MANILA, Philippines – The country is to become 60 percent energy self-reliant in two years with the full operation of the Galoc oil field in Palawan, President Arroyo said yesterday.
“It’s auspicious that we have this meeting today, because yesterday our new Galoc oil field started pumping oil to what we believe will double our crude oil production in our country,” she said in her speech at the Economist Conferences’ Business Roundtable at the Dusit Hotel.
Mrs. Arroyo issued the statement as production in the Galoc oil field off Palawan began on Thursday with an expected yield of 22,000 barrels of oil per day. The Galoc Production Co. operates the well.
She said the country’s energy independence increased from 41 percent in 2001 to 58 percent this year, “the highest in our history.”
The President said the government continues to implement policies aimed at further reducing the country’s dependence of imported sources of energy, particularly oil.
“The greater use, not only of oil exploration, but of geothermal, biofuels and renewables… we expect to attain 60 percent energy independence in two years,” she said.
The oil well will produce an initial 17,000 to 20,000 barrels per day in the first 90 days of operation. This will account for about six percent of the daily local demand of 300,000 barrels. The Galoc production, combined with the current oil production in other wells in the country, will be over 30,000 barrel of oil per day, accounting for about 10 percent of the country’s daily oil consumption.
This is the first time that an oil field has been developed since 1992, officials said. The Philippines imports over 95 percent of its oil needs.
Officials classified Galoc’s yield as “light medium crude oil” suited for gasoline production. The Galoc oil will be known as “Palawan Light.”
“The President is optimistic that this new development will positively impact on the administration’s efforts to reduce the country’s annual oil importation of $6 billion, and in turn will also contain the increasing cost of food and other commodities,” Executive Secretary Eduardo Ermita said on Thursday.
He said the oil production will also translate to about $1.4 billion in foreign exchange savings for the country oil well’s lifetime of about three to five years.
Senators welcomed the new oil find but said the government should continue looking for alternative fuel. – With Aurea Calica, Ted Torres, and Delon Porcalla