Government Increases Oil and Gas Production for Energy Transition Effort

Green Energy

Indonesia continues to promote a green energy. Recently, the government is developing oil and gas energy to transition to cleaner energy. This was conveyed by Arifin Tasrif, Minister of Energy and Mineral Resources (ESDM).

He emphasized that the Government will continue to support efforts to increase national oil and gas production.

Arifin, in a Hearing Meeting with Commission VII DPR RI, Thursday (17/02/2022), said, “Petroleum is still the main energy for transportation, before being replaced by electric vehicles, and natural gas can be used for transitional energy before new energy. 100 percent renewable [EBT] in power plants.”

Then, why is the government boosting oil and gas production in the energy transition? Arifin explained that natural gas will be used as fuel for generating intermittent renewable energy. Oil and gas also play a role in meeting domestic needs, including transportation fuel, industrial raw materials and fuel, and household fuel.

Therefore, the use of oil and gas energy is still very fundamental. Thus, the government targets oil production of 1 million barrels per day and 12 BSCFD of natural gas by 2030.

Furthermore, the government also has several plans to increase oil and gas production as well as for its reserves. Some of these plans are optimization of existing field production, a transformation of resources to production, accelerating chemical EOR, as well as massive exploration for major discoveries. Also, the implementation of Carbon Capture and Storage/Carbon Capture, Utilization, and Storage (CCS/CCUS) for oil and gas fields.

The use of old energy such as oil, gas, and coal is said to contribute to carbon emissions and cause the greenhouse effect. Therefore, countries in all parts of the world must find new energy sources to reduce carbon emissions.

This transition process takes a long time and establishes agreements between countries. The goal is to use clean energy. Indonesia is one of the countries that is committed to this clean energy transition, as stated by President Joko Widodo. He has said that Indonesia will achieve Net Zero Emissions (NZE) in 2060.

Arifin said that Indonesia’s energy sector emissions in 2021 will be 530 million tons of Co2e. Peak emissions are estimated to occur in 2039 of 706 million tons of CO2e. Emissions are reduced significantly after 2040 following the completion of fossil power contracts.

By 2060, emissions at the plant will be zero. Meanwhile, the emission level in 2060 in the NZE scenario is still at 401 million tons of CO2e originating from the demand side, mainly from the industrial and transportation sectors.