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Page added on June 19, 2014
Indonesia cuts 2014 targets for subsidized fuel demand, crude oil output
The Indonesian government reached a deal with lawmakers late Wednesday to revise down its targets for subsidized fuel consumption and crude production in its 2014 budget to make the figures more realistic, officials said.
The measure cuts the subsidized fuel consumption quota 4.2% to 46 million kiloliters, from 48 million kl previously.
Subsidies for fuel and biodiesel have been raised to Rupiah 246.5 trillion, from Rupiah 210.73 trillion, due to the currency weakening against the US dollar to Rupiah 10,600, from Rupiah 10,500.
The Indonesian Crude Price is unchanged at $105/barrel.
“Economic macro indicators have been changed, such as growth in the first quarter of 5.21%, rupiah exchange rate reached Rupiah 11,842 and crude oil lifting 797,000 b/d in average,” said Ahmadi Noor Supit, chairman of budget committee.
Subsidized 88 RON gasoline consumption in 2014 is estimated at 29.43 million kl, down from from 32.34 million kl in the previous budget. Kerosene consumption is unchanged at 900,00 kl, and gasoil consumption is expected to rise to 15.67 million kl, from 14.635 million kl.
The revision raised the subsidized LPG quota to 5.013 million mt, from 4.783 million mt, according to the oil and gas directorate general’s website.
January-April consumption of subsidized fuels has fallen below the original estimate due to lower demand, state-owned Pertamina has said. In the first four months of the year, the country consumed 9.48 million kl of subsidized RON 88 gasoline, 5.15 million kl of gasoil and 325,000 kl of kerosene.
In 2013, Pertamina distributed 46.3 million kl of subsidized fuels, from the allocation of 47.9 million kl.
The government and the parliament also agreed to cut the 2014 target for crude and condensate production by 6% to 818,000 b/d, from 870,000 b/d. The gas output target was lowered to 1.224 million barrel oil equivalent/d from the earlier target of 1.24 million boe/d.
That puts the 2014 oil and gas output target at 2.042 million boe/d, Supit said.
Officials have attributed the lower output to delays at some crude projects such as the Cepu block, which was originally expected to reach its peak output of 165,000 b/d by the end of this year, and Petronas’ Bukit Tua, which was set to start in Q4 with a volume of 70 million cu ft/d of and 20,000 b/d. Both projects are now expected to reach the output targets next year.
Upstream regulator SKK Migas had earlier predicted the country’s crude and condensate production would rise to 1 million b/d on average over 2015-17 due Cepu and other projects.
The main producers Indonesia is relying on to meet its 2014 crude target are Chevron Pacific Indonesia with 304,150 b/d, Pertamina EP with 127,420 and Total E&P Indonesie with 66,860 b/d.
The top gas producers are expected to be Total E&P Indonesie with 283.06 million boe/d, BP with 169,240 boe/d and ConocoPhillips with 170,050 boe/d.
Indonesia is making a concerted effort to accelerate exploration and development in the country as it has seen its crude output fall because of natural decline at aging fields.
The country missed its 2013 crude and condensate production target of 840,000 b/d by pumping around 826,000 b/d last year. Officials blamed natural decline and unplanned shutdown.
Indonesia’s oil and gas proven reserves stand at 3.7 billion barrels and 101.54 trillion cu ft. The country is estimated to contain 574 trillion cubic feet of potential shale gas. The shale gas potential is higher than the CBM and natural gas potential of 453.3 Tcf and 334.5 Tcf, respectively, according to energy and mines ministry’s data.
7 Comments on "Indonesia cuts 2014 targets for subsidized fuel demand, crude oil output"
J-Gav on Thu, 19th Jun 2014 5:55 pm
Oh, what a surprise! Well, just wait till that shale gas kicks in eh?
Davey on Thu, 19th Jun 2014 8:43 pm
Hey Mak, that sucks an important source of oil for the Phillipeans is going dry.
Makati1 on Thu, 19th Jun 2014 10:20 pm
Since the Philippines uses about 1/2 of 1% of the world’s oil production daily, I am sure there are plenty of sources and the Ps can afford $120+ oil whereas the US cannot. It’s not wasted in the Ps and the P’s GDP is still growing at ~7% per year. And, the Ps produces some of it’s own oil.
The US uses over 40 times that of the Ps. with only 3 1/2 times the population. And $100+ oil is killing the US economy with real time ‘negative’ GDP growth. Who do you think is going to hurt most and first?
Davy, Hermann, MO on Fri, 20th Jun 2014 5:54 am
US, has a diversified economy and significant resources Mak. P’s will not be able to buy oil or food soon Mak, they don’t export anything but people. Last a saw there is an excess supply of migrant workers.
Makati1 on Fri, 20th Jun 2014 8:36 pm
Davy, your anti-Asia bias is wearing thin. You seem to think the US is somehow in glory land and will have less trouble than say China or the Ps. From where I sit, I see it different, but I have given up trying to convince you. I will continue to comment on the world as I see it, and you can do the same.
Food is not the problem here and won’t be. There will just be fewer fat people and more will go back to farming. There is plenty of unused land. And water is not a problem, nor is it projected to be a problem here by any of the research papers/articles I have seen over the last 6 years. The islands get and average of 6 feet of rain on the west side and 10 feet on the east side. With a year round growing season, they can raise 3-4 crops per year.
Nor will oil be a problem. As I said, oil can go to $150 easy and it will still be bought and used here. The effect on the Philippine economy will be 1/40th the effect on the US economy because they use 1/40th the amount and 1/20th the amount of electric per capita.
BTW: over two million of those ‘exported’ Filipinos are in the US , taking care of your parents, and designing your electronics. They are also dentists, doctors, and nurses. You may be taken care of by one of them some day. They have to be well educated to come to the US to work and have to jump through a lot of hoops just to visit the US. Most are not allowed to even visit.
They don’t just cross the border like Mexicans.
fred on Sat, 21st Jun 2014 5:17 am
Mak nailed that one!
Davy, Hermann, MO on Sat, 21st Jun 2014 6:21 am
Mak, in his dream world. It is plain and simple Mak and you fail to see basic principles of collapse potential in Asia and more so the P’s. Mak when you have overpopulation as p’s/Asia have that is the starting point. Carrying capacity has been breaches in Asia with food/energy. Ecological degradation and pollution are quickly destroying what food potential there is. The P’s have nothing to export so they will be at the end of the line for energy/food. The P’s manufacture are limited to textiles and other low value items that will not be needed in a collapsed world. The P’s has large cities that will be uninhabitable with the coming liquid fuel crisis and food insecurity. These vulnerable cities will not be rebuilt when typhoons destroy them. Your toast Mak and choose to live in a fantasy that all is well. The US is in a very precarious situation but nowhere near the position of the P’s/Asia. Mak, drop the discussion because this topic is mute and there is no reason to bore the other readers with repetition. Go back to you US bashing and then make your hypocritical statements that my Eastern bias is wearing thin. What a slug.