Premium Essay

Oil And Gas Industry In Malaysia

Submitted By
Words 1132
Pages 5
Malaysia is one of the world’s significant oil and gas producers. Malaysia holds the world’s 28th largest crude oil reserves with proven oil reserves of 4 billion barrels. Malaysia is also the world’s 13th largest natural gas reserves with a 33 capacity of 2400 billion cubic meters. Regarding to this, the development of oil and gas industry in Malaysia bring some impact to us. Mining in the past few decades in the oil,it brings some effects on economic, social and environment to some developing countries led to a huge problem. As one of the nation's main commodities, oil and gas has a very strong impact on the Malaysian economy. Our Oil and Gas team with its industry professionals and worldwide capabilities is ideally placed to help companies …show more content…
First, gasoline, diesel and other oil products, which itself is part of the CPI and PPI, oil prices will directly affect these prices; secondly, changes in oil prices will gradually affect output prices of petrochemical, transportation and other industries, and in the longer the lag affect the relationship between input and output by almost all products and services prices. Therefore, if the oil price change is permanent, it will not only affect the overall inflation in the short term (also translated as headline inflation, ie headline inflation), will eventually affect the core inflation (excluding food, inflation in oil prices after the impact) . Third, changes in oil prices can affect inflation expectations, and is expected to act as a "speed up" oil prices to core inflation conduction role to some …show more content…
For a long time, low energy efficiency, irrational allocation of energy products, relatively low energy prices, resulting in excessive energy consumption, serious waste and lead to serious environmental pollution problems, energy prices have to reform must be to the point. However, due to the energy related to people's livelihood, energy price reform should give full consideration to the general population, especially low-income people can afford. In addition, from the previous energy price reform, due to the timing of immature and too extensive ways, the result of multiple causes of the price reform of energy prices, some residents of a backlash. Today, the international crude oil market supply exceeds demand, prices continued to fall and thus driving down prices, energy price reform are to provide a larger buffer

Similar Documents

Premium Essay

Chapter 2

...2. Oil and gas sector This chapter begins with an overview of the oil and gas industry in Malaysia. Description of the value chain of the industry is given in section 2.2, followed by the industry’s economic performance in section 2.3. Section 2.4 focuses on the scope of the inquiry regarding issues in the oil and gas industry. 2.1 Oil and gas industry in Malaysia This section provides an overview of the oil and gas industry in Malaysia. 2.1.1 History Oil and gas production have been a mainstay of Malaysia’s growth since oil was first drilled in 1910 in Miri, Sarawak. The first oil well (known as The Grand Old Lady) which was discovered by Shell, started with a production of 83 barrels per day (bbls/d) and reached a maximum of 15,000 bbls/d in 1929. There were no other drilling activities elsewhere in Borneo or Peninsular Malaya until the 1950s. [1, 2, 3] Petroleum activities began increasing significantly in 1960s due to the discovery and development of offshore fields in Borneo. The late 1960s saw the beginning of offshore oil exploration in the east coast of Peninsular Malaysia. In the 1970s, some oil fields in Malaysia were producing 90,000 to 99,000 bbls/d. [2] In the early days, foreign oil companies dominated the oil and gas industry in Malaysia with Shell and Esso being the two major players. This was followed by several other foreign companies such as Conoco, Mobil, Aquitaine, Oceanic and Teiseki. The national company, Petronas came on to the scene......

Words: 6202 - Pages: 25

Free Essay

Malaysia Economic

...ASSIGNMENT 1 Introduction : Recent years ,Malaysia is keeping on priming of economy,their aim is to determine the Malaysia into a high-income developed nation.so they has been proposed the economic transformation programme ,the programme is a comprehensive effort that will transform Malaysia into a high-income nation ,and change the country's main productivity from the agricultural to the Industrialization by 2020. The Economy transformation programme is follow a quite different way from the past to develop the economy . This programme planning to focus on the core development area : the 12 national key economic areas(NKEAs) ,including oil gas and energy ,palm oil and rubber, financial services,tourism,business service,electrical and electronic,wholesale and retail ,education,healthcare , Communications Content and Infrastructure; Agriculture; and Greater Kuala Lumpur/Klang Valley.which are choose from the Malaysia' s advantage industry and the future potential industry.those key economic areas will bring a huge amount of profit contribute to Malaysia 's economy ,and those areas will be acquired the public investment and government support in prior。Besides,those Key economic area will be get policy reforms such as the remove the economic competition barriers and market liberalization .This program will involve the deliberate choices and trade-offs. Prioritize investment in key economic sectors means less investment in other areas. To bring about meaningful change for...

Words: 3871 - Pages: 16

Premium Essay

Viva Voce

...com ECONOMY ANALYSIS INDUSTRY ANALYSIS VIVA-VOCE COMPANY ANALYSIS (FIN382) COMPANY ANALYSIS FUNDAMENTAL ANALYSIS RISK AND RETURN ANALYSIS TECHNICAL ANALYSIS CONCLUSION AND RECOMMENDATION Petronas Gas (PETGAS 6033) WORLD From all the analysis conducted in world economic analysis, it shows that the average of the GDP for all countries that being analyze was good. A good GDP indicates that the country can manage their financial very well and has good cooperation with other country. Other than that, import and export within 5 years analyze shows that the country has good results in average. This indicate world economy have large current account surpluses and have indicated plans to rebalance from foreign to domestic demand. MALAYSIA GROSS NATIONAL PROFIT GROSS DOMESTIC PROFIT (GDP) IMPORT & EXPORT GRAPH MALAYSIA BASE LENDING RATE MALAYSIA INFLATION RATE NUMBER OF EMPLOYMENT UNEMPLOYMENT RATE CURRENCY EXCHANGE RATE CONTRIBUTION TO GDP CONTRIBUTION TO GDP INDUSTRY LIFE-CYCLE MARKET SHARE MARKET SIZE Backing Factor The Industrial Master Plan (IMP3) Government interventions to support industry Malaysia also has a vibrant oil and gas industry. Sector-based approach Economic conditions vary across sectors and sector considerations PETRONAS HISTORY PRINCIPAL ACTIVITIES Exploration and production Malaysia : Petronas carigali Abroad : strengthen position by securing new acreages . Downstream (Oil and Petrohemicals) Oil : adds value to the crude oil produced by their......

Words: 460 - Pages: 2

Premium Essay

T446Tert

...1.0 Environmental and Social Issues in Oil and Gas Industry 2.1 Safety Safety is one of the biggest concerns in every manufacturing industry, especially in petroleum industry. Petroleum industry easily identified as very dangerous industry especially those working at a oil rig. Petroleum companies are drilling oil in the mid desert, shores, and even at Artic seas. The condition of the sea bed is a huge concern on safety as well as the ice on the Artic region which can melt at any time causing death and injuries to thousands of workers. Its dangerous level is best represented by the wages in Petroleum Industrial which is soaring high tremendously. High wages paid to compensate the dangerous activities the workers involved in this Oil and Gas industry. Besides that, human errors such as carelessness or recklessness, delays in equipment maintenance or repair, failure to give proper training, failure to properly communicate, and incompetent safety procedures are also main reason of safety concerns in petroleum sector. Meanwhile, the nature of industry itself might cause the accidents involving explosions, mishaps while raising pipeline, oil rig, salt dome accidents, and contamination in storage and derrick safety violations. The safety in oil and gas industry is growing but at the same time increases in oil and gas activity correlate with an increase in the rate of fatal occupational injuries, particularly when inexperienced workers are not sufficiently trained......

Words: 1630 - Pages: 7

Premium Essay

Retranchment

...1. ARTICLES This article first appeared in The Edge Malaysia Weekly, on December 14 - 20, 2015 [pic] A construction industry executive recently rented a high-end condominium for about 30% less than the going rate a year ago. Why was the condominium so cheap? The property agent replied that the previous tenant — a high-ranking oil and gas (O&G) official — had lost his job. “It’s quite common now for O&G expatriates to lose their jobs, so the property market has also been impacted,” the agent said. According to a senior executive in the once-booming oil and gas sector, as many as 7,000 to 8,000 executives have lost their jobs after the second round of industry-wide retrenchments in the country. He has been told by colleagues that Petroliam Nasional Bhd (Petronas), Scomi Group Bhd and UMW Oil & Gas Corp Bhd have put a freeze on hiring and the list of companies doing the same is getting longer. “Worse still, MMHE [Malaysia Marine and Heavy Engineering Holdings Bhd] is looking to discontinue the services of as many as 800 contractual workers, and Petronas is also mulling over a similar move,” he says. Such moves are often denied and never publicised. An MMHE official tells The Edge that the company only makes such announcements internally, but adds that she has not heard of recent staff-reduction exercises. “MMHE, like most businesses, is operating in a very competitive industry and under tough economic conditions. Regrettably, this often has an unavoidable impact on staff,” an......

Words: 3681 - Pages: 15

Free Essay

Oil Palm

...com/locate/energy Oil palm biomass as a sustainable energy source: A Malaysian case study S.H. Shuit, K.T. Tan, K.T. Lee*, A.H. Kamaruddin School of Chemical Engineering, Universiti Sains Malaysia, Engineering Campus, Seri Ampangan, 14300 Nibong Tebal, Pulau Pinang, Malaysia a r t i c l e i n f o a b s t r a c t Article history: Received 24 October 2008 Received in revised form 13 May 2009 Accepted 14 May 2009 Available online 13 June 2009 It has been widely accepted worldwide that global warming is by far the greatest threat and challenge in the new millennium. In order to stop global warming and to promote sustainable development, renewable energy is a perfect solution to achieve both targets. Presently million hectares of land in Malaysia is occupied with oil palm plantation generating huge quantities of biomass. In this context, biomass from oil palm industries appears to be a very promising alternative as a source of raw materials including renewable energy in Malaysia. Thus, this paper aims to present current scenario of biomass in Malaysia covering issues on availability and sustainability of feedstock as well as current and possible utilization of oil palm biomass. This paper will also discuss feasibility of some biomass conversion technologies and some ongoing projects in Malaysia related to utilization of oil palm biomass as a source of renewable energy. Based on the findings presented, it is definitely clear that Malaysia has......

Words: 10699 - Pages: 43

Free Essay

Marketing

...OF A GLOBAL OR WELL-KNOWN MALAYSIA COMPANY (PETRONAS) FOR ITS SURVIVAL IN THE NEAR FUTURE THE ANALYSIS AND EVALUATION OF THE WINNING STRATEGIES OF A GLOBAL OR WELL-KNOWN MALAYSIA COMPANY (PETRONAS) FOR ITS SURVIVAL IN THE NEAR FUTURE Introduction PETRONAS vision was "To be A Leading Oil and Gas Multinational Company of Choice" and it stated the globalization effort in 1994. PETRONAS global operation had extended to Africa countries, Confederate Independence of Soviet Union (CIS), Middle East and Asia Pacific countries. Some of the Africa countries included Sudan, South Africa (downstream Engen), Libya and Algeria. The investments in CIS were Turkmenistan and Kazarkstan. The investment in Middle East countries included Iran, Syria and Iraq. In the Asia Pacific, the oversea portfolios extended to Vietnam, Mynmar, China and Australia (both Upstream and downstream). The oversea upstream activities were undertaken by its subsidiary PETRONAS Carigali Sdn Bhd (PCSB) through its oversea subsidiary companies. When PETRONAS started its globalization efforts, the environmental factors were very much favorable. However, in 1997 and 1998 there were adverse changed in these environmental factors and had affected PETRONAS globalization efforts. Some of these factors were the regional and world economic turmoil, regional financial and currency devaluation, slower economic growth, low demand of oil and gas, lower oil and gas price and lower......

Words: 2633 - Pages: 11

Premium Essay

Trans Pacific Partnership Agreement

...ABSTRACT Trans- Pacific Partnership Agreement (TPPA) is now sound familiar to Malaysia, this is because that countries is one out of the twelve countries that involve in that agreement. The goals of the Trans-Pacific Partnership (TPP), a much-delayed but significant trade agreement between 12 countries in Asia-Pacific and the Americas pushed by the US are increasingly becoming clearer after ongoing talks reveal some of the intentions Washington is pursuing with this pact. The highlighted of the agreement is to increase in import growth is projected to outpace increase in export growth, as the reductions in import tariffs and non-tariff measures (NTM) are larger for Malaysia relative to the other TPPA countries. According to The New York Times, economists are sharply split over the positive and negative effects of TPP, and both "opponents and supporters of the trade accord have quickly seized upon whichever analysis buttressed their own views. ECIPE has said in 2014 that TPP "will be the first ‘competing’ economic integration that is large enough to have a considerable negative impact on Europe. In the long-term, the negative effects will come from dynamic impact, e.g. on investment, productivity and competitiveness". Pascal Lamy called the TPP ‘the last of big old-style trade agreements’. It has said to be a negative impact on the oil and gas sector whose share of GDP is 12 per cent. PETRONAS stands to benefit very little from TPPA as 74 per cent of its exports are to......

Words: 7586 - Pages: 31

Premium Essay

Blah

...PETRONAS: A NATIONAL OIL COMPANY WITH AN INTERNATIONAL VISION BY DR. FRED R. VON DER MEHDEN RICE UNIVERSITY WITH AL TRONER ASIA PACIFIC ENERGY CONSULTING PREPARED IN CONJUNCTION WITH AN ENERGY STUDY SPONSORED BY THE JAMES A. BAKER III INSTITUTE FOR PUBLIC POLICY AND JAPAN PETROLEUM ENERGY CENTER RICE UNIVERSITY – MARCH 2007 THIS PAPER WAS WRITTEN BY A RESEARCHER (OR RESEARCHERS) WHO PARTICIPATED IN THE JOINT BAKER INSTITUTE/JAPAN PETROLEUM ENERGY CENTER POLICY REPORT, THE CHANGING ROLE OF NATIONAL OIL COMPANIES IN INTERNATIONAL ENERGY MARKETS. WHEREVER FEASIBLE, THIS PAPER HAS BEEN REVIEWED BY OUTSIDE EXPERTS BEFORE RELEASE. HOWEVER, THE RESEARCH AND THE VIEWS EXPRESSED WITHIN ARE THOSE OF THE INDIVIDUAL RESEARCHER(S) AND DO NOT NECESSARILY REPRESENT THE VIEWS OF THE JAMES A. BAKER III INSTITUTE FOR PUBLIC POLICY NOR THOSE OF THE JAPAN PETROLEUM ENERGY CENTER. © 2007 BY THE JAMES A. BAKER III INSTITUTE FOR PUBLIC POLICY OF RICE UNIVERSITY THIS MATERIAL MAY BE QUOTED OR REPRODUCED WITHOUT PRIOR PERMISSION, PROVIDED APPROPRIATE CREDIT IS GIVEN TO THE AUTHOR AND THE JAMES A. BAKER III INSTITUTE FOR PUBLIC POLICY ABOUT THE POLICY REPORT THE CHANGING ROLE OF NATIONAL OIL COMPANIES IN INTERNATIONAL ENERGY MARKETS Of world proven oil reserves of 1,148 billion barrels, approximately 77% of these resources are under the control of national oil companies (NOCs) with no equity participation by foreign, international oil companies. The Western international oil companies......

Words: 12179 - Pages: 49

Premium Essay

Http: //Www.Termpaperwarehouse.Com/Essay-on/Swot-Anaylsis/151736

...f:+49 69 9754 4900 e:deinfo@datamonitor.com t:+852 2520 1177 f:+852 2520 1165 e:hkinfo@datamonitor.com Genting Bhd ABOUT DATAMONITOR Datamonitor is a leading business information company specializing in industry analysis. Through its proprietary databases and wealth of expertise, Datamonitor provides clients with unbiased expert analysis and in depth forecasts for six industry sectors: Healthcare, Technology, Automotive, Energy, Consumer Markets, and Financial Services. The company also advises clients on the impact that new technology and eCommerce will have on their businesses. Datamonitor maintains its headquarters in London, and regional offices in New York, Frankfurt, and Hong Kong. The company serves the world's largest 5000 companies. Datamonitor's premium reports are based on primary research with industry panels and consumers. We gather information on market segmentation, market growth and pricing, competitors and products. Our experts then interpret this data to produce detailed forecasts and actionable recommendations, helping you create new business opportunities and ideas. Our series of company, industry and country profiles complements our premium products, providing top-level information on 10,000 companies, 2,500 industries and 50 countries. While...

Words: 2141 - Pages: 9

Premium Essay

Economics Assignment

...BACKGROUND OF MALAYSIA Malaysia is a small and open state-oriented and newly industrialized market economy. The code for the Malaysia currency is MYR. The currency of Malaysia is Ringgit Malaysia (RM) and is unofficially identified as the Malaysian dollar. Ringgit comes into notes and coins. A Ringgit can be divided into 100 cents. The currency is denominated into RM1, RM2, RM5, RM10, RM50 and RM100 while the Ringgit is denominate into 5 cents, 10 cents, 20 cents and 50 cents. The currency of Malaysia is currently pegged at RM3.80 to US$1.00. Malaysia centre bank is Bank Negara Malaysia. Malaysia main trading partner is U.S, Japan and Singapore. Through the background economic of Malaysia, the largest deposits of tin in the 1840s led to Malaysia is being responsible for nearly half of the world’s tin output. Started in the early 20th century, the booming of the country’s agricultural sector is being seen that the rubber is replacing tin as Malaysia main export product. Today, Malaysia is one of the largest exporters of semiconductors and electronic goods. The factories devote about 30% Malaysia’s total manufacturing sector output and there are 40 semiconductor companies operating in Malaysia. By the time, the International multi-national companies have set up assembly and testing units in Malaysia. The important reserves of oil and gas are founded. The oil production occurs near Peninsular Malaysia as well as the regions of Sabah in east Malaysia ad Sarawak. Natural......

Words: 4350 - Pages: 18

Free Essay

The Economy of the Philippines and Its Neighbors: Indonesia and Malaysia

...The Economy of the Philippines and Its Neighbors: Indonesia and Malaysia By Larry Gulley In Partial Fulfillment of Requirements for MGMT 220: Individual Project 3 AIU June 30, 2012 Abstract The economy of the Philippines, as well as that of its neighbors, Indonesia and Malaysia, has weathered some rough patches. This area of the world has not lived up to its potential in spite of its naturally rich resources. But they are showing improvement, especially Malaysia. These countries compete with tourism and the services area. They also have strengths in agriculture and manufacturing. Table of Contents Economy of the Philippines Speaker Notes……………………………………………...1 Introduction………………………………………………………………………………4 Economy of the Philippines…………………………………………………………....4 Economy of the Philippines 2012……………………………………………………..4 Philippines Economic Strengths………………………………………………………4 Economy of Indonesia………………………………………………………………….5 Economy of Indonesia 2012…………………………………………………………...5 Indonesia Economic Strengths………………………………………………………..5 Economy of Malaysia…………………………………………………………………...6 Economy of Malaysia 2012…………………………………………………………….6 Malaysia Economic Strengths…………………………………………………………6 Impacts of Economic Strengths………………………………………………………..7 Investing in the Philippines: Management Issues……………………………………7 Investing in the Philippines: Management......

Words: 1268 - Pages: 6

Premium Essay

Paper

...of each segments the PESTLE country analysis provides an in depth analysis of 50 major countries This classification is distinguishes between PESTEL mainly contains following points :  Political factors  Economic factors  Social factors  Technological factors  Environmental factors  Legal factors FEATURES OF PESTEL ANALYSIS OF MALAYSIA  Get trend and forecast of real GDP growth rate of Malaysia.  Get trend of consumption expenditure in percentage of GDP in Malaysia.  Research and development factors of Malaysia.  Technological factors of Malaysia.  Get trend of growth of population rate in Malaysia.  Get trend of unemployment rate in Malaysia.  Get trend of savings and consumption as well as investment and expenditure in percentage in GDP of Malaysia. BENEFITS OF PESTEL ANALYSIS IN MALAYSIA  Political section on Malaysia provides get the information about the whole political system governors indicators and all key figures in the country.  From economic section we get all outlines of the economics stories of the country and is provides balanced between assessments on core macro economical issues.  In social section of Malaysia country it enables understanding of consumer demographics by the income distribution, rural market and urban market segmentation health care and education scenario in country.  Technological section provides all strategies information...

Words: 7955 - Pages: 32

Premium Essay

Oil and Gas

...Value Chain of the Oil and Gas Industry Main Suppliers Production: Top Natural Gas Producers -Russia -Canada (Sands) -Iran*** -Norway -Algeria -Indonesia -Saudi Arabia -Turkmenistan -Malaysia Production: Top Natural Gas Producers -Russia -Canada (Sands) -Iran*** -Norway -Algeria -Indonesia -Saudi Arabia -Turkmenistan -Malaysia Production: Top Oil Producers * Saudi Arabia * Russia*** * U.A.E * Canada * Venezuela * Kuwait * Nigeria * Mexico * China * Iran Production: Top Oil Producers * Saudi Arabia * Russia*** * U.A.E * Canada * Venezuela * Kuwait * Nigeria * Mexico * China * Iran Oil (*** top producer) Natural Gas (*** top producer) OPEC: Organization of the Petroleum Exporting Countries- aim in the oil and gas industry is to shift the bargaining power from the large oil companies to the producing countries Member Countries: Algeria, Angola, Ecuador, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, United Arab Emirates, Venezula OPEC: Organization of the Petroleum Exporting Countries- aim in the oil and gas industry is to shift the bargaining power from the large oil companies to the producing countries Member Countries: Algeria, Angola, Ecuador, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, United Arab Emirates, Venezula Preference Major Competitors IOC’s (Integrated Oil Companies)- companies......

Words: 549 - Pages: 3

Premium Essay

Strategic Management on Sapura Kencana Petroleum Berhad

...services and it is difficult for a competitor to imitated. Core competencies are what give a company one or more competitive advantages, in creating and delivering value to its customers in its chosen field (Anonymous). According to Fred (2013), core competencies define as a value chain activity that firm performs especially well. When a core competence evolves into a major competitive advantage, it will turn into distinctive competence. Core competencies may include any combination of skills, technologies, processes, knowledge or expertise and are often achieved as a result of long-term development processes and/or experiences (Mayhew, 2010). Competitive advantage on the other hand is defined as a measure relative to rivals in a given industry. Competitive advantage happen when a firm can do something that rival firm cannot do, or owns something that rival firm desire (Fred, 2013). For example, Nestlé core competency is food and beverages that is full with nutrition, health and wellness. By defining own core competencies and SWOT (strength, weaknesses, opportunity and treats) the company will be able to focus on its organisation uniqueness. In this study, I will focus on the core competency for Company SapuraKencana Petroleum Berhad. This study is organised as follows; section 2.0 will be informing the background of SapuraKencana Petroleum Berhad. Section 3.0 is regarding SapuraKencana Petroleum general environment analysis which divided into five broad categories; economic......

Words: 3420 - Pages: 14