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Days Of Cheap And Easy Oil Are Over
By Azlan Othman in Singapore

Bandar Seri Begawan - Brunei's Minister of Energy at the Prime Minister's Office yesterday called oil the lifeblood of Brunei Darussalam and hence it matters very much how well the country manages these valuable resources.

"It isn't a question about choice or option, rather it is a question of survival," said Pehin Dato Seri Setia Awg Haji Yahya as he delivered his presentation on "Managing Energy Resources in an Energy Scarce World" at the Institute of Southeast Asian Studies (ISEAS) in Singapore during the second day of the Brunei Forum.

Also present was Princess Mansurah Izzul Bolkiah.

"It is not easy to bring out oil from the ground. The days of cheap and easy oil are not here anymore," said Pehin Dato Hj Yahya.

"Many reservoirs are no longer using the primary drive to move the oil to the surface. Many arc now using secondary or tertiary recovery methods to extract the extra molecule of hydrocarbon (oil

and gas) from the formation.

"The secondary and tertiary recovery methods are obviously expensive, risky and have a much longer gestation period. Many oil companies have also gone into high-pressure and high-temperature areas again at a cost and risk very much steeper than before," he said.

Pehin Hato Hj Yahya added that oil and gas are not just the energy source for Brunei, they are the main source of almost everything— from a source of export earning, income, employment, government revenue and investment opportunities.

For a comparison, the minister took the example of the petroleum sector's share in Norway's GDP, which is 25 per cent compared to Brunei's 69 per cent; 38 per cent in state revenue compared to a whopping 94 per cent for Brunei; 24 per cent in total investment compared to 74 per cent for Brunei; and 51 per cent in total exports compared to 96 per cent in Brunei.

He also highlighted ways in which Brunei manages these energy resources.

"Firstly, every hydrocarbon molecule matters. We have to obtain maximum value for these resources. We cannot allow utilisation of these resources that doesn't bring maximum return or benefits. And wasteful consumption of these resources must not be permitted at all.

"The second principle is change matters. A lot of things need to be changed, particularly the high-energy consumption lifestyle and wastage. The third one is more of a vision and mission statement, `sustainable future beyond oil and gas'," he said.

He also highlighted the current policies and regulations that are being practised in Brunei. He said since the beginning of the discovery of oil, the government has been mindful and conscious about the exhaustibility of the resources.

Therefore, a conservation policy was actively pursued while the oil production level was still on the rise. This policy is designed to ensure the lives of the reserves are prolonged without compromising the current requirement of the country. Currently, it is capped at 200,000 barrels per day, said the minister.

He also spoke about the restrictions on the sale and export of refined oil products in the country to bring about a more controlled usage of these resources. He pointed out measures that have been taken to stave off excessive consumption of energy resources via promoting energy efficiency and conservation.

"This would mean a change from our high-energy consuming lifestyle to a low-energy consuming lifestyle. A softer option to help stave off consumption is through campaign and public awareness. It is the first crucial step about change," he added. -- Courtesy of Borneo Bulletin

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