Energy Security in Pakistan | Security Lense | Op-Ed | 14-Sep-2024
Energy security is a critical issue for Pakistan, deeply intertwined with the country’s economic stability and growth. With a fragile and fluctuating energy infrastructure, Pakistan’s industrial, agricultural, and domestic sectors face continual uncertainty. The country’s dependence on imported energy further complicates its quest for sustainable economic development. In this context, Mari Petroleum Company Limited (MARI) plays a pivotal role in addressing Pakistan’s energy security challenges. As the second-largest producer of natural gas in the country, Mari Petroleum’s contributions span across sectors, from fueling power plants to providing essential raw materials for the agricultural sector. The company’s efforts to stabilize the country’s energy supply chain are essential to Pakistan’s economic resilience.
Having been closely associated with Mari Petroleum as a Researcher, I have gained invaluable insights into the immense challenges that Pakistan’s energy sector faces. Security risks, operational hurdles, and volatile market conditions make it difficult to sustain energy production. Yet, despite these obstacles, Mari Petroleum remains at the forefront of ensuring the country’s energy security, providing. Energy security stands at the core of Pakistan’s national interest, deeply influencing its economic, political, and social stability. A steady and reliable energy supply is essential not just for the industrial and agricultural sectors, but also for the everyday functioning of households across the country. However, Pakistan has long struggled to achieve energy self-sufficiency, facing challenges like growing demand, limited domestic production, outdated infrastructure, and over-reliance on expensive imports. In this context, Mari Petroleum Company Limited (MARI) plays a critical role in the broader landscape of Pakistan’s energy security, serving as a key contributor to the country’s natural gas production and thus helping to alleviate some of these chronic energy challenges. It has become clear that the company’s operations highlight both the opportunities and persistent risks within Pakistan’s energy sector. As the second-largest producer of natural gas, MARI is instrumental in ensuring that Pakistan’s gas-dependent industries continue to function. In a country where natural gas serves as the backbone for electricity generation and the production of fertilizers—critical for agriculture—the importance of MARI’s contributions cannot be overstated. Its supply chains are essential for sustaining both the energy and food security of Pakistan, sectors that are deeply interconnected in the broader framework of national stability.
However, the energy security issue goes beyond just supply. Pakistan faces significant challenges in ensuring consistent energy availability across all regions, particularly those far from major urban centers. This is where the operations of Mari Petroleum become especially relevant. Working in remote and often conflict-prone areas such as Balochistan and Khyber Pakhtunkhwa, MARI has had to navigate severe security challenges, logistical hurdles, and a landscape characterized by political volatility. The company’s operations in these regions are crucial, as many of the country’s potential energy reserves are located in difficult-to-access areas. The operational resilience demonstrated by MARI in continuing exploration and production in these high-risk regions is vital for expanding Pakistan’s energy base and reducing its dependence on imported energy sources.
Energy security also involves making difficult trade-offs between risk and reward. The exploration of oil and gas reserves is a high-stakes activity, often with a low rate of success. Industry-wide, only a small percentage of exploratory drilling operations lead to commercially viable discoveries. In this environment, companies like Mari Petroleum face significant operational risks. Despite these challenges, Mari has demonstrated remarkable success, particularly in its exploration activities, boasting a success rate far above industry standards. The company’s ability to find and exploit new reserves in an environment where others have failed has helped to strengthen Pakistan’s domestic energy supplies. Yet, even a high success rate does not guarantee stability, given the immense risks of political instability, fluctuating global oil prices, and shifting regulatory frameworks.
In addition to its onshore operations, Mari Petroleum’s recent venture into offshore exploration with the acquisition of the Abu Dhabi Offshore Block represents a bold step towards diversifying both its portfolio and Pakistan’s energy supply sources. Offshore exploration is a complex and costly undertaking, requiring substantial investments and technology. However, if successful, this could open new avenues for Pakistan to reduce its reliance on foreign energy, while also providing the country with a buffer against external supply shocks. For a nation like Pakistan, which often finds itself vulnerable to geopolitical tensions and global market disruptions, having diversified energy sources is a critical component of long-term energy security.
The company’s Reservoir and Drilling Departments play a crucial role in this complex process, ensuring that any discovered reserves are efficiently managed and converted into usable resources. Mari Petroleum’s success is not only a result of its technical capabilities but also its ability to operate in Pakistan’s most challenging environments. The energy industry in Pakistan is marked by uncertainty, where the discovery of new reserves is both rare and vital to the future of the country’s energy independence. Mari Petroleum’s efforts to enhance exploration and production under such difficult conditions represent a significant contribution to Pakistan’s ability to meet its growing energy needs internally.
Above all, energy security in Pakistan cannot be discussed without acknowledging the vital role played by domestic producers like Mari Petroleum. The company’s operations highlight both the potential and the ongoing challenges faced by the energy sector in Pakistan. By working in high-risk environments, sustaining exploration and production activities, and venturing into international waters, Mari Petroleum contributes to a more stable and resilient energy supply for the country. At a time when energy insecurity threatens to undermine economic growth and political stability, the efforts of companies like Mari Petroleum are essential for safeguarding Pakistan’s future.
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