|Subject: AN: Fossil fuel reserves to run out in 18
Date: Wed, 16 Sep 1998 13:38:42 +0700
From: "Leonardo J. Rimba" <email@example.com>
Poster's note: Indonesia's fossil fuel reserves include those found in the Timor Gap which the country shares with Australia through a very unfair treaty in which Australia gets the largest proceeds. -LJR
Antara -- Wednesday, September 16, 1998
Oil: RI'S FOSSIL FUEL RESERVES TO RUN OUT IN 18 YEARS' TIME
JAKARTA - Indonesia's fossil fuel reserves will deplete within the next 18 years if its oil production remains constant at 1.5 million barrels per day or 500 million barrels a year, an oil industry spokesman said.
The depletion would occur given the fact that no new oil reserve of significant volume was discovered in the last ten years, according to Baihaki Hakim, chief of Caltex Pacific Indonesia at the hearing with the House of Representatives' Commission V (manpower and trade) here Tuesday.
Baihaki said research conducted in 1996 by Wood McKenzie had established that Indonesia would become an oil importing country by 2006 with its domestic oil consumption growing at 12 percent a year.
But the current protracted economic crisis which had also resulted in a decline in oil consumption would probably put off the moment, he said. The Caltext executive, however, also said there was no reason now to be pessimistic because the government and private business community still had several options to reduce oil consumption. The government could review its policies on oil consumption and/ or promote development of alternative energy resources.
Indonesia could also still increase its oil exploitation and exploration activities, particularly in deep seas and in its eastern parts. But for these activities, he said, huge investments and modern technology were needed. Unfortunately, the weak price of oil in the international market was scaring off investors from the oil sector in Indonesia.