Indonesia's Crude Output Falls to 34 Year Low in February

[chlamor]

 Business | Oil & Gas

Published: 11/3/2005, 07:13 (UAE)

Indonesia's crude output falls to 34-year low in February

Reuters

Jakarta : Indonesia's crude oil production fell to 942,000 barrels per day (bpd) in February due to technical problems on several wells, an industry source said yesterday.

The output is the Opec (Organisation of Petro-leum Exporting Countries) member's lowest level in 34 years.

The country's crude and condensate output averaged 892,000 bpd in 1971, according to US Government data, the last year that total production fell below 1 million bpd. The data shows the country's struggle to stem its production decline, which forced it to import crude during several months of 2004 and called into question its membership in the Opec.

"There are some technical problems in several oil wells that caused the output to fall in February," the source said.

http://www.gulf-news.com/Articles/BusinessNF.asp?ArticleID=155687

[Tandalayo_Scheisskopf]

1. Translation:

"Technical Problems"="Turned them off".

More money that way.

[TreasonousBastard]

3. You turn them off when prices are low...

with the current prices, everyone is pumping as much as they can.

I suspect they are on secondary and tertiary production in some fields, which can be tricky.

Tertiary production means the fields have depleted enough that not even the mechanical pumps work and they have to do things like inject steam to force the remaining oil out.

With no new discoveries there, Indonesia is in deep shit as an oil producer.

[Coastie for Truth]

5. Tertiary Recovery

adds significant costs and is really only feasible when prices are high.

[TreasonousBastard]

7. As they are now.

[aneerkoinos]

6. The correct translation:

"We are way past our production peak, the production has been declining for years, but it's better to not speak about Peak Oil"


From ASPO country analysis:
http://www.asponews.org/ASPO.newsletter.018.php#64

"The production profile exhibits the typical OPEC saddle due to quota restrictions. Production accordingly peaked in 1977, fifteen years before the midpoint of depletion in 1992. A secondary peak was passed in 1995, partly making up what would have been produced naturally save for the OPEC saddle and partly coming from a second smaller cycle of discovery in the 1970s. Production has now commenced its terminal decline at a Depletion Rate of about 4 percent a year."

[cliss]

15. I agree with you.

Holding back your production isn't always about $$$$$. It can also be a way of establishing power. Remember OPEC in the '70's? Recall how the oil producing countries established a cartel, and proceeded to cut back on production. Guess who was the Top Banana in that fracas?

They caused chaos in the US. Long lines at the gas station. Fist fights while waiting, sometimes as long as 1 day to get the precious 'fix' of black gold.

This shows an inelasticity of demand.

However, rising prices can be a double-edged sword. As the price keeps spiking upward, people will start looking for alternatives for gas. Suddenly, bikes will become more popular. Vespas, scooters, you name it. People will start filling their gas tanks with Wesson oil.

Also, at a certain price level, oil exploration will become more profitable. Old dried-up wells will be looked at again. The industry will be prodded to make cars more fuel-efficient.

Oil producers don't necessarily want to gouge us -- they just want to keep the price where they can make the most profit. If it goes too high, it hurts them too. :smoke:

[rooboy]

2. If Jesus created the world...

why do hardly any Christian countries have oil?

I'm starting to wonder if I could get a better deal through Allah.

[Ezlivin]

4. "Technical problems" = "Running out"

They are experiencing the same problem that every owner of an oil well eventually faces: Oil is a finite resource. You can only pump what is there or what you are able to recover.

We currently use 4 barrels of oil for every 1 barrel we produce.

Do the math.

[cthrumatrix]

8. Indonesia's crude output falls to 34-year low in February (Reuters)

Indonesia's crude output falls to 34-year low in February
by Reuters

Jakarta : Indonesia's crude oil production fell to 942,000 barrels per day (bpd) in February due to technical problems on several wells, an industry source said yesterday.

The output is the Opec (Organisation of Petro-leum Exporting Countries) member's lowest level in 34 years.

snip

"There were no significant new oil finds in Indonesia in 2004. Oil contractors are mostly maintaining current production from existing fields," the second source said.


"In the end, it will be difficult to add production in 2005. There will be no doubt that Indonesia will be a clear net crude importer in 2005," he added.

snip

http://www.energybulletin.net/4688.html

Most everything going on in the geoplotical scene revolves around the game game for oil/natural resources.

Peak Oil should be discussed within our govt policies every damn day.

[izzie]

9. Add this in with the North Sea , and things get interesting.

Why no new refinery built for years and years. Some thing is going on.

[cthrumatrix]

10. No new refinery's needed when your are refininf less oil going forward

all else that is going on is a dsitraction...

Who cares about soc sec payments in 60 yrs..when oil is running OUT in 30-35 yrs or sooner.

[hatrack]

12. And did I mention Cantarell?

Pemex disclosed last week that Cantarell will go into decline this year. Cantarell alone produces over 60% of Mexico's total production.

Oops.

[jmcgowanjm]

11. Jesus, you guys are good. Everything you need to know

right here, right now, on DU.

The MSM is having to work overtime to
avoid this issue.

Oh yea, BTW, Delta is filing for
bankruptcy. And they're taking the
pillows off the planes.

$54. 65/bbl Light Crude NYMEX

[Blue to the bone]

13. Yet another reason why OPEC has lost control of world oil prices. n/t

[leesa]

14. Geez. It may not even be worth screwin' around with their country anymore