JAKARTADAILY.ID – The Indonesian Minister of Energy Arifin Tasrif stated that the upstream Oil and Gas industry faces big challenges along with the global transformation towards a clean energy transition.
Speaking at the opening of the "3rd International Convention on Indonesian Upstream Oil and Gas" at the Bali Nusa Dua Convention Center, Bali, Wednesday, November 23, 2022, Arifin said, based on the Emission Gap report by the United Nations Environment Program (UNEP), total emissions in 2021 of 52.8 Giga Tonnes of CO2, with fossil energy emissions, including Oil and Gas producing 37.9 Giga Tonnes of CO2 or nearly 72 percent.
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Thus, in order to encourage the energy transition and use resources that are more environmentally friendly, the world's financial institutions stop financing new Oil and Gas exploration and exploitation projects, and choose to fund new and renewable energy projects.
For this reason, Arifin asked Oil and Gas companies to diversify their operations by investing in non-core sectors, especially in the green energy sector.
Furthermore, he said that Indonesia had set a target of Net Zero Emissions in 2060 or sooner. In the energy transition process, the role of the Oil and Gas sector holds a very important position.
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“The gas sector will be the bridge for the transition from fossil fuels to renewable energy. Of course, this energy transition will be carried out in several stages by considering competitiveness, cost, availability, and sustainability," he added.
In more detail, Arifin described the program that will use gas, which includes expanding the use of gas as a fuel and industrial raw material by building integrated gas transmission and distribution infrastructure, converting diesel to gas in power plants, and building gas pipelines for households and small businesses.
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