Oil Shortage and Energy Crisis
Energy is believed to be life line of any economy and most essential instrument of socioeconomic growth of a country. Energy is fundamental in running machinery in factories and industrial units, for lighting our cities and powering our vehicles etc.
There has been an vast increase in the demand of energy as a outcome ofpopulation growth and industrial development, in contrast to improvement in energy production. Therefore the supply of energy is, far less than the actual demand, resultantly crisis has come to light. Any bottleneck (or price rise)is defined as energy crisis in the supply of energy resources to an economy.
Pakistan’s energy infrastructure is not well equipped, rather it is considered to be poorly managed and underdeveloped. The country is currently facing severe energy crisis. Despite of rising energy demand and strong economic growth during past decade, no serious efforts have been made to induct new capacity of generation. Moreover, power theft, rapid demand growth, transmission losses due to outdated infrastructure, and seasonal reductions in the availability of hydropower have deteriorated the situation. Thus, the demand exceeds supply and hence load-shedding is a common occurence through power shutdown.
Energy supply and per capita availability of energy during 2009-10 observed a decline of 0.64 % and 3.09 % respectively in contrast to previous year.
Pakistan requires around 15,000 to 20000 MW electricity per day, currently, however it is able to produce about 11,500 MW per day hence there is a shortfall of about 4000 to 9000 MW per day. This shortage is badly obstructing the economic growth of the country.
Energy Consumption :
Pakistan’s energy consumption is met by mix of gas, oil, electricity, coal and LPG sources with different level of shares. Share of gas consumption stood at 43.7 %, followed by oil 29.0 percent, electricity 15.3 percent, coal 10.4 percent and LPG 1.5 percent. ...