Dear Khun Yuthana,

The policy is in many ways similar to that of former governments, including the Surayud government. There are many operational details that shows some new trends, notably the shift of policy focus on biofuel as the way to manage agricultural produce. That, if and when it can be implemented, will have a profound effect on how things are managed, esp. raw material price, buffer stock, biofuel pricing etc. Another notable trend is that the Government is now realising how big the energy industry is, and now has the directives for the national oil companies, power and trading companies to invest abroad. This energy diplomacy will go well with the trade diplomacy that Thailand is very active.

The role of the government in this regard is therefore crucial and that the bioenergy plan, as published in the 15 yrs plan, must be done earnestly. some form of oversight must be given to how things are implemented as the issues involved so many agencies and stakeholders. Perhaps an organization like the former National Ethanol Committee should be revised to speed things up. The unresolved issue of export infrastructure of ethanol should be resolved to help th eproducers, the legal barriers etc. should also be revised, the time it take to get an export permit is longer than the shipping time from Brazil to Japan! how can Thai ethanol compete with Brazil?

As for the oil price upward trend now, I think the projection that a desirable price for producers should be around 7-80USD/BBL is now becoming true. It is too early to say that the economy in the West are recoving and that it has actually shown some effects on the oil price. If and when the economy picks up again, the presure will again be there to push the oil price up.

Another thing to note is the way China is now preparing for the oil supply in the future, just look st its investment in Brazil, Africa and SE Asia. China NOC has recently bought a stake in a Singaporean oil compay, this is something that must be taken into account. When China engine runs in the fast mode again, the impact on oil price will certainly be seen.

As for the role as ASEAN Chairman now, Thailand should accelerate agreements with ASEAN members in the adoption of biofuels where Thailand can be a good leading example. Joint infrastructure investment in the bioenergy, cross-border trades of commodities, oil&gas&coal should also be surveyed and concluded so that real action can take place.

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Address : 2 Soi.4, Ramkhamheng 60, Hua-Mak,

Bangkapi, Bangkok 10240, Thailand

Tel : (662 ) 377-5547 , (662 ) 377-5548