Jakarta will struggle to draw investors in oil and gas

2018 ◽  
Keyword(s):  
Annual Meeting ◽  
Oil Spill ◽  
Oil And Gas ◽  
Government Intervention ◽  
Oil Prices ◽  
Oil Production ◽  
General Election ◽  
Content Type ◽  
Price Controls

Subject Indonesia's struggle to court investment in oil and gas. Significance In an address earlier this month at the Indonesia Petroleum Association (IPA)’s annual meeting, President Joko ‘Jokowi’ Widodo appeared to implicate state-owned oil and gas firm Pertamina in the country’s declining oil production. His government has announced plans for price controls for non-subsidised petrol products ahead of the general election due in April 2019. Impacts Increased government intervention in oil and gas will create new administrative burdens. Rising oil prices amid growing dependence on oil imports would lead to regular trade deficits. Pertamina may face further punitive action over the recent oil spill off Kalimantan island.

Iraqi Kurdistan could see oil and gas advances

2021 ◽  
Keyword(s):  
Oil And Gas ◽  
Oil Prices ◽  
Oil Production ◽  
Content Type ◽  
Oil Companies ◽  
Iraqi Kurdistan ◽  
Oil Sector ◽  
The Government ◽  
Slight Rise

Significance The oil sector managed a slight rise in oil production in 2020, despite the challenges of the pandemic and low oil prices. The KRG mostly managed to keep up payments to oil companies but did not assist Baghdad in making production cuts under the OPEC+ agreement. Impacts Combined new gas projects could meet domestic needs and potentially allow exports by the later 2020s. The government could resume payments of overdue amounts to international oil companies from this month. Talks with Baghdad will become more complex around planned elections in October 2021 and depending on legal developments with Turkey.

scholarly journals The Role of the Economist in Natural Resources Policy

1979 ◽  
Vol 8 (2) ◽  
pp. 17-26
Author(s):  
Emery N. Castle
Keyword(s):  
Natural Resources ◽  
Federal Government ◽  
Oil And Gas ◽  
Oil Prices ◽  
Jimmy Carter ◽  
Price Controls ◽  
Uniform Rate ◽  
Natural Resources Policy

On April 5 of this year President Jimmy Carter addressed the Nation on energy. After a brief introduction the President said:“Federal government price controls now hold down our own production and encourage waste and increase dependence on foreign oil.”The President then went on to say:“–I have decided that phased decontrol of oil prices will begin on June 1 and continue at a fairly uniform rate over the next 18 months. The immediate effect of this action will be to increase the production of oil and gas in our own country.”

Legacy issues constrain Sudan's economic recovery

2015 ◽  
Keyword(s):  
Oil Prices ◽  
Oil Production ◽  
Economic Recovery ◽  
Content Type ◽  
South Sudanese ◽  
Oil Exports ◽  
Fiscal Revenue

Significance Khartoum has benefited from a fixed per-barrel transit fee given falling oil prices, but the Sudanese economy has yet to recover from the shock caused by South Sudan's secession in 2011. According to the IMF's latest review, Sudan at that point lost three quarters of its oil production, one-half of its fiscal revenue and two-thirds of its international payments capacity. While the economy has begun to stabilise, recovery is fragile. Impacts Khartoum benefits from the delay to transit fee renegotiation, but talks are likely to begin soon. This may provoke renewed confrontations over other issues, such as the border and claims about rebel support. However, a renewed suspension of South Sudanese oil exports would hurt Juba more than Khartoum.

Low oil prices put pressure on China's energy policy

2015 ◽  
Keyword(s):  
Oil And Gas ◽  
Oil Prices ◽  
International Market ◽  
Domestic Demand ◽  
Energy Prices ◽  
Content Type ◽  
Oil Companies ◽  
National Oil Companies ◽  
Financial Pressure ◽  
Difficult Time

Subject Effect of low oil prices on China. Significance China is the world's second-largest oil user and imports nearly 60% of its annual requirements. If oil prices remain below 50 dollars per barrel, China's import bill for crude oil will fall by tens of billions of dollars in 2015, while the national oil companies (NOCs) face a difficult time as their profits from oil production are squeezed. However, the consequences are not straightforward due to the government's role in setting energy prices and the mix of commercial and state objectives of the NOCs. Impacts Financial pressure on China's NOCs will not be as great as on their international counterparts. The NOCs are likely to embark on a spree of buying overseas oil and gas assets. With contracted gas supplies exceeding domestic demand, Chinese LNG importers will sell surplus on the international market.

Low oil prices will force policy choices on Azerbaijan

2015 ◽  
Keyword(s):  
Oil And Gas ◽  
Banking System ◽  
Oil Prices ◽  
Fiscal Consolidation ◽  
Content Type ◽  
Policy Choices ◽  
The Past ◽  
Fiscal Space ◽  
Will Force ◽  
The Impact

Subject The impact of prolonged low oil prices. Significance Hydrocarbons drove rapid economic expansion in the past. The associated increase in income fuelled the growth of domestically oriented sectors, such as trade and construction. Publicly financed infrastructure spending, using the fiscal space created by oil and gas revenues, also contributed. Impacts Sluggish oil production will compound the impact of persistent low oil prices. Fiscal consolidation will also require a stronger focus on the prioritisation of spending. Devaluation has not fully restored competitiveness but is a source of stress for the banking system.

Oil optimism may face headwinds in Guyana

2016 ◽  
Keyword(s):  
Oil And Gas ◽  
Oil Prices ◽  
Economic Environment ◽  
Oil Exploration ◽  
Content Type ◽  
Border Dispute ◽  
Offshore Oil And Gas ◽  
Offshore Oil ◽  
Exploration Activity

Subject The outlook for offshore oil. Significance A recent offshore oil and gas find has given Guyana hope of becoming a significant oil producer. However, while this and an earlier find are encouraging and further exploration is planned, the current uncertain economic environment and fluctuating oil prices suggest that bringing these finds into production is not guaranteed. Impacts Oil exploration activity may prompt a flare-up of the continuing border dispute with Venezuela. A major offshore oil find would have a very significant impact on Guyana's GDP of some 4 billion dollars. However, over-optimism could lead to borrowing against an expected future windfall, or the temptation to prioritise 'vanity' projects.

Rivalries may cap Libya's oil export potential

2016 ◽  
Keyword(s):  
Revenue Management ◽  
Oil And Gas ◽  
Oil Production ◽  
Production Level ◽  
Content Type ◽  
Oil Export ◽  
New Challenges ◽  
Oil Company

Significance Libya's pre-revolution oil production level of around 1.6 million b/d has been disrupted by conflict since 2011. Impacts Further disputes over oil shipments and revenue management are likely. Field Marshal Khalifa Haftar and the Tobruk administration may also try to instigate new challenges to the National Oil Company. Under present conditions, only minor, place-holding investments in oil and gas will materialise. The GNA's credibility may further weaken.

Petroleum investors could cut their losses in Yemen

2017 ◽  
Keyword(s):  
Civil War ◽  
Oil And Gas ◽  
Oil Production ◽  
Liquefied Natural Gas ◽  
Solar Panels ◽  
Content Type ◽  
Remote Areas ◽  
Post Conflict ◽  
Oil And Gas Sector

Subject Yemeni oil production. Significance The oil and gas sector -- which was in any case in long-term decline, owing to a lack of investment -- suffered serious disruption after civil war broke out in March 2015, with oil, liquefied natural gas (LNG) and refining facilities closed, and ports blockaded to prevent delivery of oil products. The internationally recognised government of President Abd Rabbu Mansour Hadi has renewed efforts to encourage a recovery in oil production since late 2016, but these are hampered by the civil war and lawlessness in remote areas. Impacts Saudi Arabia and the UAE will be the main sources of oil imports, probably on concessional terms. Hydrocarbon exports will not provide sufficient finance for post-conflict reconstruction. Exports of LNG are unlikely to restart before 2020 at the earliest. A crisis of power provision will expand the market for small solar panels.

Vaca Muerta boost will not meet Argentine aspirations

2019 ◽  
Keyword(s):  
Oil And Gas ◽  
Political Instability ◽  
Fuel Price ◽  
Export Markets ◽  
Content Type ◽  
Price Controls ◽  
Vaca Muerta ◽  
Unconventional Oil And Gas ◽  
President Elect ◽  
Infrastructure Investments

Subject The outlook for Vaca Muerta. Significance Advisers to President-elect Alberto Fernandez are working on a set of measures whose aim would be to lure up to 28 billion dollars in investment into unconventional oil and gas projects through 2023. Impacts The likelihood of further exchange and fuel price controls and political instability will deter hydrocarbons investment. Distance from export markets and obstacles to necessary infrastructure investments will undermine hopes of a broader economic boost. Relatively capacious global hydrocarbons supplies may mute investor interest in costly projects facing political and regulatory instability.

Low oil prices set to accelerate Gulf subsidy reform

2015 ◽  
Keyword(s):  
Oil And Gas ◽  
Credit Rating ◽  
Government Expenditure ◽  
Oil Prices ◽  
Sharp Drop ◽  
Capital Projects ◽  
Content Type ◽  
Near Term ◽  
Rating Downgrades ◽  
Personal Incomes

Significance The sharp drop in oil prices to around 50 dollars, half their average level last year, has forced a serious fiscal rethink among the six Gulf Cooperation Council (GCC) states, who are heavily dependent on oil and gas exports. Following a decade of high oil prices, and a widespread assumption that prices would remain above 100 dollars, government expenditure has become bloated, with generous salaries and subsidies, and ambitious capital projects. Impacts Companies competing for government tenders are likely to face greater scrutiny over costs. Consumer-facing companies will be less seriously affected, given the likely limited impact on personal incomes in the near term. Bahrain and Oman could suffer credit rating downgrades. Stability in other GCC states is unlikely to be affected due to the protection of citizen benefits. Saudi Arabia will provide Bahrain with financial support if the fiscal squeeze weakens stability there.

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