Use Existing Fuel Economy While Exploiting New Alternative Energy Sources.

2. Use existing gasoline economically while exploiting new alternative energy sources.

With the current rapid increase in oil prices, our country needs to immediately implement a strategy to use fuel economically and reasonably in both production and consumption as many countries are applying, such as: first, adjusting the economic structure through the construction of low-carbon production sectors (ie economic sectors that use less fuel). Second, it is necessary to adjust the fuel consumption structure through diversifying the supply and use of other energy sources, not letting the economy become too dependent on oil such as: gas, wind power, solar power, hydropower, nuclear power, biofuels, etc.

2.1. Use existing fuel economically.

Saving energy is not only an urgent requirement for our country but also a global concern. In the current situation, in addition to actively finding alternative energy sources, we still need to save the maximum amount of existing gasoline. This saving needs to come from the awareness of each individual, group, household as well as in agencies, enterprises, etc.

Save fuel in production and business.

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For manufacturing enterprises in general , one of the necessary things is to improve technology, increase the efficiency of machinery. Besides, it is necessary to know how to save input costs, use raw materials reasonably to save in the most effective way. Specifically for each industry as follows:

For the transportation industry: it is necessary to reduce fuel consumption, save costs of raw materials and fuel, management costs, extend depreciation time for vehicles, rationalize transportation processes, increase two-way transportation capacity to reduce the rate of empty vehicles... Research and perfect regulations on management and organization of transportation types to promote the superiority of each type.

means of transport, harmoniously develop all types of transport... avoid the situation where there are many transport enterprises but they are fragmented, small-scale and operate overlappingly... leading to a high rate of empty vehicles, causing waste and affecting the economic efficiency of society 52 .

For cement production and trading : improve clinker quality 53 ,

thoroughly save the consumption standards of main materials such as coal, electricity, gasoline, refractory bricks... improve the technology of using coal instead of oil. Increase the capacity of machinery and equipment, extend the running time of machines: rationalize the process of buying and selling materials, circulating cement to reduce the costs of transit and loading and unloading through the warehouse.

For steel production and trading: similar to cement, it is necessary to strictly manage the quality of input materials to reduce material consumption and establish reasonable standards for raw materials and inventories.

Coal industry: production is focused on increasing mine capacity, reducing management units. Increasing useful time, reducing machine downtime, rationalizing material supply and using cost-saving measures through investment for each type of coal mining.

Electricity industry: optimally operate low-cost electricity sources (hydropower, coal-fired thermal power, gas turbines, steam turbines), while minimizing the mobilization of oil-fired electricity sources to improve economic efficiency. Continue to strive to reduce fuel and electricity consumption in production compared to the assigned plan; limit inventory of materials, especially gasoline, oil, grease, electric cables, iron and steel and some construction materials. The new trend that is still being researched and applied is to use solar energy to replace conventional electricity. This will reduce the role of gasoline in this industry compared to the present.

52 Market Price Newspaper, September 2006 issue.

53 Clinker: a product of sintering at 1450 degrees Celsius of limestone, clay and some coefficient-adjusting additives such as bauxite, iron ore, sand... The quality of clinker will determine the properties of cement.

Offshore fishing: The State has introduced credit solutions such as handling credit loans for building offshore fishing vessels, assigning banks to extend debt for fishermen. The Ministry of Finance is guiding tax reduction for fishermen. In the long term, it is necessary to re-instruct production organization in the direction of coordinating between seafood exploitation and fishing logistics services to save fuel and preserve after exploitation. Strengthen the investigation of marine resources, improve the capacity to forecast fishing grounds to help fishermen reduce fuel costs for finding fishing grounds. Promote fisheries extension work, support training for fisheries to improve the technical, professional and management level of officers, crew members and ship owners. In addition to solutions from the State, fishermen themselves also need to make more efforts in awareness to change careers, reorganize production in the direction of production linkage.

and services to increase the value of exploited seafood, fishing efficiency and cost savings, reduce product prices to increase income and profits. 54

Save fuel in consumption.

In consumption, saving gasoline is a common awareness of each individual and each collective in order to effectively use the country's resources. For agencies, it is necessary to closely inspect and monitor the number of cars and motorbikes equipped by the State to ensure that they are sufficient for the unit's needs. In addition, it is resolute to not let the situation of using public vehicles for private purposes occur. In addition, it is necessary to strictly manage the State budget for the use of public vehicles through the regulation of the annual budget usage limit for each unit. For individuals and households, it is necessary to propagate and raise awareness of saving gasoline, for the benefit of individuals and for the whole society. Although means of transport are indispensable for the travel needs of each person, consumers can still save gasoline by choosing the type of vehicle.

54 Compiled from the magazine Trade and Price Market from 2004-2007.

Consuming less fuel, checking and maintaining the vehicle regularly, using the vehicle appropriately... In addition, you can choose a suitable alternative means of transport such as: using a bus instead of a motorbike (especially suitable for workers, students...), or a shuttle bus for employees (for companies and factories far from urban areas)... is also one of the feasible solutions to save fuel.

2.2. Ensure adequate domestic petroleum reserves.

It is necessary to have state and business reserves to ensure energy security and participate in regulating supply and demand when the market has unusual fluctuations. Countries around the world are currently actively increasing their petroleum reserves. In the US, the petroleum reserve volume is equal to 100 days of average consumption. Japan attaches importance to oil reserves to stabilize energy supply and to stabilize the market when the world market has price fluctuations or domestic prices increase unreasonably. Currently, Japan's reserves are equivalent to 173 days of consumption (92.08 million KL of petroleum...). In Vietnam, the petroleum reserve is only 35 days.55

According to information from the Ministry of Industry, Vietnam only has commercial oil reserves of petroleum importing enterprises with a total capacity of over 1 million m3 concentrated in Quang Ninh, Hai Phong, Ho Chi Minh City, Can Tho and Da Nang. According to the petroleum business regulations, enterprises must have reserves equal to 15 days of average consumption, so the amount of petroleum is continuously poured in and withdrawn, so it has no strategic significance.

In addition to the commercial reserves of enterprises, strategic reserves are formed according to Decision 93/QD-TTg of the Prime Minister on approving the " Planning for the development of the system of receiving warehouses, transit warehouses, and distribution warehouses of gasoline and oil nationwide until 2010 ". However, the above national reserves are only used in cases of storms.

55 Ministry of Finance website: http://www.mof.gov.vn/Default.aspx?tabid=612&ItemID=24839, looked up October 4, 2007

floods, natural disasters, force majeure events and have not met the goal of stabilizing the domestic gasoline price market for a long time. Therefore, in the long term, according to experts, Vietnam must consider planning, zoning, determining the goals and scale of national gasoline reserves in different stages (balanced with reserves in circulation); determining the reserve area; total capital and capital sources; assigning work among ministries and branches... Next is to complete the Regulation on management of national gasoline reserves 56 for the goal of stabilizing domestic gasoline prices, accordingly, it is necessary to pay attention to the plan to increase and decrease reserves, rotate gasoline in warehouses; plan to develop and modernize infrastructure...

The Ministry of Industry said that within the framework of cooperation between ASEAN+3 countries (including China, Japan and South Korea), developed industrial countries all believe that it is necessary to build a petroleum reserve system to ensure energy security of countries, to cope with negative fluctuations caused by the world petroleum crisis. Japan and South Korea have set up a program to assist other countries (including Vietnam) in building reserve warehouses.

strategic petroleum 57. Vietnam is also considering the policy of calling for investment.

foreign investors to invest capital and technology to build petroleum storage depots, because this field is still quite new to Vietnam.

2.3. Search for alternative energy sources.

According to the International Energy Agency (IEA), from now until 2030, the proportion of oil consumption in the world's total energy consumption will decrease to 33% (compared to the current level of 38%), during the same period, coal consumption will increase from the current 24% to 27%, renewable fuels can reach 8-9%. On the other hand, according to the IEA's assessment, in the absence of any major changes in current energy policy, the demand for

56 Regulations on management of national petroleum reserves, issued together with Decree 10/CP-TTg.

57 Vietnam Economic Times, February 2007.

World oil demand will increase from the current 85 million barrels/day to 118 million barrels/day by 2030, with the US, China and India alone accounting for more than 50% of total world consumption. Therefore, facing the risk of crude oil depletion, countries around the world, including Vietnam, are actively investing in research to find new alternative energy sources. Among them, some types of fuel such as biofuel, solar energy, wind energy, fuel cells, etc. are the most potential energy sources.

2.3.1. Biofuel

Currently, there are about 50 countries in the world exploiting and using biofuels at different levels. These are fuels produced from clean vegetable oils, ethanol (extracted from corn, sugar cane, cassava), biodiesel... Ethanol is a fuel extracted from plant sources, which was used for cars in the early 20th century. At that time, the oil refining industry developed rapidly, bringing gasoline to the top position. Thanks to its low price, large supply volume and many other conveniences of gasoline, alcohol was pushed out of the automobile fuel market. Now due to high fuel prices, in many countries the position of alcohol is being restored and this type of fuel is being considered a priority in the policy of developing renewable fuels. The production and use of biofuels reduces dependence on gasoline fuels, moreover, waste from biofuels is much cleaner than waste from traditional fuels such as gasoline, coal. 58

The world's trend of using biofuels is increasing. In 2006, the world produced about 50 billion liters of ethanol (75% used as fuel) compared to 38 billion liters in 2003, and it is expected to be 80 billion liters in 2012. In 2005, 4 million tons of biodiesel were produced and in 2010 it will increase to about 20 million tons of biodiesel, and by 2010 it will increase to 20 million tons. Brazil is the first country

58 Biofuel Development, Trade Magazine, No. 14/2007.

has been using ethanol as fuel on an industrial scale since 1970. All of the country's gasoline is blended with about 25% ethanol (E25), saving over $2 billion each year by not having to import crude oil. Currently, the country has about 3 million cars that run entirely on ethanol and over 17 million cars that run on E25.

Biofuel is one of the priority solutions in the energy policy of many countries in the world. This solution not only helps reduce dependence on petroleum but also promotes agricultural production, helps eliminate hunger and reduce poverty, increase employment, and increase goods for society. Realizing the importance of developing biofuel resources, the Ministry of Industry is developing a "Biofuel Development Project" until 2015, with a vision to 2020, with the goal of producing E10 gasoline (gasoline mixed with alcohol with a maximum alcohol content of 10%) and bio-oil to partially replace current traditional fuels. 59

Although our country currently has many successful research projects on biofuel production such as biodiesel production from soybeans, sesame, waste oil; production of 96% ethanol from sugarcane, corn, rice, cassava... even the quality of gasohol produced from industrial alcohol by Ho Chi Minh City University of Technology has been successfully tested on cars and motorbikes, meeting US standards. In addition, there are currently many factories in the Southwest region that have built or cooperated to process basa fish fat into biodiesel. However, Vietnam does not have biofuel standards yet, and is waiting for the State's policies and mechanisms to create motivation for this field to develop. Thus, the potential for developing biofuels in our country is quite large, but the important thing is to have State incentive policies to develop technology level, production equipment, and distribution system. Only then will the 3 existing problems be solved:

59 Nguyen Manh, Biofuel Development , Vietnam Economic Times, (July 31, 2007)

reduce dependence on petroleum, minimize environmental pollution and further develop the rural economy.

2.3.2. Solar energy

Solar energy is the energy of the electromagnetic radiation stream originating from the sun, plus a small part of the energy of other subatomic particles emitted from this star. According to estimates, this energy stream will continue for about 5 billion years. This is a valuable renewable energy source for mankind. 60

While traditional forms of energy, especially crude oil, are increasingly depleted, sunlight is considered one of the valuable energy reserves that can be replaced. Compared to other forms of energy, solar energy has the advantage of being clean, cheap, and almost endless. Therefore, it has been thought of and exploited by humans for a long time. The solar energy industry is booming and can provide 2.5% of the world's electricity needs by 2025 instead of fossil fuels - according to a report by Greenpeace and the European Solar Power Industry Association (EPIA). According to these two organizations, by 2025, solar energy will replace the annual electricity output of about 150 coal-fired power plants. Solar power systems currently provide 0.5% of the world's electricity needs and could increase to 2.5% by 2025, then skyrocket to 16% by 2040, the report said.

In the world, when oil prices tend to increase, some countries have invested in the field of solar energy research as a feasible and effective solution. Reality has proven that large electronics companies in Japan have been extremely successful in producing solar batteries. At the same time, the government of this country also subsidizes to encourage the application of

60 Vietnamese Encyclopedia www.vi.wikipedia.org

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