Malaysia Energy Option - Part 1

During the past 50 years, global coal usage has doubled, while oil demands has risen sevenfold and natural gas usage more than tenfold. Fossil fuels such as coal, natural gas, petroleum, oil shale and tar sands won’t last forever and eventually they will be exhausted.

“Malaysia's leader warned of a global crisis over the tussle for energy resources amid declining supply, and urged major oil producers and consumer nations to jointly develop new resources. The growing demand for depleting oil and gas resources is likely to trigger more intense competition to gain access and control over these resources” (“PressTV website”, June 2006).

Malaysia is an oil exporter, but if we do not find new oil reserves, then in the near future we will become a net importer, this means we cannot continue to lean on the oil sector. Also, the price for fossil fuels has gone up drastically in the recent years. We are too dependent on fossil fuels which mostly are imported for our energy supply.

According to The Star on the date 20^th September, 2008, Malaysia will turn to nuclear energy to generate electricity by 2023 as supplies of fossil fuel eventually run out. Energy, Water and Communications Minister Shaziman Mansor said,” the use of nuclear energy was also an alternative to counter high global oil prices. The increase in coal prices had been exceptional and we need to act now”.

“The government would look at alternative energy sources, including nuclear power, to help the nation reduce its reliance on oil, which has hit nearly US$140 a barrel on global markets. The government hiked fuel prices this month by 41 percent, saying the deeply unpopular move was needed as subsidies would have ballooned to US$17 billion this year” (“The China Post Website”, 2008, paragraph 2).

The Malaysia’s national energy situation is that the country is lacking of available competitive, sustainable alternative commercial energy sources for the long-term, especially beyond 2020. Thus there is a need to enhance national energy security due to depleting local resources.