Indonesia is Running Out of Oil

From Maritime Executive

Indonesia’s ANTARA News reports that a government official has stated that most of Indonesia’s oil and gas supplies are almost exhausted and that increased consumption cannot be sufficiently overcome by the country’s production.

“Most of our oil and gas supply is almost exhausted but we have been acting so far as if we still had a lot of oil and gas resources,” Secretary of the Upstream Oil and Gas Regulator Special Task Force (SKKMigas) Gde Pradnyana reportedly stated.

Therefore, he noted that oil and gas exploration remains necessary because the remaining reserve is now only about 3.6 billion barrel. “The volume of our oil and gas reserves is very limited, and therefore we have to make an all out campaign for intensive exploration to increase the existing reserves,” he said. The country faces three major obstacles: licensing, taxation and legal certainty, he said.

Indonesia’s drop in output has turned what was once Southeast Asia’s largest crude producers into a net importer of oil, leading it to withdraw from the Organization of Petroleum Exporting Countries in 2008.

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