Prospects of Shale Oil and Gas Production in Pakistan: A Review
22 Pages Posted: 30 Aug 2016
Date Written: August 28, 2016
Abstract
Both the shale gas and oil are the potential sources of energy. This potential is considered ‘game-changer’ in the international energy market. Pakistan is ranked among top 10 countries in the world, which has big resources of shale oil and gas, i.e. 9 billion barrel and 105 trillion cubic feet (tcf) respectively (US EIA 2013). This study aims to present an analytical view of shale oil and gas production in Pakistan while considering some key issues such as technical feasibility, economic viability, and environmental sustainability. Further, it highlights the impact of shale oil and gas exploration on water and communities.
In 2012, there was a shortage of gas (1000-15000 million standard cubic feet per day), and oil (80 million tons per annum) (Khawaja 2013). Similarly, Pakistan has to import 3.4 million tons of diesel and 4 million tons of furnace oil (PSO 2008) to meet its energy demands. While considering these aspects, this study also explores major technical and capacity constraints to domestic supplies of indigenously available shale oil and gas resources to improve energy mix and its impact on economic growth and societal changes like creation of new jobs. It also points out the policy and key investment issues (public and private partnership) for the exploration of shale gas and oil.
Keywords: Shale, Oil, Gas, Pakistan, Environment, Economics, Technology
JEL Classification: A10, A12, A13, F64, H11
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