The Oil & Gas Year Indonesia 2012
With one of the oldest oil and gas industries in the world, Indonesia has led the way in several practices that are commonplace today. A Dutch colony for nearly three centuries, Indonesia made its first oil discovery in North Sumatra in 1883, leading to the establishment of Royal Dutch Shell in 1890. In the 1990s, oil production peaked, with output surpassing 1.6 million barrels per day. Since then, production has steadily declined until the country finally became a net importer of oil in 2004, leaving OPEC in 2008.
To reverse this trend, the nation has laid out an ambitious plan to increase production to 1 million barrels per day by 2014, by introducing several incentives to increase exploration from in new areas while maximising production from already producing fields. Currently, the country’s oil reserves are at 4.2 billion barrels and gas at 2.9 tcm (104.4 tcf).
While the reality of Indonesia’s position as a significant regional power has largely been eclipsed by India and China’s astounding growth, the country is beginning to receive growing international attention. Increasing growth and a political system with rapidly developing stability are beginning to draw praise, sovereign rating upgrades as well as FDI.
With diminishing oil reserves, increasing domestic energy demands and vast, untapped conventional and unconventional gas wealth, Indonesia is gradually reorienting itself towards its gas wealth to meet domestic and export demands. The Oil & Gas Year Indonesia 2012 pays particular attention to the country’s multiple paradigm shifts, as it transitions from a major oil producer to a major gas producer, moves exploration from the heavily explored western areas to the frontier eastern areas and repositions itself as a global unconventional energy powerhouse.
After six months of research in the field, The Oil & Gas Year Indonesia 2012 explores the opportunities, issues and challenges faced by the country’s oil and gas community. While offering an array of statistics and maps, as well as articles and interviews with some of the leading figures in the industry, the publication acts as the most complete and up-to-date guide to Indonesia’s energy industry.