Malaysia has been strongly regarded as a fossil fuel-based economy due to its large reserves of natural gas and its large exports of this fuel to finance the country. As mentioned, the oil and gas industry contributes about a fifth of Malaysia's GDP and makes up 76% of the energy sector, as Malaysia ranks as the 3rd largest exporter of liquefied gas, exporting almost 10% of global supply (in 2017). Therefore, it is evident that Malaysia relies on oil and gas activities as a large source of income, and that this is expected to increase due to its current financial situation. It is reported that PETRONAS has contributed approximately $200 billion over the past four decades. This can be seen in Figure 2, where Malaysia is the 2nd largest oil exporter in Southeast Asia, making the country dominant in LNG trade within that region, apart from Indonesia. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get an original essay From a green economy perspective, this is dangerous as Malaysia relies heavily on the export of a resource whose availability is ultimately limited. Furthermore, this abundance of fuel in Malaysia has externalities, such as encouraging high fossil fuel use in the transportation sector. In addition to indirectly leading to more CO2 emissions, this trade also damages aquatic ecosystems through oil spills. Between 1976 and 1997 alone, 55,000 tonnes of oil were spilled into Malaysian seas. Not only is it physically and economically difficult to clean up, but PAHs can cause development problems and increased vulnerability to disease for wildlife. However, the level of oil-related activity in Malaysia is expected to decline. The gradual collapse of Malaysia's oil and gas industry could encourage the development of alternatives for energy use. In terms of 2018 and beyond, PETRONAS' revenues are expected to decline due to the downward trend in oil prices, starting from June 2014. PETRONAS is expected to produce 100,000 fewer barrels over the next five years, as predicted by prices of crude oil ranging from US prices of 50-60 dollars per barrel. As the amount of oil collected decreases, costs increase due to overcapacity of “resources such as producers and marine support vessels. ” As a result, PETRONAS' spending on capital expenditure decreased by 30%. Therefore, this gives Malaysia incentives to push development towards options such as long-term forms of renewable energy, a step towards a sustainable economy. This is due to the volatility of the direct effect of oil prices on the Malaysian Ringgit. When it were to fall, its decline in contribution to GDP would weaken the Malaysian economy to the point where a "prolonged devaluation" of its currency occurs. Please note: this is just an example. Get a custom paper from our expert writers now. Get Custom Essay While the government may currently need to increase its dependence on oil revenues, decoupling from oil price pressure on the Malaysian economy will be pragmatic for long-term stability; this could lead to the maximization of Malaysia's renewable energy potential and a significant reduction in environmental costs arising from oil-related activities.