THE STRATEGY TO ACCELARATE OIL AND GAS E&P BUSINESS LIFE CYCLE

Abstract

The oil and gas business is one of the industries that supports the Indonesian economy. The business chain involves many industries from upstream to downstream, including other derivative industries that are very diverse. The oil and gas business chain starts from the upstream side, the transportation/midstream industry, the downstream industry, to the derivative industries. The objective of this paper is to define the strategy how to accelerate oil and gas E&P business life cycle. In 2017, the entire Indonesian oil and gas industry, including the supporting industries, contributed 62.67% of Indonesia's GDP. So it is important for the government to manage the sector appropriately to take advantage of it as a driving force for the Indonesian economy and strategically take advantage of this momentum to prepare for Indonesia's future development growth. Before advance into strategic stimulation, it needs to be understood that there are several driving forces that can stimulate the growth of the oil and gas business in Indonesia. Some of these driving forces are the supply of fossil energy, market demand for fossil energy, upstream fossil energy prices, end-user fossil energy prices, global fossil energy prices, transport infrastructure and fossil energy processing availability, government regulations, availability of renewable energy, non-fossil energy prices, environmental regulations, technological developments, business competition in the energy supply sector, geopolitical, as well as Indonesia's economic growth in general