The inquiries for efficient decarbonization in the Indonesian upstream oil and gas field

Abstract

The mandatory carbon reduction guidelines and regulations in Indonesia encourage all industrial sectors particularly the petroleum industry to implement decarbonization programs by systematically reducing carbon emissions as part of climate action. Unlike existing carbon emission studies in the petroleum industry, the literature lacks studies on the decarbonization patterns. In addition, the effectiveness of carbon mitigation in the upstream oil and gas field has not been studied so far. This study developed short panel data models to understand the current decarbonization efforts and patterns during 2015–2018. The results indicate that the considered variables are significantly impactful in carbon reduction with different coefficient patterns. It is suggested to associate decarbonization with oil and gas production and highlight energy efficiency optimization to stabilize production. The impact of financial, human, and administrative resources on the supporting facility is critical for executing sustainable carbon mitigation projects.

Keywords

• Climate action
• Carbon reduction
• Decarbonization patterns
• Mitigation strategies
• Petroleum industry