• 2 minutes U.S. Presidential Elections Status - Electoral Votes
  • 5 minutes “Cushing Oil Inventories Are Soaring Again” By Tsvetana Paraskova
  • 7 minutes United States LNG Exports Reach Third Place
  • 37 mins Joe Biden's Presidency
  • 42 mins The Debate Starts : Remake Republican Party vs. Third Party
  • 1 hour An exciting development in EV Aviation: Volocopter
  • 9 hours Did I Miss Something?
  • 1 day The World Economic Forum & Davos - Setting the agenda on fossil fuels, global regulations, etc.
  • 2 days Is the Chinese CCP Following the Left's Leadership, or the Left Following the CCP's?
  • 2 days Here it is, the actual Complaint filed by Dominion Voting Machines against Sydney Powell
  • 8 hours JACK MA versus Xi Jinping
  • 2 days https://www.prageru.com/video/whats-wrong-with-wind-and-solar/
  • 1 day A Message from President Donald J. Trump - 5 minutes from The White House directly
  • 1 day Minerals, Mining and Industrial Ecology
How U.S. Shale Upended Global Crude Flows

How U.S. Shale Upended Global Crude Flows

U.S. shale oil has become…

Ecuador Scrambles To Clean Up Its Oil Industry

Ecuador Scrambles To Clean Up Its Oil Industry

Ecuador’s petroleum-dependent economy is struggling…

Charles Kennedy

Charles Kennedy

Charles is a writer for Oilprice.com

More Info

Premium Content

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:


Download The Free Oilprice App Today

Back to homepage





Leave a comment

Leave a comment




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