Did you know that they have struck oil in the Philippines? It’s true, it happened 11 days ago, in an area west of Palawan Island. Currently, they are pumping between 18-20,000 barrels per day of what they are calling Palawan Light Crude. As far as I know, this was the first attempt at oil exploration in the Philippines, and it’s a success! Twenty thousand barrels per day is not a huge amount of oil, based on worldwide standards, but this is the first attempt at pumping oil in the Philippines, and that amount is nothing to sneeze at either!
Over the years, there has always been speculation that the Spratley Islands has oil reserves, but since the Spratleys have always been in contention between a number of countries, so far, nobody has even attempted to exploit the reserves there. For those of you who don’t know, the Spratleys are a group of over 100 islands, islets and reefs that are west of Palawan, and are currently claimed by The Philippines, China, Taiwan, Vietnam and Malaysia. From time to time, each of these countries places a contingent of military troops on the islands to push it’s claim of soveriegnty. But, so far, nobody has been able to take sole control of the Spratleys. By the way, the Philippines calls the Island group the “Scarorough Reef.”
But the Philippines is not drilling in the disputed area, it is actually just drilling within undisputed Philippine waters, in that general area. Right now, the goal of the Philippine government is to become 60% energy independent by the end of 2010. Imagine, if things like wind power, solar and hydro power were added to the mix, I firmly believe that the Philippines cold be at least 80% energy independent within 5 to 10 years (provided that the oil fields continue production over this amount of time).
In addition to the current oil production, and the Spratley Islands possible future production, ExxonMobil is expected to start doing some drilling in the Southern Philippines by mid-2009 as well, although I do not know the exact location.
One thing that kind of surprises me is that this discovery of oil, and the ongoing production seems to be rather low-profile! It would seem that the Philippines would be playing this up and “making hay” with it. Good publicity is always a good thing, and it would seem that the country could really get some good publicity from this event.
The first shipment of oil from Palawan is expected in Manila in the first week of November. Perhaps when it is delivered there will be a big publicity event. I would imagine that the President will be there to meet the first oil tanker arriving in the Nation’s Capital. Wouldn’t you if you were President?
With these kinds of activities already becoming an reality, can you foresee the day when the Philippines could become an oil exporting country? Can you imagine the Philippines actually becoming a wealthy nation? How would that affect your plans to live here? It would make the place an expensive part of the world to live in. Personally, I don’t think that will happen, but with the current success near Palawan, I am quite excited that the Philippines could be looking at a real plus for it’s economy, and a success, which is something that is rare here, it seems.
Hi Bob,
I would suspect it is a multinational company doing the drilling, in which case the oil will be sucked out, sold on the world market, a few filipinos will get very dangerous unskilled work on oil rigs with the big bucks earned by expats, the corrupt government will rip off the royalties and the profits will go offshore. My fear would also be that the waters around Palawan could get trashed in the process – I doubt the government will be strong on environmental impact studies or forcing the oil companies to adhere to environmentally sound practices. Maybe that is why there has not been much publicity.
Sorry to be negative but this is not being done for the benefit of the Philippines.
cheers,
Michael
I'm sorry to start this proactive blog today on a negative note but despite my loving it here I think the level of corruption in this Country would hinder the Philippines from ever becoming great in anything including energy independence. I correct that.. The Philippines is great at exporting its hard working workers to serve in other countries often in poor conditions and at slave wages. If not for those workers the Philippines would be economically a 4th world country and mirred in revolution. I am actually somewhat nervous at what the world economic crisis still holds for us here. Sorry to get detracted from the subject at hand
Hi richard- Yes, corruption is one of the big downsides of the Philippines. I think that it is improving a bit, but still a huge problem, and it is something that will certainly hold back growth, there can be no doubt on that. I don't know what the path is to putting an end to corruption, there is no clear way to stop it.
Hi Michael- Wow, this is something… so far, both of you who commented are quite negative on this. Not me, I feel it is a real positive development for the Philippines. The company who is doing the drilling is a Singaporean based company, Galoc Production Company (www.galoc.com).
like the in the movie "Blood Diamond" when the old african walking out of a recently destroyed village over diamond wars says " If they ever discover oil here were REALLY screwed". Count #3 Bob…just another venue to exploit economically by those empowered.
Just looked at my chart (not sure how old this chart here is): The actual Spratly island is about 300 miles west of the southernmost tip of Palawan. The oilfied is about 60 miles west of the northern tip of Palawan. The area is actually marked as a restricted oil and gas field. I traced the pipeline from here and it ends in Batangas Bay. Here is what is stated in my chart:
PIPELINES Gas from a damaged oil or gas pipeline could cause an explosion or some other serious hazard. Pipelines are not always buried and their presence may effectively reduce the charted depth by as much as 2 metres. Where pipelines are close together, only one may be charted. Mariners should not anchor or trawl in the vicinity of a pipeline; they may risk prosecution if damage is caused. 🙂
Hi Bob,
As a Filipina, I am so glad to hear that news. I just wish the Filipinos will get something out of that….
Lea
Hi brian- I find it interesting that everybody seems to be so negative about this discovery of oil in the Philippines. To me, it is great news for the country and it's people. I guess we are looking at it from different angles.
Hi Ellen- Thanks for sharing your research. Indeed, the location that you point out is right on!
Hi Lea C. Walker- I think that even if there is not a huge monetary gain, it is a reward for the Filipino people just to gain some independence from the oil countries.
i'm a bit nervous about this. only because it has oil drilling & palawan in the same sentence. i consider palawan a jewel of the country & needs to be preserved. i'm still trying to find any article on the environmental impact. hopefully it is minimum.
i'm with you on including other alt energy like wind & solar for energy independence. hopefully, with a new administration coming in in 2010, everything tilts the right way with minimal damage & corruption.
Hi macky- I do understand concerns on the environmental impact, that is something that I am sure all of us would hope is preserved. And, I agree that Palawan is sort of a last frontier, or environmental jewel of the Philippines. As a matter of fact, when I typed in "last frontier" it made me think of Alaska, which sort of has that same status in the USA, yet is also an oil/gas area.
Hi Macky, yes we got messages from friends that Palawan is very nice. They have circumnavigated the island and said that they will do it again and again!! We have cruised in American waters with oilrigs, other than ensuring we stay far away, it didn't seem to affect the neighbouring islands. But then again, US is more stringent? 60 miles is very far, and visually, it shouldn't affect the panoramic views from Palawan, but the environmental impact of oil spills may affect the shoreline in no time.
Hi Ellen- I wonder, does anybody have any information on the status of the cleanup of the oil in Guimaras from the spill last year? There seems to be no follow up in the media on this, and I wonder if it was successfully clean up, or if there is still an impact on the environment of the area.
Maayong Buntag Bob
Sorry to say that I also feel this is bad for the RP. Gold mined from the RP propped up Marcos for many years and oil could do the same effect with the present administration.
The media is mum on the oil spill but cleanup is still ongoing and expected to last into 2009. I always suspected there was oil in Palawan, and I suspect there is oil in the Sulu islands as well. The Philippines has yet to tap their oil resources. I can't say I'm pro or con on this issue. It's great they are pumping oil finally but does the Philippines have any refineries? If they do build a refinery will it be built to international standards? An oil refinery explosion is about the worst thing you will ever see.
Hi Larry- Maayong buntag pud. I am pretty surprised by the reaction to the oil discovery. I wonder, and this is not just for Larry, but for everybody…. are you guys basically saying that anything that would bring wealth to the Philippines is pretty much to be considered negative? How will the people in the Philippines ever get ahead in life?
Hi BrSpiritus- The Philippines does have oil refineries, and has for decades. I believe the oldest refinery in the Philippines is the Filoil refinery, which has been operated since 1962. In addition, Caltex, Petron and Pilipinas Shell have refineries in the country. So far, as far as I know, there have been no major incidents at any of the existing refineries.
Bob
I honestly do not know how the Filipino will get ahead or pull them selves out of poverty. They already have a lot of resources like copper and gold that are being mined but this does not seem to help the economy. The Filipinos are very talented and hard working employees but due to the difficulties setting up a factory in the RP and the taxes you do not see much manufacturing coming to the RP. I have been watching the GDP per capita in the RP through the CIA fact book and the GDP per capita keeps going down at an alarming rate. So all I can say that I do not know what will bring prosperity to the RP.
Bob, I would agree with you that this should overall be a good thing for the people of the Philippines. Will there be massive corruption involved? Of course! Will some people get very rich because of this? Of course! Is it possible that there will be some enviromental damage to Palawan? Of course, but unlikely. Will this move the Philippines from a 3rd world country to a 2nd world country, or dare we dream..a first world country? Of coure not! However, overall, I feel this is a positive for the Philippines and its people.
just my two centavos worth.
Hi Larry- I agree that there is A LOT of corruption, even violence associated with the mining activities in the Philippines. There can be no argument about that. I live not too far from the location where much of the mining takes place, and I know some people involved in the industry too, so I can certainly say that you are 100% correct on that. I suppose there is no reason to feel that the oil industry would be any different either.
Hi Gary- Finally, I have a brother in arms! 😆 It was starting to get a little lonely out here in the wilderness! I do agree on all of the points that you raise – nothing is going to be perfect, or even close to perfect. We can only hope that more and more incremental changes will come from things like this, and that these changes will eventually lead to real change in the way things operate here.
Hi Bob,
In response to your question "are you guys basically saying that anything that would bring wealth to the Philippines is pretty much to be considered negative?" I think your assumption that a foreign owned company extracting oil from the ocean floor will bring significant wealth to the Philippines is incorrect. I also think you are mistaken when you say "it is a reward for the Filipino people just to gain some independence from the oil countries".
The oil company and the oil extracted is not owned by the Philippines. It will pay some royalties to the government(read corrupt politicians) but sell the oil wherever it pleases, even if there is a shortage in the RP it will still sell to the highest price. In a world oil shortage other countries like China will outbid the Philippines and they will take "your" oil. The profits from all this will go to the foreign oil company not the filipino people. The local multiplier factors like employment, support services etc will be negligible because it is all offshore – the rigs are towed in and workers on these rigs normally are flown in and out.
Bob resource companies are like locusts – if not strictly controlled they will rip up the country, take what they want and walk away. I am very afraid that this is what will happen to the Philippines where corruption will ensure that the cheapest and environmentally damaging options are taken.
I am all in favour of real wealth creation for the Philippines but not its exploitation for foreign interests.
Hi Bob,
I have to say I am of mixed mind about this too, Bob. I never knew you were so enamored of the Bush/Palin Doctrine … "Oil and Drilling solves everything". I am actually very worried and a bit sad about this news. It may provide a short term stream of wealth to a favored few, but overall it's horrible news.
We, as a people, no matter what our country, need to get off Fossil Fuels today … not tomorrow, not ten years from no, but right now, this minute. The discovery of marketable oil in an environmentally sensitive region is about as good news as an alcoholic discovering a bottle of vodka … it perpetuates and exacerbates the problem, big time.
The Philippines already leads the world in commercial use of it's abundant geothermal power (virtually 100% environmentally sound), is just now starting to discover that agriculture through sugar and oil crops can deliver top quality motor fuels from disused fields and poverty stricken farmers, and has barely scratched the surface of it's most abundant resource … the sun. Oil production from the Spratley's will be a very, very bad thing … but do we, as citizens of the world, have the courage to look past tomorrow?
There's a great movie out there called "Blood Diamond", an action movie that is also a political statement regarding the tremendous human suffering in Zimbabwe and other African nations caused by 'diamond wars' as everyone scrambles and murders to get his 'peice of the pie'. Near the end of the movie, two old Zimbabweans talk to each other about the tragic fact that most of the vilomnce and suffering had actually been perpetrated by their own countrymen, niot the foreign buyers financing the trade.
Said one man to the other. "I guess we should thank God that they didn't discover oil here too." And so opine I.
Hi Michael- I don't think that either one of us knows the particulars of the deal between the company pumping the oil and the Philippine Government. What I do know is that the oil will be shipped directly to Manila and refined in the area, thus putting Filipinos to work (both in the pumping operations and the refining).
What I do know is that whether the oil taken is used for Philippine consumption or Exports, it will benefit the Philippines – either in terms of fewer imports of oil, or in terms of providing additional capital for the country. I see it as a net plus. I never said that it would bring "significant wealth" to the Philippines, I said that it would bring wealth (maybe an insignificant amount of wealth!), and that it will.
Hi Dave- Firstly, I have no intention of letting this veer into a debate over the US election, so let's leave that alone. There are plenty of sites for US political talk, and this is not going to be one of them….
The fact is, Dave, it is impossible to stop using oil today as you say. If they pulled all oil from the market 5 minutes from now, we would be in a world of hurt. Yes, I support moving away from fossil fuels, but the world would be in a very painful place if all oil stopped flowing in 5 minutes. You say not even tomorrow is quick enough? Get real. For one thing, even if an alternate source were available immediately in unlimited quantities, it would take time to convert all of our machinery, cars, etc. If the local gas station in Marilao stopped selling gasoline and diesel at noon today, and only offered LPG for vehicle fuel, what would you do? I doubt that you could have your vehicle up and running on LPG that quickly.
As for agricultural crops for fuel – I thought we all learned a hard lesson about that when prices of food spiked sharply earlier this year? I think that there is no silver bullet, it is a matter of finding balances, and the proper mix. Oil will likely have a place in that mix, but much smaller than it is today.
You know, every area in the world is environmentally sensitive in some way. Have you stopped driving yet? If not, you are contributing. I readily admit that I am.
Hi Bob,
Yes you are correct that there will be some positive benefit and I guess there is nothing that will stop it going ahead. I have some knowledge of the how mining agreements run and you can be sure that the oil company owns the oil once it comes out of the ground.
On a related issue if they want oil independence maybe the Philippines could go back to nuclear – get Westinghouse to fire up that old $2.3 billion nuclear plant Marcos built in Bataan. I understand it has been inspected by the government this year to ascertain whether or not it can be rehabilitated.
Now that is environmentally real scary seeing it is apparently near a volcano and within 25 miles of three geologic faults.
Hi Michael- I don't question who owns the oil, but the real question is – what did they have to do to get that ownership? How many jobs do they need to provide? How much did they pay the Philippine government? Did they agree to sell the oil only in the Philippines? There are many questions, and neither of us knows the answers, I'd guess.
Regarding nuclear, I think it can be done safely. France is a heavy user of nuclear, and has not had negative events associated with it. Now, I am not commenting on the Philippine nuclear plant, because I don't have enough information at this time to comment on that. Energy has to come from somewhere, and nuclear is generally one of the cleaner methods of obtain it.
Is it just me, or is it getting hot in here? Can somebody turn on the aircon? 😆
Hi Bob
The field you mentioned is producing only 6% of the daily oil needs. It is a small field so will only last for a few years (not sure how many though). Exxon is not planning on doing any drilling, only test drilling or exploration in potential areas, which considering the big drop in oil recently they may delay that. They could easily come up with a dry hole.
When you mention wind power and such that will only provide for electricity and costs more then using coal. You will still need fossil fuels to power transportation. I do not not believe they will get to 60-80% local energy mix when you combine in transportation fuels. In the U.S. we have been talking about that for over 30 years and being promised by both our presidential candidates which is not going to happen anytime soon and especially with both their plans.
Hi neil- Ha ha… they've only been drilling a few days now, give them a chance! Let's face it, there is no solution that will provide 100% of the needs. However, if you open up 10 fields in the Philippines that each provide 6%, suddenly you are covering 60% of Philippine needs! Also, there is no way to know for sure yet how many years the field can remain active. That remains to be seen.
ExxonMobil has plans to do some test drilling in the south. That generally would mean that they have something that is telling them that oil is a possibility in the area they intend to drill. Sure, it could come up dry, but any kind of business involves risk, that is nothing new.
HI Bob! Talking about oil (this was just on the local news last night), there is a family in Alabel that dug up fuel (not sure what kind) instead of water since 1996. It still comes out as water but has a red tint to it and lights up when a fire or match is put next to it. The family has converted it into LPG-like fuel for their stove.
Hi Cathy- Interesting, I had not heard about that! Have there been any tests done to find out what it is?
The news feature said that there had been tests but that the depth has not reached the oil yet.
Hi Cathy- Hmm… it's something to keep an eye on!
Hi Bob
I believe this is a positive for the Philippines. Possibly they could be less dependent on foreign infleuence.
Hi Dan Mihaliak- That's my thinking too. I don't really see a downside to it.
Hi Bob,
Its not hot here 😆
What can I say?
After looking over the press releases the philippines government seems to have negotiated a good deal on this one.
I too have mixed feelings. I've never been to Palawan, but I know what a jewel it is. I think it's most likely a net plus – provided the environmental impact is negligible.
Hi Michael- I am not 100% sure either, because I haven't seen the agreement. From what I have seen, it seems like a good deal for the Philippines.
Hi Gary- The way I look at it, I don't think that a single one of us never uses petroleum, so the oil has to come from somewhere. When the day comes (if it does) when we don't need to use oil any longer, all the better. We all complain when oil is expensive. Prices decline when there is more available on the market. So, it's the right move at this time. Hopefully! 😉
I can't disagree – I grew up near all the refineries in LA between LAX and the harbor. In fact, in a higher res of my photo you can see smoke stacks behind me.
Hi Bob – While I'm not cynical, I do lean a little toward skepticism. 😉
The folks "back home" have experience with a new-found source of energy – clean, green power generated by the Northwind Power Development Corporation's (NPDC's) windmills in Bangui, Ilocos Norte. Their power lines run in front of our house (and some of our mango trees were trimmed into nubs during construction, but that's another story!), transmitting green power to the provincial capital of Laoag.
While the windmills generate enough power to serve 40% of the households of Laoag (this "benefit" plus "power for other municipalities" were touted as project benefits during initial proposal phases), in reality most of the power is consumed by government agencies (provincial and LGU) in the capital and by the nearby resort Fort Illocandia. The "people's power" continues to be provided by the Ilocos Norte Electric Cooperative (INEC) via the same, ages old infrastructure (complete with brown-outs).
There seem to be endless promises made to the people when projects are in the planning and acceptance/authorization phases. Somewhere along the line, they turn into the average political promise that may or may not be realized.
For the oil, I hope things will be different, but for now, can only say, "Champagne wishes and caviar dreams!" 🙂
Hi Gary- I spent part of my childhood in Louisiana, which is also a major oil refinery area, so I know what you mean!
Hi Paul- I hear you. I actually was thinking of writing about the Northwind project the other day. 😆
The thing is, even if Government offices use the power, it's a savings for the people. The people pay for the government, and thus, hopefully it's a bit less that they have to pay. Still, though, I understand what you are saying.
The savings somehow get spent elsewhere (fleets of Mercedes, etc.) 😀
Hi Bob,
I have been following "Lip" for quite sometime now and I enjoy reading your articles and commentaries. Regarding this article "There's oil …", I'd like to point out that this is not the first time oil was found and produced in the Philippines. The first one is also in Palawan west north west of Puerto Princesa about 75-miles offshore called "Nido Field". It was run and operated by "Philippines Cities Service" in Partnership with Cities Services (CITGO) in the mid 1970. Production didn't start till I think 1979. There were 2-well platforms (A & B well), a production plaform (AP Plaform) and a storage tanker "S/S J. Ed Warren" moored to a "Single Bouy System" at the stern of the tanker. At its height, the field was producing 35,000 to 40,000 barrels of oil a day. When the tanker is full, a tanker will come from Manila and oil was transferred to the other via " a tandem system" Bow to Bow during rough seas and along side during calm seas. I beleive the first oil delivery was made in 1979 and was taken to the Batangas refinery. I know, I was there from 1979 to 1983 when I left for the USA. Also in the early 1980 a second oil field was discovered in the "Matinloc Field". I don't know what ever came of it since after I left. You mentioned that the new oil field is west of Palawan. Could it be the same oil field where "Nido Field" is? I wonder.
I hope to visit Davao before I retire and check the place out. Visit some relations who lives in Davao and Kidapawan and maybe have a change to meet you.
Keep up the good works and more power to you. Take care.
Hi Paul- You mean those fleets of Mercedes must be paid for? 😆
Hi Jun Trinidad- Nice to meet you, and I'm happy that you've enjoyed the site! Thank you for sharing all that information, it's very interesting. I believe that the current field is a different one than you mention. The current field is further north than that.
Thanks again for your comment!
Hi Bob,
I’m also in the positive side on this recent oil exploration in Palawan. I look at it as one of the sources to sustain ‘a little bit’ the problem of the Philippine economy and employment. In my opinion, hazards to the environment are the alarming concern here not corruption. I only hope that DENR has implemented all the necessary measures to prevent environmental damages. However, I can’t imagine the Philippines will become a wealthy nation in the near future, not in my lifetime, whilst I don’t either foresee its degradation to become a fourth world country.
Hi Teng- I think that our views are pretty closely aligned. My primary concern would be environmental, but I think that can be kept safe. I hope that it can all have a positive impact on the Philippines.
The Philippines is rich in natural resources – Copper, steel, Gold, Oil, and an English speaking population. Unfortunately it is not the Filipino people that benefit from these. Mining and drilling rights (also the now expired parity rights for the US) are always sold to foreign nations like China. There is no reason for the Filipino people to be poor. Remove corruption and you can really see a wealthy country. The distribution of wealth is top heavy. We need Obama to ran for Philippine presidency instead of the US. It's good for the Filipinos if he spreads the wealth there instead.
Hi Bobby- Yes, the Philippines really is resource rich. I am not one who generally likes "spreading the wealth" around, but in many ways, it seems that something along those lines is needed in the Philippines.
better turn the air con up …way up Bob !!!!
………say what about that hockey game last nite guys???????
PS about 10 yrs ago I was in the RP, had heard about Yashitos gold being found in the RP ect …thought it was a nice "story". I was with a buddy of mine who ran a dive shop, this canadian girl was taking lessons there…we meet her father a few days later at the Hyatt (maybe marriot i can't recall the exact name of hotel) in Manila on the bay overlooking bataan pnsl..(..he had been lodging at the Hyatt Penthouse for several months…paid for by one of the politicians…he was highly educated and was there to assist in finding the gold which he said during dinner he had found some of it and was looking for more. I asked if this was a govt. sponsored endevor…he avoided the answer…which indirectly answered it for me.
Hi brian- I thought that over the past few hours it has cooled down quite a bit! 😆
Hi brian- Ah yes… there are so many tales of Yamashita's Gold… it is hard to keep up with them all!
Been a long day. I ask you this in only the kindest of ways. You obviously love the Philippines very much and have made it your home for life.For the short amount of time I have been on this blog you write great and interesting stuuf but it always seems from the positive side of things. Many of us are new visiting or living here and see a country full of huge problems and complexities. Of course many good things as well. I am just wondering if you ever leave the country for a month or so each year to take I guess if you will call it a vacation. I always leave wherever I happen to be living for a vacation to have fun somewhere else and when I go back home I feel so lucky to be back or I have some reservations about things due to something that opened my eyes elsewhere. The ability to be more objective about things and erhaps learn something that helps me become better or not.
Sometimes when I go to Europe I see how barbaric and uncultured America can be and how unhappy people are there for the most part despite all they have. Of course Europe has its faults as well. But I like to go there for that cultural element for sure.
I personally find the Philippines very challenging and have not yet decided to stay here permanently or not. Environmental destruction is a primary reason and massive corruption is another. I might like to here your viewpoints in this blog on some of those issues. Also about the vacations. thanks lots….
Hi richard- No problem on the questions, I don't find it mean or offensive at all. Actually, if you think that I only write positive things about the Philippines, hang around and read more. Go back in the archives, I have written a lot of things that I see in the Philippines that are negative, and need to be changed. Sometimes I get raked over the coals by readers for being too negative. That said, I would agree that lately, I've been writing mostly positive observations about the Philippines, I guess I've just been in a good mood, and not experiencing too much negative stuff. Last night, I had a rather negative thing happen at a place where I visited, and I may write about that, haven't decided yet.
I have lived in the Philippines for about 8 1/2 years now, and in that time I have never left the country. I really don't have much desire to go back to the USA where I am from. I do travel a lot, but mostly in Mindanao right now. I have visited every province on the Island of Mindanao, and I love it. I will expand out and visit the Visayas and Luzon in years to come. Before moving to the Philippines, I have traveled much of the world, so it could not be said that I have been isolated or un-traveled. I lived in Africa, the USA and the Philippines. I have traveled to Europe too. Right now, I am having a very good time discovering the Philippines, though, and for every bit that I discover, I find that there is a lot more to visit too.
Believe me (go back and read the archives) I have blogged about many serious challenges of living in the Philippines. But, when I have covered those things so many times, it is hard to re-write the same experiences too many times, and sometimes readers tend to get upset if I repeat articles about the same experiences to much.
Please be aware that it is not easy for a foreigner living here to blog about massive corruption, especially to relay things we have seen or experienced. If I blogged about that, I would probably be deported pretty hastily. If you haven't lived in a place like the Philippines, it may be hard for you to understand that. But, it is reality, and foreigners get deported from here every day for less. My viewpoint about corruption is that I don't like it, but don't expect me to go into detail about it, because I live here, and I want to continue living here.
I have also written extensively on this site about my many trips around the Island of Mindanao.
Hi Bob. I agree with you on the energy independence phrase.
The wealth accumulation part is probably controversial because as we all know the price of oil is not controlled by any one entity but by world markets. Any country that sell oil locally at lower price (even locally-produced oil) than what's the world markets dictate just invite trouble later. The Philippines has other better avenues in producing weatlh other than oil productiion.
The Philippines is I think at the right track with proliferation of 'green' sources of energy and partnering with other countries to do this (Germany, Spain, France, etc). There is really a possibility to be energy independent in intraland use. Nuclear should be part of the mix.
In the immediate and the distant future though, the Philippines need oil for interisland transport. But that should be a very miniscule amount hopefully in the future.
Then again oil dropped to $67.90/barrel just right now…..it's a wonderful world….it's full of wonders.
If the Philippines were able to find a significant amount of oil, it would help the country's international trade balance. However, I fear this kind of weath would be a burden on the common people due to inflation. Politicians in a corrupt country all have their greedy hands out and tend to spihon off most of the prosperity. Oil wealth causes prices to rise but the ability of the poor to purchase commodities remains the same. Nigeria is a classic example of what happens when oil wealth is improperly distributed.
WoW!! Interesting, and provocative discussions! I just hope this oil discovery will not have the same environmental impact as what happened to my Island Marinduque due to the mining industry. My 2 cents worth-it will have a minor positive effect on the Philippine economy short term, but long term will hopefully be more positive, if oil explorations continues in other parts of the islands. Cheers to ALL and Happy Discussions!!
Hi Bob,
" If my fairy god mother wil grant me one wish, it will be to eradicate/abolished/phase out all those dirty TRAPOS(politician) who have nothing else to do in the govt but use the countries money/people for their own/familys prosperity.and it should start from the very very top. AMEN
Hi Dr. Sponk Long- I agree that the Philippines will not get wealthy from this, unless it happens that a lot more oil is discovered. I mostly asked that question to see what others would say. I agree that a real mix of energy sources is needed for the Philippines.
Hi David S.- It likely would indeed be inflationary. In some places, though… for example, Alaska, the people get direct payments from the government's oil revenues. Something like that could be really good for the Philippine people.
Hi David B Katague- mining has also been a scourge on the Mindanao environment,a nd I sure hope that the discovery of oil would not follow the mining example!
Hi CRIS- I'm with you, my friend.
Bob,with regard to stories about Yamashitas gold we have another plan announced to bring riches to the Philippines – the raising of the Japanese battleship Musashi – I understand a Swiss company of all things has offered to salvage the ship to make it a tourist attraction! In my country this would be regarded as a war grave and could not be disturbed.It weighs 70000 tons and is in 1300 metres of water, nothing like this has ever been done and I am sure the Swiss company would be glad to spend lots of other peoples money to prove it cannot be done. Why do absolutely farcical schemes get taken seriously in the Philippines when they would be a cause of laughter elsewhere?
Hope to be back in Manila soon – health is almost back to normal.
Bryan G.
Hi Bryan Gallacher- Haha… somehow I am not surprised! Seen too many of these kind of things to be surprised anymore! Thanks for sharing this, and good luck in Manila!
My apologies for mentioning two political figures. A mistake I regret making. My thoughts on our world's dependence on fossil fuels transcend any political party's candidates and policies and I apolofize to any whom I have offended. This has nothing to do with any election and I erred in bringing that subject up .My bad.
I am bemoaning the fact that _no_ party in any country I am aware of seems to have thought the energy issue through very well.
Bob I never said we would or even coluld stop using oil today. We of course can't stop using oil today or tomorrow.
What I said, and what I mean to say is unchanged. We need to start using and promoting alternative sources now, not advocating and even applauding more drilling, which is last century's :"solution".
Can we stop using oil today? But can we stop exploring and drilling for more oil today? Absolutely. Why increase the supply of what we all know is no good for us in the long run?
The practice of drilling new fields in any area is dumb. Again, think of my alcoholic and vodka example. Did you have trouble filling up either of your vehicles the last time you needed fuel? Of course not. OPEC is whining at the moment because oil prices have crashed … there's no shortage of oil, there's a oil glut
So while we still have abundant oil reserves … remember I didn't say cheap … … but abundance means you pull up to the pump any time you want to and use as much as you want to … which is currently the case virtually world-wide.
Anyway, while we are blessd with 'all we can eat',for the short term, why would any nation who is forward thinking not put their resources into the first steps of getting off the "oil nipple"?
Anyone who has raised a child ior done much sales or personnel work knows the simple fact that people will do what they are rewarded for doing. They will also learn and change behavior away from what they recieve "negative rewards' for.
To me the equation is pretty simple, although the task is not. Getting off fossil fuel is not a simple journey, nor a short one. There are variables and imponderables none of us can see for certain. But I can say one thing for certain … we won't get anywhere on the journey and if we don't start walking, in the right direction.
Drilling for new oil … anywhere and by any regime, party, commercial entity or even an NGO is essentially the wrong thing to do.
Just as one example, and it is most appropriate here. if the Philippine government had spent the same amount of money on geothermal electric generation for Palawan … as has already been proposed and engineered, and already works great for Leyte, Cebu and even a part of Luzon, wouldn't we be miles and miles ahead of yet another oil field contributing toward going backward on the journey?
Rewarding bad behavior is wrong, no matter which country may benefit, short-term. In the long run we all lose.
Hi Dave- Maybe you were taking poetic license with your comment, but you did specifically say that tomorrow is too late. As a matter of fact, you went further and said that we have to get off fossil fuels "this minute". I just took you at what you said.
For somebody like the Philippines to drill for oil within their borders is not, in my opinion, dumb. It means that they will have less reason to buy oil from OPEC, and can fulfill at least part of their own needs.
Good morning from Spain, Bob. I'm back and read all comments re oil discovery
in the Philippines and how the government has downplayed its discovery. But,
Bob, that's typical of Filipinos. They do not get overjoyed. They have become fatalistic and realistic as well as cynical. But that's not a bad t hing since too much
optimism can spoil things. Anyway, I just thought I'd say hello and so sorry to know that you had a stroke. Hoe you are a lot better. As for you being there,
what would Davao be without you? People have got used to Bob Mindanao.
Your presence is part and parcel of the new Davao.
Anyway, the different comments make very good reading. Indeed, corruption exists in every country of this globe. Spain, Belgium, Portugal, etc have their
own corrupt ways. In Marbella, our former mayor and his cohorts were arrested
and jailed. This mayor has just been recently released. Other town mayors up
and down the country have also been arrested and put to jail. The height of
corruption in Spain happened in 1986, when they joined the EU. There was construction boom all over the country, and with this form of development,
corruption became the norm. No, sir, corruption does exist in Europe except
that the media here do not, I repeat, do not play it up. Somehow, turning a blind
eye would be better for everyone. Spain has always been a corrupt society. I
should know, I've been living here for the past 28years. As for USA, of course
it is corrupt.Is there corruption in the UK? Naturally. Let's not be naive about corruption. Where there is greed, corruption in any level exists. It is greed that
makes people corrupt, and this has nothing to do with culture.
Mabuhay! See you later…
On Michael's comment re unskilled workers on oil rigs:
Norway is a world oil producer. And are the people they hire? Filipinos. Why,
because they are skilled, hardworking, easy to communicate and work with.
Just a couple of months ago, the Norwegian Ambassador and the local government inaugurated a condotel in Malate, specifically for Filipino seamen
and oil rig workers. Why? Because the Norwegian government sees it to be
the right thing to do because it is well deserved. They know that the country is geographically separated from each other, being more than 7,000 islands, h ence, travelling up and down the archipelago would require a lot of hassle, time, effort, money, and the difficulty of finding lodgings. How can Michael say that oil rigs should only be manned by "white" expats—although he didn't actually blatantly say out loud. Perhaps, he can get a damn good idea from the Norwegians themselves because if truth be told, they will openly say that hiring Filipinos is the next best thing to beer-swooshing, swerling, loud expats. I should know. I live in Europe, hehehe. I know how these guys really, really get drunk. And what about European pilots? They have a long record of piloting commercial planes drunk, or have already been drinking before setting offf!!
Now for the oil find in the Philippines,, congratulations! Better late than later. Comments do tend to be biased especially coming from Euro-expats, but that's healthy. Then, those in the know can rectify some of the alge-old ideas about the
misconstrued and misunderstood Philippines.
Questionis; Who would like to live in South Africa, Zimbabwe, Nairobi, Lagos? Would you rather live in those places where danger lurks everywhere you go/ believe me, these are the places that you, expats should be afraid of…Or perhaps, Riyadh, Jeddah, Aden in Yemen? Have you thought of living in these places? Even Jakarta? Whew. These places are not registered in your set-minds,
but believe me, these are untouchable places,to live in—that is.
The Philipines, forever misconstrued and misunderstood, is really a haven–in many, many ways. And if I had won a million pounds in the national lottery, I would simply pack it in and go back to the Philippines.Now, that would be
really, really magnificent!
Hi hill roberts- Thank you very much for your kind words. Frankly, your first paragraph stunned me!
Re BrSpiritus comment: "Ignorance is bliss…" of course, he doesn't know that the oldest oil refinery in Asia can be found–where else? The Philippines.
The oldest unversity in Asia, where else/ The Philippines. The oldest COMMERCIAL airline in Asia? The Philippines. ~The oldest Stock Exchange in Asia? The Philippines. The first metro introduced in Southeast Asia? The Philippines. The first basketball association established in Asia? The Philippines
The Philippines has many "firsts". Oh, by the way, who invented yoyo and the word itself/ The Filipinos—ahahhhh! Where was urban planning first established
in Asia? The Philippines. Which hotel in Asia started refrigeration? Manila Hotel, the Philippines. Mr Spiritus, before you show how ignorant your comment or idea is about the Philippines, do some research first. The first paeditrician in Asia recognissed worldwide came from: The Philippines of course. The first Heart Center in Asia found in the Philippines of course. The First Lung CEnter in Asia–the Philippines! The first to establish MBA institution in Asia? The Philippines!
The first eye, ear, nose medical institution in Asia? The Philippines! So, how dare
you say that country , if they open their "first" (your comment" refinery will blow up the whole archipelago is not just idiotic but downright rude and ignorant. So, before you open your mouth, dear blogger, do some research. OK?
Other Philippine "firsts"- Philippine International Convention Center–first in Asia;
The First Kidney Center in Asia established here;in the Philippines
PICC as it is called, was even copied by some of Spain's towns.
Singapore and Thailand or even Malaysia came very late into being. I do not know
why Vietnam has even stolen the brand of "Pear of the Orient Seas"–they are not the pear of the…that brand or tag has always belonged to the Philippines. For other trivia re Philipines, the DOT has this WOW Trivia which would help non-Pinoys to get to know more about the country.So, dear bloggers, please do not
be wary of the Philippines, it has so many things to offer, it is rich in diversity,
above all, you can do what you like there without hindrance or impediment, for as long as it isn't "violent"—naturally. Enjoy.
Hi hill roberts- Don't go too hard on BrSpiritus, he is a nice guy, and means well for the Philippines. Personally, I didn't find what he said offensive, and I am certain that he didn't mean it that way. I can see that it rubbed you the wrong way, and I am sensitive to your feelings too. For now, keep an eye on BrSpiritus' comments and judge his intentions over time, I am sure that you will find that he is a supporter of the Philippines, generally.
Take care!
I am an ofw and I hope this oil reserve will help us all Filipinos so that we will not go abroad and serve other country.
Keep your fingers crossed!