Jan 11 - 17, 20

Crude oil is a natural commodity and obtained by drilling deep into the earth, deep sea and offshore through varieties of machineries. After refining the crude oil, we obtain more than twenty different products and some of these are motor gasoline, kerosene, diesel, furnace oil, methyl tertiary butyl ether, liquefied natural and petroleum gases, lubricants, grease, petroleum jelly, naphta, bituminous, coal-tar etc.

All of these products are used in vehicles of different types such as cars, trucks, rail, buses, motor cycles, airplanes as well as in households, road-carpeting, building and construction, and other industries.

There are many countries where petroleum occurrence is a commonplace and such countries are Saudi Arabia, Kuwait, Qatar, Bahrain, Iraq, Iran, India, Jordan, Egypt, Turkey, USA, Nigeria, Libya, Indonesia, Brunei Darussalam, Canada, Germany, France, Italy, Venezuela, Colombia, Pakistan etc.

Many of these countries (12 countries) are member of organization of the petroleum exporting countries (OPEC) who control the movement and production of crude oil. One barrel is equal to 42 gallons.

Pakistan is also an oil producing country. It stands at 38th place in world oil consumption with 324,000 barrels per day while the US holds the number one position with a consumption of 20,730,000 barrels per day.

According to CIA's World Factbook as of June 14, 2007, China, which is second after US, consumes 6,534,000 barrels per day, while Japan consumption stands at 5,57,000 barrels per day. One of the interesting fact is that the US and Canada consume 28% of the world oil production, while their combine population informs five percent of the world.

Canada's oil consumption is 2,294,000 barrels per day. China consumes one third the oil consumption of America, but its population is four times US.

India consumes one-ninth of the oil of US, but its population is nearly 3.5 times of the super power.

According to one estimate, presently the total oil reserve potential in the country is 27 billion barrels and consumption in different sector is nearly 20 million tons/year. The country imports more than 19 million tons of petroleum products annually and its crude oil refining capacity is about 12.82 million tons per year.

The petroleum products and crude oil imports for the year 2007-08 has increased to 12.96 percent to US$11.4 billion. This figure indicates that government spends a huge amount on oil import.

The majority of produced oil comes from the reserves located in the southern portion of the country. The demand for petroleum products is expected to stay steady at 20 million tons per annum with the increasing energy demand to be catered by additional indigenous gas supplies to reduce the import bill.

With crude oil refining capacity of 11.28 million tons per year, the locally refined products per year are 8.7 million tons per year. The total consumption of oil is 20 millions tons per year and import is 17 million tons per annum.

The current production of oil in Pakistan is 56,200 barrels per day. The coal is another source of energy product in the country.

Pakistan is the world's 8th biggest producer of coal and the total proven reserves of coal in the country is estimated at 185 billion tons, having production of 3.31 million tons and a consumption of 4.04 million tons.

The oil also plays an important role in the production of electricity, but other sources for the production of electricity are water, coal, gas, and nuclear energy.

There are about 173 gas fields in the country and of them 140 are located in Sindh, 32 in Punjab, 7 in Balochistan, and 4 in NWFP.