DEBATE by Rajmi manatunga

Oil crisis: Minimising the impact

Ever since man discovered oil as a source of energy, the importance of and the demand for oil has only increased. The emergence of oil not only saw the gradual demise of the ‘coal age’, but its effectiveness as a source of energy caused yet another industrial revolution, enabling mankind to improve their lives with new technological inventions powered by oil.

Consequently, almost every aspect of today’s life, whether it is travelling, working, or cooking your simple meal, is inextricably linked with oil, coming in all forms like petrol, diesel and gas.

However, this dependence on oil which is an exhaustive energy source, has for years caused problems for nations across the globe, resulting in what has come to be known as the ‘oil crisis’.

Over the past half a century, the world economy and the economies of most countries have experienced constant pangs owing to soaring oil prices, attributed to the gradual depletion of oil deposits worldwide and the capricious decisions of the OPEC.

The impact of the oil crisis on developing countries like Sri Lanka whose energy requirements are largely met by oil, has been severe due to its ripple effects on the cost of living, as is evident from situation we are facing after the price of oil hit the US $ 135 mark last month.

Beyond these economic repercussions, the energy crisis is also a global problem as scientists have already predicted that in the 25 years to come, mankind will run out of all oil resources.

What measures could the Government take to address this crisis arising from the sky-rocketing oil prices? Is it time for Sri Lanka to minimise its dependence on oil and adopt a rational energy policy that focuses on renewable energy sources like wind power or natural gas? What is the role of the public in facing the oil crisis? Does it require a shift from our lifestyles of motor vehicles, televisions and air conditioners and other products powered by oil and electricity?

Have your say on the above topic as we take up the burning issue of ‘oil crisis’ on Daily News Debate next week. Send in your contributions (limited to 1,500 words) before July 08, 2008 to ‘Daily News Debate’, Daily News, Associated Newspapers of Ceylon Limited, PO Box 1217, Colombo, or via e-mail to [email protected].

Future of energy in Sri Lanka

Parakrama Jayasinghe

With the oil prices hitting yet another new high at $ 143.00 a barrel, the energy options for the future must receive the highest priority of not only the state, but of all citizens. Unfortunately there does not seem to be any sense of urgency that it deserves yet, from either sector. In the meantime the price of oil continues to go up.

On the other hand the efforts of the Government as evidenced by newspaper reports is focused only on encouraging the conservation of energy. While this is definitely an effort which should receive due attention, not only of the Government, but of all citizens, it will not solve the present or future energy crisis.

This article demonstrates an approach which can launch this change with significant returns in a very short time, with very little financial outlay, targeting a major sector using imported fossil fuel viz: the industrial thermal energy needs.

1. Coal is an imported fuel and is no longer a cheap fuel. The price of coal has risen from about $ 20.00 per ton to more than $ 140.00 per ton over the last few years in the producing countries themselves.

What is more important to note is that the same amount of energy from a ton of coal can be obtained from 1.5 tons of fuel wood which would cost only about Rs 5,000 and the money will flow into the rural economy in Sri Lanka, instead of flowing out of the country as foreign exchange.

2. What about acceptable alternatives?? It is unfortunate that our available resources are underestimated and underplayed by those in authority, at any forum where such topics are discussed. They are given scant attention in the misguided belief that they are not substantial.

Given adequate recognition and support the indigenous and cheap resources can be developed very fast to overcome the impending crisis without mortgaging the welfare of the future generations, to a continued dependence on imported dirty fuels.

3. Of these the most abundant and easily developed resource is the Sustainably Grown Fuel Wood Species such as Gliricidia Sepium, This is an indigenous, renewable, cheap resource and moreover, is a source of multiple other spin off benefits.

Such benefits and technical details of growing have been explained in detail by the Bio Energy Association of Sri Lanka and published in their web portal www.bioenergysrilanka.org Dr Ratnasiri has provided ample statistics to prove the availability of the lands to grow our own fuel.

In reality the current import of 425,000 tons of petroleum products used by industries, just to generate steam or hot air can be replaced by fuel wood immediately. This would require only some 65,000 Ha of fuel wood plantations.

No new technology is needed and only minimal changes are needed in the existing equipment and facilities. The cost of such changes can be recovered in a few months by the industries by way of the saving in energy costs.

The thermal energy provided by one tonne of oil can be replaced by four tonnes of fuel wood. Therefore 425,470 tonnes of oil can be replaced by 1,701,880 tonnes of fuel wood.

Most of the industries are located in the western, North Western Provinces. Coincidentally most of the coconut estates are also in this region, which are ideal for growing of Gliricidia as an intercrop with symbiotic relationship with coconuts. This fact has been proven by estate level experiments over several decades.

Only about 40% of the total area under coconut by intercropping with Gliricidia is needed to supply the full compliment of fuel wood to replace the 400,000 tons of oil used in the industries.

It is useful to consider the following benefits if this conversion is made based in current prices and costs.

* Foreign Exchange saving for the country US $ 300 Million

* Savings for the industries in fuel costs Rs 23,000 Million * Flow of income to the growersRs 6720 million

* Additional foreign exchange Saving by fertiliser value of leaves as replacement of urea (28,220 tonnes urea @ $ 1000) US $ 28.220 Million)

* Encourage the industries using fossil fuels for thermal energy to covert to the use of fuel wood by subsidizing the interest on the loans taken for implementing the change.

* To ensure the reliable supply of the fuel wood needed, encourage the coconut plantation owners, small holders and homesteads with small plots of land to grow Gliricidia and other recommended SRC trees by a subsidy scheme proposed below.

* Make use of the industries given the interest subsidy to enter into forward purchase contracts with the identified growers surrounding their factories and provide subsidies up to Rs 10.00 per each successfully established tree paid in instalments. The industries are to be reimbursed such payments made by them by the relevant state agency as the plantations are established and the fuel conversion is made.

The Government has taken some meaningful steps to develop the renewable resources. However under the present crisis they are inadequate and are receiving only lukewarm attention by the officials in different ministries and departments, who have the responsibility and the authority to make the necessary change.

Only the President can give the necessary leadership to jolt the officialdom from their lethargy by including energy also in to his drive for independence of our food supplies. The great advantage we have is that we can have fuel, fodder and fertiliser from the same source grown with synergy with the food crops.

It is not possible to go into the details of the multitude of energy options that Sri Lanka is blessed with. But I would like to make the following specific proposals for the President’s urgent attention.

* The newly established Sustainable Energy Authority has a very great challenge in converting the Nation Energy Policy to a reality. They have an even greater responsibility to ensure that the state officials acknowledge the vast potential of renewable resources in Sri Lanka and pro-actively contribute towards achieving the very conservative targets already set of 10% of all energy to come form renewable resources by 2015.

This target set 3 years ago need urgent revision in the present circumstances. The SEA has to take up the role of developing indigenous sources of energy as their main objective and should use the wide ranging powers provided by the act to force other state institutions to provide the support necessary overriding any barriers.

* One way ensuring the success of the specific venture proposed, is by the Ceylon Petroleum Corporation being given the task of achieving the set targets of indigenous renewable energy for industrial thermal energy. They can do this as state enterprises or by encouraging the private sector to corporate. However, the onus of achieving the targets should remain with them.

*Any kind of subsidies for use of fossil fuels for industrial is a short sighted vision. Instead, very substantial incentives including low interest loans should be provided for industries to convert their systems for use of fuel wood.

This will encourage them to take proactive measures to ensure steady supply of fuel wood for their needs with multiple benefits for the growers. A saving of 400,000 tons of oil imports per year can be guaranteed within two years if this measure is followed up with necessary vigour.

Sri Lanka will need to buy or seek foreign assistance to obtain the technologies and the equipment for the conversion of the energy resources to the required form. But under no circumstance should we resort to purchase of the fuel resources themselves from abroad as the solution to our energy needs.

The above proposals focus on only one sector of our energy needs, which is the easiest to achieve. However, similar approaches are possible to address the other sectors such as electricity, domestic and commercial thermal energy needs and transport energy with varying time scales and degree of complexity. The Bio Energy Association will be happy to provide detailed proposals.

It is customary to lament about Sri Lanka’s lack of natural resources particularly fossil fuels. But the reality is that we are endowed with many potential renewable resources if only we have the courage to develop and sustainably exploit them for the benefit of all Sri Lankans.

(The writer is President Bio Energy Association of Sri Lanka.)

Oil godspeed to all explorers

Miran Perera

On examination of the various economic problems facing Sri Lanka it was observed that the oil energy crisis that has been prevalent for a couple of decades is the most critical problem that strains the country’s economy. This as a result prevents its forward march which is more critical in magnitude than any other crisis inclusive or separatist problems in the Northern and Eastern provinces of the island.

It is a well-known fact that almost all the countries in Asia other than Sri Lanka have already taken necessary action to find solutions for the oil energy crisis. Many industrialised nations are spending enormous sums of money in oil exploration by sending expeditions to all corners of the globe where new discoveries of oil deposits are envisaged perhaps wishing quicker because of the gravity of its scarcity.

The main action utilised in establishing production plants to manufacture alternate fuels where by saving valuable foreign exchange and creating a large number of employment opportunities in many countries.

Alarm bells have started ringing in oil importing countries partly because of the spiralling oil prices and partly over fears of a potential supply disruption. A Paris based international energy agency has put together a draft report on entitled ‘Saving Oil in a Hurry: Measures for Rapid Demand Restraint in Transport’.

The report underlines the vulnerability of the member nations to price shocks and supply disruptions and goes on to discuss ways of reducing dependence on oil used in the transportation sector which leads oil consumption all over the world.

The measures include apart from the usual mix of energy saving options such as flexible work schedules, car pooling, telecommuting, speed restrictions even tyre pressure calibration etc... steep cuts in mass transport, tariffs to encourage greater use of public transport.

Drastic emergency measures have been contemplated by the report such as driving plans on weekends alternate day car use etc... The report has computed the extent of policing that would be reacquired to enforce the ban and to justify the cost involved. The fuel importers must be ready with a plan to suddenly curtail consumption without seriously disrupting normal life.

Many expeditions in search of oil has been sent to the seas while an equal or more in number are exploring the land mass including the North and South pole. Many governments and private enterprises have pumped in or invested in oil exploration. The complicated technology required has been made mobile so much so that they are installed amidst the oceans making easier the extraction of oil from the seabed and also to hunt for new oil deposits.

Studies conducted in many countries have resulted in the discovery of a number of alternatives to Petroleum. Vegetable oil such as, Soya oil, Rape seed oil etc... are alternative for diesel. Ethanol is the most widely used alternative fuel, which is used extensively in countries such as Brazil, USA, Canada, India etc... Automobile powered by gasoline and Ethanol are widely used in these countries. For example in USA around 6 billion litres of Ethanol are used in blending gasoline.

Ethanol can be made from high starch containing crops such as manioc and maize or high sugar containing crops such as sugar cane and sweet sorghum. Acknowledging the challenge posed by excessive oil consumption the USA has just 3% of global oil reserves even as it consumes 25% of global production.

They want billions of tons of bio mass, crop residues and agricultural waste produced in the country to be utilised to generate electricity that would fuel vehicles in future, a veritable leap back to the future, after all drilling in the arctic National Wildlife reserve.

Tax shy Americans are being persuaded to fund extraction of costly Shell oil and Alberta tar sands through levies on petroleum consumption. These fuels cost thrice as much to mine as conventional oil and its exploration.

There is an urgent need for oil exploration scientists and oil geologists while there is an urgency to discover rich oil deposits around the world. A recent explosion at an oil refinery near Houston Usa, that claimed lives has further accentuated the American sense of paranoia over the vulnerability of global oil pipelines and infrastructure forcing them to look inward for solutions.

This implies that high cost is incurred not only on oil exploration but also in extracting oil safely and in its efficient distribution. While oil explorers are searching worldwide for oil it is essential that short-term and medium-term measures are taken to reduce fuel consumption.

It could be achieved by reducing traffic congestion. Heavy vehicles including lorries and containers on roads during rush hours cause traffic congestion.

Traffic jams cause an appreciable waste of fuel amounting to around 2 billion per year. Staggered office times and a change in school times would reduce traffic congestion to a considerable extent and thus reduce fuel consumption and hence our expenditure on fuel imports. Reducing electricity consumption reduces fuel consumption about 65 per cent of electric power is thermal and diesel is used as the source.

Consumption of electricity in offices can be reduced to a considerable extent if action is taken to cut down excessive use of electricity. Reducing consumption of electric power in offices and other public places would considerably reduce our expenditure on oil thereby reducing our expenditure on fuel imports.

In Sri Lanka we must establish a government policy to use ethanol as an additive to petrol as done in the rest of the world. We must impose a limit for Ethanol say about 10 per cent in petrol. We must educate the masses on benefits of producing and using ethanol.

We must also establish a price structure for ethanol. We must start to produce at least 10% of the local requirement of fuel for vehicles. Part of Ethanol requirement could be produced using molasses from the sugar industry. The cost to explore oil in the vicinity of the sea owned by our nation is enormous.

Looking for alternatives

N. U. Abdul Razzak

The debate column of the Daily News has once again become the forum of discussion of a burning, the global oil crisis as it has rightly endeavoured focussing its attention on the title the oil crisis: Minimising the impact for this month.

Undoubtedly, the salient points that come out of the cream of the contributions of the readers and the experts of this field can substantially help in finding effective ways and means to tackle this menace which has reached the alarming proportions badly and bitterly affecting most of the developing countries of the world. Therefore it is high time the attention of the whole world was heeded on this latest threat.

Black Gold

Petroleum which is a mineral oil found in large deposits underground is the gift of God to many countries that have got a massive area of deserts. It is believed that crude oil got originated during the deposit of dead marine organisms together with sand, silt and other sediment which formed the rocks under the sea bed thousands of years ago.

Thus a large number of Middle East countries enjoy getting this black gold which certainly is a money spinner. Our mother that also badly wants to be in this elite club of oil producing nations got and get engaged exploring the possibility of getting this liquid goal which is an indispensable fuel for the function of vehicles, machines, plants, factories, radio stations, television channels and what not!

The sea areas of Mannar have been identified as the ideal spot where explorations are to be carried out to get this invaluable resources that makes more money today is an unprecedented manner.

Sri Lanka should not get bothered even a drop of petroleum fails to be discovered as our beloved isle is blessed with many other resources such as gem, pure water, rivers, waterfalls, mountains, jungles, wildlife, valleys, sandy beaches, mines of treasures and so on. Necessity, they say is the mother of invention. Our position is not that bad for looking for new inventions.

There are plenty of resources that can usefully utilised to generate the fuel and power to make this country self sufficient in terms of fuel which will obviously put an end to all other ills such as poverty, unemployment and the like. In this regard, the best option for Sri Lanka is not chasing the illusion of black gold but making efforts to generate hydro-electricity.

The cheapest means of energy for Sri Lanka undisputedly can come from hydro-electricity projects. Our central part, the hill country has got a good number of cascading waterfalls that can be used for the generation of electricity. We have got a separate ministry for the longest river the Mahaweli.

Although the gigantic Mahaweli diversion project reached its completion there are more areas where initiatives can be taken for more benefits for the nation. As the oil crisis has come to our doorstep serious studies should be made for greater speedy projects of hydro-electricity for Sri Lanka which is spending millions of hard earned money to purchase this black gold which is fed to thousands of vehicles for their movements.

Factories, plants and industrial zones also need the crude oil for their smooth operation. Getting fuel and energy through other means such as atomic projects, wind mills, solar system too should be exploited to avoid the risk of putting all our eggs into one basket that of hydro electricity.

Sri Lanka should strive hand to get self sufficiency in electricity as we have all the resources expertise and man power. If the whole country gets powered by electricity the demand for the petroleum products can drastically go down. Thus a revolution can be made to give a great relief to the masses.

Waste not want not

“What cannot be cured must be endured.” This adage warns us to be prepared for the worse. In such a scenario, what can the masses do to alleviate their suffering to lead a normal life. Cutting wastage, adhering to thrift, cost cutting and cutting down unnecessary expenses will immensely contribute to get a relief.

As a penny saved is a penny earned,” the nation should gear up for such measures kitchen, in the office, in the street or even in the air. Look at our roads.

They are full of vehicles which mercilessly suck a huge amount of oil worth millions of dollars.

Can we pool the vehicles and provide a common transport for the students, public servants and other commuters? Isn’t it a sin to see five vehicles that come from a same residence to give transportation. Why a single vehicle can’t help in carrying these persons to their destinations in a methodical way. If this happens in hundred homes in a particular city no traffic jam will give a time of trouble to the road users.

Therefore the members of the general public especially the upper class should be sensitive to such problems before authorities consider taking drastic action. Our buses particularly that of private sector sometimes go on road races forgetting their responsibilities. These are a few examples where wastage becomes a major hurdle retarding the progress of this nation. Leaders of society of particular area can decide certain measures that will give some relief to common masses.

The government officials can be contacted for their help in implementing such relief measures. The children of today will be the backbone of this country. They should be taught the good values including the importance of avoiding waste, adhering to thrift and cutting down unnecessary expenses.

War is the greatest monsters that destroys not only the people and property but also it ruins the economy of a nation. Therefore working towards peace is an essential duty of everyone. Peace should blossom every nook and corner of the world. Then the price of crude oil and other essential commodities will come by a big margin. Our country that gets a big slice of finance for defence can make use a greater part of it to feed the nation instead of using it for the unwanted war.

Therefore all parties should unite to bring back the ceasefire.