Sustained Growth is Projected for Oil and Gas Companies in Indonesia

Financialnewsmedia.com News Commentary

PALM BEACH, Florida, March 24, 2020 /PRNewswire/ -- Oil and gas production has a long history in Indonesia, with Indonesia being an international pioneer in many areas, however, the industry has not seen significant new developments for a number of years, with many existing contractors having lost interest in further exploration in Indonesia due to regulatory instability and an uncertain investment climate, and few new players were entering the market according to a report in a PricewaterhouseCoopers (PWC), Indonesia, investment Guide but a new report from Orbis Research projects a rosy future for the Indonesian oil and gas market growth. The report stated: "Recovering prices, strong demand from the transportation industry and modern developments of oil and gas exploration and production activities are some of the factors driving Indonesia oil and gas market growth. Increasing exports and imports of oil and gas on the account of surged demand across the world are fueling the market growth. Global oil demand is estimated at 104 MMbbl/d in 2025 and natural gas continues to expand its share across major markets. Oil and gas companies will need to expand their production to meet emerging demand in the foreseeable future."  Active energy companies in the markets this week include Indonesia Energy Corporation Limited (NYSE: INDO), TOTAL S.A. (NYSE: TOT), Noble Energy, Inc. (NASDAQ: NBL), Royal Dutch Shell plc (NYSE: RDS.A) (NYSE: RDS.B), Diamondback Energy, Inc. (NASDAQ: FANG).

The oil and gas industry is undergoing rapid transformations across the world. The innovation of new technologies has allowed unconventional drilling that enhances oil and gas production. New business models and services are rapidly evolving and assisting to reduce the cost of operations in upstream oil and gas, which in turn promoting the market growth.  Sustained growth in the consumption of natural gas, petroleum, and petrochemical products is one of the major growth drivers for oil and gas companies in Indonesia. Companies operating in the industry can benefit from this opportunity through investing and participating in the oil and gas trade. The major Indonesia companies are undertaking various oil and gas pipeline projects and contracts to expand their production capacities and sustain their position in the oil and gas industry.