Peak Oil News: Indonesia concerned over declining oil output

Friday, August 24, 2007

Indonesia concerned over declining oil output

People's Daily Online

The Indonesian government expressed concern Friday over the continued decline in oil production in the last 10 years that could cause the budget to miss revenue target.

"The current production hovers around 900,000 barrels per day, and we have set a target of 1.03 million barrels per day for the 2008. Any loss of just 0.1 (percent) from the target would cost us one trillion rupiah (around 106.5 million U.S. dollars)," Finance Minister Sri Mulyani Indrawati said at her office here.

The oil production target was slightly raised on hope of a significant production rise from the major Cepu oil block in East Java.

A decade ago, Indonesia enjoyed high oil output of 1.3 million barrels per day to become one of the world's major oil exporters, but has since seen production keeps falling due to natural depletion and lack of new investment in the sector.

Although Indonesia is closer to become a net oil importer, it retains membership in the Organization of Petroleum Exporting Countries (OPEC).


At 8:41 AM, August 25, 2007, Anonymous Anonymous said...

It's hard to beleave that so many people just don;t have a clue as to why the prices of everything are rising so fast and so much,,,many energy intensive companys are being caught by surprise,,,, fare well everybody i don't think our economic structure can take much more of this,,,,,,,freezingtoes,,,,,,,,,

At 6:52 AM, August 26, 2007, Blogger IvanPW said...

That's true, sadly. The more irritating thing is that the fact that the people of Indonesia themselves are not able to enjoy the wealth resulted from the oil explorations. Perhaps the gov't should learn from OilPods of Singapore and PRVB of US - they let small investors invest in and enjoy the income from the partial ownership of oil/gas fields. (


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