First oil production in Thailand was done in the year 1981, in this year only 2000 barrels were produced in the whole day. This production has experienced a positive deviation since the year of discovery to date due to a number factors including technological advancement, availability of work force both skilled and semi-skilled labor as well as ready market. Between the year 2010 and 2014 the oil production has increased from 390,000 to 502,000 barrels daily.
The largest oil producer at Thailand is the Chevron which owns major oil fields in the region. Other oil mining companies such as Benjamas and state owned oil company together with other international companies have taken part in oil production contributing to high oil production in Thailand.
There was a decrease in oil production in 2015 caused by more imports that were aimed at meeting domestic oil consumption demands. The recovery of Thailand’s economy implied a 4% increase in the energy consumption while an oversupply of oil led to a decrease of prices of oil in the world market.
Petroleum products from Thailand have got a number of uses both within the country and outside. Plastic products, chemical products, and synthetic materials are all petroleum products. Car fuels, engine oils as well as jet fuels are products from petroleum. Chewing gums, sports equipment, lipsticks, tooth pastes, guitar strings are all petroleum products.
A stable supply of energy from oil has ensured the stability of processing and producing industries in Thailand, this has promoted economic balance by balancing the consumption and production rate. At times productions become more than the consumption rate that leads to the inflation in the economy. Inflation marked by a decrease in prices due to overproduction of commodities. Thailand stays away from such type of inflation by exporting the surplus industrial productions to the global market as well as developing countries.
Chevron produces 35% of Thailand’s natural gas and crude oil. This company partner in the Star Petroleum Refining facility in Map Ta Phut, Thailand. This has got safety features including environmental control mechanism. Caltex leads in the supply of petroleum products such as gasoline, gasohol, and biodiesel fuel. The brand also deals on both industrial and aviation fuel.
Chevron began production eight years after the discovery of natural gas in the gulf of Thailand. As a result of this discovery, the country’s petrochemical industry was put up to process the oil products into finer consumable products. Most of the oil blocks in the Pattani Basin are owned by Chevron and produces almost 66,000 barrels daily as per 2015 statistics. Chevron sells natural gas the National Oil Company of Thailand that later uses it for generation electricity as well as industrial and transportation fuel.
Oil economy in Thailand is mainly run and managed by the chevron since it is the largest shareholder of the oils fields, it has created a lot of employment opportunities to the locals thus uplifting their living standards.