PCCI Pushes Faster Oil, Gas Exploration to Secure Energy Future
- May 14, 2026
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At the Energy Summit 2026, organized by the Philippine Chamber of Commerce and Industry (PCCI) in Makati City, stakeholders from the government and private sector said the country must move faster in developing local energy resources, modernizing infrastructure, and strengthening strategic partnerships to secure long-term energy stability.
PCCI president Perry Ferrer said the Philippines remains heavily reliant on imported fossil fuels despite having abundant indigenous energy resources, including geothermal, solar, wind, and offshore potential.
“Every kilowatt we generate from our own sun, our own wind, our own earth — is a kilowatt that cannot be held hostage by a foreign crisis,” Ferrer said.
He warned that global energy markets are becoming increasingly unstable due to geopolitical rivalries, climate-related disruptions, and supply chain constraints, adding that the Philippines is directly exposed to these risks.
“We are squarely in the path of these disruptions,” Ferrer said. “The answer cannot be timidity or simply endure — to absorb higher prices, accept unreliable supply, and hope that the global order stabilizes in our favor. History teaches us that hope is not a strategy.”
Maximizing Indigenous Energy
Ferrer outlined a three-point strategy that includes accelerating the development of indigenous energy resources, modernizing energy infrastructure, and building strategic partnerships without compromising national autonomy.
He said decisions made in the next several years would have long-term implications for the country’s energy future.
“The decisions we make in the next five years will echo across the next 50,” he said. “The investments we commit to today will determine whether our children inherit an energy-secure Philippines, or one still searching for answers.”
Energy industry officials at the summit said the urgency has intensified following continuing instability in the Middle East, a major source of global oil supply. Philippine Petroleum Association president Edgar Cutiongco said the country needs to accelerate oil and gas exploration activities as existing domestic fields continue to decline.
“Malampaya, for example, remains the backbone of our gas supply, but it’s naturally declining,” Cutiongco said. “Galoc field, a marginal field offshore Palawan, is also in normal decline. We need to accelerate exploration first.”
The Malampaya deep-water gas-to-power project supplies fuel to several major power plants in Luzon and remains critical to the country’s electricity supply mix.
Investment Risks
Cutiongco said the Philippines continues to lag behind neighboring ASEAN countries in upstream oil and gas exploration due to regulatory bottlenecks and investment uncertainties.
“One of the reasons is the issue in permitting and processing of documents in the government,” he said. “Delays increase uncertainty and reduce investment.”
He noted that oil and gas exploration projects are inherently high-risk and capital-intensive, with commercial production typically taking seven to 10 years after contract awards.
Any slowdown in approvals or permitting, he said, could discourage investors and further delay efforts to secure new domestic energy sources.
Aside from regulatory issues, Cutiongco also pointed to geographic and geopolitical challenges affecting exploration efforts.
He said the Philippines’ location along the Pacific “Ring of Fire” limits the natural development of oil deposits compared to some neighboring countries. Potentially resource-rich areas also face geopolitical complications.
“Couple this with the West Philippine Sea issue. Like the Recto Bank or the Reed Bank that hold substantial amounts of gas reserves, is currently off limits,” he said.
Recto Bank, also known internationally as Reed Bank, has long been considered a potential source of significant natural gas reserves but remains entangled in territorial disputes in the West Philippine Sea.
Onus On Government
Several speakers at the summit said the government should take a more active role in supporting exploration and energy security initiatives, including financing and attracting strategic investors.
Ferrer said oil and gas exploration is too costly and risky to rely solely on private firms.
He suggested that the government could help lead exploration efforts and provide support mechanisms for major investments in the sector.
Prime CoreGen president and chief executive officer Jose Victor Emmanuel de Dios also said stronger state participation could help the country better respond to fuel supply crises.
“Maybe a wish list is to see how the state-owned oil company can be more empowered,” de Dios said in an interview after the summit. “It’s just that it’s so difficult dealing with this, with a crisis, with having to make sure that you have fuel.”
Despite the challenges, de Dios said coordination between the government and private sector has so far helped the country manage the impact of the ongoing Middle East conflict.
For its part, the Department of Finance said the government continues to streamline processes and improve the ease of doing business to attract more energy investments. Finance Undersecretary Miko Alejandro said authorities are working to fast-track the development of indigenous energy projects across multiple technologies.
“To give energy projects across all sources and scales the conditions they need to move from proposal to reality and fast-tracking the development of indigenous energy sources like natural gas, solar, wind, and hydroelectric power,” Alejandro said.
He added that the Board of Investments approved nearly ₱1 trillion worth of energy investments in 2025, covering around 10,405 megawatts of capacity from solar, wind, hydropower, and other energy projects.
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