penasakinah

Oil Prices - Why Malaysia as Oil Producers in contrast to Arab countries

Let us compare the results of our country's oil output by another. Malaysia produces 623.900 barrels of oil per day, while Saudi Arabia produces 11.1 million barrels a day. Almost 17 times the product side. After rejecting the use of domestic fuel for both countries, is the result of overall exports to Malaysia 18,900 and 8,534,260 barrels of Saudi Arabia, once again, this huge gap. Of course with a greater profit, Saudi Arabia is able to decrease the price of oil to levels that are lower than ours.

State Oil Revenue Distribution

The oil our country is not used solely for fuel subsidies alone. It should be noted that the results of Petronas profits have accounted for 40% of the total national budget. In the state budget, the allocation given to the construction of new hospitals and the maintenance of existing hospitals, subsidies for vehicle fuel and cooking oil, sugar, schools, roads and others. Of course we can use all of the country's oil revenue to lower oil prices as equivalent to Arab countries. But are we willing to sacrifice their allocations for basic needs such as roads and schools?

Some say with confidence that the country's oil revenue only from crony. To my knowledge, most of the people who benefit from national budgets are civil servants who earn. Are, women and food traders cronies? Do doctors, teachers and civil servants cronies? Is our military who sacrifice their lives to defend the sovereignty of our country in Lahad Datu cronies?

Petronas profit increase. Why not use declines in oil prices?

Some may wonder why the Towers profit rose sharply, oil prices do not fall? First of all, for Petronas profits rose sharply beginning in 2008 is due to higher market prices for oil. The sharp increase in profit also experienced international oil companies such as Shell and Exxon Mobil. At the same time, contributions by Petronas on the national budget has been increased. A total of £ 67 billion has been contributed over £ 54 billion in 2007.

It should be noted that Petronas is the company and not all thankfully can be allocated to subsidies alone. As we all know, the country's oil resources will not last for long and may be exhausted by 2025 and therefore, the government has taken initiatives to reduce dependence on oil revenues. This is important so that we do not happen like Russia where oil company Gazprom, which when high oil prices to spend lavishly to buy a media company and so on. Immediately world market oil prices plummeted, Gazprom and the Russian financial crisis had economic challenges as far rely only on oil exports.

With the status of the United States that will soon become the world's largest oil producer, will make prices more stable world oil market and thus profit Petronas and other oil companies will not be at a high level as 2008. Of course that Malaysia can not be depending on the results of its own oil as a subsidy. If we spend beyond our means and Petronas for oil subsidy equivalent to Saudi Arabia, this will lead to problems in the future.