Author Topic: Fuel Costs Going High  (Read 807 times)

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Fuel Costs Going High
« on: November 11, 2007, 08:37:37 PM »
By Joe Espiritu
Jagna-based Writer
Columnist
Bohol Sunday Post

Fuel costs are rising. Gasoline, diesel and petroleum prices had gone through the roof and there are no signs of slowing down. The Organization of Petroleum Exporting Countries or OPEC has their collective hands on the tap and they can slow down the oil flow or turn it off at will. They cannot be blamed, the move is for their survival. This time they are regulating the flow of supply to control the petroleum world market. Since fossil fuel is exhaustible, they are regulating production to make the supply last longer.

Power generating engines may derive their energy from sources such as geothermal, hydroelectric, nuclear and coal and oil. Stationary engines may use first three categories Transport engines, that is those, which must move from one place to another, require power generators, which are portable or which could be carried along. Ever since the discovery of the internal combustion engine, to power transports, the world has been very dependent on fossil fuel. Since extraction, transportation and refinement of fossil fuels those fuels are easy their cost is relatively low. But that was a thing of the past.

Fossil fuel is not inexhaustible. Statisticians predict that oil production will peak out in the year 2010. From that year, oil production will slow down somewhat.

More and more countries are industrializing. As the demand continue to rise, oil producers would be forced to mine hard to reach areas. Extensive search for oil deposits are conducted but no major finds had been recorded. Bohol Sea, the area between Bohol and Cebu is now undergoing exploration and no amount of protest will stop the extraction of deposits if found to be in commercial quantities.

The Philippines could resort to nuclear energy for her needs but the Chernobyl scare and political interference would not permit us to use the atom. Industrialized countries like Japan, Canada and the United States are presently using nuclear energy. Resources poor Japan may be forced to use them but Canada and the US; both rich in oil deposits and hydroelectric power still use atomic reactors to augment their resources.

This time the Philippine government is looking at the generation of biofuel. Starchy plants like cassava and corn, oily plants such as coconut, oil palm and, jetropha and sugar cane could be used as biofuel feedstock. As much as 34 billion pesos are initially invested for planting, processing, and infrastructure. Some 756,300 hectares will be needed for this industry. Most of the cassava and corn would be used for human consumption but the rest would be primarily for industrial purposes if their planting were intensified

The grower is offered several opportunities. Namely; a straight purchase of their products, contract growing, lease arrangement or joint ventures. All those arrangements will provide the farmer with guaranteed income package, straight purchase of harvested crops at favorable prices or profit sharing. Planters can avail of new planting technologies that would create more jobs and increase production.

The Philippine Coconut Authority, by using the coco levy could increase coconut production by opening new areas for planting and introduction of fast growing, early maturing coconuts. The Department of Agriculture would provide the technology for profitable jetropha or tubatuba farming. These two would create job opportunities, which would encourage local labor to stay and devote their energies to farming.

The biofuel industry would make more demands on Bohol environment. The soil must be made to support production. Thought mostly karst, this may be conditioned to support jetropha, coconut and oil palm farming. Since biofuel production could provide a renewable energy source, this may enable us to break away from our total dependence on fossil fuel. Should oil deposits in Bohol Sea be located and extracted and out biofuel farms producing, it is not unreasonable to hope that Bohol would be freed from the grip of poverty.

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