Despite Entering The Energy Transition Period, Investment In The Oil And Gas Industry Is Still Promising

Minister of Energy and Mineral Resources Arifin Tasrif in the 3rd International Convention on Indonesian Upstream Oil and Gas 2022, at BNDCC, Nusa Dua, Bali. (Photo: VOI/Mery Handayani)

BALI - Minister of Energy and Mineral Resources (ESDM) Arifin Tasrif said that investment in the upstream oil and gas (oil and gas) industry is still promising, during the energy transition period from fossils to new and renewable energy (EBT). Arifin said, oil and gas is still needed in maintaining energy stabilization in the middle of the process of fossil energy transition to clean energy. In that period, said Arifin, there are investment opportunities that can be utilized. Moreover, Indonesia has many locations of natural gas reserves. "Therefore, investment in oil and gas projects will still be needed to provide energy security, as well as meet the growing demand for oil and gas. Before renewable energy technology becomes more competitive," he said in the 3rd International Convention on Indonesian Upstream Oil and Gas 2022, at BNDCC, Nusa Dua, Bali, Wednesday, November 23. Even so, Arifin revealed that there are still challenges faced. For example, the limited funding in the oil and gas industry is still not optimal. "However, the lack of funding to invest in the oil and gas industry, making oil and gas companies tend to only focus on developing gas fields. giants or prefering to do business in countries that provide ease of regulation in exploration and exploitation. The role of oil and gas in the Indonesian energy transition remains crucial," he said.

Referring to OPEC 2022, said Arifin, the picture in 2045, demand for oil as the main fuel will increase to 101 MBOEPD. While its portion in the energy mix decreases from 31 percent to slightly below 29 percent. In addition, demand for gas is also anticipated to increase from 66 MBOEPD in 2021 to 85 MBOEPD in 2045, its portion in the energy mix will increase from 23 percent to 24 percent. While Indonesia has committed to achieving Net Zero Emission by 2060 or sooner. "The demand for oil and gas is still growing, especially in the transportation and development sector, gas is also important in bridging the transition from fossil fuels to renewable energy. Of course, this energy transition will be carried out in several stages taking into account competitiveness, cost, availability and sustainability," he said.