The energy sector faces three main challenges: global warming, climate change, and the energy trilemma. Demands for the energy trilemma, namely energy security, energy affordability, and energy sustainability, are expected to increase along with economic growth. Currently, more than 80% of global energy consumption is fueled by fossil fuels, which has consequences, including the release of greenhouse gases (GHG).

The oil and gas industry, often criticized for its environmental impact, is now undergoing a paradigm shift towards more sustainable production processes. PETRONAS, in particular, has taken a proactive stance, recognizing the urgency of addressing environmental issues while enhancing social welfare. By incorporating ESG (Environment, Social, and Governance) concepts into its corporate culture, PETRONAS is setting new standards for responsible energy management.

“What is the role of the oil and gas industry in a sustainable future? “Of course, by taking advantage of the energy transition, for example, utilizing renewable energy and implementing a green transition,” said Wimbuh Nawa Nugroho, Vice President of Production Operations for PETRONAS CARIGALI Indonesia Operations, who delivered a guest lecture at the SBM ITB on Tuesday (30/4). “Carbon Capture Utilization and Storage (CCUS) technology is a breakthrough”, he highlighted. 

According to Wimbuh, environmental management is at the core of PETRONAS’ ESG strategy, relentlessly focusing on reducing emissions, energy efficiency, and biodiversity conservation. PETRONAS aims to minimize its ecological footprint and mitigate climate risks through innovative technologies and strict environmental protocols.

Wimbuh emphasized the crucial role of the social aspect for oil industry players. He acknowledged that conflicts or complaints often arise in the environment around oil extraction sites. To address and mitigate these social risks, companies typically implement CSR or corporate social responsibility initiatives. This underscores the importance of social responsibility in the oil industry.

Companies like PETRONAS are driving this change, understanding that a commitment to environmentally friendly management not only reduces emissions but also increases cost efficiency and regulatory compliance. Ultimately, it improves the company’s reputation.

Written by Student Reporter (Agustin Anandia Kartika, Management 2024)