With oil prices flying as if it’s on jet fuel, the oil importing country Philippines finally has a real reason to rejoice. The government announced the country’s first oil extraction at the Galoc oilfield, which is approximately 60 kilometers northwest of the Palawan islands. The facility is expected to yield about 17,000 ~ 20,000 barrels of oil per day within the next three months.
With the dollar strapped Philippines importing approximately US$6 billion worth of oil per year, this new development is something that will be appreciated to the tune of $1.4 ~ 1.6 million/day, the value of crude oil that the country will not have to pay for in US$. The computation is based on today’s world oil price of $82.65/barrel.
Should there be spikes in crude oil prices, the amount of dollar that the economy need not generate can rise to $3 million per day. All in all, Galoc’s oil production can save the Central Bank between $1.4M ~ $3M/day or as much as $1.09 Billion/year.
At present, the country produces a little more than Galoc’s capacity.