Oil and Gas Have Significant Role in Global Energy Transition, Minister Says
- VIVA.co.id/Mohammad Yudha Prasetya
Jakarta – The oil and gas sectors will continue to play a significant role while the world strives to transition to clean energy to achieve the Net-Zero Emissions target, Energy and Mineral Resources Minister Arifin Tasrif stated.
"For Indonesia, oil and gas will continue to play a crucial role in ensuring adequate energy supply, especially for transportation and power plants, during the transition period toward net-zero emissions in 2060," the Minister said in Tangerang, Banten, on Tuesday, as quoted from Antara site.
Speaking at the Indonesia Petroleum Association Conference and Exhibition 2024, Minister Tasrif affirmed that gas will be the sole energy resource of renewable power plants.
Menteri ESDM, Arifin Tasrif, saat mengunjungi deretan booth di IPA Convex 2024, ICE BSD, Tangerang, Banten, Selasa, 14 Mei 2024
- VIVA.co.id/Mohammad Yudha Prasetya
"Albeit so, the upstream sector of the oil and gas industries must apply strategies for reducing emissions, including by implementing clean energy technology, such as carbon capture and storage (CCS) and carbon capture, utilization, and storage (CCUS)," the Minister stated.
In order to meet its needs for oil and gas, he stated that Indonesia is focusing on the exploration of oil and gas basins.
"Indonesia is storing huge quantities of untapped oil and gas reserves. As many as 68 out of 128 hydrocarbon basins have yet to be explored,"
The minister then drew attention to the BP Energy Outlook 2023, which has shown that the total consumption of energy, including oil and gas, is projected to peak in the second half of the 2020s, based on the accelerated and net-zero energy transition scenarios.
"In contrast, in the new momentum scenario, the total consumption will continue to increase until the 2040s and will reach a stable point in 2050," Minister Tasrif elaborated.
The Minister remarked that all the three scenarios point to the continued, despite declining, direct utilization of oil and gas until 2050.
According to Minister Tasrif, the decline would be caused by the enhancement of energy efficiency, an increase in the use of electricity, and decarbonization in the electricity sector.
He then emphasized the need for all relevant stakeholders to collaborate to ensure adequate supply of energy in the era of energy transition.
"I would like to underline the importance of stepping up collaboration and partnerships to face challenges related to energy supply while reducing emissions," he concluded.
