THE Senate energy committee is conducting a hearing Monday morning on the Department of Energy’s (DOE) supply security plans following the attack on Saudi Arabian Oil Company’s (ARAMCO) facilities on Sept. 14.
“This attack on Saudi ARAMCO and the brewing conflict in the region raises concerns on the availability of supply and its effect on oil prices in the Philippines, specifically on the transportation and power generation sectors,” Win Gatchalian, energy committee chairman, said.
The senator has filed Senate Resolution No. 139 seeking to look into the short, medium, and long-term plans of the DOE to ensure adequate energy supply and mitigate adverse repercussions on the country’s oil reserve and prices following the ARAMCO attack.
“The DOE, as the primary agency in charge of planning and implementation of comprehensive programs for the supply of energy, needs to inform the Filipino public about the effects of the Saudi ARAMCO attack on oil supply and prices in the Philippines,” he said.
The attacks on Saudi ARAMCO’s oil installations ignited fears of supply disruption around the world and sent crude prices soaring by double digits. Saudi Arabia is the top Organization of Petroleum Exporting Countries (OPEC) producer of crude oil.
“The DOE needs to state its short and medium term plans and strategies to ensure continuous and sufficient supply and reasonable prices amidst strains in the Middle East, as well as its long-term plans and strategies to achieve energy security in order to prevent vulnerability to supply shocks and insulate consumers from unexpected shortages and sharp price increases,” he said.
Gatchalian noted the attack on ARAMCO eliminated about five percent of global oil supply and triggered a 12 percent increase in oil prices on Sept. 16, reportedly the biggest jump since the 1990-1991 Gulf crisis.
As of June 2019, the Philippines imported 99.9 percent of its crude oil requirements of which 12 percent of the supply came from Saudi Arabia, the senator said.
Sixty-eight percent of petroleum supply in the Philippines is consumed by the transportation sector, while power generation uses five percent, 11 percent is for commercial use, five percent for manufacturing, and the remaining 11 percent is used by other industries including agriculture, mining, and construction. (GMA News)
