BP Chief Draws Outrage for Attending Yacht Race - NYTimes.com

Ouuucchhh....now, everything that he does will be under the microscope.
That is the result of angering people at the Capitol Hill and some tweet suggested that he should be spending time with the mop at the affected sites :)

The glory and infamy of being a CEO.

Oil prices up again?

Price of RON 95 at RM1.80 from Tuesday
By NURBAITI HAMDAN and TEH ENG HOCK


KUALA LUMPUR: The newly introduced RON 95 fuel is now priced at RM1.80 - five sen higher than the previous RM1.75.

Meanwhile, RON 97 is upgraded as a premium product and has gone up to RM2.05 from RM1.80.

Domestic Trade, Cooperative and Consumerism Minister Datuk Seri Ismail Sabri Yaakob said the new prices were decided based on the current method of Automatic Pricing Mechanism (APM).
(what current method of pricing? What type of method you people used when you people decided to hike and lowering it couple of years back?)

“Although the price is now 5 sen higher, the Government is still subsidising 33.81 sen per litre (of RON 95) which is equivalent to RM304mil monthly,” he told reporters after the launch of Primax 95 by Petronas here on Monday.
(i guess this is the best time to let jack came out of his box ain't it Ismail Sabri? And it must be the BEST ever present to the people of Malaysia for the Merdeka Day celebration!)

Currently, the Government is subsidising RON 97 by 42.72 sen per litre.
(So?...it is still expensive than few neighbouring countries oil prices if calculated one to one, furthermore they don't even have they own oil)

The cost for RON 95 went up 102% from USD$ 40.75 per barrel to USD$ 82.30 in December last year and August respectively.

“If there is any changes in the global prices, we would revise it accordingly. It is up to the Economic Council to decide.
(His trying to tell that it is not his decision for the increase...)

“RON 95 also adheres to the EURO2M specification where it can lessen pollution,” said Ismail Sabri, adding that consumers would get quality petroleum at a subsidised price.

With the new pricing, Ismail Sabri added that RON 92 was phased out from the market as the usage was only 5% from total petrol sale in the country.

In April last year, then Domestic Trade and Consumer Affairs Minister Datuk Shahrir Samad said the Government was considering the use of petrol with higher research octane number (RON) to reduce fuel subsidies without hurting the lower-and-medium income groups.

A higher octane number means higher resistance to engine “knocking”. “Knocking” could possibly damage the engine over time.
(People of Malaysia -- be rest assured, we, the government decided to assist you all during this economic slowdown and hard time by increasing the oil prices so your car engines wont give way too soon and you wont have to fork out so much of money repairing your cars)....does it work that way?.....

Petrol Dealers Association of Malaysia president Datuk Hashim Othman said petrol stations could easily recalibrate their pumps to adjust to the new price.
(huh....?...who cares? i guess the Star journalists / editor of this section had nothing better to make this story more compact)

“With technology, all you need to do is push some buttons. It is almost automatic in most stations now, except for a few in the rural areas which are still using the manual system,” he told The Star.
(irrelevant to the actual feeling of the mass majority of Malaysia who will definitely be taken aback by this crude all of a sudden notice)

He added that petrol dealers would make a slight gain with the price increase as they had bought their current stock at the old price.
(irrelevant to the rakyat......)

“It is only a little as the price increase is small,” he said.
(oh yeah mister?....why don't you try being the ordinary income earner in Kuala Lumpur, gotta pay toll at every highway, even for a short 10 km distance, paying for monthly parking, paying for loans and mortgages, feed your family, taking them once a while for nice food and leisure....
go take your calculator and try to count lah!! dumb dumb!)

WILL MALAYSIA FOLLOW SUIT

(Yahoo News) - In the largest cut to date, pump prices of petrol and diesel have been adjusted down by 10 cents.
As of 10am Monday, stations run by SPC, Shell and Caltex had their pump prices down to S$2.110 for premium unleaded and S$2.036 and S$2.003 for 95 unleaded and 92 unleaded petrol respectively.

With on—site discounts, this brings the mid—range 95 unleaded petrol below the two dollar mark for the first time in months.

As for diesel, it is now priced at S$1.863 per litre.

Crude oil futures are holding steady and hovering at a seven—week low of about US$123 a barrel, despite talk over the weekend that the price of oil could drop to between US$70 and US$80 a barrel in global trade.
OPEC chief Chakib Khelil said on Saturday that the price of oil could drop if the dollar strengthens and concerns over Iran are reduced.
At Friday’s close of trade, oil was around US$125 a barrel in London and New York.
Analysts say oil prices are down as demand is sagging amid slowing economies and fresh signs of rising supply.

After spiralling up from the last weeks of June, crude oil prices have dropped by nearly US$25 on both sides of the Atlantic in less than two weeks.

AND AGAIN.....

I read this comment and found it very interesting and enlightening both in the statement and its similarity to the earlier statement in local news today.
I hope citrus_medica don't mind me carrying his comment in this blog.

And i still wonder......probably yes, probably no, probably yes...

Assalamualaikum & Good Day to All,

PETRONAS' STAFF SALARY & BONUS

1) The salaries paid to PETRONAS' employees are not as high as people think. At best, they are just industry average. And these are not attractive enough for some who left PETRONAS to find work at other companies (mainly from the Middle East) which are willing to pay more. Why do they pay more? The oil and gas industry worldwide has been facing acute shortage of qualified or experienced personnel, so most companies are willing to pay lots of money to entice and pinch staff from their competitors.

Bonus? There has NEVER been a bonus amounting to 6 months or 12 months throughout the 33 years. On average, it is 2 months. But don't ever think we don't deserve it. We more than deserve it. A lot of us work really hard, some in the most extreme of conditions. Those who have been to and worked in northern Sudan, for example, would testify that it's like working in a huge blower oven. Southern Sudan, on the other hand, is almost all swamps and mud. Imagine having to go through that kind of heat, or waddling in muddy swamps, day in and day out.

QUALITY OF CRUDE & REFINED PRODUCTS

2) Malaysia produces about 600,000 barrels of crude oil per day (and about 100,000 barrels condensate). Of this crude volume, 339,000 barrels are refined locally for local consumption. The rest is exported (and yes, because it has lower sulphur content it fetches higher prices).

Malaysia also imports about 230,000 barrels of crude oil per day, mainly from the Middle East, to be refined here. This crude oil contains higher sulphur and is less expensive (so the country gains more by exporting our crudes). In Malaysia, this crude is processed by PETRONAS at its second refinery in Melaka, and also by Shell at its Port Dickson refinery.

Different refineries are built and configurated to refine different types of crude. And each crude type yields different percentage of products (diesel, gasoline, kerosene, cooking gas etc) per barrel.

But most importantly, products that come out at the end of the refining process have the same good quality regardless of the crude types. That's why PETRONAS, Shell and Exxon Mobil share the same pipeline to transport the finished products from their refineries to a distribution centre in the Klang Valley. The three companies collect the products at this centre accordingly to be distributed to their respective distribution networks. What makes PETRONAS' petrol different from Shell's, for example, is the additive that each company adds.

PETRONAS' ROLE, FUNCTION & CONTRIBUTION

3) A lot of people also do not understand the role and function of PETRONAS, which is essentially a company, a business entity, which operates on a commercial manner, to mainly generate income and value for its shareholder. In this case, PETRONAS' shareholder is the Government.

In 1974, when PETRONAS was set up, the Government gave PETRONAS RM10 million (peanuts, right?) as seed capital. From 1974 to 2007, PETRONAS made RM570 billion in accumulated profits, and returned to the Government a total of RM335.7 billion. That is about 65% of the profits. That means for every RM1 that PETRONAS makes, 65 sen goes back to the Government.

Last year, PETRONAS made a pre-tax profit of RM86.8 billion. The amount given back to the Government (in royalty, dividends, corporate income tax, petroleum products income tax and export duty) was RM52.3 billion. The rest of the profit was used to pay off minority interests and taxes in foreign countries (about RM7.8 billion - PETRONAS now operates in more than 30 countries), and the remaining RM26.7 billion was reinvested. The amount reinvested seems a lot, but the oil and gas industry is technology- and capital-intensive. Costs have gone up exponentially in the last couple of years. Previously, to drill a well, it cost about US$3 million; now it costs US$7 million. The use of rigs was US$200,000 a day a couple of years ago; now it costs US$600,000 a day.

A lot of people also do not realise that the amount returned by PETRONAS to the Government makes up 35% of the Government's total annual income, to be used by the Government for expenditures, development, operations, and yes, for the various subsidies. That means for every RM1 the Government makes, 35 sen is contributed by PETRONAS.

So, instead of asking what happens to PETRIONAS' money or profits, people should be questioning how the money paid by PETRONAS to the Government is allocated.

CRUDE EXPORTS & FUEL PRICES

4) A lot of people also ask, why Malaysia exports its crude oil. Shouldn't we just stop exporting and sell at cheaper prices to local refiners? If Malaysia is an oil exporting country, why can't we sell petrol or diesel at cheaper prices like other oil producing countries in the Middle East?

I guess I don't have to answer the first couple of questions. It's simple economics, and crude oil is a global commodity.

Why can't we sell petrol and diesel at lower prices like in the Middle East? Well, comparing Saudi Arabia and other big producers to Malaysia is like comparing kurma to durian, because these Middle Eastern countries have much, much, much bigger oil and gas reserves.

Malaysia has only 5.4 billion barrels of oil reserves, and about 89 trillion cubic feet of gas. Compare that to Saudi Arabia's 260 billion barrels of oil and 240 trillion cubic feet of gas.

Malaysia only produces 600,000 barrels per day of oil. Saudi Arabia produces 9 million barrels per day. At this rate, Saudi Arabia's crude oil sales revenue could amount to US$1.2 billion per day! At this rate, it can practically afford almost everything -- free education, healthcare, etc, and subsidies -- for its people.

But if we look at these countries closely, they have in the past few years started to come up with policies and strategies designed to prolong their reserves and diversify their income bases. In this sense, Malaysia (and PETRONAS) has had a good head start, as we have been doing this a long time.

Fuel prices in Malaysia is controlled by the Government based on a formula under the Automatic Pricing Mechanism introduced more than a couple of decades ago. It is under this mechanism that the complex calculation of prices is made, based on the actual cost of petrol or diesel, the operating costs, margin for dealers, margin for retail oil companies (including PETRONAS Dagangan Bhd) and the balancing number of duty or subsidy. No retail oil companies or dealers actually make money from the hike of the fuel prices. Oil companies pay for the products at market prices, but have to sell low, so the Government reimburses the difference -- thus subsidy.

Subsidy as a concept is OK as long as it benefits the really deserving segment of the population. But there has to be a limit to how much and how long the Government should bear and sustain subsidy. An environment where prices are kept artificially low indefinitely will not do anyone any good. That's why countries like Indonesia are more pro-active in removing subsidies. Even Vietnam (which is a socialist country, by the way) is selling fuel at market prices.

PETRONAS & TRANSPARENCY

5) I feel I also need to say something on the allegation that PETRONAS is not transparent in terms of its accounts, business transactions etc.

PETRONAS is first and foremost a company, operating under the rules and regulations of the authorities including the Registrar of Companies, and the Securities Commission and Bursa Malaysia for its listed four subsidiaries (PETRONAS Dagangan Bhd, PETRONAS Gas Bhd, MISC Bhd and KLCC Property Holdings Bhd.

PETRONAS the holding company produces annual reports which are made to whomever wants them, and are distributed to many parties and places; including to the library at the Parliament House for perusal and reading pleasure of all Yang Berhormat MPs (if they care to read). PETRONAS also makes the annual report available on its website, for those who bother to look. The accounts are duly audited.

The website also contains a lot of useful information, if people really care to find out. Although PETRONAS is not listed on Bursa Malaysia, for all intents and purposes, it could be considered a listed entity as its bonds and financial papers are traded overseas. This requires scrutiny from investors, and from rating agencies such as Standard & Poor and Moody's.

BOYCOTT PETRONAS?

6) The last time I checked, this is still a democratic country, where people are free to spend their money wherever they like.

For those who like to see more of the money that they spend go back to the local economy and benefiting their fellow Malaysians, perhaps they should consider sticking to local products or companies.

For those who like to see that the money they spend go back to foreign shareholders of the foreign companies overseas, they should continue buying foreign products.

FINAL WORD (FOR TODAY)

I'm sorry this is rather long, but I just have to convey it. I hope this would help some of you out there understand something. The oil and gas industry, apart from being very capital intensive, is also very complex and volatile. I'm learning new things almost every single day.

June 17, 2008 8:40 PM
written by citrus_medica.

Govt on Several of their Mechanisms.

I guess any government will always come out with reassuring(so they thought) statement to their home people whenever something bad struck their country.
These statements meant to let the people know that the government is doing their best and most of the time making sure that the news would always be beautiful and nice to the ears.

I somehow, call this sweeping it under the carpet.
The same action that the government of Abdullah Badawi is doing right now.
They would never rectify the matter but keep on telling the people that their actions are the best and always right.

They thought the people of this country are still the oblivious lot, who doesn't know the actual predicament that the government is facing.
They never thought that word of mouth travels faster than his decision on the recent petrol hike.

People have more opportunity to know about things locally and globally thru the world wide web. People doesn't just read the mainstream media to receive information. As most of the people know, the mainstream media is and will always be under the scrutiny of the government.
Whatever news that doesn't favour them, they will instruct the editor to not publish the story.

Nevertheless, it still amazes me how in the world all these ass-kissing menteris can come out with contradicting and funny statements.

Sad to say that the statement sometime came out of their ass, when they go to shit in the morning, because one with brain would never, ever come out with such statements.

The most famous statement is "Change lifestyle", "Eat less sugar", and so on.

It is my guess too, that they actually forgot to bring along their brain, which they left near the toilet bowl, on the soap dish, before going out of their home to the office.

The below excerpt is also funny, because during those time , we have someone who is really a leader instead of a follower.

"Nor Mohamed said the country had braved through economic slowdowns in 1969, 1974 and 1986, and financial crisis in 1997 with the help of all quarters."

Don't they realise that most of all the "quarters" now had turned their backside on the government already?


Govt Working On Several Mechanisms To Offset Fuel Price Hike :: Bernama.com

Oil and Oil again....

Singapore : RM 5.00
Thailand : RM 4.00
(the two countries that Malaysia government have been comparing when it comes to price hike of consumer goods and always; oil)


UAE– RM1.19/litre
Eygpt– RM1.03/litre
Bahrain– RM0.87/litre
Qatar– RM0.68/litre
Kuwait– RM0.67/litre
Saudi Arabia– RM0.38/litre
Iran– RM0.35/litre
Nigeria– RM0.32/litre
Turkmenistan– RM0.25/litre
Venezuela– RM0.16/litre
MALAYSIA– RM2.70/litre"



Some might have an opinion that oil subsidy should be taken away from Malaysian, in order for them to be independent and learning in advance because the black gold won't be available forever.

I somewhat agree to this opinion, but, it has to be done accordingly.

Not by the way the current government is doing right now.


It can be done when;

1)the government upgraded the transport system; quality,on time and frequent bus services,
KTM Komuter (which will definitely breakdown during rainy season), LRT in Klang Valley
connecting to nearest town where people commute to work such as Seremban and Air Keroh,Melaka.
Connecting LRT among main residential area such as Subang Jaya, USJ, Shah Alam and Klang
with frequent services and extended hours.


2)Stop collecting toll for those concessionaire whom has reached the matured term of agreement
or reduce the rates especially for the Klang Valley interlinks.


3) Income tax percentage should be revised to assist the people and not burdened. Taxes for cigarettes, liquor and gambling should be increased.


4) Stop trying to make a mark by creating unnecessary major development. Malaysia has
got enough already and it will be never ending if he is trying to compete with the world.



5) Channeling funds for R&D for alternative fuels and energy. Energy Saving companies (ESCO)
should be given the opportunity to perform without having to go thru government officials mental-block and by educating the mass at large.

Im sure there would be more ways to help reduce the lower and middle income rakyat.
Its either the government want to do or otherwise.

Dr Mahathir Mohamad: Oil Price

Salam Yg Bhg Tun,

Yes we are heading to a deeper inflation zone and all these are beyond the control of the current government. This is mere domino effect and it is felt globally, and we can't run away from it.

What saddened and incite our hatred is the sudden increase of petrol price and its quantum. We the rakyat felt cheated by this FLIP-FLOP prime minister.

Why in the first place he open up his mouth and told us there won't be an increase, or that soon (which we all know it is just another rotten tactics to buy oblivious voters votes).

To add salt to wound, he agreed to TNB's increase of tariff, and this is done second time during his tenure of 6 years.

Tun,
You might not feel the pinch as much as the majority meagre income earner. The rakyat whom take home around rm2000 or less.
Families with only one sole breadwinner.
Families with more than three kids to raised.
Families who lives and work in the Klang Valley especially.

The government's move to burden the rakyat with this incredible increase is absolutely ridiculous and done without taking into consideration the socioeconomic point of view.

The rakyat will be continually oppressed.

Laman Web Rasmi Pejabat Perdana Menteri Malaysia|Official Website of Prime Minister's Office of Malaysia

This oil price issue have been shadowing us and it became a nightmare with the current government's bullshits and reasoning. Every freaking price went up but our GDP still sucks.

But again, why should the PM, policy makers, MPs and politicians and their cronies should feel the pinch on the price hike. They are taking home more than 30K a month and that does not include their kickback monies, allowances here and there, companies generating money via their proxies.

I once again, would like to express my desire to be either BN,PKR,DAP whatnot politician, so i can sit down and relax and get money coming in to my local and international bank accounts.
Don't bullshit me if you bugger politician esp from the new ruling government (the 5 states) saying you guys will be for the rakyat.
Go and kiss my mother's ass if you really are fight for us rakyat.
"
So the ordinary rakyat can continued to be "di peras ugut "and "di kerah" to pay toll here and there to get to office, pay high price for our rice (sorry bro, i can't eat less rice and pls DON'T COME OUT WITH STATEMENT ASKING ME TO EAT PASTA ), pay high electricity, and almost every goddamn thing.

I would like, should i have the opportunity to bump into Abdullah, ask him, is this one of his cynical attack to the people because his lost of five states to the opposition, and because he knows his tenure won't be that long anymore and because he is migrating to his second homeland soon?

I bet you it should be one of the above...



Laman Web Rasmi Pejabat Perdana Menteri MalaysiaOfficial Website of Prime Minister's Office of Malaysia