Part3-Chp%208 Assignment for load shedding

Since then production has been continually declining

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Unformatted text preview: BPD in 1990-91. Since then production has been continually declining. The remaining oil reserves are estimated at 221 million barrels which, on the average production rate of 57,000 barrels per day, will be exhausted in about 10 years. Consequently, it appears that Pakistan will remain a net importer of crude oil and refined oil products unless a major discovery of crude oil is made. 121 The total primary energy consumption in Pakistan is currently estimated at around 60 million tons of oil equivalent (MTOE). Of this, two-thirds are met by commercial energy resources with about one-third being based on non-commercial energy resources like fire-wood, charcoal and cow-dung. The primary commercial consumption of 41.7 MTOE is largely based on the use of hydrocarbons. Primary Energy Supplies by Source Source of Commercial Energy Gas Oil Coal Hydro Nuclear and other Primary Energy Supplies (%) 38.61 42.8 5.2 13.0 0.2 Source: ENERCON Oil and gas account for more than three-quarters of the commercial energy consumption in the country. Gas has emerged over the years as the leading domestic source of energy. Pakistan has appreciable coal reserves of 1.7 billion tonnes of oil equivalent (TOE). Oil is by and large an imported source of energy. The imports of oil account for 85% of oil consumption in the country and 42.8% of commercial energy consumption. The production of indigenous oil is around 15% of total imports of oil products, which is likely to remain the case. Pakistani oil sector performance, unlike that of the natural gas sector, has not been satisfactory, both by way of exploration, exploitation and development of oil fields, and by way of refining of crude oil into various products, with the result that 70% of total demand of crude oil is being met through imports. It costs about US$ 2.5 billion every year to import about 18 million tons of oil as both crude and refined products, representing a great burden on foreign exchange resources. No significant new discovery of crude oil has been reported in the recent past. Of course efforts are underway both by national and international exploration and development companies to make new oil discoveries. Transport, power and industry are the major oil consuming sectors of the economy. Sectoral Consumption Sectoral Consumption Transport Power Industry Agricultural Domestic Other Govt. % 47.2 33.2 12.9 1.5 3.0 2.3 Source: ENERCON Today, the primary energy supplies are not enough to meet even the present demand. So, Pakistan, like other developing countries of the region, is facing a serious challenge of energy deficit. Renewable energy sources can play an important role in meeting this challenge. Oil Resources and Exploration Pakistan produced 61,769 barrels per day (bbl/d) of oil in 2003 (of which 60,000 bbl/d was crude oil), and consumed 360,000 bbl/d of petroleum products. Net oil imports were 308,000 bbl/d in 2003. While there is no prospect for Pakistan to reach self sufficiency in oil, the government has encouraged private (including foreign) firms to develop domestic productio...
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