Othman, Jamal and Jafari, Yaghoob (2011): Accounting for Depletion of Oil and Gas Resources in Malaysia.
Download (541kB) | Preview
This paper provides an assessment of the changes in the availability of oil and gas resources in Malaysia. The physical and monetary balance sheets for crude oil and natural gas for the period 2000- 2007 was constructed. The net present value of expected future incomes to reflect the value of resource change was calculated based on a physical extraction and a resource rent scenario. Resource rent is gross operating surplus less the estimated user cost of produced capital in the crude oil and natural gas extraction industry. We obtained the gross operating surplus by subtracting the value of consumption of employees and net taxes on production cost from the value added of petroleum domestic products. Our findings noted serious reduction of oil reserves from 2001 – 2005, due to changes in crude oil prices, and thereafter the depletion rate decreased. Malaysia has depleted her natural gas reserves mainly in 2004 and 2005. Changes in reserves values were attributable more to price changes and new discoveries. Further, our study shows the royalty rate paid by the state oil company was far less than the estimated resource rent.
|Item Type:||MPRA Paper|
|Commentary on:||Othman, Jamal and Jafari, Yaghoob (2011): Accounting for Depletion of Oil and Gas Resources in Malaysia.|
|Original Title:||Accounting for Depletion of Oil and Gas Resources in Malaysia|
|English Title:||Accounting for Depletion of Oil and Gas Resources in Malaysia|
|Keywords:||Sustainability; Environmental Accounts and Accounting; Malaysian Oil and Gas Depletion|
|Subjects:||Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q5 - Environmental Economics
Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q5 - Environmental Economics > Q56 - Environment and Development ; Environment and Trade ; Sustainability ; Environmental Accounts and Accounting ; Environmental Equity ; Population Growth
|Depositing User:||Jamal Othman|
|Date Deposited:||27 Feb 2011 06:40|
|Last Modified:||17 Nov 2016 07:06|
Annual national accounts, Gross Domestic Products, Malaysia. Department of Statistics, Malaysia, various years.
Berg, A. van den, and P. van de Ven (2001). ‘Valuation of Oil and Gas Reserves’. European Commission, Eurostat Working Paper No. 2/2001/B/3.
Department of Statistics, Malaysia (2005). Distribution and Use of Income Accounts and Capital Accounts, Malaysia.
Edens, B. and I. Di Matteo (2007). ‘Classification Issues for Mineral and Energy Resources’. Presentation for the 11th London Group Meeting, Pretoria South Africa. 26-30 March 2007.
E.Veldhuizen and et al (2009). Valuation of Oil and Gas Reserves in Netherlands, 1990-2005.
Malaysia Mining Report (2009). Available at Http://www.researchandmarkets.com/ reports/ 1071180 United Nations, EC, IMF, OECD & World Bank (2003).
Integrated Environmental and Economic Accounting - A Handbook of National Accounting. Studies in Methods, Series F. No. 61
Petroleum and Natural Gas Statistics, Malaysia. Department of Statistics, Malaysia (various years)
Pommée, M. (1998), ‘Measurement and Valuation of Gas and Oil Reserves in the Netherlands’, National Accounts Occasional Paper Nr. NA-088, Statistics Netherlands.
Repetto, R. and others (1989). Wasting Assets: Natural Resources in the National Income Accounts. World Resources Institute.
CCOP Technical Secretariat (1999). The CCOP Petroleum Resource Classification. CCOP Secretariat, Bangkok. US. Energy Information Administration, available at http://tonto.eia.doe.gov/ country /country_time_series.cfm? Fips=MY
Vincent, J. R. (1997). "Resource Depletion and Sustainability in Malaysia". Environment and Development Economics, Vol. 2, Part 1, 19-37.
World Bank Database on GDP deflator, available at http://data.worldbank.org/ indicator/ NY.GDP.DEFL.KD. ZG
Year book of Statistics Malaysia, Department of Statistics, Malaysia (various years)
Zainul, A.J. et al (1997). An Integrated Approach to Petroleum Resources Definitions, Classification and Reporting. Reprint from 1997 SPE Asia Pacific Oil and Gas Conference, Kuala Lumpur. Society of Petroleum Engineers, Inc. SPE 38044
- Othman, Jamal and Jafari, Yaghoob Accounting for Depletion of Oil and Gas Resources in Malaysia. (deposited 27 Feb 2011 06:40) [Currently Displayed]