Oil stockpiling deal eyed between Philippines, United States

Signs reading 'out of stock' are displayed at a gas station amid rising petrol prices in Manila on March 9, 2026.

AFP / Jam Sta Rosa

MANILA, Philippines — The United States, a key actor in the Middle East war that has rattled global fuel supply chains, is now keen to help the Philippines establish its planned strategic petroleum reserves.

Energy Secretary Sharon Garin met with her US counterpart, Chris Wright, on Oct. 15 in Washington to explore ways to expand bilateral energy cooperation between the two countries.

A key item on the meeting was emergency oil stockpiling, with the Philippines exploring opportunities to tap US expertise in building petroleum reserves and preparing for disruptions to global energy supplies.

Garin, who previously pointed to US President Donald Trump’s social media posts as a source of fuel market volatility, said the priority is to ensure “a secure, reliable and affordable energy supply for Filipino families and businesses.”

As a net oil importer, the Philippines quickly felt the impact of tensions between the US and Iran over the strategic Strait of Hormuz, a key shipping route that typically handles about 20 percent of global oil and gas supplies.

The risks have reinforced the Philippines’ push to establish an emergency stockpile of crude oil and refined petroleum products to safeguard domestic fuel supplies during global disruptions.

Beyond oil security, Garin and Wright also discussed cooperation under the landmark “123 agreement,” which provides a framework for the peaceful use of nuclear energy.

The talks also explored opportunities to advance indigenous energy resources, particularly geothermal energy and natural hydrogen.

The US and the Philippines are the world’s largest and third-largest producers of geothermal power, respectively.

Meanwhile, US-based Koloma Inc. holds service contracts for the Philippines’ first natural hydrogen exploration projects.

“Strengthening our partnership with the United States will help us diversify our energy sources, develop indigenous resources and build the technical capabilities needed to support our long-term energy security,” Garin said.

Garin was joined in the US by Philippine Ambassador Jose Manuel Romualdez, National Power Corp. president Jericho Jonas Nograles and Department of Energy director Patrick Aquino.