• 20 mins DOE Seeks To Boost Usage Of Carbon Capture Tech
  • 1 hour Taxpayers Likely To Pick Up The Growing Tab For DAPL Protests
  • 4 hours WTI At 7-Month High On Supply Optimism, Kurdistan Referendum
  • 10 hours Permian Still Holds 60-70 Billion Barrels Of Recoverable Oil
  • 15 hours Petrobras Creditors Agree To $6.22 Billion Debt Swap
  • 19 hours Cracks Emerge In OPEC-Russia Oil Output Cut Pact
  • 23 hours Iran Calls On OPEC To Sway Libya, Nigeria To Join Cut
  • 1 day Chevron To Invest $4B In Permian Production
  • 1 day U.S.-Backed Forces Retake Syrian Conoco Gas Plant From ISIS
  • 1 day Iraq Says Shell May Not Quit Majnoon Oilfield
  • 4 days Nigerian Oil Output Below 1.8 Million BPD Quota
  • 4 days Colorado Landfills Contain Radioactive Substances From Oil Sector
  • 4 days Phillips 66 Partners To Buy Phillips 66 Assets In $2.4B Deal
  • 4 days Japan Court Slams Tepco With Fukushima Damages Bill
  • 4 days Oil Spills From Pipeline After Syria Army Retakes Oil Field From ISIS
  • 4 days Total Joins Chevron In Gulf Of Mexico Development
  • 4 days Goldman Chief Urges Riyadh To Get Vision 2030 Going
  • 4 days OPEC Talks End Without Recommendation On Output Cut Extension
  • 4 days Jamaican Refinery Expansion Stalls Due To Venezuela’s Financial Woes
  • 5 days India In Talks to Acquire 20 Percent Of UAE Oilfield
  • 5 days The Real Cause Of Peak Gasoline Demand
  • 5 days Hundreds Of Vertical Oil Wells Damaged By Horizontal Fracking
  • 5 days Oil Exempt In Fresh Sanctions On North Korea
  • 5 days Sudan, South Sudan Sign Deal To Boost Oil Output
  • 5 days Peruvian Villagers Shut Down 50 Oil Wells In Protest
  • 5 days Bay Area Sues Big Oil For Billions
  • 5 days Lukoil Looks To Sell Italian Refinery As Crimea Sanctions Intensify
  • 6 days Kurdistan’s Biggest Source Of Oil Funds
  • 6 days Oil Prices On Track For Largest Q3 Gain Since 2004
  • 6 days Reliance Plans To Boost Capacity Of World’s Biggest Oil Refinery
  • 6 days Saudi Aramco May Unveil Financials In Early 2018
  • 6 days Has The EIA Been Overestimating Oil Production?
  • 6 days Taiwan Cuts Off Fossil Fuels To North Korea
  • 6 days Clash In Oil-Rich South Sudan Region Kills At Least 25
  • 6 days Lebanon Passes Oil Taxation Law Ahead Of First Licensing Auction
  • 7 days India’s Oil Majors To Lift Borrowing To Cover Dividends, Capex
  • 7 days Gulf Keystone Plans Further Oil Output Increase In Kurdistan
  • 7 days Venezuela’s Crisis Deepens As Hurricane Approaches
  • 7 days Tension Rises In Oil-Rich Kurdistan
  • 7 days Petrobras To Issue $2B New Bonds, Exchange Shorter-Term Debt
Alt Text

Cheap Oil Or A Weak Dollar: Pick One

When the price of oil…

Alt Text

Reserves vs Valuations: Exxon’s Permian Predicament

ExxonMobil is having a difficult…

Alt Text

OPEC Production Falls Despite A Dip In Compliance

As stated in OPEC’s Monthly…

This Country Wants To Rejoin OPEC As Soon As Possible

This Country Wants To Rejoin OPEC As Soon As Possible

Who ever said there wouldn’t be any news coming out of the OPEC meeting in Vienna this week?

In a surprise announcement, Indonesia has decided to officially pursue full membership in the oil cartel. Indonesia is no stranger to OPEC. It used to be a member, but left six years ago. Now it hopes to rejoin by the time the group meets again in November 2015. Related: This Dutch Innovation May Solve The Energy Storage Problem

The move is a curious one considering Indonesia is not a net oil exporter. It consumes around 1.5 million barrels per day and only produces 800,000 barrels per day. Indonesia has insisted on becoming a full member despite the fact that full membership typically requires being a net exporter. It originally suspended its membership in the cartel in 2008 once its imports started to quickly surpass its level of exports.

There are currently only 12 members of OPEC. Indonesia once was the only Asian country in OPEC and would be again if it rejoins. Related: Forget The Noise: Oil Prices Won’t Crash Again

Meanwhile, Indonesia is seeking supply agreements with OPEC members in order to import oil. Indonesia has a fast growing economy and is continuously searching for more sources of supply. “We will discuss purchasing crude from them. We have a plan to build refineries, so we need crude supplies,” Wiratmaja Puja, a top official at Indonesia's Energy Ministry, said to Reuters in an interview. That would be crucial for a country that is desperate to increase its domestic production of refined products.

For years Indonesia has heavily subsidized the consumption of fuel, and removing the subsidies has been tricky as it would raise the ire of consumers. But the collapse in oil prices allowed the government to pare back some of the largesse. Still, demand for fuel remains strong and Indonesia’s refining sector has not been able to keep up. That has the government laying out plans to build four major refineries over the next decade, and it is holding bilateral meetings with OPEC member nations this week in order to attract investment and secure supply contracts. Related: Cold Shoulder For Russia Could Hint At OPEC Decision June 5th

The Secretary-General and OPEC governors will consider Indonesia’s application for membership.

By Charles Kennedy of Oilprice.com

More Top Reads From Oilprice.com:




Back to homepage


Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News