Current Trends in Oil & Gas Industry.pptx

Current trends in global oil and gas industry and focusing particularly on Pakistan's oil and gas industry.

1. C urrent trends, opportunities & challenges of oil & gas industry

2. Table of contents 05 C oncluding remarks 04 O pportunities for pakistan’s industry 03 Challenges of pakistan’s industry 02 CURRENT TRENDS IN PAKISTAN’S OIL & GAS iNDUSTRY 01 C urrent trends in global oil & gas industry

3. Current trends in global oil & gas industry 01

4. Cost Efficiency & Operational Resilience GLOBAL OIL & GAS INDUSTRY TRENDS The industry is under pressure to reduce carbon emissions, so many companies are investing in renewable energy, carbon capture, and storage (CCS) technologies . Green hydrogen, produced using renewable energy, is gaining interest as a future clean fuel. Increased use of digital technologies like Artificial Intelligence (AI), machine learning, and data analytics for optimizing production, reducing costs, and enhancing safety. E&P companies continue to streamline operations and reduce costs, especially in the face of fluctuating oil prices. This involves adopting agile, resilient operational strategies . V irtual models of physical assets (Digital Twin) are being used to enhance operational efficiency. Companies are focusing on sustainability initiatives and adhering to stricter ESG standards. Investors and regulators are emphasizing these factors . Initiatives like methane emission reduction and water usage optimization are part of this trend. E nergy transition & decarbonization Digital Transformation & Automation Sustainability & Focus on ESG Standards

5. TRENDS IN PAKISTAN’S OIL & GAS iNDUSTRY 02

6. Shift Towards Renewables and Energy Transition PAKISTAN’S OIL & GAS INDUSTRY TRENDS Pakistan is focusing on increasing domestic oil and gas exploration to reduce reliance on imports. There has been an emphasis on tapping unexplored reserves, especially in offshore regions and underexplored basins in Baluchistan and KPK. Pakistan remains highly dependent on energy imports, particularly for liquefied natural gas (LNG), which is used to meet the growing domestic demand for electricity and industrial energy needs . LNG imports have increased, with Pakistan building new terminals and securing long-term contracts for LNG supply to address the gas shortfall. While oil and gas remain the dominant energy sources, Pakistan is gradually looking towards renewable energy sources to diversify its energy mix. Solar and wind energy projects are being developed to reduce the carbon footprint and reliance on fossil fuels . Pakistan has faced significant challenges due to a persistent gas supply shortage, which has affected both households and industries. This has pushed the government to prioritize enhancing domestic gas production and increasing LNG imports. E&P Activities Import Dependency and LNG Growth Gas Supply Shortages

7. PAKISTAN’S OIL & GAS INDUSTRY TRENDS There are ongoing projects to improve the oil and gas pipeline network, such as the Pakistan-Iran Gas Pipeline and the TAPI (Turkmenistan-Afghanistan-Pakistan-India) pipeline, although political and security concerns have delayed these projects. The energy sector, including oil and gas, is impacted by pricing issues and circular debt. The government is working on reforms to address the pricing mechanism and the financial stability of energy companies. Infrastructure Development Energy Pricing and Circular Debt

8. Challenges FOR PAKISTAN’S OIL & GAS iNDUSTRY 03

9. CHALLENGES OF PAKISTAN’S OIL & GAS INDUSTRY Pakistan's existing oil and gas fields are maturing, leading to a steady decline in domestic production. This has increased reliance on energy imports, particularly liquefied natural gas (LNG), to meet domestic demand. The country experiences chronic gas shortages, especially during the winter months, affecting both industries and households. This is due to a combination of declining gas production, increasing demand, and infrastructure limitations. Declining Domestic Reserves Gas Supply Shortages Lack of Investment in E&P ACTIVITIES There is insufficient investment in the exploration and development of new oil and gas reserves, partly due to bureaucratic hurdles, security concerns, and inconsistent government policies . Foreign companies are not investing due to political instability.

10. CHALLENGES OF PAKISTAN’S OIL & GAS INDUSTRY Certain oil and gas-rich regions, particularly in Baluchistan and Khyber Pakhtunkhwa, face security challenges due to insurgencies, militancy, and tribal conflicts. This affects both domestic and international companies' ability to conduct exploration and production activities safely. The oil and gas sector in Pakistan lacks modern technology and expertise, especially for exploring unconventional resources like tight gas and shale gas. The industry also lags in adopting digital technologies and automation, which are essential for improving efficiency and reducing costs Security Concerns Technological Challenges ENVIRONMENT & SOCIAL CONCERNS There is increasing pressure on the oil and gas industry to adopt environmentally sustainable practices. Additionally, local communities sometimes oppose exploration and production activities due to environmental and social concerns, creating conflicts and project delays.

11. opportunities FOR PAKISTAN’S OIL & GAS iNDUSTRY 04

12. CHALLENGES OF PAKISTAN’S OIL & GAS INDUSTRY Pakistan has significant untapped oil and gas reserves, particularly in underexplored areas such as offshore regions, Baluchistan, and Khyber Pakhtunkhwa. Investment in exploration and production (E&P) activities, especially by foreign companies, could lead to the discovery of new reserves and enhance domestic production. There is a need for new pipelines, refineries, and storage facilities to support the country’s energy sector. Projects such as the Pakistan Stream Gas Pipeline in partnership with Russia and the expansion of domestic pipeline networks offer significant investment opportunities. Untapped reserves INFRASTRUCTURE DEVELOPMENT Technological Upgradation The industry has opportunities to adopt modern technologies such as digital oilfield solutions, automation, and data analytics to optimize production, reduce costs, and improve safety . The application of advanced drilling techniques, such as hydraulic fracturing, could enable the exploitation of Pakistan’s unconventional gas reserves, including shale and tight gas.

13. CHALLENGES OF PAKISTAN’S OIL & GAS INDUSTRY As the world transitions toward cleaner energy sources, Pakistan's oil and gas companies have opportunities to diversify into renewable energy. Investments in solar and wind energy projects can complement the traditional oil and gas business. Expanding oil and gas exploration and infrastructure development can create jobs and boost local industry, particularly in regions where oil and gas fields are located. Renewable Energy Transition Local Industry and Job Creation Joint Ventures with Foreign Companies Pakistan can attract foreign investment and technical expertise through joint ventures and partnerships with international oil and gas companies. Collaborations can help in leveraging advanced technologies and reducing operational risks.

14. CONCLUDING REMARKS & Questions?

15. THANKS & BEST WISHES