British Petroleums latest World Energy Statistical Review confirms what pundits have been expecting for long: China has become the world leader in global fuel energy consumption, surpassing the USA for the first time ever.
What it also confirms is Pakistans struggle on the energy front; substantiating the energy problems with some sombre figures.
Pakistans economic struggles are well reflected in the energy numbers as primary energy consumption for 2011 grew by a meagre 1.3 percent, in sharp contrast to the Asia Pacific and global average of 8.5 and 5.6 percent respectively.
The problem is of a circular nature as the persistent electricity crisis prevented the industrial sector from utilising the optimum efficiency levels, thus resulting in a decline in oil consumption by 0.6 percent, at a time when regional oil consumption surged by 5.3 percent.
On the other hand, gas consumption increased by 2.7 percent during 2010 against the corresponding period last year. Natural gas constitutes nearly 53 percent of the countrys primary energy consumption.
But gas production has been largely stagnant over the past few years, with production increasing by just half a percent in 2010, compared to the previous year. Additional gas demand, at a time when gas reserves are depleting rapidly, puts Pakistan in a peculiar situation.
It is the uneconomical usage of gas that is more of a worry as gas consumption is not prioritised in the countrys best interest. The power sectors share of gas consumption continues to decline as it now stands at 29 percent, versus 44 percent five years ago, adding more pressure on electricity tariffs and compounding problems such as circular debt.
The governments flawed policy of encouraging natural gas usage for transport sector is a major issue which takes away 8 percent of the total gas consumption, serving as a subsidy to the middle and upper middle class at the cost of much-needed electricity generation at much cheaper rates.
No wonder electricity generation stands where it was five years ago and registered a 5 percent year-on-year decline in 2010. Regional economies in the meanwhile beefed up their electricity generation by 9 percent, and therefore ended with higher economic growth.
The BP Review sums up the energy sector woes in a rounded manner as it shows the hydroelectricity consumption declining rapidly, which currently stands at a lower level than it was five years ago. Pakistans regional peers, however, have worked rigorously towards increasing hydel generation, posting an increase of 50 percent in the same period.
Renewable energy generation remains abysmally low, which is a shame, given that the region has made rapid strides in the past few years, registering a 21 percent year-on-year growth in 2010.
The BP Review has not disclosed anything that was previously unknown, but it sums up the issues in a manner that shows why Pakistan lags behind the rest of the world.
The problems are known and many - ranging from flawed energy mix to wrong usage priorities - it is about time to put the house in order before the energy crisis shakes the very base of the economy.
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Primary Energy Consumption
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YoY Chg
TOE (mn) 2006 2007 2008 2009 2010 (2010)
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Total World 11,088 11,398 11,536 11,363 12,002 5.6%
Asia Pacific 3,783 3,988 4,091 4,216 4,574 8.5%
India 381 415 445 480 524 9.2%
China 1,858 1,997 2,080 2,188 2,432 11.2%
Bangladesh 19 20 22 23 24 1.2%
Malaysia 63 63 62 61 63 3.6%
Pakistan 62 65 65 67 68 1.1%
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Source: BP Statistical Energy Review
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