US Pakistan oil deal reality: How Pakistan is fooling Donald Trump with 'empty' oil reserves, Trump will be unhappy because...
How Pakistan is fooling USA: President Trump recently announced that the US has signed an agreement with Pakistan under which the two countries will jointly develop huge oil reserves. However, the world knows that Pakistan does not have significant proven oil reserves. More importantly, the country remains heavily dependent on energy imports, and while some exploration is underway in regions like Sindh and Balochistan, no major discoveries have been made.
Experts view that even as US President Donald Trump said in a social media post that the US has signed a deal to develop and explore 'massive oil reserves' in Pakistan, the ground reality is that the neighbouring nation has very limited oil and gas reserves and meets 85 per cent of its requirement through imports. What data says about proven oil reserves in Pakistan?
According to Worldometer data, Pakistan had 353.5 million barrels of proven oil reserves as of 2016, placing it 52nd globally and accounting for just 0.021 per cent of the world's total reserves. At current consumption levels of about 556,000 barrels per day, these reserves would cover less than two years of domestic demand if the country does not import oil, according to Worldometer data.
As per data quoted by IANS news agency, the daily oil production is around 70,000–80,000 barrels per day, which covers only about 15–20 per cent of its own consumption.
It is also being said that China or any other country has not looked at Pakistan's gas-oil reserves till now because Pakistan doesn't have the viable resources. What's the exploration success rate in Pakistan?
The exploration success rate in Pakistan is low, and political, financial, and security concerns are a major concern for investors. The refining capacity in Pakistan is also limited and aging, the Indian Oil official said.
On Truth Social, Trump announced a deal with Pakistan to help it with development and exploration of oil reserves. 'We have just concluded a Deal with the Country of Pakistan, whereby Pakistan and the United States will work together on developing their massive Oil Reserves…We are in the process of choosing the Oil Company that will lead this Partnership. Who knows, maybe they'll be selling Oil to India some day!' he wrote on social media.
(With inputs from agencies)
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