The Indonesian Petroleum Association asserts that, “Exploration for oil in
Indonesia dates back to 1871, with the first commercial production beginning in 1885.” The success of one of the very first wells, drilled at Telaga Tunggal in 1885, triggered the explosion in the Indonesian oil industry. At a depth of only 121 meters, this well was producing commercial quantities of oil. This immediately led to further exploration and drilling of new oil fields throughout the region. The Royal Dutch Company and Shell Transport and Trading were the first two companies to spearhead the start of the oil industry in Indonesia. In 1890, the Royal Dutch Company was created to produce and refine oil as Shell Transport and Trading focused on the marketing and transportation side of the market. They merged in 1907 to form Royal Dutch Shell. In the literary work, “Earliest Days of Petroleum Industry in Indonesia,” it states that at this time “total production increased to 62,000 barrels per day, of which 95 percent was produced by Royal Dutch Shell.” By the turn of the century, there were about twenty companies exploring, if not already producing, oil in Indonesia. However, Royal Dutch Shell and the U.S. companies Stanvac and Caltex dominated the industry in Indonesia in the first half of the twentieth century. The major oil fields included Kruka and Ledok in East Java, Kampong Minyak and Sumpal in South Sumatra, and Perlak in North Sumatra. With these abundant fields and other new fields being discovered, crude oil production reached a new high in 1939. The production of crude oil reached 170,000 barrels per day, while approximately 180,000 barrels were being refined each day. As a result, nearly 75 percent of crude oil in the Far East came from I...
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...o be exported by helping meet domestic energy requirements. Indonesia dominates global palm oil production. Expected to produce 31 million metric tons in 2013, Indonesia is currently the largest producer and exporter of palm oil worldwide. Palm oil is a cheap and production efficient oil produced from the fruit of certain palms. With the growth of the palm oil industry, deforestation has become prevalent in Indonesia as a means to produce it. According to the Indonesian Ministry of Agriculture, “The total area of oil palm plantations in Indonesia is currently around eight million hectare; a number which is twice as much as in the year 2000.” The palm oil industry is expected to expand for a number of reasons. Crude palm oil is simple to produce and therefore has low production costs and international demand for it is increasing as a result of rising gasoline prices.
Rifin, A. (2010). The Effect of Export Tax on Indonesia’s Crude Palm Oil (CPO) Export Competitiveness. ASEAN Economic Bulletin, 27(2), 173–84.
On January 10th 1901 the discovery of oil at Spindletop would lead to the greatest economy boom the world has ever encountered. The amount of oil that would be discovered across Texas would be more than enough to power America through the next several decades. The effects of having oil would completely change Texas culture, lifestyle, and business tremendously. In the book of Oil In Texas, will prove that America would change completely from agriculture nation to an industrial nation after the discovery of oil in Texas.
18. Worldwide Oil and Gas Production and Reserves, Phillips, 2000, U.S. Energy Information Administration, 3 May 2004, <http://www.eia.doe.gov/emeu/finance/mergers/ptprod.html>
Petroleum seepages, in some form or another have been around since ancient times for boat caulking, road mending, and as medicine, however, the modern petroleum industry was truly born with the first drilled oil well in August 1859 by Edwin L. Drake at Titusville, PA. (Laudon, 347) At first, in the United States, oil production was controlled by small operators but by the late 1870's John D. Rockfeller had purchased most of the nation's refineries-controlling the United States industry. The Sherman Anti-Trust Act of 1911 split Rockfeller's Standard Oil Trust into three smaller companies; today they are known as Mobil, Chevron, and Exxon. (Lynch, 214) Since that time, oil has become a major part of everyone's way of life. Oil is used to provide fuel for automobiles, tractors, trucks, aircraft and ships. Petroleum products are the basic materials used for the manufacture of synthetic fibers for clothing and in plastics, paints, fertilizers, insecticides, soaps, and synthetic rubber etc... (Lynch, 207) Due to this demand, companies are constantly searching for more oil deposits.
World Growth, 2011. The Economic Benefit of Palm Oil to Indonesia, Palm Oil Green Development Campaign, 1-27
Many companies have turned to sustainable palm oil, palm oil that is produced on plantations that reuse the land for their agricultural purposes, thus supplying more palm oil without the destruction of natural forests. Some choose to boycott palm oil entirely, but this alternative will not significantly change the demand for palm oil. Vegetable oil is used abundantly and oil palm trees are the quickest producing oil crops, concluding them necessary to satisfy the demand for edible oils. Not only is palm oil versatile for its uses and quick to produce, but it is a major component to the economy in Indonesia and Malaysia. Many people living in these countries struggle with poverty, and agriculture of sustainable palm oil is how a great deal of people support themselves and their families. If the boycott of palm oil were successful, a considerable population of people would be unemployed and
" Oil is the life blood of our modern industrial society. It fuels the machines and lubricates the wheels of the world’s production. But when that vital resource is out of control, it can destroy marine life and devastate the environment and economy of an entire region…. The plain facts are that the technology of oil-- its extraction, its transport, its refinery and use-- has outpaced laws to control that technology and prevent oil from polluting the environment…" (Max, 1969). Oil in its many forms has become one of the necessities of modern industrial life. Under control, and serving its intended purpose, oil is efficient, versatile, and productive. On the other hand, when oil becomes out of control, it can be one of the most devastating substances in the environment. When spilled in water, it spreads for miles around leaving a black memory behind (Stanley, 1969).
"Palm oil: WWF name and shame top global buyers ... - The Guardian." 2014. 12 Feb. 2014
Palm oil is considered an essential ingredient for the production of foods and other products in which human use. Orangutan Project (2015) states that ‘palm oil is derived from the fruit of the oil palm tree’, and the ‘palm oil plantations are the main driver for deforestation in Indonesia’. The harvest of the palm trees for the production of palm oil affects the ecosystem as it can affect the environment. This investigation with highlight out the advantages of the palm fruit providing nutrients, it is essential for the productions of products, and this production being that palm oil can reduce poverty. The negatives of how the production of palm oil negatively affects the environment, the habitat of the animals, and social consequences
Many early discoveries of oil have been noted in our history. Early settlers of the 16th
Oil is an essential resource in the whole world. People use oil in a variety of ways. The world has used oil for many years and it will still use it as a basic commodity. Oil use can be traced back to 1850s. However, when Edwin Drake produced commercially usable quantities of crude oil from a 69-foot well in Pennsylvania in 1859, he marked a new period that considered oil as a valuable commodity. Oil prices have been inconsistent since 1859. The discoveries of more wells considerably lowered oil prices and made some oil barons abandon the industry. However, oil prices have increased over time because of several factors.
The land of Jambi, Indonesia, on the island of Sumatra, has been incredibly blessed with the palm oil seed. The impact of palm oil has transcended time, boundaries and borders as it has become to most widely used product for consumer good. Not one day goes by where the average consumer doesn’t utilize a product without palm oil. It is every, it is necessary and it is in high demand. This is where the role of the corporations come in. Wilmar International Limited is a corporation which has descended upon the palm oil industry with the purpose of essentially and quite literally, spreading the wealth.
After independence, the national Government realized the importance oil and gas for rapid industrial development and its strategic role in defense. Consequently, while framing the Industrial Policy Statement of 1948, the development of petroleum industry in the country was considered to be of utmost necessity.
The industry is divided into three distinct sectors including the upstream, midstream and downstream sectors. The upstream sector includes the exploration and production of crude oil as well as the exploration and production of natural gas. This sector has experienced the largest amount of deals in terms of mergers and acquisitions, which will be further discuss in section III. The midstream sector involves the transportation of extracted petroleum from the upstream sector through pipelines, rail, barge, truck as well as storage. Finally, the downstream sector connects the end consumers through derived products such as gasoline, liquefied natural gas (LPG), liquefied natural gas (LNG), kerosene (aircrafts), and diesel…
Bindemann (1999) states that Indonesia is the pioneer in PSC’s system in its petroleum arrangement. The first PSC arrangement in Indonesia goes back to 1966 when Permina (now Pertamina) as National Oil Company (NOC) act as the contractor (Johnson 1994). According to Le Leuch (1988), PSC system is made due to political motivation in order to make the government remains the land owner, and company as the contractor.