The Minister Of Energy And Mineral Resources Ensures That The Oil And Gas Sector Still Plays An Important Role In The Energy Transition Era

Minister of Energy and Mineral Resources Arifin Tasrif. (Photo: Maria Trisnawati/VOI)

JAKARTA - Minister of Energy and Mineral Resources (ESDM) Arifin Tasrif revealed that the world's trend in utilizing energy today is more inclined towards the use of cleaner and renewable energy sources.

Indonesia has also committed to making an energy transition to achieve the Net Zero Emission (NZE) target by 2060 or sooner.

During the transition period to NZE, the oil and gas (oil and gas) sector will continue to play an important role in securing energy supply.

In his remarks at the opening of the Indonesia Petroleum Association Conference and Exhibition (IPA Convex) in 2024, Arifin said that according to BP Energy Outlook, the total final consumption, including oil and gas, reached its peak in the mid to late 2020s in the Accelerated and Net Zero scenarios.

"On the other hand, in the New Momentum scenario, which reflects the current world energy system, the total final consumption will increase to around 2040, after which energy consumption will reach a stable point by 2050," said Arifin in Tangerang, Tuesday, May 14.

Arifin said, in 3 energy transition scenarios, namely Accelerated, Net Zero, and New Momentum, oil and gas utilization will still be carried out until 2050, although direct use has decreased due to increased energy efficiency, increased electricity use, and decarbonization of the electricity sector.

"For Indonesia, during the transition to Net Zero Emission in 2060, oil and gas will continue to play an important role in securing energy supply, especially in the transportation and power generation sectors. Gas will be used to bridge 100 percent of the implementation of renewable energy plants. However, the upstream oil and gas industry must implement an emission reduction strategy including the application of clean energy technology such as CCS/CCUS," he added.

Then, to meet oil and gas needs, Indonesia is currently focusing on efforts to explore oil and gas basins, considering that Indonesia still has many oil and gas reserves that have not been utilized. Of the 128 hydrocarbon basins, 68 of them still have not been explored.