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The updated national oil plan (NOP), outlining the nation’s long-term oil consumption strategy, is anticipated to undergo multiple changes due to anticipated changes in global oil demand, the growing adoption of electric vehicles (EVs), and the expansion of data centers, according to the Department of Energy Business (DOEB).

“Such modifications go beyond our previous projections,” stated Sarawut Kaewtathip, head of the DOEB, in reference to the continuous efforts to develop a new strategy.

The NOP typically relies on information related to maximum oil demand, referring to the highest level of global oil consumption projected by the International Energy Agency (IEA).

The most recent reports from the IEA suggest a change in predictions regarding the peak of oil demand, with certain scenarios now expecting ongoing increases in oil consumption up to 2050, differing from previous estimates that anticipated a peak by 2030 followed by a decline.

Under the leadership of US President Joe Biden, the IEA forecasted that global oil demand would reach its peak this decade, with media reports stating that investment in new oil, gas, and coal projects would cease if the world aimed to achieve net-zero emissions by mid-century.

In Thailand, investment in the oil and gas sector surged after the pandemic, leading to an oversupply as demand could not keep up, according to Mr. Sarawut.

The International Energy Agency’s forecast and local oil production are important elements in determining the NOP.

The committee responsible for drafting was formed and is anticipated to be completed next month, followed by a public hearing two weeks afterward, he mentioned.

The NOP is set to be completed simultaneously with the new power development plan that details electricity demand and supply management.

As per Mr. Sarawut, the swift expansion of electric vehicles and data centers is another consideration in formulating the NOP.

Battery electric vehicles (BEVs) are becoming more popular in Thailand, even though the automotive sector is experiencing slow growth. This is due to banks and car financing firms applying stringent conditions for auto loans, as they are concerned about potential non-performing loans, given the high level of household debt in the country.

Although the number of electric vehicle drivers is increasing, many other drivers still opt for gasoline-powered cars because of limited public charging facilities in rural regions and high battery costs, causing some insurance companies to impose rigorous conditions on electric vehicle policies.

He mentioned another reason for the NOP is the rise in digital-driven economic activities, such as more businesses relying on data centers and cloud services, along with increased need for telecommunications products.

“Companies like data centers consume a lot of resources. They will need a significant amount of electricity, sourced from both renewable and non-renewable energy,” stated Mr. Sarawut.

Digital industries need a highly reliable power supply. He mentioned that factory operators must not allow any power interruptions.

These sectors require oil-fueled generators as a secondary power source, particularly in situations like natural disasters or incidents that disrupt the electricity supply, noted Mr. Sarawut.

As per the DOEB, the existing NOP promotes the utilization of biodiesel B7 and gasohol E20 as main fuels at gas stations to decrease reliance on petroleum consumption. B7 consists of diesel combined with 7% methyl ester derived from palm oil, whereas E20 is a gasoline blend containing 20% ethanol.

The government initially provided financial support for the costs of raw materials used in producing B7 and gasohol E20, but once Thailand’s biofuels completed their early development stage, the subsidies were no longer available.

He mentioned that another element taken into account while preparing the new NOP is the government’s schedule for reaching a net-zero goal, which involves balancing greenhouse gas emissions with their removal.

The government led by caretaker Prime Minister Anutin Charnvirakul stated that Thailand intends to reach net zero emissions by 2050, 15 years ahead of the earlier target.

Provided by SyndiGate Media Inc.Syndigate.info).