July 10, 2008
Bangkok - Though Thailand is facing the third round of oil crisis, oil prices are going to plunge in the next one or two years, according to Thammasat University (TU)’s academic.
Praipol Kumsap, an academic at TU’s Faculty of Economics, said the petrol prices were likely to fall due to decreasing United States oil import and China’s oil consumption.
The improving oil situation will also be supported by increasing oil production in both the OPEC and Non-OPEC group.
However, there will also be some negative factors such as funds’ profit-taking and natural disasters.
Ammar Siamwalla, acting president of the Thailand Development Research Institute (TDRI), said worldwide agricultural products were used to produce alternative fuel and that resulted in rising agricultural product prices.
Corn, wheat and rice are one of the agricultural plants used for alternative fuel production.
It is expected the crude oil reserves will last for about 40 years while the natural gas for 60-70 years, and coal for 150 years respectively.
It is said there will be no energy shortage in the next 10-20 years.
