Brunei's small, wealthy economy is based heavily upon proceeds from exports of crude oil and natural gas. Revenues from the hydrocarbons sector account for nearly half of gross domestic product (GDP), around 90 percent of merchandise exports, and 80 percent of government revenues. Brunei consumes little energy domestically, and is a sizeable net exporter of oil and natural gas. However, the country’s hydrocarbon reserves have declined over the last several decades.

The bulk of Brunei’s domestic energy consumption comes from natural gas, while the balance is met by oil. As oil and natural gas reserves are further depleted, there may be some pressure to diversify the country’s energy consumption mix.