New Delhi: Even as US President Donald Trump said in a social media post that the US has signed a deal to develop and explore “massive oil reserves” in Pakistan, the ground reality is that the neighbouring nation has very limited oil and gas reserves and meets 85 per cent of its requirement through imports.
According to Worldometer data, Pakistan had 353.5 million barrels of proven oil reserves as of 2016, placing it 52nd globally and accounting for just 0.021 per cent of the world’s total reserves.
At current consumption levels of about 556,000 barrels per day, these reserves would cover less than two years of domestic demand if the country does not import oil, according to Worldometer data.
Daily oil production is around 70,000–80,000 barrels per day, which covers only about 15–20 per cent of its own consumption.
An Indian Oil Corporation (IOC) official pointed out that the current price of petrol in Pakistan is Rs 272.15 per litre, and for high-speed diesel it’s Rs 284.35 per litre which are more than twice the prices of these fuels in India. These are among the highest prices in the world and reflects the high degree of dependence on imports.
In contrast, while the price of petrol in India is around Rs 94.77 per litre, and diesel is priced at Rs 87.67 per litre (price in Delhi which has slight variations across the states due to local taxes.)
The exploration success rate in Pakistan is low, and political, financial, and security concerns are a major concern for investors. The refining capacity in Pakistan is also limited and aging, the Indian Oil official said.
There’s some offshore and shale oil exploration potential (especially in Balochistan and near Karachi), but results have so far been inconclusive or commercially non-viable.
On Truth Social, Trump announced a deal with Pakistan to help it with development and exploration of oil reserves. “We have just concluded a Deal with the Country of Pakistan, whereby Pakistan and the United States will work together on developing their massive Oil Reserves…We are in the process of choosing the Oil Company that will lead this Partnership. Who knows, maybe they’ll be selling Oil to India some day!” he wrote on social media.
(IANS)
