The Philippines’ total consumption is dependent upon traditional hydrocarbon sources of energy. Oil consumption, at 53 percent, accounted for the majority of the Philippines’ final energy consumption mix in 2005, followed by coal at 19 percent. Renewable energy sources comprised 15 percent of consumption, followed by natural gas and hydroelectric consumption at 7 percent and 6 percent, respectively. The updated Philippine Energy Plan of 2005, which is a major reform agenda of the Arroyo Administration, is designed to move towards energy independence by first attaining a level of 60 percent self-sufficiency by 2010. The plan indicates that between 2005 and 2014, the economy’s final energy demand will grow at 4.7 percent per year. To help meet growth in demand, part of the strategy is to increase the country’s oil and gas reserves by about 20 percent and to reduce coal imports by 20 percent. The development of biofuels, as mandated under the Biofuel Act of 2006, will also contribute to the energy mix needed to eventually meet the goal of self-sufficiency.
The Spratly Islands, located in the South China Sea, are claimed in all or in part by China, Malaysia, the Philippines, Taiwan and Vietnam. All of the countries involved in the dispute believe that the area could hold significant natural resources, including hydrocarbons. The Philippines and China forged a three-year agreement in 2004 to conduct a Joint Marine Seismic Undertaking (JMSU) on potential petroleum resources in parts of the South China Sea, including the disputed Spratly Islands (see the Philippine National Oil Company’s latest Exploration and Production Map for more details). When Vietnam objected to being excluded, it too became part of seismic survey. The Philippines is currently reviewing whether to extend the JMSU. See South China Sea Regional Conflict and Resolution for more on this topic.
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