Energy

A Perspective

Ahmad Yuniarto
Chairman, Indonesia

Agenda
Schlumberger Today Growth of Energy Demand Challenges in Meeting Demand New Perspective in Being Energy Savvy Closing Comments

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Schlumberger Today
The worlds leading provider of technology, integrated project management, and information solutions to oil and gas E&P 150.000 people of 140 nationalities operating in more than 80 countries More than 80 year of continuous operation in Indonesia 3.900 people employed in Indonesia More than 700 Indonesian currently assigned overseas Active in geothermal, carbon services and water management

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Oil and Gas Demand Continues to Lead

5 000

Million Tons of Oil Equivalent

4 000 3 000 2 000 1 000

Oil Gas Coal

Biomass
Nuclear Other renewables

Hydro

0
1990 2000 2010 2020 2030

Primary energy demand to increase by more than 35% by 2035 Gas to overtake coal before 2030, with annual growth rate exceeding total energy
Source: IEA Golden Age of Gas, 2011

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Compelling Challenge in Supply

Percentage of Oil Demand to be Developed or Found
70% 60%
50%

Percentage of Natural Gas Demand to be Developed or Found

70% 60% 50% 40% 30% 20%
10%

40% 30% 20%

10%

0% 2020 2030

0%

2020

2030

Adding new reserves is becoming more challenging and complex Growing importance of unconventional and renewable energy sources
Source: Oil: IEA World Energy Outlook 2010, Gas: IEA Golden Age of Gas WEO 2011

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Compelling Challenges in Supply Indonesia

9000 9000 O&G 6000 KBOEPD KBOEPD N&R

6000

3000

3000

2010

2015

2020

2025

2010

2025

Oil and Gas demand is growing 7% per year Assuming O&G production flat at 2.3 MBOEPD in 2025 Indonesia needs 6 MBOEPD of energy from new sources
Source: Presentasi Menko Ekuin, IATMI Business Forum 19 Sep 2011

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National Energy Mix Pres Decree no 5/2006

100% 4.3% 17.0% 18.7% 80% 33.0%

60%

28.6%

40% 30.0% 20% 48.4% 20.0% 0% 2008 Oil Gas Coal NRE 2025

Fossil fuel is still main source of energy. Can we? Very challenging task of developing New and Renewable energy sources. Can we?
Source: MEMR data and BP Migas

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What does It Mean ?

Fast rising energy demand requires strategic urgency in its supply plans
Need master plan on energy management, including infrastructures (strategic reserve, pipelines, electrification, etc) Shift from managing source of revenue to managing strategic energy resources for nations energy resilience

The likely importance of oil and gas sector in meeting future energy demands
Rising prominence of Gas, including in Indonesia Critical issue is reserve replacement

Advance technology is key in finding and exploiting new resources

Deep water, heavy oil, shale gas, CBM, extreme HPHT, new frontiers, renewable, etc

Compelling need to grow new and renewable energy sources

Geothermal, ocean, tidal wave, biomass, solar, etc

Critical need to promote conservation of energy

Opportunity for you

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Closing Comments
Growth of energy demand and sustainability of its supply are both challenge and opportunity
Energy and Nations energy resilience must be managed with urgency, and proper integrated supply chain processes Advanced technology is key in development of new and renewable energy sources University must play center role in promotion of energy conservation and development of peoples capacity
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