Anindita Chatterjee
Updated on: October 8, 2024 11:50 am GMT
Pakistan has made a significant discovery in its search for natural resources, uncovering substantial deposits of oil and gas within its territorial waters. This promising finding has the potential to profoundly impact the country’s economy, following a three-year survey executed in partnership with an allied nation. The results of this survey have enabled the identification of key locations where these valuable resources are located.
Details of the Discovery
The advancement comes after extensive geological assessments that aim to assess the potential of Pakistan’s maritime territory. According to a senior security official, various departments within the government have been informed about the findings. The official characterized this initiative as a strategic effort to tap into what has been termed the “blue water economy.”
Proposals for bidding and exploration are now under review, signaling that exploration activities may commence in the near future. However, the official warned that the timeline for drilling and extracting oil from these new reserves could extend over several years, emphasizing the need for methodical planning and execution.
Potential Economic Impact
This discovery has the potential to alter Pakistan’s economic landscape significantly. Initial estimates suggest that the newly found reserves could rank among the largest globally, potentially placing Pakistan fourth in terms of oil and gas reserves. Venezuela is currently recognized for holding the largest oil reserves, estimated at approximately 3.4 billion barrels, while the United States leads in untapped shale oil.
In the global context, Saudi Arabia, Iran, Canada, and Iraq follow closely behind in terms of notable reserves. Securely accessing and capitalizing on these resources could provide Pakistan with an opportunity to reduce its reliance on imported energy.
Expert Opinions and Considerations
While the announcement has generated optimism, experts caution that the reality may differ from projections. Muhammad Arif, a former member of the Oil and Gas Regulatory Authority (Ogra), voiced a tempered enthusiasm regarding the findings. He noted that while the potential is promising, the feasibility of these reserves meeting Pakistan’s energy needs remains uncertain and heavily dependent on both their size and recovery rate.
Arif suggested that should the gas reserves prove substantial, they could effectively replace liquefied natural gas (LNG) imports. Simultaneously, the discovered oil reserves could serve as a substitute for imported oil. However, he was cautious, stating that relying on these discoveries is “wishful thinking” without comprehensive analyses and established drilling operations.
Investment and Infrastructure Challenges
Transitioning from discovery to extraction presents its own set of challenges. Experts estimate that exploration activities might require significant investments, with early estimates hovering around $5 billion. The entire process from drilling to producing tangible results could take four to five years, particularly for offshore locations. Once the presence of reserves is confirmed, further investment would be essential to develop wells and construct the necessary infrastructure for extraction and fuel production.
Future Steps in Exploration
The next steps for Pakistan involve careful evaluation and likely negotiations for potential investments in exploration companies. Developing partnerships that can contribute both technically and financially will be critical. As the government finalizes its proposals for exploration, the importance of maintaining a transparent and regulatory-compliant approach cannot be overstated.
Success in transforming these reserves into a functional energy source will hinge on multiple factors, including regulatory support, technological advancements, and efficient project management.
International Considerations
On the international stage, the discovery could also redefine Pakistan’s role concerning energy production and trade. As countries worldwide aim to transition towards energy independence and diversification, Pakistan’s newfound resources may present opportunities for exporting energy to neighboring countries and beyond. Engaging in collaborative ventures with other nations could elevate Pakistan’s stature in regional energy dynamics.
Finding oil and gas in Pakistan is a great chance for the country. To make the most of this opportunity, Pakistan needs to plan carefully, invest a lot of money, and be open about how things are done. This way, the country can use these resources to help its economy grow.
