Ministers pay increase, while normal worker’s pay remains the same or increase at a very slow rate, and we are always given the impression that we shouldn’t ask for pay increment to keep our workforce competitive.

It pays to learn one new word. it’s call “peak oil,” IMHO, you could get much more in the term of a good return in your energy and effort, by just spending maybe a few hours reading up on this subject; if you just zoomed into the meat instead of sideskirting the pork belly.

Its good to go.

SD

Many people say that history plays a preponderant role. But that’s bs.

Reasons are four fold:

(1)Firstly, gas /cubic meter vs barrel / cost significantly much more to process, transport and store when compared to crude. That’s why when natural gas was first discovered, it was just flared off – it wasn’t that gas companies didn’t realize they were burning money, it’s just like trying to transport ice from the Antarctica to Singapore – the transportation cost just didnt add up to make money sense.

(2) Secondly, the cost per km / for transporting gas is higher and far more complex than lets say petroleum / no one for example refuels their car at home, but bear in mind when you turn on the stove, how did the gas get there? / In addition, the stuff that is commonly used to make the transportation and storage facilities are ALL produced by companies who have traditionally supplied to oil companies and their production cost is linked to the price of oil / so if oil goes up, the price of piping, metering, freight & forwarding, transport, storage silos etc goes up as well.

(3) And the third reason is price stability – but here it gets screwy and a bit complicated; because we are not talking about the real price as much as we are about the agreed selling and buying price – so it is really a case of lets say 4 people playing monopoly who suddenly decide to throw away the rule book and price lets say Mayfair for £1,000 instead of 500, now if you think abt it, that will also have a knock on effect on lets say the value of real estate in Whitechapel and it may also mean if you pass go instead of getting 200, you may end up with 500. But for your understanding, what’s important here is when the players agree on the price; then it becomes the price and in this way the illusion becomes reality.

(4) The fourth reason is very closely linked with (3) albeit with an economic twist / and it’s due to the nature of how gas trading and structured instruments relating to commodities are profiled / understand this. no one just decides to wake up on Monday and buy lets say 3 million cubic feet of gas. The market is NEVER structured to service the short or even intermediate term, you may find this in the petroleum market, but NEVER in commoditizing gas markets /many people have tried to do it / they have lost money /

So what you need to understand here is ALL gas deals are specifically structure to service ONLY the exceptionally long term i.e the median is usually 20 years or more. And there is a good reason for that; its too darn expensive to pipe gas. So if you’re a govt like China that needs to buy gas lets say from Burma’s Yetagun offshore gas field for the next yonks years; you need to dump in X, Y and Z billions to construct export pipelines, regeneration pumps, storage depots etc and that’s a huge infrastructural investment; but how do you built in long-term ‘fail proof’ contracts without price stability? How do you even begin to amortize your capital investment through a period of years? How do you mitigate and manage your risk?

Well the short answer is it cannot be done without price stability, it’s like buying a house where the bank can say, your interest can range anywhere from 1% to 5,000% within a period of 30 yrs – so “stability” can only be only be had, if the price of gas is pegged to something that everyone can understand and work with, and usually that’s oil.

That in the palm of your hands is why gas is pegged to oil. And they said, you couldnt learn anything from the internet.

I hope this helps

SD (Internet Liaison officer of the brotherhood)

This is from IHT
http://www.iht.com/articles/2008/10/29/business/rengas.php

Pegging to oil prices looks normal, but it was a mistake in “hedging” that caused us to pay more when prices dropped as drastically.

Hedging, for the lack of a better word, is like gambling. You take bets on how the prices would change.

In companies like SIA, the policy is NEVER to make money off hedging but merely to ensure a more predictable cost to the company. Not sure what the policy is with EMA.

Whatever the case, someone sure made money from this gamble.

To 177
Citizens have been threatened repeatedly, again and again, from “all your daughters will become maids” to “you be thankful”. Not surprising that the same trick is used over and over again – even when just about no one realise that GIC/Temasek investments have probably gone under just overnight. ‘National Treasures’ have ‘disappeared’, fellow citizens being pilfered, life savings being spirited away – all in a moment of confusion and uncertainty.
The terms ‘top/world class talents’ are only subjective – and bear no relevance to one’s actual social contribution or performance. Need I say more about those who self-proclaim?
Being taken advantage of again, and again, and yet again, many prefer to remain silent, ‘lan lan suck thumb’ as they were thought in their national service days, or just lament during coffeeshop talks. Will not deny that I’m one of such a person, but it feels like the time is coming as more people stand up for themselves, and for the people who believe in them. Via the response here and from actions of individuals, it is heartening to still be able to find people who are willing to argue, to challenge the norm, to serve as a barrier against moves against the people’s wishes, and a reminder for people as to what they are living for.

Hi TOC,

This is a case of bitter medicine losing its sugar-coating and this is how it happened.

Someone called Lazarus walked out of his tomb, apparently after hearing some voices in his head, looked up and noticed some cosmic interference in the night sky and thought some strange creatures from the land of dark and plenty had descended onto a tiny little place marked by a little red colour dot on his map.

Believing he had attained nirvanaic ecstasy, and having special powers invested unto himself, he began to preach to the group of descendants who called themselves the brotherhood.

Preaching with drunken authority, he spared no one and particularly targeted his preaching at one who called himself the daddy of singapore. Probably he took offence at the tiltle this alien creature gave himself and he wanted it for himself. He wanted to be a daddy to all and sundry.

To gain the title of being the Daddy of Singapore, he threw down his challenge to the poor creature with the unfortunate title, the Liaison officer. To make sure that he won’t be disadvantaged, he vowed to bring in twenty of the best of the best drunken scholars from his side to fight the Liaison officer who dare calls himself the daddy of singapore. He failed to forsee that his challenge would be taken up.

Instead of 20 drunken scholars all we have heard from the dead man is 27 hours of silence. Oops! did I say “dead man”. Probably that’s the reason for the silence?

So you see, TOC, you might not have to stage the fight after all. Not before we can get all 21 tails off the legs they are residing between.

First and foremost I wish to state that I’m speaking as an individual and not representing my employer, Temasek or even the Singapore gahmen. I don’t want to get sacked :)

Next, why oil and not gas prices? Some points here (I’m just postulating but I think that was the history behind the pricing formula):

a) Natural gas is a seller’s market. The seller has more say; buyer can only negotiate;
b) Seller therefore can decide the basis of gas pricing; buyer can only negotiate;
c) Seller chooses to peg to oil because oil is the “alternative fuel” for Singapore; other fuel such as coal makes no sense because Singapore doesn’t use coal;
d) Spot NG prices are irrelevant because we need long term supply contracts to ensure that we have the gas; spot market is not a reliable platform to obtain supply of physical gas.

As I said I am only postulating because I wasn’t involved in the negotiation itself. So the above is based on what I understood from other people in the industry.

As for the sale of Seraya (or the sale of all the gencos), well only the gahmen can answer why…

I tend to agree with you Gemami here that we have somehow given our govt the blank check to cash in on whatever/however they want to. The single-party system that they advocated will only bring hardship to the commoners.

I am also surprised no one raises a nook about the sale of our national treasures. One wonders whether our country is so dumb or not? If this happen in any civilised part of the country, they will rise up in demonstration and protest. Just asked the Thias about Shin Corp and the Aussies on Optus.

Here, the sales passed through smoothly as if we are all dead! C’mon Singapore!

Fancy we are selling Seraya to the Malaysians! This is unimaginable considering that just not so long ago a certain PM has threatened Singapore with the water supply issue.

Unless there is a viable check and balance system, this one-tracked mindset will go on without consideration on how the country will feel.

I may be unable to sleep again tonight…

Of course no lah, we are only responsible for making noise and do a lot complaints lah. That is what we can do lah.

We are so powerless that we can’t even eat in MRT, will get fined if we sleep in park bench, can’t even buy chewing gum here, etc.

What responsible ? I thought all the while they want us to be kuai kuai listen only while they do the difficult ‘high-level’ thinking. Now, it’s time for my turn to go to the toilet.

However, I remain puzzled as to why oil contracts are used instead of gas, which is the primary input to the production of electricity here. Would I sell cakes and cost it based on oil prices, for example? Is it not timely to review the costing of electricity, and to make it known to the public the actual costs, as well as any subsidies applied, so that we can be sure there isn’t any profiteering?

What is this thing about 1 against 20? Is there going to be a pit-fight? If it is a civil bout between the Liaison Officer of the Brotherhood and Lazarus (not the Young PAP guy, right?) and his 20 merry men, TOC would be glad to host and provide a special space for this.

But first, someone do explain what on earth is going on? How did we get from bitter medicine to a duel between mortals and immortals?

Thank you.

Sincerely.

That being said, while the LRMC strike price is closely related to the tariff, the final tariff is calculated by SP Services and incorporates additional charges like transmission, account services etc.

I thought that some clown tell us it is a secret formula , and it is so secret it cannot tell the world. So how can you tell if the methodology may not involve price fixing and collusion with some public companies ? Remember in our country, anything that make money for our coffers, anything goes, it is not that we are new in Singapore.

Not to distract the issue but the increase in tariff is not “backed by a privatised company”. There’s a standard methodology to calculating the tariff and for 4Q it’s just that we were caught by falling spot prices and previously high forward prices.

It’s tempting to think that the buying companies somehow has power to influence tariff but speaking as someone from the industry itself I can assure you it’s not the case.

I have posted this in another thread and I think it is good to post it here too.

How often have we heard the above expression in our course of conversations, whether here in TOC or elsewhere in our own private gatherings. Do we really believe that Singaporeans are fully responsible for the rubbish perpetuated by the PAP govt? I seriously think we should stop thinking that we are at fault.

Look at the various election platforms by which the PAP sourced for our votes.
- A more open and consultative government.
- A gracious society
- The next lap (where we look after one another especially those lagging behind).

These are just of the few telling ones; and; it is by these promises that majority of the voters were taken in, believed and voted.

When things go wrong, the blame suddenly falls on the people for giving the PAP govt the blank check to govern. How wrong this percetion is. If it is true, then every democratic govt of the world can do likewise and blame the people for every failed policy.

It is time for us to wake up and be clever enough to discern the lies that this PAP govt has been feeding us. When you start to chant these lies like a mantra, you will end up believing that they are truth – which is furthest from the truth.

Think about it, won’t you?

Regards to all.

They can even sell “scambomb” to the public without feeling remorse and guilty, they can even sell the kangaroo system to the world of how world-class it is. They can even sell their legal profession that bring disgrace to the rule of law just to appease their masters. They even manipulate and brainwash educated youngster like P65 as leader to perpetuate their idealism, policy and power.

And to think that most P65 Leeders can only bring the same kind of arrogancy and nonsense as their masters to the public is really unbelieveable.

Greetings widowmaker,

You speak as if you know the Lazarus guy. Are you one with him? How do you know he is not trembling and shitting in his pants at the thought of his challenge being taken up by his opponent? Perhaps, it’s the same reason why the 20 promised scholars suddenly evaporated into thin air – cyberspace or otherwise. And just like Lazarus, you are also engaging in the same sport of trying to assassinate the brotherhood character.

(…excuse me, I need to go visit the loo…..)

……….. okay, I’m back…………………….

I just needed to throw up, if you don’t mind. Puking makes me feel better at times like these.

You must have knotted your own brain cells (if any). The challenge was made by the Laz guy, in case you’ve forgotten, or are those your own words instead? It was not by the figment-of-your-imagination space brotherhood creature.

Where is he now, the Laz guy? Waiting to be called out of the tomb – again?
Better remain where he is in case he comes across another noose to place over his head.

Gee, I am so polite.

I concur with you on your concern about the sale of core national assets to private enterprises. I am no economist but I can understand that these buyers will have an even more pressing and legitimate need to watch their bottom line. What better way to pass any cost increase to hapless captive customers? What if these enterprises fail down the road? What impact will it have on the nation? Electricity is a basic input in many supply chains, and I can’t see why any country would be so eager to sell these off for a profit? Is this consistent with the long-term view that’s held by the ruling party with respect to investment?

And btw, just wondering if this sale would be booked for 2008 and somehow find its way into the computation of this year’s GDP.