MikeLigalig.com

On oil exploration, again

By Joe Espiritu
Columnist, Bohol Sunday Post

The oil exploration in the sea between Cebu and Bohol is entering the second phase and that is happening only in Cebu waters. The survey in Bohol area had been differed until positive results had been obtained in the Cebu area. A seismic survey had been conducted despite the protest of some Cebu fishermen. Initial findings may have been promising since the exploration is entering phase two and that is the drilling of an exploratory well. And Cebu fishing operation in that area is back to normal

As we had stated before, oil prospectors are of the opinion that the undersea terrain between Cebu and Bohol hold some 22 million barrels of oil. To locate the promising spots in the area, a seismic test was conducted of the area. However, Bohol fishermen under the advice of some NGOs objected so exploration was made in the Cebu side. Possible deposits had been located and to confirm the find, a well is drilled.

There could be three results of the drilling. First, it may be a dry well. Second is it may be a dry well but drill stem tests may strongly confirm the presence of oil in the vicinity. The third is it might hit a deposit. The dry well maybe capped and abandoned. In the second, prospectors may try another site. In the third, several wells would be drilled to determine the extent or the horizon of the oil deposit.

Since drilling is expensive, many prospectors had gone broke drilling dry wells, a careful study of the results of the seismic test had to be made.

Statistics show that since 1975 until the year 2000 the world population has doubled by 50%. Along with it, the demand for crude oil followed. By 2010, the world's total oil production will peak and from then until 2050 there will be a slight drop in oil production. Since 1980 despite geologists' forecasts, no new fields had been found that could produce over 10 million barrels.

An exception could be the location of a vast sea of oil in the northwestern Chinese province of Xinjiang, which is expected to hold an estimated 74 billion barrels. However the deposit is in one of the most inhospitable places in the world, in the Taklamakan Desert of the Tarim Basin of that province where temperatures ranges from - 10 degrees to 55 degrees Celsius. However, experts say that the oil is heavy with sulfur and can wreck refineries not equipped to scrub out the sulfur from the oil. On the other hand, oil found in the Philippines rank with the light sweet crude of the Arabian Peninsula and the Borneo oil.

Some 1,311 known major oil-producing fields contain 94% of the world's known oil. The newly industrialized countries of China and India - perhaps only India - requiring more oil, will compete with the European Union, United States and Japan for oil. With the increasing world demand, the OPEC will squeeze every cent they can get out of oil. After 2050, if no new deposits are located oil prices will go through the roof. Unless the Philippines will find and develop her oil resources, our industries, which rely largely on imported oil, cannot hope to compete in the world market.

Should the first exploratory well produce positive result, there is no way the Bohol fishermen could prevent the prospectors from entering Bohol waters. Parochial minds cannot go against national interests. As long as prospectors can show Environmental Compliance Certificates from the Department of Environment and Natural Resources nobody can prevent them exploring Bohol waters.

The Cadlao, Matinloc oilrigs are located in the rich Palawan fishing grounds and those areas still supply the fish markets of Metro Manila. The white shrimp catch in the oil rigs in Texas waters in the Gulf of Mexico has not diminished despite the operations, while the dairy cows of Oil Spring, Ontario, Canada graze contentedly among the oil derricks. They only show that carefully controlled oil mining do not wreck the environment. It seems that only self-interest can prevent the development of our oil resources. If we have any.

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Dear Mike,

I have a message to this columnist Mr. Joe Espiritu...

I do not understand why you, Mr. Joe Espiritu is very enthusiastic about this oil find. We have to ask if there is clear/transparent negotiation and if there is any assurance that Bohol in particular could benefit out of this. Mr. Joe Espiritu, please show the Boholano people some figures / revenues out of this oil find.

Mr. Espiritu, this is not a big news that we have to be exited about. We are drilling oil in Palawan since decades, which is a much bigger reserve, yet look at our economy now. Is there any progress since that time? Did Palawan become a huge metropolis?

Mr. Espiritu, why are you so excited? Is there a clear assurance that bohol could benefit? Do you know that an oil rig is just a small structure and it operates only on a maximum of 20 personnel? Do you think salaries of this 20 personnel (laborers) could make a difference in our province. From the initial press release of this project, only $3.99 per $100 oil value will be the share for LGUs in taxes. Is this fair Mr. Espiritu?

It is our oil and it is not for free. In any case, we have to say "NO" as an opening statement for every negotiation.

"No drilling must be made unless clear revenues to the Boholano people is reached through negotiation". Incase the revenues are only a fraction, then we have to say "No" as we have a better alternative which is eco-tourism revenues...

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One of the problems is that there is no ECC.  According to guidelines formulated by the DENR, the prospectors are not required to undergo the rigorous process of applying for an ECC.  Seismic surveys, according to the DENR, are issued a Certificate of Non-Coverage from the Environmental Impact System Law, for which the project proponents need only submit a project design.  The DENR has classified seismic surveys, no matter how extensive the survey area, under Category D, projects that are "unlikely to cause adverse environmental effects."  Former DENR Secretary Angel Alcala has himself commented that seismic surveys, whether terrestrial or submarine, should be covered by ECCs since it has deleterious effects on the environment.

I'll talk more lengthily on this when I have the time to collect my thoughts.

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