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Tuesday, September 8, 2015

Indonesia once again become a member of OPEC, what does it need?.

The ride was not finished (367)

(Part three hundred and sixty seven), Depok, West Java, Indonnesia, September 8th, 2015, 03:42 pm).

Indonesia once again become a member of OPEC, what does it need?.

In terms of production Indonesia is inappropriate to be a member of OPEC, because the Indonesian oil production of not more than 800,000 barrels per day, while domestic consumption reached 1.5 million barrels per day.
Indonesia is sometimes has a weird policy, should decline in world oil prices which has now reached US $ 45 per barrel to be grateful, because domestic consumption is much more, but each world oil prices rise, the government always raise the price of fuel oil (BBM) , but when oil prices continue to decline government just close your eyes, do not lower the price of oil at Station Fuel (gas stations) in the country, but if the price of gas stations down, transportation costs also go down and this will depress the price of basic commodities, such as rice and price another, thereby increasing people's purchasing power.
Not much can be done by Indonesia as a member of OPEC, Indonesia because production levels of no more than 800,000 barrels per day, while domestic consumption doubling in the number of total production (approximately 1.5 million barrels per day).
Which is disadvantaged by low world oil prices are 12 OPEC members present in addition to Russia, and the US giant companies that explore and exploit oil and gas with high costs in the continental United States.
Russian exports of crude oil and natural gas is quite big a big hit with the decline in oil prices, since most of the state budget depends largely foreign exports of oil and natural gas.
Analysts predict the decline in world oil prices today due to engineering United States and its allies in NATO (UK and Norway) in order to lower world oil prices continue to give lessons to Russia after the annexation of the Crimea from Ukraine got over the economic embargo from the United States and Nato.
Moreover, Russia is considered recalcitrant (naughty) apart after annexing the Crimea also support both politically and weapons to the pro-Russian separatist movements in East Ukraine.
For Arab countries members of OPEC are still low production costs can only per US $ 3 per barrel, oil prices are cheaper still in their favor.
As for Russia, the production cost of oil dn their gas in Siberia snowy costs higher production, the giant company United States operating in the mainland United States, offshore and in Alaska as well costs are high, but because of domestic consumption the huge US , Budget and the US is not dependent on oil and gas, but from taxes and other commodity exports (of military products, computers, IT services and other products), then the low oil prices are still more lucrative USA.

As of November 2015, Indonesia Official Entry OPEC Again
KATADATA - Indonesia eventually accepted back into member countries exporting oil or the Organization of the Petroleum Exporting Countries (OPEC). In fact, seven years ago, Indonesia has been ruled out of the organization because it has become oil importer.

Secretary General of the Ministry of Energy and Mineral Resources (ESDM) Teguh Pamudji revealed, it has received a notification letter from the Secretary General of OPEC last week. "Indonesia is accepted as a member of OPEC, not an observer," he told Katadata, Monday (7/9). However, Indonesia will effectively menjaqdi OPEC members in November.

Indonesia will become the 13th member of OPEC and the only OPEC member from Asia in addition to countries in the Middle East region. Seven years ago, Indonesia under President Susilo Bambang Yudhoyono decided to get out of OPEC oil production due to a deficit. Currently, the country's oil consumption is about 1.5 million barrels per day while producing only 800 thousand barrels per day.

Since the mid of this year, the Indonesian government to explore the possibility of OPEC re-entry. In fact, in the last 3-6Juni, Minister of Energy and Mineral Resources Sudirman Said attended the OPEC conference in Vienna, Austria. According to Sudirman, if Indonesia is located in the community of OPEC, Indonesia has access to oil and gas information regularly.

In addition, Indonesia also can establish friendly relations with oil producers. This is certainly a government strategy to make it easier to get oil supplies from OPEC member countries.

However, Pri Agung Rakhmanto, energy observer from Trisakti University, said that Indonesia's entry into OPEC is no guarantee it will be easier to get oil. It all depends on the diplomacy to each country. "Only a relatively more open access," he said.

In addition, the government must also be able to invite some OPEC members to invest in Indonesia. By doing so, membership in OPEC really beneficial for Indonesia.

On the other hand, the interest of OPEC countries and Indonesia is now different. OPEC countries amid the brakes on production that caused world oil prices fell to around US $ 40 per barrel. While Indonesia still needs to increase oil production because until now the oil importing countries.

President Jokowi Supports Indonesia Sign OPEC
"He could not agree, we should hang out, have to interact with the market (producers and exporters of oil)
KATADATA - Minister of Energy and Mineral Resources (ESDM) Sudirman Said claimed to have received support from President Joko Widodo (Jokowi) on Indonesia's plan active again in the Organization of Petroleum Exporting Countries or the Organization of the Petroleum Exporting Countries (OPEC).

According to him the intention had twice submitted to the President Joko Widodo. The first time he expressed the intention when working visit to Papua New Guinea together with the President. There Jokowi President said he strongly supports Indonesia to re-enter in OPEC.

Sudirman also expressed the intention of requesting permission to attend an OPEC conference held on 3-4 June 2015. At that time, the President reiterated his support Jokowi.

"He could not agree, we should hang out, have to interact with the market. Moreover, we are one of the biggest buyers, so it is natural if we establish a relationship with the producers, exporters," he said at the Ministry of Energy, Jakarta, Friday (15/5).

The government's desire to re-enter into this OPEC members had received criticism from some quarters. Former Member of the Governance Reform Team Oil and Gas Indonesia Fahmi Radi considers unfit to be a member of OPEC. In fact, she worries Indonesia would be laughable, if forced to become members of OPEC.

According to him, since 2005 Indonesia has been regarded as a net importer (net importer) of oil. Although still exported, but larger oil imports. Whereas the requirements to become a member of OPEC is the country a net exporter (net exporter).

Head of the Program and Budget Control Division of Control Planning SKK Migas who is also OPEC Benny Fiscal Policy Analysis Lubiantara, said Indonesia is very difficult to join OPEC. To become an observer country was on condition that the net exporter.

Reasons for getting easier oil was not right. According to him to get the oil does not have to be OPEC. According to him it could be obtained by improving bilateral relations with oil-producing countries.

"Malaysia has never become a member of OPEC, but can get easily due to the interaction of oil with oil-producing countries are going well," he said.

Indonesia was once a member of OPEC since 1961, but then decided to get out of its membership in 2008. This decision because Indonesia has become a net importer. Exploration and production volume is reduced, so that oil and gas reserves are decreasing. While the need for oil and gas in the country continue to rise.

Based on data from the Executive Agency for Upstream Oil and Gas (BP Migas), Indonesia's crude oil production from 1996 to 2006 continued to decline on average by 10-12 percent. This production decline slowed to 2-3 percent in the period 2006 to 2011.

The problem is the decline in production is inversely proportional to the rate of oil consumption in the country grew by an average of 5.8 percent. This makes Indonesia has to import oil to meet national needs.

Kuwait Oil Minister Ali al-Omair on Tuesday said he was "very confident" that the OPEC members of the Gulf cartel supports maintaining its production ceiling unchanged at important meetings this week. In a statement to the official news agency KUNA upon his arrival in Vienna, Omair said that OPEC option is to "maintain or increase the production ceiling," pemotongan.Organisasi override the Petroleum Exporting Countries (OPEC), which consists of 12 countries will hold a meeting on Friday to decide the level of production for the second half of 2015, amid expectations that production levels will dipertahankan.Omair said ministers from the Gulf OPEC members besides Kuwait including heavyweight producer Saudi Arabia, the United Arab Emirates and Qatar will hold coordination talks ahead pertemuan.Bersama together, the four countries Gulf produces about 17 million barrels per day (bpd), or 55 percent of OPEC production is currently 31 million barrels per day. Saudi Arabia alone produces 10.3 million barrels per day. "Global scene requires us not to take decisions which may have a negative impact on the market, and the options available for OPEC is to maintain or increase the production ceiling," said Saudi Oil dia.Menteri Ali al -Naimi said on Tuesday that OPEC does not cut its production strategy to secure market share was bekerja.Ketika asked whether this strategy has been successful, Naimi told reporters: "The answer is yes ... Demand is on the rise. Supply is slowing. This is a fact. The market is stabilizing. "Several other members, particularly Venezuela and Iran, has called for the production cut to support oil harga.Harga have lost nearly half their value since June 2014, when Brent traded around 115 dollars per barrel and crude oil in New York nearly 108 dollars per barel.Omair associate a relative increase in the price of oil to OPEC has forced some high-cost production stalled, especially in the United States and Canada, and to an increase in global economic growth.
World oil prices continue to decline. To this day, the world oil price is still at home in the range of $ 50 per barrel.

US Energy Information Administration released the ten largest oil producing country in the world in 2014. These countries succeeded in producing millions of barrels of oil per day. Reporting from CNN Money, Wednesday (02/04/2015) The following list.

United States (US)

Superpower ranked first as the largest oil producing country in the world with 12.4 million barrels per day. US oil production has always increased significantly each year.

Saudi Arabia

Countries that became oil king's residence occupies the second in the list of the largest oil producing country in the world. Saudi Arabia managed to record oil production of 11.6 million barrels per day.


The country managed to produce as much as 10.6 million barrels of oil per day. Not only as an oil producer, the country is also known to the State formerly known as the second largest natural gas producer in the world.


China is in fourth position as the largest oil producing country in the world. Bamboo Curtain country is able to produce 4.4 million barrels of oil per day.


In the top five are Canadian. The petroleum industry is the mainstay of the primary sector of Canada. The country produces 4.3 million barrels of oil per day.


Countries in the Middle East such as Iran is a country that is often in conflict with other countries because of its oil wealth. Was in sixth position, Iran's oil production by 3.4 million barrels a day.


Same thing with Iran, countries in the Middle East such as Iran, also known as the largest oil producer in the world. Was seventh, Iraqi oil production reached 3.3 million barrels per day.

United Arab Emirates

UEAberibukota in Abu Dhabi is the largest city of Dubai. UAE is one of the largest oil producing country in the world with a production of 3.2 million barrels per day. UAE is in eighth place in this list.


Mexico is a country located in North America. Although included as one of the largest oil producing country in the world, Mexico oil production continued to decline in recent years. 2014 noted Mexico's oil production fell to 2.8 million barrels per day.


In the last position is Kuwait. The country's oil production is expected to reach 2.8 million barrels per day.

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