Abstract:
The dependence of modern economies of the world on the sources of energy is a well known fact. In Pakistan we get the first hand experience of almost fortnightly fluctuations in the prices of fuel (normally to the higher side) and the consequent impact on our own pockets. With the increase in population and overall standards of living, the hunger for petroleum products is continuously on the rise. The dependence of developed economies on the imported oil is so acute that powerful nations of the world use every means at their disposal to gain control over its sources in a bid to assure constant supply of petroleum products to quench the insatiable thirst of their domestic markets. For countries like Pakistan, where the production of these vital drivers of economy is overtaken by the demand and the situation is likely to worsen in foreseeable future as the gulf between the ever increasing demand and the rapidly depleting domestic supply is widening at an alarming rate. This situation further tilts the already tilted balance of trade in favor of imports with obvious ramifications both for the fragile national economy and the individual purchasing power. Under these conditions the role played by the domestic oil and gas sector assumes critical importance.
