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Jakarta Post

The oil party is not over yet, next is energy security

  • Winarno Zain

Jakarta   /   Tue, April 3 2012   /  08:00 am

Indonesia is rich in natural resources, but certainly not in oil. The nation’s oil production has been declining over the last decade.

In 2008, we could still produce 357.5 million barrel of oil a year, but last year we only produced 219 million barrels.

It was a dramatic decline, but strangely, nobody seemed to care. Experts have estimated that since there won’t be any significant oil discoveries, our oil reserves would last until 2020, if the current rate of exploitation is maintained.

By that time, which is eight
years away, our oil needs would be met — if not entirely than most of it — by imports.

Further, it is getting more difficult to persuade oil companies to invest in exploration here. They are reluctant to come here. Not only are the prospective locations for exploration located in remote areas that need big investment with higher risk...