• Latest
  • Trending
Indonesia’s dwindling oil industry

Indonesia’s dwindling oil industry

December 27, 2018
Pakistan PM: Will sit on opposition benches if loses confidence vote

Pakistan PM: Will sit on opposition benches if loses confidence vote

March 5, 2021
Pakistan: Maryam Nawaz prevails in elections

Pakistan: Maryam Nawaz prevails in elections

March 5, 2021
Putin May Have Triggered an Attempted Coup in Armenia

Putin May Have Triggered an Attempted Coup in Armenia

March 1, 2021
Karma the Hollywood curse

Karma the Hollywood curse

March 1, 2021
Hyatt Hotels responds to calls for boycotts over hosting CPAC

Hyatt Hotels responds to calls for boycotts over hosting CPAC

March 1, 2021
Explosion strikes Israeli ship in Mideast raises tension

Explosion strikes Israeli ship in Mideast raises tension

February 28, 2021
Can Asia help Myanmar find a way out of coup crisis?

Can Asia help Myanmar find a way out of coup crisis?

February 28, 2021
Athens Travel destination post Covid

Athens Travel destination post Covid

February 27, 2021
Enforcing Regulations for Forest Risk Commodities

Enforcing Regulations for Forest Risk Commodities

February 27, 2021
Police Scotland offered oil rig to train for protest-plagued North Sea

Police Scotland offered oil rig to train for protest-plagued North Sea

February 27, 2021
Young car enthusiasts spend $7.2 billion a year customizing vehicles

Young car enthusiasts spend $7.2 billion a year customizing vehicles

February 20, 2021
Indonesian billionaire family in the crosshairs of corruption reporting

Indonesian billionaire family in the crosshairs of corruption reporting

February 11, 2021
citizendaily
  • Asia News
    • Northeast Asia
      • China
      • Japan
    • North Korea
    • Oceania
      • Australia
      • New Zealand
    • South Asia
      • Afghanistan
      • Bangladesh
      • India
      • Pakistan
    • Southeast Asia
      • Indonesia
      • Malaysia
      • Philippines
      • Singapore
      • Thailand
  • World News
    • Africa
    • Europe
      • Germany
      • United Kingdom
    • Latin America
      • Cuba
      • Mexico
    • Middle East
      • Gulf States
      • Iran
      • Iraq
      • Saudi Arabia
      • Syria
    • North America
      • Canada
      • United States
    • Russian Federation
  • Economy
    • Brexit
    • Free Market
  • Politics
    • ASEAN
    • Diplomacy
    • ISIS
    • National Defence & Security
  • Editorial
  • Environment
    • Climate Change
    • Forests
    • Water & Oceans
    • Wildlife & Endangered Species
  • Lifestyle
    • Books & Literature
    • Entertainment
    • Food & Dining
    • Religion
    • Travel
    • Tech
  • Sports
No Result
View All Result
Saturday, March 6, 2021
  • Asia News
    • Northeast Asia
      • China
      • Japan
    • North Korea
    • Oceania
      • Australia
      • New Zealand
    • South Asia
      • Afghanistan
      • Bangladesh
      • India
      • Pakistan
    • Southeast Asia
      • Indonesia
      • Malaysia
      • Philippines
      • Singapore
      • Thailand
  • World News
    • Africa
    • Europe
      • Germany
      • United Kingdom
    • Latin America
      • Cuba
      • Mexico
    • Middle East
      • Gulf States
      • Iran
      • Iraq
      • Saudi Arabia
      • Syria
    • North America
      • Canada
      • United States
    • Russian Federation
  • Economy
    • Brexit
    • Free Market
  • Politics
    • ASEAN
    • Diplomacy
    • ISIS
    • National Defence & Security
  • Editorial
  • Environment
    • Climate Change
    • Forests
    • Water & Oceans
    • Wildlife & Endangered Species
  • Lifestyle
    • Books & Literature
    • Entertainment
    • Food & Dining
    • Religion
    • Travel
    • Tech
  • Sports
No Result
View All Result
citizendaily
No Result
View All Result

Indonesia’s dwindling oil industry

December 27, 2018
in Asia News, Business, Environment, Featured, Indonesia, Southeast Asia
0
Home Asia News
Post Views: 105

 

The oil and gas industry has seen turbulent times over the last 10 years, with the 2008 financial crisis as a turning point for the industry as a whole. Oil prices peaked at US$145 per barrel during that period, declining by more than 70 percent by the end of the year to US$40 per barrel. Though prices returned to normal by 2011 and stabilized until mid-2014, another crisis in June 2014 ensured that the oil industry would never be the same.

One of the victims of the volatile oil market has been Indonesia. Indonesia’s oil and gas sector used to be one of the highest contributors to the Indonesian economy. Just over 10 years ago, PwC data from a report titled Oil and Gas in Indonesia 2017 revealed that the oil and gas industry contributed about US$45.6 billion to the Indonesian economy, accounting for at least 20 percent of state revenue from 2004 to 2006.

The contribution of oil and gas to Indonesia’s national revenue experienced the sharpest decline during the oil crisis which occurred during 2014 to 2015. Due to falling demand for oil, as well as an oversupply of the commodity, prices dropped from US$115 a barrel in June 2014 to under US$35 per barrel at the end of February 2016, according to a report by Kenneth Rogoff on the World Economic Forum in 2016. By 2014, the oil and gas sector accounted for only 14 percent of national revenue, dropping further to 4 percent in 2015 and a mere 3 percent in 2016.

RelatedPosts

BP Says Oil Demand Could Be Almost Dead By 2050

Big Oil Prepares to Suffer in 2020

Nearly two dozen face federal charges for Greenpeace protest that shut down Houston Ship Channel

Despite a growing economy with increasing demand for energy, the oil and gas sector in the country is shrinking, with its glory days long past. According to an analysis of Indonesia’s oil and gas sector last August, investment for oil and gas exploration in Indonesia contracted to US$100 million in 2016, down from US$1.3 billion in 2012.

Experts noted that Indonesia has already launched initiatives to revitalise the sector, citing the nation’s Energy and Mineral Resources minister, Ignasius Johan, who anticipates US$200 billion in investment over the next 10 years through the offering of incentives such as tax-free imports of drilling equipment and cost recovery. However, Southeast Asian oil analyst, Johan Utama says that Indonesia’s constantly changing regulations paint a picture of an unstable industry, which would actually serve to drive investors away.

PwC’s Oil and Gas in Indonesia 2017 report also highlighted that Indonesia is facing a depletion in oil resources, and is facing difficulty discovering new reserves as well. In a way, this may represent a chance for Indonesia to move away from fossil fuels and to invest further in renewable energy.

Indonesia is already trying to refocus its efforts towards consolidating its geothermal resources. At the moment, according to the International Energy Agency (IEA), Indonesia is the third-largest geothermal power producer in the world. The Energy Ministry plans to raise the nation’s geothermal production capacity to 5,000 MW by 2025. The increase in geothermal energy could see a decrease in Indonesia’s reliance on oil.

Aside from that, the government has announced that it is looking to convert old oil refineries into biodiesel plants. The government is hoping that this move would reduce energy imports and improve the country’s current account deficit.

The International Renewable Energy Agency (IRENA) also noted in a 2017 report that Indonesia has set a goal to achieve 23 percent renewable energy use in its total energy supply by 2025, with the target rising to 31 percent by 2050. According to the IRENA report, Indonesia has the potential to meet its target even sooner, by 2030. IRENA also notes that an accelerated pursuit of Indonesia’s target could see associated economic benefits to the country as a whole. These include the reduction of energy systems costs as well as the costs of air-pollution and carbon-dioxide emissions, which would help the country save up to US$53 billion per year by 2030 – about 1.7 percent of its projected gross domestic output in 2030.

IRENA also pointed out, however, that investing in renewable energy will be expensive. Perhaps instead of focusing on trying to restore the nation’s oil and gas industry to its OPEC glory days, Indonesia could shift its energy and resources towards trying to consolidate its renewable energy sector. Such a move would not only save costs, it would also be beneficial for future generations to come.

Source :
The Asean Post
Tags: IEAIgnasius JohanIRENAoil industry
Previous Post

India’s longest road-rail bridge opened near China border

Next Post

China would be unwise to follow the U.S. and turn inward

Related Posts

Pakistan PM: Will sit on opposition benches if loses confidence vote
ASEAN

Pakistan PM: Will sit on opposition benches if loses confidence vote

March 5, 2021
Pakistan: Maryam Nawaz prevails in elections
ASEAN

Pakistan: Maryam Nawaz prevails in elections

March 5, 2021
Putin May Have Triggered an Attempted Coup in Armenia
Bilateral

Putin May Have Triggered an Attempted Coup in Armenia

March 1, 2021
Hyatt Hotels responds to calls for boycotts over hosting CPAC
Asia News

Hyatt Hotels responds to calls for boycotts over hosting CPAC

March 1, 2021
Explosion strikes Israeli ship in Mideast raises tension
Asia News

Explosion strikes Israeli ship in Mideast raises tension

February 28, 2021
Can Asia help Myanmar find a way out of coup crisis?
ASEAN

Can Asia help Myanmar find a way out of coup crisis?

February 28, 2021
Next Post
China would be unwise to follow the U.S. and turn inward

China would be unwise to follow the U.S. and turn inward

Translate

Subscription

Popular Post

Pakistan PM: Will sit on opposition benches if loses confidence vote
ASEAN

Pakistan PM: Will sit on opposition benches if loses confidence vote

March 5, 2021
0

  Islamabad (5/3 – 45.45). Prime Minister Imran Khan said on Thursday that he is going to seek the vote of confidence...

Read more

NGOs call for mass boycott of palm oil giant IOI

June 29, 2016
No peace for Greenpeace

No peace for Greenpeace

July 1, 2016

The Case Against Greenpeace

July 1, 2016
Children in ISIS Nusantara Media Outreach

Children in ISIS Nusantara Media Outreach

July 2, 2016
  • About Us
  • Creative Commons
  • Privacy Policy
  • Terms & Conditions
  • Disclaimer
  • Contact Us

Topics

Follow Us

About Us

citizendaily.news is part of the citizen Daily Media Group LLC, which delivers daily news around the globe. ​

© 2012 The Citizen Daily

No Result
View All Result
  • Asia News
    • Northeast Asia
      • China
      • Japan
    • North Korea
    • Oceania
      • Australia
      • New Zealand
    • South Asia
      • Afghanistan
      • Bangladesh
      • India
      • Pakistan
    • Southeast Asia
      • Indonesia
      • Malaysia
      • Philippines
      • Singapore
      • Thailand
  • World News
    • Africa
    • Europe
      • Germany
      • United Kingdom
    • Latin America
      • Cuba
      • Mexico
    • Middle East
      • Gulf States
      • Iran
      • Iraq
      • Saudi Arabia
      • Syria
    • North America
      • Canada
      • United States
    • Russian Federation
  • Economy
    • Brexit
    • Free Market
  • Politics
    • ASEAN
    • Diplomacy
    • ISIS
    • National Defence & Security
  • Editorial
  • Environment
    • Climate Change
    • Forests
    • Water & Oceans
    • Wildlife & Endangered Species
  • Lifestyle
    • Books & Literature
    • Entertainment
    • Food & Dining
    • Religion
    • Travel
    • Tech
  • Sports

© 2012 The Citizen Daily