Oil and gas assets to satisfy energy supplies.

Oil (Petroleum Product)                                                           

Pakistan chiefly relies on oil and gas assets to satisfy
energy supplies.

Original assets of oil are deficient to smother strength desire
of a developing economy. Consequently Pakistan needs to import spacious amount
of oil and oil based items from Middle East nations particularly from Saudi
Arabia. The local formation of raw petroleum remained 24.02 million barrels
amid July walk FY 2016.

Natural Gas

Natural gas is a spotless, safe,
and dynamic state well-disposed fuel. It gives around 48 percent of the total
vital energy supply balance in the state. Pakistan has a wide-ranging gas
system of more than 11,538 km transmission, 1,14,982 km distribution and 31,058
Services gas pipelines to cook the requirement of more than 7.9 million buyers
the nation over by giving, around 4 billion cubic feet for each day petroleum
gas.

Liquefied
Petroleum Gas (LPG) Sector:

 

Sector
into the LPG business has been stimulated by the direction carrying about fast
concern proceeding, storing and base of auto stations of LPG. The supervisor is
assuming an essential part to shape private interest in midway and downstream
oil production.

Liquefied Natural Gas (LNG) Sector.

With
an end goal to connect the covering flammable gas demand supply hole of the
state, the government is taking in LNG and in such manner a license for
progress of LNG terminal was conceded to Engro Elengy Terminal Limited (EETL),
on eighteenth June 2014 with a development validity time of two years.

Compressed Natural Gas (CNG):

The government at first allowed the
operation of compressed flammable gas (CNG) as a additional fuel for car
keeping in mind the end goal to switch regular humiliation, reduce isolated
trade consumption on significance of fluid fuel and yield industry.

Electricity

 

Power
in spite of the fact that the supporting source of energy has turned out to be
commanding for household as well as for all other circle like business,
transportation and so forth.

 

 

PEST Analysis:

Political:

1)     
Pakistan has a
democratically elected government where the ruling party is Pakistan people’s
party.

2)     
The political
system of Pakistan is not strong enough due to corruption as government does
not make effective legislation to nip the evil of corruption.

3)     
The public is
not pleased with their policies as they differently from the masses and their
priority list is not up to the expectations of the people.

 

      Economics:

1)     
Due to poor
economic policy of the government, the net loss is still increasing and the government
is taking interest in getting more loans. There are stories of corruption in
the government and private sector and the people on the top of the government
do not pay taxes, which has increased the diverse condition of the government
economic policies.

2)     
Pakistan’s
economic growth is quite slow. Inflation is at its highest, while the interest
rates are their highest. This is due to low lending levels for the overall
purchasing power of the consumer is weak.

3)     
Unemployment is
rising regardless of the fact that labor supply is high and available at low
costs.

 

      Social:

1)   
In the developing countries like Pakistan, Health
and Education are two major issues, which need deep and special attention of
the government.

2)   
The government should make the legislation for the
provision of quality education at the highly subsidized rate of the fee and
they should declare education till the tenth class in compulsory for every
child of the country it is also the prime reasonability of government to
provide health care facilities to each individual of the country.

3)   
There is also very week culture in Pakistan mainly
pointing out to classism.

 

 

Technological:

1.     
Pakistan is the big user of mobile phone and IT
technology and numerous mobile phone companies are providing their latest
mobile phones, tablets and IT products in the market.

2.     
Faisalabad is well known for manufacturing of
textile and it is called Manchester of Pakistan.

3.     
There has been an immense technological improvement
in the industrial sector and petrol and oil industry is no exception.

 

 

SWOT ANALYSIS

Strength:

·        
Developing economy: Historically, demand for petroleum products has
traced the economic growth of the country. With GDP expected to grow at near 7%
in the long-term, the energy sector would benefit from the same, going advance.

·        
Government decisions: The current price increases and also the
decision to assign oil companies to increase prices within a band of 10%
predict well for the industry.

       Weakness:

·        
Crude prices: Nearly 70% of Pakistan’s crude supplies are satisfied by imports
and this figure is likely to enlarge going forward. Crude prices have breached
the $45 difficulty again and are likely to remain at around $40 per container
range.

·        
Lack of freedom: Although the government has decided to provide independence to oil
companies to enhance petrol and diesel prices within a 10% band, other products
such as LPG and kerosene continue to stay under the government controlled cost
mechanism.

Opportunities:

·        
Equity Oil: Major oil promotion companies are now venturing into upstream
investigation and production actions so as to safe crude contribute.

·        
Natural Gas: Natural gas has the possible to be the fuel of the future with
command outpacing supply by more than two times. Such high shortage of natural
gas provides a big chance for oil companies.

     

 

 

Threats:

§  Competition: Until oil-marketing companies had full power over the downstream
marketing trade while private sector players were limited to only purification.

§  Continuing government interference: During the first six months of the current fiscal year, the oil
marketing companies were refrained from growing product prices due to political
reasons.

 

 

 

 

 

CONCLUSION

Pakistan’s
Power Sector is fast evolving. The production has gone 2.5 in last 10 year
plan. Through China Pakistan Economic Corridor – CPEC up to 10,000MW would be
added to the Grid by 2020. Suppressing the Shortfall and featuring job
opportunities.   Furthermore   more  
efficient   Super   Critical  
Plants   are   being established with 42% Net Efficiency
and other Combined Cycle Power Stations are part of the ?Early Harvest Energy
Project.

Oil (Petroleum Product)                                                           

Pakistan chiefly relies on oil and gas assets to satisfy
energy supplies.

Original assets of oil are deficient to smother strength desire
of a developing economy. Consequently Pakistan needs to import spacious amount
of oil and oil based items from Middle East nations particularly from Saudi
Arabia. The local formation of raw petroleum remained 24.02 million barrels
amid July walk FY 2016.

Natural Gas

Natural gas is a spotless, safe,
and dynamic state well-disposed fuel. It gives around 48 percent of the total
vital energy supply balance in the state. Pakistan has a wide-ranging gas
system of more than 11,538 km transmission, 1,14,982 km distribution and 31,058
Services gas pipelines to cook the requirement of more than 7.9 million buyers
the nation over by giving, around 4 billion cubic feet for each day petroleum
gas.

Liquefied
Petroleum Gas (LPG) Sector:

 

Sector
into the LPG business has been stimulated by the direction carrying about fast
concern proceeding, storing and base of auto stations of LPG. The supervisor is
assuming an essential part to shape private interest in midway and downstream
oil production.

Liquefied Natural Gas (LNG) Sector.

With
an end goal to connect the covering flammable gas demand supply hole of the
state, the government is taking in LNG and in such manner a license for
progress of LNG terminal was conceded to Engro Elengy Terminal Limited (EETL),
on eighteenth June 2014 with a development validity time of two years.

Compressed Natural Gas (CNG):

The government at first allowed the
operation of compressed flammable gas (CNG) as a additional fuel for car
keeping in mind the end goal to switch regular humiliation, reduce isolated
trade consumption on significance of fluid fuel and yield industry.

Electricity

 

Power
in spite of the fact that the supporting source of energy has turned out to be
commanding for household as well as for all other circle like business,
transportation and so forth.

 

 

PEST Analysis:

Political:

1)     
Pakistan has a
democratically elected government where the ruling party is Pakistan people’s
party.

2)     
The political
system of Pakistan is not strong enough due to corruption as government does
not make effective legislation to nip the evil of corruption.

3)     
The public is
not pleased with their policies as they differently from the masses and their
priority list is not up to the expectations of the people.

 

      Economics:

1)     
Due to poor
economic policy of the government, the net loss is still increasing and the government
is taking interest in getting more loans. There are stories of corruption in
the government and private sector and the people on the top of the government
do not pay taxes, which has increased the diverse condition of the government
economic policies.

2)     
Pakistan’s
economic growth is quite slow. Inflation is at its highest, while the interest
rates are their highest. This is due to low lending levels for the overall
purchasing power of the consumer is weak.

3)     
Unemployment is
rising regardless of the fact that labor supply is high and available at low
costs.

 

      Social:

1)   
In the developing countries like Pakistan, Health
and Education are two major issues, which need deep and special attention of
the government.

2)   
The government should make the legislation for the
provision of quality education at the highly subsidized rate of the fee and
they should declare education till the tenth class in compulsory for every
child of the country it is also the prime reasonability of government to
provide health care facilities to each individual of the country.

3)   
There is also very week culture in Pakistan mainly
pointing out to classism.

 

 

Technological:

1.     
Pakistan is the big user of mobile phone and IT
technology and numerous mobile phone companies are providing their latest
mobile phones, tablets and IT products in the market.

2.     
Faisalabad is well known for manufacturing of
textile and it is called Manchester of Pakistan.

3.     
There has been an immense technological improvement
in the industrial sector and petrol and oil industry is no exception.

 

 

SWOT ANALYSIS

Strength:

·        
Developing economy: Historically, demand for petroleum products has
traced the economic growth of the country. With GDP expected to grow at near 7%
in the long-term, the energy sector would benefit from the same, going advance.

·        
Government decisions: The current price increases and also the
decision to assign oil companies to increase prices within a band of 10%
predict well for the industry.

       Weakness:

·        
Crude prices: Nearly 70% of Pakistan’s crude supplies are satisfied by imports
and this figure is likely to enlarge going forward. Crude prices have breached
the $45 difficulty again and are likely to remain at around $40 per container
range.

·        
Lack of freedom: Although the government has decided to provide independence to oil
companies to enhance petrol and diesel prices within a 10% band, other products
such as LPG and kerosene continue to stay under the government controlled cost
mechanism.

Opportunities:

·        
Equity Oil: Major oil promotion companies are now venturing into upstream
investigation and production actions so as to safe crude contribute.

·        
Natural Gas: Natural gas has the possible to be the fuel of the future with
command outpacing supply by more than two times. Such high shortage of natural
gas provides a big chance for oil companies.

     

 

 

Threats:

§  Competition: Until oil-marketing companies had full power over the downstream
marketing trade while private sector players were limited to only purification.

§  Continuing government interference: During the first six months of the current fiscal year, the oil
marketing companies were refrained from growing product prices due to political
reasons.

 

 

 

 

 

CONCLUSION

Pakistan’s
Power Sector is fast evolving. The production has gone 2.5 in last 10 year
plan. Through China Pakistan Economic Corridor – CPEC up to 10,000MW would be
added to the Grid by 2020. Suppressing the Shortfall and featuring job
opportunities.   Furthermore   more  
efficient   Super   Critical  
Plants   are   being established with 42% Net Efficiency
and other Combined Cycle Power Stations are part of the ?Early Harvest Energy
Project.

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