Metro Manila (CNN Philippines, October 16) — Senator Win Gatchalian has filed a resolution seeking to look into the oil and gas potential in the West Philippine Sea to reduce the country’s dependence on imports.
“Given persistent global energy shocks, it is important for us to ascertain the oil and gas potential in the West Philippine Sea for the country to have some level of stability and protection from the tumultuous geopolitical conflict in foreign countries that has severely impacted local energy prices,” Gatchalian said in a statement on Sunday.
Citing data from the Department of Energy, the senator said there are around 6,203 million barrels of total oil resources and 12,158 billion cubic feet of total gas resources in the West Philippine Sea as of 2021.
There are currently five petroleum service contracts in the West Philippine Sea, namely Service Contract 54 of Nido Petroleum Philippines Pty. Ltd. in Offshore Northwest Palawan, Service contract 58 of Nido Petroleum in West Calamian or Northwest Palawan, Service Contract 59 of the Philippine National Oil Company-Exploration Corp. in Southwest Palawan, Service Contract 72 of the Forum (GSEC101) Ltd. in Recto Bank, and Service Contract 75 of PXP Energy Corp. in Northwest Palawan.
The inquiry intends to push for exploration, development, and utilization of such reserves to achieve energy security and self-sufficiency.
“The lack of oil and gas exploration and as a result — the lack of indigenous oil and gas — have contributed to the country’s import dependence with 98% of petroleum products imported as of 2021 and lack of energy self-sufficiency,” Gatchalian said.
He also said the country’s energy self-sufficiency declined from 61.4% in 2011 to 51.15% in 2021.
Gatchalian said the country felt the adverse effects of dependence on imported fuel with the Russian invasion of Ukraine, which caused global crude oil prices to rise from $50 per barrel in January 2021 to $120 per barrel in March 2022.
In the Philippines, this translated to pump prices of gasoline increasing from ₱50 per liter to almost ₱90 per liter in June 2022, the senator noted.
Following a big-time price hike, oil prices are expected to rise again this coming week.
According to the forecast, oil companies are expected to raise per-liter prices of diesel by ₱2.60 to ₱2.80, and gasoline by ₱0.80 to ₱0.90.
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