ISLAMABAD: The Pakistan Economy Watch (PEW) on Monday said receded oil prices have a devastating effect on most of the oil and gas exporting countries which can transform into a new global crisis.
After hitting the balance sheets of energy exporters the oil prices have started threatening the ranking of oil and gas multinationals which has unnerved investors, said Dr. Murtaza Mughal, President PEW. He said that the energy sector of many oil exporting countries on which they depend is crumbling resulting in cancelled and stalled energy projects as many projects fail to maintain break-even prices.
He said that budget cuts, currency devaluation and bailout packages will not help a lot to recover the limping economies of the countries that are under pressure. Total revenue of many gigantic energy companies has failed to his the mark of total expenditure which can be the beginning of a nightmare, he remarked
Cheaper competing fuels has hit demand growth of unconventional fuels resulting in underutilisation of regasification capacity, nose-diving shipping rates and massive divestment that has emerged as a matter of concern in some important countries. Dr. Murtaza Mughal said that energy exporters and international community must take immediate unpopular measures to save world from another crisis which will be felt severely in Asia, the largest gas market.