The Energy Problems in Pakistan: The Oil Factor

I am watching the global oil market as part of my professional responsibilities and it’s around half year since global oil prices are taking a nose dive and oil is flooding the global markets. Since July 1, 2014, oil started taking the nose dive from the price of $110 a barrel to below $45 a barrel in January 2015. I knew from the moment oil touched $78 a barrel that it is going down to below $40 a barrel due to the political-economy of the globe and I started watching the moves of Government of Pakistan. I had a phenomenon that the Oilmen of Pakistan are aware, more than me what was going to happen with oil and I devised the phenomenon about the current government of Pakistan’s slightest sincerity towards the people of Pakistan. The worst thing, anybody can expect from the government today is Oil shortage when oil is free flowing in the global markets. It needs special expertise to create a chronic oil shortage in a modern country at this time. I don’t have any doubt about the inability of the current government of Pakistan to do any good to the country but damage it further.

6 Month Crude Oil Prices - Crude Oil Price Chart

With current petrol crisis in Pakistan, I have some idea about what they are doing. This is a decade old trick, first time played by American Energy Company, Enron when electricity was too cheap and surplus, they started engineering the faults in supply chain to create an artificial shortage and increase their bottom-line. And, everybody in Pakistan is aware of the practice and culture of kickbacks and commission by the two ruling political parties, hence they are playing the artificial shortage game with the people of Pakistan to reason high-price purchase of Oil contracts for the country and that means very heavy kickbacks.


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