Oil Production Prices And Capabilities Are Considered No Correlation

Crude Oil (Photo: Unsplash)

JAKARTA - Indonesia's oil production continues to decline amid an increase in world oil prices. Just so you know, until now the average production of Indonesian oil continues to decline to 500,000 barrels per day (bpd)

Migas Practitioner Andang Bachtiar said that there is actually no correlation between domestic oil production capabilities and world oil prices.

According to him, even if oil prices touch 100 to 200 US dollars per barrel, if a netizen does not have qualified production capabilities, oil production will not change.

"Mau harga minyaknya 100 atau 200 dolar per barrel, kalau tidak punya kemampuan produksi ya begitu-segitu," ujarnya dalam Energy Corner, Selasa 14 Mei.

According to Andang, the current amount of oil production is a reflection of exploration activities 5-10 years earlier. If Indonesia did not carry out massive exploration from 10 years earlier, Indonesia would not be able to increase domestic oil production.

As for what is affected by the increase in world oil prices, Andang continued, is the willingness of investors to invest in oil and gas.

"As soon as oil prices rise, new people invest, but the results will only be felt in the next 2 to 10 years," continued Andang.

Andang also mentioned that he began to see the willingness of investments to continue to move up in accordance with the increase in oil prices over the past 7 years.

"It's already good to want to increase investment. It's an autopsy. Around the world it's the same. When oil prices go up, people also want to invest both in exploration and increase production wells," said Andang.

However, Andang said, the problem is whether the type of well added to production is the old well or the new well.

"If the production (well) automatically increases. But if it takes a long time and from the old field like Indonesia, it won't matter. So it won't affect," he concluded.