The International Energy Summit 2017 divided into three sessions of related topics

about the Oil Price Process and Regulation Difference : Decision in the Middle of Crisis as
the main theme. The first session is delivered by Mr Peter Grant as the president of AAPG
Asia Pacific. The discussed topic is about International Energy Issues and some of the Career
Development for undergraduate and young geoscientist in the future. As we all know, the
abundance of oil resources globally may prompt low – cost producers to use their competitive
advantage to increase market share. According to BP Energy Report in 2016, the global oil
price is dropped to below $40 per bbl between 2015 – 2016, and it made a big impact to some
industries. The current oil price collapse were caused by many factors, such as over – supply
which was we produced more oil that we consumed, and also OPEC that has not reduce the
production of oil, these reasons are making the oil price drop approx. 50% from its actual
price.

To reach the future exploration, we must change the strategy in exploration such as
lowering the risk but demand a high return, making the lead time short, less project
complexity, and changing the basing focus to NW African Margin, Offshore Guyana,
Barrents Sea and unconventionals. In Asia Region, the exploration focus in 2017 in in
Myanmar. According to Mr Peter, Myanmar has a certainity regulation and bigger size of
exploration blocks because they had no exploration since the 1960s. In terms of Indonesia,
we had this new regulation and terms that shows low or uncertainity, making a high risk
factor in exploration in Indonesia. This uncertainity is not quiet clear and difficult to monitor,
as well as Indonesia didn’t like the idea of having cost recovery, moreover the size of the
exploration blocks in getting smaller, making Indonesia has a lower exploration than
Myanmar. Also, the lost of government encouragement making Indonesia has lower activity
level to the new exploration, and it leads to lower prospect of oil and gas exploration.

But somehow, we can see these ups and downs of oil & gas price as an energy
industry cycles, that can go through about 7 – 10 years. Maybe around year 2017 – 2018, we
will see a reduced number of job openings and internships for young geoscientist and fresh
graduates, but when the oil price rebounds, we will see demand for new hires and recuitments
will increase greatly! So, as the new and younger generation, we must keep ourselves upskill,
by applying master studies of Ph.Ds and never give up on our believes and dreams in the
energy industries.
 This second session is delivered by Mr Denie S. Tampubolon, and he began by showing
the participant of a magazine tells about the end of the oil age. In 2003, Indonesia produce
around 20-30 barrel per day. But, in 1997-1998 they only produce 10 barrels per day and now,
they can produce 50 barrels per day. But people think that we are in oil crisis. Actually it is
only in their mind. That things, up and down oil price will continue and we will survive in the
future. Indonesia is abundant with energy not with petroleum. So we need to increase the
number of exploration. Unfortunately, in other countries it can maximize its resources because
the oil companies there manage the overall resources available. While in Indonesia, Pertamina
only controlled about 24-25% oil industry in Indonesia. This is a challenge for Pertamina to
increase that number. Several oil and gas companies have been taken over by Pertamina.
Although taken over, they keep hiring the same people, just change the management. After
taking over, they have to optimize working area and find new drilling wells. Exploration should
be encouraged, exploration is in your mind.

-The world oil supplies are at the point of equilibrium at lower oil prices-

The third session is delivered by Mr. A Rinto Pudyantoro, and he began his presentation
by explaining Indonesia’s oil and exploration situation. Indonesia's oil situation is still low. In
thirty years we will depend on other countries for oil and gas. Countries that still produce oil
and gas are located in Southeast, Middle East, and Africa. The average in Asia Pacific oil will
be exhausted within forty years, while Indonesia itself will be exhausted within fifty years. The
problem is the absence of a balance of production and consumption. We are not a country rich
in oil and gas compared to other countries.

Now our gas production is higher than oil production. It used to be more oil than gas.
If we do nothing then oil and gas production will decline year by year. Currently we are
dependent on the field of production, less exploration. Then we must find the potentials to be
produced. The problem is more directed to non-technical, not technical. Non-technica l
problems are more difficult to deal with because they deal with regulations and social
responses. For example, offshore exploration with onshore. It is easier offshore exploration in
terms of permissions. If the exploration is onshore then more demonstration. Changing
regulations and demos make investors hesitant in investing in Indonesia. Oil and gas itself is
easily an issue in politics that influences social thinking on oil and gas exploration. Then, the
problem in exploration is taxes. This affects the costs incurred for exploration. If the
exploration is reduced then the employment is reduced. But we do not have to be worry because
we have potential in oil and gas. There are many potential that undiscovered and reduce the
demo that makes investors afraid to invest in Indonesia.