Oil Demands Might Not Return to Pre-pandemic Levels: Luhut Pandjaitan

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  • TEMPO.CO, Jakarta - Coordinating Minister for Maritime Affairs and Investment, Luhut Pandjaitan, on Wednesday cited a number of organizations that predict the fall of oil demand post-pandemic.

    “Even before COVID-19 struck, the prices of oil had dropped due to technological advancement in shale oil production,” said the coordinating minister in the 2020 International Convention on Indonesia Upstream Oil and Gas event, on December 2.

    He explained that the drop in demands also comes from the fact that importing countries had started to go through slow growth, which is unfortunately amplified by the COVID-19 pandemic. 

    “Due to this pressure many organizations predict demands will not be as high as before [the pandemic],” said Luhut Pandjaitan.

    He acknowledged that coal and oil had been in a steady decline since 1975 and expected that the potential of renewable energy would be a major player in future energy needs. However, Luhut called the oil and gas industry to adapt and improve, with Indonesia preparing the Integrated refinery and petrochemical complex.

    Read: Refusing to Lower Fuel Prices, Govt: Global Prices Not Stable Yet

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