The Supply of Petroleum Reserves in South-East Asia: Economic Implications of Evolving Property Rights Arrangements

258 Pages·1980·5.09 MB·English

by  Corazón Morales Siddayao (auth.)

NATURAL RESOURCES OF SOUTH-EAST ASIA
General Editor: 001 JIN BEE
THE SUPPLY OF PETROLEUM RESERVES IN
SOUTH-EAST ASIA
The Institute of Southeast Asian Studies was established as an au
tonomous corporation by an Act of the Parliament of the Republic of Singa
pore in May 1968. It is a regional centre for scholars and other specialists
concerned with modern South-East Asia. Its research interest is focused on
the ma1!Y faceted problems tif modernization and social change in South
East Asia.
The Institute is governed by a twentyfour member Board tif Trustees
on which are represented the University tif Singapore and Nanyang Univer
sity appointees from the Government, as well as representatives from a broad
range tif prtifessional and civic organizations and groups. A ten-man Execu
tive Committee oversees day-to-day operations; it is ex rif]icio chaired by the
Director, the Institute's chiif academic and administrative rifficer.
The opinions expressed in this publication are the responsibility tif the
author and not of the Institute.
THE SUPPLY OF
PETROLEUM
RESERVES
IN SOUTH-EAST ASIA
Economic Implications of
Evolving Property Rights
Arrangements
CORAZON MORALES SIDDAYAO
Issued under the auspices if
the Institute if Southeast Asian Studies, Singapore,
and the East-West Resource Systems Institute,
The East-West Center, U.S.A.
KUALA LUMPUR
OXFORD UNIVERSITY PRESS
OXFORD NEW YORK MELBOURNE
1980
Oxford University Press
OXFORD LONDON GLASGOW
NEW YORK TORONTO MELBOURNE WELLINGTON
KUALA LUMPUR SINGAPORE HONG KONG TOKYO
DELHI BOMBAY CALCUTIA MADRAS KARACHI
NAIROBI DAR ES SALAAM CAPE TOWN
• Oiford University Press 1980
Softcover reprint of the hardcover 1st edition 1980
All rights reserved. No part of this publication may be reproduced,
stored in a retrieval system, or transmitted, in any form or by any means,
electronic, mechanical, photocopying, recording or otherwise,
without the prior permission of Oxford University Press
ISBN 978-94-011-6854-0 ISBN 978-94-011-6852-6 (eBook)
DOI 10.1007/978-94-011-6852-6
Published by Oxford University Press, 3,JabJn 13/3,
Petaling Jaya, Selangor, Malaysia
A.M.D.C.
To Mother
Acknowledgements
THE main conceptual framework for this study was formulated in
1975, but it was not until early 1978 that circumstances allowed me
to begin serious research on the subject. Both before and after that
starting point, many persons contributed to the work in its present
form. Although I will not be able to mention all of them, I would
like to identify specific persons to whom I feel deeply indebted.
Some were extremely helpful in providing me access to data.
Others were helpful in sharing their insights and knowledge of the
industry with me. Others provided intellectual stimulation and
shared their curiosity as weB as their professional expertise. Some,
through their very generous hospitality, made my visits to their
cities more comfortable as well as more productive than they might
have been. Still others were all or most of these. Of special mention
then are the following:
Indonesia: Dr. Peter Weldon, Ford Foundation (then in Jakarta
and at this writing in Bangkok); Professor Amado A. Castro
(ASEAN Secretariat); Professor Dr. Koentjaraningrat (University
of Indonesia); Professor Dr. Ir. M. Sadli (former Minister of
Mines); Dr. J. Panglaykim and Clara Joewono (Center for
Strategic and International Studies); S. L. Rieb (Chief Geologist,
Conoco, and a long-time friend); Ir. Wijarso (Director-General of
Oil and Natural Gas, Department of Mining and Energy); Ir. E. E.
Hantoro (Head, Exploration/Production, Directorate General for
Petroleum and Natural Gas); Miss Ann Soekatrie Sabardiman Sos
rokoesoemo S. H. (Assistant Chief, Legal Division, MIGAS) and
her colleagues, Drs. Sugeng Wibowo, A. Iskandar S. H., W.
viii ACKNOWLEDGEMENTS
Bapangsamirono S. H.; Z. Goeritno S. H., and B. Soeminto S. H.
(Pertamina, Legal); Jr. Trisulo (Pertamina Director for
Exploration/Production); Ir. Soedarno Martosewojo (Pertamina
Director for General Affairs); Mr. Gozali (Secretary, Board of
Government's Commissioners, Pertamina); Dr. A. Arismunandar
(Director, Electric Power Research Centre); I. B. Gold (Geologist,
AMOSEAS); Dr. Thee Kian Wie (National Institute of Economic
and Social Research-LEKNAS-LIPI); and Lawrence P. Taylor
(Petroleum Officer, American Embassy).
Malaysia: Thomas G. Carson (Senior Geophysicist, Exxon, and
an old-time friend); Dr. Goh Cheng Teik (then Deputy Minister
for Works and Utilities); Encik Rastam Hadi (Managing Director,
Petronas); R. T. Fetters (then Acting Exploration Manager,
Exxon); and Mr. Chung Sooi Keong (Director-General, Geological
Survey of Malaysia).
Philippines: Apollo P. Madrid (Exploration Manager, Bureau of
Energy Development, and an old-time friend); Atty. Wenceslao de
la Paz (Director, Bureau of Energy Development); and Lydia R.
Vicente (Public Relations Officer, Petrophil, and an old-time
friend).
Singapore: Allen G. Hatley (an old-time friend and now Manager
of Acquisitions, International Division, Energy Resources Group,
Cities Service, in Houston); Christopher S. Kenyon (Geologist,
Cities Service); Peter B. Stilley (Joint Venture Coordinator, Union
Texas Asia); Salvador de Luna (Geologist, Bow Valley, and an
old-time friend}; Jean MacDonald (Director, Offshore South-East
Asia); Dr. Khin Aung (Geologist, Consultant); Dr. Anne Booth
and Dr. Chia Siow Vue (both of the Department of Economics,
University of Singapore).
Thailand: Dr. John Ringis (CCOP); J. A. Callow (UN, ESCAP);
Prakal Oudom-Ugsorn (Geologist, Natural Gas Organization of
Thailand); Preecha Supalak (Mineral Fuels Division, Department
of Mineral Resources); Dr. Vatchareeya Thosanguan (Faculty of
Economics, Thammasat University); and Vinitha Thummanond
(CCOP).
ACKNOWLEDGEMENTS IX
United States: Dr. Richard P. Sheldon (Senior Research Geologist
on leave from the U.S. Geological Survey and Coordinator, Raw
Materials Systems, East-West Resource Systems Institute);
Richard Meyer (Chief, Office of Resource Analysis, U.S. Geologi
cal Survey); Dr. Bernardo F. Grossling (U.S. Geological Survey);
Lucio D'Andrea, Virginia Yates, and Julia F. Hutchins (all at the
Department of Energy); and Professor Moheb Ghali (Department
of Economics, University of Hawaii-Manoa).
I would also like to thank the Asia Foundation for the grant that
provided funds for the literature research and travel to Bangkok,
Jakarta, Kuala Lumpur, and Manila.
Thanks are also appropriate to the Institute of Southeast Asian
Studies and the East-West Resource Systems Institute (The
East-West Center) for providing the research base and support
staff for this study. In these two places it would be amiss for me
not to single out certain individuals. First, I would like to thank, in
a very special way, Dr. Sharon Siddique for taking over some of
my 'chores' during the last four months of my stay at ISEAS; a
very good friend and true professional, she thus allowed me to con
centrate on the usually difficult phase of writing the first draft. I
want to express my deepest appreciation to Dr. Harrison Brown
and Dr. Kirk R. Smith for allowing me to do the revisions and
additional analytical work in this study, including provision of a
research aide. I want to thank the library and administrative
support staff at ISEAS, but especially Karthiani dlo Mani Nair
for her serious and intelligent secretarial assistance. My special
thanks also go to the support staff at EWRSI and at Media Pro
duction Services; in an extra special way I thank Thammanun
Pongsrikul who so patiently and cheerfully put up with the grubby
statistical and computer work related to Chapter VI, and Beverly
Takata for her truly efficient secretarial assistance.
My very special appreciation for the moral and intellectual sup
port of Richard A. Bray and of my brothers, Crescencio and
Antonio.
To all, including those not mentioned, my sincere thanks and
eternal indebtedness.
x ACKNOWLEDGEMENTS
Needless to say, the responsibility for shortcomings and errors
remain with me. The opinions expressed in this study are solely
those of the author and do not, in any way, necessarily represent
those of the institutes sponsoring the research.
The East-West Center, CORAZON MORALES SIDDAYAO
Honolulu, Hawaii,
18 April 1979
Contents
Acknowledgements VII
Tables xv
Figures XVll
Abbreviations xviii
I. INTRODUCTION 1
Background 2
Framework for Analysis 3
Data and Scope of the Study 7
II. PETROLEUM AND OTHER ENERGY FORMS:
RESOURCE BASE AND UTILIZATION
RATES IN SOUTH-EAST ASIA 11
Resource Potentials of the Region 11
Resources versus Reserves 11
Rudiments of Oil Accumulation and Production 14
Oil and Natural Gas Resources 18
Other Conventional Energy Resources 22
New Energy Sources 24
N on-commercial Sources 24
Demand for Petroleum and Other Energy Resources 24
Historical Consumption Patterns 25
Future Demand for Petroleum in South-East
Asia 31
III. PETROLEUM EXPLORATION: SOME
DISTINGUISHING CHARACTERISTICS OF
AND STRUCTURAL CHANGES IN THE
REGION 40