"Indonesia's crude oil production decline"

"Indonesia's crude oil production decline"

In May 2008, President Yudhoyono of Indonesia said OPEC's withdrawal, and on September 9, at the OPEC's formal meeting, the withdrawal was confirmed. If It would increase crude oil production again, Indonesia will be able to seek to OPEC member.

Indonesian Parliament is challenging to the proposition that the country's prestige on the oil production still remain. Pertamina and representatives of foreign companies are called every day to the Parliament, and the discussions of oil production forecasts have been made. Legislator criticized the foreign companies. They are accusing the foreign companies for their oil production decrease by pointing out that the state-run company Pertamina has the 2009 production forecast to increase at 6 percent.

PT Chevron Pacific Indonesia reported this year's production forecast, 408,000 barrel per day (bpd) from the downward revision to 405,000 bpd, and the figure of 425,000 bpd last year, so with a considerable drop. Other foreign companies are all below the previous year's results, against PT Pertamina's expectation in 2009 as the year-ago results from the 118,221 bpd and 125,000 bpd increase by 6 percent and that the parliament has the sharp reaction.

The government predicts, against, this year, the 2008 production of 977,000 bpd, 950,000 bpd of production in 2009. Parliament is requesting to the government to correct this expectation of decline, but the government is resisting this request. Energy and Mineral Resources Ministry's director general of oil and gas, Ms. Evita H. Legowo is insisting that the government's goal is the development of alternative energy resources.

"Indonesia was a member of OPEC in 1962, and, in 1976, oil production was at its peak. 20 years after its 1995, crude oil production was declining started in 2005 with a net importer of crude oil. Current production is a million barrels a day below as stated before." It is said that the drop of Indonesian crude oil production symbolizes the world oil decline in the near future.

Today it is reported that OPEC will respond to a sharp drop in oil prices, by a substantial reduction of production. The six-month crude oil price movement is severe. On January 2008, the price of 70 dollars a barrel recorded to 147 dollars in July. However, reflecting the fall in world economy over the past two months, the price is falling to 105 dollar level. The future of crude oil is steep indeed. The world demand for crude oil is 86,760,000 bpd.

Reference
September 10, 2008

Philippines
●080910A Philippines, Manila BulletinIn northwest offshore Palawan Nido Petroleum starts oil drilling http://www.mb.com.ph/BSNS20080910134745.html

Nepal
●080910B Nepal, nepalnews‘No need for two-third majority in parliament on West Seti’http://www.nepalnews.com/archive/2008/sep/sep10/news01.php

India
●080910C India, Economic TimesOIL plans $1.5-b coal-to-liquid project in Assamhttp://economictimes.indiatimes.com/News/News_By_Industry/Energy/OIL_plans_15-b_coal-to-liquid_project_in_Assam/articleshow/3464741.cms

Indonesia
●080910D Indonesia, The Jakarta PostChevron forecasts drop in oil outputhttp://www.thejakartapost.com/news/2008/09/09/chevron-forecasts-drop-oil-output.html