Oil struck near Jhelum

[FunkyGen]

corruption? fear? incompetence?

$$$$$$

 

[AZADPAKISTAN2009]

Congradulation , was hoping 1-2 Billion barrels but , its still good news

 

[FunkyGen]

you cannot compare Israel to Pakistan, a very unfair comparison. Israel is only 24,000 sq.km
we are not genocidal maniacs. Muslims have never been, Pakistan is a proof of fair and cautious conduct.

Both are ideological states.....
What the hell kinda logic is that? having a bigger area means that we should have thousands of people dying?

 

[tarrar]

Pakistan is filled with Natural Resources but unfortunately we have corrupt Governments & politicians who love to sit in IMF lap & show Pakistan that nothing can be done without IMF. If all the Natural & mineral resources are utilized or used for Pakistan properly then Pakistan will never need IMF for good. Like by using & making Kala Bagh dam, Bhasha dam. Reqo diq, Thar coal, gas & oil reserves & etc are used properly then Pakistan does not need any foreign banks help but thanks to corrupt politicians this is not possible.

 

[Devil Soul]

Excellent news for the people of the area and Pakistan.... this find will go a long way in development & uplift of that area in general... Insha'Allah

 

[forcetrip]

Requirement per day of Pakistan is roughly around 500000 barrels. Output of Ghauri X 1 is 5500 barrels. Total amount of predicted oil is 22 million barrels. Therefore this site will take care of 1% of our needs per day and will last 4000 days or around 11 years.

 

[Multani]

Both are ideological states.....
What the hell kinda logic is that? having a bigger area means that we should have thousands of people dying?

no, it means your immediate house is not on fire

 

[Indus Falcon]

One has to keep in mind that this is "heavy crude" meaning refining it costs more. More akin to WTI, then to Brent blend in terms of pricing on the Int'l market.

Sulfur content, a very important factor wasn't mentioned.

 

[FunkyGen]

no, it means your immediate house is not on fire

oh bhai if our house is on fire then they are surrounded by Egypt, Syria along with all the other Muslims of the world hating on them. And btw you know why our house is on fire?

 

[Multani]

oh bhai if our house is on fire then they are surrounded by Egypt, Syria along with all the other Muslims of the world hating on them. And btw you know why our house is on fire?

oh bhai tujhe English samajh nahin aati

 

[forcetrip]

One has to keep in mind that this is "heavy crude" meaning refining it costs more. More akin to WTI, then to Brent blend in terms of pricing on the Int'l market.

Sulfur content, a very important factor wasn't mentioned.

The Sweet and Sour Economics of Refining

It’s important that investors understand what they are buying. The biggest gains I’ve made over the years were in companies whose business I understood well. The biggest losses have been in companies that I didn’t understand nearly as well.

During the tech stock bubble from 1997 to 2000, a lot of people – including me – made and then lost money on companies we didn’t really understand. I wasn’t sure exactly what JDS Uniphase (NasdaqGS: JDSU) did, but I did know that the talking heads on CNBC and at MSN Money believed that the sky was the limit.

But I didn’t understand its business. Who were the competitors? What were the threats? I didn’t really know and over time it became very clear to me that I was simply gambling, not investing. I was taking the advice of people who in many cases didn’t understand these businesses themselves, but who had an impressive track record primarily because they had been making their recommendations during a bull market for technology stocks. When the stock price of JDSU started to fall, I was uncertain whether to sell, because I didn’t really understand the long-term prospects.

With that in mind, US refiners have been on a hot streak lately. In the past three months the share prices of Valero Energy (NYSE: VLO), Tesoro (NYSE: TSO), and Marathon Petroleum (NYSE: MPC) (all of which have been recommended here) have appreciated by 61%, 44%, and 52% respectively.

But oil refining has historically been a highly cyclical business. Get in at the right time and you can make a lot of money quickly. Get in at the wrong time and you can lose a lot just as quickly. This is why I caution against buying a refiner if you prefer to buy a stock for the next five years. I would have no major concerns about holding a large integrated oil company like Chevron (NYSE: CVX) for that long, but the refiners require much closer monitoring.

So let’s examine the refining industry in some detail. Oil refiners convert crude oil into finished products such as gasoline, diesel, jet fuel, fuel oil and asphalt. But there can be significant differences among refiners. Recently we have seen refiners in the Midwest and on the Gulf Coast making record profits, while those on the East Coast are going bankrupt. The separator is generally the type of crude oil the refinery can process, which is a function of logistics and equipment.

When a refinery purchases crude oil the key piece of information, besides price, is what the crude oil assay – or composition analysis – looks like. The assay gives valuable information on the types of products that can be produced from the oil, as well as the degree of difficulty in refining it. You have probably heard terms like “light sweet”, or “heavy sour”, but how do these qualifiers affect the ability of a refiner to turn these crudes into products?

Let’s look at a pair of typical crude oil assays:

Rest of the article is in the link.

The Sweet and Sour Economics of Refining — JDSU, VLO, TSO, MPC, CVX — Investing Daily

 

[niaz]

No one has been sleeping, Oil & Gas explorations have been going in Pakistan at a steady pace for the last 65 years and it is still going on. Exploration of off-shore as well as on shore in Baluchistan, KPK, Potwar region; lower Punjab, lower as well as upper Sind has been done at a steady pace ever since I can remember.

First oil well in this region was drilled way back in 1866 at Kundal, Mianwali. About 25,000 barrels of oil was extracted from Khattan in Baluchistan but those wells dried up in 1892. Attock Oil Company struck oil in 1915 at Khaur. Pakistan Petroleum discovered gas in Sui in 1952

Oil & Gas exploration is a very expensive business. Very roughly, estimated cost of drilling an onshore oil well is about $5-million. In 1998 cost of an average North Sea off-shore oil well was about £10-million ($15-million).

Success rate in Pakistan is good but reservoirs are small and barely commercial. Thus it is wrong arithmetic to simply multiply the estimated reserves by the price of oil and be ecstatic. It takes money to find it and even more to exploit it. If the field is small, it may cost nearly as much to find and develop the field as you will get out of it. Until 2000, when OPEC adopted a price band of $22 - $ 28 per bbl for the basket of OPEC crudes; North Sea oil was not very profitable. During brief period of the Iran-Iraq war when oil dipped to $10-bbl, North production was losing about $5 on each bbl pumped out.

News about South Waziristan is just speculation. Until such time Taliban scums are cleared from the Pakistan, which company will risk lives of their workers? However, thanks to the love affair of PTI leadership with the TTP, this is unlikely to happen in the foreseeable future.

Finally, any commercially viable field is good news, but 22-million barrels field does not excite me. If we are lucky enough to strike a 50,000 bbl. day oil flow with estimated reserves of about 500-million barrels or more; or another gas reservoir of about 10 TCF; that would be genuine reason to jump with joy and you would have oil companies climbing over each other asking for exploration licences. At this point of time we have to be pragmatic and accept that Pakistan is critically short of hydrocarbons.

 

[Menace2Society]

^^

Shale oil. Time to jump for joy.

Americans are working with Pak companies to start fracking. I can see this happening within 24 months.

 

[ejaz007]

22 million barrel @ 150per barrel 3.3 billion $ ..so not a major find but may get a profit of 1.5 b after investment and operation

Considering the geological structures in this part of the world a 5,500 barrels per day discovery is a big discovery.

22 million barrel @ 150per barrel 3.3 billion $ ..so not a major find but may get a profit of 1.5 b after investment and operation

Considering the geological structures in this part of the world a 5,500 barrels per day discovery is a big discovery.

You guys have been in sleep mode so far. Why hasn't Pakistan exploited the massive reserves you have in natural resources in Waziristan and Balochistan even after 65 years of independence?? Pakistan could probably have been a net exporter of oil and natural gas by now!

We are not in sleep mode. Not at least in oil and gas exploration. In fact we are the pioneers in this field in this part of the world. So far we have not discovered really huge reserves therefore have not been able to met our own needs let alone export. Geological structures also perhaps are not suitable for a large discovery.

 

[xyxmt]

Dont worry, Inshallah, you will be hearing another good news from sindh region too... ENI with JV of OGDCL is putting in all its resources to work up a well in sindh khuzdar border, and that is expected to be another big hit.... Lets wait and watch

the other day watching a TV talk show with some US Expats, one of them said one time in a conference this guy took me on the side and asked me, was you Mr. Jinnah some kind of Geologitst, it seems he carved out the best part of India for Pakistan"