According to the 2008 BP Statistical Energy Survey, Malaysia had proved oil reserves of 5.357 billion barrels at the end of 2007..
Malaysia is well endowed with both conventional (non-renewable) and non-conventional (renewable) sources of energy. The largest non-renewable energy resource found in Malaysia is petroleum (i.e. oil and gas) which is being actively exploited. Malaysia's domestic oil production occurs offshore and primarily near Peninsular Malaysia. Most of the country's oil fields contain low sulfur, high quality crude.
Several new oil production projects have come online during the last few years. According to the 2008 BP Statistical Energy Survey, Malaysia produced an average of 755.2 thousand barrels of crude oil per day in 2007, 0.87% of the world total and a change of 1 % compared to 2006. During the same period, Malaysia consumed an average of 513.89 thousand barrels.
In terms of institutional arrangements, PETRONAS, established under the Petroleum Development Act (1974) as a state-owned enterprise, has exclusive rights of ownership, exploration and production. It comes under the direct purview of the Prime Minister and is responsible for its planning, investment and regulation of all up-stream activities.
The Ministry of International Trade and Industry (MITI) as well as the Domestic Trade and Consumer Affairs (MDTCA), through the Petroleum Regulations of 1974 (amended in 1975 and 1981), are vested with powers to regulate all downstream activities. MITI is responsible for the issuance of licences for the processing and refining of petroleum and the manufacture of petrochemical products, whilst MDTCA issue licences for the marketing and distribution of petroleum products. .
As a result of the country's long-term trend toward declining oil reserves, Petronas, the state oil and gas company, has embarked on an international exploration and production strategy. Malaysia exports the majority of its oil to markets in Japan, Thailand, South Korea, and Singapore.
Despite active exploring in offshore areas and several new projects due to come onstream in the next several years, it is expected that Malaysia’s oil production will fall in years to come as its proven oil reserves decline.
Malaysia is one of the world’s leading exporters of liquefied natural gas, and according to the 2008 BP Statistical Energy Survey, had 2007 proved natural gas reserves of 2.47 trillion cubic metres, 1.39% of the world total. Malaysia had 2007 natural gas production of 60.5 billion cubic metres and consumption of 28.25 billion cubic metres.
