Government Asked To Make Oil Production Regulation
Monday, 08 January, 2007 | 17:10 WIB

TEMPO Interactive, Jakarta: Soaring global oil prices up to US$70 per barrel at the beginning of 2007 should be the momentum for the government to multiply national oil production.

The oil price increase should be a support for oil investment activities in Indonesia.

This is because, with production costs of between US$10 and US$20 per barrel on average, oil companies can acquire multiple profits due to the increase of oil prices on the international market.

Unfortunately, the opportunity to acquire revenue and profit from oilis not in line with the government's capability, especially the Energy and Mineral Resources Department, to boost national oil production.

Since five years ago, national oil production has never increased.

What in fact happened has been the opposite: it has continued to go down.

Five years ago, national oil production was still 1.252 million barrels per day.

By late 2006, the amount was down to 1.007 million barrels per day.

According to Kurtubi, an oil industry observer, the drop in national oil production is because there is no new production or new reserves.

However, with the global oil price increases, he said, all oil companies will be hunting for new oil fields.

Kurtubi said the drop of national oil production had occurred since Law No. 22/2001 on Oil and Natural Gas was put into effect.

ALI NUR YASIN