From Fire to Reform: The Story of Piper Alpha

On October 25th, 2025, the Society of Petroleum Engineers ITS Student Chapter (SPE ITS SC) successfully held ONG 101, an insightful seminar that brought students closer to the real challenges and opportunities within the oil and gas industry. Held at Teater A, Institut Teknologi Sepuluh Nopember (ITS) Surabaya, the seminar featured Ir. Zulfikar A. Ali, IPM, Senior Completion and Fracturing Engineer at KUFPEC and ITS Chemical Engineering alumnus, as the keynote speaker. In his opening presentation, Mr. Zulfikar emphasized that safety remains the foremost priority in every stage of oil and gas operations. He explained that the strict regulatory frameworks governing exploration, drilling, and production activities are designed to prevent accidents, mitigate risks associated with H₂S gas exposure, and minimize environmental incidents such as oil spills. According to him, adherence to safety standards is a non-negotiable aspect of engineering professionalism, reflecting the industry's ethical responsibility toward both personnel and the environment. The speaker proceeded to share his personal experiences working across various segments of the oil and gas value chain. He reflected on the challenges and learning processes that shaped his career, encouraging students to pursue their passion with perseverance and integrity. Addressing the growing public perception that the oil and gas industry is a declining sector, Mr. Zulfikar remarked: “Some people say, ‘Oil is running out, why study petroleum engineering?’ But I believe hydrocarbons will still be needed for the next 100 years. Oil and gas will continue to support the world’s energy demand. It will remain part of our journey to achieve global energy targets.” This statement underscored the continuing relevance of Oil and Gas exploration and innovation within the broader context of energy transition and sustainability. While the global energy landscape is shifting toward renewable resources, hydrocarbons will remain essential for industrial processes, petrochemicals, and transitional energy sources in the decades to come. In the technical portion of the session, Mr. Zulfikar elaborated on the cycle of oil and gas operations, covering exploration, drilling, completion, production, and decommissioning. He introduced the concepts of primary, secondary, and tertiary recovery, in which the industry has now reached tertiary recovery. This emphasizes the importance of continuous innovation to improve recovery efficiency and resource sustainability. He highlighted the necessity of “honoring technology” by embracing advancements that enable engineers to address contemporary challenges such as reservoir depletion, environmental impact reduction, and cost optimization. Topics discussed included offshore exploration wells, structural integrity, station-keeping systems, and drill stem testing all of which require interdisciplinary collaboration and robust engineering design. The seminar’s central theme, well-completion, was explored in depth. Mr. Zulfikar discussed the primary challenges faced by completion engineers, particularly in corrosive well environments, where material selection becomes a critical factor. He also addressed the requirements for materials capable of withstanding the extremely low temperatures associated with Carbon Capture and Storage (CCS) operations, an emerging field aligned with global decarbonization goals. Various artificial lift systems were introduced as solutions for enhancing production from mature wells. Furthermore, the speaker noted that multilateral well technology, though not yet widely implemented in Indonesia, presents significant opportunities for improving reservoir drainage efficiency. Mr. Zulfikar also explained several methods to mitigate sand production, such as gravel packing and screen design, emphasizing that these practices are vital for maintaining well integrity. He concluded this section by introducing smart well technologies, which enable remote monitoring and control to minimize the need for physical intervention, thereby enhancing both safety and efficiency. Beyond technical competence, Mr. Zulfikar stressed that successful engineering practice in the oil and gas industry depends on effective collaboration among diverse disciplines.  Such multidisciplinary cooperation fosters innovative problem-solving and ensures that complex projects meet both operational and environmental standards. The event’s interactive segments demonstrated the enthusiasm of ITS students. The QnA session featured insightful discussions that reflected participants’ curiosity and critical thinking regarding industry practices. The seminar concluded with a PetroQuiz, in which attendees enthusiastically competed to answer technical questions related to the material presented. This activity effectively reinforced the participants’ understanding while maintaining an engaging atmosphere. Through ONG 101, SPE ITS SC successfully bridged academic learning with real-world industry perspectives. The seminar provided valuable exposure to practical engineering challenges and the evolving dynamics of the global energy sector. By presenting both motivational insights and technical expertise, Ir. Zulfikar A. Ali, IPM, not only broadened the participants’ understanding of well completion and production technologies but also inspired them to uphold professional values of safety, innovation, and collaboration.  Writer: Christya Amanda

Oil prices have long been a key driver of economic trends around the world. As the primary source of energy for many industries and households, fluctuations in oil prices can have far-reaching effects on both advanced and developing economies. From transportation costs to inflation and industrial production, oil prices impact nearly every sector of the global economy. Given oil's status as a high-demand global commodity, significant price fluctuations can have profound economic consequences. Oil prices are determined by a mix of supply and demand, production costs, and market sentiment. Supply and demand are influenced by the oil futures market, where contracts are made to buy or sell oil at a specific price on a future date. The cost of extraction also affects prices—easily accessible oil is cheaper to produce, while complex methods like deep-sea drilling require costly technology, pushing prices higher. Lastly, market sentiment plays a role, as speculation about future demand can drive up prices when traders buy oil futures contracts in anticipation of future shortages or increased demand.In 2020, the demand for oil plugged during the pandemic, with lockdown causing the price to fall below zero for the first time in history to a sharp downturn in economic activity. Since then, oil prices have surged to nearly $100 per barrel, driven by strong economic recovery post-lockdown. As the economy grows, so does the demand for oil. Oil accounts for approximately 3% of global GDP and is one of the most important commodities worldwide.Source : world economic forumAn increase in oil prices affects not only gasoline cost but also virtually all goods and services. Oil serves as both a feedstock and source of energy and is integral to transportation across industries. When oil prices rise, energy is integral to transportation across industries. When oil prices ries, energy bills increase, and these costs are passed on to consumers through higher prices for goods and services. This often leads to inflation, as the cost of living rises and the purchasing power of consumers declines. For many countries, oil and gas revenues are central to their economic stability. Nations that are major exporters, such as Saudi Arabia and Russia, rely heavily on income from these resources to fund government spending, infrastructure projects, and social programs. When oil prices plummet, these countries face budget deficits, currency devaluations, and economic downturns. On the other hand, oil-importing nations, particularly in the developing world, struggle with rising import costs when prices increase, worsening trade deficits and slowing economic growth. The global dependence on oil and gas keeps national economies vulnerable to market shiftsThe oil and gas industry plays a critical role in global supply chains, especially in sectors like transportation, manufacturing, and agriculture. Rising oil and gas prices can disrupt supply chains by increasing the cost of raw materials, transportation, and energy-intensive production processes. For instance, the shipping industry, which relies on oil-based fuels, faces higher operational costs, which are then passed on to consumers. These disruptions can cause delays in the availability of goods, increase the prices of everyday items, and slow down global trade, impacting economies worldwide.Written by : Fairuz Nabila DaniputriReferences :World Economic Forum, 2022. *Why oil prices matter to the global economy: An expert explains*. World Economic Forum. Available at: [Accessed 16 September 2024].U.S. Energy Information Administration, 2022. *Indonesia – International analysis*. U.S. Energy Information Administration. Available at: [Accessed 16 September 2024].McKinsey & Company, 2020. *Oil and gas after COVID-19: The day of reckoning or a new age of opportunity?* McKinsey & Company. Available at: [Accessed 16 September 2024].

Kangean Energy Indonesia (KEI) is set to begin a large-scale 3D seismic survey in the Kangean Islands, East Java, after fulfilling all required permitting procedures, including environmental and social compliance assessments. The confirmation was issued by the Jawa-Bali-Nusa Tenggara (Jabanusa) Regional Office of the Special Task Force for Upstream Oil and Gas, SKK Migas, marking the survey as one of the key upstream exploration efforts in the region. Anggono Mahendrawan, Head of SKK Migas Jabanusa, stated that seismic acquisition plays a crucial role in determining the direction of Indonesia’s oil and gas exploration activities. According to him, subsurface geological data generated from seismic imaging is essential not only for contractors but also for the government in preparing long-term resource planning. “This seismic survey is actually a national necessity. We need geological layer data to support exploration activities and secure future energy resources,” Anggono said during a discussion with ruangenergi.com in Jakarta on Monday, 3 November 2025. The survey will produce highly detailed information regarding the structure, depth, and lithology of underground rock formations. SKK Migas emphasized that such data is a critical determinant in assessing hydrocarbon potential in a given area and will be incorporated into the national upstream exploration database. The data will serve as the technical basis for decision-making on subsequent drilling plans, investment prioritization, and future working area allocations. Anggono acknowledged that upstream exploration remains a high-risk investment for contractors due to the uncertainty of commercial discoveries. However, he underlined that seismic datasets retain long-term value for the country regardless of discovery outcomes. “If no reserves are found, the cost won’t be recovered, but the data will still be beneficial for future energy development,” he noted, referring to the seismic data retention system that supports the national exploration master plan. SKK Migas also highlighted that the 3D seismic activity by KEI requires substantial investment and has undergone rigorous environmental and social impact verification. The agency stressed that adherence to regulatory and community safeguards is a prerequisite for the sustainability of upstream operations, especially in offshore and remote island clusters such as the Kangean region. Beyond its technical purpose, the survey is aligned with SKK Migas’ broader strategy to increase exploration intensity across frontier and underexplored basins in support of the national one-million-barrels-per-day oil production target. Strengthening the national subsurface data inventory is considered crucial to attracting upstream investors, reducing geological uncertainty, and enhancing resilience in domestic energy supply. Further updates on survey progress, including data acquisition scope, timeline for processing and interpretation, and follow-up drilling plans are expected to be announced after the initial operational phase in the coming months. Writer: Azzahra Luna Prasetyo

In 2026, the oil and gas industry’s AI revolution is no longer a forecast, it is an operational reality. The world’s largest energy companies have moved past experimentation, embedding AI into drill floors, control rooms, and thousands of kilometers of pipeline. The results are tangible: fewer equipment failures, lower costs, faster drilling cycles, and tighter emissions control.ExxonMobil was the first in the industry to deploy AI-driven closed-loop drilling automation in a deepwater setting, operating in Guyana where AI systems adjust drilling parameters in real time without human input. In the Permian Basin, machine learning has lifted shale well output by more than 5% and cut data preparation time by roughly 40%.BP has wired over two million sensors across assets in the Gulf of Mexico, the North Sea, and Oman, feeding data into digital twins and its in-house AURA system that simultaneously tracks operational inefficiencies and monitors carbon and methane emissions. The company reports drilling more wells annually as a direct result. Chevron, meanwhile, deploys AI-enabled drones over its Permian operations to detect methane leaks and equipment failures without putting personnel in hazardous zones. Shell applies machine learning to forecast equipment failures before they occur, while Saudi Aramco uses computer vision to monitor thousands of kilometers of pipelines for anomalies.The financial case is well-documented. Boston Consulting Group reports AI has cut operating costs by 15–20% and reduced key cycle times from months to weeks. McKinsey estimates predictive analytics alone lowers maintenance costs by up to 25%. At the field level, AI systems have prevented over 140 hours of unplanned downtime, protecting 1.6% of production uptime figures that translate directly into revenue.The global AI in oil and gas market was valued at USD 7.6 billion in 2025 and is projected to surpass USD 25 billion by 2034, growing at 14.2% annually. Upstream operations account for over half of all AI deployment, driven by the data-intensive nature of exploration and production. North America leads adoption, while Asia-Pacific is forecast as the fastest-growing region through 2031.The companies advancing fastest are not doing so simply to cut costs. They are responding to growing complexity: volatile markets, tightening emissions rules, aging infrastructure, and the sheer volume of real-time data across global assets. Managing all of that with human judgment alone has become impractical. In 2026, AI is not the future of oil and gas. It is the present. Writer: Akhirian Taka