In new study, think tank raises several red flags over expanded oil exploration in Palawan

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Palawan’s marine biodiversity and food system are at risk amid expanded oil exploration around the island, according to a new study published by non-government organization Center for Energy, Ecology, and Development (CEED).

The scoping paper titled “Don’t Drill Paradise,” authored by researcher Charlene Jemima Lopez, analyzed the government’s different national policies and agreements on fuel, and utilized different case studies to show the impacts of oil exploration.

“Despite the province’s ecological and environmental importance, upstream exploration and production activities are concentrated in Palawan. It hosts 14 active offshore petroleum service contracts, with several additional applications pending in nearby areas,” the study found.

CEED raised several risks to the environment when it came to expanded oil exploration, including seismic airguns that caused harmful noise to marine life, as well as the drilling of wells that damage the seabed.

Methane, a principal component of fossil gas and a potent greenhouse gas, contributed significantly to near-total global warming. This methane could escape through equipment leaks, venting, and more.

Coastal communities are also directly impacted by these upstream activities, with fisherfolk reporting lower catches. Every stage of gas projects posed a risk of oil contamination which could devastate the marine ecosystem, leading to fishing bans and the closure of tourism industries.

Government policies also tended to favor large conglomerates, offering little protection for host communities.

“The law provides no clear mechanism for reparations for damages suffered by communities or the environment. It merely requires contractors to give priority in employment to qualified local residents, effectively reducing host communities to a source of labor, while any direct community benefits remain discretionary and dependent on negotiations between the national government and the contractor,” the study read.

The study also raised alarm over the environmental damage to the food system in Palawan.

Since Palawan fisheries are already under pressure from overfishing, upstream oil activities could make it further vulnerable.

“Reduced fish catch would not only undermine the incomes of fishing communities but constrain the availability and affordability of fish as a source of food–resulting in higher prices that could affect the whole country,” the study found.

Based on its findings, the study concluded that the Marcos administration has delayed the country’s transition into using renewable energy,

“The current policy directions of the Marcos administration places communities and marine life at risk while delaying, rather than facilitating, the transition to renewable energy. Gas exploration and production disrupts marine ecosystems even before gas reserves are discovered. At the same time, large investments in the fossil gas industry divert resources away from renewable energy and lock the country into prolonged fossil-fuel dependence,” the study read.

In 2022, Marcos called fossil gas as an interim fuel while the country transitioned into renewable energy. Liquified natural gas (LNG) was also considered a necessary transition fuel under the Philippine Energy Plan.

Despite this, CEED said there was a “gas boom” under the Marcos administration. Before the Marcos admin, there were only 10 petroleum service contracts (PSC).

Twelve new PSC’s were awarded during his term, raising the country’s contracts to 22.

“If gas truly is a ‘transition fuel’, fossil gas should be phased out after displacing coal and oil in the energy mix. Yet, until now, there is no oil and coal phase-out and neither is there any plan to phase out gas after it has supposedly acted as a transition fuel,” the research said.

The Marcos admin has been urged to phase out fossil fuels and to halt the development of gas fields and awarding of PSCs. The study also recommended strengthening environmental and social safeguards for oil and gas activities.

The CEED also urged the local government of Palawan to reject new development of gas projects and to invest in renewable energy solutions.

Stakeholders are also urged to participate in consultations and demand transparency.

GMA News has reached out to the Department of Energy and the Palace for response to these findings. — LA, GMA News