ABSTRACT
As of 1 January 1976 Indonesia's proven oil reserves were 14 billion barrels. Indonesia's reserves are 2.1 percent of the total proven reserves of the world and are equal to 3.4 percent of those of the Middle East and North Africa and to 42.4 percent of the United States. Indonesia's total oil production was fifth in the world in 1940 with 163 thousand b/d. However, with the subsequent discoveries of large reserves and increased production in the Middle East, Africa, and elsewhere, Indonesia dropped to twelfth place in world production in 1974 in spite of a dramatic oil production growth. Offshore oil exploration started in 1966 in North Sumatra but reached its full intensity in 1968. The first offshore oil field was put on-strearn in September 1971. Indonesia's domestic energy consumption is still very low. Oil has replaced rubber as Indonesia's leading foreign exchange earner and plays a dominant role in the export picture.
