Abstract
The oil mining was firstly performed in Musi Banyuasin Regency by the end of the 1990s as performed by the people on old wells of Standard Vacuum Oil Company which was no longer engaged in oil production activities. The crude oil is then refined into gasoline (premium), kerosene and gas oil (solar). Due to the increasing oil mining activities, the local government of Musi Banyuasin Regency stipulated a Local Regulation No.27 of 2006 concerning the sale of public oil mining products. In this local regulation, people are only paid for their work drawing out the crude oil, which is valued at a low price and is not suited with the workload. Since then, the people have not only performed mining for crude oil from old wells, but also by performing their own mining activities, especially for the mining field with a depth of 100 - 200 meters. The result is that the crude oil trade in the Musi Banyuasin Regency is increasingly widespread, either for the crude or distilled oil. This study aimed to describe, analyze and interpret social impact, environmental risks and multiplier effect of illegal public oil mining. This study used the paradigm of critical theory. The results showed there are some social impacts on people's lives in the mining and refinery sites. The positive impact is the shift of livelihood activities, from rubber farmers to oil miners, both as investors, traders, workers and oil takers, so that the multiplier effect of this activity is highly perceived by the community in their lives. The negative impact is the polarization in the life of society, such as gambling, drug distribution, red-light district and environmental degradation due to oil spills and distillation.
Highlights
The first petroleum source was discovered in 1883 by a Dutchman named A.G Zeijlker in Telaga Tiga and Telaga Said near Pangkalan Brandan, North Sumatra
The crude oil product was distilled by burning it in drums and the vapor flowed through pipes in a water bath and was converted into gasoline (40 percents), kerosene (30 percents) and gasoil (30 percents)
The oil mining was firstly performed in Musi Banyuasin Regency by the end of the 1990s as performed by the people on old wells which were not longer utilized for production
Summary
The first petroleum source was discovered in 1883 by a Dutchman named A.G Zeijlker in Telaga Tiga and Telaga Said near Pangkalan Brandan, North Sumatra. This discovery became a milestone of the Indonesian foreign oil company from Netherland in Indonesia, Shell. Along with the discovery of oil resources in Telaga Said, there were found many oil discoveries in various locations, such as oil fields in Ledok, Cepu, discovery of Riam Kiwa in Sanga-Sanga, Kalimantan and the discovery of black oil in South Sumatra, near Muara Enim. Pertamina can be the largest company in exploring the national natural resources by which the products of natural resources can be enjoyed by all of the Indonesian people, not by the foreign countries which can get a lot of benefit from it
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