Vast oil and gas resources have been discovered in Pakistan’s territorial seas. Some contend it’s too soon to draw such conclusions. While others believe these Petroleum Reserves in Pakistan might significantly alter the nation’s economic situation. Pakistan might celebrate the rumoured finding of a substantial natural gas and petroleum deposit in its maritime seas.
The nation in South Asia is currently experiencing a severe economic crisis, which coincides with this development. According to a top Pakistani security officer, these Crude Oil Reserves in Pakistan have the power to “shift the country’s fate.” Some, meanwhile, contend that it is premature to declare that the country has discovered enormous Pakistan oil reserves.
Discovery of Massive Petroleum Reserves in Pakistan
The official report states that Pakistan carried out a three-year study in cooperation with a friendly nation to uncover Pakistan Oil Reserves. Pakistan has identified the deposits’ origin using this study. This is the world’s “4th biggest gas and oil reserves”, based on a few estimations.
With more than 3 billion oil reserves, Venezuela leads other countries in inventories. These include Saudi Arabia, Iran, Canada, and Iraq. The largest undeveloped shale oil deposits are thought to be in the United States.
Why Does This Discovery of Pakistan Oil Reserves Matter?
Pakistan is disproportionately affected by rising gasoline and energy costs.
The import of petroleum alone accounts for a large portion of the nation’s foreign exchange reserves. Any significant finding of Petroleum Reserves in Pakistan might contribute to meeting the nation’s energy demands. It can lead to lowering the cost of gasoline and fuel for the people affected by inflation.
Additionally, it will preserve Pakistan’s foreign exchange reservations. These reservations fell to $2.9 billion in 2023 and then to $9.4 billion this summer—a two-year record. Pakistan reportedly imported $17.5 billion worth of electricity last year.
In seven years, this will quadruple to $31 billion. Currently, imports account for 50% of (liquefied petroleum gas) LPG, 20% of coal, 85% of oil, and 29% of gas demand in the nation.
How Could Oil Deposits in Pakistan Benefit?
Pakistan stands to gain from the “blue economy.” The World Bank describes it as the “viable usage of marine assets that helps economies, earnings, and ocean ecological health.” In addition to oil and gas, the ocean may provide precious minerals and elements.
Signs that the research may start sooner rather than later. The senior official stated that the bid and drilling suggestions were under examination. It may take several years to drill wells and produce oil, though.
Has Anything About Oil Deposits in Pakistan been Confirmed Yet?
A former colleague of the Oil and Gas Regulatory Authority (Ogra) stated that while the nation should be “hopeful.” There is never a 100% certainty that the reserves will be found as anticipated. The magnitude and “revival pace of the supply” will determine if these Petroleum Reserves in Pakistan can meet the country’s energy demands, he said.
“If these are oil reserves, we might substitute imported oil. And if they are gas reserves, we can offset LNG purchases.” He referred to it as “naive believing” for the time being. And stated that drilling has to start and that the reserves’ possibilities need to be investigated.
He said that it may take four to five years to recover deposits from an oceanic site. And the inquiry alone would need a massive expenditure of around $5 billion.
Pakistani Government Awaits Further Verification
According to sources in Pakistan’s Petroleum Division, an investigation is required before the finding can be verified. Data from a geological study that was carried out to look for gas and oil in the water is now being examined.
According to these reports, Pakistan has already carried out many expeditions to explore the sea for oil and gas deposits. They were reported in the news as stating, “The extent of the reserves cannot be assessed until gas or oil is uncovered.”
According to a senior representative of the Oil & Gas Development Company (OGDCL), it is premature to declare that they have discovered significant Oil Deposits in Pakistan. These are considered the 4th biggest gas and oil reserves in the world. The spokesperson said, “It’s just a seismic inspection in the Arabian Sea.” “Seismic surveys only reveal information about the subsurface structures. Back in 2018, there was an attempt at this.
Top Priority of The Pakistani PM
The Pakistani government declared last month that it planned to put 20 offshore areas up for bidding to explore oil and gas. The government’s “top focus,” according to Prime Minister Shehbaz Sharif, is to explore the Crude Oil Reserves in Pakistan. This was stated earlier in July.
It was anticipated that the South Asian nation would receive $5 billion in investments. These will come from both domestic and foreign companies for the following three years.