When the price of crude was around $16 to the barrel, small oil fields were not worth the expense and the effort.

But since the price has crossed $145, they are now worth a little fortune. Or at least can help, though in a small way, the country's heavy reliance on fossil fuel.

Rufino Bumasang, acknowledged as one of the top geologists specializing in oil search, told Malaya yesterday that Norasia, a foreign company where he is consultant is preparing to extract crude from the Kalawit area, off the coasts of Palawan.

He said that there are plans to do the same in the Galoc field, also in the area. The area, he said, is a proven oil field with pockets of small deposits.

He estimated that in Kalawit, there could be as much as 20 million barrels of crude deposits.

He explained that deposits of as small as 15 million barrels are worth extracting from deep down the seabed considering the present prohibitive price of crude.

Exxon, on trhe other hand, has announced it will spend big money searching for oil, also off the coasts of Palawan.

According to Bumasang, Norasia, an Australian company, will dig exploratory wells in the Kalawit area.

A confirmation of at least 15 million crude deposits will encourage the company to extract the crude for as long as the price is in the $100 per barrel.

He pointed out that the economics of crude oil is not always in the size of the confirmed deposits.

There is a direct relationship between price and volume of deposits. Small deposits are worth extracting when the price is high but are absolutely useless when the costs of producing the crude is higher than the price.