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In Pursuit of a Better Energy PolicyThailand’s concession-based system for oil and gas exploration needs to be overhauled to better benefit the country’s citizensCivic groups from many parts of the country have asked the state to reform the way it manages energy resources and policy, especially the bidding for concessions for exploration and developmentT he value of Thai upstream, or unrefined, petroleum resources is estimated at 500 billion baht per year, far higher than the value of rice and rubber combined. Suffice it to say, if resources were well managed petroleumproduction would be the country’s largest source of revenue.Local oil and gas production can complement manufacturing, making local products more competitive compared to those from countries with higher energy costs. Lower fuel prices can also help the public cope with a rising costof living.Civic groups from many parts of the country have asked the state to reformthe way it manages energy resources and policy, especially the bidding for concessions for exploration and development. We have asked for an amendment to the Petroleum Act of 1971 to switch from concession-based contracts to production-sharing ones. Our campaign petitioned officials including Prime Minister Gen Prayut Chan-o-cha to revise the law before opening a new round of bidding.Thailand’s petroleum resource managementThe first legislation to regulate petroleum resource management in Thailand was the Petroleum Act of BE 2514 (1971) and the Petroleum Income Taxation Act of BE 2514. These were meant to “promote the exploration and production of petroleum by using appropriate measures to maximize the benefit to the state and public, and provide convenience to contractors”.Though the law has been revised five times, it still states that concessional contracts must be used for exploration and development. This goes against the global trend – especially in petroleum-rich nations in ASEAN with a similar geology – of switching to production sharing.Revisions to the Petroleum Act 1971 have only benefited private companies. A 2007 amendment revoked limits to the number of concession plots. The original had limited each developer to five plots no larger than 20,000 square kilometres each. The amendments imposed a 4,000 sq km limit on plots, but no limit on the number of plots a contractor can operate. Mubadala Petroleum (Thailand) Ltd, for example, in 2010 held concessions for exploration and development in up to 100,000 sq km. Total land open to petroleum exploration in Thailand is only 270,000 sq km.In 1989, the state adopted price tiers for royalty fees, charging each developer between 5 and 15%. Previous royalty collection had been at a 12.5%Elite+ 31