Time Of Easy, Cheap Oil Over

A large percentage of Brunei’s oil and gas reserves is trapped in mature/marginal reservoirs, which are increasingly more difficult and more expensive to produce.

We must plan in a prudent manner guided by the reality that the time of easy and cheap oil has now passed.

Brunei Minister of Energy Pehin Dato Awg Hj Yahya bin Begawan Mudim Dato Paduka Haji Bakar said this in his speech at the Joint BSP, BLNG, BSM and BST Directors Night 2006 on Saturday night at the ICC.

Asking everyone to shun the belief of “bottomless well”, the minister said the public and private sector can no longer take it for granted that it’s “business as usual”.

“Without discovery of new reservoirs with large volumes that can be produced at a low cost, we would not be able to lower the current high average cost of production even if the required state-of-the-art technology and expert resources are available,” he said.

BruneiDirect