Energy being the lifeblood of the economy, it is so important that nations go to war to safeguard their supply. Many members are too young to remember 1973 when Organization of the Arab Oil Producing Countries (OAPEC) declared oil embargo against the United States. In September 1973 international oil price hovered at around $3/- per barrel whereas by 1974 it had quadrupled to $12/- per barrel.
There was petrol rationing in the US and the US Gov’t was compelled to create the ‘Strategic Reserve’ of 1-bilion barrels. First cargo towards this end was purchased in 1977. To the best of my info, US strategic reserve of about 700-million barrels is still in existence.
Ultimate energy security is only possible if the country is in the fortunate position of being self-sufficient in her energy needs; which primarily means electricity, oil & gas. In my humble opinion GOP is on the right track in diversifying their power production from coal, nuclear, hydel, solar & wind. However no matter how much you diversify, Pakistan will remain dependent on imported oil & now also gas in the foreseeable future.
Following 1971 war; I attended a few meetings of the OCAC (Oil Companies Advisory Committee) which included members from all the refineries and marketing companies of Pakistan. Following suggestions were made to Ministry of fuel, power & natural resources as it was then called.
It was proposed that GOP makes it mandatory on all refineries to keep crude oil stocks sufficient for at least 21 days full operation. Oil marketing & distribution companies were asked to keep 21 days stocks in Karachi and another 15 days stock at the upcountry storage depots. Basically it meant that Pakistan will always have sufficient stocks to cover about 2 months full requirement. Once you add Army, Air Force & Navy’s own fuel stocks and accounting for the fact that war time requirements far exceed peace time requirement of the armed forces; it was estimated that there would be enough jet, petrol and diesel for a minimum one month’s war time operations. This was 40 years ago, don’t know the situation now.
Political rhetoric aside; it does not matter how much you diversify, one needs crude oil for the refineries to produce jet fuel for the aeroplanes, gasoline for the cars, diesel for trucks & trains and LPG for household fuel. In the absence of sufficient refining capacity and indigenous crude oil production; continuity of imported oils is essential. For this you need funds to keep a large inventory and a strong enough Navy to keep the sea lanes clear.
