Philippines Fully Promotes Energy Self-sufficiency Strategy

In the past two years or so, international oil prices have continued to remain at high levels, which has undoubtedly made it worse for the Philippine economy, which relies on imported crude oil. In order to reduce the threat of high oil prices to the Philippines and revive the economy, the Arroyo government is making every effort to develop new energy sources to achieve an energy self-sufficiency strategy.

The Philippines has very few oil and gas resources and mainly relies on imports. Annual crude oil imports are approximately 126 million barrels. Philippine Energy Secretary Lotila said: "For every US$1 increase in world oil prices, the Philippines' foreign exchange reserves will decrease by US$126 million." Experts predict that the world's demand for energy will continue to rise. Currently, the global demand is equivalent to about 2.2 US dollars per day. billion barrels of oil energy will climb to 335 million barrels by 2030. In order to achieve Philippine energy independence, the Philippine government has formulated an energy self-sufficiency strategy and strives to achieve 60% energy self-sufficiency in 2010.

First, focus on jointly developing oil and gas resources in the waters of Palawan, Sulu and Cebu with Japan, the United States, Australia, China, Malaysia and other countries. Secondly, strengthen cooperation with oil-producing countries Saudi Arabia, Russia and some African countries to develop the oil and gas resources of these countries and ensure the Philippines' oil supply. Third, gradually transform the energy consumption structure. The government will greatly reduce the proportion of crude oil used, and by 2010 at least 25% of petroleum will be replaced by biofuels. The government will vigorously promote the use of compressed natural gas and liquefied petroleum gas. Recently, the Philippine Congress passed a bill on bioethanol, biodiesel and other biofuels, which aims to increase the use of alternative energy and ensure that new energy enjoys zero value-added tax in the form of legislation. The bill clearly stipulates that fuel additives such as 1% coconut oil and 5% ethanol will be added to gasoline, diesel and other fuels. The government will also increase the proportion of natural gas, wind, solar and geothermal power generation, and ultimately achieve zero oil power generation. At the same time, we must reduce oil imports through energy efficiency improvements. Fourth, vigorously develop renewable energy. The first is to attract more investment and build the Philippines into the world's largest geothermal energy power generation country. The Philippines has many volcanoes and rich geothermal resources. At present, the total geothermal power generation capacity is 1.931 million kilowatts, second only to the United States, which can meet 21% of the Philippines’ electricity demand, ranking first in the world. The second is to invest in the construction of a biogas power station with a power generation capacity of 30,000 kilowatts. The third is to fully promote the development of biofuels. The Philippines is located in the tropics and is an agricultural country. It is rich in plant resources and can replace oil with agricultural products. President Arroyo called on local governments to raise their own funds to plant Jatropha at the National Vice Mayors Alliance Conference on April 29 this year, saying that Jatropha is the most perfect substitute for biodiesel in the future. The Philippine government has allocated 500 million pesos to research, develop and produce Jatropha biodiesel, and the Philippine National Petroleum Corporation and the Philippine Forestry Corporation have experimentally planted 5,000 hectares of Jatropha in East Negro Province.