The Development of Low Carbon Technology Answers Two Challenges in the Oil and Gas Industry

The Development of Low Carbon Technology Answers Two Challenges in the Oil and Gas Industry




Global primary energy demand will continue growing along with increasing energy demand due to an increase in population and economic growth. But, on the other hand, G20 members and other countries in the world have set targets to achieve net zero emissions (NZE) in line with the Paris Agreement. However, under the General National Energy Plan (RUEN), Indonesia’s oil consumption will increase by 139%, and gas consumption will increase by almost 300%.

To answer this challenge, the Minister of Energy and Mineral Resources (ESDM) Arifin Tasrif, explained that the development of low-emission technology and innovation in oil and gas production activities is the answer to overcoming the twofold challenge. One of them is the technology of Carbon Capture and Storage (CCS) and the other is Carbon Capture, Utilization, and Storage (CCUS).

To support the development of these technologies, the Government is currently drafting a Ministerial Regulation on CCS/CCUS. As the first step, the main focus is to regulate CCS/CCUS for Enhanced Oil Recovery, Enhanced Gas Recovery, or Enhanced Coal Bed Methane in the oil and gas working area. “We are still finalizing the draft and this regulation is one of our priorities,” he said in his opening speech for the 46th IPA Convention and Exhibition 2022, Wednesday (21/9) at the Jakarta Convention Centre.

Arifin said that Indonesia still has extraordinarily abundant potential for oil and gas reserves. According to him, Indonesia has 70 potential unexplored basins for offering to investors. “As an effort to increase production, the government will accelerate exploration in 5 working areas of Eastern Indonesia, namely Buton, Timor, Seram, Aru-Arafura, and West Papua Onshore,” he said.

Regarding the energy transition, Arifin added, the Government of Indonesia underlined the importance of overcoming the challenges of climate change and the energy transition to the NZE in 2060. However, the role of oil and natural gas in the energy transition is very important because fossil fuels still play a significant role in meeting the demand for national energy. “For that we need a measurable transition process and we must manage the energy system to adjust to it,” he said.

Per his explanation, regarding low-carbon energy, the role of natural gas is very important as a transitional energy source before the dominance of fossil fuels gives way to renewable energy in the long term. “Of course, this energy transition will be carried out in several stages by considering competitiveness, cost, availability, and sustainability,” he said.

Tasrif, born in Jakarta 69 years ago, is optimistic that, through international cooperation, the oil and gas industry can overcome all challenges by applying technologies that can further help reduce greenhouse gas emissions towards net zero emission.

“We invite the contributions of all relevant stakeholders in exploring, producing and developing Indonesia’s oil and gas sector, as well as coming up with new innovations and rewarding solutions that will bring prosperity to all of us,” he said.

Minister of Energy and Mineral Resources Arifin Tasrif was born in Jakarta on June 19, 1953. He completed his secondary education at the Yayasan Pendidikan Harapan Senior High School, Medan (1968-1971). He continued his studies at Chemical Engineering, Bandung Institute of Technology (ITB) from 1971 to 1977.

Arifin Tasrif has held several important and influential positions, several of which are the President-Director of several companies. He started his career as Business Director of PT Rekayasa Industri from 1995 to 2001. After that, Arifin served as President-Director of PT Petrokimia Gresik from 2001 to 2010. Then, he served as President-Director of PT Pupuk Indonesia from 2010 to 2015.

His career skyrocketed, marked by a number of strategic positions that he has held. In 2017, Arifin Tasrif was mandated as the Indonesian Ambassador to Japan and the Federation of Micronesia, replacing his predecessor, Yusron Ihza Mahendra, on June 22, 2017. From 2019 to 2024, in the Indonesia Maju Cabinet, to be exact, on 23 October 2019, Arifin Tasrif was appointed Minister of Energy and Mineral Resources. Mineral Resources (ESDM), replacing Ignasius Jonan for the next five years.

Aside from a career in the professional world, especially in corporations, he is also a technocrat. He was involved in the Indonesian Volley Ball Association (PBVSI). Moreover, in 2011, Arifin Tasrif was granted an Honorary Fellowship Award from AFEO (ASEAN Federation of Engineering Organization) for his contribution to the profession of engineering both in Indonesia and in South East Asia.