|
Philippines Energy
During the 1970s and 1980s, the Philippines sought growth and
self-sufficiency in energy production. In 1972 the government
altered the legal arrangements for oil exploration from
concessions to a service contracts, and serious oil exploration
began in the mid- and late 1970s. As a result of exploration in
the Palawan-Sulu seabed, oil was discovered in the Nido oil field
in 1976. Commercial production began in 1979 and yielded 8.8
million barrels. Successful wells also were drilled in the Cadlao
and Matinloc fields off Palawan in 1981 and 1982, but the fields
were relatively small. The level of production varied during the
1980s but never exceeded 5 million barrels in any one year. In
1988 local production--2.2 million barrels--accounted for only 3
percent of domestic oil use (see
table 11, Appendix). A study
released in early 1990, indicating that the geology of the
Philippines was a favorable indicator of possible additional
petroleum deposits, was used by the government to encourage oil
exploration firms. Production-sharing arrangements allowed a firm
first to recover the cost of its investment, after which 60
percent of profits would go to the government. In December 1990,
there were new discoveries of oil and natural gas off the
northwest coast of Palawan Island. Tests showed that the oil well
could have a flow rate of 6,000 barrels per day, with potential
reserves of about 1 billion barrels.
Between 1973 and 1983, power generation increased at an
annual rate of 7.0 percent, two percentage points above the
growth rate of real gross domestic product
(GDP--see Glossary).
In 1988 the National Power Corporation, which produced
approximately 90 percent of the country's electricity, had a
generating capacity of 5,772 megawatts. Of that, 42 percent was
from oil-burning plants and 7 percent from dual oil-coal
facilities. An additional 37 percent was from hydroelectric
plants, and just under 15 percent was from geothermal plants.
The Philippines had a wealth of potential energy resources.
It ranked second behind the United States in production of
electricity from geothermal sources. Installed capacity in 1988
was 828 megawatts; estimated potential was 35,000 megawatts.
Undeveloped hydroelectric potential of 3,771 megawatts also was
identified. Coal resources, estimated to be 1.2 billion tons,
also were plentiful, although of a rather poor grade for
electrical generation. In addition to these sources, solar,
animal waste, agriwaste, and other nonconventional sources were
utilized for generating small amounts of electricity and other
energy needs in rural areas. Together they accounted for about 15
percent of energy consumption.
In 1990 the Philippines was confronted with a crisis of
insufficient electrical generating capacity. Metro Manila and the
thirty-three provinces in the Luzon power grid experienced
brownouts of up to four hours per day, with the grid averaging a
daily deficiency of 262 megawatts. At the root of the problem was
the decision by the Marcos regime to build a 620 megawatt
nuclear-power plant on the Bataan Peninsula. The Aquino
government decided not to use the facility because it was located
on a seismic fault. As a result, a badly needed expansion of
generating capacity in Luzon, which accounted for 75 percent of
national electric consumption, did not come on line. The problem
was compounded by inadequate planning and bureaucratic delays.
There were delays in the building of a facility capable of
generating 110 megawatts of geothermal power in Albay Province
and a 300 megawatt coal-fired plant in Batangas Province. The
short-term solution was to put up a series of gas-turbine plants
with a combined rating of 500 megawatts. Only 245 megawatts came
on stream between 1987 and 1989. Economists estimated that to
achieve a 5.6 percent growth rate in real GNP, the country would
need an additional 300 megawatts of generating capacity yearly.
Efforts also were being made to expand the country's rural
electrification program. In 1985 it covered the franchise area of
some 120 electrical cooperatives, reaching around 2.7 million
households. The government planned to expand the coverage to some
4 million households by 1992.
Data as of June 1991
|
