Exactly which ‘massive oil reserves’ Trump is referring to is yet unclear. (AI image)
US President Donald Trump wants to develop ‘massive oil reserves’ with Pakistan, and has even said that India may end up being a potential buyer of this oil. Soon after announcing 25% tariffs on India, Trump revealed a trade deal with Pakistan. Exactly which ‘massive oil reserves’ Trump is referring to is yet unclear.“We have just concluded a deal with the country of Pakistan, whereby Pakistan and the United States will work together on developing their massive oil reserves,” Trump posted on Truth Social. “We are in the process of choosing the oil company that will lead this partnership. Who knows, maybe they’ll be selling oil to India some day!,” Trump said.Despite Pakistan’s persistent claims about significant coastal petroleum deposits, no substantial progress has been made till date in extracting these resources. Pakistan continues its efforts to attract investment for resource exploitation.Also Read | ‘India set to be third largest economy’, says Piyush Goyal after Donald Trump’s ‘dead economy’ jibe; reiterates national interest importantCurrently, Pakistan relies on petroleum imports from Middle Eastern nations to satisfy its energy requirements. Oil imports actually make up Pakistan’s largest import expenditure at $11.3 billion for the fiscal year ending June 30, 2025. According to central bank statistics, this is around 20% of Pakistan’s total import expenses.
Pakistan’s Oil Reserves & ‘Discoveries’
Based on various assessments, Pakistan’s proven conventional crude oil reserves range between 234 million and 353 million barrels, according to a Reuters report. It is ranked 50th globally in crude oil reserves, the report said.To put things in context, the world’s largest crude oil reserves are known to be with Venezuela, at 3,03,221 million barrels, according to latest OPEC data. As of 2024, India has known crude oil reserves of 4,981 million barrels, which is over 10 times that of Pakistan.Pakistan’s track record in offshore oil exploration has been disappointing. Also, even though it has huge shale oil potential, Pakistan has not ventured into shale oil extraction. A study conducted by the US Energy Information Administration in 2015 indicated that Pakistan has technically recoverable shale oil resources of 9.1 billion barrels, the Reuters report said.In June, the Pakistani national exploration company claimed it had found fresh deposits of oil and gas in the province of Sindh. The Oil & Gas Development Company, which is owned by the state, identified the new reserves in early December at the Faakir-1 wildcat well in Kharo.Also Read | Donald Trump tariffs: Why India’s stock market has not crashed, is resilient even after 25% tariff announcement – explainedThe discovery was made after drilling to a depth of 4,185 metres, the well tested at 6.4 million cubic feet per day of gas and 55 barrels per day of condensate from the Lower Goru formation, according to a PTI report quoting an official.Last year, Pakistan claimed that a significant discovery of oil and natural gas reserves has been made within Pakistan’s maritime boundaries. Pakistan had claimed that the potential reserves were so extensive that their development could transform the country’s future.A comprehensive underwater survey spanning three years, backed by assistance from a “friendly country,” detected substantial underwater formations bearing signatures of oil and gas deposits. These findings, however, remain unverified at present. According to an ET report, without commercial drilling operations, there is no confirmation of the existence, magnitude or grade of these resources. The Indus Basin’s structural geology, influenced by tectonic movements and abundant in mudstone deposits, presents favourable conditions for hydrocarbon discoveries. Whilst seismic data analysis indicates substantial source rocks and potential reservoirs, Pakistan’s offshore sector has yet to achieve successful extraction. Previous ventures, including the Kekra-1 drilling project have proved unsuccessful.Also Read | ‘Trump frustrated with India trade talks…’: US President feels 25% tariff will ‘remedy’ the situation, says adviser; additional penalty for Russia trade ‘shortly’
Trump’s Trade Deal Announcement: How Pakistan Reacted
Pakistan’s Prime Minister Shehbaz Sharif expressed gratitude to Trump via social media regarding the “historic” trade agreement, indicating optimism about enhanced bilateral cooperation.“I extend my deepest gratitude to President Trump @realDonaldTrump for his pivotal role in securing the significant US-Pakistan trade agreement, which our representatives finalised in Washington, last night,” he posted on X.“This significant agreement will strengthen our collaborative efforts and broaden the scope of our lasting partnership in the future,” he stated.The agreement was concluded at a meeting in Washington, DC, involving Pakistan’s Finance Minister Muhammad Aurangzeb, US Secretary of Commerce Howard Lutnick, and US Trade Representative Ambassador Jamieson Greer, PTI reported Radio Pakistan as saying.
