More on fracking

From our suki reader, Deo G. Contreras, is a rejoinder on the topic of fracking that was featured in our column last week. He has graciously added more information on this earth-shaking technological innovation on oil and gas extraction. Here goes.

“It is comforting to read your follow-up article (Thursday, Dec. 11) on North American shale oil and fracking. In spite of what some economists say that an oil glut will be adverse to people, you are correct in saying it will be ultimately good for the world.

“Since the ’70s, we have been under the dictates and control of oil cartels. They are the only ones having the good life.

“The world economy was not as hard up before the 1970s. Oil price was even below $40 a barrel. Everything became costly when oil cartels limited and controlled production and caused oil prices to skyrocket practically overnight. We even had to line up in gas stations for rationing in the early ’70s.

“The mighty US also suffered, but it protected and conserved whatever oil reserve deposit it has in the Texas areas. But America also lined up in buying oil from the mighty oil cartels. It is a strategic mineral resource of a country. Let us remember that in any armed conflict, he who has the oil makes the rule!

“One thing we must learn from the Americans, they use their head and foresight properly. In recent years, we personally observed with wonder why, for example, in the state of California all those wind turbines and oil rigs were built from the northern and southern mountain ranges of the state. Same happened in Texas.

Hidden caverns

“The answer is now clear: the American discovery of cheap oil extraction by fracking. President Obama must have listened to his economic advisers in pursuing fracking of shale oil. They simply pumped water into hidden caverns containing oil that is difficult and expensive to extract by pumping.

“Oil floats up in fracking. The ever-critical environmentalists say that fracking will contaminate underground water aquifers, but without illustrating the specific adverse effects thereof and in terms of magnitude. The world has enough underground water source.

“It will not be surprising that those opposing fracking will be affected in their oil-related businesses. According to some scientific authorities, North America has a huge amount of shale oil deposit it can extract in the next few decades. China has the second biggest.

“With the depressed economy of the US when President Obama took over the White House almost five years ago, suddenly American life is improving. Obviously, with the extraction of so much shale oil, it has become cheaper to run American industries, produce goods and services that generate more employment as we now see.

Leveraging on cheap natural gas

“Time Magazine recently featured an American steel company becoming active and alive to produce more and stronger steel at cheaper cost and intends to expand their operations in other countries because of available cheap American natural gas!

“Here in our country and following the American strategy, the Filipinos are fortunate to have the Malampaya natural gas deposit that delivers billions of pesos in government revenues (according to news items on the controversial Disbursement Acceleration Program).

“The earnings must be funneled to assist, improve, and encourage production of our laggard industries to create better and cheaper goods, services, and employment.

“Our government leaders should not dispense such amounts in the form of social and political dole outs as we Filipinos almost always do. It is a shame!”

New opportunities

Indeed, there are so many new opportunities that this drop in world crude prices can do for us as a country. One that immediately comes to mind is to now have all of the necessary repairs necessary on the Metro Rail Transit in order to bring it up to acceptable service levels — without worrying about raising fares.

If any of our readers can think of ways of taking advantage of this new world order that has been brought on us by cheaper oil and gas to our benefit, please send them. It could help prepare our government to seize the opportunities that arise and translate them to better services for the country.

Post review of 2014 National Collegiate Championship

There were four early favorites to survive the Elite Eight and advance to the Premier Four stage, the highest level, and compete for the final four rankings.

Given their performance in the tournament of their respective leagues, the experts’ choices were: National U Bulldogs (UAAP champion), FEU Tamaraws, SBC Red Lions, five-peat NCAA champions, and DLSU Green Archers (last year’s national champion). SWU Cobras (CESAFI champion) was rated 50-50 to upset one of the early favorites.

The first five playing days of the Elite Eight stage was a historic event for collegiate basketball fans in Cebu City. Five top teams from Metro Manila visited Cebu to do battle with the best three Visayas teams, not in mere exhibition or tune-up games, but in crucial matches that would impact on the chances of each team to reach the finals.

The Cebu fans were not disappointed with the highly competitive and tough games that unfolded.

University of San Carlos Warriors, CESAFI runner-up, was the first Cebu team to strike, upsetting FEU Tamaraws in the opening game. The upset win powered USC Warriors to successive convincing victories over SWU and UV that ensured a slot in the Premier Four stage.

On the other hand, with the loss, FEU had difficulty emerging from the Elite Eight stage to gain a spot in the final round.

The University of Visayas Green Lancers was the other team that defied experts’ predictions. The Green Lancers surprised NU in a closely fought game, and followed it up with a more comfortable win over the Arellano U Chiefs, NCAA runner-up and newcomer in the national championship.

These two impressive games enabled UV to unexpectedly crash into the Premier Four level, and frustrated NU from achieving a double title for the year.

The Champions League (PCCL) National Collegiate Championship is sponsored by media partners ABS-CBN and Philippine Star, Phoenix Petroleum, Molten Balls, Fil-Oil Flying V Sports, Fog City Creamery and Foccacia

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Should you wish to share any insights, write me at Link Edge, 25th Floor, 139 Corporate Center, Valero Street, Salcedo Village, 1227 Makati City. Or e-mail me at [email protected]. For a compilation of previous articles, visit www.BizlinksPhilippines.net.