Oil Policy Research Articles

The Effectiveness of Palm Oil Policies in Nigeria: An Experience from Malaysian Palm Oil Policies

The tropical forest of West Africa is initially the first area where the oil palm was discovered before the 14th century. In particular, Nigeria was one of the places where this fruit was uncovered. Palm oil is ranked as the major vegetable oil in the world. In the 1960s, Nigeria was rated as the largest palm oil-producing and exporting country globally. However, the production was completely unsuccessful as a result of the government’s failure to formulate good policies, while the local consumption increases. Oil palm production in Malaysia became a contributing sector to the national economy. It alleviates poverty, provides employment, allocates resources, generates incomes, and leads to economic development. Due to good and sustainable palm oil policies in this sector, Malaysia achieved global recognition. This paper’s objective is to disclose the ineffective policies on palm oil in Nigeria and its sustainability in Malaysia. This paper is a qualitative design, it used primary and secondary methods. The primary method is based on a semi-structured interview, while the secondary method is based on documents. It adopted inductive thematic analysis for analysing interview data with the help of Atlas ti. This paper’s finding is the unsuccessful palm oil policies in Nigeria and the sustainable palm oil policies in Malaysia.In conclusion, there is a need for Nigeria, to learn from the Malaysian experience.

Analysis of the Impact of Subsidized Fuel Oil Policy on Tuna Fisheries Business in East Morotai District, Morotai Island Regency, Indonesia

Analysis of the Impact of Subsidized Fuel Oil Policy on Tuna Fisheries Business in East Morotai District, Morotai Island Regency, Indonesia

How does oil policy uncertainty influence resource rents? New empirical evidence from Organization of the Petroleum Exporting Countries

AbstractThe uncertainty surrounding oil‐related policies has raised concerns about its influence on revenues derived from resource extraction activities. In this view, the current study aims to investigate the nuanced relationship between oil policy uncertainty (OPU) and resource rents, focusing on oil rents (ORTs), natural gas rents (NRTs), and total resource rents (TRT). Analyzing data spanning from 1985 to 2019 across Organization of the Petroleum Exporting Countries, various econometric models including DOLS, FMOLS, and autoregressive distributed lag are employed to assess the impact of OPU on resource rents. The empirical findings reveal a significant negative effect of heightened OPU levels on resource rents, indicating a reduction in ORT, NRT, and TRT. This negative impact underscores the deterrence of long‐term investments in oil exploration and production due to regulatory unpredictability, leading to decreased revenues from oil extraction activities. Additionally, increased OPU contributes to heightened volatility in oil prices, disrupting the stability of resource rents. Furthermore, variables such as FDI inflow, inflation rate, and banking sector development exhibit positive relationships with resource rents, emphasizing their role in bolstering revenues derived from natural resources. The study's implications highlight the necessity for policymakers to address and mitigate OPU to foster stability and sustainable revenues within resource‐driven economies. This study contributes to the existing literature by offering empirical insights into the adverse impact of OPU on resource rents.

Impact of oil price, economic globalization, and inflation on economic output: Evidence from Latin American oil-producing countries using the quantile-on-quantile approach

This research examines the impact of oil prices, economic globalization, and inflation on the economic output in oil-producing countries in Latin America. We employ advanced time series techniques to achieve precision in findings and reliability of policy inferences. We use cointegration techniques with and without structural breaks because oil prices are highly volatile, and the economies analyzed are unstable in the face of political and social changes. Additionally, we performed a sensitivity analysis using standard quantile and the newly developed quantile-on-quantile regressions to measure the impacts of the covariates on real per capita output. Finally, we use causality Fourier techniques to identify the direction of causal relationships between the series. We found that the oil price, economic globalization, inflation, and output have a long-term equilibrium relationship in the presence of structural breaks. Likewise, quantile models show that the impacts of inflation, economic globalization, and oil prices on economic output are extensively non-linear across the quantile distribution. We found a negative connection between inflation and economic output in the surveyed territories. We propose that those responsible for energy policy in the countries studied should rethink crude oil policies to maximize the benefits of oil exploitation under stagnant globalization and growing inflation.

Comparative Analysis of Leadership and Economic Impact of the Palm Oil Industry in Indonesia

Palm oil is one of the biggest industries that contributed to Indonesia’s economy. In this context, this article aims to investigate a comparison of the government policies in Indonesia’s palm oil under the Jokowi leadership and the previous presidents and how this industry contributed to national economic growth. We reveal that every president has different programs to develop the palm oil industry. Soeharto Perusahaan Inti Rakyat (PIR) or Nucleus Estate and Smallholders (NES) program has greatly affected the extent of Indonesia’s large plantations today. Meanwhile, during Megawati’s presidency, there were not many changes in terms of policies or regulations. On the other side, under Susilo Bambang Yudhoyono’s presidency, Indonesia’s palm oil industry experienced new innovations in terms of palm oil policy. The biodiesel program that was introduced in 2006 made Indonesia’s palm oil industry move to the next stage. This policy aims to reduce Indonesia's dependence on fossil fuels. Furthermore, this program became the forerunner of the biodiesel program which is currently being accelerated by President Jokowi. We argue that Jokowi’s programs such as the Biodiesel Mandatory Program (B30, etc.) through Pertamina, Peremajaan Sawit Rakyat, Moratorium on land clearing permits, and cooperation through Council of Palm Oil Producing Countries (CPOPC) been the right step to stimulating the national economy.

An Ideational Metafunction Analysis of President Joko Widodo’s Speech on Crude Palm Oil (CPO) Policies

The purpose of this research is explaining the ideational function of the two speeches by President Jokowi about Crude Palm Oil (CPO) Policies. The design of this research was descriptive qualitative research. The data for this study constituted two speeches President Joko Widodo about crude palm oil (CPO) exports on two different occasions at State Secretariat website (https://www.setneg.go.id) that was obtained by copying and pasting. The speeches were analysed by using systemic functional linguistics methods that is focused to ideational metafunction (experiential meaning and logical meaning). The result of the analysis was both of speech Joko Widodo revealing the similarity. Speech A showed mental process dominant in experiential meaning and speech B also showed mental process dominant. Beside the similarity both of speech, Jokowi speech revealed the differential using participant (senser), speech A used word of pemerintah, and on speech B using word of saya. Using word of pemerintah was a form of Jokowi as President not wanting to be blamed when bad things happen in made crude palm oil’s policy. Therefore, using word of saya was imaging form of Jokowi, because his clause gave profit for his electability. Jokowi was very careful in publishing speech, word of very careful reflected as self-righteousness.

THE STATE OIL REFINERY IN DROHOBYCH (1919–1939)

The importance of the state oil refinery «Polmin» in Drohobych for the economy of interwar Poland has investigated. The state of the enterprise at the time of its takeover by the Polish authorities has been determined. The management of the refinery, its subordination, finances, and the participation of state bodies in the development of the enterprise have been analysed. Visions of the role of «Polmin» in different groups of entrepreneurs involved in the oil business in Galicia have been highlighted. It is found that the majority of firms based on Polish capital proposed that this enterprise should remain an instrument of the government’s oil policy and pay less attention to its profitability. At the same time, the government was trying to develop the state oil refinery as a commercial enterprise. The relations between «Polmin» and foreign oil firms that dominated Galicia at the time have been traced. It is stated that the state-owned refinery took an active part in monopoly associations of large oil refineries, which often undermined its independence and reduced its profitability. The ways of supplying crude oil to the state-owned plant have analysed. It is noted that the company mostly processed raw materials from small oil producers («pure producers») owned by local industrialists. «Polmin’s» relations with them have been traced. Attempts of the state-owned plant to produce crude oil on its own have been noted. The dynamics of «Polmin’s» participation in the trade of oil products on the Polish and foreign markets have been analysed. It is found that this enterprise continued to be the largest oil refinery in interwar Poland. Despite the government's attempts to run «Polmin» like a commercial enterprise, it continued to use the plant as a means of state control over the entire oil industry in Galicia. In this way, the Polish authorities did not allow foreigners to completely take over the industry and allowed local industrialists to engage in the oil business. Keywords: oil refinery, Galicia, interwar Poland, economy, Drohobych, Boryslav field.

Just Transition in Biofuel Development towards Low-Carbon Economy: Multi-Actor Perspectives on Policies and Practices in Indonesia

Justice and sustainability are the foundation of fair and equitable biofuel development. Policies and practices are consequently necessary to support a just transition towards a low-carbon economy. Therefore, this study aimed to understand multi-actor perspectives on policies and practices relevant to the just transition in biofuel development. Applying a socio-legal approach based on the JUST framework, this study focused on the Indonesian biofuel industry, which is primarily driven by crude palm oil (CPO) production. This study also added comparative perspectives from Thailand’s biofuel industry. The primary data were gathered from in-depth interviews and focus group discussions (FGDs), while the secondary data were from research, policy, and other government archives. Based on the results, oil palm plantations in Indonesia and Thailand are crucial for macroeconomic development. However, smallholder farmers in Indonesia, especially independent ones that do not join farmer groups, remain marginalised by the current regulations. In fact, many benefits from biofuel practices and policies accumulate disproportionately towards large corporations, while marginalised groups bear the costs. The Indonesian Sustainable Palm Oil (ISPO) certification that should induce market accessibility and competitiveness has not fully reached most rural farmers. Furthermore, various overlapping regulations and perplexing data differences exist from multiple ministries and administrative levels. Thus, palm oil stakeholders in Indonesia demand a dedicated institution for integrated regulation and monitoring of the industry, similar to the National Palm Oil Policy Committee in Thailand. The myriad of legal, political, socio-economic, and justice issues thus necessitates all hands on deck to ensure a just transition for all stakeholders of the Indonesian biofuel industry.

Implementation of the Indonesia Sustainable Palm Oil (ISPO) Policy on Oil Palm Plantations in West Kalimantan

When it comes to palm oil, Indonesia dominates the global market. However, the European Union Parliament’s Renewable Energy Directive (RED) policy created roadblocks for the Indonesian palm oil industry’s European exports because the product did not adhere to sustainability principles. In 2009, Indonesia adopted the Indonesian Sustainable Palm Oil (ISPO) policy in response to the European Union’s RED. This policy aims to promote sustainable practices on oil palm plantations. The government of Indonesia is likewise working to increase ISPO’s visibility abroad. Regarding Indonesian provinces, West Kalimantan has the third-largest area dedicated to oil palm plantations. However, only a few palm oil producers have obtained ISPO certification. This study aims to determine why the ISPO policy was ineffective in West Kalimantan by examining the challenges of enforcing the policy through the lenses of sustainable development and policy implementation. A descriptive qualitative method was applied, with data gathered through in-depth interviews, observation, and documentation. Non-specific policy substance, information restrictions, governmental policies not supporting implementation, and probable distribution problems among the parties engaged in execution were only a few factors this study cited impeding the ISPO policy implementation in West Kalimantan.

On-board measurements of OC/EC ratio, mixing state, and light absorption of ship-emitted particles

Carbonaceous aerosols play important roles in environmental impacts and climate effects. The characteristics of ship-emitted carbonaceous aerosols keep unclear under the latest global low sulfur fuel oil policy. This study selected four ocean-going vessels burning low sulfur fuel oils for on-board exhaust testing. The emission factors of ship carbonaceous aerosols were obtained under different engine types (main and auxiliary engines), fuel types, and engine loads. Our results showed that fuel and engine types were both important factors affecting carbonaceous aerosol emissions for ship engines. The emission factors of OC and EC from main engines were 1.18 ± 0.62 and 0.06 ± 0.04 g/kg burning heavy fuel oil (HFO), while 0.52 ± 0.35 and 0.04 ± 0.03 g/kg burning marine gas oil (MGO), respectively. The OC/EC ratios of ship-emitted particles were within a large range of 2 to 23. The OC/EC ratios from the main engines were significantly higher than those from the auxiliary engines by a factor of 6.3. The result of chemical mixing states of ship-emitted particles observed by a single particle mass spectrometer (SPAMS) showed that OC and EC were internally mixed and existed as the ECOC-bonded forms in single particles. The measured light absorption of ship-emitted particles with higher OC/EC ratios showed an evident short-wave absorption enhancement based on the aethalometer AE-33. Our results implied that ship-emitted carbonaceous aerosols (especially with high OC/EC ratios) could not be uniformly treated regarding the optical properties to more precisely estimate their potential environmental impacts and climate effects in model systems in the future.

Downstream Deregulation Policy and Stability in Petroleum Products in Nigeria: A Case of South-South Region

Nigeria economy is almost singularly hinged on crude oil and therefore, highly sensitive to internal and external shocks in the oil sector. This study examined the impact of downstream oil deregulation policy on stability in petroleum products in Nigeria. Survey design was used in the methodology of the study. The hypotheses formulated were tested using ordinary least squares linear regression technique. The study revealed that the downstream oil deregulation policy promotes the availability of petroleum products in the economy. The study also revealed that local refining of petroleum products positively impacts on deregulation of the downstream oil policy in the country. It was further revealed from the findings that the removal of petroleum products subsidy and efficient pricing of petroleum products enhances the deregulation of the downstream oil policy in the Nigerian economy. It was recommended that the government should make petroleum products available through efficient liberalization of the downstream sector, remove subsidies, build more refineries or maintain the existing ones and regulate the prices of petroleum products in the country. Government should get all the four refineries working at all costs. This will help to reduce the huge amount of money spent on refined fuel importation and will be diverted to infrastructural development for the economy.

Kurdistan Regional Government’s Natural Resources Policy Formulation and Implementation Process

The process of public policy formulation is known to have significant role in making issues or solving them regardless of their makers. In particular, the policy making for a subject like managing natural resources has different impacts on the country. Recent studies have investigated either the negative or the positive sides of the KRG managing and marketing natural resources. In this article, all the related aspects of KRG natural resources policy such as policy formulation, level of KRG policy, causes and outcomes of the KRG oil policy is going to be discussed. In this qualitative study, content analysis approach is applied for obtaining secondary data to explain all the aspects of KRG Natural Resources Policy. For this purpose, 42 recent studies and books focusing on KRG Natural Resources policy are perused and discussed. Finally, this article concludes that KRG Oil and Gas Policy is a completely important subject to be studied for having influence on all the aspects of the Kurdistan Region and the Middle East energy and economy politics. Accordingly, the study calls for future research on how KRG can manage this sector with the existence of the Iraqi Federal High Court’s refusal decision.

The secret of September: The 1949 oil agreements between the United States and South Korea

AbstractAfter the Second World War, the US government established a new oil order, forming close ties with three major oil companies—Standard Vacuum, Shell, and California-Texas—referred to as the ‘Three Sisters’ in Korea, which was newly liberated from Japanese colonialism. Even after the South Korean government was established, the US government and the Three Sisters worked to maintain the order. Using the carrot of the Economic Cooperation Administration (ECA) funds, in 1949 the US government pressured the South Korean government into oil agreements that would facilitate the supply of petroleum products to the country. The 1949 oil agreements were completed after three rounds of negotiations. The process of signing the agreements was not limited to the import, storage, and sale of petroleum products in exchange for US aid to South Korea. It also sought to respond to the various interests of Koreans who wanted to create an independent economic structure in the midst of establishing a new government. This article explores the three rounds of negotiations for the 1949 oil agreements whereby the symbiotic relationship between the US government and the Three Sisters was realized in partnership with the interests of the South Korean government. Furthermore, it seeks to broaden the research on the history of Korean oil by promoting an understanding of how US oil policy affected Korea immediately after its liberation from Japanese colonial rule.

Indonesia's Economic Diplomacy in Facing Red (Renewable Energy Directive) and European Union Palm Oil Policy

This study aims to examine Indonesia's economic diplomacy efforts in dealing with the Renewable Energy Directive (RED) and palm oil policies in the European Union. This economic diplomacy effort is a step to deal with the impact caused by policies implemented by the European Union. The method used is descriptive qualitative with data collection techniques in the form of literature review related to the problem under study. This literature includes books, journals, written reports, articles, news collections on the internet, and documents related to the object of research. Furthermore, the data analysis technique used is qualitative. The results found that in dealing with the policy, Indonesia used commercial diplomacy by cooperating with stakeholders to form FoKSBI, as well as making ISPO policies and suing the European Union regarding its claims

Competitiveness, Market Structure, and Energy Policies: A Case Study of the World’s Largest Crude Palm Oil Exporter

Crude Palm Oil (CPO) is the mainstay of Indonesian agricultural products which is the largest CPO producing country in the world. The high market share of Indonesian CPO exports reflects the high competitiveness of Indonesian CPO in the global market. The purpose of this study is to determine the competitiveness of Indonesian CPO, the concentration of the Indonesian CPO industry, and analyze the factors that are suspected to affect the competitiveness of the CPO industry in Indonesia. The data used in this study are secondary data with a five-digit ISIC (10432) using time series data for 2001-2020 and the analytical techniques used in this study include Revealed Competitive Advantage (RCA), Gini Coefficient, and Error Correction Model (ECM). The results showed that Indonesian CPO has high competitiveness in the international market, the Indonesian CPO industry is not concentrated, in the short term the variables that affect competitiveness are CPO prices, subsidized solar prices policy, and industrial concentrations, while in the long term the influential variables are biodiesel policy, subsidized diesel oil policy and industrial concentration

Diverse changes in shipping emissions around the Western Pacific ports under the coeffect of the epidemic and fuel oil policy

The Western Pacific Ocean (the WPO), as one of the busiest shipping areas in the world, holds a complex water traffic network. In 2020, the International Maritime Organization (IMO) low-sulfur fuel regulations were implemented globally, while the COVID-19 outbreak influenced shipping activities together. This study aimed to assess the combined impact of epidemics and low-sulfur fuel policies on ship emissions, as well as their environmental effects on the WPO. The ship emission model based on the Automatic Identification System (AIS) data was applied to analyze the monthly emission variations during 2018–2020. It was found that the epidemic had obvious diverse influences on the coastal ports in the WPO. Overall, shipping emissions declined by 15 %–30 % in the first half of 2020 compared with those in 2019 due to the COVID-19 lockdown, whereas they rebounded in the second half as a result of trade recovery. The pollutants discharged per unit of cargo by ships rose after the large-range lockdown. China's multiphase domestic emission control areas (DECAs) and the IMO global low-sulfur fuel regulation have greatly reduced SO2 emissions from ships and caused them to “bypass and come back” to save fuel costs around emission control areas from 2018 to 2020. Based on satellite data and land-based measurements, it was found that the air quality over sea water and coastal cities has shown a positive response to changes in ship-emitted NOx and SO2. Our results reveal that changes in shipping emissions during typical periods, depending on their niches in the complex port traffic network, call for further efforts for cleaner fuel oils, optimized ECA and ship lane coordination in the future. Shipping related air pollutions during the later economic recovery also needs to be addressed after international scale standing-by events.

Strengthening Riau Province's Oil Palm Policy Based on Strengthening Local Institutions in Riau Province Bengkalis

Improving sustainable management of oil palm plantations, providing legal certainty, maintaining and protecting environmental sustainability, including reducing greenhouse gas emissions, and increasing the development of oil palm farmers as well as the productivity of oil palm plantations. The policy aspect of considering sustainable development is something that cannot be missed, it must be discussed in an academic text on an oil palm plantation policy. So we need a model that minimizes the complexity and contestation that often appears in the area of oil palm plantation policy. After the research is carried out, it is expected to be able to formulate policies. These findings are useful for the government as part of the implementation of oil palm plantation policies, while still prioritizing the sustainable development aspect. This policy model can later be developed with the birth of strategies and activities that are interconnected in the development of oil palm plantations in Riau Province because it needs support from many stakeholders. So far, the existing policy pattern is top-down, and the dynamics between implementor actors and target groups in the field sometimes differ from the main objectives of the public policies that have been formulated so far. This research will provide new insights into a constructive policy model with a microscope because it is about public and private goods, which provide benefits for the government and welfare for smallholder plantations to oil palm farmers.
 Keywords: palm oil policy, smallholder plantation, sustainable development

АНАЛИЗ ПРОБЛЕМ В ПЛАНИРОВАНИИ ИРАКСКОГО ТОПЛИВНО-ЭНЕРГЕТИЧЕСКОГО СЕКТОРА: ИССЛЕДОВАНИЕ В MIDLANDS OIL COMPANY (БАГДАД)

In this article, the authors try to analyze the problems of planning in the Iraqi fuel and energy sector, focusing on the example of one enterprise (company) of the Iraqi oil industry. The main problem lies in the weak planning of an effective oil policy in Iraq in the field of oil and gas production and export, weak development of oil infrastructure. This leads to fluctuations in Iraqi oil and gas resources under price pressure, despite the huge volume of these resources and the huge revenues generated from them. The problems of planning are considered on the example of the Midlands Oil Company. Based on the results of the analysis, measures are proposed to improve the efficiency of Midlands Oil Company.

THE GLOBAL POLICY AND OIL PRICE: MODERN ENERGY POLICY IN OPEC PRIORITIES

The article is devoted to the current problem of modern energy policy in the priorities of OPEC countries. In particular, the influence of pandemic and geopolitical situations in the world on the oil market is investigated. One of the most important areas for the international community is energy, which is one of the main guarantors of universal security in the modern world. The agreement to reduce oil production by OPEC and non-OPEC countries has become the most significant example of international multilateral cooperation in the energy sector in recent years. During 2017-2020, the OPEC+ agreement managed to stabilise the oil market significantly. In 2017, the average price of Brent on the market reached a new agreement from 1 May 2020 to 1 May 2022. The list of participants has been significantly expanded. In addition to the 24 OPEC+ countries, a number of G-20 countries supported the deal, including the USA, which, although not formally part of the cooperation due to legal specifics, expressed their willingness to help stabilise the situation on a voluntary basis. This was an unprecedented signal to the market. To date, the purpose of OPEC is to coordinate activities and develop a common policy regarding oil production among the member countries of the organization, maintain stable oil prices, ensure stable supply of oil to consumers, get return on investment in the oil industry. In addition, an important mission of OPEC is to coordinate and standardize the oil policies of member countries, determine the most effective collective means of protecting the interests of producing countries, and cooperate with non-OPEC countries, which include Russia, Norway, and Mexico, in order to implement initiatives to stabilize the global oil market. This article examines the effectiveness of OPEC in shaping oil prices and its ability to manage the conditions created by pandemic situations and the impact of the oil market on the current geopolitical processes taking place on the world stage.

National Security, Security of Supply. Finlandisation as a Diplomatic Practice and the Finnish Energy Dependency on the Soviet Union, 1948–1992

This article examines the intermingling of national security and security of oil supply in Finland through the Finnish oil policy, 1948–1992. During the Cold War, Finland built its oil economy based on Soviet oil instead of diversity and multilateral cooperation. That was closely related to the Finnish overarching Cold War policy that prioritised political and economic relations with the Soviet Union, referred to as finlandisation. The article scrutinises the ubiquitous influence of Soviet relations in Finnish society through the oil policy and shows how finlandisation as a policy strategy transformed into political practice. Two factors explain why Finland became dependent on Soviet oil: the double-coupling of national security and welfare and the quest for stability in Soviet relations. Two factors explain the longevity of Finnish dependency on Soviet oil: the intermingling of oil imports and export revenues and finlandisation as an established pattern of reasoning and decision-making. However, Finland was not a passive actor but managed its oil supply security through extensive socio-technical systems, including infrastructure and relations with other suppliers.