Econometric Model for Indonesian Fiscal and Monetary Policies in Oil & Gas Sector

2021 ◽  
Vol 39 (10) ◽  
Author(s):  
Mohamad Firwan Aprizal ◽  
Bambang Juanda ◽  
Anny Ratnawati ◽  
Abdul Muin
Keyword(s):  
Success Rate ◽  
Empirical Evidence ◽  
Oil And Gas ◽  
Continuous Production ◽  
Trade Deficit ◽  
Cost Recovery ◽  
Advanced Technology ◽  
Monetary Policies ◽  
Recovery System ◽  
The Impact

Indonesia has been an oil exporting country since 1965. Indonesia is currently in a period of declining in production but an increase in consumption has caused a trade deficit that continues to increase over time. Continuous production decline reflects limited discovery as a result of declining investment. The focus of the study is to evaluate variables affecting lifting, reserves and investment in oil and gas sector.  Several VAR or VECM panel models are built to provide empirical evidence. The results of the empirical study give a recommendation for both fiscal and monetary policies. The impact of interest rate on investment is less significant, but the exchange rate and inflation are higher on investment. Therefore, monetary policy should be directed toward controlling inflation and moderate intervention from Central Bank to retard depreciation of Rupiah. The success rate of exploration activities to increase reserves is proven empirically relatively low. The Application of more advanced technology supported by R&D is an important component of fiscal policy so incentives need to be added to these two things to increase the success rate of exploration activities. Misinterpretation that cost recovery does not increase lifting can be corrected because the response of lifting due to cost recovery is positive. Government should reconsider the policy of eliminating the PSC Cost Recovery system by considering empirical evidence from the results of this study which proves misconceptions about cost recovery. The PSC Cost Recovery system is recommended to be reinstated in the future with improvements.

scholarly journals Corrosion Control, Prevention and Mitigation in Oil & Gas Industry

2019 ◽  
Vol 9 (2) ◽  
pp. 1568-1572
Keyword(s):  
Oil And Gas ◽  
Continuous Production ◽  
Oil And Gas Industry ◽  
Co2 Corrosion ◽  
Gas Industry ◽  
Well Control ◽  
Material Choice ◽  
Definition Of ◽  
The Impact ◽  
Oil Gas

The impact of corrosion within the refining industry ends up in the failure of components. This failure leads to closing down the plant to scrub the corroded components. Additionally, corrosion normally causes serious environmental issues, namely spills and releases. A vital resource for all those that are concerned within the corrosion management of oil and gas infrastructure, corrosion management within the oil and gas industry provides engineers and designers with the tools and strategies to plan and implement comprehensive corrosion-management programs for oil and gas infrastructures. Control of corrosion is important for continuous production and evading the well control losses. Materials to be used in down hole have to meet certain characteristics to avoid corrosion and provide additional mechanical strenght. It is potential to determine a logical series of steps for material choice, incorporating analysis of the surroundings, corrosion rate calculations, and final material choice based on established limits. Several developments have taken place in refinement the calculation of CO2 corrosion rates. Moreover, the definition of bitter examination has been reviewed and a way wider evaluation of the relevance of varied established and new materials for various service conditions has been created.

scholarly journals Examining the relationship between patent applications and financial positions in the upstream Oil and Gas Industry: evidence from Brazil

2021 ◽  
Vol 8 (4) ◽  
pp. 78-102
Author(s):  
Fábio de Oliveira Paula ◽  
Gabriel Marcuzzo do Canto Cavalheiro
Keyword(s):  
Financial Performance ◽  
Empirical Evidence ◽  
Oil And Gas ◽  
Oil And Gas Industry ◽  
Gas Industry ◽  
Financial Position ◽  
Recent Increase ◽  
Patent Applications ◽  
The Impact ◽  
The Relationship

With the discovery of the Pre-Salt reserves, exploration of oil and gas is being strongly extended in Brazil, contributing to the recent increase of the demand for drilling capabilities. This paper discusses the impact of this oil discovery by assessing the relationship among the growth of proven reserves, the financial position of firms, and patent applications in the Brazilian upstream oil and gas industry. We provide empirical evidence indicating that firms with a lower financial performance prior to the pre-salt discovery were more aggressive in increasing the number of patent filings addressing technologies of the upstream oil and gas domain.

scholarly journals The impact of oil prices on the banking system in the Gulf Cooperation Council

2017 ◽  
Vol 6 (2) ◽  
pp. 32-47
Author(s):  
Padamja Khandelwal ◽  
Ken Miyajima ◽  
Andre Santos
Keyword(s):  
Empirical Evidence ◽  
Oil And Gas ◽  
Global Financial Crisis ◽  
Oil Prices ◽  
Gulf Cooperation Council ◽  
Oil Price ◽  
Bank Capital ◽  
Price Movements ◽  
The Impact ◽  
Panel Vector Autoregression

This paper examines the links between global oil price movements and macroeconomic and financial developments in the Gulf Cooperation Council (GCC). The GCC economies can be adversely affected by low oil prices due to their high dependence on oil and gas exports and macro-financial linkages which can amplify the effects of oil price movements over the financial cycle. Historically, systemic financial sector risks rose in the GCC countries with the oil price upswing in the years before the global financial crisis. Against this background, a range of multivariate panel approaches, including a panel vector autoregression approach, were applied to macroeconomic and bank-level data covering the six GCC economies and span 1999–2014. The paper finds strong empirical evidence of feedback loops between oil price movements, bank balance sheets, and asset prices. Empirical evidence also suggests that bank capital and provisioning have behaved countercyclically through the cycle. That is, these ratios increase during good times. This has helped strengthen the resilience of the financial system to the oil price decline since mid-2014.

scholarly journals Albania's Central Bank's Monetary Policy Has Failed

2019 ◽  
Vol 2 (2) ◽  
pp. 73
Author(s):  
Alqi Naqellari ◽  
Sokol Paҫukaj
Keyword(s):  
Monetary Policy ◽  
Central Bank ◽  
Trade Deficit ◽  
Negative Consequences ◽  
Internal Factors ◽  
Monetary Policies ◽  
Analysis And Synthesis ◽  
Macroeconomic Indicators ◽  
Liquid Trap ◽  
The Impact

The subject of this paper will be the Central Bank's monetary policy in terms of the Albanian monetary market. Its purpose will be to determine the effects of monetary policy, its consequences on some of the key macroeconomic indicators. From the analysis of data, it was found that the Central Bank's policy, which has its main objective, "achieving and preserving the level of prices", is applied in the conditions of an unequal monetary market, because the money market is almost divided equal to 50/50 between currency and local currency (All). These main internal factors, and other external factors, have made the monetary policy applied by the Central Bank to have no impact or have negative consequences on key macroeconomic indicators. Central Bank monetary policy is currently smothered. Some of the negative consequences are: the decline of the impact on the inflation indicator, the transition of the Albanian economy to the "liquid trap", the change in the structure of deposit usage in favor of debt instruments, decrease of deposits in total and deposits in lek, the decline in purchasing power of deposits, the reduction of credit and the change of their structure, consequently the reduction of productive investments, euro depreciation, trade deficit growth, etc. Under these conditions, only fiscal policies have an impact. In order for the Central Bank's policies to become effective, with concrete implications on the economic indicators, fundamental changes need to be made. First, change its main objective by having the main objective "currency stability and economic growth" secondly, to establish a fully state-owned commercial bank in order to support the monetary policies and key sectors of the economy. The methods used in this paper are the method of description, comparison, analysis and synthesis, statistical methods etc.

Global Economic Crisis of 2008-2009: Sources and Roots

2009 ◽  
pp. 18-31
Author(s):  
G. Rapoport ◽  
A. Guerts
Keyword(s):  
Oil And Gas ◽  
Trade Deficit ◽  
Developed Countries ◽  
The Other ◽  
Energy Resources ◽  
Market Mechanisms ◽  
Production Output ◽  
The One ◽  
To Receive ◽  
Partial Destruction

In the article the global crisis of 2008-2009 is considered as superposition of a few regional crises that occurred simultaneously but for different reasons. However, they have something in common: developed countries tend to maintain a strong level of social security without increasing the real production output. On the one hand, this policy has resulted in trade deficit and partial destruction of market mechanisms. On the other hand, it has clashed with the desire of several oil and gas exporting countries to receive an exclusive price for their energy resources.

Consideration of Geopolitical Challenges within the Analysis of Geoenvironmental Risks for Oil and Gas Development of the Russian Arctic

2019 ◽  
Vol 16 (6) ◽  
pp. 50-59
Author(s):  
O. P. Trubitsina ◽  
V. N. Bashkin
Keyword(s):  
Oil And Gas ◽  
Oil And Gas Industry ◽  
Optimal Operation ◽  
The Arctic ◽  
Stage Model ◽  
Oil And Gas Development ◽  
Gas Industry ◽  
The Impact ◽  
Further Development ◽  
Geopolitical Risks

The article is devoted to the consideration of geopolitical challenges for the analysis of geoenvironmental risks (GERs) in the hydrocarbon development of the Arctic territory. Geopolitical risks (GPRs), like GERs, can be transformed into opposite external environment factors of oil and gas industry facilities in the form of additional opportunities or threats, which the authors identify in detail for each type of risk. This is necessary for further development of methodological base of expert methods for GER management in the context of the implementational proposed two-stage model of the GER analysis taking to account GPR for the improvement of effectiveness making decisions to ensure optimal operation of the facility oil and gas industry and minimize the impact on the environment in the geopolitical conditions of the Arctic.The authors declare no conflict of interest

Effective service delivery through quality management system (QMS) in oil and gas servicing companies, a case study of selected firms, Port Harcourt

2019 ◽  
Author(s):  
Chem Int
Keyword(s):  
Quality Management ◽  
Service Delivery ◽  
Management System ◽  
Oil And Gas ◽  
Quality Management System ◽  
Local Content ◽  
Port Harcourt ◽  
Test Of Hypotheses ◽  
The Impact ◽  
Effective Service

This study investigated the impact of Quality Management System (QMS) on effective service delivery in Oil and Gas Servicing Companies in selected firms in Port Harcourt, Nigeria. The opinion of 50 respondents were sampled using questionnaires, interviews as well as observation from journals and texts used in this work to examine the Quality Management System (QMS) of the selected firms. Using simple percentages and the Chi-square (X2) test of hypotheses, it was hypothetically established that the implementation of QMS practices, has impacted the work process, procedure and improvement on quality over the years in the Oil and Gas Servicing companies in Port Harcourt Nigeria. The research identified an adopted use of Failure Mode and Effect Analysis (FMEA) tool as a continual quality improvement initiative developed in the local content oil and gas servicing operation for equipment handling, management and to drive sustained improved performance quality processes as a key driver of a progressive that will place local content companies as an options for producing companies and at par with multinational oil and gas companies.

The Impact of Oil Price Fluctuations on Industry Stock Returns: Evidence from International Markets

2018 ◽  
Vol 5 (1) ◽  
pp. 1-12
Author(s):  
Elias Randjbaran ◽  
Reza Tahmoorespour ◽  
Marjan Rezvani ◽  
Meysam Safari
Keyword(s):  
Stock Returns ◽  
Oil And Gas ◽  
Negative Relationship ◽  
The United States ◽  
Oil Price ◽  
Price Variation ◽  
Price Changes ◽  
Price Fluctuations ◽  
Food And Beverage ◽  
The Impact

This study investigates the impact of oil price variation on 14 industries in six markets, including Canada, China, France, India, the United Kingdom, and the United States. Panel weekly data were collected from June 1998 to December 2011. The results indicate that price fluctuations primarily affect the Oil and Gas as well as the Mining industries and have the least influence on the Food and Beverage industry. Furthermore, in three out of six of these countries (Canada, France, and the U.K.), oil price changes negatively affect the Pharmaceutical and Biotechnology industry. One possible reason for the negative relationship between oil price changes and the Pharmaceutical and Biotechnology industries in the above-mentioned countries is that the governments of these countries fund their healthcare systems. Portfolio managers and investors will find the results of this study useful because it enables adjusting portfolios based on knowledge of the industries that are impacted the most or the least by oil price fluctuations.

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