. Energy News .

Indonesia's oil output declines
by Staff Writers
Jakarta (UPI) Aug 11, 2011

disclaimer: image is for illustration purposes only

Indonesia's BPMigas oil and gas regulator says that national fields are in decline.

Apparently confirming that Indonesia's oil production has hit a decline as predicted by "peak oil" proponents, BPMigas spokesman Gde Pradnyana said Indonesia will have to reduce its dependency on oil.

He said the country will take steps to shift to natural gas from oil.

"We're currently just trying to maintain the current oil production so that it will not drop sharply," Gde told The Jakarta Post.

"The discovery of oil fields in the next five to seven years will be difficult, especially those that can produce as much as the Cepu Block. The future projects will be mostly gas operations."

Gde, however, said he remains upbeat however about the country's long-term prospects.

He told the Post that Indonesia has 10 oil and gas projects with a total investment of $4.7 billion, expected to come on-stream through 2014.

"This reflects that the future of Indonesia's oil and gas industry will be dominated by gas," Gde said.

The projects are expected to produce 1.75 million cubic feet of gas per day, 20,000 barrels of oil per day and 26,000 barrels per day of oil condensate, Gde said.

Indonesia, formerly a member of the Organization of Petroleum Exporting Countries, has been struggling with both declining oil output from aging oilfields, some of which date to the late 19th century, and rising demand for natural gas, which is limiting its gas export potential.

Indonesia was until recently Southeast Asia's only member of OPEC, and the oil price rises following the 1973 OPEC boycott provided an export revenue windfall that contributed to sustained high economic growth rates, averaging more than 7 percent from 1968 through 1981.

Indonesia left OPEC three years ago, half a decade after it became a net oil importer.

During World War II, oil production in the Dutch East Indies was considered crucial for the Japanese war effort, which conquered them in early 1942.

In early 2011 the Indonesian government projected that the country's oil production would reach 970,000 barrels of oil per day but cut the target to 945,000 barrels of oil per day because most of the foreign and indigenous major oil companies failed to reach production goals.

BPMigas recently noted that over the past decade Indonesia's proven oil reserves had declined by 2.4 percent per year. While last year Indonesia produced 344 million barrels of oil, new discoveries totaled 140 million barrels.

Related Links
Powering The World in the 21st Century at Energy-Daily.com

Get Our Free Newsletters Via Email
Buy Advertising Editorial Enquiries

. Comment on this article via your Facebook, Yahoo, AOL, Hotmail login.

Share this article via these popular social media networks
del.icio.usdel.icio.us DiggDigg RedditReddit GoogleGoogle

Kenya's key to South Sudan oil exports
Nairobi, Kenya (UPI) Aug 11, 2011
The fate of newly independent South Sudan may hinge on a September conference in Kenya to drum up funding to build a $22 billion port and oil terminal on the Indian Ocean coastline. The facility at Port Lamu, Kenya, would provide the world's youngest state, born July 9 when it seceded from Sudan, with an export route for its oil, South Sudan's economic lifeline. Before the divisi ... read more

Iraq power plans short-circuit

Boeing And Siemens Form Strategic Alliance for DOD Energy Modernization

Iraq PM moves to fire minister over power deals

Japan's power supply dilemma

Indonesia's oil output declines

Dutch court halts work on gas project

Peak Oil And Public Health: Political Common Ground

Slovenia slams Italy's Trieste LNG plans

Offshore wind power in the North Sea offer huge potential but enormous challenges

Scotland offshore wind farm ready to go

US fund Blackstone plans two big German wind farms

European wind power output tipped to treble by 2020: report

Hybrid solar system makes rooftop hydrogen

Largest solar plant approved for Calif.

Solar use in Sydney soars

Solar cells get a boost from bouncing light

Germany's EON hit by historic quarterly loss, plans job cuts

Japan to set up new nuclear watchdog

Japan's TEPCO reports loss of $7.4 billion

Japan's TEPCO logs $7.4bn quarterly loss

Metabolism in reverse: Making biofuels at full-throttle pace

To avoid carbon debt CRP beats fields of corn and soybeans

Report: Algae as fuel presents problems

High Energy Output From Algae-Based Fuel No Silver Bullet

Toys for Tiangong

Why Tiangong is not a Station Hub

China to launch experimental satellite in coming days

Spotlight Time for Tiangong

Thousands struggle in Ethiopia's "green drought"

US urges more aid to famine-hit east Africa

Aerosols affect climate more than satellite estimates predict

Fleeing famine, Somalis queue patiently for a cooked meal

Memory Foam Mattress Review
Newsletters :: SpaceDaily Express :: SpaceWar Express :: TerraDaily Express :: Energy Daily
XML Feeds :: Space News :: Earth News :: War News :: Solar Energy News

The content herein, unless otherwise known to be public domain, are Copyright 1995-2011 - Space Media Network. AFP and UPI Wire Stories are copyright Agence France-Presse and United Press International. ESA Portal Reports are copyright European Space Agency. All NASA sourced material is public domain. Additional copyrights may apply in whole or part to other bona fide parties. Advertising does not imply endorsement,agreement or approval of any opinions, statements or information provided by Space Media Network on any Web page published or hosted by Space Media Network. Privacy Statement