And are you in the supply chain or oil industry or even in power
generation that you feel that your reasoning is correct? If you
are, then fine, I will accept that and start deliberating over your
points.
That's what I am trying to say when I say I am in the field of
Business IT. I don't pretend to know a lot about supply chain and
how they ration their oil supply for our generation of electricity,
even though I have supply chain logistics experience to know
enough. That's what I am saying. I am only good in what I am good
in. I don't go about pretending to know how many keys are there in
a piano, how many strings are there in a piano. I only know how a
piano looks like, and i know the brands that make good pianos.
Seriously, is the increase in crude oil price related to the price
of LNG? Coz you make it sound as if becoz we use LNG, our power
generation has to be much more expensive. This reasoning is a
little flawed for the following reasons:
- All increases in price of electricity over the past few mths
are informed to us that it is because of the increase in crude oil
price. I don't recall it's related to LNG, though I would gladly
hope you can provide some info if you have it.
- Therefore, now that the price of crude oil has fallen, we
should see a corresponding decrease in price. Yet, now you are
telling me that coz LNG is part of the input for our power
generation, then the fall in price of electricity is limited.
So price go up = Crude Oil price went up?
So price go down, limited coz now we have LNG price to
consider?
If the above is not what you are elaborating, then feel free to
correct me.
So your opinion is that if i do not work in a certain occupation
i'm not allowed to research and work out how everything fits
together? I read, i bother to go find out websites who can describe
such workings in detail and see how the experience of others is
related to ours.
Then you do not work in Temasek management and not intimate to
its daily functioning either, you are making assumptions just as
much as i am no?You do not work in ministerial positions, you are
making guesses as much as my assumptions.
LNG still requires oil in order to be transported around (
tankers, truckers..etc) as well as fossil fuel investment for
supply infrastructure (processing terminals)
I quote
LNG is usually viewed as a premium fuel, like oil, due to its
relative cleanliness, ease of use and ability to be transported by
sea over long distances. For these reasons, and the fact that Japan
initially imported LNG partly to substitute for oil-based fuels,
oil prices have historically been used as the basis for setting the
price of LNG in the Asia-Pacific region under long-term
contracts.
The full text is here
http://www.med.govt.nz/templates/MultipageDocumentTOC____39562.aspx
It's a NZ site, so i can't be accused of quoting from "biased"
local media.
Thus, LNG cost is related to oil prices and will be
subjected to price increase along with oil.
Anything, irregardless of the China made milk powder or LNG
requires oil to be transported across the seas to Singapore.In
Singapore's LNG case, transported to the terminals so it can be
funnelled through pipes to us.
With the internet, it's not hard to find out how many keys are
there in a piano, how many strings are there in a piano and what
brands are good. Forums are there so it's easy to get an idea of
what constitutes a good piano and what doesn't. So while i may not
know what determines a great piano, i at least know what a good
piano would be like.
You work in Business IT, and have deal with Logistics
Chain Management. So i'm sure you're going to know that the idea of
using IT is to compile the logistical data to determine how much
goods i'm going to buy for next month. I have a diploma in IT and
some experience as a sales person so i roughly understand how that
would work.
If you put in your order for next month and it arrives
just as the prices drop, is the supplier going to refund you the
difference? I'm pretty sure that's not really a business practice.
So how can you expect the prices to drop to the corresponding level
immediately?
I just look at things in terms of cause and effect. If i'm using
something, why does it come from and how much effort did it took to
arrive in my hands. I don't have to be an industry expert to
understand things in such terms, all i have to do is observe my
surroundings and direct my enquires to the internet.
