Sri Mulyani calls decline in oil production “difficult situation”

TEMPO.CO, Jakarta – Finance Minister Sri Mulyani said that Indonesia is faced with the fact that the production of oil and gas continues to decline every year. The fall in production affects the macroeconomic sector because it will affect the trade balance.

“So this oil and gas is definitely a difficult situation”, Sri Mulyani speaking at the 2nd International Upstream Oil & Gas 2021 event broadcast on the SKK Migas YouTube channel on Tuesday, November 30.

Declining production of oil and gas, especially petroleum, has narrowed the gap between energy demand and supply. Even though Covid-19 has reduced the demand for oil and gas use, Sri Mulyani said Indonesia still has a huge demand for energy due to its large population of over 260 million.

If domestic production cannot meet the demand for energy needs, the possibility of importation will be even greater because Indonesia is a “developing country with a large population and economic size, and hence the demand for energy. fuel will continue to increase, ”she said.

Referring to data from the Oil and Gas Branch of the Ministry of Energy, Sri said the oil extraction volume for 2020 was 707 MBOPD, exceeding the target of 705 MBOPD, which was lowered. compared to the original target of 755 MBOPD. During this time, the natural gas transport volume was 975 MBOEPD, below the target of 992 MBOEPD.

Sri Mulyani continued that declining oil and gas production is a concern shared by various countries as part of the global plan to reduce carbon emissions. This situation is considered the right momentum to switch to renewable energy sources that respect the environment and comply with the commitments of COP21 and COP26.

“The commitment to prevent climate change by slowing the rise in the planet’s temperature also has a direct impact on the oil and gas industry. As the world’s largest importer of CO2, Indonesia can change its way. the road to zero emissions, ”Sri Mulyani said.

Read: SKK Migas becomes ‘aggressive’ to reach the oil and gas production target by 2030