Implementation of coal development programs and the future role of indonesia as a potential coal supplier in the southwest Pacific region

The 1973 oil crisis and the increased domestic oil consumption during the 1970s made Indonesia aware of the vulnerability of its petroleum-based economy. Since oil—a limited energy resource—had formed the main source of foreign exchange earnings for decades, a policy of diversification of energy away from oil was imperative in order to meet the increasing energy demand in the country, while saving the valuable commodity for export purposes. An ambitious program to develop other energy resources, in particular coal, started with the rehabilitation and expansion of the two state-owned coal-mines in Sumatra. The coal produced was expected to fuel the newly built coal-fired power plants and the expanding cement industry.Aware of the limited available funds, the Government of Indonesia invited foreign investors to participate in the development of the nation's coal potential, especially in Kalimantan. The exploration efforts of these contractors resulted in the identification of vast reserves of coal that, when fully developed, would have been sufficient to meet the expected domestic coal demand. However, because of the world-wide recession and the sharp drop in oil revenue, ambitious construction programs in the power sector and the cement industry had to be restrained and coal consumption projections dropped substantially.In view of the vast coal potential identified, which in general is amenable to inexpensive openpit mining, and the large number of contractors involved in the development projects, it is anticipated that production capacity toward the end of the 1980s will far exceed domestic demand. Since the other ASEAN member countries and the northern industrialized Asian countries will be potential net importers of coal and in view of Indonesia's favorable geographic location, there is reason to believe that excess Indonesian coal can be allocated to the aforementioned export markets.     

Forecasting the limits to the availability and diversity of global conventional oil supply

Due to the critical importance of oil to modern economic activity, and oil’s non-renewable nature, it is extremely important to try to estimate possible trajectories of future oil production while accounting for uncertainties in resource estimates and demand growth, and other factors that might limit production. In this study, we develop several alternate future scenarios for conventional oil supply, given the current range of the estimates of resource availability and of future demand, and assuming that production will continue to increase unconstrained by political or economic factors such as deliberate withholdings or prolonged global recession. Our results predict that global production of conventional oil will almost certainly begin an irreversible decline somewhere between 2004 and 2037, at 22 to 42 billion barrels per year, depending upon how much oil is available from the earth’s crust and the growth rate in its use. In addition, we found that the increasing domestic use of conventional oil in oil-producing countries is very likely to eliminate over time the ability of these countries to export oil to net-consumer countries, so that the number of net-exporting countries will be reduced from 35 today to between 12 and 28 by 2030, and fewer subsequently. The geopolitical and economic implications of these trends are likely to be pronounced if reliance on cheap oil is not reduced prior to the peak.     

全球油气生产西移与消费东移的趋势及其影响

因技术进步和高油价,非常规资源正在成为战略接替,西半球油气供应在全球的地位越来越重要,将从净进口变为净出口;发展中国家油气消费进入快速增长期,世界油气需求重心由西向东转移,亚太地区成为世界最大油气消费地区。这些将改变世界油气市场和地缘政治格局,改变世界竞争形势,对中国既是机遇更多的是挑战。要坚持立足国内、增源与节流并举,坚持科学替代和技术创新,坚持增强全球供应能力,坚持参与全球能源治理。     

Analysis of Iran's crude oil export future capacity

The paper analyzes Iran's oil export capacity and the factors affecting it. First, the local energy demand is reviewed and crude oil, with 5.7% annual growth rate, is introduced as a major source to respond to the increasing domestic energy demand. Then, the national plans for controlling the local demand and replacing oil with other types of energy carriers are reviewed to create a view over the future of local demand for crude oil in Iran. In the next step, crude oil production and exploration situation in Iran are investigated and the required increase in production to maintain the present level of export is calculated. By estimating the average capital expenditures for adding each barrel of new capacity to Iran's daily oil production, the necessary annual investment to compensate the production drop and domestic consumption growth for maintaining the export is introduced. Then, the future of oil export in Iran is predicted in three optimistic, reference, and pessimistic scenarios on the basis of the country's ability in managing the financial resources in upstream oil industry. Finally, domestic and foreign investment and the history of buyback contracts and their undeniable role in development of Iranian oil and gas projects are discussed.     

全球油气资源分布及我国海外油气资源战略举措

目前,在全球范围内,油气资源分布不均的格局基本没有改变,虽然油气产量与消费量总体平衡,但地区产消布局极不均衡,未来油气资源接替主要依赖于地质条件更为复杂的区域。虽然近年来我国在获取海外油气资源方面取得了显著成绩,初步建成非洲、中亚—俄罗斯、南美洲、中东和亚太5个海外油气合作区域,西北、东北、西南和海上四大能源进口通道的战略格局已基本形成,但油气供需失衡的形势依然十分严峻。我国利用海外油气资源面临来自石油消费大国、石油生产大国、跨国石油公司以及资源国等多方面的挑战,需要制定更加切实可行的战略目标和保障措施。首先,国内几大石油公司要有全局意识,协调发展;同时要坚持与资源国共同发展的基本原则;不能只以海外权益油气产量为单一目标,要同时兼顾技术发展,形成一体化产业链;要注重进口来源多元化,分散风险。管道气源可考虑中亚—俄罗斯和东南亚地区,近期不宜到中东和北非地区开采油气资源,可通过贸易方式获取。针对全球油气资源的研究要与时俱进,我国政府也应给予石油公司最大限度的支持,同时要充分发挥上海合作组织的作用。     

Solving the oil independence problem: Is it possible?

As currently discussed in political circles, oil independence is unattainable—lacking coherent meaning and wedding policymakers to the notion that they can never accomplish it. Contrary to this thinking, more than a dozen different sets of technologies and practices could increase domestic supply and reduce demand for oil to the point of making the US functionally independent from oil price shocks. However, achieving this goal demands concerted action to expand and diversify conventional domestic oil supplies, reduce overall demand in the transportation and buildings sector, and continue to develop alternative fuels. If policymakers undertook such actions today, the US could become oil independent by 2030.     

Technical-economic aspects of the utilization of geothermal waters

This paper reports on the world energy consumption between 1960 and 1984 from primary energy sources (coal, natural gas, oil, hydropower, nuclear energy) and the same in percentages from 1925. This highlights the diminishing role of coal and the increased consumption of gas and oil. The latter has stabilized around 42% of the total after the drop in demand resulting from the oil crisis of 1973.The world energy consumption has then been divided into industrialized and developing countries. It appears that the latter, with a population equal to 68% of the total world population, consumed 23% of the world energy in 1982. Furthermore, the consumption figures show that the demand for domestic energy is much smaller in developing countries, and it is well-known that domestic energy consumed is one of the parameters used to assess standard of living.The total installed electric capacity throughout the world is then reported, divided between developed and developing countries, showing that the latter consumed 11% of all the electricity generated in the world in 1981. The world installed electric power of geothermal origin at the end of 1985 is shown, along with estimates for 1990. Geothermal energy represents 0.2% of the world electric power. This is obviously a small figure and indicates that geothermal energy plays a minor role on the world energy scene. However, if we distinguish between industrialized and developing countries, we can observe that, with their currently limited electrical consumption but good geothermal prospects, the developing countries could achieve quite a significant contribution to their total electric energy from that of geothermal origin, increasing at the moment from 3 to 19%.Finally, a comparison is made between electricity generating costs of different sources, showing that geothermal energy is competitive. A table illustrates the world evolution in installed geothermal capacity from 1950 to 1985.The non-electric uses of geothermal energy, on the other hand, have a rather insignificant role in both the developing and industrialized countries. It is unlikely that geothermal energy will ever achieve a greater significance in this sector, with a few rare exceptions.     

一季度石油市场供需形势分析与展望

随着2003年第1季度我国经济的快速发展,带动石油消费需求强劲增长。在我国战略石油储备政策的引导下,国内石油资源大幅增长。此季度国际市场石油价格持续高位,使得我国石化行业经济效益显著增长,但同时也对我国的国家安全及石油下游行业生产经营产生了不利影响。本文对2003年石油市场供需进行了预测,认为随着伊拉克问题的解决,本年全球经济的缓慢复苏,总体上说,战后国际原油市场供给基本可以保证世界经济增长的需要。而在国内的经济带动下,我国市场对石油产品的需求将保持快速增长的态势。     

Prospects for coal gasification in Pakistan

Pakistan is currently facing serious energy supply problems. Energy demand has been increasing by about 8% per year during the last 12yr and this trend is likely to continue. Since 1980–1981 the oil import bill has been consuming more than 50% of yearly export earning. As there is not much scope for a sizeable increase in the domestic supply of gas, oil, or hydroelectric power, increasing the use of domestic coal is necessary to avoid excessive dependence on imported energy. Coal gasification to produce substitute natural gas (SNG) is not economical at present coal production costs, due to the low cost of indigenous gas and subsidized furnace oil and kerosene and the high SNG production costs from the technology available at present. If domestic prices of gas and liquid fuels are increased to the level of current international oil prices and developments in coal gasification technologies can bring about expected reductions in capital costs and improvements in efficiency, coal gasification may become economical in Pakistan. It is estimated that indigenous coal resources can potentially supply 3–6 million TCE/yr of SNG by 2000—about 10–20% of the substitutable fossil fuels demand for that year—along with meeting about 9% of the electricity demand.     

Do oil price changes have symmetric or asymmetric effects on Korea’s demand for imported crude oil?

The existing literature on demand for crude oil in developed and developing countries typically assumes that the effects of oil price changes are symmetric. In this paper, we use the nonlinear autogressive distributed lag (ARDL) approach of Shin et al. (2014) and test whether the effect of oil price changes on demand for imported crude oil is symmetric or asymmetric in the case of Korea. Using quarterly data over the last two decades, the results show that the oil price effects are indeed asymmetric in the long run; Korea’s imported demand for crude oil is more responsive to oil price spikes than to oil price plunges. However, the asymmetric effects are not observed in the short run.     

我国石油供需发展历程及预测分析

石油作为重要的战略能源与基础性产品,对国民经济的发展将起到至关重要的作用,尤其在经济危机之后国际局势动荡,使我国的石油市场受到严重影响。从产量、进出口和国际局势的影响等3方面对我国石油供给发展状况进行介绍,并结合石油需求发展状况和石油安全对我国石油供需发展历程进行科学分析。在此基础上．选取2000～2012年这13年的石油产量和消费量为原始数据,运用灰色预测法和线性回归分析法分别对我国2013～2020年的石油产量和消费量进行预测。结果表明,我国石油消费量的增长速度明显高于产量的增长速度．与持续膨胀的石油需求相比,我国石油的自给能力几乎已经达到了极限,供不应求的状态将日益严重。提出了有针对性的建议：重视和增加石油储备资金投入,加大勘探力度和技术水平,全方位保证我国石油供应安全;走能源多元化道路,建立节约型消费模式,抑制石油消费地过快增长;开发下游市场,贯彻“走出去”战略,有效弥补国内石油供需缺口。     

The impact of oil shocks on exchange rates: A Markov-switching approach

This paper uses Markov-switching models to investigate the impact of oil shocks on real exchange rates for a sample of oil exporting and oil importing countries. This is an important topic to study because an oil shock can affect a country's terms of trade which can affect its competitiveness. We detect significant exchange rate appreciation pressures in oil exporting economies after oil demand shocks. We find limited evidence that oil supply shocks affect exchange rates. Global economic demand shocks affect exchange rates in both oil exporting and importing countries, though there is no systematic pattern of appreciating and depreciating real exchange rates. The results lend support to the presence of regime switching for the effects of oil shocks on real exchange rates.     

National energy planning in Indonesia

Because Indonesia is richly endowed with a variety of energy resources (oil, gas, coal and hydro and geothermal energy potential), conservation appears to be a less pressing problem than it is elsewhere.The management and planning, on a national scale, of energy production and use began only recently with the formation of the Department of Mining and Energy.The paper outlines the evolution of Indonesia's energy production, domestic demand, and oil and gas exports since the early 1970s, and it provides a forecast to 1984 and beyond.Oil, of course, is predominant (providing about 60% of foreign earnings); followed by natural gas which is also exported. Coal mining on a sizeable scale is just beginning in Southern Sumatra, while hydropotential is harnessed only to a very small extent so far, mainly in the form of multipurpose installations.At present, the bulk of the rapidly growing domestic demand is satisfied by oil, primarily in the form of kerosene which is very heavily subsidized for social reasons. Kerosene competes at the village level with firewood which is available on a non-commercial basis.The policy of the government is aimed at gradually changing this unsatisfactory state of affairs, by restructuring domestic demand so as to draw it away from the precious exportable oil. This, however, is not a simple task.     

Determinants of China's energy imports: An empirical analysis

Sustained economic growth in China has triggered a surge of energy imports, especially oil imports. This paper investigates the determinants of China's energy import demand by using cointegraiton and VECM techniques. The findings suggest that, in the long run, growth of industrial production and expansion of transport sectors affect China's oil imports, while domestic energy output has a substitution effect. Thus, as the Chinese economy industrializes and the automotive sector expands, China's oil imports are likely to increase. Though China's domestic oil production has a substitution effect on imports, its growth is limited due to scarce domestic reserve and high exploration costs. It is anticipated that China will be more dependent on overseas oil supply regardless of the world oil price.     

World oil demand’s shift toward faster growing and less price-responsive products and regions

Using data for 1971–2008, we estimate the effects of changes in price and income on world oil demand, disaggregated by product – transport oil, fuel oil (residual and heating oil), and other oil – for six groups of countries. Most of the demand reductions since 1973–74 were due to fuel-switching away from fuel oil, especially in the OECD; in addition, the collapse of the Former Soviet Union (FSU) reduced their oil consumption substantially. Demand for transport and other oil was much less price-responsive, and has grown almost as rapidly as income, especially outside the OECD and FSU. World oil demand has shifted toward products and regions that are faster growing and less price-responsive. In contrast to projections to 2030 of declining per-capita demand for the world as a whole – by the U.S. Department of Energy (DOE), International Energy Agency (IEA) and OPEC – we project modest growth. Our projections for total world demand in 2030 are at least 20% higher than projections by those three institutions, using similar assumptions about income growth and oil prices, because we project rest-of-world growth that is consistent with historical patterns, in contrast to the dramatic slowdowns which they project.     

Correlation between Chinese and international energy prices based on a HP filter and time difference analysis

To establish a reasonable system and mechanism for Chinese energy prices, we use the Granger causality test, Hodrick–Prescott (HP) filter and time difference analysis to research the pricing relationship between Chinese and international energy prices. We find that Chinese and international crude oil prices changed synchronously while Chinese refined oil prices follow the changes of international oil prices with the time difference being about 1 month to 2 months. Further, Australian coal prices Granger causes Chinese coal prices, and there is a high correlation between them. The U.S. electricity price is influenced by the WTI crude oil price, the U.S. gasoline price and the HenryHub gas price. Due to the unreasonable price-setting mechanism and regulation from the central government, China′s terminal market prices for both electricity and natural gas do not reflect the real supply–demand situation. This paper provides quantitative results on the correlation between Chinese and international energy prices to better predict the impact of international energy price fluctuations on China′s domestic energy supply and guide the design of more efficient energy pricing policies. Moreover, it provides references for developing countries to improve their energy market systems and trading, and to coordinate domestic and international energy markets.     

Can expanded exploration lower oil prices?

We suggest that the oil-exporting nations can be divided into two main groups: “profit maximizers” who require their oil revenues for domestic development and “optional producers” who can forego export revenues for considerable periods. A substantial part of the cartel's market power derives from the ability of the optional producers to withstand loss of income. The consuming nations have no equivalent ability to withstand supply cuts.If all oil exports were supplied by profit maximizers, it is likely that supply security would be greater and prices lower. Profit maximizers do not have as much market power because their need for revenues is symmetrical with the consuming nations' need for oil. Consequently, it appears to be in the consuming nations' interests to restructure the oil trade so that profit maximizers account for a larger share and optional producers a lesser share.To accomplish this, additional supplies of oil must be found. Recent experience suggests that the best oil targets are not in the consuming countries, but, rather, in Third World countries. There is some question about whether or not these resources will be developed.Oil companies, the traditional explorers, may be reluctant to accept the financial risks. If after careful examination it is concluded that exploration will remain underfunded, it may be in the consuming nations' interests to sponsor exploration abroad. Greater supply security will follow from diversification of supplies; lower prices will follow from augmented production confronting inelastic demand.     

Modelling the world oil market: Assessment of a quarterly econometric model

This paper describes a structural econometric model of the world oil market that can be used to analyse oil market developments and risks. Oil demand depends on domestic economic activity and the real price of oil. Oil supply for non-OPEC producers, based on competitive behaviours, is constrained by geological and institutional conditions. Oil prices are determined by a “price rule” that includes market conditions and OPEC behaviour. Policy simulations indicate that oil demand and non-OPEC supply are rather inelastic to changes in price, while OPEC decisions about quota and capacity utilisation have a significant, immediate impact on oil prices.     

Reliable in the long run? Petroleum policy and long-term oil supplier reliability

Accelerating oil import dependence in energy consuming nations highlights the importance of having energy supplies at sufficient levels and at stable and reasonable prices. Consequently, it is crucial that oil exporters realize their full production potential. Current debates on energy security are often focused on short-term risks e.g. sudden disruptions due to wars, domestic instability, etc. However, when it comes to assessing oil supplier reliability it is equally important to assess their longer term ability and willingness to deliver oil to the global market. This study analyzes the effects of petroleum investment policies on crude oil production trends in 14 major oil producing countries (2000–2010) by focusing on the political–institutional frameworks that shape the investment conditions for the upstream oil sector. Our findings indicate that countries with less favorable oil sector frameworks systematically performed worse than countries with investor friendly and privatized sectors. The findings indicate that assessments based on remaining reserves and planned production capacities alone could inflate expectations about future oil supplies in a world where remaining crude reserves are located in countries with unfavorable investment frameworks.     

国内成品油定价机制及其对炼油企业的影响

近年来,消费者和社会普遍质疑国内成品油价格是“涨快跌慢”、“涨多跌少”.油价不断上涨,其根本原因是国际原油价格的持续上涨和国内石油需求的大幅增长.通过对比国内外不含税成品油价格可见,截至2011年10月9日,原油移动变化率合计上涨105.39％,Brent油价上涨61.60％,而国内90号汽油价格仅上涨38.99％,同时下调油价速度远远快于上调速度.在当前政策条件下,炼油企业没有成品油定价权,既要面对原油价格高涨、原油成本占生产成本95％左右的现实,又要服从国家以民生利益为重的指导思想,成品油价格只能少涨或不涨.经粗略计算,原油价格92.5美元/bbl是目前炼油企业的赢亏平衡点,按2012年1月30日Brent油价110.75美元/bbl和当日汇率计算,炼油企业每加工1t原油就亏损约844元人民币.当前的成品油定价机制有必要进一步改进,建议应把22个工作日缩短为10个或5个,油价波动幅度缩小为2％～3％;适当修正同等涨跌幅度下上涨和下跌之间存在的额度差异:适当选择并合理调整参照原油的品种和权重;同时也可以考虑将成品油消费税由价内税改为价外税.