Impact of different public E&P policies on natural gas reserves and production in Pakistan
Low wellhead domestic gas prices over the past few years have led to the beginning of a shortage in natural gas reserves and production in Pakistan. Gas demand steadily rises in all sectors for being an economical fuel as compare to substitutes. In the view of foregoing consumption trend, the demand for gas is expected to grow with a higher pace during the 2010s. On the contrary, indigenous gas reserves are running out and cannot keep up with the demand. This paper examines the extent of upstream activities in different petroleum policy regimes. The wellhead price for indigenous gas is compared with the prices of alternatives (for example, gas import prices). In order to put the problem in perspective, the relationship between wellhead gas price and cumulative gas reserves in Pakistan are analyzed and we find that the looming gas shortage can be ameliorated in the short-run and eliminated in the long-run through incentivized wellhead price. To put it briefly, the idea is mooted to first take advantage of huge domestic reserves to ensure competitive consumer prices for gas. The findings are applicable to several other economies with under-developed natural resources.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Amundsen, Eirik Schroder, 1991. "Seasonal fluctuations of demand and optimal inventories of a non-renewable resource such as natural gas," Resources and Energy, Elsevier, vol. 13(3), pages 285-306, September.
- Guillaume L'Hegaret & Boriss Siliverstovs & Christian von Hirschhausen, 2004.
"International Market Integration for Natural Gas? A Cointegration Analysis of Prices in Europe, North America and Japan,"
0402, Massachusetts Institute of Technology, Center for Energy and Environmental Policy Research.
- Siliverstovs, Boriss & L'Hegaret, Guillaume & Neumann, Anne & von Hirschhausen, Christian, 2005. "International market integration for natural gas? A cointegration analysis of prices in Europe, North America and Japan," Energy Economics, Elsevier, vol. 27(4), pages 603-615, July.
- Guillaume L¿Hégaret & Boriss Siliverstovs & Anne Neumann & Christian von Hirschhausen, 2003. "International Market Integration for Natural Gas?: A Cointegration Analysis of Prices in Europe, North America and Japan," Discussion Papers of DIW Berlin 393, DIW Berlin, German Institute for Economic Research.
- Giacomo Luciani, 2004. "Security of Supply for Natural Gas Markets. What is it and What is it not?," Working Papers 2004.119, Fondazione Eni Enrico Mattei.
- Dailami, Mansoor & Walton, Michael, 1989. "Private investment, government policy, and foreign capital in Zimbabwe," Policy Research Working Paper Series 248, The World Bank.
- Chi, K.C. & Reiner, D.M. & Nuttall, W.J., 2009. "Dynamics of the UK Natural Gas Industry: System Dynamics Modelling and Long-Term Energy Policy Analysis," Cambridge Working Papers in Economics 0922, Faculty of Economics, University of Cambridge.
- Iledare, Omowumi O. & Pulsipher, Allan G., 1999. "Sources of change in petroleum drilling productivity in onshore Louisiana in the US, 1977-1994," Energy Economics, Elsevier, vol. 21(3), pages 261-271, June.
- Pindyck, Robert S, 1978. "The Optimal Exploration and Production of Nonrenewable Resources," Journal of Political Economy, University of Chicago Press, vol. 86(5), pages 841-861, October.
- Rao, Raghavendra D., 2002. "Modelling optimal exploitation of petroleum resources in India," Resources Policy, Elsevier, vol. 28(3-4), pages 133-144.
- Kilic, A.M., 2006. "Turkey's natural gas necessity, consumption and future perspectives," Energy Policy, Elsevier, vol. 34(14), pages 1928-1934, September.
- Guro Børnes Ringlund & Knut Einar Rosendahl & Terje Skjerpen, 2004.
"Does oilrig activity react to oil price changes? An empirical investigation,"
372, Statistics Norway, Research Department.
- Ringlund, Guro Bornes & Rosendahl, Knut Einar & Skjerpen, Terje, 2008. "Does oilrig activity react to oil price changes An empirical investigation," Energy Economics, Elsevier, vol. 30(2), pages 371-396, March.
- MacAvoy, Paul W, 1971. "The Regulation-Induced Shortage of Natural Gas," Journal of Law and Economics, University of Chicago Press, vol. 14(1), pages 167-199, April.
- James D. Hamilton, 2011. "Historical Oil Shocks," NBER Working Papers 16790, National Bureau of Economic Research, Inc.
- Dismukes, David E. & Burke, Jeffrey M. & Mesyanzhinov, Dmitry V., 2006. "Estimating the impact of royalty relief on oil and gas production on marginal state leases in the US," Energy Policy, Elsevier, vol. 34(12), pages 1389-1398, August.
- MacAvoy, Paul W. & Pindyck, Robert S., 1973.
"Alternative regulatory policies for dealing with the natural gas shortage,"
659-73., Massachusetts Institute of Technology (MIT), Sloan School of Management.
- Paul W. MacAvoy & Robert S. Pindyck, 1973. "Alternative Regulatory Policies for Dealing with the Natural Gas Shortage," Bell Journal of Economics, The RAND Corporation, vol. 4(2), pages 454-498, Autumn.
- Iledare, Omowumi O., 1995. "Simulating the effect of economic and policy incentives on natural gas drilling and gross reserve additions," Resource and Energy Economics, Elsevier, vol. 17(3), pages 261-279, November.
- Ghouri, Salman Saif, 1996. "Pakistan's new petroleum policy 1994 : An immense promise," Energy Policy, Elsevier, vol. 24(5), pages 477-488, May.
- Neumayer, Eric, 2000.
" Scarce or Abundant? The Economics of Natural Resource Availability,"
Journal of Economic Surveys,
Wiley Blackwell, vol. 14(3), pages 307-335, July.
- Eric Neumayer, 2000. "Scarce or abundant?: the economics of natural resource availability," LSE Research Online Documents on Economics 18905, London School of Economics and Political Science, LSE Library.
- Farzin, Y. H., 2001. "The impact of oil price on additions to US proven reserves," Resource and Energy Economics, Elsevier, vol. 23(3), pages 271-292, July.
- Neuhoff, K. & de Vries, L., 2004.
"'Insufficient Incentives for Investment in Electricity Generation’,"
Cambridge Working Papers in Economics
0428, Faculty of Economics, University of Cambridge.
- Neuhoff, Karsten & De Vries, Laurens, 2004. "Insufficient incentives for investment in electricity generations," Utilities Policy, Elsevier, vol. 12(4), pages 253-267, December.
- Bielecki, J., 2002. "Energy security: is the wolf at the door?," The Quarterly Review of Economics and Finance, Elsevier, vol. 42(2), pages 235-250.
- William D. Nordhaus, 1973. "The Allocation of Energy Resources," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 4(3), pages 529-576.
- Mohn, Klaus & Osmundsen, Petter, 2008. "Exploration economics in a regulated petroleum province: The case of the Norwegian Continental Shelf," Energy Economics, Elsevier, vol. 30(2), pages 303-320, March.
- Stern, Jonathan, 2004. "UK gas security: time to get serious," Energy Policy, Elsevier, vol. 32(17), pages 1967-1979, November.
- Chorn, L.G. & Shokhor, S., 2006. "Real options for risk management in petroleum development investments," Energy Economics, Elsevier, vol. 28(4), pages 489-505, July.
- Walls, Margaret A., 1992. "Modeling and forecasting the supply of oil and gas : A survey of existing approaches," Resources and Energy, Elsevier, vol. 14(3), pages 287-309, September.
- Krichene, Noureddine, 2002. "World crude oil and natural gas: a demand and supply model," Energy Economics, Elsevier, vol. 24(6), pages 557-576, November.
- Ciarreta, Aitor & Nasirov, Shahriyar, 2012. "Development trends in the Azerbaijan oil and gas sector: Achievements and challenges," Energy Policy, Elsevier, vol. 40(C), pages 282-292.
When requesting a correction, please mention this item's handle: RePEc:eee:jrpoli:v:37:y:2012:i:3:p:368-374. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Dana Niculescu)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.