- However there are times, where we are not too busy, perhaps due to the Collapse of Oil Prices Globally. We all experienced that within this 2 Years since June 2014, the Oil Price plungged from U$D 100 / per Barrel into U$D 50 and than U$D 27. This Crude Oil Prices have fallen more than 70% from Serbia to the Arabian desert, which caused Oil Producers Countries and Oil Companies loosing money. It is not only an Economic issue but also a Geopolitical issue. We remember that in the 1980-ies the Oil Prices also tumbled down causing the collapse of Sovyet Union and the break down of the Berlin Wall. From the news we read, we understand there was sort of a Geopolitical Warfare, in which the Russian had blamed the West.
But for the Oil Producers and Oil Country exporters which are selling Oil this really hurts their financial condition. Russian Oil Companies are selling Oil below production costs, where people are just exploitating from the on going projects existing whatever reserve they have and nobody is planning for long period of time.
From the media we got the information that Saudi Arabia has U$D 600 Billion Worth of Revenues stached away in some places, to a relative extent, but it can quickly burn out Saudi's long saving due to its Deficits. We observe that Russia is pumping its production on its maximum, before sitting and negotiation with Saudi Arabia; According to the expert analysis this is a normal strategy used by Oil Producers in negotiation to stop the over supply of oil in the market which are also frequently used by OPEC members.
- We can also see that from the Geopolitically perspective, Europe is facing flood of imigration from the Middle East particularly primarily from the crisis in Syria. We can watch in the media television there are many imigrants coming to Greece through Turkey. So there exist Immigrant crisis in Europe. From the media, according to the analyst, Saudi uses its saving to fund Yaman, Egypt, Oman, Bahrain, therefore it is not only using its monies for its Domestic requirement.
- How about in Indonesia ? Indonesia is no longer just Exporting Oil and gas but Indonesia is also a Net Importer of Oil. Indonesia produced 790,000 barrels per day (b/d) of Crude Oil and condensates in 2014, the 3rd Lowest level among OPEC members. Indonesia originaly joined OPEC in 1962 but suspended its membership at the begining of 2009. Indonesia's decision to suspend in Opec membership was due to the growing internal demand for energy, declining crude oil and condenste production in mature fields, and limited investment to increase production capacity.
- We observed from the news in the media that Indonesia plans a number of upgrades and expansions to existing refiniries to become operational. From the media-news, we noticed that Indonesia has also proposed to build 4 New Refineries each having a capacity of 300,000 b/d. Since Indonesia struggles with the level of Investment needed to offset the declining of the Oil and Natural Gas production and the lack of adequated infrastructure, Indonesia is really striving hard to attract Investment in both upstream and downstream sectors with OPEC members. We can observe that Indonesia is currenntly in discussions with several OPEC members concerning the Crude Oil Deals as well as Investments in Refinery Projects.
- Apart from the above issues, there seems to be kind of a tug of war and different approaches concerning the Development of the Masela Blog in Maluku, between Ministerials level from the Cabinet, which emerged in public media, as to whether it is more efficient performing off-shore scheme or onshore, which we feel must be immediately solved by the Highest Authority of this Nation, to give Certainty to Oil/Gas Investors.