Business Ppt Template 022

7/28/2019 Business Ppt Template 022

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IMPACT OF COAL ON ENERGYPRODUCTIONOF PAKISTANMUSRRAT ALLAH BUKSH, SADAF BANO

AND ZARMEENA


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Objective of study: There is serious energy crisis in Pakistan which ismovingtowardscriticalsituationjustbecauseof increaseinprices of energy resources and other renewable powerprojectsdependuponseasonssuchassolar,windetc.Sothe single solution of this problem is to use coal calledBLACK GOLD in energy generation as it is cheapest

sourceandpresentinhugeamountinPakistan.


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Importance of study: By studying the research papers of different researcherswe came to know that they are in favor of using coal inenergygenerationforsolvingenergycrisisproblemaswellasbringingeconomicdevelopment.Wearealsoinfavorof

usingcoalinenergygenerationasitisthecheapestsourceas well as its huge reserves are present in PakistanspeciallyinTharcoalareaofSind.Wewanttoprovethatcoal is the cheapestsource ofenergyproduction,havinglowcostandhighlevelofoutput.Andtoprovethatcountrywill become independent and move on the path of

development. By using coal, the energy production willincreases along lowest cost of production itwill leads toincrease production of industrial and Agricultural sectorbanking sector due to investment as loan is taken byinvestors from banks, this will leads to increase in jobopportunitiessopercapitaincomewillincreasesandGDPincreasesandduetoincreaseinproductionexportswillincreases and imports will decreases, this will leads toimprove balance of payment that is in deficit. Finallydevelopmentinallthesectorstakesplaceanditwillleadstoeconomicgrowthincountry.


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What is energy? Energymeanspowertoworkorsomethingthatbringschangeofanytype.

Itisdifferentsuchasheatenergy,lightenergy,mechanical,

electrical,chemicalandnuclearenergy. Source of energy: Thesourcesofenergyareasfollow:

Conventional sources: Therearemanysourcesofenergysuchasnonrenewableenergysourceslikefossil,oil,naturalgas,petroleumandcoalfuelsareformedbytheactionofheatandpressureofrockondeadplantsandanimal.Anothersourceiswateralso.

Non-conventional sources: ThesesourcesincludeBio-Gas,Solarenergy,Tidalenergy,Windenergy,geothermalenergy,Nuclearenergy,Biomassenergy.


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Energy sources of Pakistan: Coal,Petroleum,Naturalgas,Electricity.Solarenergyandnuclear.

Uses of energy in Pakistan:ThepercentageofenergyusedbysectorsinPakistanisasfollow:

Industrial 33%,

Transportation 18%,

Household 17%,

Electricitygeneration 17%,

Governmentinstitutions 6%,

Agriculture 5%,

Tradinginstitutions 3%,

Others 1%.


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InstitutionTheministryofpetroleumandnaturalresources

worksforprovisionofoil,gas,andotherminerals.

TheMinistryofwaterandpower.

Electricitysectorisunderministeringofwaterandpower.

WAPDA(waterandpowerdevelopmentauthority)Itcameintobeingin1958.Ithastwopartsformedin2007.

1.WAPDAhydro(Waterandhydropowerdevelopment)

2.PEPCO[Pakistanelectricpowercompany]


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Energy supply:Electricity

In2011-installedcapacityofelectricity23GW,including.

Thermal 69percent Hydro 28percent

Nuclear 3percent

Thermalpowerplantis

GUDDU(PEPCOoperatesitis) 1300MW

KAPCO 1600MW

(WAPDAishydroelectricityproductionoperator)


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Companies Electricity generation %

WAPDA 48.7

KESC 8.3 PAEC 3.6

KAPCO 6.2

HUBCO 9.1

Uch 4.5

Rouch 3.2

Liberty 1.4

OtherIPPs 15


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Sources Electricity generation % nuclear 3.6

Gas 27.3

Oil 35.1

Hydel 33.6

Coal 0.1

Imported 0.3


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Demand and Supply of energy: Pakistansenergyconsumptionin2010-11includes

oil38.8milliontones

gas43.2%(includingoil29.0%).The use of gas has increased by 4% during 2010-11 incomparisonwith2005-06.

Theoildemandisdecreasedby3.0%duetoincreaseinuseofcheapersourcesofenergyandhighpricesofoil.

The demand of petroleum products has decreased since2001-02buttherewaspositivechangeof1.1%(aver.oflast10yrs.)occurredbecauseofpositivechangeduring2004-05,2007-08,and2009-10.

Thehigh pricesof oilaredecreasing demand of petroleum

products and increasing demand of gas, electricity andcoalby5.1%,4.8%7.7%peryearonaverage.


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EnergysupplyinPakistanhasincreasedin2011.Theenergysuppliedtopercapitain2011was0.372TOEthathasincreasedattherateof0.16%from0.371TOEin2010.Energysupplyanddemandwassetinrelationto

populationgrowthby2%.Thefinalenergysupplyincludesthecomponentsasfollow:coal,gas,electricity,petroleumandcrudeoilhasincreasedatanaveragerate7.5%,5.7%,3.4%,2.1%,and0.4%respectively.


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Energy crisis in Pakistan: Current energy situation in Pakistan: Fromindependencetill1980sand1990sdemandofenergy was met by using countrys own resources.In2000senergydemandwasincreasedduetoincreaseingrowth.In2011-12theshortageofelectricityandgashasaffected the industrial production specially energyintensiveindustrieslikeiron,steeletc.Theestimatedcostof energy crisis is Rs. 300 billion per year that is 2.5%

(Rs.1100billion)ofGDPin2008-2012.In2015Pakistanenergyrequirementwillcross120MTOE.In2030thisrequirementwillincreaseby7timesofcurrentrequirementandwillreach361MTOE.Pakistanfulfillits

morethan8%energyrequirementsfromimportsof

energyresources.


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What is Coal?Itisformedbyactionofheatandpressureondead

plantsandanimaloveralongperiodoftime.

Coal was first discovered in Pakistan andSouthAsia in1880s.At that time British-owned companieswere usethis.Pakistan utilized this coal from independencewhenSui gas was discovered in 1952 in Baluchistan and oilfieldin1964.

Coalplaysan important role inenergy production.Tharcoalreservesofsindhareabout175billiontons.

From2010itisthemostimportantfossilfuelforelasticitygenerationsorenergyproduction.


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Pakistan Coal Mines and Reserves:InPakistanlargestcoalreservearediscovered.

Area Coal (billion tones)Sind: 184.623

Punjab: 0.235

Balochistan: 0.25

KPk 0.091

AJK 0.009

Total 185.175


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Proposed coal projects: Thar coal project: ItiscalledprojectofNationalsecurity. Estimated cost of this project is $115million. Tharcoal reserves are sufficient for 500 years. 100 millionbarreldieselandgascanbeproducedfromit.Thegoalofthisprojectistogenerate10,000MWtill2020.

Thar coal underground gasification project: Dr Samar Mubarak had invested Rs. 2.5 millionthroughMinistryofPetroleumandNaturalResources.Itscost is Rs. 126.649million but in June 2011 fundswasonly of Rs. 20 million. The object of this project isinstallationofplantondepositsforgasproduction.On4thNovember 2011, 50MW of gasified project wascompleted. Block-v is taken by planning commission ofPakistanfor50MWprojectusing(UCG)


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Data and Variables: Name of variables included:Energy,Gas,Petroleumproducts,CrudeoilandCoal.

Dependant variable:Energyproduction Independent variable:Gas,Crudeoil,petroleumandCoal. Source of data:weareusingsecondarydatatakenfromstatisticalbureauofPakistan(Economicsurveyreport2011-12).

Scale of Measurement: Energy:MillionTOE(Milliontonsofoilequivalents) Coal:Milliontons Gas:Billioncubicfeet(bcf.) Crude oil:Millionbarrels Petroleum:Milliontons(Mln.T) .


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Table 1:isshowingenergysupplyinmillionTOEandcoalinmilliontonsfrom2001-02to2010-11

Years

Energy supply(

Million TOE)

Coal(Million tones)

2001-02 45.07 4.4

2002-03 47.06 4.9

2003-04 50.85 6

2004-05 55.58 7.9

2005-06 58.06 7.7

2006-07 60.62 7.9

2007-08 62.92 10.1

2008-09 62.55 8.4

2009-10 63.09 8.2

2010-11 64.52 7.7


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Estimation and results: Theresultsareasfollow:

Theuseofcoalinenergyproductionisshowingincreaseinenergyproductionatanincreasingrateandlowestcost.Asuseofsmallquantityofcoalisproducinghighlevelofenergy.

Coalisshowingpositiveimpactonenergyproductionandincreasingenergymoreascompare toenergy producedby other sources (gas, crude oil, petroleum). A smallamount of coal is producing larger and larger amount ofenergythatismorethanneedsofcountry.

Thereispositiverelationbetweenenergyproductionandsourcesofenergybutproductionofenergyisonlygreaterwith lowestcostofproduction incaseofusingcoalasa

sourceascomparetoothersourcesofenergy.


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Conclusions and policy Measures/ (Recommendations):

Finallywecametoconclusionthattoremoveenergycrisis from Pakistan and bring it on the path ofdevelopment and self dependency energy production isnecessarywhichispossibleonlybyusing185.175billiontonsofcoalreservesasasourceofenergy.Asitisnotonly thecheapest source butalsoproduceenergymorethanrequirementascomparetoothersourcesofenergy

suchasgas,crudeoil,petroleumproductsetc.ElectricityandoilproducedfromcoalreservesofTharareacanfulfillcountriesrequirementsaswellascanbeuseforexports.


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Thank You

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