Philippines MULTI-TRILLION DOLLARS OIL and GAS DEPOSITS

Philippines MULTI-TRILLION DOLLARS OIL and GAS DEPOSITS

oh no now the Philippines for the Philippines philippines philippines philippines philippines uh first on oil and gas development oil exploration shares were the best performers at the Philippine stock exchange inflation is causing stress bad news about prices in the grocery store historically high inflation what if I told you there’s a country in Southeast Asia sitting on top of potentially more than $26 trillion worth of oil and gas a country whose energy wealth could rival Kuwait even parts of Russia this is going to be sustained then we are going to see the further development of the other SE service contracts we want to do more investments within the particular period of time you need to have a return on that investment we are looking forward to uh a renewed interest in the uh foreign companies to come in and develop other and maybe bigger resources in our country a country that imports nearly everything it burns while potentially floating on black gold this isn’t fiction it’s not some buried conspiracy it’s the real situation right now in the Philippines but there’s a twist this multi-t trillion dollar potential it’s still untapped still buried still dangerously out of reach so why hasn’t the Philippines cashed in why is it still one of the largest oil importers in Southeast Asia while sitting on deposits that could transform its economy forever the answers are dramatic they are political and they go deep into the waters of the South China Sea where global powers are already clashing an Australian P8 that was flying in international airspace in the South China Sea was challenged by a couple of J16 Chinese Air Force planes their fourth generation fast jets but if things go right or wrong the next regional energy power in Asia might not be China or Indonesia it just might be the Philippines right now the Philippines produces only about 9,000 barrels of oil per day but they consume over 550,000 barrels every single day that’s a massive gap it makes them one of the biggest oil importers in all of Southeast Asia a yield of 6 billion barrels of oil is expected from the Kadla oil field every day they’re sending billions of dollars to other countries just to keep their lights on and cars running meanwhile there are potentially significant energy reserves beneath their own territory that remain largely untapped so where exactly are these potential reserves much of the speculation centers on areas beneath the South China Sea particularly around the Spratley Islands including places like Reed Bank and areas around Mischief Reef the challenge is that these broader South China Sea estimates include resources that multiple countries claim the United States is again ramping up pressure on China over its territorial claims in the South China Sea they are not just pirates they are typical bully state they are trying to justify this aggressive and local and barbaric actions if it does not occupy control and exclusively exploit the South China Sea then it should have the say over who does and the actual reserves specifically within Philippine territory are still being explored and confirmed there’s also potential in the Sulu Sea the Celabus Sea and several other areas around the country but here’s where things get really interesting and oh the clock is ticking for the Philippines in a way that most people don’t realize their biggest natural gas field called Malampaya is running out of fuel 24 hours 8 hours 12 hours this field has been powering over 3,000 megawatt of electricity mostly for the main islands of Luzon where Manila is located but experts say that it’ll be largely depleted by 2027 there are instances when the Malumpaya supply cannot provide sufficient gas to the power plants and the power plants have had to resort either to shutdowns or to more expensive liquid fuel which uh results to higher power rates for consumers that’s only a few years away without new sources of energy the Philippines could face rolling blackouts soaring fuel prices and an import bill that would crush their economy for decades and overflights within the Philippine airspace went down due to power outlets resulting to loss of communication radio radar and internet elmeral cut power rates this month as staggering price increase is feared i’ve already been waiting 10 hours for my connecting flight to Cebu i’m very stressed from all the waiting and the long cues my body is aching from all the waiting there’s no place to rest the government knows this is coming so they’re scrambling to find solutions they’re trying to revive an old oil field called Kadlau exploring new areas in Mindelau and expanding drilling around areas called Kamago and East Malampaya they’ve even extended contract for Malampaya until 2029 hoping to squeeze every last drop out of it we are hoping and looking forward to new additional gas supply from the nearby fields the Malampaya Consortium will start drilling off the waters of Palawan private investors are starting to pay attention too companies like Prime Infra Shell and Uda Corp have invested hundreds of millions of dollars into new energy projects in the Philippines nearly a billion pesos worth of uh Filipino shell shares have changed hands so far and the total value turnover for the entire market is just at 1.2 billion so but here’s the thing that makes this whole situation so frustrating even with all this activity most of the country’s potential energy wealth is still sitting there untouched it’s like having a vault full of money but not being able to open it and the reason they can’t open it it has nothing to do with technology or money it has everything to do with politics and political power the South China Sea is one of the most dangerous places on Earth right now storm is brewing in the South China Sea another confrontation has taken place between Chinese and Philippine vessels it’s the second such event in 2 weeks not because of storms or pirates but because of warships and territorial disputes six different countries all claim parts of the same water china Vietnam Malaysia Brunai Taiwan and the Philippines all say they own overlapping areas this country will not lose one inch of its territory [Music] if it does not occupy control and exclusively exploit the South China Sea then it should have the say over who does malaysia is demanding a small part of the Spratley Islands brunai also wants territory in the South China Sea but none of the disputed areas the problem is is that much of the Philippines potential oil and gas sits right in the middle of these disputed waters back in 2016 the permanent court of arbitration at the HG ruled that China’s claims over most of the South China Sea had no legal basis under international law but China basically ignored the ruling china out of Philippine waters china’s 9- line in South China Sea has no legal it’s not possible because under the constitution there’s a provision there which says that the use and enjoyment of the exclusive economic zone shall be reserved exclusively to Filipinos chinese Coast Guard ships continue to block harass and intimidate Philippine vessels even in waters that legally belong to the Philippines we’re talking about flares being fired ships being rammed and constant intimidation tactics near Reedbank and other potentially oil richch areas this isn’t just rumors or propaganda satellite images journalists and even US military sources have confirmed these incidents satellite images from MAXA technologies dating to the 19th of May have revealed the presence of two Chinese H6 bombers on a runway on Woody Island just last year there were multiple confrontations between Chinese and Philippine vessels near areas where the Philippines wants to explore for oil the result is that foreign investors are scared to put money into these projects drilling plans get delayed or cancelled completely the Philippines has the legal right to explore their own territory but they’re being paralyzed by fear of starting a bigger conflict think about how crazy the situation is the Philippines could potentially solve their own energy problems boost their economy and become a major player in regional energy markets but they can’t because another country is using military force to stop them from accessing their own maritime territory it’s like someone parking a tank in your driveway and telling you that you can’t use your own garage but the story is starting to change and this is where things get really interesting for the future of Asia president Marcos Jr has been making some bold moves over the past year he strengthened partnerships with the United States and Japan in ways that could completely shift the balance of power in the region the United States approves the sale of $5.58 billion in F-16 fighter jets to the Philippines the Enhanced Defense Corporation agreement now gives the US military access to nine bases across the Philippines the Philippines granted the US greater access to military bases this would allow the US to position military equipment and rotate its troops in a total of nine military bases controlled by the Philippines i am aware that the emerging threat to our territory and our emphasis on addressing this threat requires adjustment in our strategy the external security environment is becoming more complex it is becoming more unpredictable american and Philippine forces are doing more joint patrols in the South China Sea behind the scenes Japanese investors and American energy companies are exploring deals to help develop Philippine oil and gas fields program was really well structured and invited a lot of amazing speakers to participate 101 mentoring session for me in this session we have able to discuss more deeply about our startup problem and gain president Marcus Jr makes a pitch to Japanese companies to invest in the country the potential investment numbers are significant some experts suggest that over the next 5 years tens of billions of dollars in foreign investment could flow into the Philippines energy sector that’s not just oil and gas either we’re talking about entire energy infrastructure of the country getting rebuilt and modernized all the preparation during the last nine weeks will culminate during the demo day where the startups get to pitch their businesses to the top investors in the region the goal is simple but revolutionary end the country’s dependence on imported oil fuel local industries cut transportation costs and build an energy secure Philippines that doesn’t have to worry about other countries controlling their power supply but this raises a huge question that could determine the future of Southeast Asia will the Philippines actually be able to rise to become a regional energy power or will they miss this opportunity the race is definitely on and other countries in the region aren’t waiting around indonesia pumps over 700,000 barrels of oil per day malaysia produces close to 600,000 barrels daily both countries are using their own fossil fuel wealth to supercharge their economies and build modern infrastructure if the Philippines could develop significant domestic production even matching a fraction of what Indonesia produces it could generate billions in annual revenue while dramatically reducing their import costs while it might not immediately make them the second largest economy in Southeast Asia the economic multiplier effects could be substantial we’re talking about cheaper energy for consumers lower transportation costs more competitive manufacturing and thousands of new jobs across the energy sector but the window of opportunity is getting smaller every day with Malaya running dry energy prices rising around the world inflation is causing stress bad news about prices in the grocery store historically high inflation and climate change putting pressure on all countries to transition from fossil fuels into real economic power [Music] and now there’s another layer to the story that makes it even more complex there’s only so much time left to act the Philippines is literally racing against the clock to turn their potential energy wealth their energy resources it could significantly change the balance of power in Southeast Asia china would lose some of its leverage over the region because the Philippines wouldn’t be as dependent on Chinese trade and investment the United States and its allies would have a stronger more independent partner in the region and the Philippines itself could transform from a major energy importer into a country with real energy security but if the Philippines fails to act or if they get blocked by Chinese military pressure the consequences could be severe they could get trapped in a cycle of high fuel costs import dependency and missed opportunities philippine government prepares to give fuel subsidies to transport workers as the Israel Iran war pushes world oil prices higher their economy could struggle while their neighbors race ahead and they’d remain vulnerable to energy supply disruptions from other countries the current situation is creating some fascinating dynamics that most people don’t realize for example the Philippines is starting to work more closely with Vietnam which faces similar challenges with China in the South China Sea china refuses to recognize ruling over South China Sea the Chinese Coast Guard rammed and boarded Filipino Navy boats both countries have potential oil and gas reserves in disputed waters and both are looking for ways to develop them despite Chinese opposition there’s talks of joint development projects and shared security arrangements japan is playing a particularly important role that deserves more attention through organizations like Jog and private companies japan has deep expertise in offshore drilling and energy technology they’re also looking for ways to reduce their own dependence on Middle Eastern oil by diversifying their energy partnerships japan and Saudi Arabia have signed a key clean energy agreement aimed at strengthening their current relationship a strong energy partnership between Japan and the Philippines could benefit both countries while creating a counterweight to Chinese influence in the region the timing of all of this is crucial because what’s happening in global energy markets natural gas prices they spiked to a 52- week high earlier this week following reports of a colder than usual temperature forecast for January but overall right now the energy sector is in a vibrant mood the war in Ukraine has shown everyone how dangerous it is to depend on energy imports from unstable regions countries around the world are scrambling to find reliable secure sources of energy the Philippines could potentially position itself as a stable democratic supplier of oil and gas to allies like Japan South Korea and even Taiwan but they need to move fast every year they delay is a year that their competitors get stronger and their own energy situation becomes more desperate the Melaya field isn’t going to magically refill itself import costs keep rising prices of imported goods rising by at least 10% due to the weakness of the Philippine peso against the US dollar the increase might be know on average around 2 to 3% now from the from last year when our peso started depreciating up until now and the longer they wait the more entrenched Chinese positions become in the South China Sea there’s also a generational aspect to the story that’s worth considering younger Filipinos are more environmentally conscious and more skeptical of fossil fuels than older generations across the nation and the planet the youth alongside the most impacted communities are standing up against this injustice but they’re also more frustrated with poverty high cost of living and limited economic opportunities if developing oil and gas resources could create jobs and reduce living costs in the short term while funding a transition to renewables in the long term it might be a compromise that works for everyone the international community is watching the situation very closely the outcome could set precedents for how territorial disputes get resolved how smaller countries stand up against larger powers and how energy resources get developed in contested areas if the Philippines succeeds it could encourage other countries in similar situations to be more assertive about their rights if they fail it could send a signal to the international community one thing that’s clear is that this story is far from over the Philippines is at a crossroads that will determine their future for decades to come they have the potential resources to become a significant player in regional energy markets they have growing support from powerful allies and they have a young educated population that could drive economic growth if they had access to affordable energy but they also face serious challenges chinese military pressure isn’t going away philippines says Chinese vessels harassed their boats in Philippines exclusive economic zone listen to this threatening radio communication from the Chinese Coast Guard ship 3103 coast Guard 49 this is China Coast Guard 3103 conducting low business routing patrol under the jurisdiction of people of China please alter your course and leave immediately or you will take necessary measure and you should bear full responsibility for all the consequence developing offshore oil and gas fields requires massive investment and advanced technology they need to balance short-term energy needs with long-term environmental goals and they must navigate the complex geopolitics of the South China Sea while building the technical and financial capacity to actually extract these resources the next few years will be critical will the Philippines find the courage and capability to tap into their potential energy wealth will they be able to stand up to Chinese pressure with the help from their allies will they be able to use their potential fossil fuel resources to fund a transition to renewables or will fear and politics bury this potential opportunity forever what do you think is going to happen drop your thoughts in the comments below and if you found this deep dive into Philippine energy politics interesting make sure you subscribe to our channel and hit the notification bell thanks for watching

The Philippines is sitting on TRILLIONS in oil and gas, but why hasn’t it become the next Middle Eastern energy giant?
This is the untold story of untapped power, geopolitical tension, and a ticking energy time bomb.

In this documentary, we uncover:

Why the Philippines could be sitting on $26 TRILLION in oil and gas

How China is blocking access to these resources using military pressure

Whether the country can transform into Southeast Asia’s next energy superpower

From the South China Sea disputes to U.S. and Japan’s secret energy deals, this is one of the most important economic stories in Asia, and it’s happening right now.

👉 Will the Philippines rise or fall? Watch till the end.
👇 Drop your thoughts in the comments. We read every one.

🎙️ Voice + Research: Econet Team
📬 Contact: business@econetchannel.com
📈 #Philippines #OilCrisis #SouthChinaSea #Geopolitics #EnergyWar