3Natural Gas Business in Indonesia
Introduction
Gas is an energy future of Indonesia. It is a fact that cannot be denied anymore. Based on existing data, throughout 2010 there were new discoveries of gas reserves are significant enough to achieve 2.09 trillion cubic feet, while the discovery of oil only amounted to 140 million barrels only. On January 1, 2011, proved reserves position and potential of gas in Indonesia reached 153.72 trillion cubic feet of proven and potential reserves and crude oil for 7.41 billion Barrels. (BPMIGAS Bulletin Issue, 2011)
If the reserves are produced with current production levels then the Indonesia's oil reserves will run out for 12 years, while Indonesia's natural gas reserves are still able to
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Natural Gas Business Scheme
In 2001 to 2008, sales of natural gas from KKKS have never been done in an open tender, natural gas can be sold directly to natural gas distribution companies without any tender, in other words, KKKS never announced to the media (newspapers, websites etc.) regarding the potential for natural gas that will be commercialized. Hence, Natural Gas Distribution companies who have network to KKKS will benefit from this kind of process. The process of selling gas without open tender as mentioned above can lead to unethical business behavior, because KKKS is the only one who gained full authorization from BPMIGAS to control the commercialization process but KKKS did not doing a transparent business process.
What KKKS doing is not in accordance with the principles of good corporate governance that includes Transparency, accountability, responsibility, independency, and fairness to attain a company's sustainability by also considering the interests of stakeholders. (Binhaldi, 2006)
To avoid unethical business behavior, commercialization of natural gas process by KKKS must be done transparently. KKKS must Provide timely, Appropriate, clear, accurate and comparable information accessible to stakeholders that their rights commensurate with (Binhaldi , 2006).
Indonesian Natural Gas Business in 2009 – 2011
In 2009, BPMIGAS issued
clearly define that Natural Gas Companies are in the wrong and that the general public could
The PR firms expound the virtues of natural gas and would have us to believe “the negative side-effects caused by fracking are insignificant” (Larson 2). They rattle off information on how natural gas is a clean burning source of energy and how it is now responsible for 30% of electricity production, as well as heating in half of the homes in U.S.; therefore lessening our dependency on foreign suppliers. All positives attributes, granted, but at the end of the day fracking is a business; big business whose primary focus is keeping their shareholders happy with increase revenue. Unfortunately in their quest to make the almighty dollar, they are putting human lives as well as the environment at risk with the use of chemicals that are toxic, some are known carcinogens. To add insult to injury, the government, who is supposed to protect the interests of all, as opposed to the interests of a few, granted the energy companies an exemption from the laws meant to provide protection to humans as well as two irreplaceable resources, water and air. Granting this exemption is a clear indication that public health and the preservation of local ecology were less of a priority than making a profit.
The legal, the neighborhood government and the central government ought to work as an inseparable unit to control the petroleum gas industry. They ought to ensure that the direction of this vitality industry does not impacts affect the general wellbeing by;
The natural goal of any industry or firm is to economically extract petroleum and gas to meet the energy demand of the nation and world . However in order to minimize the negative externalities involved in deriving the natural gas they try on keep the focus of the government on the positive impact on the economical environment created by them .There was a data analysis that was provided by a Pennsylvania firm to New York State Department to strengthen their argument of the necessity of this process which stated the no of employement this industry has provided and total annual revenue it generates .
What separates natural gas from other fuel types is that it can be used in power generation, industrial, commercial, transportation and residential while producing approximately half of the carbon dioxide (CO2) emissions than its largest competitor coal. An abundant amount of natural gas available within the borders of the United States opens many opportunities including the chance become more energy independent. As natural gas becomes further available in the world technology will continue to compete for ways to eliminate the use of coal and other fossil fuels. Natural gas unlike other alternative energy sources i.e. wind and solar is a reliable energy source that can be used with those other energy sources as a base energy source.
and oil industry attempt to prevent gas leaks, also, where natural gas is produced but can't be
Shale gas has become embroiled in controversy over alleged impacts on public health and the environment. Some segments of the public have become deeply suspicious of the veracity and motives of gas companies. These
I am currently working as a natural gas regulator assistant inspector on a full-time basis. Basically this position required me to work in a formal apprenticeship, and I was trained and became familiarized with all the important particulars of this job.
In America, many practices take place that the majority of people are not aware of, and corporations who do promote their latest adventures to the public do not reveal the whole truth about their objectives, positive and negative. The American people get confused and wonder why they must investigate American companies in order to separate the lies from the truth. The Oil and Gas Industry have been fracking, a process that has been met with controversy, to obtain natural gas and with this process comes profit and harm done to others by way of polluting the air, contamination in water, using large amounts of fresh water per well and damaging land. These industries are exempted from the Safe Drinking Water Act by
As we all know, the energy debate has been ongoing for decades. There is a laundry list of opinions concerning energy use and production. When it comes to oil we are all too aware of the price and demand for what has proven to be the most valued resource on the planet. Advocates of alternate energies insist that the end of oil is nearer than most of us may think, while proponents of petroleum assure us that due to technological advancements there are still large untapped reserves which promise to see us through the next century despite our increasing demand for this black gold.
My research is about natural gas the way that I gathered my information is through mixed method design combining qualitative and quantitative research but mostly qualitative. Through my research I have discovered many fascinating facts about natural gas that I did not know about as well as just how far we have come in developing many uses for it. In my discussion, I would like to share what I have discovered through my research and attempt at providing factual evidence to provide why we as a country should try to convert into using natural gas as a primary energy source or at least persuade you into using natural gas as much as we use other energy sources such as coal, oil, and gas.
Most of the natural gas transportation in the USA is done through 305,000 miles of transmission pipelines. Existing LNG degasification facilities allow for limited international trade of LNG (Table 2). Due to free market pricing when natural gas cost less in summer period, gas-storing facilities are widespread over the country including more than 400 underground storages and 113 LNG peaking facilities (EIA, 2008).
Since the early 1980’s palm oil has more than tripled globally primarily in Indonesia. “Most of this expansion has occurred in Indonesia, where the total land area of oil palm plantations increased by over 2100 per cent (more than 22 times greater) over the same period, growing to 4.6 million hectares”. The primary source of supply and production of palm oil is through state owned, big private corporations, and smallholder farmers. “State-owned plantations play a modest role in the Indonesian palm oil industry as big private enterprises (such as the Wilmar Group and Sinar Mas) produce approximately half of total Indonesian production. Smallholder farmers account for around 35 percent of cultivated land”. Today there are nearly ten million hectares of land in Indonesia solely dedicated to the plantation of this commodity. Individual smallholder farmers own between two and ten hectares of land for their palm oil farmland. Plantations are located in rural areas
In June, 2010, an annual favorability poll by Gallup covering the 24 largest industries in the US, rated the oil industry 24th out of 24 for the seventh year in a row (Jones 2010). Despite multinational Oil and Gas companies having the most
Indonesia dates back to 1871, with the first commercial production beginning in 1885.” The success of one of the very first wells, drilled at Telaga Tunggal in 1885, triggered the explosion in the Indonesian oil industry. At a depth of only 121 meters, this well was producing commercial quantities of oil. This immediately led to further exploration and drilling of new oil fields throughout the region. The Royal Dutch Company and Shell Transport and Trading were the first two companies to spearhead the start of the oil industry in Indonesia. In 1890, the Royal Dutch Company was created to produce and refine oil as Shell Transport and Trading focused on the marketing