The Indonesian Petroleum Association states that "Oil exploration in Indonesia dates back to 1871, with the first commercial production starting in 1885." The success of one of the very first wells, drilled at Telaga Tunggal in 1885, sparked the explosion of Indonesia's oil industry. At a depth of only 121 meters, this well produced commercial quantities of oil. This immediately led to further exploration and drilling of new oil fields throughout the region. The Royal Dutch Company and Shell Transport and Trading were the first two companies to lead the start of the oil industry in Indonesia. In 1890, the Royal Dutch Company was created to produce and refine oil while Shell Transport and Trading focused on the marketing and transportation side of the market. They merged in 1907 to form Royal Dutch Shell. In the literary work “The Early Days of the Oil Industry in Indonesia” it is stated that in that period “total production increased to 62,000 barrels per day, of which 95% was produced by Royal Dutch Shell”. At the turn of the century there were about twenty companies exploring, if not already producing, oil in Indonesia. However, in the first half of the 20th century, Royal Dutch Shell and the US companies Stanvac and Caltex dominated the industry in Indonesia. Major oil fields included Kruka and Ledok in East Java, Kampong Minyak and Sumpal in South Sumatra, and Perlak in North Sumatra. With the discovery of these abundant deposits and other new deposits, crude oil production reached a new high in 1939. Crude oil production reached 170,000 barrels per day, while approximately 180,000 barrels were refined each day. As a result, almost 75% of the Far East's crude oil came from I... half the paper... to be exported helping to meet domestic energy needs. Indonesia dominates global palm oil production. Expected to produce 31 million tonnes in 2013, Indonesia is currently the world's largest producer and exporter of palm oil. Palm oil is an economical and production-efficient oil produced from the fruit of certain palm trees. As the palm oil industry has grown, deforestation as a means of producing it has become prevalent in Indonesia. According to the Indonesian Ministry of Agriculture, “The total area of ​​oil palm plantations in Indonesia is currently approximately eight million hectares; a number that is double compared to 2000”. The palm oil industry is expected to expand for a number of reasons. Crude palm oil is simple to produce and therefore has low production costs, and its international demand is increasing due to rising gasoline prices.