Malaysia warns of threat to energy supply

The world could be in for another oil price shock in the future as a result of under-investment in the oil and gas industry, Prime Minister Datuk Seri Abdullah Ahmad Badawi said.

“In the current environment of sharply reduced liquidity, lower demand and lower prices, companies have far less incentives to invest in new energy supplies,” he said at the opening of the three-day International Petroleum Technology Conference yesterday.

The most recent oil shock ended in July this year, after the price of oil traded in New York touched a record US$147 (RM535) a barrel.

Surging oil prices had driven oil companies to boost exploration, leading to a boom in the sector. It has since fallen to about US$49 now.

Abdullah outlined three key challenges facing Malaysia, which must be undertaken to secure a sustainable future for the oil and gas industry.

“I believe that itwill be critical for the industry to place greater emphasis on energy security through partnerships, technology investment, and human capital development.” He added that national oil companies and their international counterparts like ExxonMobil or Shell must find new ways to work together.

The industry must also continuously invest in technology and work with learning institutions to produce the necessary workforce.

by Kamarul Yunus- NST