HOW MANY DAYS OF OIL RESERVES SHOULD A COUNTRY HAVE?

HOW MANY DAYS OF OIL RESERVES SHOULD A COUNTRY HAVE?

By now, every Filipino should read and re-read the warning of Mr. Butch Cabanban in his March 1, 2026 piece, “National Emergency: The Oil Truth.” I agree with him 100 percent.

He did not mince words. He wrote of our “absolute lack of preparation” and declared bluntly: “ZERO GOVERNMENT RESERVES.” That is a frightening statement for a country of 115 million people that imports nearly 90% of its crude oil—mostly from the Middle East.

As Mr. Cabanban pointed out, we are relying solely on the 30-day Minimum Inventory Requirement (MIR) of private oil companies. Thirty days. That is not strategy; that is wishful thinking. The global gold standard, particularly among members of the International Energy Agency (IEA), is 90 days of net oil imports. Some island nations even aim for 120 days.

The logic is simple. Ninety days buys time—time to stabilize prices, time to negotiate supply routes, time to shift to alternatives. Without that buffer, any closure of a chokepoint like the Strait of Hormuz could send our economy into shock.

Mr. Cabanban called it “criminal negligence” that we have known for decades about our import dependence and yet failed to build a state-owned strategic petroleum reserve. He is correct. We lose over a trillion pesos to corruption and waste, yet cannot allocate funds for underground storage, tank farms, or “cushion crude.” That is not a lack of money—it is a lack of priorities.

So let me ask the obvious question: If the global standard is 90 days, why are we content with 30?

We need structural reform, not just rhetoric.

First, I propose the creation of a National Strategic Petroleum Reserve Bureau under the Department of Energy (DOE). This bureau must be solely dedicated to planning, building, and managing a government-controlled oil reserve infrastructure—whether through underground caverns, floating storage, or regional tank farms. Its mandate should be clear: achieve at least 90 days of national reserve within five years.

Second, we must incentivize refinery expansion. At present, Petron Corporation operates the country’s lone remaining refinery. That is a vulnerability. The government should offer tax holidays, accelerated depreciation, and infrastructure support to attract more refiners. Energy security is national security.

Third, we must aggressively develop alternative fuels. Biodiesel from coconut and other feedstocks should not remain a side project. Mandatory blending requirements can be increased gradually. Research grants and guaranteed offtake agreements can encourage private investment. Every liter of biodiesel blended is one less liter of imported crude.

Fourth, we must scale up renewable energy—wind, solar, geothermal, and hydro. The Philippines is already one of the world’s largest geothermal producers. Why not lead in wind corridors and floating solar farms as well? Incentives, streamlined permitting, and grid modernization must follow.

Critics will say: “Storage is expensive. Oil degrades. Billions will sit idle.” True. But what is the cost of paralysis? Skyrocketing fares. Expensive food. Power interruptions. Social unrest.

Energy reserves are not optional luxuries. They are insurance policies. The question is not whether we can afford 90 days of oil reserves. The real question is: can we afford not to have them?

If we fail to act now, we will learn the answer the hard way.

RAMON IKE V. SENERES

www.facebook.com/ike.seneres iseneres@yahoo.com senseneres.blogspot.com 09088877282/04-24-2027

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