Oil Reserves to Run Out in 12 Years
18 December 2013 21:22 WIB
TEMPO.CO, Jakarta - Coordinating Economic Minister Hatta Rajasa stated that oil and gas reserves continue to deplete each year. “Oil is estimated to run out in 12 years,” he said after a coordination meeting, Tuesday, December 17, 2013. He said gas reserves can last for another 42 years.
Hatta explained that oil reserves depend on technology and exploration. Therefore, reforms in oil and gas sector are needed to boost investment. “That’s why I strive for easier licensing so there will be explorations,” he said.
He said that Indonesia needs not only easier licensing—so prospective investors do not have to wait years for a license—but also more incentives. Indonesia has to be creative in attracting more investors. “Remember, if exploration fails, we still have to bear the cost,” he said. He explained that there will be no “cost recovery” in failed explorations.
He added that Indonesia is moving toward the deep ocean for explorations, which carries a higher risk. “[To compensate for] a higher risk, the process [to obtain a license] should be easier,” he said.
MARIA YUNIAR
