Table 2 shows that the contribution of
crude oil in energy supply dropped from 61.1% in 1990 to 38.2% in
2008 after the implementation of fuel diversification strategy. On
the other hand, natural gas has become the main contributor of
final energy consumption with 43.4% of total energy supply in
2008. The primary energy supply were natural gas 43.4%; crude oil
38.2%; coal 15.3% and hydropower 3.1% in 2008. Crude oil is no
longer seen as a feasible source of energy supply in Malaysia due to
its fast depleting supply. Nowadays, crude oil is mainly used as a
backup supply for emergency [9]. Crude oil and natural gas still
dominated the energy supply in Malaysia and are expected to
continue to play a major role in primary energy mix. However, the
burning fossil fuel like crude oil and natural gas may totally
exhaust in one day. Besides, it will raise the climate change issue
and significantly contributes to greenhouse gas emissions. Both of
these issues are of major global environmental concerns that will
have disastrous impact on the socio-economic development in
Malaysia.