Exploration

This piece of good news nearly fell below the radar.

- ALEX MAGNO

The Department of Energy (DOE) announced this week the signing of eight new Petroleum Service Contracts (PSCs) for oil exploration. The deals went though a transparent and competitive selection process as required by law. Altogether, the eight contracts translates into $207 million in investments over a seven-year period.

Significantly, one of the contracts sealed involves exploration and, hopefully, extraction of natural hydrogen. This is considered green fuel with many possible applications in industry and transport.

$207 million is not a staggering sum. But these contracts represent something truly consequential for the country’s energy security. Since 1989, when the Malampaya wells began producing natural gas for the country, there has been a drought of new investments for oil and gas exploration.

Somehow there was a misfit between standing policy and investor expectations. Exploration is a capital-intensive and high-risk venture. It requires mobilizing the best technologies for geological and geophysical surveys as well as extensive seismic and aeromagnetic studies.

Securing our energy future is a task that cannot be undertaken small scale. It requires inviting in the best companies in the world to take a stake in energy exploration and, ultimately, energy production.