ITB Professors Forum: Balancing Oil-Gas Production and the Environment
By Adi Permana
Editor Adi Permana
BANDUNG, itb.ac.id – The ITB Professors Forum committee held the webinar “Indonesia’s Transitional Energy: Attaining the Equilibrium Between Increase of Oil-Gas Production and Environmental Conservation” on Friday (8/7/2022). Prof. Ir. Tutuka Ariadji, M.Sc. Ph.D., the General Director of Oil and Gas from the Ministry of Energy and Mineral Resources, was invited as the speaker for the event.
“One of our goals is to provide the channel and discussion for efforts and solutions in nationwide problems,” the Head of ITB Professors Forum, Prof. Edy Tri Baskoro, M.Sc., Ph.D., spoke on behalf of the association. According to him, the provision of environmentally friendly energy is one of the worst impending problems to be faced in the present and future. “Through this webinar, we hope that everyone can gain a better understanding of this issue.”
Prof. Benyamin Sapiie, the Head of the Third Commission of ITB ITB Professors Forum as well as the moderator for the webinar, opened the discussion with a brief introduction of the oil and gas energy concerns. Both are often labeled as dirty energy due to their connection with climate change; their oxidation produces the carbon dioxide that traps heat in the atmosphere and induces global warming. “However, both contribute to 80% of global energy usage, which leads us to the pressing question: can we humans utilize this dirty energy into cleaner, greener forms?”
To answer the question, Prof. Tutuka clarified the prospect of oil and gas supply is stricter following the rising global energy price. The government of Indonesia has mapped out the energy sector's road to carbon neutrality in 2060, complete with agendas on its supply and demand.
Despite the plans, energy imports are still prevalent and continue to expand, with prices being more expensive compared to previous years. This is especially notable in fuels and LPG (Liquefied Petroleum Gas). “We need more storable and sustainable technology as soon as possible,” the professor from the ITB FMPE (Faculty of Mining and Petroleum) Drilling Engineering, Production, and Oil and Gas Management Research Group added.
Regarding job distribution, the formulation and enactment of policies are tasked by the General Directorate of Oil and Gas. The Special Task Force of Oil and Gas handles the upstream operations while the Regulatory Agency of Oil and Gas is responsible for downstream activities. The regulations for upstream and downstream procedures are intended for affiliated business entities.
Upon realizing that a necessary strategy is crucial for the sake of the future, the roles of fossil energy as transitional energy are applied in several programs aimed to upgrade the usage of natural gases. These programs are designated for two energy sources, with their respective utilization strategy stated: oil-gas and coal-minerals. According to the strategies, oil and gas reserves can be increased via optimization of existing production and resource-to-production transformation processes. On the other hand, the utilization of coal and minerals can be raised via the reduction in its uses as well as improving its processing and purification.
“If we are asked what Indonesia’s transitional energy is, the answer would be natural gas as we have a lot of its resources,” Prof. Tutuka mentioned. Nowadays, oil and gas projects are expected to increase the sector’s production by 65 000 barrels of oil per day. There is also the potential of several giant oil discoveries, in which energy exploration across Eastern Indonesia is integrated and has succeeded.
Adjusting the price of natural gas ensures efficiency and effectiveness of its flow while supporting the growth of the economy, industry, and job opportunities. This regulation also heightens the capacity and competition in the market, substituting imports and encouraging clean energy by converting diesel plants to gas.
The national transition of diesel to LNG (Liquefied Natural Gas) done at power generation units is initiated at 33 locations. Aside from the shift in fuels, the infrastructural development plans for natural gas management are in motion, consisting of the construction of municipal gas distribution network, the Semarang-Batang transmission pipeline, and gas refilling stations.
“These are difficult times for us now, so we need to economize and diversify the usage of energy. Renewable energy can be utilized more while subsidies for fuels need to be reduced. Furthermore, the development and distribution of authorities in the oil and gas system must be optimized together,” Prof. Tutuka concluded. “Our transition is natural gas, and it is hoped to bring more benefits in the future.”
Reporter: Ruth Nathania (Environmental Engineering, 2019)
Translator: Ruth Nathania (Environmental Engineering, 2019)