National Economy
The population of Negara Brunei Darussalam (Brunei) is approximately 0.45 million people[1]. In 2020, 100 % of the people in this country located on the north coast of the island of Borneo in Southeast Asia had access to electricity[2].
In 2021, Brunei’s economy was ranked 131st in gross domestic product (GDP) in the world[3]. The country’s economy is dependent[4] on the export of natural gas, refined petroleum, crude oil, cyclic hydrocarbons, and coal tar oil.
Environment Policies
In 2016, the Brunei signed the Paris Climate Agreement, committing[5] to reduce total energy consumption by 63% by 2035, compared to business-as-usual levels; and to increase the share of power generated by renewables by 10% by 2025.
In 2020, the two utilities in Brunei used coal (49.6 % ), natural gas (47.3%), and oil (2.7 %) to generate electricity across the country[6].
In 2021, Brunei Energy Minister Awang Haji Mat Suny bin Haji Md Hussein announced that renewable energy would generate 30% of the nation’s electricity by 2035.
Recent renewable energy projects in Brunei include:
- 3 MW Solar Project – In April 2021, Brunei Shell Petroleum commissioned the BSP Flagship Solar PV Plant at a site approximately 45 miles southwest of the nation’s capital, Bandar Seri Begawan.
- 30 MW Solar Project – In February 2022, Brunei Energy Minister launched a tender to invest, build, and operate a solar photovoltaics power plant on a remediated landfill.
Conclusions
Commercial oil first was discovered in Brunei[7] in 1929, approximately 55 mils southwest of the nation’s capital, Bandar Seri Begawan. In 2021, the Brunei was the 21st largest natural gas[8]and 30th largest crude oil[9] exporting nation in the world.
Export of oil, and natural gas has been the foundation of Brunei’s economy. In 2020, Brunei exported[10] U.S. $2.38 Billion in liquified natural gas, U.S. $1.78 Billion in refined petroleum, U.S. $1.47 Billion in crude oil, U.S. $959 Million in cyclic hydrocarbons, and U.S. $163 Million in coal tar oil.
On 24 February 2022, Russia invaded Ukraine, prompting in the United States, Canada, and the European Union to place embargos on Russian exports, including fossil fuels. As a result, the price for crude oil and liquified natural gas have both increased by over 50% from May 2021 to May 2022.
Brunei has significant undeveloped renewable energy resources, including solar, onshore wind, offshore wind, and biomass. The government of Brunei intends to dramatically increase use renewable energy to reduce greenhouse gas emissions and to preserve the nations most valuable resources, natural gas and oil.
The rise in the global oil and natural gas prices will allowed Brunei to accelerate the development of new renewable energy projects to provide clean, green electricity across the seven emirates.
Renewable energy is now Brunei’s future.
Jack Kerfoot
Website – “Our Energy Conundrum”
www.jackkerfoot.com
Jack Kerfoot is a scientist, energy expert, and author of the book FUELING AMERICA, An Insider’s Journey and articles for The Hill, one of the largest independent political news sites in the United States. He has been interviewed on over 100 radio and television stations from New York City to Los Angeles on numerous energy related topics.
[1] Brunei Population (2022) – September 17, 2022, www.worldometers.info
[2] World Bank, Access To Electricity (% Population) – Brunei
[3] Gross Domestic Product By Country 2021 – Worldometer
[4] The Observatory of Economic Complexity – Brunei
[5] Carbon Brief “Paris 2015: Tracking Country Climate Pledges”
[6] Our World In Data, Brunei: Energy Country Profile by Hanna Ritchie and Max Roser
[7] Petroleum Authority of Brunei Darussalam, August 22, 2022
[8] Natural Gas – Exports – The World Fact Book – CIA
[9] Crude Oil – Exports – The World Fact Book – CIA
[10] The Observatory of Economic Complexity (OEC) – Brunei Exports