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This column covers "developing stories" meaning that you can expect additional stories on the same subject in the near future. The material that follows was written using much of the same language as your Bangkok Post writers use in their stories. June 28, 2005 LOCAL Tight resources Government leaders say energy cutbacks are necessary, but water shortages are not a problem

Water levels at the Nong Plalai reservoir in Rayong have fallen sharply due to drought and increased use by factories operating along the Eastern Seaboard. — APICHIT JINAKUL The main news of the day will probably centre on yesterday’s censure debate in parliament, but learning post goes to press much too early for me to cover that. Instead, I’m focusing on a short-term and long-term problem that promises to be far more important than any possible irregularities at Thailand’s new airport. It is becoming increasingly clear that Thailand and many other countries around the world are facing a potential crisis over the resources necessary to run their economies. Energy is an obvious example. The fact that oil prices are near an all-time high clearly indicates how tight the supply situation is. For a long time, the Thai government tried to shelter to us from the full force of the price increases by providing generous subsidies – almost 100 billion baht since January 10 of last year. Now, with the state oil fund facing huge debts, Thai businesses and consumers are finally paying very close to world market rates. This has brought complaints in energy-sensitive industries like fishing and transport, but there is little the government can do to help them. Indeed, things are likely to get worse rather than better. At the moment, the government is still calling for voluntary conservation measures like a midnight curfew for television stations, switching off lights and air conditioning during certain periods of the day and driving more slowly, but it also planning mandatory measures if consumption does not fall significantly. That won’t be pleasant. But there is another more basic resource that also seems to be in short supply: water. Last week, at the apparent request of government water management officials, some of Thailand’s biggest industries operating along the Eastern Seaboard announced production cutbacks of up to 40 percent because water levels in local reservoirs were dropping to dangerously low levels. Government leaders were quick to dispute this, however, saying the problem was being vastly overstated. Prime Minister Thaksin Shinawatra insisted that supplies at the main reservoirs serving the area were sufficient to meet industrial demand over the next two months, and that water levels were being replenished through cloud seeding programmes. Industry Minister Watana Muangsook and Agriculture Minister Sudarat Keyuraphan had earlier assured local businesses that water supplies in the eastern region were sufficient for business operations. So what’s going on anyway? According to Finance Minister Somkid Jatusripitak, clearly worried about the effect of the perceived water shortage on investor confidence, the real problem is mismanagement and poor coordination among state agencies. Water levels may be low in reservoirs, but overall supplies are adequate and he demanded that the officials in charge take immediate action. Dr Somkid went on to say that state agencies were wrong to have called on the private sector cut back production to deal with the problem. “Telling the private sector to cut production is definitely not state policy. Our policy actually is to have manufacturers run at full production as normal. It’s our job, however, to ensure that the private sector has enough water to operate,” he said. Much of the responsibility for finding that water has fallen to Deputy Prime Minister Phinij Jarusombat. The first step, he said, is to authorise the digging of new artesian wells, which, beginning within a week, would add significantly to the local supply. Then, within six months, authorities will build new canals and pipelines linking Dok Krai and Nong Plalai with the industrial zones and rivers in the area, Mr Phinij said. A 2-billion-baht canal will link the Bang Pakong river with Nong Plalai within two years. So, the problem is solved – assuming, of course, the rainy season does its normal job of replenishing the water in the reservoirs. Or is it? We’ll find out shortly. Meanwhile, companies like Thai Oil Plc are making contingency plans in case the picture painted by government leaders turns out to be too rosy. Managing director Piti Yimpasert says his company may use tankers to begin bringing in water from the Chao Phraya River. irregularities something which is not done according to the rules potential possible shelter to protect from something bad subsidies paying part of the cost of something voluntary without being forced conservation carefully using valuable natural resources that are limited in availability mandatory required; must be done; compulsory consumption the amount used apparent seeming to be true request asking for something reservoirs large places (like artificial lakes) for storing water dispute to disagree with vastly hugely; by a large amount overstated made to seem more important that it actually is replenished filled up again cloud seeding making rain artificially by dropping chemicals on clouds perceived believed or understood coordination working together in an organised way sector one area of economic activity (private, public, financial) authorise to give official permission for something to happen artesian wells holes in the ground through which water is force up by natural pressure linking connecting contingency plans plans to be used if something (usually a problem) happens in the future rosy very positive; giving hope of success

INTERNATIONAL Chinese capitalism on the move One of the USA’s major oil companies is a target of a Chinese takeover bid Here’s a story that has shocked a lot of Americans. Last Wednesday, the Chinese state-controlled oil company, China National Offshore Oil Corporation (CNOOC), announced a bid to take over the giant US oil company Unocal, The bid, worth more than $18 billion (720 billion baht), offered Unocal shareholders $67 a share. The offer was more than a billion dollars higher than a previous bid to take over the company by the American energy giant Chevron, a deal that has been accepted by the boards of both companies. For most Americans, it seems almost unthinkable that a company from a communist country could be trying to take over a major capitalist corporation – an American corporation at that. Thus, the bid came as a real eye-opener for Americans, alerting them to China’s rapidly growing status a top-tier world economic power. Having the highest offer doesn’t mean that CNOOC will actually take over Unocal, however. US regulators would likely take a long hard look at such a deal and there is no guarantee that they would approve it in the end. The Bush administration, too, might be uneasy about having a large US energy company that is so important to national security under the control of a potential enemy. Such uncertainty might cause many shareholders to accept Chevron’s lower offer. But don’t count the Chinese completely out either. CNOOC is not your typical Chinese state firm. Its chief executive is a graduate of a US university, it conducts its board meetings in English and the company is being advised by two of Wall Street’s top investment banks, Goldman Sachs and JPMorgan. This is obviously a very serious bid and it will be interesting to watch what happens. It is made all the more interesting by Unocal’s very large operation in Thailand. Unocal Thailand was the very first oil company to win exploration rights here way back in 1962. It began producing natural gas in 1981 and today it is one of EGAT’s biggest suppliers. bid an offer by a person or a business to pay a particular amount of money for something eye-opener something that makes people aware of something for the first time status level of importance tier one of several levels in a system regulators people or organisations that officially control an are of business or industry and who make sure that it is operating fairly uneasy worried or unhappy about a particular situation count somebody out to be certain that somebody will fail at something Victory for a hardliner Mahmoud Ahmadinejad is Iran’s new president The Iranians have voted and, to the surprise of many, they have elected as their new president a person that newspapers are describing as a hard-line ultraconservative Muslim. He is Mahmoud Ahmadinejad whose last job was the mayor of Tehran. He is not very well known outside of Iran, but he has a reputation for advocating a very strict adherence to Islamic rules of behaviour. As such, his election represents a major change from the reformist president he succeeded. At the same time, he is much more in tune with the country’s religious leaders who wield the real power in Iran. Mr Ahmadinejad also seems to be very much in tune with the country’s poor who gave him overwhelming support. Analysts say he was able to exploited widespread resentment over the growing gap between rich and poor, a strategy helped by his own working-class credentials. What Mr Ahmadinejad’s election means for Iran’s relations with other countries is unclear. He has no real international experience, but has hinted that he is not in favour of quickly improving relations with western countries. There is likely to be a lot of analysis of what Mr Ahamadinejad’s rise to power means for Iran and the rest of the world. We can also expect some surprises as we get to know him better. hard-line extreme and severe and unlikely to change ultraconservative accepting only a very strict interpretation of the teachings and beliefs of a particular religion reputation the opinions that people have of a person advocating supporting adherence obeying a rule or keeping a belief in tune with having similar ideas or beliefs wield to have a lot of influence or power overwhelming by a large margin resentment angry over having to accept something you disapprove of gap a difference between two things credentials the experience that makes someone suitable for a job hinted suggested indirectly •This lesson was prepared by Acharn Terry Fredrickson, BA Stanford, MA (TESL) University of Minnesota, Manager/Editor of the Learning Post at the Bangkok Post and general editor of this programme. Read our other What's news columns here. Back to our home page |© The Post Publishing Public Co., Ltd. All rights reserved 2005 | Last modified: June 27, 2005