2.2 Department of Energy (DOE)

 The Department is mandated by RA 7638 (Department of Energy Act of 1992) to prepare, integrate, coordinate, supervise and control all plans, programs, projects and activities of the Government relative to energy exploration, development, utilization, distribution and conservation.
       

Within the next decade, by encouraging greater private sector participation and in partnership with our stakeholders, the DOE plans to:

* Achieve total and reliable energization and energy self-sufficiency;
* Develop Philippine indigenous and renewable resources;
* Actively promoted sustainable and efficient use of energy as well as the utilization of cleaner energy and technologies;
* Developed alternative fuels for commercial applications; and
* Successfully implemented reforms in the energy sector which have brought about a competitive environment, consumer satisfaction and empowerment.

The Petroleum Board

The predecessor office of the Department of Energy was the Petroleum Board which was created under Section 17 of Senate 531 which was promulgated into law by P.D. 8, dated October 2, 1972 which decreed the law to govern oil exploration and development in the Philippines. The Board was composed of the Secretary of Agriculture and Natural Resources, as Chairman, and the Undersecretaries of Finance and Justice, the Chairman of the Board of Investments, and the Director of Mines as members. The Director of Mines was the Executive Officer of the Board.

P.D. 8 was amended by P.D. 87, otherwise known as "The Oil Exploration and Development Act of 1972", which was issued on December 31,1972. Under P.D. 87, the Board was composed of the President of the Philippine National Oil Company as Chairman, and the Secretary of National Defense, the Executive Secretary, the Secretary of Natural Resources, the Secretary of Finance, the Secretary of Justice, the Secretary of Industry, the Governor of the Central Bank and the Director of Mines as members.

The more salient functions of the Petroleum Board were:

1. Define and give public notice when applicable of the areas available for Service Contract;

2. Enter into Service Contracts with such terms and conditions as may be appropriate under the circumstances including the grant of special allowance. The area covered by a Service Contract was within the range of 50,000 to 750,000 hectares for on-shore areas or from 80,000 to 1,500,000 hectares for off-shore areas;

3. Provide for the manner and form of the income tax payment, the reimbursement of operating expenses, the payment of service fee, and the payment of Filipino participation incentive allowance, if any, in the Service Contract;

4. Make specific proposals to Congress for the grant of subsidy to contractors and petroleum companies at least sixty percent of the capital of which is owned by Philippine citizens, to be derived from the revenue or share that will accrue to the Government in pursuance to the Act;

5. Undertake intensive studies and researches on oil field practices, procedures, and policies;

6. Promulgate such rules and regulations as may be necessary and assess charges for service rendered to implement the intent and provisions of the Act;

7. Within four (4) months after the close of every fiscal year, submit to the President and Legislature an annual report on its activities with appropriate recommendation (Section 18(a) to (h), P.D. 87).

The Energy Development Board

P.D. 910, issued on March 22, 1976, abolished the Petroleum Board and its powers and functions were transferred to the Energy Development Board which was composed of the Secretary of Finance, Secretary of Industry, Secretary of Justice, Secretary of National Defense, Secretary of Economic Planning, Secretary of Natural Resources, and the Chairman of the Philippine National Oil Company. The President of the Philippines designated the Chairman of the Board from among its members.

The officials next in rank to the members of the Board, as designated by them, served as alternate members. They attended the meetings of the Board whenever their principals were absent or their positions were vacant.

The following were the powers and functions of the Board;

1. Formulate policies and implement and coordinate all activities of the government relative to the exploration and development, and extraction of energy resources including fossil fuels such as petroleum, coal, natural gas, and gas liquids; geothermal resources; nuclear fuel resources; and other less conventional existing and potential forms of indigenous energy resources;

2. Establish and administer a comprehensive and integrated program for the exploration, exploitation, development and extraction of fossil and nuclear fuels, geothermal resources, and other less conventional forms of indigenous extracted energy resources;

3. Undertake by itself or through other arrangements such as service contracts, the active exploration, exploitation, development, and extraction of energy resources in selected areas and/or in government reservations;

4. Regulate all activities relative to the exploration, exploitation, development and extraction of fossil and nuclear fuels, geothermal resources, and where necessary, prescribe and collect fees in the exercise of such power;

5. Assess, review and provide direction to energy research and development programs including identification of sources of energy and determination of their commercial feasibility for development;

6. Coordinate, review and approve plans and programs of the Power Development Council which was attached to the Board;

7. Promulgates such rules and regulations as may be necessary to implement the objectives and provisions of the Decree;

8. Exercise all powers necessary or incidental to attain the objectives of the Decree (Section 3 of P.D. 910).

Thus, while the Petroleum Board was tasked to regulate the exploration, development, production and exploitation of indigenous petroleum and natural gas through the Service Contract system, the Energy Development Board had wider powers and functions in the sense that it regulated not only petroleum and natural gas but also coal, geothermal and natural resources and other less conventional forms of indigenous energy resources.