Petroleum revenues still on track

The petrol price decision for May 2020 was once again taken for a ride by critics on both extremes. There is that one side, which would not settle for anything less than an immediate price relief, without any currency, time, or taxation considerations or even making room for cost of crude oil refining. On the other extreme are those ruing the missed opportunity to beef up the tax kitty, citing regional prices and equating with dollar rates. One must not forget that petroleum prices have a considerable bearing on inflation,…

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Don’t Look to Stock Market to Tell You When Virus Crisis Is Over

Take a gander at a chart of the S&P 500 Index and it sure looks like traders expect the coronavirus crisis to end quickly and the economy to roar back. One might think that the only thing to wait for is an all-clear signal — a cue that marks the conclusion to the Covid-19 calamity and the return of the boom times. But it isn’t likely to work that way, according to comments that company officials have made on recent earnings calls. Executives bold enough to give any guidance whatsoever…

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The failure of Pakistan’s power policies

The recently released report on IPPs by a government sanctioned commission brought not only the power producers into the limelight, but also the design of the previous power policies. While the final verdict on the report is still awaited, especially given the riposte by the private power producers, it is imperative that one identifies the short comings of the previous policies that later lead to controversies. This should prove to be a useful exercise in the context of fact that we’ve embarked on yet another plan to substantially increase power…

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OGA: ‘Oil and gas operators must move faster towards net zero or risk losing social licence’

The new strategy sets out priorities to support the oil and gas industry in reducing greenhouse gas emissions, developing carbon capture and storage and implementing hydrogen projects. The Oil and Gas Authority (OGA) has unveiled its strategy to support the drive to net zero greenhouse (GHG) emissions, including new requirements and regulations for industry operators. The OGA says maximising the economic recovery of oil and gas needs not conflict with the transition to net zero and highlights the need for the industry to move considerably faster and further in reducing its carbon footprint – it…

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Qatar Uses Market Mayhem To Secure Top Spot In Global LNG Market

Despite – or perhaps because of – the global overhang in liquefied natural gas (LNG) supplies, a weak demand profile, and ongoing uncertainty in the hydrocarbons market overall, Qatar believes that the long experience and supportive infrastructure that it has accrued in the sector since first becoming an LNG exporter in 1997 will allow it to regain its former position as the world’s number one LNG exporter. To this effect, it has announced big and bold plans for its flagship supergiant non-associated gas reservoir, the North Dome, together with corollary…

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Oil turns positive as Saudi Arabia says it will reduce output further

Oil prices reversed gains and turned positive on Monday after Saudi Arabia’s energy minister said the kingdom aims to provide additional voluntary cuts in an effort to support global markets. Brent crude futures gained 26 cents to trade at $31.23 per barrel, U.S. West Texas Intermediate crude futures gained 43 cents to trade at $25.18 per barrel. Gains were capped, however, as concerns over a persistent glut and economic gloom caused by the coronavirus pandemic combined to cancel out support from supply cuts at some of the world’s top producers.…

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U.S. drillers cut oil & gas rigs to historic low -Baker Hughes

The number of operating oil and natural gas rigs fell to an all-time low – reflecting data going back 80 years – as the energy industry slashes output and spending to deal with the coronavirus-led crash in fuel demand. The rig count, an early indicator of future output, fell by 34 to a record low of 374 in the week to May 8, according to data on Friday from energy services firm Baker Hughes Co going back to 1940. The prior all-time low was 404 rigs in May 2016. Fuel…

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Pakistan:Economic losses estimated to exceed US$4bn by 30 June

Pakistan is expected to record a loss of over PKR628bn ($4bn) by the end of the current financial year, which is 30 June 2020, as a result of the adverse impact of the coronavirus pandemic on the economy, according to a report prepared by the sub-committee of the National Coordination Committee (NCC). The report “COVID-19: Preliminary Macroeconomic and Socioeconomic Assessment” said almost all the sectors of the country would suffer a loss due to lack of human and business activity, reported Pakistan Today. Giving a breakdown of the losses, the report…

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Centre fails to pay KP Rs70m for Machai electricity

PESHAWAR: Despite completion of 2.6megawatt Machai Hydel Power Project (MHPP) three and half years ago, the Khyber Pakhtunkhwa (KP) government has provided more than 13 million units of electricity to the national grid without receiving payment and striking agreement with the National Electric Power Regulatory Authority (NEPRA). The province is experiencing power cuts and facing severe financial constraints despite spending Rs683.50 million on the construction of the power project. The provincial government had inaugurated Machai Hydro Power Station in Mardan in November 2017 after it formally started production and contributing electricity…

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Govt considering buying oil in advance to benefit from global prices

ISLAMABAD: The federal government is considering taking benefit of the decline in global oil prices by purchasing the oil in advance and in this regard the Ministry of Energy (MoE) has sought an approval of the cabinet’s Economic Coordination Committee (ECC). According to sources, owing to a decline in oil prices in the international market in the wake of the coronavirus lockowns, MoE wants to purchase oil in advance for one or two years. They said the ministries of Energy and Finance have worked jointly during the last one month to…

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