New research by DNV GL, the technical advisor to the oil and gas industry, has revealed that confidence in growth in the Malaysian oil and gas sector has tumbled since 2014, from 96 per cent to 21 per cent, with tough, short-term, cost-cutting efforts expected to increase in 2017.

Diversification will be a hallmark of 2017, with 49 per cent of those surveyed looking to increase investment in, or diversify into, areas beyond oil and gas.

Thirty-seven per cent of senior oil and gas professionals in Malaysia are actively looking for new gas projects as a result of falling oil prices, compared to 31 per cent globally. However, the Malaysian respondents’ views on renewable energy investment in 2017 are divided, with 49 per cent expecting it to decrease while 44 per cent expect it to rise or stay the same.

Short-term agility, long-term resilience is DNV GL’s seventh annual benchmark study on the outlook for the oil and gas industry, providing a snapshot of industry confidence, priorities and concerns for the year ahead. It draws on a survey of 723 senior sector players 1 .

Hernando Caceres, Country Manager Malaysia, DNV GL – Oil & Gas, says: "The sector is bracing itself for a tough twelve months, with deeper cuts in spending and jobs expected. However, there are signs that industry leaders are taking long-term action to reorganize for a new era.