Oct 22 - 28, 2007

Petroleum a mineral oil is a mixture of hydrocarbons and other thick organic compounds. Petroleum as a crude mineral oil is obtained from the very deep underground earth crust, seashore and offshore locations through extensive drilling. There are many countries where petroleum existence is very common. Such countries are: Saudi Arabia, Kuwait, Qatar, Behrain. Iraq. Iran, India, Jordan, Egypt, Turkey, USA, UK, Indonesia, Brunuie Darusslam, Canada, Nigeria, Germany, France, Italy, Venazula, Colombia etc. Many of these countries are members of OPEC (Organization of Petroleum Producing Countries), who control the movement and production of oil in terms of barrel annually.

As for geological feature, Pakistan also falls in the category of Iran and India. The three countries occupy the geological belt of Gondawana". As Iran and India possess sufficient petroleum, therefore there every chance that Pakistan also possesses petroleum oil in its earth crust. It needs through exploration to find out the real location inside the earth. However, Government is trying to large extent to trace the presence of this crude oil inside the earth. Some details are given in this article.

Petro is avery precious oil. From crude petroleum we obtained petrol, kerosene, diesel, lubricant, greese, petroleum jelly, wax, napthal, bituminous, coal-tar and many other products. All these are used freely in vehicles of all types, aeroplanes, industries, household, road carpeting, building construction, and they have other varieties of uses.

With Pakistan's economic growth averaging over 8.5% in the last few years, the requirement of energy in the country has tremendously increased. Every industry/household in the country requires more energy and therefore in order to keep pace with the industrial development, the government of Pakistan has developed a comprehensive plan for the identification and acquisition of the required energy resources over the next decade. Pakistan really has abundant of natural resources and has the ability to become self-sufficient in energy having huge sedimentary basins stretching over 825,000 sq. kms., offering immense potential for exploration and development of the total natural resources Presently, this whole scenario honestly needs to be explored through an institutionalized strategy for optimum utilization. The Government has set out an action plan to achieve exploration and maximum utilization of local indigenous resources like oil, gas, coal etc. Pakistan, like many other developing countries of the region, is facing serious challenge of energy deficit. The country's energy requirements are expected to grow by 8 to 10 percent per annum.

The petroleum sector has been identified as an engine of growth by the government and its unprecedented growth is expected to further promote investment activities in the country. Pakistan possesses significant oil and gas reserves which qualify as one of the leading producers in the world.

Like gas, oil is also a major components of Pakistanis energy mix. The government is providing an investment friendly environment for the oil sector to attract local and foreign investors. As a result of these financial and structural reforms, this sector has already emerged as one of the most attractive sectors for investment in the country. To lend a hand to progression of this sector , government in this regard has been adopting policies to increase the share of indigenous resources and has awarded 100 exploration licenses in 2005-06, which has resulted in significant investment in the oil industry in the country. So far, over 620 wells have been explored over 146,000 sq. km of area ,with nearly 177 discoveries. The current production of crude oil is 66,096 barrels per day , which is expected to increase to 100,000 barrels per day in the next few years.. Foreign companies recognizing the potential within oil an gas sector of Pakistan has a significant investment of US$ 267 in this sector in the last year alone.

Oil is transforming world politics and the prices of petroleum products have a direct and in depth impact on all sectors of the economy. According to one estimates presently, the total oil reserve potential in the country is 27 billion barrels and consumption in different sector is nearly 18.5 million tons/year. The country imports more than 14 million tons of petroleum annually and the crude oil refining capacity is about 13.82 million tons per year. The petroleum imports for the year 2006-07 has increased to 9.96 per cent amounting to US$ 6.674 billion. This figure indicates that government is spending a huge amount on oil to fulfill the shortage this item in the county.

The demand for petroleum products is expected to stay steady at 20 million tons per annum with the increased energy demand to be catered by additional indigenous gas supplies to reduce the import bill of over USD 3 billion per annum. Recently it has been reported that the total consumption of oil in the country is 20 millions tons per year & imports is 17 million tons per annum.

With increase exploratory and production activities in Pakistan oil production is expected to increase to 100,000 barrels per day in the next few years. The commercial requirement of energy in the country has doubled over the last decade, with the demand for natural gas growing at 10% per annum. However, the gas ( also a natural product) discoveries and supply is not keeping pace with the increasing demand and the requirement for imported gas has become inevitable with the expected shortfall of 700 mmcf /d by 2010. Pakistan is also emerging as the preferred transit route for energy in the region, due to its ideal geographical location at the crossroads of Central Asia and the Arabian Sea. Talks are underway for the construction of a USD 4 billion gas pipeline from Central Asia or the Middle East to cater to the energy requirements of the neighboring countries. This has given a new dimension to the transnational gas pipeline projects which are seriously being considered to cater to the energy requirements of the region, The energy plan of the Government entails multi million dollar investments in up gradation and construction of new projects to meet the long term requirements of the country.

Pakistan has an installed electricity generation capacity of 19,522 MW from different sources i.e. hydel, thermal , coal and nuclear. The government is committed to develop this sector in order to promote sustained industrial growth and benefit the growing national economy. Similarly the share energy consumption is 23% residential, 34% industrial, 34% transportation, 3 % commercial, 3% agriculture and 3 % other government offices.

It is suggested that energy management programme should be adopted to control the loss and misuse of energy in the country. Energy management history dates back to 1973 when the oil embargo forced many governments to focus a programme to reduce oil consumption. At the same time it also made developed country's society to look at their extravagant consumption rates from a global perspective, In this regard the energy conservation management programme is very necessary to cut energy expenditure.

Presently, due to soft loan policy by the banks and other corporate organizations, the purchasing power of the citizens have been increased tremendously. In Karachi, after every one hour, ten vehicles are coming on the roads. Therefore, it has increased the petrol/diesel consumption. Therefore more crude oils are to be explored efficiently from our own resources or to be imported from the foreign countries to meet the urgent requirement of its users in the country.