Crude oil determines
inflation and also determines the GDP of an oil exporting
nation. In more advance economics as discussed earlier, oil is
used for investments i.e. trading of commodity futures.
Irrespective of the current market price, futures are locked
at a higher price being traded on the New York Mercantile
Exchange (or NYMEX), as well as the International Petroleum
Exchange. Speculation that who trade large volumes can easily
swing the price higher. This gives an indication to the oil
exporting nations where the price of oil should be, hence cuts
current supplies and for future sale to obtain a higher price.
This is also an indication that trades would not want the
price to drop from current levels..........
PAGE TOP STORIES
& PAGE SPECIAL REPORTS
SUCCESS STORY OF BRANDS OF THE YEAR
INTERVIEW: SHAIKH RASHID ALAM, CEO BRANDS FOUNDATION
is noted with interest that although the brands undertake good
amount of advertising at all level but we are unable to
develop brand mindset (consumers’ mentality) in Pakistan.
Majority of Pakistani consumers are unable to sensibly
differentiate among, high value brands and unbranded products.
Therefore, companies offering branded products and services
should make objective efforts to educate and develop the brand
mindset of consumers. Companies should pay more attention to
marketing and brand equity development rather than the sales
INTERVIEW WITH MR ABBAS BILGRAMI, MEMBER ENERGY EXPERT GROUP
The Thar coal potential
has been talked about ad nauseum for the past three decades.
Pakistan is blessed with this and many other energy resources.
However, talking about a resource and to develop the necessary
enabling environment and then to develop the means of
converting this resource into energy is another matter. If
words were enough Pakistan would not be suffering an energy
shortage of epic proportions. Whether these coal deposits are
more than the entire oil reserves of Saudi Arabia or whether
they can power Pakistan for the next 100 years is irrelevant
to the consumer or the energy economy when they suffer outages
of power for hours and sometimes days on end. The impact of
the energy crisis Pakistan faces is at least 3% of the GDP. Thar
coal is the largest energy resource in Pakistan today......
Minister of State for
Petroleum and Natural Resources, Jam Kammal Khan insisted on
the establishment of a National Energy Authority and demanded
the implementation and execution of policies and decisions
taken at different fora.
He was presiding the
first session of the Pakistan Energy Forum 2014 (6th session)
which was held in Islamabad last Thursday and was attended by
a large number of experts from energy sector and power, gas
and oil sector companies in addition to provincial energy
proposal was largely approved by the participants and thus
conference concluded with the recommendations for a one window
National Energy Authority......
INTERVIEW WITH MR MAHFOOZ URSANI, AN AUTHORITY ON CNG
In early years of CNG
establishment, it was a win-win situation. The producer,
consumer and the Government, all were happy with this
alternative cheap auto fuel. Within few years around 3,500 CNG
stations were established and millions of vehicles transferred
to CNG fuel throughout Pakistan. There was no projection or
issue of shortage of natural gas. In 2008, when government
changed led by Mr. Zardari and Mr Gilani, policies shifted
quickly. Shortages of gas, electricity, fertilizer and sugar
worsened. Generally, it was an era to create artificial
shortages to produce huge kickbacks and corruption.
Oil and gas exploration
nearly stopped, blaming the war on terror effect
on the country by the government. Very few new
fuel wells were connected to the supply lines
rather many were forced to stop production and
were sold to private parties.......
ECONOMY TO GROW AT 5 PERCENT IN 2014
The report released
by State Bank of Pakistan last week suggests that in order to
maintain the current growth momentum, and to take the economy
to a higher growth trajectory, the government should speed up
structural reforms in the fiscal and energy sectors. By
focusing on these sectors, the government has signaled that
its priorities are correct. The central bank urges the
government to sustainably manage long-standing issues,
which has kept growth below potential.
The First Quarterly
Report for FY14 on the State of Economy, said that since
macroeconomic indicators were favorable at the start of the
year, the increase in real GDP growth in FY14 was discernible........
INTERVIEW WITH MR MOHAMMAD ABBAS SAJID, CHIEF EXECUTIVE
Current gas shortage in the
country is largely due to mis-management during the last
several years, whereby no new gas exploration projects were
launched and the existing gas supply could not meet the
naturally increasing demand. The gas and energy policy of the
country should be closely reviewed by energy experts and not
politicians with their own motives. In my view, piped gas
supply to the domestic sector is the biggest mistake we have
made. No where in the world even in countries with huge gas
and oil deposits like Saudi Arabia, gas is not piped to the
domestic sector for burning. LPG is used for the purpose.........
DRY BULK MARKET FINDS
The dry bulk market,
hit by the low seasonal demand which is a typical
characteristic of the first quarter of each year, is beginning
to emerge from the shadows as of late. During the past few
days, the market's benchmark, the Baltic Dry Index (BDI) has
been on a slow, yet steady rise, ending recent session, once
again on the upside, reaching 1,250 points.
Capesizes were the
dominant force, with the respective Baltic Capesize Index
gaining 137 points on the last working day to reach 2,049
points. Panamaxes were still suffering, while the other two
the Supramax and Handysize ones, were
BUSINESS DYNAMICS OF THE CRUDE OIL MARKET
determines inflation and also determines the GDP of an oil
exporting nation. In more advance economics as discussed
earlier, oil is used for investments i.e. trading of commodity
futures. Irrespective of the current market price, futures are
locked at a higher price being traded on the New York
Mercantile Exchange (or NYMEX), as well as the International
Petroleum Exchange. Speculation that who trade large volumes
can easily swing the price higher. This gives an indication to
the oil exporting nations where the price of oil should be,
hence cuts current supplies and for future sale to obtain a
higher price. This is also an indication that trades would not
want the price to drop from current levels.
When investments are
pulled in oil futures, it gives a signal to the market that oil prices will
increase, which influences the price of oil........
LEATHER MANUFACTURERS’ EXPORTS UP IN FIRST 7 MONTHS
Leather manufacturers’ exports from the
country during first seven months of current financial year
increased by 11.61 percent and reached US$378.665 million as
compared to the exports of US$339.265 million in corresponding
period of last year. From July-January, 2013-14, leather
garments exports from country registered a growth of 10.76
percent about 705 thousand dozen of leather garments worth
$256.093 million exported against the 571 thousand dozen
valuing $231.206 million exported during same period of last
In 2014, global oil demand will be
higher than formerly predict, after consumption in US rebounded to its strongest
stage in 5-year. Economic adepts predicted that demand will boost by 1.2 million
barrels a day to 92.4 million a day coming year, increasing its projection from
November by 240,000 a day. USA fuel utilize increased over 20 million barrels a
day in November for the first time since 2008. While the IEA increased its
prediction for the crude volume OPEC will require to supplies while making room
for the possible return of Iranian exports could be a problem for other
producers in the group..........
ALTERNATIVE ENERGY OPTIONS AVAILABLE IN PAKISTAN
Over the past 30
years, one of the major players in the world is considered to
be Asia in term of high growth rate. China and India are
developing at a rapid pace, more rapidly than what anyone had
expected. Due to this, the demand of electricity is likely to
increase each year by 8% till 2015. With such increases in
demand along with the increase in prices, electricity would
have to be obtained from other renewable resources such as
solar energy and wind energy. Pakistan is in an ideal position
to be able to make use of these kinds of alternative sources
of energy as it has both in abundance...........
The supply and use of
CNG in the transportation industry has adversely affected the
economy. CNG was introduced for transportation in late 90’s to
counter the rise in price of oil, which caused inflation from
the supply side. The idea for CNG was to provide cushion to
the consumers specially the transportation network to keep the
prices low. As the price of fuel based on international oil
prices increased, the demand for CNG in the country also
increased. CNG kits were imported and sold at a premium where
licenses were issued to establish CNG pumps country wide those
who had the capital. The CNG industry thrived as a substitute
to petroleum. The government also hoped to reduce the oil
INDIA IN THE NEWS
PUNE: The Ministry of New and Renewable
Energy (MNRE) is promoting installation of solar systems in all buildings,
depending on the feasibility, willingness of users and availability of funds.
Under off the grid and decentralized
solar applications scheme of Jawaharlal Nehru National Solar Mission (JNNSM),
the ministry provides central financial assistance of 30% of the cost of solar
systems for installing solar PV and thermal systems at educational institutions,
hospitals, police stations, panchayats, jails, government guest houses,
community buildings, Anganwadis, orphanage etc.......
IN THE NEWS
Prime Minister Nawaz Sharif on Friday
said that the PML-N government was committed to empower youth by providing them
Rs 3.7 billion easy loans, as it would not only help the country but also
strengthen national economy, source said to research analyst-PAGE. Speaking at
the first balloting ceremony of PM Youth Business Loan Programe, the Prime
Minister said that in the past upto 70 percent of youth population had no access
to loans, as only the influential businessmen were eligible to get loans from
banks. He said the youth would lead the nation as in the developed countries 80
percent youth were playing their role in strengthening the economy..........
TEHRAN - New deposits
of crude oil and natural gas have been explored in central
parts of Iran, Hormoz Qalavand, an official at the National
Iranian Oil Company said. Statistics about the newly explored
reserves will be officially announced by the oil minister
soon, Qalavand added.
Iran is estimated to
hold 33.7 trillion cubic meters of natural gas and 157 billion
barrels of recoverable crude oil reserves. Iran is planning to
increase its oil production by an additional 1 million barrels
per day (mb/d) in 2014..
The Nokia X family features Nokia's
renowned handset quality and design, with a fresh, tile-based user interface
inspired by our Lumia family. All devices come with Fastlane, a screen which
lets people switch between their favorite apps more smoothly. People can access
curated, quality-tested apps from Nokia Store, more than a dozen third-party app
stores and by side loading.
Out of the box, they can enjoy signature Nokia experiences including free* HERE
Maps, with true offline maps and integrated turn-by-turn navigation, and Nokia
Mix Radio for free* music streaming and downloadable playlists......
WEEKLY COMMODITY RATES
EMPOWERING WOMEN IN BALOCHISTAN
Pakistan has a poor record when it comes to
women's rights. Under the anti-women practices like wanni or
budla-i-sulh, the women are traded like commodity and they are
given in forced marriages against their will to settle
personal, family or tribal disputes. These practices are
widespread in rural areas of Balochistan, Khyber Pakhtunkhwa,
Punjab and Sindh province where tribal and feudal system is
still very strong even women are not allowed to take share of
property in inheritance in these areas.........
According to a
newspaper report, since 2006 Pakistan has been making
unsuccessful attempts to import LNG. The country has already
entered into negotiations with Qatar for the import of LNG but
before that it needs to set up a terminal. Sui Southern Gas
Company (SSGC) and ETPL have already negotiated LNG Services
Agreement under which SSGC will pay US$0.66 per million
British thermal unit charges to ETPL.......
NET INCOME OF AL BARAKA BANKING GROUP GREW BY 10% TO US$ 258
MILLION IN 2013 AND BY 17% TO US$ 61 MILLION IN THE FOURTH
QUARTER OF 2013
Al Baraka Banking
Group is a Bahrain Joint Stock Company licensed as an Islamic
wholesale bank by Central Bank of Bahrain, listed on Bahrain
Bourse and Nasdaq Dubai stock exchanges. It is a leading
international Islamic banking group providing its unique
services in countries with a population totaling around one
billion and is rated by Standard & Poor’s at BB+ (long term) /
B (short term)........
As On Mar 5, 2014
PAKISTAN REFINERY LIMITED CONTINUES TO SERVE POWER DEMAND
Pakistan Refinery Limited (PRL) is a
hydro skimming refinery designed to process many domestic and imported crude oil
to meet the local and strategic fuel needs of Pakistan. PRL has a capability of
producing around 47,000 barrels per day of crude oil into a variety of distilled
petroleum products like high speed diesel, motor gasoline, furnace oil, kerosene
oil and Jet fuel. PRL is operating at two locations. Major processing facility
is situated at Korangi Creek with storage facility and supporting crude berthing
at Keamari. Primarily, the design capability of the refinery was to process 1.0
million tonnes of crude oil yearly, which was subsequently enlarged to 2.1
million tonnes per annum............
If you want a love message to be heard,
it has got to be sent out. To keep a lamp burning, we have to keep putting oil
When Thomas Edison worked late into the night on the electric light, he had to
do it by gas lamp or candle. I'm sure it made the work seem that much more
Friendship and money: oil and water.
God made man to go by motives, and he will not go without them, any more than a
boat without steam or a balloon without gas.
HENRY WARD BEECHER
Unlike my opponent, I will not let oil companies write this country's energy
plan, or endanger our coastlines, or collect another $4 billion in corporate
welfare from our taxpayers.
When things get too heavy, just call me helium, the lightest known gas to man.
We need more of the Office Desk and less of the Show Window in politics. Let men
in office substitute the midnight oil for the limelight.
I hooked up my accelerator pedal in my car to my brake lights. I hit the gas,
people behind me stop, and I'm gone.
The use of solar energy has not been opened up because the oil industry does not
own the sun.
PSO: THE OIL MARKET LEADER REPORTS
Pakistan State Oil (PSO)
is one of the public sector entities, which by virtue of its
outstanding performance has proved that government-run
organizations not only can compete the private sector but
perform even better through dedication and efficient
This was well
substantiated as PSO’s revenues rose 15% to Rs727 billion for
the half year ended 31st December 2013 as compared to Rs630
billion during the same period last year (SPLY).
The company’s after
tax earnings rose by 150% percent to Rs15.8 billion as compared to Rs6.31
billion during SPLY.
The Board of
Management (BoM) of Pakistan State Oil Company Limited (PSOCL)
convened at the PSO headquarters, to review the Company’s
performance for the first half of financial year 2013-14
These all time high
six monthly earnings surpassed the after tax earnings of
Rs12.6 billion during the entire financial year 2012-2013 by
25%. PSO’s share price recorded an impressive growth,
outperforming KSE-100 share index by 11% during the second quarter
ended December 31, 2013........
One of the key challenges facing Oil & Gas industry is not only the availability
of Oil & Gas resources but rather, it is the sheer logistical difficulty of
putting these reserves into production and delivering the final product to the
consumers at the minimum costs possible. The price and difficulty of working in
remote regions, requirement of heavy and oversized equipment, safety and
security requirements are just few challenges faced by Oil and Gas sector.
Agility Pakistan Oil & Gas experts summarizes challenges facing the industry as,
poor community relations, lack of proper infrastructure and no specific
establishments of local halting stations.......