Oil&GAS

The Development and Purpose of the Oil and Gas Industry in Indonesia
Indonesia’s natural resources considered the most strategic are oil and gas. However, this industry is not only used as a supplier of all raw material and fuel needs for all transportation and industrial needs, but oil and gas are considered as one of the important sources of state revenue. Of course the need for this industry will increase along with the entire economic development.
The Oil and Gas Work Sector Is Divided into Upstream and Downstream
Oil and gas has always been used as the most important and strategic commodity for various parties, although in Indonesia, there are still not many who can utilize these natural resources properly. In general, there are 5 important stages in the oil and gas industry that begin with exploration, continue with production, and then the results are reprocessed, involving transportation and finally marketing.
Therefore the oil and gas industry divides its activities into two main ones, namely upstream or upstream and also downstream or downstream. Upstream activities include the two most important activities, namely exploration and production. While the downstream starts from processing, transportation and then marketing. Upstream activity is the most important role because from the beginning, this is what helped the long process of the oil and gas business itself and the aim is to find oil and gas reserves of economic value to be developed again and produced.
Promising Development of the Oil and Gas Industry in Indonesia for the Sake of the Economy
Of course the development of the oil and gas industry is getting better and growing rapidly with quite promising. This was seen in the first quarter of 2019 when the price of crude oil in Indonesia reached a value of $ 63.60 per barrel. The good trend that occurred in the first quarter of this year has been used as a very good signal for the development of the upstream oil and gas sector. The recovery in the good price of oil is inseparable from the previous market fears of reduced oil supply.
This is also due to an agreement with the countries that are members of the OPEC or Organizations of the Petroleum Exporting Countries coupled with several other non-OPEC countries that have reduced production. This agreement is expected to reduce the amount of production to 1.2 million barrels every day. Now this industry is even more exciting for the industrial sector, including the investors who will invest their money in this field.