Honourable faculty members and fellow officers; Assalamu Alaikum In next 35 minutes or so; I shall brief you about oil and gas exploration in Pakistan with its historical perspective, current status and what future prospects this industry has. Sequence of my presentation shall be as shown on viewfoil. I shall begin with some introductory slides in which I shall show acronyms of some terms used in the presentation, followed by definitions of few important terms and highlight few facts about oil and gas domain in Pakistan. After brief introductory slides, I shall apprise the house regarding historical perspective of oil and gas exploration in Pakistan; current status of exploration activities and future prospects. I will also touch upon issues confronting this industry. Later I shall present the overall analysis of the situation and present few recommendations as well for the way forward.
To start with the acronyms; Bcma stands for Billions Cubic Meter per Annum and MCF is Millions Cubic Feet. Both the terms relate to the volume of gas. BOE is Barrels of oil equivalent and TOE is tons of oil equivalent. I will present definition of both the terms in succeeding slide. The term E & P refers to exploration and production of oil and gas. Whereas EIA stands for Energy Information Administration and is united states’ principle agency which collects, analyze and disseminates information regarding energy.
Now coming over to the definitions;
Barrel of Oil Equivalent is a term used to refer to the amount of energy that is equivalent to the amount of energy found in a barrel of crude oil; which is approximately equal to 5.8 million British Thermal Units. (www.investopedia.com) Whereas; Tonne of Oil Equivalent is considered as an amount of energy released by burning one tonne of crude oil which is approximately equal to 11,630 Kilowatt Hours = 39.683 Million BTU. (www.investopedia.com) Upstream is a term commonly used to refer to the searching for and the recovery and production of crude oil and natural gas. The upstream sector is also known as the exploration and production (E&P) sector. The upstream sector includes the searching for potential underground or underwater oil and gas fields, drilling of exploratory wells, and subsequently operating the wells that recover and bring the crude oil and/or raw natural gas to the surface. (http://answers.yahoo.com) The Midstream term refers to those industry activities that fall between exploration and production (upstream) and refining and marketing (downstream). The term is most often applied to pipeline transportation of crude oil and natural gas. (http://www.oilandgasuk.co.uk) The component of oil and gas industry involved in refining and marketing the product is called downstream sector. More generically, the term can be used to refer to any step further along in the process. (http://www.oilandgasuk.co.uk)
Wellhead Price is the price of natural gas or Crude Oil at the mouth of the well. It represents the cost excluding other expenses required to transport and deliver natural gas (http://www.merriam-webster.com)
Having covered the definitions, now I shall highlight few facts about Pakistan in the realm of oil and gas domain (Pakistan Economic Survey 2012-13) (http://finance.gov.pk) Natural gas accounts for 49.5 % of total primary energy supply mix of Pakistan. Oil accounts for 15 % of the energy mix. Pakistan is 21st largest gas consumer in the world. Pakistan was gas sufficient until 2005, but increased demand fostered by lack of alternate fuels coupled with diminishing production constrained by unattractive fiscal terms have resulted in systematic gas and power shortage. The facts reveals the reality that how important oil and gas is for Pakistan for its day to day functioning.
After brief introduction of Upstream sector, now I shall apprise the house regarding historical perspective of this domain. (Leda Gomes)
The history of oil and gas in Pakistan dates from...
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