DOE: Storage capacity limits PH oil imports
The Department of Energy said that a limited storage capacity hampers the country's oil imports.
DOE Secretary Sharon Garin told solons during a hearing of the House’s 13-committee Legislative Energy Action Development Council that the country's current supply remains about 50 days despite a plan to import more oil.
“The government planned to purchase up to two million barrels—equivalent to about ten days of supply—but we’ve only procured one million so far because we don’t have enough storage. We are only good for about 60 days in total—57.8 days for gasoline and 47.26 days for diesel," Garin said.
When asked if prices will stabilize after the two-week ceasefire between the U.S. and Iran, Garin commented that the future remains bleak, citing that damaged oil infrastructure during the war leads to volatile price movements.
"We don’t have visibility on where this will go, and unfortunately, we are highly dependent on what’s happening there. It could happen depending on what the two countries do,” she said.
“If the war stops today, will the 20% be able to deliver? I think it will take months because much of the infrastructure has been damaged. LNG (liquefied nitrogen gas) facilities, in particular, may take years to restore,” she added.
"The DOE can monitor and recommend, but it does not have the power to control prices beforehand,” Garin concluded.
Garin also assured that there is nothing to worry about the country's oil supply as the government continues to coordinate with suppliers.
“So far, there have been minimal disruptions. Most of them are delivering,” she added.
The global oil crisis continues even as the US and Iran just agreed to a two-week ceasefire following Trump's threats of annihilation of Iran.
