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In 2024, Malaysia produced approximately ** barrels of oil per day, a decrease from ** barrels of daily oil production capacity in 2023. 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 ** 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.

Lower oil price but outlook remains positive

The brent oil price peaked in September 2023 at U.S. dollars and decreased to U.S. dollars per barrel as of the second week of November 2024. This could have an impact on the oil industry in Malaysia. Nevertheless, the state-owned oil and gas company, Petronas, planned to focus on its upstream sector and continue its exploration initiatives to expand the industry.