There is a sense of joy to know that the Philippines has started extracting oil in its Galoc oil fields, 2,200 meters down in the Palawan seafloor on October 10, 2008. The well which is expected to produce 22,000 barrels per day has an estimated reserve of up to 20,000,000 barrels, according to government authorities. By estimate, this can last for about 2 ½ years unless other wells are discovered or rendered operational.
It is said that yield of the Galoc oil well covers 16% of the fuel needs of the country and will bring $1.6 billion in foreign exchange savings. The cost of building the well has been magnified because of bureaucratic delays and bad weather, a rise in cost from $86 million to $120 million.
“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,” said Executive Secretary Ermita, Philstar (10/10/08, Romero P; Torres,T)
The successful oil drill boosts the optimism of Filipinos who are burdened by the fluctuation of fuel prices, rise in the cost of goods, and the threat of global recession. Though the oil production brings some relief to the financial pressure of importation, it remains to be seen how benefits trickle to the mainstream consumers. More production is desired to meet the daily national need of 300.000 barrels a day. Because of the polluting effects of fossil fuel on the environment, alternative sources of energy such as wind, solar, electromagnetic, hydroelectric, geothermal and possibly nuclear must be explored to protect the planet and raise self-sufficiency in energy needs. (Photo Credit: http://www.travel.ph )=0=