The lifting of oil price cap order by GMA is quite disappointing. It was the only Executive Order she made that truly benefit the whole constituents. It was a about to deliver justice—equal treatment of rich and poor. But GMA's toughness is limited only for activists and journalists protesting her performance.
The threat of the oil price cap, I am speaking in managerial perspective, was about to be opportunities. And because of the lifting, we lost those opportunities.
The oil industry was about to have the opportunity to improve its managerial skills and developing the whole human capital to entrepreneurship for better productivity and exploit the technology for efficient and effective to meet its goals.
GMA is poor in leadership to convince the oil firms that they will also benefit in a lot of ways by sacrificing a little financial gain and a mediocre at all.
One good example is recognized by Shell which announced that it is planning to stop its refinery operation due to its high cost based in Mean of Platts Singapore (MOPS) and would rather import refined products. If Shell to decide to continue the refinery ops, it will require for more capital for modernization.
If the cap order is not lift, Shell would probably modernize its refinery resulting (not to mention the capital infusion from its global headquarters) to technology advancement and human capital skills advancement. With the lift order. This dream turned out to be a nightmare—no aggressive process development and skyrocketing price of oil.
One possible scenario if the cap is not lift, Shell will abandon it refinery and import refined products (application of Adam Smith's doctrine but practitioners and disciples of Smith forgot or ignore that the principle of “it is better to buy than to produce if the cost is less to do the former” is aimed to dischargecorporate social responsibility and fiduciary obligations to stakeholders not just for profit alone).
But this threat is again an opportunity for the government to give the market a fair competition in oil industry. Government should take over the would-be abandoned refinery companies to save the workers from losing jobs.
Politically, I would like to congratulate the oil firms. Oil firms won the battle in political arena even without lifting a finger. They just simply hire Energy Secretary Angelo Reyes to be their Spokesman and employ psychological-warfare. I admire the oil firms unity. Organizational effectiveness is becoming obvious. This strength is what the peoples' organization and marginalized sector lack. Some are very limited to street parliamentary (and worse rhetorics).
The Congress should not sit back as if nothing happened. The people-oriented legislative agenda must continue and be given priority over politics.
RANNIE C. AGUSTIN
+639177591043
raniagustin@yahoo.com
www.raniagustin.blogspot.com
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