Energy security at distant horizon is no ante

With the dusk of FY12, the yawning energy deficit in the country is nowhere near its close. As the last streaks of hopes subside, wretched power situation during the peak summer times stoke concerns to the very possibility of any break. And it all starts at the core: drilling and exploration of indigenous resources. FY12 was eventful for the exploration and production sector in terms of proposals for remedial actions while humdrum when it came to results. The chilling effect of Reko Diq saga on foreign investors set depressing precedence for investment prospects especially when it comes to security struck tribal areas. The roller coaster ride of IP and TAPI gas pipelines and the foreign investors promises vanishing into thin air added to the jitters of the oil and gas sector. The two significant moves in terms of policy enactment were the promulgation of Petroleum Policy 2012 and the low BTU gas pricing policy, which offer reasonably low well head pricing for conventional and unconventional gas reserves, respectively. However, it all ends here for FY12 as no major discoveries or wells spudded could make foray against the morbid drilling activity. The hatrick of missing the annual drilling targets is a cherry on top of the muffled drilling activity in the country. The limelight of the year-discovery at Zin block by OGDC-turned into a major disappointment due to restrained flows. Analysts opine that even though six discoveries were made during the FY12 against the backdrop of four last year, investment refused to flock in due to their insignificant size. The E&P sector was able to achieve 69 percent of its well drilling targets in FY12 compared to 59 percent last year. Focus mainly on the development activities is evident from the E&P giant OGDCs activities where it achieved only 15 percent of its exploratory targets while 80 percent of its development targets. While the Ministry of Petroleum and Natural Resources continues its endeavour to expedite E&P activity, the budget FY13 too was uneventful for this sector. The coming fiscal year screams for pragmatic implementation of the new policy initiatives and faster award and bidding process, as the policy incentives would supposedly increase the indigenous gas reserves and bring foreign bucks into the local soils.