Baluyot, Cocabo, Dugan, Falcotelo, Go, Guzman, Salvador

Petroleum
Supply Chain
Supply Chain Map
Petroleum Supply Chain
Supply Chain Map
Upstream Processes
Petroleum Supply Chain
Crude Sale and Importation
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Crude Sale and Importation
Once crude oil has been extracted
from the ground, it is stored in barrels
and offered up for sale in the world
market.
As evidenced in recent times, the
selling price of crude oil fluctuates
based on market supply and demand,
in addition to other external factors.
Crude Sale and Importation
45.90%
25.80%
15.80%
7.70%
4.80%
Philippine Oil Imports for 2012
Saudi Arabia
United Arab Emirates
Russia
Qatar
Others
Crude Sale and Importation
The Philippines pays a great deal for fuel from
these sources. In the first nine months of 2011
alone the Philippines spent $9.43 billion on
84.6 million barrels of oil resources from the
aforementioned countries.
51.16
million
barrels
for raw
crude
39.36 million
barrels for
finished
petroleum
products such as
diesel, kerosene,
LPG and lubricant
oil
84.6 million
barrels of oil
resources
Crude Transportation
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Crude Transportation
Once orders are finalized, they
are shipped to the specified
location.

In the case of the Philippines,
imported oil is almost always
delivered via seafaring oil
tankers (each tanker can carry
160-320 tons of cargo).

Like the price of oil itself, the
cost of transporting oil changes
rapidly depending on current
supply and demand.
Crude Transportation
The cost to charter an oil tanker from the Middle
East to the Asia-Pacific region in 2007 had a wide
spread ranging from $7,085/day to $301,609/day.
While no specific data exists for the Philippine
market, Japan spent around $1.61 billion on
shipping costs in 2009. Since Japan spends twice
as much on oil imports, it is estimated that
Philippine shipping costs in the same period was
at around $700-$800 million mark.

Location of Major Crude Ports
Crude Storage
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Crude Storage
When the crude oil reaches the Philippines, it is stored
in oil depots, which are also known as tank terminals.
Major oil depots in Luzon include the Poro Point Oil
Depot in Pampanga, which services Petron, the Caltex
Oil Depot in Albay, which services Chevron, and the
Pandacan Oil Depot, which services Chevron, Shell and
Petron.
Outside of Luzon are other major oil depots, such as the
Shell Oil Depot in Leyte, the Petron oil depot in Iloilo
and the Chevron oil depot in General Santos City.
Major Oil Depots in the Philippines
(In Red)
Crude Storage
The current trend in
the Philippines has
been to construct oil
depots outside of
Luzon. SEAOIL, for
instance, has recently
opened a 41 million
liter depot in the
southern province of
Davao in March of
2014.
Downstream Processes
Petroleum Supply Chain
Refining
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Refining
Tabangao, Batangas
refinery of Pilipinas Shell
Petroleum Corporation
(Capacity: 93,000
barrels/day)
Limay, Bataan refinery
of Petron Corporation
(Capacity: 188,000
barrels/day)
Refineries in the Philippines
Refining
As to the production mix in the
country, in 2012, the
Philippines produced 164,700
barrels per stream day
(MBSD), in contrast to a total
of 303,300 MBSD demanded.

Refining
6.80%
14.30%
5.60%
8.90%
37.50%
19.00%
7.90%
Refined Oil Products
LPG
Premium Gasoline
Regular Gasoline
Kerosene
Diesel
Fuel Oil
Miscellaenous
Oil Refineries in Luzon (in Red)
Product Transportation
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Product Transportation
Crude oil is transported by oil tankers into
the country.
The crude oil is refined in either of the
two operating refineries.
The finished products take one of two
general routes depending on the
destination.
Transportation of petroleum in the Philippines
Product Transportation
Oil depots of Chevron Philippines and Pilipinas
Shell generally take receipt of products
through barges and the 117 kilometer-long
white oil pipeline owned by First Philippine
Industrial Corporation.
The commercial pipeline runs from the Shell
refinery in Tabangao to Manila, along with its
complementing black oil pipeline which
carries bunker fuel to Sucat.
Limay-Manila Route
Tabangao-Manila Route

Product Transportation
On the other hand, deliveries to oil depots of
the Petron Corporation and small
independent retailers are facilitated through
truck tankers.
Finally, LPG follows a slightly different route in
how it is transported first by lorries to
designated refilling stations, where it is
partitioned into retail containers. Trucks then
bring these containers to independent
retailers and gas stations
Product Storage
Photo credit to http://fuelsandlubes.com
Product Storage
Focused on just
distribution
Maintains 22 oil depots
around the country
Owns over 30 oil depots
Product Storage
Arguably, the most relevant oil depot to the
National Capital Region is the complex at
Pandacan, Manila. Pandacan district houses depots
of all three major oil companies, and serves as the
endpoint of the aforementioned FPIC pipeline.
Product Storage
City of Manila ordered
relocation of Pandacan
Oil Depot by 2026.
Move done in light of
safety concerns
Potential impact on oil
supply in Metro Manila
if alternative location
not developed quickly
Product Storage
Current oil supply at 44 days worth of oil at
any given time.
35 days worth of oil in storage, 9 days worth
of oil in transit.
Government requirement at 30 days.
Key Agencies and
Institutions
Petroleum Supply Chain
Key Agencies and Institutions
Republic Act 8180, otherwise known as An Act
Deregulating the Downstream Oil Industry, and for
Other Purposes, gives authority of oversight to
pertinent agencies of the executive branch. Their
corresponding responsibilities are listed as follows:
Key Agencies and Institutions

Department of Energy (DOE)
- monitors and publishes daily international oil
prices
- monitors manufacturing, refining and
marketing processes to ensure safety and
cleanliness
- maintains periodic schedule of national fuel
inventory
Key Agencies and Institutions

Department of Justice (DOJ)
- in conjunction with DOE, forms a
special task force to address
complaints of unreasonable rises
in fuel price
Key Agencies and Institutions

Department of Trade and
Industry (DTI)
- in conjunction with DOE,
ensures fair trade in the
subsequently deregulated
downstream oil industry
Key Agencies and Institutions

Bureau of Product Standards
(BPS)
- in conjunction with DOE, sets
and enforces national standards
of fuel quality
Key Agencies and Institutions

Energy Regulatory Board (ERB)
- sets wholesale prices of oil during
transition phase mandated by R.A. 8180
- was refocused on electric power after
full deregulation and eventually
superseded by Energy Regulatory
Commission as provided for by Electric
Power Industry Reform Act of 2001
Petroleum Issues
Petroleum Supply Chain
Petroleum Issues
Metro Manila relatively has an ample reserve
of oil, which can be used in the event of a
natural calamity.
However, since almost all of the Philippines
oil enters the country through seaports
located in Bataan and Batangas, a strong
enough storm can hamper ships from
unloading their supply.
Petroleum Issues
A natural calamity that damages seaport
infrastructure can also hamper efforts to
deliver fuel to the Philippines even long after
it has become safe for ships to sail again.
Due to the proximity of key depots and
refineries to Metro Manila, a calamity that hits
Luzon will most likely have a devastating
impact on the fuel supply.

Petroleum Issues
Calamities that affect the refineries in Luzon
will hinder the Philippiness ability to refine
petroleum products which in turn affects not
only Metro Manila, but also the fuel supply in
other parts of the country
End
Petroleum Supply Chain