National oil and gas conglomerate PTT Plc suggests the government turn the oil crisis into an opportunity to seek new petroleum resources and increase reserves as much as possible, says president and chief executive Tevin Vongvanich.
"At the current US$28-30 a barrel, the oil price is right for the government to increase oil reserves," he said.
In 2013, energy policymakers asked oil traders to boost their crude and refined oil reserves from 36 days' supply to as much as 45 days in a bid to ensure energy security as electricity demand was rising.
Authorities last year allowed oil traders to cut their crude oil reserves to 22 days and refined oil to 3.5 days to cut costs.
"Oil traders may have a hard time to increase their reserves but the government can do it and at this price the investment in oil reserves is viable," said Mr Tevin.
Tevin: Low oil prices may last long time
He said the government should consider whether to resume a project to build an oil pipeline connecting oilfields in the Gulf of Thailand with the Andaman coast.
The project was initiated four decades age. It was resumed during the Thaksin Shinawatra government in 2004 but a study found it was not viable commercially and it was shelved.
The project would require a new study and business model, Mr Tevin said.
He said low oil prices could last for several years.
"I'm not sure whether the price has bottomed out yet but it can't go below $25 a barrel as at that price no one can survive," said Mr Tevin.
"I'm sure the price will not return to $100 a barrel."
He suggests the government seek exploration and production licences in countries with rich resources through its subsidiary PTT Exploration and Production Plc (PTTEP).
As the state exploration arm, PTTEP is trying to adjust to cope with the cheap crude oil price, which is now lower than its production cost.
SET-listed PTTEP has operated oil and gas reserves in the Gulf of Thailand, Canada, Myanmar, Australia and Mozambique but has not yet found new resources.
PTT and its subsidiaries have all felt the pinch of the oil price crisis. It trimmed its budget from 326 billion baht to 300 billion in early 2015 and to 297 billion late in the year to make expenses match the downward trend of oil prices.
It will revise down its five-year operations and production capital expenditure budget in the first quarter.
The group previously earmarked 1 trillion baht for capital expenditure over the next five years, based on an assumption that global oil prices would average $40 a barrel in 2016.
PTT shares closed yesterday on the Stock Exchange of Thailand at 241 baht, up 1 baht, in heavy trade worth 1.7 billion baht.