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Energy Law Exchange

September 16, 2020

Oil & Gas 2020: Indonesia

It is fair to say that the world has changed for the oil and gas industry since mid-2019, and not for the better. In steady progression over the course of the year, we have seen: the investment community tire of meagre (or negative) returns on capital from the industry, particularly from a number of US shale players; downward pressure on oil prices due to increasing supplies from US shale, Brazil and elsewhere; a collapse of global LNG prices due to another warm northern hemisphere winter and a surplus of new LNG supplies; the failure of OPEC+ to agree upon an extension of output cuts, leading to a brutal price war between Saudi Arabia and Russia; and the rapid spread of COVID-19 around the world, leading to unprecedented shutdowns of large segments of the global economy, destroying demand at the same time the price war was increasing supply, and crushing oil prices. This article discusses the affects of global events on Law and Practice in Indonesia for the year 2020 and the correlative Trends and Developments moving forward. More »