Failure to intensify oil and gas exploration and making the Indonesian consumer switch from oil to natural gas could see the unthinkable happen, says Sudibyo.
According to Sudibyo, "The country needs new oil discoveries of between 400 million and 500 million barrels annually, which is the same amount of crude oil currently produced by the nation each year."
"Every year, we need new crude oil discoveries equal to our current production rate to extend the lifespan of our oil reserves," he added.
His solution is simple. Indonesia needs to boost oil exploration to find more oil. It also needs to "intensify its exploitation of aging oil fields. Such fields normally still contain oil but require advanced technology for its exploitation," said Sudibyo.
Furthermore, he feels that is it "vital" that the country to reduce domestic oil consumption if it wants to remain a net oil exporter. According to his figures, around "70% of the country's oil production [is] now used to produce fuel products. Fuel oil consumption for transportation, electricity, industry and household use in 2003 reached 54.7 million kilolitres."
