Future of oil and gas in pak Essay Example | Topics and Well Written Essays - 2500 words

Future of oil and gas in pak - Essay Example As of June 6, 2008, the oil market price reached as high as US$139 per barrel. (MSNBC, 2008) In line with the constantly increasing market price of crude oil, Pakistan’s oil import bill has reached the highest record of $6.338 billion during the first quarter of 2008 as compared to $4.741 billion the previous year. (Ahmed, 2008) To enable us to understand the future of oil and gas in Pakistan, the researcher will first define the importance of oil and gas in Pakistan’s economy. Eventually, the researcher will evaluate the increasing domestic and regional demands for energy including the government of Pakistan’s effort to fulfil these requirements. After discussing the strategic role of Pakistan with regards to the current global issues related to oil and gas supply, the researcher will examine and discuss investors’ benefits in terms of business opportunities related to their investments in oil and gas industry. As part of the conclusion, the researcher will discuss the theoretical factors that contribute to the increase in gas and oil prices in the world market. Sufficient supply of oil and natural gas is an important part of Pakistan’s economy since both sources of energy accounts for 80% of its commercial energy use. Among the major the sectors that consumes the most energy includes: industrial with 38.2%; transportation sector with 32.8%; residential and commercial with 25%, agriculture with 2.5%; and others with the remaining 2.2%. (Kakakhel, 2007) In the absence of sufficient supply of petroleum products, Pakistan could face a serious inefficiencies in the costs of public transportation. (Shikoh & Mansoor, 2008) Similar to the importance of petroleum products, the availability of natural gas is also considered a crucial part of Pakistan’s economic growth. A large portion of natural gas supply is mostly consumed by the energy / power as well as the fertilizer sector. Up to year 2010, Engr. Abdul