Brunei is important to world energy markets because it exports nearly 180,000 barrels per day of oil, is a large liquefied natural gas producer (third largest in Asia), and because of its location to vital sea lanes, through the South China Sea, linking the Indian and Pacific Oceans.

According to the 2008 BP Statistical Energy Survey, Brunei had proved oil reserves of 1.2 billion barrels at the end of 2007 and produced an average of 194.2 thousand barrels of crude oil per day in 2007, 0.24% of the world total and a change of -12.1 % compared to 2006. To prolong the life of Brunei’s hydrocarbon reserves, the government controls oil production levels.

Brunei's economy is based heavily upon proceeds from exports of crude oil and natural gas, with revenues from the hydrocarbons sector accounting for over 33% of gross domestic product (GDP), around 80%-90% of exports, and 75%-90% of government revenues. Per capita GDP places Brunei among the World Bank's high-income non-OECD group of countries, with substantial income from overseas investment supplementing income from domestic sources.

In 2002, the government established the country’s first national oil company, Brunei National Petroleum Corporation (BNPC, also known as PetroleumBRUNEI). Brunei Shell Petroleum (BSP), a joint venture between Shell and the government of Brunei, dominates the country’s oil industry.

According to the 2008 BP Statistical Energy Survey, Brunei had 2007 proved natural gas reserves of 0.34 trillion cubic metres, 0.19% of the world total. Brunei produced 12.25 billion cubic metres of natural gas in 2007.

According to Oil and Gas Journal, Brunei had 8,600 bbl/d of refining capacity at its only facility in 2007. BSP operates the only refinery, which is located at Seria.