WHY OIL AND GAS FIELD STILL PROMISING ?

Oil and gas are result of dead and buried fossils over millions of years ago.
Currently oil and gas is one form of energy that is still dependent on human energy and
possibly in the future. The necessity of oil and gas in the world continues to increase
while oil and gas production can not suffice market demand. It is becoming a serious
problem in the whole world that still relies on fossil energy. Then, if it becomes a serious
problem, why oil and gas currently still promising ? The question will be discussed one
by one with the following reasons: increasing demand of oil and gas energy, increasing
of world oil price, advance development of upstream to downstream technology, the
welfare of oil and gas employee until positive impact in development of a region from oil
and gas fields.
The first thing to be answered, why oil and gas field is still promising is due to the
increasing demand of world oil and gas energy. Based on statistical data, daily demand
for crude oil worldwide continues to increase from 2006 to 2017 with 97.8 million barrels
per day in 2017. In Indonesia, domestic demand for oil consumption reaches 1.6 million
barrels per day while daily production of crude oil in Indonesia is 832,000 barrels per
day. The amount of production is not sufficient to fullfil the necessity of oil and gas
energy consumption in Indonesia. Therefore, through SKK MIGAS and Pertamina also
other company are striving for oil and gas fields in Indonesia to continue develop their
fields and conduct exploration in new areas that haven’t known the potential (especially
in Eastern Indonesia) to increase oil and gas production in Indonesia. Head of SKK Migas
Amien Sunaryadi said investors do not have to worry because the potential of oil and gas
in Indonesia is still promising. There were five new oil and gas fields in operation include
Banyu Urip Field part of Cepu Block in Bojonegoro East Java and Bangka is part of the
deepwater development project (Indonesian Deep Water Development / IDD). Then
Donggi, Matindok, and Senoro Fields. Donggi and Matindok operated in April 2017. The
Cricket Field operated in May 2017. Finally, Madura BD Field operated in June 2017.
"Indonesia was very potential. This was a sign that the upstream oil and gas business in
Indonesia was still very attractive because in the whole world there were only two Final
Investment Decision (FID) projects, "said Amien in the opening of Energy Industries
Council (EIC) Indonesia 2017 at the Office of SKK Migas, Jakarta.
Then, increasing of world oil price is also the reason why the oil and gas field is
still promising. The latest update of world oil prices is about US $ 68.78 per barrel for
WTI and US $ 73.86 per barrel for Brent. The price tend to rise since decreasing of oil
prices at the lowest point, which is below US $ 45 per barrel in June 2017. Taslim Z
Yunus, Internal Supervisor of SKK Migas, said that investment in oil and gas sector is
still promising for investors because with world crude oil price around US $ 50 per barrel
still promising profit. Moreover, the cost of crude oil production in Indonesia is currently
relatively low.With rising world oil prices make the world oil and gas industry incessant
to conduct exploration new fields and develop existing fields. World oil prices are
predicted continue increase up to 100 USD per barrel due to difficult to find oil and gas
reserves while the demand continue increase.
Another factor that is the reason why the oil and gas field is still promising is the
technological development in upstream to downstream is sufficient advanced for
exploration, production and refinery. Currently, the modern oil and gas industry divides
upstream oil and gas activities into two phases: exploration and production. The
exploration stage is stage to finding and proving the existence of oil and gas in subsurface.
In the exploration stage requires sophisticated technology to reduce high uncertainty. One
of the technologies developing in oil and gas exploration is using seismic survey that can
provide subsurface geometry and can also determine the presence of hydrocarbon
potentials. In exploration stage, geologist and geophysicist roles are needed. After the
exploration stage is done and proven to find oil and gas in subsurface, the next stage is
the production stage. Production stage is step to lifting oil and gas from subsurface to
surface which then collected to collecting tanks. Technology in the current production
stage is also quite advanced by using a Sucker Rod Pump or ESP Pump on secondary
recovery. Production stage requires petroleum engineers. After the stages of oil and gas
exploration and production is done then next stage is downstream activities of oil and gas.
In this activity, oil from the collecting tanks then distributed to the refinery stage. The
technology in refinery stage is also quite advanced with the presence of Residual Fluid
Catalytic Cracker (RFCC). The refinery stages requires chemical engineers. From a brief
overview of the three stages, it can be concluded that the development of advance
technology from upstream to downstream is very important to keep oil and gas fields still
in production.
Factor about the welfare of oil and gas employee and much of new jobs are the
most important reasons why oil and gas fields are still promising. Oil and gas industry is
very promising great pay and welfare for their employee both in health and moreover
family.
The last reason, there is positive impact of development an area from income of
oil and gas companies. In Indonesia, for example Pertamina provides development in the
sector of infrastructure at their working area. In addition, the empowerment of
communities in the form of education and trainings that can help the community's
economy.
In conclusion, oil and gas field is still very promising due to the increasing demand
for oil and gas energy along with increasing world oil prices. Technological developments
in upstream and downstream sectors of oil and gas are quite advanced also the reason
why the oil and gas field still promising. Then the welfare of oil and gas workers and the
much of new jobs is also the most important reason. The last is a positive impact for
communities that provide infrastructure development, education and trainings that can
help the community's economy.
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