OIL COMPANIES IN PAKISTAN WITH FACT AND FIGURES

Petroleum reserves and oil companies in Pakistan are the economic backbone of any country. Pakistan is the world’s 33rd largest oil consumer, with an average per capita consumption of 41.9 gallons. Pakistan’s demand for petroleum products is 19 million tonnes (MT). 

Significance of Petroleum for Pakistan economy:

Pakistan meets nearly half of its petroleum needs through domestic crude oil production of imported crude at domestic petroleum oil refineries. Transportation, energy, and industry are the three industries that rely on petroleum products. Transportation consumes 59% of petroleum products, electricity consumes 32%, and industry consumes 8%. Pakistan has enormous hydrocarbon potential, the majority of which is untapped. According to the technical assessment’s estimation, the initial recoverable reserves were 1,515 million barrels of oil. Pakistan has a significant sedimentary area.

Clear and unbiased facts:

In 2019-20, Pakistan consumed 19.7 million tonnes of petroleum products against a supply of 11.6 million tonnes per year. From local refineries remaining 8.1 imported. The Oil Companies Advisory Council OCAC analyzed demand for petroleum products in 2030 will be double that of 2019. As a result, Pakistan will have to spend a lot to meet its domestic demand for petroleum products. Pakistan’s indigenous oil production meets only one-fifth of the country’s current oil needs, with the remainder supplied by high-cost imports.

Further Facts:

According to previous studies, Pakistan has sizeable oil reserves. As a result, a significant potential to increase crude oil, production exists to meet the country’s energy needs. Pakistan is estimated to have 27 billion barrels of oil reserves, both offshore and onshore, primarily in Balochistan, Sindh, and Khyber Pakhtunkhwa (KP).

According to a study directed by the United States Agency for International Development (USAID), 14 billion barrels of crude oil are technically recoverable in the Indus basin alone. Upper Punjab and lower Sindh produce oil, but production has been steadily declining. Oil production in 2021-22 will be 73,000 barrels per day, down from 98,000 barrels per day in 2017.

Furthermore:

These challenging circumstances bring an opportunity for the government to increase oil exploration and production in the country. Pakistan imports crude and refined oil because the domestic oil refining industry is limited in capacity and capability. The trend of crude and refined oil imports is likely to continue. Oil demand in Pakistan is increasing by 8% a year.

Future of oil companies in Pakistan:

Market participants are also implementing several investment strategies to meet the heightened demand for oil products. Companies are encouraged to increase their investments in Pakistan’s oil sector due to the government’s policies and support. Around the world, the oil industry is undergoing rapid change. Unconventional drilling, which increases oil production, is now possible thanks to new and innovative technologies. The rapid development of new services and business models contributes to the cost reduction of upstream oil operations, which in turn encourages market expansion.

Operators, with the most significant player being the government-owned entity, Pakistan State Oil (PSO), with a market share of 55% during 2016. Shell Pakistan Limited (Shell), Attock Petroleum Limited (APL), Total Parco Pakistan Limited/Total Parco Marketing Limited (Total), and Hascol Petroleum Limited (Hascol) are the major oil marketing companies in Pakistan. The top 5 players represent almost nine-tenths of industry sales.

Complexity in supply chain management along with the high CAPEX for volumetric growth has kept the industry structure at a level. Over the last five years, from the list of petrol companies in Pakistan, the two large OMCs (PSO and Shell) have lost significant market share to smaller OMCs indicating increasing competition from smaller players. Hascol and JINN petroleum continued their growth momentum during 2016 – 2017 and continued to outperform the industry with a substantial increase in overall and retail market share. 

What are you looking for in the Best petrol company in Pakistan?

Among some prominent, emerging petroleum companies, the best petrol company in Pakistan is ascending to new heights of success. To be recognized as the leading Oil Marketing Company through fair play, JINN petroleums, which got their OMC license from OGRA in 2016, is all set to enhance the country’s self-sufficiency in the trading of petrochemical and petroleum products. Fully confident in rendering services to the fullest satisfaction of consumers. They have developed Oil Terminals at Sahiwal and Hub for HSD and MS storage. The company has further planned to build and acquire storage in other areas to facilitate its marketing activities and supplement its storage facilities all over Pakistan.

Further:

The Oil industry is divided into two sectors, upstream and downstream. Sustained growth in the consumption of petroleum and petrochemical products is one of the major drivers for oil companies in Pakistan. Oil Companies operating on the ground can benefit from this opportunity by investing and participating in the oil trade. Major oil companies in Pakistan are working on various contracts and projects for oil pipelines to increase production capacities and maintain their position in the industry.

Most Important:

The upstream oil sector is called the ‘Exploration and Production (E&P) sector. The main operations include searching potential crude oil fields and later drilling, operating, and exploring these resources. The “Refining and Marketing” sector of the downstream economy is responsible for refining, processing, and purifying crude petroleum oil and marketing and distributing the finished goods.

Sectoral Consumption:

At around 56 percent, the transportation industry is the largest consumer of petroleum products (FY15:51%), with the power industry coming in at around 32 percent (FY15:40%). The decline in FO utilized by PEPCO and Independent Power Producers for better availability is responsible for lower power sector consumption.

Conclusion:

It wouldn’t be wrong to say that JINN petroleum can be the Best petrol company in Pakistan if it continues to stand out In order to attract customers, their commitment to introduce new technologies presents an animated color scheme and attractive pump designs to stand out, and present itself as the primary choice for consumers is remarkable.

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