I.    Conceptual Framework

The Energy Accounts of the Philippines is a publication that presents the physical and monetary asset accounts of the country’s energy resources, namely: coal, oil, natural gas, and condensate. The accounts are updated on an annual basis.

The System of Environmental-Economic Accounting 2012 Central Framework (SEEA-CF) serves as the framework for this study. It is a multipurpose conceptual framework that quantitatively describes the interaction between the environment and the economy. It is also a statistical framework that consists of a comprehensive set of tables and accounts, which guides the compilation of consistent and comparable statistics and indicators for policymaking, analysis, and research.

The SEEA Central Framework covers measurement in three main areas: (1) the flows of resources within the economy and between the economy and the environment; (2) the economic activity and transactions related to the environment; and (3) the stocks and the changes in stocks of environmental assets, such as energy resources, which is the focus of this compilation.

The accounts provide information on the available stocks of the four non-renewable energy resources at the start and end of each year, as well as the changes that occurred during the period. These energy resources were also classified following the United Nations Framework Classification for Fossil Energy and Mineral Resources (UNFC-2009) as follows:      
Class A, commercially recoverable resources; Class B, potentially commercially recoverable resources; and Class C, non-commercial and other known deposits.

A basic physical asset account for energy resources is compiled by type of resources, each with the same unit of measurement, and by class of resources.

The structure of the monetary asset account is similar to that of the physical asset account but with an additional entry: revaluations. It is recommended to value only Class A deposits in monetary terms.      
 

II. Data Sources     
The data for estimating the physical and monetary asset accounts were gathered from the following:

III. Estimation Methodology    
A. Physical Asset Accounts

1. Encode the available inventory/stock data and annual production data by region for coal and by service contracts for oil, natural gas, and condensate.
2. Determine the year of discovery based on the energy resource inventory and information on the service contracts.
3. Estimate the opening stocks, closing stocks and reappraisals (balancing item using residual method) based on the available data.
4. Determine the appropriate class using the criteria discussed in the next section and identify the timepoints when reclassifications occurred.
5. Consolidate the results by class.

B. Monetary Asset Accounts

1. Calculate the ratios of compensation of employees, consumption of fixed capital, and taxes less subsidies to gross output by   
   sub-industry using the Input-Output Table.
2. Estimate the annual compensation of employees, consumption of fixed capital, and taxes less subsidies using the results from Step 1.
3. Compute Gross and Net Operating Surplus.
4. Collect data on the book value of fixed assets, total revenue, and interest expense from the ASPBI. Calculate ratio of book value of fixed assets to total revenue (i.e., Ratio_BVFA) and interest expense to total revenue (i.e., Ratio_IE).

5. Compute Return to Produced Assets.

   

6. Compute the Resource Rent.

   
   

7. Derive the asset life for each resource.

   
   

8. Compute the resource value using the Net Present Value (NPV) method and unit resource value.  
    
   where RR is the resource rent  
                r is the discount rate  
                t is the asset life  
   
   
9. Multiply the unit resource value to the entries in the Class A physical asset account to come up with the monetary asset accounts. Estimate the revaluations using residual method.

C.    Operationalized Classification Criteria

The classification of coal resources was based on the localized UNFC-2009 used for the compilation of the Mineral Accounts of the Philippines through the Wealth Accounting and the Valuation of Ecosystem Services (WAVES) Project. Moreover, the classification of oil, natural gas, and condensate resources was based on the Philippine Petroleum Resource Classification System. 

IV. Definition of Terms

a.    Asset is a store of value representing a benefit or series of benefits accruing to an economic owner by holding or using the entity over a period of time. It is a means of carrying forward value from one accounting period to another.

b.    Environmental assets are naturally occurring living and non-living components of the Earth, together constituting the biophysical environment, which may provide benefits to humanity.

c.    Individual environmental assets are assets that may provide resources for use in economic activity. They comprise mineral and energy resources, land, soil resources, timber resources, aquatic resources, other biological resources, and water resources.

d.    Catastrophic losses rarely occur with energy resources. Catastrophes such as collapsing of mines may occur but this does not reduce the stocks of the resources.

e.    Depletion, in physical terms, is the decrease in the quantity of the stock of a natural resource over an accounting period that is due to the extraction of the natural resource by economic units occurring at a level greater than that of regeneration.

f.    Discoveries are additions representing the arrival of new resources to a stock and commonly arise through exploration and evaluation.

g.    Extractions are reductions in stock due to physical removal or harvest of an environmental asset through a process of production.

h.    Energy resources comprise known deposits of coal, oil, and natural gas resources.

i.    Reappraisals reflect changes in the measured stock of assets due to the use of updated information that permits a reassessment of the size of the stock.

j.    Reclassifications are changes in assets that result from situations in which an asset is used for a different purpose. A reclassification of an asset in one category should be offset by an equivalent reclassification in another category.

k.    Resource rent is the surplus value accruing to the extractor or user of an asset calculated after all costs and normal returns have been taken into account.

l.    Revaluations relate to changes in the value of assets due to price changes. 

_{Source: System of Environmental-Economic Accounting 2012 Central Framework} 
 

V.    Dissemination of Results and Revision

The Energy Accounts of the Philippines is updated annually in the PSA website. The web release materials include press release, statistical tables, and infographics.

List of Statistical Tables: 
Coal 
Table 1.1 Physical Asset Account: Class A Coal Reserves 
Table 1.2 Physical Asset Account: Class B Coal Reserves 
Table 1.3 Physical Asset Account: Class C Coal Reserves 
Table 1.4 Physical Asset Account: Total Coal Reserves 
Table 1.5 Amount of Coal Reserves by Class 
Table 1.6 Monetary Asset Accounts: Class A Coal Reserves

Oil 
Table 2.1 Physical Asset Account: Class A Oil Reserves 
Table 2.2 Physical Asset Account: Class B Oil Reserves 
Table 2.3 Physical Asset Account: Class C Oil Reserves 
Table 2.4 Physical Asset Account: Total Oil Reserves 
Table 2.5 Amount of Oil Reserves by Class 
Table 2.6 Monetary Asset Accounts: Class A Oil Reserves

Natural Gas 
Table 3.1 Physical Asset Account: Class A Natural Gas Reserves 
Table 3.2 Physical Asset Account: Class B Natural Gas Reserves 
Table 3.3 Physical Asset Account: Class C Natural Gas Reserves 
Table 3.4 Physical Asset Account: Total Natural Gas Reserves 
Table 3.5 Amount of Natural Gas Reserves by Class 
Table 3.6 Monetary Asset Accounts: Class A Natural Gas Reserves 

Condensate 
Table 4.1 Physical Asset Account: Class    A Condensate Reserves 
Table 4.2 Physical Asset Account: Class B Condensate Reserves 
Table 4.3 Physical Asset Account: Class C Condensate Reserves 
Table 4.4 Physical Asset Account: Total Condensate Reserves 
Table 4.5 Amount of Condensate by Class 
Table 4.6 Monetary Asset Accounts: Class A Condensate Reserves

Resource Rent 
Table 5.1 Non-Renewable Energy Resource Rents 
Table 5.2 Non-Renewable Energy Resource Rents as % of GDP 
 

VI.    Citation

Philippine Statistics Authority. (17 October 2024). Technical Notes on the Energy Accounts of the Philippines: Asset Accounts.  
https://psa.gov.ph/content/philippines-class-coal-oil-natural-gas-and-condensate-reserves-valued-php-31765-billion 
 

VII.    Contact Information

Ms. Virginia M. Bathan 
Chief Statistical Specialist  
Environment and Natural Resources Accounts Division 
(632) 8376-2041 
enrad.staff@psa.gov.ph

For data request, you may contact: 
Knowledge Management and Communications Division 
(632) 8462-6600 locals 839, 833, and 834 
info@psa.gov.ph