Arroyo vows to reduce RP’s dependence on crude oil

President Arroyo vowed yesterday to free the country’s energy needs from being "held hostage" by the vagaries of world politics and economics.

In a speech before the Philippine Rural Electric Cooperatives Association (Philreca) at the Philippine Trade Training Center on Roxas Boulevard, Manila, Mrs. Arroyo announced plans "to build upon" the gains she started in her first term and achieve "energy independence."

In the five-point "energy independence and savings" reform package she unwrapped yesterday, Mrs. Arroyo sought to decrease the country’s reliance on imported crude and to tap into indigenous sources of energy like natural gas, coco-diesel, and geothermal, wind and solar power.

"We need this reform package for energy savings and independence because we’ve always been dependent on imported energy and therefore vulnerable to the vagaries of global politics and economics, particularly events bearing on oil supply such as war, terrorism and currency fluctuations," she said. "We should not be held hostage to these conditions."

Mrs. Arroyo said her "initiatives will significantly reduce our energy importations" and "lead to 60 percent energy self-sufficiency for the Philippines by 2010."

But with the prices of crude oil going up to "historic highs" of $40 to $45 per barrel in the world market, Mrs. Arroyo’s reform package was a mixture of short-term and long-term measures.

The first measure — to be carried out principally by the state-run Philippine National Oil Co. and its subsidiary, the PNOC Energy Development Corp. (PNOC-EDC) — involves the promotion of oil and gas exploration and the transformation of the country into "the number one geothermal energy" producer in the world.

"We must develop and actively promote oil and gas exploration," she said. "The PNOC—EDC will be upgraded to improve success rates in discovering new oil and gas reserves."

The aggressive development of "renewable energy potentials," such as solar and wind power, was the focus of the second measure.

In her third measure, the President proposed the displacement of traditional refined petroleum products such as diesel and gasoline by "alternative fuels" such as natural gas and coco-diesel.

"We can significantly reduce our dependence on oil imports by making natural gas our fuel of choice. It’s not only indigenous. It’s also cleaner fuel," she said.

The President cited the introduction of compressed natural gas in some buses this year as a step in this direction and vowed to "ensure that natural gas-powered buses will start plying the major routes in Metro Manila up to Calamba City in Laguna, by 2005."

The plan to have 60 percent of Metro Manila’s projected 1,500 buses run on natural gas by 2010 parallels another program to "blend" coco-diesel in the "diesel requirement" of vehicles.

A fourth measure being eyed is the formation of "strategic alliances" on energy.

"Energy independence also comes in the form strategic alliances with other countries, particularly our long-term energy partners like Saudi Arabia, our ASEAN neighbors, China and our new partner Russia," she said.

The President also cited a proposed partnership with Thailand to use the former US naval fuel storage facility at Subic Bay as a "regional" storage facility.

The President capped her energy independence package with a measure calling for a nationwide efficiency and conservation program to be spearheaded by the DoE.