Without it, life on earth particularly human beings would be very difficult to survive. Industrial countries are highly dependent on crude oil as well as the third world or the developing countries. The seacrafts, aircrafts and land transportation, particularly, buses, jeepneys, automobile, cars, etc are entirely dependent on the byproducts of crude oil. The most common are gasoline and diesel used in buses, taxis jeepneys etc.

The production of crude oil in the world today is controlled by the two groups namely: The Organization of the Petroleum Exporting Countries (OPEC) and the non-OPEC or countries also producing crude oil. Report showed OPEC has 897 billion barrels or 78 percent of the world crude oil reserve and the non-OPEC with only 247 billion barrels or 22 percent.

The Organization of the Petroleum Exporting Countries (OPEC) has 11 member countries, namely: Saudi Arabia, Kuwait, Iran, Iraq, Libya, United Arab

Emirates, Qatar, Indonesia, Algeria, Venezuela and Nigeria. The price of crude oil per barrel depends upon the agreement of these countries. In short, the price of crude oil in the world market is controlled by these countries but fortunately, the price of crude oil per barrel of OPEC is lower than the price per barrel sold by the non-OPEC countries. As of October 31, 2006, the price of crude oil per barrel of OPEC is $53.37 only.

The Arroyo government should advised the oil companies in the Philippines particularly those companies with oil refineries in the Philippines to buy crude oil from OPEC.

Speaking of oil price in the world market, it's the OPEC price that can be considered the price of oil in the world market for the reason that it has the biggest crude oil reserve.

Correct me if I'm wrong, but as far as I know, the price of crude oil from OPEC doesn't reach $70 a barrel from the previous years up to the present compared to non-OPEC which reached more than $70 a barrel as its highest level.

On the other hand, it's an acid test for the congressmen and senators to pass an enabling law mandating all oil companies in the Philippines with oil refineries in the country to buy the barrels of crude oil from OPEC only. The law must also give an authority to the Department of Energy to monitor the procurement of crude oil to make it sure it comes from the Organization of the Petroleum Exporting Countries. The law must order the oil companies to disclose the number of liters of the byproducts of crude oil such as kerosene, gasoline, diesel, liquefied petroleum gas, av gas, bunker oil, autolube and asphalt every time the barrels of crude oil are processed in the oil refineries and indicate its selling price per liter to the dealers of said by products. This is the only way the people will know whether or not the oil companies are losing.

Due to modern technology, the plastic used in making pails, chairs, tables, plates, basin, bags, containers, etc. is derived from crude oil. It only shows how profitable the crude oil is in the business side of human existence. It's a versatile commodity with multiple uses.

I firmly believed this is the only way to stop the nagging oil price problem that greatly affects the educational, social, health and economic condition in our country today. These are my humble suggestions only and my little way of helping our country on how to eliminate if not minimize its never-ending problem.

Salcedo C. Gines
Bliss, Labangon
Cebu City