Oil production in Malaysia 2013-2022

In 2022, Malaysia produced approximately 567 thousand barrels of oil per day, a decrease from 622 thousand barrels of daily oil production capacity in 2020. Although the amount of oil production in the country has been declining since 2020, Malaysia was still the fourth biggest oil producer among countries in the Asia Pacific and the second biggest in Southeast Asia after Indonesia.

A decrease in oil consumption during the pandemic

The oil industry in Malaysia faced a considerable challenge during the COVID-19 pandemic, with a decrease in overall oil consumption by more than 100 thousand barrels per day in 2020. Moreover, because of the government-imposed movement control order (MCO), which lasted until the end of 2021, people also consumed less gasoline than before the pandemic. Although industry players remained cautious, demand was expected to pick up with the end of the MCO, and most business activities have resumed to normal.

Higher oil price provides positive outlook

Despite the challenges because of the pandemic and the uncertain geopolitical situation with the Russian invasion of Ukraine, brent oil price increased by 40 percent in 2022 and closed at nearly 90 U.S. dollars per barrel as of the third week of January 2023. This could be beneficial for the oil industry in Malaysia, and the state-owned oil and gas company, Petronas, planned to focus on its upstream sector to reflect the industry’s outlook.