Govt told to prepare for ME fallout

ABUSINESS group on Monday prodded the Aquino administration to prepare for a potential oil shortage as well as displacement of overseas Filipino workers (OFWs) in the Middle East and North Africa amid changes in that region’s political landscape.

In a statement, Felino Palafox Jr., Management Association of the
Philippines (MAP) president, said the group “strongly encourage[s] the Aquino administration, particularly the Department of Energy and the Department of Labor and Employment, to take proactive steps in addressing the possible negative repercussions on large companies and small and medium enterprises of the rapid developments in the Middle East and North Africa.”

“The Philippines must be prepared in case there will be a recurrence of the 1973 oil crisis, and should reduce dependence on fossil oil consumption,” Palafox said.

He said the government should be “better prepared than sorry when the unwanted scenarios happen.”

“The MAP will be happy to work with the government and the private sector through a public-private partnership in whatever energy-preparedness strategies, plans and programs the government is developing for meeting the adverse impact of fast-increasing oil prices, probable disruptions in oil supply and possible unscheduled return of overseas Filipino workers who are based in the affected countries,” Palafox said.

The Middle East is a top destination of OFWs, whose remittances fueled consumption and prevented the Philippines from slipping into a recession during the recent global financial crisis.

The Philippines also is a net importer of crude oil, with the transport sector dependent on fuel imports.

Oil prices surged in Asian trade Monday, with Brent crude passing $103 as escalating tensions in Libya fuelled concerns over instability spreading across the oil-producing Arab states, analysts said.

Brent North Sea crude for April delivery jumped $1.13 to $103.65 per barrel, and New York’s main contract, light sweet crude for delivery in March, gained $1.17 to $87.37 in the afternoon.

“Both benchmarks have really zoomed ahead this morning. The main driver is really the unrest in the Middle East,” said Victor Shum, senior principal for Purvin and Gertz energy consultants in Singapore.

He added that fresh violence in Organization of Petroleum Exporting Countries (OPEC) member-state Libya was igniting fears of instability spreading throughout the key oil-supplying Middle Eastern and North African region.

“Libya is a member of OPEC and even though Libya’s oil production isn’t very significant on a global basis, it’s really threatening close to the main suppliers of crude oil to the world, mainly Middle East and North Africa,” Shum told AFP.

Intense gunfire was heard early Monday in the heart of the Libyan capital Tripoli and other quarters of the city as Saif al-Islam Kadhafi, the son of strongman Moamer Kadhafi, warned the nation was on the verge of civil war.

According to Human Rights Watch, at least 173 people have died in Libya since the anti-regime protests broke out on February 15 after similar uprisings in Tunisia and Egypt that ended the long rule of two veteran leaders. –Ben Arnold O. De Vera, Reporter, Manila Times with report from AFP

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