Oil and gas trends and implications in Malaysia

Abstract

a b s t r a c tThe trends of reserves, production and consumption of oil in Malaysia to meet the ever-increasing demands do not seem to show that oil and gas will be depleted soon, contrary to many reports. Malaysia's net exporter status of oil continues to expand over time for as long as the value of exports is greater than the value of imports. Only in physical quantities of oil that Malaysia's imports exceed exports, but this does not mean that Malaysia will be a net importer by then. Given higher prices of exports, the value of exports outweighs the value of imports. If the current reserves are extracted based on the domestic consumption trend of 1980-2010, Malaysia's reserves will last until 2027 but based on the 1998-2010 trend, the reserves will be depleted by 2035. Malaysia has adopted a four fuel diversification strategy comprising oil, gas, coal and hydro, instead of heavily dependent on oil. Gas has a huge potential for domestic utilization as well as for exports to increase revenues. Malaysia is one of the few countries having many types of renewable energy sources. Malaysia has great potential in biomass utilization as renewable resources mostly from the existing natural forest and planned plantations.

A vision on the opportunities, policies and coping strategies for the energy security and green energy development in Malaysia

“…The basic structure of Malaysian economic and productive development is highly dependent on the consumption of fossil fuel, and the main sources of energy supply are petroleum and natural gas, both accounting for more than 88% of the total energy supply [12]. At the current consumption rate, the projected reservation of petroleum and natural gas in Malaysia would last for the next 16 and 36 years.…”

The Step Forward: Options for the Displacement of Power Generation from Oil and Gas in Malaysia Using a System Dynamics Approach

“…During the same period, oil production and consumption has increased by 50% and 200% respectively whilst gas production and consumption has increased by 400% [1]. As of 2012, Malaysia has proven oil reserves of 4 billion barrels (bbl), with a reserve-to-production ratio of 17.08 years, whilst proven gas reserves stand at 83 trillion cubic feet (tcf) with a reserve-to-production ratio of 34.14 years [1], [2].…”

“…For gas production and consumption, it is seen that the general trend is increasing at the rate of 3 to 5% annually. With consumption trend based on 1998-2010 oil and gas consumption, it is forecasted that the oil reserves and gas reserves are expected to last until 2035 and 2050 respectively [1], [2].…”

Do Su fficient Institutions Alter the Relationship between Natural Resources and Economic Growth?

“…Acemoglu, Johnson, and Robinson (2001) emphasize that Botswana's good governance institutions were motivation for its remarkable long-run economic development. Another example is studied by Rahim and Liwan (2012), where it is empirically shown that Malaysia seems to have succeeded in establishing sustainable economic development by managing its natural resource through good governance indicators.…”