Philippine petroleum industry

Of all energy sources, liquid hydrocarbon, a form of fossil fuel, occupies the biggest portion of the Philippine energy mix, largely because of its tremendous varied and efficient utility. It is singularly the most important component of a nation's economic structure, so that the exploration and development of one's indigenous source of crude oil is always a primary undertaking in any country. The Philippine consumption of crude oil is 325,000 bbls per day valued at 172 million pesos. What exactly is crude oil and what is the prospect of the Philippines as a producer. In the Philippines, oil exploration began nearly 100 years ago, but it was only in 1975, under a newly introduced service contract system, when the first significant oil find was made. With full government support, two other oil fields were subsequently put on stream, which, at its peak supplied 20% of the national daily crude requirement. In 1995, however, the country's oil production dwindled to a dismal 800 bbls per day, equivalent only to 0.2% of our daily needs. Several factors contributed to the current poor performance of the oil sector, foremost among which is the drop in financial support from the capital market. Only sustained investment in this capital intensive business can lead to the discovery and development of new oil fields. (author)