THE OILFIELD SERVICE COMPANY'S BUSINESS DEVELOPMENT STRATEGY TOWARDS A SUSTAINABLE ENERGY WITH SCENARIO PLANNING

• Main Author: Permata Sari, Indah
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/70642
• Institution: Institut Teknologi Bandung

As the world's primary fuel sources, the oil and gas (O&G) business have a significant impact on the global energy market. the second-largest source of emission is from the energy sectors. Likewise in Indonesia, 50.22% of the country's primary energy mix was made up of O&G. The energy sector is the second largest contributor to carbon emissions in Indonesia. Since the Paris Agreement, where the countries in the world commit to carbon emission reduction and net zero in 2050, energy transition has become the top topic in the energy sector. Many companies in O&G Industry, including in Indonesia, have already committed themselves to deep, long-term reductions in greenhouse-gas emissions. The oil-field services (OFS) companies, in this case one of which is the Green Bay Hornet (GBH), is one of the business actors in the O&G supply chain which provide goods and services to O&G companies engaged in the exploration and production activities. Since the needs of the industry must be satisfied in order for OFS companies to continue operating and generating value, the energy shift will directly impact these businesses. This research will explore scenario planning on the energy sector in Indonesia to have a forward-looking view on future O&G conditions in Indonesia until 2035 which then becomes the key focal issue in this research. Scenarios are made based on the key driving factors and uncertainties that have been identified through the analysis of primary data from stakeholder interviews and secondary information from various literature studies. About 26 main drivers are identified and then by scoring and grading processes, adaptive scenarios are constructed using a deductive method that concentrates on the key drivers that have the greatest impact and the highest degree of uncertainty which could shape the future of Oil and Gas Industry in Indonesia. Scenario planning involves five stages: orientation, investigation, scenario construction, analysis of choices and ramifications, and integration. The four scenarios are (i) Empty Boat (EB), (ii) Leaking Boat (LB), (iii) Rocking the Boat (RB), and (iv) Rowing to Win (RTW). Each scenario outlines the condition of the oil and gas business in Indonesia, the pace of the energy transition, the proportion of fossil and renewable energy, the focus of government attention, policy, and regulatory frameworks as well as advancements made toward the net zero emission objective. This research describes the implications, options, and strategies for each scenario which can then be taken into consideration by GBH as an OFS company to enable proactive decisions and evaluate strategies to be resilient in each scenario. This research suggests the businesses to reevaluate the energy market, their operating environment, and their core capabilities in order to determine how best to diversify and expand their portfolio of technology, products, and services geared toward clean and renewable energy.