CRUDE OIL & PETROLEUM PRODUCTS
DR. S. M. ALAM
Apr 11 - 17, 2011
Crude oil is a natural product and obtained by drilling deep into the earth, deep sea and offshore through varieties of machineries. After refining the crude petroleum, we obtain more than twenty different products and some of these are motor gasoline, kerosene, high speed diesel oil, furnace oil, solvent oil, processed oil, lubricant oil, grease, petroleum jelly, wax, naphta, bituminous, coal-tar etc. All of these products are used freely in vehicles of different types such as cars, trucks, rail, buses, motor-cycles, airplanes, industries, household, road-carpeting, building construction and many other varieties of uses.
Most number of petroleum reserves of the World are located in the Middle East. It produces 664 bbls of crude oil from the total World's production of crude oil, which is around 1,000 bbls. When 664 bbls of the gulf countries' production is excluded, Africa, North and South America, Europe and the Far East produce the balance. It is estimated, the rate of oil consumption today is 84.1 mbls per day. According to a research, proven reserves of unused crude oil have more than 800 billion barrels while undiscovered crude oil amounts to about 1.2 trillion barrels.
At the end of 2007, the total crude oil of Europe and Eurasia was 143.7 million barrels and Middle East produced the largest quantity of crude oil of 755.3 million barrels. Africa produced 117.5 million barrels while Asia Pacific produced 40.8 million barrels.
1. Saudi Arabia
6. United Arab Emirates
12. United States
Top 20 countries
Rest of world
United States held the number one position with a consumption of 20,730,000 barrel per day. According to CIA World Factbook, as of June, 2007 China which is second after US, consuming 6,534,000 barrels per day, while Japan consumption stood at 5,57,000 barrel per day. One of the interesting fact is that the US & Canada consume 28 per cent of the world oil production, while their combine population is only 5 per cent of the world. Canada's oil consumption is 2,294,000 barrel per day. China consumes one-third the oil consumption of America, but its population is more than four times that country. India consumes one-ninth of the oil of US, but its population is nearly 3.5 times of the USA. India consumes one-ninth of the oil of US, but its population is nearly 3.5 times of the super power.
Pakistan ranked 38th in world oil consumption with 324,000 barrels per day. The oil 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 reserves, which qualify as one of the leading producers in the world. Oil is the major component of Pakistan's energy mix , and contributing more than 80 per cent to the 56.5 million TOE of energy requirement of the country. The oil has been identified as an engine of growth and its unprecedented growth is expected to further promote investment activities in the country. 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 which has stretched over 825,00 sq. kms, with nearly 177 discoveries. The current production of oil is 59,000 barrels per day, which is expected to increase more per day in the next few years. Foreign companies recognizing the potential within oil and gas sector of Pakistan have a significant investments in this sector in the last year alone.
According to an estimate, presently the total oil reserve potential in the country is 28 billion barrels and consumption in different sector is nearly 20 million tons/year. The country imports more than 19 million tons of petroleum annually and the crude oil refining capacity is about 12.82 million tons per year.
The demand for petroleum products is expected to stay steady at 20 million tons per annum. With crude oil refining capacity 11.28 million tones per year. The locally refined products per year is 8.7 million tons per year. The total consumption of oil is 20 millions tons per year and imports are 17 million tones per annum.
The oil sector has been identified as an engine of growth in the country and its unprecedented growth is expected to further promote investment activities in the country. Pakistan possesses significant oil reserves. According to an estimate, presently the total oil reserve potential in the country is 28 billion barrels. The annual demand of petroleum products in the country is about 20 million tons, out of which only 13 per cent is met through local reserves. The remaining 87 per cent is met through imports in shape of crude oil and refined petroleum products like motor gasoline, high speed diesel and furnace oil.