Presented in 20th ARTC conference in Jakarta

1. Q.1. Why Globally Future of
Petroleum Industries is in doldrum ?
Globally Oil & Gas sector as a whole and particularly petroleum
industries all are in doldrums due to following reasons.
 Lower Crude Prices
 Competition from FLNG & shale crude / gas and Renewable Solar Energy
 Ageing of Equipment causing frequent shutdown/catastrophes
 Tighter regulation on spills & Emissions
 Retirement and shortage of skill manpower
 Lack of real expertize of inspection & reliability expert
 Poor Margin
 Increased maintenance and operating cost
 Lack of funds for integration of refineries with petrochemicals
 Mandatory regulation for high quality products (Euro V & Euro VI )
 Climate of Change & Global Warming

2. All above resulting increased risk, more cost and high level of
complexities to optimize performance of facilities, assets and
workforce. However, in Asia, fate of downstream industries is
differing region to region. Middle East is fully saturated and low
oil price has broken the backbone of OPEC countries like Saudi &
Iran. South East Asian countries including China are fully
saturated in consumption of petroleum and facing the threat of
big competition. However, in India & Indonesia, where per capita
consumption of petroleum product is still lowest in the world
taking the full advantage of low oil price regime and its economy
shall grow since it imports most of its consumption of petroleum
from outside. India is going to become the Pivot for petroleum
industries and Indonesia is emerging as good consumer in Asia.