Pakistan Ranks Among Top 10 Countries With Vast Shale Oil Reserves

Pakistan has more shale oil than Canada, according to the US Energy Information Administration (EIA) report released on June 13, 2013.

The US EIA report estimates Pakistan's total shale oil reserves at 227 billion barrels of which 9.1 billion barrels are technically recoverable with today's technology.  In addition, the latest report says Pakistan has 586 trillion cubic feet of shale gas of which 105 trillion cubic feet (up from 51 trillion cubic feet reported in 2011) is technically recoverable with current technology.

The top ten countries by shale oil reserves include  Russia (75 billion barrels), United States (58 billion barrels), China (32 billion barrels), Argentina (27 billion barrels), Libya (26 billion barrels), Venezuela (13 billion barrels), Mexico (13 billion barrels), Pakistan (9.1 billion barrels), Canada (8.8 billion barrels) and Indonesia (7.9 billion barrels).

Pakistan's current  annual consumption of oil is only 150 million barrels. Even if it more than triples in the next few years, the 9.1 billion barrels currently technically recoverable would be enough for over 18 years. Similarly, even if Pakistan current gas demand of 1.6 trillion cubic feet triples in the next few years, it can be met with 105 trillion cubic feet of  technically recoverable shale gas for more than 20 years. And with newer technologies on the horizon, the level of technically recoverable shale oil and gas resources could increase substantially in the future.

Source: US EIA Report 2013

As can be seen in the shale resource map, most of Pakistan's shale oil and gas resources are located in the lower Indus basin region, particularly in Ranikot and Sembar shale formations. 

Source: US EIA Report 2013

Since the middle of the 18th century, the Industrial Revolution has transformed the world. Energy has become the life-blood of modern economies. Energy-hungry machines are now doing more and more of the work at much higher levels of productivity than humans and animals who did it in pre-industrial era. Every modern, industrial society in history has gone through a 20-year period  where there was extremely large investment in the power sector, and availability of ample electricity made the transition from a privilege of an urban elite to something every family would have. If Pakistan wishes to join the industrialized world, it will have to do the same by having a comprehensive energy policy and large investments in the power sector. Failure to do so would condemn Pakistanis to a life of poverty and backwardness. 

The availability of large domestic shale oil and gas expands the opportunity to reduce Pakistan's dependence on imports to overcome the current energy crisis and to fuel the industrial economy.  But it'll only be possible with high priority given to investments in developing the energy sector of the country. 

Related Links:

Haq's Musings

US EIA International Data on Per Capita Energy Consumption

Pakistani Guar in Demand For American Shale Fracking

Affordable Fuel for Pakistan's Electricity 

Pakistan Needs Shale Gas Revolution

US Census Bureau's International Stats  

Pakistan's Vast Shale Gas Reserves

US AID Overview of Pakistan's Power Sector 

US Can Help Pakistan Overcome Energy Crisis

Abundant and Cheap Coal Electricity

US Dept of Energy Report on Shale Gas

Pakistan's Twin Energy Crises

Pakistan's Electricity Crisis

Pakistan's Gas Pipeline and Distribution Network

Pakistan's Energy Statistics

US Department of Energy Data

Electrification Rates By Country 

CO2 Emissions, Birth, Death Rates By Country

China Signs Power Plant Deals in Pakistan

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Pakistan Energy Industry Overview

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Comparing US and Pakistani Tax Evasion

Pakistan's Oil and Gas Report 2010

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International CNG Vehicles Association

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Correlation Between Human Development and Energy Consumption


Riaz Haq said…
Here's an ET report on a partnership for off-shore drilling for oil in Pakistan:

State-run Pakistan Petroleum Limited (PPL) and Singapore-based oil and gas company Orion Energy are likely to form a joint venture for offshore drilling in Pakistan.
Orion Energy, an independent oil and gas company headquartered in Singapore and with offices in London, is currently exploring scores of opportunities in Latin America.
According to sources, Orion had expressed interest in investing in Pakistan at the Pakistan Exploration Bidding Round 2012, held in London in December 2012 by the Pakistan Peoples Party-led coalition government.

On the sidelines of the event, Orion Energy Director David M Thomas, and his lawyer Nadim Khan, met the PPL managing director. The interaction was followed by another meeting between representatives of PPL and Orion, chaired by the director general of petroleum concessions.
In the Petroleum Policy 2012, the government had increased the gas price for Offshore Shallow Zone to $7 per million British thermal units (mmbtu), for Offshore Deep Zone to $8 per mmbtu and for Offshore Ultra Deep Zone to $9 per mmbtu. A bonanza of $1 per mmbtu will be given to exploration companies for the first three offshore discoveries under the policy.
Orion Energy had expressed interest in exploring offshore areas in Pakistan in partnership with PPL because of the latter’s good reputation and extensive experience in exploration and production of gas.
Following extensive technical discussions and encouraging feedback from PPL, the two companies agreed to initially undertake a joint study to evaluate prospects of offshore drilling and identify prospective areas for comprehensive exploration work.
Orion Energy had also expressed a desire to come to Pakistan for technical discussions with PPL on offshore exploration and on matters pertaining to forming a joint venture to carry out the joint study. Both sides had also finalised a joint study agreement, which had been ready to be signed by officials.
However, the visit was delayed due to general elections in Pakistan. It was only later, in the first week of June, that an Orion team reached here.
Technical staff from Orion and PPL will undertake the study, based on the geological data available with the two companies and the directorate general of petroleum concessions. The study will be completed in about four months, and its main objective will be to identify potential offshore areas for detailed evaluation through an exploration work programme and the financial obligations that will entail.
Riaz Haq said…
Here's an OilPrice editorial on oil and gas potential in FATA:

Pakistan’s Tribal Areas (FATA) and Frontier Regions (FR) are believed to have massive reserves of oil and natural gas—which Pakistani officials have suddenly become very keen to demonstrate. But this is a highly restive, war-torn area where one right move could make all the difference, and one wrong move could ignite a conflict with irreversible consequences.

For now, the area remains unexplored and it was only in 2008 when Pakistani geologists began to study the area in earnest, with the support of the local authorities in the Federally Administered Tribal Areas (Fata) and the Frontier Region (FR). The results of this research were collected, processed and digitized in June 2012. The geologists discovered seven new oil and gas seepages during the mapping. The geologists also claim that 11 oil and gas exploration companies have already reserved 16 blocks in Fata.

The potential:

• Pakistani geologists say Fata in particular is poised to become a “new oil state” whose production could rival Dubai’s in only five years
• The FR is bursting at the seams with gas, so they say

Here’s what the interest looks like so far:

• 17 companies have initiated operations in Fata/FR (in Khyber, Orakzai, North and South Waziristan, Peshawar, Kohat, Bannu, Tank and DI Khan)
• Tullow has been active in Pakistan since 1991,…
Riaz Haq said…
Here's an Express Tribune piece on oil and gas prospects in FATA:

The Federally Administered Tribal Areas (Fata) and Frontier Regions (FR) have enormous reserves of minerals, oil and natural gas that can augment economic activity in the war-torn areas, a research project concluded.
Talking to The Express Tribune ‘Source Rock Mapping and Investigation of Hydrocarbon Potential (SRMIHP)’ Project Coordinator Dr Fazal Rabi Khan said that exploration and excavation of oil and gas will introduce a new era of development and prosperity in the tribal areas.
“There can be many job opportunities created for people in the tribal belt if mineral exploration and extraction is pursued properly,” said Khan, who is also the chairman of the Geology Department in Abdul Wali Khan University Mardan (Palosa Campus).
The project was launched in 2008 under an agreement between the Fata Development Authority and National Centre of Excellence in Geology University of Peshawar. The project, which was completed at an estimated cost Rs40 million, was completed in June 2012.
Khan said that their objectives include identifying hydrocarbon generating rocks and its distribution in the region, preparing a geo-database regarding hydrocarbon potential and generating a systematic data to attract oil and gas companies for exploration.

The project has successfully collected, processed and digitised the data as a result of which, 80% of the project area has been mapped digitally. “This mapping has led to the discovery of seven new oil and gas seepages.”
He added that 11 oil and gas exploration companies have reserved 16 blocks in Fata, which go across from FR Peshawar and Kohat to Khyber, Orakzai, Bannu, Tank and up to North and South Waziristan.

He said that recently 17 oil and gas exploration companies initiated their operations in Khyber, Orakzai, North and South Waziristan agencies as well as in FR Peshawar, Kohat, Bannu, Tank and DI Khan.
Khan said that Mari Gas Company, HYCARBEX Inc, Oil and Gas Development Company, Tullow, Saif Energy, MOL Pakistan Oil and Gas, Orient Petroleum International, Pakistan Petroleum, ZHEN, ZAVER and others are currently working in Fata.
Oil and Gas Development Company (OGDC) will start drilling in these areas for the exploration of oil and gas reservoirs. The chairman said that the foreign oil company, Tullow, has obtained a licence for the exploration of oil and gas in North Waziristan Agency and Bannu, while MOL has shown interest in Khyber Agency, Kohat and Peshawar.
“Although law and order problems can become a hindrance, the project can be managed considering its importance,” he added.....
Riaz Haq said…
Here's a News report on rising oil production and declining gas production in Pakistan:

KARACHI: Pakistan’s oil production in the fiscal year ended June 30, 2013 saw sharpest growth in 22 years of 14 percent. However, gas production decreased by almost three percent.

“The country’s FY13 oil production grew by 14 percent to average 76,000 barrels per day, which is well above historical 10-year oil production at cumulative average growth rate of one percent,” Atif Zafar at JS Global said. “But, the same was largely overshadowed by gas shortages in the country since gas production shrank by three percent to 4,100 million metric cubic feet per day (mmcfd).”

The decline is the rampant since 1987 mainly owing to natural depletion of existing fields.Pakistan’s proven recoverable oil and gas reserves stand enough only for 13 and 18 years, respectively, he said. However, analysts expect upgrade of reserves in the upcoming reserve appraisal.

The Oil and Gas Development Company (OGDC) recorded the highest production gains – based on barrels of oil equivalent – (up by three percent), whereas production of Pakistan Petroleum Limited (PPL) and Pakistan Oilfields Limited (POL) fell four percent and nine percent, respectively.

Based on provisional numbers for the last quarter of the fiscal year, the country’s oil production is up by only one percent, while gas production decreased by seven percent.

During the quarter, oil production of POL increased by 13 percent and gas by three percent, while OGDC’s oil production went up by two percent and gas by nine percent. Additionally, PPL’s oil production scaled up by four percent, while gas output was down by nine percent in the last quarter.

“We expect further improvement in oil production by an estimated 11 percent in the current fiscal year. However, additional gas production will largely be offset by natural depletion,” Zafar said.
Riaz Haq said…
US is where the shale gas extraction technology was developed. Almost all of the world's shale gas today is being produced in the US.

However, other companies elsewhere, particular Polish companies, are very active in starting to do shale and tight gas exploration. Here's one example in Pakistan:

KARACHI - Pakistan is expected to start producing 30 Million Cubic Feet per day (MMCFD) of tight gas in July-August this year from Sajawal gas field located in the district of Dadu. According to media reports quoting government officials this would be first time the country would be producing tight gas. Pakistan has estimate tight gas reserves of about 40 Trillion Cubic Feet (TCF). The first tight gas sales and purchase agreement was signed on November 13, 2012 in Islamabad for production from a tight gas reservoir in Pakistan from Kirthar Block in Dadu, Sindh. The Kirthar Block is jointly owned by Polish Oil and Gas Company (PGNiG), which has 70 percent stake and Pakistan Petroleum Limited owns 30 percent. For the implementation of this project, SSGC has been awarded a contract for the construction of 52-km pipeline from Kirthar Block’s Rehman Gas Field which will be integrated into SSGC’s system at Naing Valve Assembly through the Bhit gas pipeline.

Here's an excerpt of a paper describing the difference between shale gas and tight gas:

All Shale Gas reservoirs are not the same. There are no typical Tight Gas reservoirs. These two statements can be found numerous times in the literature on shale gas and tight gas reservoirs. The one common aspect of developing these unconventional resources is that wells in both must be ‘hydraulically fractured’ in order to produce commercial amounts of gas. Operator challenges and objectives to be accomplished during each phase of the Asset Life Cycle (Exploration, Appraisal, Development, Production, and Rejuvenation) of both shale gas and tight gas are similar. Drilling, well design, completion methods and hydraulic fracturing are somewhat similar; but formation evaluation, reservoir analysis, and some of the production techniques are quite different.

Much of the experience in shale and tight gas has been developed in the US and in Canada, to a lesser extent; and most of the technologies that have been developed by operators and service companies are transferable to other parts of the world....
Riaz Haq said…
Pakistan's Sui Southern Gas Co (SSGC) signs first ever tight gas agreement with PPL and Polish Gas consortium for 20 million cubic feet of gas per day starting in 2013:

Pakistan joins the Tight Gas Club - A landmark achievement by SSGC
SSGC is now ready to receive its first gas delivery from Rehman Gas Field. The major scope of this project, Pakistan’s first ever Tight Gas Project, involved construction of 6”/8” dia x 52 Km pipelines that include flow lines and export pipeline. This project was conducted in one of the hardest terrains and under toughest climatic conditions where temperature soared to as high as 50oC. A maximum of 20 mmcfd will be injected in the SSGC’s system through the Field.
Other salient features of the project:
· Objective: This achievement is also in line with MD’s strategic objective of FY 2012-13
· Agreement: The project commenced after the agreement signed between SSGC and a consortium of Polish Oil and Gas Company and Pakistan Petroleum Ltd. (PPL) in November 2012.
· Main Departments involved in commissioning: Planning and Development, Projects and Construction, Legal, Finance, HSEQA and L&EM Departments.
· Tendering Process: SSGC participated in the competitive bidding process last year and won the pipeline project bid (Rs 235 million).
· Resources: The Company utilized in-house resources, engaging the manpower and equipments for a period of 6 months since SSGC had no major transmission project for construction during this time.
· The Project enriched SSGC’s portfolio as an enterprising company.

Riaz Haq said…
Here's an Upstream report on the start of tight gas production by Polish firm PGNiG in Pakistan:

Polish explorer PGNiG has commenced production in Pakistan for the first time, bringing two wells online at the Rehman field in southern Pakistan.
The Kirhtar licence area wells are producing on test at an expected rate of around 100 million cubic metres of gas per year.

The gas is being fed directly to the Pakistani transmission system, with the field’s entire output being sold to Pakistani authorities, the Warsaw-headquartered explorer said.

Test output is due to last 22 months, with total gas resources at the licence area estimated at around 12 billion cubic metres.

Situated in the western part of Sindh province, the Kirthar licence is operated by PGNiG on a 70% stake, with Pakistan Petroleum on 30%.

Pakistan is the explorer’s second international location for operated production after Norway.
Riaz Haq said…
Here's a Reuters' report on tight gas revolution in China:

SULIGE, China (Reuters) - At the heart of the vast desert region of Inner Mongolia, half a dozen young engineers from PetroChina <0857.HK> watch huge, flat screens in a brightly lit central control office that oversees 5,000 wells at China's largest gas field.

Just a few years ago, two workers travelling in a truck would need three days to check conditions at 50 wells at the Sulige field, which spans 20,000 sq km (7,700 sq miles) in the middle of Maowusu, China's third-largest desert: now, the task can be done in just five minutes.

Remote Sulige, which means "uncooked meat" in Mongolian, is testament to China's success in developing its giant reserves of so-called "tight gas", part of a drive to dramatically boost consumption of cleaner burning natural gas to help replace dirty coal and costly oil imports.

Like the better-known shale gas revolution in the United States, tight gas is transforming China's gas production - accounting for a third of total output in 2012 -- and will form the backbone of the country's push to expand so-called "unconventional" gas production nearly seven-fold by 2030.

The speed and size of the boom has outstripped forecasts and has been led by local firms developing low-cost technology and techniques, already being rolled out by Chinese companies in similar gas fields outside of China.

Like shale gas, although less difficult to extract, tight gas is an unconventional deposit that needs special technology such as horizontal drilling or fracturing to free gas trapped in tiny cavities in rocks like sandstone.

Output of tight gas hit 30 billion cubic metres (bcm) in 2012 -- nearly a third of China's total gas output -- and is expected to rise to 100 bcm by 2030, leading an unconventional fuel boom ahead of shale or coal-seam gas.

"We found our own approach to develop tight gas," said Hu Wenrui, a former Petrochina vice president and a key architect behind developing the deposits. "With this, China's tight gas has entered the fast track."

Forecasts by the China Academy of Engineering (ACE) put 2020 output of tight gas at 80 bcm, more than a forecast 50 bcm of coalbed methane and 20 bcm of shale gas combined.

Despite the excitement over shale gas, of which China holds larger reserves than the United States, the world's top energy user has taken only baby steps to exploit the more complex deposits, drilling just 80 or so wells by the end of last year.

Its output of coal-seam gas continues to disappoint after two decades of development, reaching about 6.5 bcm in 2012.....
Riaz Haq said…
Here's an ET story on pricing of domestic shale gas in Pakistan:

Pakistan Petroleum Limited (PPL) and Italy’s Eni have calculated that the price of shale gas should be $14 per million British thermal units (mmbtu), which has been rejected by the government as too much for the country’s existing tariff regime to absorb, an official told The Express Tribune.
The price was determined on the basis of expenditure required to drill for hard-to-reach shale gas reservoirs following a rise in interest in tapping this potential on the back of reports that Pakistan has massive reserves.
“There has to be a steady transition from conventional gas to tight and then finally to shale gas,” said Moin Raza Khan, Deputy Managing Director of PPL and head of its exploration operation. “This has to be a slow process because of the economics involved in the operations.”

Almost all the 4,000 million cubic feet per day (mmcfd) of gas produced in Pakistan comes from conventional gas fields, which can be reached relatively easily. Tight gas is trapped in impermeable rocks whereas gas trapped in shale formation is called shale gas.
Average consumer gas price is around $4 per mmbtu, undermining the prospects for shale gas to be brought into the system at this stage, Khan said.
“One reason why the US produces shale gas in abundance is because of the economies of scale. We would have to do that to make it feasible and this can’t happen overnight,” he said.

So for the time being exploration firms including PPL are focusing on tight gas, for which the government has increased the price by 40% through a separate petroleum policy.
First tight gas flows entered the transmission and distribution system in June this year as production of 15 mmcfd started from Kirthar block, which is a joint venture between a Polish firm and PPL.
Sui dilemma
For more than 57 years, Sui gas field fuelled the economy, so much that natural gas became synonymous with Sui gas. And now it has depleted.
“If you ask me I think the gas pressure will sustain for another 10 to 12 years,” Khan said. “The pressure used to be 1,300 psi (pounds per square inch), which has come down to only 300 psi.”
To tackle that problem, the company regularly installs compressor plants on the wells to maintain the pressure. “We are considering installing equipment for 100 psi and even 50 psi.”
Offshore expedition
PPL along with its local and foreign partners plans to drill a well in offshore Block-G in the Indus, the world’s second largest delta after the Bay of Bengal.
“Having a discovery offshore is very important,” he said, referring to the successive past failures. “So far, 13 wells have been drilled in Indus. Gas was found only in one and that wasn’t commercially feasible to take out.”
Pakistan has a coastline spread over 1,990 km and sub-divided into Indus and Makran deltas. Indus delta alone is spread over 1.1 million square kilometres. Pakistan’s area covers over 240,000 sq km of this....
Riaz Haq said…
Here's a CNBC report on Prince Walid Bin Talal's concern about growing shale oil and gas hurting Saudi economy:

Saudi billionaire Prince Alwaleed bin Talal warned that the Gulf Arab kingdom needed to reduce its reliance on crude oil and diversify its revenues, as rising U.S. shale energy supplies cut global demand for its oil.

In an open letter to Oil Minister Ali al-Naimi and other ministers, published on Sunday via his Twitter account, Prince Alwaleed said demand for oil from OPEC member states was "in continuous decline".

He said Saudi Arabia's heavy dependence on oil was "a truth that has really become a source of worry for many", and that the world's biggest crude oil exporter should implement "swift measures" to diversify its economy.

(Read more: Oil prices jump as US crude takes bigger role on world oil stage)

Prince Alwaleed, owner of international investment firm Kingdom Holding, is unusually outspoken for a top Saudi businessman.

But his warning reflects growing concern in private among many Saudis about the long-term impact of shale technology, which is allowing the United States and Canada to tap unconventional oil deposits which they could not reach just a few years ago. Some analysts think this may push demand for Saudi oil, as well as global oil prices, down sharply over the next decade.

Over the past couple of years the Saudi government has taken some initial steps to develop the economy beyond oil - for example, liberalising the aviation sector and providing finance to small, entrepreneurial firms in the services and technology sectors.

Nowhere Is Immune from Unrest: Saudi Prince
Saudi Prince Alwaleed Bin Talal, talks to CNBC about turmoil in the Middle-East and the price of oil.
Naimi said publicly in Vienna in May that he was not concerned about rising U.S. shale oil supplies. Prince Alwaleed told Naimi in his open letter, which was dated May 13 this year, that he disagreed with him.
"Our country is facing a threat with the continuation of its near-complete reliance on oil, especially as 92 percent of the budget for this year depends on oil," Prince Alwaleed said.

(Read more: Don't mess with West Texas: US oil to keep outpacing Brent)

"It is necessary to diversify sources of revenue, establish a clear vision for that and start implementing it immediately," he said, adding that the country should move ahead with plans for nuclear and solar energy production to cut local consumption of oil.

The shale oil threat means Saudi Arabia will not be able to raise its production capacity to 15 million barrels of oil per day, Prince Alwaleed argued. Current capacity is about 12.5 million bpd; a few years ago the country planned to increase capacity to 15 million bpd, but then put the plan on hold after the global financial crisis.

While most Saudi officials have in public insisted they are not worried by the shale threat, the Organization of the Petroleum Exporting Countries (OPEC) has recognised that it needs to address the issue.

(Read more: OPEC ministers: falling demand is our top concern)

In a report this month, OPEC forecast demand for its oil in 2014 would average 29.61 million bpd, down 250,000 bpd from 2013. It cited rising non-OPEC supply, especially from the United States.

At its last meeting in Vienna in May, OPEC oil ministers spent time discussing shale technology and set up a committee to study it.
Riaz Haq said…
Pakistan has sent samples of shale gas to the United States to determine the prospects of reserves of this untapped energy source following encouraging estimates given by the US Energy Information Administration (EIA), officials say.
According to the EIA assessment, Pakistan holds massive shale gas reserves estimated at 51 trillion cubic feet (tcf), close to the conventional gas reserves of 58 tcf.

At present, the government is conducting a study with the technical assistance of US Agency for International Development to prove the presence of huge shale gas deposits in the country.
Sources disclose that USAID has provided $1.8 million in technical assistance for undertaking the study. “Some samples have been sent to the US and research work will be completed in one year,” an official said, adding they were also looking for adopting US technology.
Washington is also imparting technical training to Pakistani officials and employees and engineers of public sector oil and gas companies.
The Ministry of Petroleum and Natural Resources has sent a summary to the Economic Coordination Committee (ECC) of the cabinet, seeking the go-ahead for initiating a pilot project to search and consume the shale gas potential. The move is aimed at gradually bridging the yawning gap between demand and supply of energy.
Shale gas is natural gas that is found trapped within shale formations. It has low permeability compared to conventional reserves, that’s why it does not come out easily and a specific amount of investment and pricing are required to encourage its exploitation.
At present, Pakistan is not producing shale gas and needs to undertake significant initial work to tap this energy resource.
The US, after the discovery of massive shale gas deposits there in recent years, has become a gas-exporting country. In future, reports say, it will experience a boom in shale oil production as well and will become the largest oil producer.
Officials point out that Pakistan will offer $12 per million British thermal units (mmbtu) to gas exploration and production companies under the pilot programme, a price that is close to the cost of gas to be imported from Iran under the Iran-Pakistan pipeline project.
“A policy framework has been prepared and its approval will be sought from the ECC in its upcoming meeting,” an official of the petroleum ministry told The Express Tribune.
According to the official, exploration companies have already found some traces of shale gas during the search for conventional gas as 10% to 12% of shale gas appears on upper faces of conventional gas.
Experts suggest that Pakistan has consumed around 40% of conventional gas reserves and shale gas is the most viable option to meet growing energy needs.
A study conducted by a group of exploration and production companies says the production of shale gas will be economical at about 80% of the price of Brent crude, but this will have to be brought down to 70%.
Apart from shale gas, the government is also planning to drill 400 wells in the next four years in an effort to enhance the country’s oil and gas production.
Though in the past one year new gas deposits had been found, total production of the country stood at almost the same level at four billion cubic feet per day because of depletion of reserves in old fields.
According to officials, the country has added 500 million cubic feet of gas per day (mmcfd) from new finds, but a quantity more than that has been depleted. Therefore, the impact of additional 500 mmcfd is not reflected in overall production.
However, oil output has risen to near 100,000 barrels per day compared to 74,000 barrels per day earlier.
Riaz Haq said…
Here's a Texas news story about Pakistan seeking help of a Pakistani-American oilman in Midland, Tx to develop Pakistani shale oil and gas:

Among those drawn to the Permian Basin is Jalil Abbas Jilani, Pakistan’s ambassador to the United States, who made a brief trip to Midland Wednesday.

“Pakistan has huge oil and gas reserves and we’re looking at this area for investors interested in joint ventures,” explained the ambassador, speaking by phone as he headed to the airport to fly to Houston. He was accompanied by Afzaal Mahmood, general consul for Pakistan stationed in Houston.

Jilani said he was impressed “by the things happening in Midland” and that he was warmly received at the luncheon attended by local oil men, including Don Evans as well as Midland Mayor Jerry Morales and Jose Cuevas, owner of JumBurrito. He said he hopes local businesses will consider participating in what he described as significant opportunities in Pakistan.

It’s estimated Pakistan holds total conventional and unconventional reserves of about 160 trillion cubic feet equivalent.

Anwar, a native of Pakistan, explained that the ambassador was making an “exculpatory” visit to Midland to gauge interest in helping Pakistan develop its unconventional hydrocarbons.

“They have an acute shortage of natural gas. They used to have conventional gas reserves, but with population growth and economic expansion,” they’re experiencing a shortfall, Anwar said.

The U.S. Energy Information Administration cited a Pakistani government report that the country had a natural gas shortfall of 912 billion cubic feet in 2013, though its dry natural gas production has grown by over 80 percent over the last decade to 1,462 Bcf in 2012.
Riaz Haq said…
#Pakistan confirms it has 105 trillion cubic ft #shale gas, 58 billion barrels of shale oil reserves #energy

Pakistan has confirmed recoverable reserves of around 200 trillion cubic feet (TCF) of natural gas and around 58 billion barrels of oil in its shale structure — many times larger than existing conventional gas reserves of around 20 TCF and 385 million barrels of oil.

This was stated by Minister for Petroleum and Natural Resources Shahid Khaqan Abbasi at a press conference held here on Thursday to explain main findings of a recently concluded Shale Gas Study based on actual data of existing wells.

“The conclusion (of the study) is that Pakistan has huge potential of shale gas and oil which is much bigger than previous estimates of the United States Energy Information Administration (USEIA) and technology is available at home to produce this resource,” he said.

Also read: Oil and gas reserves found in Mianwali

Mr Abbasi said the country had a massive potential of 10,159 TCF shale gas and 2.3tr barrels of oil. He said the USEIA had reported in April 2011 the presence of 206 TCF shale gas in lower Indus Basin out of which 51 TCF was termed technically recoverable.

However, in June 2013 the USEIA revised the shale gas resource in Pakistan at 586 TCF in place out of which 105 TCF was tipped as risked technically recoverable and also included 9.1bn barrels of shale oil risked technically recoverable out of 227bn barrels shale oil in place.

He said a shale gas study initiated in January 2014 with the support of USAID had been completed. It proved that Pakistan had 10,159 TCF of shale gas resource and 2,323bn barrels of shale oil.

He said the findings were reached when recoverable data of 1,611 wells were collected and shale formation of 1,312 wells through drill was examined. The study covered lower and middle Indus Basin, geographically spread over Sindh, southern Punjab and eastern Balochistan. He said 70 per cent of wells data were used to develop the study.

The minister said the samples were sent to New Tech Laboratory in Houston to verify shale gas and oil resource in place. The study confirmed that Pakistan had the potential of shale gas and oil which was more than expectations.

He said Pakistan had the technology for exploring conventional oil and gas that could be used for exploiting shale oil and gas. However, the country requires more technology for exploiting shale oil and gas resource on a larger scale. He said that real challenges were environmental issues, availability of water and higher cost of drilling. He said one well required 3-8m barrels of water.

Shale gas will cost $10 per Million British Thermal Unit. “We have assigned OGDCL and PPL to explore shale gas and oil from one well to determine cost of extracting them.”

Responding to a question, Mr Abbasi said the natural gas would be available only for domestic consumers in Punjab and even they would not get it between 10pm and 5am. The demand of gas in domestic sector in Punjab is about 950mmcfd, but supplies will be around 650 mmcfd and the difference would need to be met through pressure management.

He said the power plants and fertiliser units would be run on LNG. “CNG sector may also get LNG if supply is available,” he said, adding that captive power plants would also be switched to LNG.

In reply to another question, he said a transparent process had been followed in awarding LNG contract and all required information and record were provided to the National Accountability Bureau. “I have been engaged personally in process of LNG and, therefore, take full responsibility and am available for any questioning or accountability,” he said.

He said that a summary had also been moved to the Council of Common Interests to approve regulation of LPG prices to provide relief to consumers but the CCI had not met for 10 months.
Riaz Haq said…
#Pakistan has 10,159 trillion cubic feet of #shale gas & 3.2 trillion barrels of shale oil reserves: #USAID #energy …

Pakistan has massive deposits of 10,159 trillion cubic feet (tcf) of shale gas and 2.3 trillion barrels of oil – estimates that are several times higher than figures given by the US Energy Information Administration (EIA), reveals a study conducted with the help of US Agency for International Development (USAID).

EIA had reported in April 2011 that 206 tcf of shale gas was present in the lower Indus Basin, of which 51 tcf were technically recoverable.

However, in June 2013, EIA revised the estimate upwards to 586 tcf, of which 105 tcf were tipped as technically recoverable. Apart from gas, EIA also saw the presence of 9.1 billion barrels of shale oil that were technically recoverable out of the estimated deposits of 227 billion barrels.

Speaking at a press conference, Petroleum and Natural Resources Minister Shahid Khaqan Abbasi said the study was undertaken with the support of USAID in January 2014, and was completed in November this year.

He said the study confirmed that Pakistan had 10,159 tcf of shale gas and 2,323 billion barrels of oil reserves.

“Risked technically recoverable resource is 95 trillion cubic feet of shale gas and 14 billion barrels of shale oil,” Abbasi said, adding the data of 1,611 wells had been collected and shale formation of 1,312 wells was done through drilling.

He said 70% of data was used to develop the study and samples were sent to the New Tech laboratory in Houston, US for assessment. “Pakistan has the potential to produce shale gas and oil, which is more than expectations,” he remarked.

Abbasi insisted that the technology in Pakistan for exploring conventional oil and gas deposits could also be used for extracting shale reserves. Still, more technology was required for producing shale oil and gas on a large scale.

He cited environmental issues, provision of water and high cost of drilling as the real challenges. A well requires 3 to 8 million barrels of water.

“We have water but the real issue is its disposal,” he said, adding shale gas would cost $10 per million British thermal units. However, the cost will come down with the increase in recovery of untapped deposits.

He said the world was exploring shale gas and oil and Pakistan also wanted to harness that potential. “We have asked OGDC (Oil and Gas Development Company) and PPL (Pakistan Petroleum Limited) to extract shale gas and oil from a well in order to determine its cost.”

A policy for shale deposits will be formulated after the cost of drilling is determined.

According to Abbasi, Pakistan has 20 trillion cubic feet of conventional gas and 385 million barrels of oil. “Gas is enough to meet the needs for 15 years at the existing pace of production,” he said.

Adviser to Ministry of Petroleum Zaid Muzaffar revealed that OGDC was working on one conventional gas well in a bid to find shale gas and oil. “We hope it will get results in two to three months.”

A well needs $2 to $3 million of additional cost to reach the shale reserves.

Gas supply in winter

Abbasi said gas would be available in Punjab to domestic consumers only and liquefied natural gas (LNG) would be consumed to run power and fertiliser plants.

Compressed natural gas (CNG) stations may get LNG if it was available and captive power plants would also be switched to this fuel, he said.

The minister stressed that the petroleum ministry had followed a transparent process in the award of LNG contract. It has provided all information to the National Accountability Bureau, which has asked for a presentation.

He revealed that the ministry had sent a summary to the Economic Coordination Committee for deregulating oil prices, but it was turned down. “We are looking at the petroleum situation again to assess whether it should be deregulated or not.”
Riaz Haq said…
Drilling of first #shale oil& gas wells starts in #Sindh, #Pakistan: Minister Abbasi | Business Recorder …

The state-owned Exploration and Production (E&P) companies; Pakistan Petroleum Limited (PPL) and Oil and Gas Development Company Limited (OGDCL), have started drilling of country''s first ever shale oil/gas well in Sindh. This was stated by Federal Minister for Petroleum and Natural Resources Shahid Khaqan Abbasi, who was flanked by State Minister for Petroleum Jam Kamal Khan and Advisor Petroleum Ministry Zahid Muzafar, while addressing a press conference here ion Thursday.

He said that in a new study undertaken by Director General Petroleum Concession (DGPC) with financial support from United States Agency for International Development (USAID) the shale gas revised in place resources of the country stand at 10,159 Trillion Cubic Feet (TCF) against previous estimated resources of 586 TCF. The minister said that out of this an estimated 200 TCF of shale gas resources are recoverable against 105 TCF of previous study.

Advisor Petroleum Ministry Zahid Muzafar, who is also Chairman Board of Directors OGDCL, in response to a question on the completion of first shale oil/gas well of the country said that it would be completed within four to five months and after the completion of first well the government will be in a position to determine wellhead price for shale gas/oil. He added that it would be around $10 per Million British Thermal Unit and on the basis of the pilot project the government will devise shale oil/gas policy to formally invite the local as well as international E&P companies to invest in the sector. Abbasi said that the new study had put the shale oil resources at 2,323 Billions of Stock Tank Barrels (BSTB) of which technically recoverable resources were 58 BSTB and risked technically recoverable resources estimated at 14 BSTB.


Talking to reporters on the occasion DGPC Saeedullah Shah said that the US Energy Information Administration (USEIA) in April 2011 reported presence of 206 TCF Shale Gas in Place Resource in Lower Indus Basin out of which 51 TCF were technically recoverable. However, in June 2013, USEIA revised Shale Gas resource in Pakistan as 586 TCF in place out of which 105 TCF were tipped as risked technically recoverable and also included 9.1 Billion Barrel Shale Oil risked technically recoverable resource out of 227 Billion Barrel Shale Oil in place.

The DGPC added that to get authenticate Shale Gas Resources in the country, Shale Gas Study with financial support from USAID was initiated in January 2014. The objectives of the study were to (i) validate Shale Gas Resource estimate of USEIA, (ii) assess availability of required technology and infrastructure for Shale Gas operations and (iii) formulate guidelines for Shale Gas Policy. The study was completed in November 2015 with a total cost of $2.2 millions. The study covered lower and middle Indus basin which geographically spread over Sindh and southern part of Punjab and eastern part of Balochistan province. Total area under the study was 271,700 km, which constitutes 33 percent of total sedimentary area of Pakistan. Under the study, detailed analysis of 124 wells were carried out including laboratory analysis on Shale Cores and Cuttings in USA. The study has confirmed presence of substantial Shale Gas and Shale Oil as under:

In place resource: Free gas (TCF), 3,778, adsorbed gas (TCF), 6,381Total gas (TCF), 10,159 and Oil (BSTB), 2,323 of which technically recoverable resource include free gas 188 TCF and Oil 58 BSTB. Risked technically recoverable resources are free gas 95 TCF and oil 14 BSTB.
Riaz Haq said…
Pak shale gas, oil reserve far higher than past estimate

Pakistan has around 200 trillion cubic feet of recoverable reserve of natural gas and around 58 billion barrels of oil in its shale structure which is higher than estimated previously, Minister for Petroleum and Natural Resources said.
Sharing findings of a recent Shale Gas Study, Minister for Petroleum and Natural Resources Shahid Khaqan Abbasi said the new data shows that reserves were many times larger than existing conventional gas reserves of around 20 trillion cubic feet (TCF) and 385 million barrels of oil.
A shale gas study initiated in January 2014 with the support of United States Agency for International Development (USAID) had been completed, proving that Pakistan had 10,159 TCF of shale gas resource and 2,323 billion barrels of shale oil.
“The conclusion (of the study) is that Pakistan has huge potential of shale gas and oil which is much bigger than previous estimates of the United States Energy Information Administration (USEIA) and technology is available at home to produce this resource,” he said.
He also said the USEIA had reported in April 2011 the presence of 206 TCF shale gas in lower Indus Basin out of which 51 TCF was termed technically recoverable.
USEIA in June 2013 revised it saying that the shale gas resource was at 586 TCF, out of which 105 TCF was tipped as risked technically recoverable.
It also included 9.1 billion barrels of shale oil risked technically recoverable out of 227 billion barrels shale oil in place.
Abbasi said Pakistan’s conventional oil and gas exploration technology could be used for exploiting shale oil and gas but it still needed more advanced technology for exploiting shale oil and gas resource on a larger scale.
He said that the exploration of shale reserves involves huge cost and two local companies Oil and gas Development Corporation Limited and Pakistan petroleum were asked to explore shale gas and oil from one well to determine the cost.
Once exploited, the new reserves will change the economic landscape of Pakistan, which is suffering massive energy shortages.–PTI
Riaz Haq said…
#Pakistan’s discoveries add 50 million cubic ft per day (mmcfd) of #gas, 2,359 barrels per day (bpd) of #oil levels.

Pakistan has made the highest number of oil and gas discoveries in the current month as exploration companies found fresh hydrocarbon deposits in six wells that will add 50.1 million cubic feet per day (mmcfd) of gas and 2,359 barrels per day (bpd) of oil to the existing production levels.

Of these, major discoveries have been made in Sindh that already has a big share in total gas output in the country.

Gas utilities: World Bank recommends single transmission firm

Petroleum and Natural Resources Minister Shahid Khaqan Abbasi, while speaking during a meeting of the National Assembly Standing Committee on Petroleum and Natural Resources chaired by Bilal Ahmed Virk on Tuesday, said four discoveries were made in Sindh and the remaining two in Khyber-Pakhtunkhwa.

Of these, Oil and Gas Development Company made two finds, MOL Pakistan two and Petroleum Exploration Limited and United Energy Pakistan one each. The discoveries have shown presence of 31.6 mmcfd of gas and 339 bpd of crude oil in Sindh and 18.5 mmcfd of gas and 2,020 bpd of oil in K-P.

Sui Northern Gas Pipelines Limited (SNGPL) Managing Director Amjad Latif warned that the country’s gas reserves were depleting and no gas was available for the domestic consumers in Punjab. He pointed out that the purchasing cost of gas for domestic consumers stood at Rs510 per million British thermal units (mmbtu) but the consumers coming under the first slab were receiving it at Rs110 per mmbtu.

Eighty-five per cent of domestic consumers were paying less than 50% of the cost of gas and the industrial and commercial consumers were cross-subsiding the domestic consumers, he said.

However, now industrial and commercial consumers were being provided imported liquefied natural gas (LNG), so the burden of cross-subsidy had been shifted to SNGPL that was feeling the strain on its finances.

Though the gas production was declining, Latif told the committee that the company would lay pipelines over 8,000 km in the current year. At present, 1.5 million applications for new gas connections are awaiting approval of the company.

The country was facing gas shortages as politicians were using it as a tool to win elections.

During the meeting, National Assembly member Mian Tariq Mehmood, who belonged to the ruling PML-N, alleged that SNGPL had provided 100 gas meters in his constituency to please his political rival Imtiaz Safdar Warraich, though his requests for new meters were turned down repeatedly.

He insisted that the provision of gas meters to his opponent had damaged his political image. NA Standing Committee Chairman Bilal Ahmed Virk accused Director General Petroleum Concession Saeedullah Shah of not responding to the committee for the last two years.

Sui lease extension: PPL to pay 10% bonus to Balochistan

Describing Shah’s attitude as non-sense, he said he was not cooperating with the committee and sought the record of past meetings to show response of the director general of petroleum concession.

The committee also took up for review the issuance of licences for liquefied petroleum gas (LPG) stations to the defaulters that were previously running CNG stations.

It recommended that rules of Oil and Gas Regulatory Authority (Ogra) should be amended to ensure the clearance of outstanding bills of SNGPL, Water and Power Development Authority and banks before issuing licences for setting up LPG stations.
Riaz Haq said…
A European think tank has blamed the World Bank for a role in Pakistan’s energy sector problems over the decades and for rushing through a long-term power generation plan based on dirty and expensive fuels under its ‘prior actions’ of loan programmes.

Recourse — an Amsterdam-based non-profit organisation — claims it holds financial institutions to account for harms to people and the environment and is funded by foundations and organisations working for environment and development under the European Union.

In its report “World Bank’s Development Policy Finance (DPF) 2015-21: Stuck in a carbon rut”, the European think tank said its studies in Indonesia and Pakistan showed the WB was “accelerating the use of natural gas and supporting fragile energy sectors that are heavily invested in coal”.

“In Pakistan the case study observes how DPF can have unintended consequences, even when ostensibly it is seeking to support a renewable energy transition,” the report said, adding the $400 million Programme for Affordable and Clean Energy (PACE) 2021/22 focused on measures to support the country’s transition to low-carbon energy. This loan disbursement was dependent on a prior action that required a commitment from the Pakistan government to transition to 66pc renewable energy by 2030 through the adoption of Indicative Generation Capacity Expansion Plan (IGCEP), a least-cost generation plan. However, targets on renewable energy sources were slashed from 30-33pc of the energy mix to 17pc.

The energy plan includes the “commissioning of a portfolio of new generation projects including many hydropower projects, Thar coal-based projects, K-3 nuclear power plant, and over 4,000MW of solar- and wind-based renewable energy projects,” the report said, adding that the DPF was not subject to proper checks and balances in terms of transparency and accountability.

The report said the World Bank’s Prior Actions were opening a Pandora’s Box for unsustainable energy in Pakistan. The report said that despite the Paris Climate Agreement of 2015, the World Bank committed $1.1 billion between 2014 and 2016 to energy sector reform in Pakistan that had an emphasis on tariff reform as “Prior Actions” to the disbursement of funds. “This tariff reform paved the way for Pakistan’s National Electric Power Regulatory Authority (Nepra) to offer the most attractive upfront tariff for coal-fired power projects in the world”, thereby setting the stage for massive expansion of coal in the Thar region and beyond.

In 2021, Pakistan is completing its second year of foundational reforms to comply with ‘Prior Actions’ for three DPF operations amounting to $1.4bn. “In our analysis, the Prior Actions required by this DPF operation have had a destabilising effect on Pakistan’s ability to transition to a sustainable renewable energy pathway,” the report claimed.

On August 26, 2021, it said, Pakistan’s cabinet committee on energy under immense pressure to meet its Prior Actions towards the World Bank gave its hasty approval to the controversial IGCEP, which was approved a month later by Nepra with a strong dissenting note from Nepra’s vice-chairman who refused to sign it. The political pressure to fast-track the IGCEP came in August when WB Vice President Hartwig Schafer visited Pakistan and urged the government to accelerate the pace of power sector reforms.

The generation mix in the new IGCEP is now dominated by expensive and dirty fossil fuels, with additions of around 8.5GW of coal, and 10GW of LNG and gas to be made in the next 10 years. The IGCEP itself confirms that renewable energy is quickly becoming cheapest forms of new electricity generation, yet the IGCEP contradicts itself with the recommendation to rely less on these sources.
Riaz Haq said…
A review of Pakistani shales for shale gas exploration and comparison to North American shale plays
Author links open overlay panel Ghulam Mohyuddin Sohail a, Ahmed E. Radwan b, Mohamed Mahmoud c

Recent advancements in technologies to produce natural gas from shales at economic rates has revealed new horizons for hydrocarbon exploration and development worldwide. The importance of shale oil and gas has aroused worldwide interest after the great success of production in North America. In this study, different marine source rocks of Pakistan are evaluated for their shale gas potential using analogs selected from various North American shales for which data have been published. Pakistani formations reviewed are the Datta (shaly sandstone), Hangu (sandy shale), Patala (sandy shale), Ranikot (shaly sandstone), Sembar (sandy shale) and Lower Goru (shaly sandstone) formations, all of which are known source rocks in the Indus Basin. Available geological data of twenty-six wells (e.g., geological age, depositional environment, lithology and thickness), geochemical data (e.g., total organic carbon (TOC), vitrinite reflectance (Ro), rock pyrolysis analysis and maturity), petrophysical data (e.g., porosity and permeability) and dynamic elastic parameters estimated from logs (Young’s modulus and Poisson’s ratio) have been investigated. According to this study, the Pakistani shales are explicitly correlated with the most active shale gas plays of North America. The burial depths or geological position of the Pakistani shales are generally comparable to or slightly higher than the North American shales based on the available data. The thicknesses of the Pakistani (except for the Sembar shale) and North American shales fall in similar ranges. In terms of mineralogical composition, all of the Pakistani shales except the Ranikot and Hangu shales have quartz contents in the 40% to 50% range (approximately), which is similar to most of the North American shales. The high maximum TOC of the Hangu and Sembar shales (10%) is comparable to the New Albany, Antrim and Duvernay shales. The maximum TOC values for the Ranikot (3%), Lower Goru (1.5%) and Datta (2%) shales are lower than all North American shales. The TOC of Patal Shale (
5%–10%) is comparable to Fayetteville and Eagle Ford shales. The geological and geochemical parameters of all the Pakistani shales reviewed in this work are promising regarding their shale gas prospects. However, geomechanical data are required before conclusions on these shales’ economic production can be made with confidence.


The exploitation of shale gas reservoirs may enhance gas production and reduce the severity of the ongoing energy crisis. The main challenge in Pakistan is to evaluate the shales using limited data and samples. That is why only a few companies are working on shale gas reservoirs in Pakistan now. The researchers need to assess and rank prospective Pakistani shales to entice companies to consider shale gas development. The geological characterization of Pakistani shales has been investigated by several authors (e.g., Warwick et al., 1995, Kazmi and Abbasi, 2008, Ahmad et al., 2012, Hakro and Baig, 2013, Jalees, 2014), but detailed work is required on geochemical, petrophysical and geomechanical characterization for assessing the actual potential of shales in Pakistan (Abbasi et al., 2014).

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