Regarding to managing the cost of oil production, we can reduce the expenditure

of purchasing external supplies to drive the flow the oil such as water and gas.
These methods are called Water Recycle system and Carbon capture Storage.
The water recycling system is basically is the treatment of water produced from
the reservoir that contains many chemical that can cause corrosion to the
production equipment. Another method is Carbon Capture storage, where carbon
that has been emitted from power plant use can be stored underground, as gas
is very volatile the reservoirs has met the adequate characteristic to keep the
gas stored, these reservoirs are usually existing well reservoirs. This is done by
injecting the waste carbon dioxide into the existing well reservoir and stores it
underground. This stored carbon dioxide can then be used in Enhanced Oil
Recovery method, that is called CO2 Flooding, where CO2 is injected into the well
to enhance the performance of oil production. In an Economic Strategy solution,
the national Government can reduce tax for Production Sharing Contract (PSC) so
hopefully it will attract investors to invest. Besides the economoy strategy, Oil
company has to have a good relation with service companies therefore there
would be further negotiations regarding the cost of renting production facilitities.