Opinion: Indonesia May Lose OPEC Membership--

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4//Gulf News Online, United Arab Emirates Published: 12/6/2005, 07:25 (UAE)

http://www.gulf-news.com/Articles/OpinionNF.asp?ArticleID=168810



OPINION: INDONESIA MAY LOSE OPEC MEMBERSHIP

By Dr. Abdullah Al Madani, Special to Gulf News



Indonesia, one of the founding members of the Organisation of Petroleum Exporting Countries (OPEC), has been importing oil since 2003 and is expected to become a net importer very soon.

This could threaten its membership in OPEC, as only countries that export more than they import are eligible for membership in the organisation.



Nothing reflects Jakarta's anxiousness better than its decision last month to establish a panel to examine a possible exit from the grouping.



Indonesia's oil problem is so serious that, since 2002, it has not even been able to fully meet its output quota currently at 1.425 million barrels a day from OPEC.



(SNIP)



First, domestic demand for oil has been increasing by 7 per cent every year since the 1980s, despite several price increases.



If this continues without new exploration, and annual production remains at around 1 million bpd, Indonesia's reserves will not last more than 15 years.

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