DESCRIPTION OF SITUATION

Chemical engineering is a branch of designing that applies physical sciences

(physical science and science) and life sciences (microbiology and natural
chemistry) together with connected arithmetic and economics matters to create,
change, transport, and appropriately utilize chemicals, materials and vitality.
Basically, chemical engineers plan substantial scale forms that change over
chemicals, crude materials, living cells, microorganisms and vitality into helpful
structures and items.
Chemical designers "develop economic ways of using materials and energy".
Chemical engineers utilize science and building to transform crude materials into
usable items, for example, prescription, petrochemicals and plastics on a substantial
scale, modern setting. They are involved in waste administration and research. Both
connected and research aspects could make broad utilization of computers.

A chemical engineer might be included in industry or college scrutinize where

they are entrusted in outlining and performing analyses to make new and better
methods for creation, controlling pollution, preserving assets and making these
procedures more secure. They might be included in planning and developing plants
as a venture build. In this field, the Chemical engineers uses their knowledge in
selecting plant equipment and the optimum method of production to minimize costs
and increase profitability. After its development, they may help in overhauling its
gear. They may likewise be included in its day by day operations. Chemical
engineers might be for all time utilized at chemical plants to oversee operations. On
the other hand, they may serve in an expert part to investigate issues, oversee
handle changes and generally help plant administrators.

The Malaysian economy momentum, driven by resilient domestic demand

and the improving external sector. The Ministry of Finance (MOF) said Gross

Domestic Product (GDP) growth is expected to expand at a steady pace of between

5% and 6% given the better global economic outlook and underpinned by the 2015
Budget measures. However, there remains downside risk on the external front,
including slow and uneven growth in the euro area, increased deflationary pressures
in the advanced economies, slower growth in emerging markets, as well as,
geopolitical tensions. On the demand side,the growth would be private sector
driven, building on the success of initiatives taken by the government over the
years to provide a conducive environment for private economy to thrive. The
Treasury said private investment would remain vibrant and was expected to register
double-digit growth supported by the ongoing implementation of the 10 Malaysia
Plan, Economic Transformation Programme (ETP) and Government Transformation
Programme (GTP).

Engineering economics , beforehand known as engineering economy, is a

subset of financial matters for application to building ventures. Engineers look for
answers for issues, and the economic practicality of every potential arrangement is
typically considered alongside the specialized angles. Generally, engineering
economics aspects includes detailing, assessing, and assessing the monetary
results when other options to finish a characterized reason for existing are
accessible.

Global oil and gas production has grown by approximately 1.5 percent per
year in the last decade, driven by robust demand in OECD countries and rapidly
rising demand from developing economies, notably China and India. According to
the International Energy Agency the global growth outlook for 2010 to 2020 for both
oil and gas demand will shift further to developing economies in this decade. While
green policies and de-carbonisation are taking place, especially in developed
economies, any impact on oil and gas demand is not expected to be marked until
the end of the decade. Demand for gas, especially, may actually benefit in the near
term, as natural gas is both plentiful and green vis--vis other fossil fuels. Global oil
and gas supply capacity jumped ahead of demand during the financial crisis of 2008

and 2009. This created a temporary but significant price dip in oil prices and
enduring turmoil in global gas markets. The ongoing volatility in gas markets has
been exacerbated by significant supply additions in the USA from domestic
production of shale gas. A tighter balance of supply and demand is expected in both
oil and gas by the middle of the decade, as demand growth catches up with supply
infrastructure. In the last decade, growth in the upstream sector in Malaysia has
been driven more by rising prices in oil and gas than by increases in production.
PETRONAS international expansion has also contributed to Malaysias GNI.
Malaysian oil production peaked in the mid 1990s at approximately 600,000 barrels
per day, as shown in Exhibit 6-2 below. This is due to the normal maturation of the
traditional shelf basins and means that most of the economically attractive fields
are likely to have been found and developed, and new discoveries are more likely to
be smaller and more technically demanding than those that were developed earlier.

This involves extending the lifecycle of existing resources by optimising

exploration, development and production activities. Three EPPs have been
identified: EPP 1: Rejuvenating existing fields through enhanced oil recovery, EPP 2:
Developing small fields through innovative solutions and EPP 3: Intensifying
exploration activities.