|The oil and gas sector
has a considerable impact on the economy – the sector
attracts by far the highest level of foreign direct investments
in the country, and raises significant tax income for the government.
Pakistan has an interesting Geo-dynamic history of large and
prospective basin (onshore and offshore) with sedimentary area
of 827,268 sq. km. So far about 844 million barrels crude oil
reserves have been discovered of which 535 million barrels have
already been produced. A Prognostic potential of total endowment
of hydrocarbons has been estimated as 27 billion barrels of
oil and 282 trillion cubic feet of gas. Up till now over 620
exploratory wells have been drilled by various national and
international exploration and production companies, resulting
in over 177 oil and gas discoveries. Indigenous production of
crude oil during the year 2004-05 was 66,079 barrels per day.
Pakistan is among the most gas dependent economies of the world.
About 52 TCF of gas reserves have been discovered of which 19
TCF have already been produced. Natural gas production during
2004-05 was about 3.7 billion cubic feet per day. Pakistan has
well developed and integrated infrastructure of transporting,
distributing and utilizing natural gas with 9,063 km transmission
and 67,942 km of distribution and service lines network developed
progressively over 50 years.
|Energy Balance Petroleum
products and natural gas account for about 70 percent
of commercial energy use, hydroelectricity for about 15
percent, and coal and liquefied petroleum gas (LPG) for
the balance. Over the past three years, imports of liquid
fuels were about 8 million tons (MMT) per annum, resulting
in an import bill of some US$6 billion. On the other hand,
gas reserves at 27.0 trillion cubic feet (TCF) are equivalent
to more than 25 years of current production (about 900
billion cubic feet [bcf] per annum), and there is scope
for a significant increase in gas production.
The transport sector is the largest user of petroleum
products (61.5 percent), followed by power generation
(23.5 percent) and industry (10.5 percent), and the balance
largely by the residential sector. In the case of natural
gas, sectoral consumption during 2004-05 was: power (43.7%),
fertilizer (16.4%), cement industry (1.2%), general industry
(19.5%), domestic (14.8%), commercial (2.3%) and Transport