DOE mulls ‘strategic’ stockpiling of crude oil to take advantage of low prices in the future

The Department of Energy (DOE) is planning to stockpile crude oil to take advantage of cheaper global oil prices and boost the country’s reserves in a bid to ease the impact of possible price surge in the future once the COVID-19 crisis is over.

Energy Secretary Alfonso Cusi said the DOE and the Philippine National Oil Co (PNOC) are already studying the viability of having a “strategic inventory” of crude oil.

“We are looking at available storage para makapag-imbak tayo. Magkaroon tayo ng strategic supply,” Cusi said during the Joint Congressional Commission hearing on Friday.

“Kukunin natin ito ng mura at magamit natin ito pagdating ng panahon na taas ang presyo... Ito pong crude oil ang ating iniisip natin na iimbak,” he said.

Global oil prices saw drastic drops with the West Texas Intermediate even plunging to negative territory in April as travel restrictions and lockdown measures implemented worldwide to arrest COVID-19 spread dragged demand for petroleum products.

“Pagbaba ng presyo ng oil is because of pagbagsak ng demand and there was really an over production,” Cusi said.

The Energy chief said the DOE is studying how the country can take advantage of cheaper oil prices through stockpiling and eventually pass it on to end-consumers.

“Pinag aaralan natin pano makinabang at maipasa sa consumers natin,” Cusi said. — RSJ, GMA News