Brunei: Days Of Cheap And Easy Oil Are Over

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 is not easy to bring out oil from the ground. The days of cheap and easy oil are not here anymore,” 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.

“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.

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.

Brudirect