JAKARTA - Head of the Special Task Force for Upstream Oil and Gas Business Activities (SKK MIgas) Dwi Sutjipto revealed several dynamics that have affected world oil prices in recent times.
Dwi explained that the geopolitical factor between Russia and Ukraine is not yet known when it will end and several potential conflicts between other countries have caused the dynamics of oil and gas prices to become very high and cannot be predicted to increase and decrease in price.
"We know that America had lost oil reserves, but on the one hand, OPEC actually cut production so that oil prices fell by 70 US dollars again, up 84 to 85 US dollars. Maybe in the next few years it will still be a reference for us to see oil prices," he said in a presentation on the performance of Quarter I., Monday, April 17th.
In addition to geopolitical conflicts, Dwi said, the financial crisis due to the bankruptcy of financial institutions such as SVB, Credit Suisse and others also provides uncertainty in the global economic situation.
"This causes world energy prices to be relatively high," added Dwi.
Dwi added that oil prices that are still high must be used to encourage investment in upstream oil and gas in Indonesia which is more massive and aggressive.
This is so that the potential of upstream oil and gas can be utilized optimally to support national energy security and sustainable development.
"Don't let the potential oil and gas fall behind in the earth's stomach, because it can't be utilized when new and renewable energy (EBT) has replaced the role of fossil energy. Therefore, the 2023 upstream oil and gas investment plan of US$15.5 billion should be realized in its entirety," concluded Dwi.
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