Feb 6 - 12, 20

Crude oil is a complex mixture of hydrocarbon whose composition varies according to its place of occurrence. It can occur in solid, liquid, and gaseous state. In the solid form, it is called as asphalt, in liquid it is known as crude oil and in gaseous form, it is known as natural gas.

Where there is petroleum, there is oil and gas. The word petroleum is derived from the Latin word "Petra" meaning rock and "Oleum: meaning oil. It is also called earth oil, mineral oil or crude oil.

Petroleum is formed by the action of bacteria, heat and pressure on the dead bodies of sea animals and plants buried between the cracks of earth during earthquake.

Due to the huge deposit of rock on it, the oil and gas could not come out and collected in larger amounts underground. Oil and gas are big sources of energy and the whole world these days meets its energy requirements principally from these sources.

Crude oil is a natural product and obtained by drilling deep into the earth, deep sea and offshore sea through machineries and then through after refining the crude petroleum, we obtain more than twenty different products, which include motor gasoline, kerosene, high speed diesel oil, furnace oil, solvent oil, processed oil, lubricant oil, grease, petroleum jelly, wax, bituminous, coal-tar etc. All of these products are used generally in vehicles of different types such as cars, trucks, rail, buses, motor-cycles, and airplanes. Besides, they meet energy domestic, commercial, and industrial demands.

The discovery of oil fields in the Middle East in the early 20th century spurred a century of new technologies, created new patterns of society and consumption and changed the global balance of power. The richest deposits yet discovered in the world are located in Saudi Arabia, Iran, Iraq, Kuwait, Libya, and other Middle East countries, Russia, Canada, Nigeria, Mexico, Venezuela, Kazakhstan, Azerbaijan, Brazil, Qatar, UAE, Angola, Norway, Algeria, Angola etc.

1. Saudi Arabia 262.3
2. Canada 179.21
3. Iran 136.27
4. Iraq 115
5. Kuwait 101.5
6. United Arab Emirates 97.8
7. Venezuela 80.012
8. Russia 60
9. Libya 41.464
10. Nigeria 36.22
11. Kazakhstan 30
12. United States 21.757
13. China 16
14. Qatar 15.207
15. Mexico 12.352
16. Algeria 12.27
17. Brazil 11.773
18. Angola 8
19. Norway 7.849
20. Azerbaijan 7
Top 20 countries 1252.04 (95%)
Rest of world 65.4 (5%)
World total 1,317.447

United States consumes 20,730,000 barrel per day representing the world's largest consumer. China, which is second after US, consumes 6,534,000 barrel per day, while Japan consumption stands at 5,57,000 barrel per day.

One of the interesting fact is that the US and Canada consume 28 per cent of the world oil production, while their combine population is only five 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.

The world possesses tens of thousands of operating oil fields, but only 116 of them produce more than 1000,000 barrels per day and they account for 50 per cent of global output.

Indeed, some of the world's largest fields- including Ghawar in Saudi Arabia, Burgan in Kuwait, Cantarell in Mexico and Samotlor in Russia appear to be in decline or about to become so. The decline of these giant fields matters greatly. The US specifically produces only eight per cent of the world's oil but consumes 25 per cent of it.

Crude oil in Pakistan: The oil sector has been identified as an engine of growth 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 about 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.

One of the major energy sources in the world today is natural gas. The popularity of natural gas as a source of energy has increased over the years leading to increase in its consumption. Consumption of natural gas is expected to grow significantly in the coming years.

The maximum consumption of natural gas takes place in the industrial sector. It is also used as a fuel in the production of electric power.

Some of the major consumers of natural gas in the world are USA, Russia, UK, Germany Iran, Canada, and Japan. Similarly, some of the major producers of natural gas in the world are USA, Canada, Algeria, UK, Norway, Iran, and Indonesia.

Natural gas reserves around the world have increased over the years. According to the estimates by Oil & Gas Journal, the natural gas reserves were 6,183 trillion cubic feet.

Major upward revisions to estimates of natural oil reserves took place in 1) Kazakhstan - 35 trillion cubic feet, 2) Turkmenistan - 29 trillion cubic feet, 3) China - 27 trillion cubic feet, 4) United States of America - 12 trillion cubic feet, 5) Netherlands - 12 trillion cubic feet, 6) Trinidad and Tobago - 7 trillion cubic feet, 7) Argentina - 3 trillion cubic feet, 8) Nigeria - 3 trillion cubic feet, 9) United Kingdom - 2 trillion cubic feet, 10) Saudi Arabia - 2 trillion cubic feet, 11) Norway - 2 trillion cubic feet, 12) Italy - 2 trillion cubic feet.

Gas, which is associated with liquid petroleum, is known as natural gas. Gas is a vital component of the world's supply of energy. It is one of the cleanest, safest, and most useful of all energy sources. It is colorless, shapeless, and odorless in its pure form. It is combustible and when burned and it gives off a great deal of energy.

Natural gas is clean burning and emits lower levels of potentially harmful byproducts into the atmosphere. We require energy constantly to heat our homes in winter, cook our food, and generate electricity.

It is this need for energy that has elevated natural gas to such a level of importance in our society, and in our lives. While natural gas is formed primarily of methane, it can also include ethane, propane, butane and pentane.

Natural gas has many uses, residentially, commercially, and industrially. Found in reservoirs underneath the earth, natural gas is commonly associated with oil deposits.

Production and distribution companies commonly measure natural gas in thousands of cubic feet (Mcf), million of cubic feet (MMcf), or trillions of cubic feet (Tcf).

Natural gas in Pakistan: A big deposit of natural gas estimated to about 9.625 trillion cubic feet was discovered at Sui in Balochistan in 1952. Pakistan Petroleum Limited discovered some more deposits of natural gas at Zan in 1954, Och in 1955, Khairpur in 1957, Magarani in 1958 and Khan Kot in 1959. It also discovered natural gas from Dhodak and Radho in district Dera Ghazi Khan in Punjab and from Pir Koh in Mari Bughti in Balochistan. Other gas fields are Adkhi, Badin, Bhit, Khasan, Kandanwari, Kandkhot field, Mari, Miano, Mizra, Sawan, Zamzama, Zarghun, Sinjhoro, Golarchi, and Mubarak areas.

The Sui gas field accounts for 26 per cent of the country's gas production and the daily production is around 660 million cubic feet. The country's two gas distribution companies are in the north, Sui Northern Gas Pipelines Limited (SNGPL), which distributes gases in Punjab, Khyber PK and A.K. and in south, Sui Southern Gas Company Ltd (SSGPL), which supplies gas in Sindh and Balochistan.

The biggest consumer of gas is the power sector which uses it for generating electricity. Nearly 42 per cent of the gas is used in the power sector. Industry uses another 19 per cent. The next big consumer is the fertilizer industry, which uses 16 per cent as feedstock for producing urea. Household consumption is only 16 per cent followed by commercial uses of seven per cent and others to three per cent.

The country has over 10,000 km. of gas transmission lines and 80,000 kilometers of gas distribution lines. Gas domestic consumers are over 3.8 million and gas commercial consumers are more than 80,000.

Liquefied petroleum gas (LPG) and compressed natural gas (CNG) are the mixture of hydrocarbons gases used as fuel in heating appliances, fuelling vehicles etc.

About 90 per cent of LPG is produced locally. CNG provides a smoke-free and cheaper gas to vehicles. The cars owners have fixed CNG kits in their vehicles to reduce their fuel expenses. Pakistan has the world's highest number of vehicles running on compressed natural gas.

The commercial requirement of energy in the country has doubled over the last decades with the demand for natural gas growing over 10 per cent per annum.