The title of this article is the title of a recent three day workshop that was organized by SkkMigas that had apparently been arranged due to the concern that Indonesia has with the ever-growing gap between the demand for oil and what is being produced in the country, as well as the ever-increasing concern about the economics of the country with the spending on infrastructure projects being a concern and development in the natural resource industry not being as expected.
There are other concerns, such as the ever-growing reliance on Pertamina to take over blocks from International companies, to develop existing and hopefully new blocks, or a recent headline: Pertamina sells off shares to stay afloat, or the concern of Pertamina to meet the government’s policy of ensuring the availability of Premium grade fuel at one price throughout the whole country. One senior person from Pertamina said to me recently, we will survive until the election, but what happens after that, who knows.
This makes one wonder, how will Pertamina develop new or existing blocks? How will they carry out the exploration that is needed to meet the subject of this opinion piece which is an interesting title in itself for many reasons. When I was asked about finding Giant Oil & Gas Fields by Badan Geology, I said, Pak, the chances of finding Giant Fields is fairly low, because if they were available they would have been found by now with existing methods of exploration. I was to learn that what they meant by Giant Fields is anything that contains a probable reserve of 500 million barrels of oil, (Giant oil and gas fields = those with 500 million barrels (79,000,000 m3) of ultimately recoverable oil or gas equivalent. Supergiant oil field = holds equivalent of 5.5bn barrels of oil reserves).
This is a different story then, as it is known that there are fields that contain this amount and above, just waiting to be confirmed and exploited, one such field has been known about for several years which contains something in the region of 1 billion barrels of oil, as well as gas and condensate, but due to political and other reasons this has not been developed until now.
The author of this article has written several times that Indonesia does have the potential to be self-supportive in resources, if only the knowledge of the country’s resources was known, sadly to say until now, the potential of the country’s resources is just that, potential. What has become apparent from the workshop organized by SkkMigas is that many people are concerned with the situation, but very few (if any) are prepared to take the risk for exploration, which does include the country’s own banks and entrepreneurs. What does risk mean? Put simply, it means loss of money. In my view, Indonesia is no different to any other country, the people in the country do not like to lose money, so why does Indonesia expect investors from other countries to lose money when they are not prepared to accept the risk themselves?
How to minimize the risk?, how to increase the success rate from 15%?, which is what Pertamina achieved last year for drilling of new wells, although this is not too far below the accepted success rate within the industry which is in the region of 20 – 25% (the normal). These figures can of course be argued about from company to company, but the overall success rate is low, if you were a gambling person, you would unlikely accept these odds. The answer is simple, technology, a technology that has been developed by people of the trade, not by some mad scientist, technology that has been used in different countries with a high success rate. Contrary to believe, Indonesia is no different to any other country when it comes to geology, yes Indonesia has complex geology such as volcanics in Java, deep water in East Indonesia, difficult terrain in Papua where some of the technology that is used today does not allow a detailed exploration survey to be carried out. I can name a number of other countries that have extremely complicated geology that has been successfully explored with technology. The old excuse that the technology has not been used in Indonesia does not wash, how can it be used if people do not want to accept technology readily? It does appear that SkkMigas is waking up, they realize that if they do not adapt to new technology faster, then the situation will not improve.
Technology that we take for granted has come a long way in the past twenty or more years, where did the technology come from? Normally technology comes from someone seeing a problem and asking a simple question, how can we do this better. I was giving a presentation the other day, when someone said, we have not been taught this in University, so how can we believe that this works, where I replied, it has been proven in many other countries with a high success rate, can you as a geologist work in another country, where the answer was “of course we can” where my reply was, if you can do this, why can technology that works in these countries not work in Indonesia? Technology that has been developed by people such as yourself which is based on geology, of course, there was no reply.
The point of this article is that Indonesia appears to be ready to accept technology, although there are still divisions within the government (ESDM) where you have so many different interests, what is required is that one central policy is required for technology and not so many different empires, it should be united.
Most people will accept technology from the medical industry that can save life’s, the same people in the exploration industry are reluctant to accept technology that not only improves the success rate of exploration but will create jobs for people as companies are exploring at reduced costs which in turn relates to reduced risk.
Indonesia does have the potential to meet its energy needs, to meet its goals that are agreed with increased success and reduced costs, as long as people are willing to accept technology and make decisions.
“Baby Giant Fields” are waiting to be discovered.
Something interesting to share?
Join NrgEdge and create your own NrgBuzz today
The global oilfield scale inhibitor market was valued at USD 509.4 Million in 2014 and is expected to witness a CAGR of 5.40% between 2015 and 2020. Factors driving the market of oilfield scale inhibitor include increasing demand from the oil and gas industry, wide availability of scale inhibitors, rising demand for biodegradable and environment-compatible scale inhibitors, and so on.
Download PDF Brochure @ https://www.marketsandmarkets.com/pdfdownloadNew.asp?id=268225660
The oilfield scale inhibitor market is experiencing strong growth and is mainly driven by regions, such as RoW, North America, Asia-Pacific, and Europe. Considerable amount of investments are made by different market players to serve the end-user applications of scale inhibitors. The global market is segmented into major geographic regions, such as North America, Europe, Asia-Pacific, and Rest of the World (RoW). The market has also been segmented on the basis of type. On the basis of type of scale inhibitors, the market is sub-divided into phosphonates, carboxylate/acrylate, sulfonates, and others.
Carboxylate/acrylic are the most common type of oilfield scale inhibitor
Among the various types of scale inhibitors, the carboxylate/acrylate type holds the largest share in the oilfield scale inhibitor market. This large share is attributed to the increasing usage of this type of scale inhibitors compared to the other types. Carboxylate/acrylate meets the legislation requirement, abiding environmental norms due to the absence of phosphorus. Carboxylate/acrylate scale inhibitors are used in artificial cooling water systems, heat exchangers, and boilers.
RoW, which includes the Middle-East, Africa, and South America, is the most dominant region in the global oilfield scale inhibitor market
The RoW oilfield scale inhibitor market accounted for the largest share of the global oilfield scale inhibitor market, in terms of value, in 2014. This dominance is expected to continue till 2020 due to increased oil and gas activities in this region. The Middle-East, Africa, and South America have abundant proven oil and gas reserves, which will enable the rapid growth of the oilfield scale inhibitor market in these regions. Among the regions in RoW, Africa’s oilfield scale inhibitor market has the highest prospect for growth. Africa has a huge amount of proven oil reserves and is one of the leading oil producing region in the World. But political unrest coupled with lack of proper infrastructures may negatively affect oil and gas activities in this region.
Major players in this market are The Dow Chemical Company (U.S.), BASF SE (Germany), AkzoNobel Oilfield (The Netherlands), Kemira OYJ (Finland), Solvay S.A. (Belgium), Halliburton Company (U.S.), Schlumberger Limited (U.S.), Baker Hughes Incorporated (U.S.), Clariant AG (Switzerland), E. I. du Pont de Nemours and Company (U.S.), Evonik Industries AG (Germany), GE Power & Water Process Technologies (U.S.), Ashland Inc. (U.S.), and Innospec Inc. (U.S.).
Speak to Analyst @ https://www.marketsandmarkets.com/speaktoanalystNew.asp?id=268225660
Scope of the Report:
Get 10% FREE Customization on this Study @ https://www.marketsandmarkets.com/requestCustomizationNew.asp?id=268225660
Headline crude prices for the week beginning 9 December 2019 – Brent: US$64/b; WTI: US$59/b
Headlines of the week
In the U.S. Energy Information Administration’s (EIA) International Energy Outlook 2019 (IEO2019), India has the fastest-growing rate of energy consumption globally through 2050. By 2050, EIA projects in the IEO2019 Reference case that India will consume more energy than the United States by the mid-2040s, and its consumption will remain second only to China through 2050. EIA explored three alternative outcomes for India’s energy consumption in an Issue in Focus article released today and a corresponding webinar held at 9:00 a.m. Eastern Standard Time.
Long-term energy consumption projections in India are uncertain because of its rapid rate of change magnified by the size of its economy. The Issue in Focus article explores two aspects of uncertainty regarding India’s future energy consumption: economic composition by sector and industrial sector energy intensity. When these assumptions vary, it significantly increases estimates of future energy consumption.
In the IEO2019 Reference case, EIA projects the economy of India to surpass the economies of the European countries that are part of the Organization for Economic Cooperation and Development (OECD) and the United States by the late 2030s to become the second-largest economy in the world, behind only China. In EIA’s analysis, gross domestic product values for countries and regions are expressed in purchasing power parity terms.
The IEO2019 Reference case shows India’s gross domestic product (GDP) growing from $9 trillion in 2018 to $49 trillion in 2050, an average growth rate of more than 5% per year, which is higher than the global average annual growth rate of 3% in the IEO2019 Reference case.
Source: U.S. Energy Information Administration, International Energy Outlook 2019
India’s economic growth will continue to drive India’s growing energy consumption. In the IEO2019 Reference case, India’s total energy consumption increases from 35 quadrillion British thermal units (Btu) in 2018 to 120 quadrillion Btu in 2050, growing from a 6% share of the world total to 13%. However, annually, the level of GDP in India has a lower energy consumption than some other countries and regions.
Source: U.S. Energy Information Administration, International Energy Outlook 2019
In the Issue in Focus, three alternative cases explore different assumptions that affect India’s projected energy consumption:
EIA’s analysis shows that the country's industrial activity has a greater effect on India’s energy consumption than technological improvements. In the IEO2019 Composition and Combination cases, where the assumption is that economic growth is more concentrated in manufacturing, energy use in India grows at a greater rate because those industries have higher energy intensities.
In the IEO2019 Combination case, India’s industrial energy consumption grows to 38 quadrillion Btu more in 2050 than in the Reference case. This difference is equal to a more than 4% increase in 2050 global energy use.