Oil and gas assets to satisfy energy supplies.

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Last updated: April 17, 2019

Oil (Petroleum Product)                                                            Pakistan chiefly relies on oil and gas assets to satisfyenergy supplies.

Original assets of oil are deficient to smother strength desireof a developing economy. Consequently Pakistan needs to import spacious amountof oil and oil based items from Middle East nations particularly from SaudiArabia. The local formation of raw petroleum remained 24.02 million barrelsamid July walk FY 2016.

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Natural GasNatural gas is a spotless, safe,and dynamic state well-disposed fuel. It gives around 48 percent of the totalvital energy supply balance in the state. Pakistan has a wide-ranging gassystem of more than 11,538 km transmission, 1,14,982 km distribution and 31,058Services gas pipelines to cook the requirement of more than 7.9 million buyersthe nation over by giving, around 4 billion cubic feet for each day petroleumgas.LiquefiedPetroleum Gas (LPG) Sector: Sectorinto the LPG business has been stimulated by the direction carrying about fastconcern proceeding, storing and base of auto stations of LPG. The supervisor isassuming an essential part to shape private interest in midway and downstreamoil production.Liquefied Natural Gas (LNG) Sector.

Withan end goal to connect the covering flammable gas demand supply hole of thestate, the government is taking in LNG and in such manner a license forprogress 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 theoperation of compressed flammable gas (CNG) as a additional fuel for carkeeping in mind the end goal to switch regular humiliation, reduce isolatedtrade consumption on significance of fluid fuel and yield industry.Electricity Powerin spite of the fact that the supporting source of energy has turned out to becommanding for household as well as for all other circle like business,transportation and so forth.  PEST Analysis:Political:1)     Pakistan has ademocratically elected government where the ruling party is Pakistan people’sparty.2)     The politicalsystem of Pakistan is not strong enough due to corruption as government doesnot make effective legislation to nip the evil of corruption.3)     The public isnot pleased with their policies as they differently from the masses and theirpriority list is not up to the expectations of the people.       Economics:1)     Due to pooreconomic policy of the government, the net loss is still increasing and the governmentis taking interest in getting more loans. There are stories of corruption inthe government and private sector and the people on the top of the governmentdo not pay taxes, which has increased the diverse condition of the governmenteconomic policies.

2)     Pakistan’seconomic growth is quite slow. Inflation is at its highest, while the interestrates are their highest. This is due to low lending levels for the overallpurchasing power of the consumer is weak.

3)     Unemployment isrising regardless of the fact that labor supply is high and available at lowcosts.       Social:1)   In the developing countries like Pakistan, Healthand Education are two major issues, which need deep and special attention ofthe government.2)   The government should make the legislation for theprovision of quality education at the highly subsidized rate of the fee andthey should declare education till the tenth class in compulsory for everychild of the country it is also the prime reasonability of government toprovide health care facilities to each individual of the country.3)   There is also very week culture in Pakistan mainlypointing out to classism.

  Technological:1.     Pakistan is the big user of mobile phone and ITtechnology and numerous mobile phone companies are providing their latestmobile phones, tablets and IT products in the market.2.     Faisalabad is well known for manufacturing oftextile and it is called Manchester of Pakistan.

3.     There has been an immense technological improvementin the industrial sector and petrol and oil industry is no exception.  SWOT ANALYSISStrength:·        Developing economy: Historically, demand for petroleum products hastraced 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 thedecision 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 importsand this figure is likely to enlarge going forward. Crude prices have breachedthe $45 difficulty again and are likely to remain at around $40 per containerrange.·        Lack of freedom: Although the government has decided to provide independence to oilcompanies to enhance petrol and diesel prices within a 10% band, other productssuch as LPG and kerosene continue to stay under the government controlled costmechanism.

Opportunities:·        Equity Oil: Major oil promotion companies are now venturing into upstreaminvestigation and production actions so as to safe crude contribute.·        Natural Gas: Natural gas has the possible to be the fuel of the future withcommand outpacing supply by more than two times. Such high shortage of naturalgas provides a big chance for oil companies.         Threats:§  Competition: Until oil-marketing companies had full power over the downstreammarketing trade while private sector players were limited to only purification.§  Continuing government interference: During the first six months of the current fiscal year, the oilmarketing companies were refrained from growing product prices due to politicalreasons.     CONCLUSIONPakistan’sPower Sector is fast evolving. The production has gone 2.5 in last 10 yearplan.

Through China Pakistan Economic Corridor – CPEC up to 10,000MW would beadded to the Grid by 2020. Suppressing the Shortfall and featuring jobopportunities.   Furthermore   more  efficient   Super   Critical  Plants   are   being established with 42% Net Efficiencyand other Combined Cycle Power Stations are part of the ?Early Harvest EnergyProject.

Oil (Petroleum Product)                                                            Pakistan chiefly relies on oil and gas assets to satisfyenergy supplies. Original assets of oil are deficient to smother strength desireof a developing economy. Consequently Pakistan needs to import spacious amountof oil and oil based items from Middle East nations particularly from SaudiArabia. The local formation of raw petroleum remained 24.

02 million barrelsamid July walk FY 2016.Natural GasNatural gas is a spotless, safe,and dynamic state well-disposed fuel. It gives around 48 percent of the totalvital energy supply balance in the state. Pakistan has a wide-ranging gassystem of more than 11,538 km transmission, 1,14,982 km distribution and 31,058Services gas pipelines to cook the requirement of more than 7.

9 million buyersthe nation over by giving, around 4 billion cubic feet for each day petroleumgas.LiquefiedPetroleum Gas (LPG) Sector: Sectorinto the LPG business has been stimulated by the direction carrying about fastconcern proceeding, storing and base of auto stations of LPG. The supervisor isassuming an essential part to shape private interest in midway and downstreamoil production.Liquefied Natural Gas (LNG) Sector.

Withan end goal to connect the covering flammable gas demand supply hole of thestate, the government is taking in LNG and in such manner a license forprogress 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 theoperation of compressed flammable gas (CNG) as a additional fuel for carkeeping in mind the end goal to switch regular humiliation, reduce isolatedtrade consumption on significance of fluid fuel and yield industry.Electricity Powerin spite of the fact that the supporting source of energy has turned out to becommanding for household as well as for all other circle like business,transportation and so forth.  PEST Analysis:Political:1)     Pakistan has ademocratically elected government where the ruling party is Pakistan people’sparty.2)     The politicalsystem of Pakistan is not strong enough due to corruption as government doesnot make effective legislation to nip the evil of corruption.3)     The public isnot pleased with their policies as they differently from the masses and theirpriority list is not up to the expectations of the people.

       Economics:1)     Due to pooreconomic policy of the government, the net loss is still increasing and the governmentis taking interest in getting more loans. There are stories of corruption inthe government and private sector and the people on the top of the governmentdo not pay taxes, which has increased the diverse condition of the governmenteconomic policies.2)     Pakistan’seconomic growth is quite slow.

Inflation is at its highest, while the interestrates are their highest. This is due to low lending levels for the overallpurchasing power of the consumer is weak.3)     Unemployment isrising regardless of the fact that labor supply is high and available at lowcosts.       Social:1)   In the developing countries like Pakistan, Healthand Education are two major issues, which need deep and special attention ofthe government.2)   The government should make the legislation for theprovision of quality education at the highly subsidized rate of the fee andthey should declare education till the tenth class in compulsory for everychild of the country it is also the prime reasonability of government toprovide health care facilities to each individual of the country.

3)   There is also very week culture in Pakistan mainlypointing out to classism.  Technological:1.     Pakistan is the big user of mobile phone and ITtechnology and numerous mobile phone companies are providing their latestmobile phones, tablets and IT products in the market.2.     Faisalabad is well known for manufacturing oftextile and it is called Manchester of Pakistan.3.

     There has been an immense technological improvementin the industrial sector and petrol and oil industry is no exception.  SWOT ANALYSISStrength:·        Developing economy: Historically, demand for petroleum products hastraced 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 thedecision 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 importsand this figure is likely to enlarge going forward. Crude prices have breachedthe $45 difficulty again and are likely to remain at around $40 per containerrange.·        Lack of freedom: Although the government has decided to provide independence to oilcompanies to enhance petrol and diesel prices within a 10% band, other productssuch as LPG and kerosene continue to stay under the government controlled costmechanism.Opportunities:·        Equity Oil: Major oil promotion companies are now venturing into upstreaminvestigation and production actions so as to safe crude contribute.

·        Natural Gas: Natural gas has the possible to be the fuel of the future withcommand outpacing supply by more than two times. Such high shortage of naturalgas provides a big chance for oil companies.         Threats:§  Competition: Until oil-marketing companies had full power over the downstreammarketing trade while private sector players were limited to only purification.§  Continuing government interference: During the first six months of the current fiscal year, the oilmarketing companies were refrained from growing product prices due to politicalreasons.     CONCLUSIONPakistan’sPower Sector is fast evolving. The production has gone 2.

5 in last 10 yearplan. Through China Pakistan Economic Corridor – CPEC up to 10,000MW would beadded to the Grid by 2020. Suppressing the Shortfall and featuring jobopportunities.   Furthermore   more  efficient   Super   Critical  Plants   are   being established with 42% Net Efficiencyand other Combined Cycle Power Stations are part of the ?Early Harvest EnergyProject.

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